Environmental Challenges for the Shipping...

Lloyd’s Register: Environmental Services

Environmental Challenges for the Shipping Industry Katharine Palmer Environmental Manager Lloyd’s Register October 2011


Strategic landscape as it relates to environment

• Increasingly demanding environmental regulations

• Political decisions not always supported by strong technical / scientific evidence

• Continued pressure on fuel price and emissions reduction

• Balancing the sustainability factors • Range of innovative environmental

solutions


• Air emissions

• SOx, NOx, VOC • Energy Management and CO2

• Transfer of invasive species • Ballast water, • Biofouling

• Fuel choice • HFO • MGO • LNG

• Waste /garbage • New build material choices and anti fouling paint /anti corrosion paint • Recycling issues

Technical landscape as it relates to environment


Drivers for change

• Corporate Social Reponsibility • Environmental Concern • Compliance • Cost Efficiency


Challenges Questions:

• What requirements will be placed on new vessels?

• When? • What about existing vessels? • Regional versus IMO ?

What can I do?

• Evaluate your ships – lifecycle costs • Gather data to allow decisions to be

made • Focus on fuel management and plan

to make it ‘state of the art’ • Review management options


2011 2010

SECA North Sea & Baltic Sea S<1.5%

Global cap S<3.5%

IMO Global cap All engines All fuels S<4.5%

IMO

North Sea & Baltic Sea S<1.5% Ban on sale MGO S>0.1%

All engines/All fuels EU ports & inland waterways S <0.1% Ban on sale MGO S>0.1%

All engines All fuels S < 0.1% within 24nm off California

01Jan 2012

2012

01 Jan 2010

2015 2020

Global cap S<0.5%

IMO 01Jan 2020

SECA and ECA S<0.1%

IMO

01Jan 2015 SECA North Sea & Baltic Sea S<1%

IMO 01 July 2010

S = Sulphur content in fuel SECA = Sulphur oxide Emission Control Area ECA = Emission Control Area MGO = Marine Gas Oil MDO =Marine Diesel Oil

ECA US/Canada S<1% within 200 nm off US/Canada coast

IMO 1 August 2012

Current

IMO

Main engine rule: MGO S<1.5% ; MDO S< 0.5% Auxiliary engine rule: MGO or MDO S<0.5% within 24nm off California

01 Jan 2012

Regulation timeline: Sulphur in Marine Fuels

2025

Pending 2018 review

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http://en.wikipedia.org/wiki/Image:Arblogow.gif


Date Ship Built Before 1990 1990 – 1st Jan 2000

2000 – 1st Jan 2011

2011 – 1st Jan 2016

From January 2016

NOx emission limits

No limits apply Tier I globally, with exceptions

Tier I global Tier II global Tier II global

Tier III in NOx ECAs

NOx emission limits In revised Annex VI

EIF 1st July 2010

Tier I 17.0 – 9.8 g/kWh

Tier II 14.4 – 7.7 g/kWh

Tier III 3.4 – 2.0 g/kWh

IMO

Regulation : NOx Emissions


How to respond to the challenges ?

Many different solutions available No single solution is suitable for all ships

Identify technically compatible solutions

1 Fuel cost scenario planning

2 Review commercial implications

3


2009 2012 2014

D-1 or D-2 - for ship >5,000m3 built between 2009 and 2011 - for ship keel laid before 2009 D-2 only - for ship <5,000m3 built between 2009 and 2011

IMO

1J an 2009

… 2016

D-2 only - for all ship built after 2012

IMO 1J an 2012

D-2 only - for all ships

IMO 1J an 2016

D-2 only - for ship between 1,500 and 5,000m3 keel laid before 2009

IMO

1J an 2014

D-1: must comply with ballast water exchange standard D-2: must comply with ballast water treatment standard

Regulation timeline: Ballast Water Convention


Design/Installation Considerations

Items to consider when selecting a ballast water treatment system include: • Ship type

• Ballast capacity • Trading Pattern • Space required (foot print and

volume) • Flexibility of location of system

components • Integration with existing systems • Intrinsically safe / Ex proof • Power balance

• Health and Safety • Effects on tank

structure/coatings • Availability of

consumables, spares and support (servicing)

• Additional crew workload • Crew training • Capital and Operating Cost • System availability –

delivery time


Potential Regulatory Environment for CO2 Emissions • Mandatory Operational and Technical Measures

• Energy Efficiency Design Index (EEDI) • Shipboard Energy Efficiency Management Plan (SEEMP) • Market based measures are still under debate


What is the EEDI?

