SECA 1st of January 2015

Grenaa-Varberg The ”local route” Heading comes here Grenaa-Varberg The ”local route”

Exhausts from shipping

IMO MARPOL and Annex IV 2005 2008 2010 2015 2020 or 2025* IMO MARPOL Annex VI comes to force, SECA Areas are defined. Annex VI is revised with a significant and progressive Reduction of sulphur limits both globally and within SECA’s Annex VI comes into force < 1% Sulphur in SECA’s EU also sets new sulphur limits in EU ports New limitations for Sulphur < 0.1 % In SECA Zones New limitations for Sulphur globally < 0.5% 2008 2010 2015 2020 or 2025*

SECA and ECA a global matter NEW SLIDE

Summary of alternatives for Stena Line What Compliance Cost increase Ship application Challenges Switch over to Marine Gas Oil (MGO) SOx NOx? PM? Yes (bunker) Can and will be done day 1 Uncertain supply => future price levels? Install exhaust gas cleaning equipment Scrubbers (investment) Conversions only possible on part of fleet Maritime application still under development Switch over to new types of fuel LNG NOx PM Primairly new builds, but conversions may be possible Supply & distribution ashore Methanol (investment and bunker ?) Both new builds and conversions Stena project is running.

Latest development Stena Scanrail: Test with methanol in auxilary engine stopped Questionmark on DME technique. Stena Germanica: Methanol as fuel based on dual fuel direct injection (10% MGO). Planned start is 1st qtr 2015 LNG Most suitable for newbuildings. Stena follows the development. Scrubbers: Does not solve the issues arround particals and Nox. At the moment no possibilty to collect waste water (diluted sulphur acid) from scrubbers in ports facility.

Stena Lines environmental efforts ISO 14001 Certified Energy Saving Programme Reduced CO2 and NOx emissions Shore connections in ports Reduced emission to water Eco-driving Sun films on cabin windows

How do we get the SECA effect to the cargo ?

Spread included in BAF model Price increase per lm related to spread How will we apply this into a new BAF model? 2004 2010 2015 Introduction of BAF Introduction of LSS Spread included in BAF model 1,5% IF380 1,0% LS380 0,1% MGO 2015 spread BAF per lm Stena Line model + Fixed LSS per lm Price increase per lm related to spread + Current BAF per lm Additional BAF per lm New BAF per lm

Historic development of 1,0% LSFO last 5y Avererage last 12m: 612

Historic development of 0,1% MGO last 5y Average last 12m: 915

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