1. METHANOL AS A MARINE FUEL a low carbon/low emission alternative? A reserachers perspective Professor Karin Andersson Shipping and Marine Technology

2. Emission regulations today Sulphur Nitrogen oxides ECA/SECAs (Emission control areas). Sulphur (0.1%) and NO x Tier III.. North/Baltic Sea (S) and North America (S, N) IMO - global reduction of sulphur (0.5%) coming (2020?) Local regulations in shipping lanes and ports – California 0,1% S since 2014 – China to implement first S emission control measures in Yangtze River Delta ECA from 1 April, 2016 – 0,5 % Greenhouse gases, energy efficiency not enough

3. The shipping sector – “treated as a nation” – not included in UNFCCC. Handled by the IMO (International Maritime Organisation) - shipping industry “will make its fair and proportionate contribution”. Two instruments are established: EEDI (Energy Efficiency Design Index) – compulsory for new-builds SEEMP (Ship Energy Efficiency Management Plan) – compulsory to have document on board But still: all IPCC scenarios but one project emissions in 2050 to be higher than in 2012 improvements in efficiency are important but could not yield a downward trend. …… Shipping and Greenhouse gases Total annual fuel consumption: - internationally 300 million tonnes, - in North Sea/Baltic Sea ECA 20 - 25 million tonnes Smith, T et al, REDUCTION OF GHG EMISSIONS FROM SHIPS. Third IMO GHG study 2014.

4. What is drivning fuel change? Drivers: Regulations Cost Environmental profile of company Long term availability Infrastructure …. Response to (S)ECA from ship- owners: Fuel change – – Low sulfur MDO/MGO – but also low sulfur “Hybrid fuels” – LNG – Methanol –.. Scrubbers for sulfur SCR for NOx

5. Many criteria to meet. How can it be evaluated? Fuel selection decision criteria

6. Multi-criteria decision

7. Technology choices in the pathway to marine non-fossil fuel Dual fuel engines Allow use of MGO/biodiesel Differs in infrastructure, fuel handling/combustion but also total energy input and emissions along the fuel chain……..

8. Impact of fuels from well to propeller based on data from Brynolf 2014 Renewable “Diesel” fuels

9. METHANOL AS A MARINE FUEL Fulfills SECA regulation Can be used with high efficiency in marine diesel engines after minor modifications using a small amount of pilot fuel (Dual fuel) Low Tier II NO x emissions, can be Tier III, low particle emissions Liquid at ambient temperature – easy distribution and use Long experience in handling Available on chemicals market – today in surplus … Price has to be – Competetive with MGO for SECA if fossil is selected – Competetive with LBG and biodiesel for non fossil fuel Methanol is a good fuel alternative to fulfill the 2 0 C goal for climate. Provides attractive pathway to carbon neutral fuel if produced with good energy efficiency as biomethanol or electrofuel

10. Applied R&D projects on methanol as marine fuel. Industry consortia Effship (Efficient Shipping with Low Emissions) 2009-2013 – Evaluation of alternative fuels and lab tests. Conclusion – Methanol best in terms of availability in existing infrastructure, price, simple engine and ship technology and established applications on land. CleanShip (Clean Baltic Sea Shipping) 2010-2013 – Methanol interesting alternative fuel in the Baltic Sea. Sub-project testing fuel cell auxiliary engine with methanol. SPIRETH (Alcohol Spirits and Ethers as Marine Fuel) 2011-2014 – Tests on auxiliary engine on board. Conclusion – it is feasible to convert ships to methanol or DME PILOT Methanol 2014 -2015 – Conversion of RoPax ferry engine. Full scale test ongoing. MethaShip 2015-2017 – Assessment of design of two ships, RoPax and cruise. Conversion of pilot boat 2016 – Swedish maritime administration.

11. Conclusion: For fossil free/low carbon marine fuel The present tools (EEDI and MRV) will not lead to any significant decrease of GHG emissions from shipping The present European strategy for marine fuels is not enough to make shipping fulfil the goals in the EU White paper. The availability of biomass for fuel production is limited, and fuels based on renewable energy and CO 2, e. g. as “electro-fuel” is of interest There is a need for support for test platforms and pilot projects to change technical systems and convert to fuels not earlier used There is an need for development of the market and infrastructure for non-fossil marine fuel, not only for LNG The fossil free alternative fuel that will be the “fuel of the future” has to have a potential to be produced at a competitive cost among the non fossil alternatives. Renewable production cost is today typically 2-4 times higher than for fossil Development of cost and energy efficient fuel production is needed. Also the upstream cost, emissions and energy input in the fuel have to be included. A large scale change to non fossil fuels is not likely to occur without regulations and long term policy from government and policy makers

12. Need for further research and development Identify non-fossil sources of carbon for large scale of production. Emphasis on energy efficiency, availability and low emissions upstream Multi criteria analysis to support policy making Systems evaluation and well to propeller (LCA) studies of new fuel pathways Scale up of relevant non-fossil processes – bridge the “death valley” Pilot plants for production in cooperation with other plants (chemicals, energy, waste…..)

13. Estimates of bio/renewable fuel production cost Taljegård et al, MeOH Electrofuel 126 €/MWh Perez et al MeOH CO2 based process 130 €/MWh Hannula (2015) MeOH in heat coproduction from waste CO2 and electricity 75-143 €/MWh Range, three studies MeOH from CO 2 Diagram based on Festel et al 2013 Nov 2015 MGO price NG based MeOH price nov 2015 Feb 2016 MGO price NG based MeOH price jan 2016

14. Thank you for your attention