SSS & MoS FOCAL POINTS MEETING LNG AS AN ALTERNATIVE FUEL FOR SHORT SEA SHIPPING Brussels 18 - 19 March 2010 Alfons Guinier European Community Shipowners’ Association – ECSA

AIR EMISSIONS - ECSA

AIR EMISSIONS No complacency - ECSA SO2 CO2 VOC PM10 OPD NOx

ONGOING EFFORTS TO REDUCE EMISSIONS: SOx, NOx, Particles, CO2, etc DIFFERENT INDUSTRY INITIATIVES IMO: MARPOL ANNEX VI, ONGOING DISCUSSIONS ON CO2

ECSA/EMSA INITIAL MEETING ON LNG AS ALTERNATIVE FUEL NOVEMBER 2009 SHORT SEA SECTOR ENGINE MANUFACTURERS CLASSIFICATION SOCIETIES BUNKERING TECHNICAL EXPERTS EU COMMISSION

KEY POINTS FOR DISCUSSION LNG FUELLED SHIPS STATE OF ART ECONOMIC & ENVIRONMENTAL DECISION FACTORS PORT INFRASTRUCTURE & LNG AVAILABILITY TECHNICAL CONSTRAINTS LNG FUEL CHARACTERISTICS SAFE OPERATION INCLUDING BUNKERING

LNG FUELLED SHIPS TWO MAIN TYPES DUAL FUEL ENGINES (LNG/MDO) LEAN BURN GAS ENGINES

Gas engine development since 1984 Wärtsilä Vasa 32 Rolls-Royce B-type Rolls-Royce K-type Dual Fuel gas engines Lean Burn gas engines - Constant speed (generator load) - Variable speed (propeller load)

Exhaust emission - Natural gas vs MDO SO2 Sulphur emission is eliminated Particulate matters is close to zero CO2 is reduced by 26% Due to unburned methane the net reduction of greenhouse gases is somewhat lower NOx is reduced by 80-90% Particulates CO2 NOx Source: Rolls-Royce Marine

Large LNG terminals in Europe

LNG bunkering station at ferry berth Capacity bunkering station: 2x 500m3 LNG LNG transferred by pump Filling time for the large LNG ferries about two hours Refuelled every third night

REACTIONS IN GENERAL VERY POSITIVE APPROACH AND INTEREST A LOT OF ISSUES STILL TO BE FURTHER ADDRESSED

ISSUES FOR FURTHER CONSIDERATION & ACTION LOSS OF ENERGY METHANE SLIP LESSONS FROM TESTS BUNKERING POSSIBILITIES INTERNATIONAL STANDARDS (IMO) RETROFITTING (INCLUDING COST) ECONOMIC VIABILITY (INCLUDING PRICE OF LNG) POSSIBLE INCENTIVES FURTHER CONSTRUCTIVE & PRACTICAL DISCUSSIONS PLANNED

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