Hull •Optimised hull form for reduced resistance •Appendages optimisation •Advanced hull coatings •Increased capacity? •Reduced lightweight?

Machinery •More efficient engines (ME/AE) •Use of low-carbon fuels such as LNG and bio-diesel •Optimised auxiliary machinery •Waste heat recovery •Shaft generators and other energy efficient technologies

Propulsion •Propeller optimisation •Variable speed drives •Electric propulsion •Podded propulsion •Boss cap fins


EEDI implementation

Current Regulatory Text: • Phase 0 0% 2013 – 2014 • Phase 1 10% 2015 – 2019 • Phase 2 20% 2020 – 2024 • Phase 3 30% 2025 – 2030

Ships to be regulated in Phase 0 include:

• Bulk carriers; • Tankers; • Gas tankers; • Container ships; • General cargo ships; • Refrigerated cargo ships; • Combination carriers..


Commercial impact of the EEDI

Owners

Operators

Shipyards / designers

Engine / machinery

manufacturers

Energy saving technologies

manuf.

Classification Societies

Flag States / ROs

Who is affected by the EEDI?


SEEMP – SHIP ENERGY EFFICIENCY MANAGEMENT PLAN

SEEMP

Voyage Management

Weather Routing Optimum Trim Speed

Optimization Just in Time Improved Fleet Management


SEEMP – SHIP ENERGY EFFICIENCY MANAGEMENT PLAN

SEEMP

Operating Procedures (Optimal Use)

Optimum Ballast

Optimum Shaft Power

Auto Pilot

Electric Power Supply

Auxiliary Machinery


MBMs – what types?

e.g. STEEM (Ship Traffic, Energy and

Environmental Model)

Emission

s Caps

Allowances and Trade

Fuel Levy

Port or

flag

states

collect

and

control

the CO2

charges

Based on Ship Energy Efficiency

Rewards efficient ships

ETS (Emissions Trading System)

LIS (Levera

ged Incenti

ve Scheme)

Others

GHG Fund

VES (Vessel Efficiency

System)

SECT (Ship

Efficiency Credit System)

Marine MBMs


Wind Bio Mass Solar Power Nuclear

Concept Demonstrator

s

Emerging Technologies • Alternative technologies: fuel cell. • Alternative fuel: biofuels, LNG, nuclear. • Renewable energy: wind, solar.


Sustainability - what is it?

Sustainability refers to way companies integrate

economic, social and environmental concerns in their business operations.

Sustainability relates to the idea whereby a business addresses and balances the needs of stakeholders.

PEOPLE, PLANET & PROFIT


Sustainability Triangle

Planet

3 Pillars of sustainability • Economic • Social • Environmental

Note - Sustainability cannot exist

without balance between all

elements

Too much focus on any area

and model collapses

Planet


Marine Stakeholder


Areas of responsibility - challenge

Refinery

Concept of ‘Industry’

Owner

Yard and ship owner Bank ship owner

Owner Charter

Charter as agent

Concept of ‘Shipping’

Operator – as owner or charter

Crewing Companies


The truly sustainable shipping company... • Is committed to maintaining & enhancing all five stocks of capital • Is committed to operating within environmental limits, and has agreed with stakeholders what the limits are • Has a robust strategy in place to deliver on these commitments • Has integrated proactive sustainability thinking into management decision-making • Is innovative in cutting carbon intensity:

• new propulsion methods, fuels, ship designs • voluntary emissions trading • cargo types, volumes and value

• Has ‘future-proofed’ its business against radical discontinuities

Jonathan Porritt

Sustainable Shipping


Success criteria

• Balance ‘planet, people and

profit’

• Life cycle thinking • Climate adaptation and resource

issues • Safe operation and crew • Feasible technically (accepting

we do not know future developments)

• Cost effective / commercial investment

• Complex • Future proof

Environmental Challenges for the Shipping...

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