1. MARITIME AIR EMISSIONS Lloyd’s List events 11 December Distillates THE Solution THE holistic solution for the revision of MARPOL Annex VI
Peter M Swift

2. Atmospheric Pollution from Ships
THE PROBLEM (S) ?
Societal concerns about harmful emissions (SOx, NOx, PM pollutants)
Little evidence of action by industry over past decade
Different / conflicting local and regional drivers for change
No clear consensus on what the best way forward is
– other than revise Annex VI and hope that this is adequate enough to stave off unilateral actions

3. Atmospheric Pollution from Ships
CHOICES TO BE MADE !
Solution(s)
HFO with abatement technologies
Cleaner fuels – LSFO or Distillate or
Adopt trading systems ?
Application(s)
Globally
Locally/regionally

4. HFO with abatement technologies
Seawater scrubbers
Freshwater scrubbers
Trials underway
Application to existing ships complex
Other outstanding issues include:
- availability
- costs
- handling of waste streams and products (including acceptability in restricted waters & ports, human health, etc.)
- compatibility with catalytic reducers
A further burden for the crew !

5. SECAs, Mini-SECAs, NECAs, Regional Zones ?
Potential for complications and confusion
Real potential for different:
Regional requirements ?
Implementation dates ?
Multi-fuels / Sulphur levels
(LSFO, Distillate, Gas Oil) ?
+ complex monitoring/verification ?
IMO: Nov 2007
EU: Aug 2007
May 2006
A burden for the operator
A further burden for the crew !
Sulphur Emission Control Areas, the Baltic and the North Sea

6. Emissions Trading – an option for SOx, NOx, PM emissions ?
Issues:
- where, with whom ?
- all or some emissions ?
- measurement, monitoring & verification
A burden for the operator
A further burden for the crew !

7. The INTERTANKO proposal
All ships to burn only distillate fuels, with a global sulphur content cap:
Tier I - a maximum sulphur content of 1.0%, and
Tier II - for new engines - a maximum [0.5%] sulphur content
i.e. one Global Sulphur Emission Control Area
One Single Fuel specification included in Annex VI
Simplified checking and monitoring provisions

8. Distillates – The Benefits
Applies to existing ships/engines, as well as new
With no other measure, immediately reduces:
- SOx emissions by 80 to 90 %
- PM emissions by 90 %
- NOx emissions by 10 to 15 %
Facilitates further NOx reductions by in-engine modifications (for IMO’s Tier II & III)
Facilitates further improvements in energy efficiency (and GHG reductions)
Improves engine reliability
Reduces onboard fuel generated waste
Cleaner, Simpler and more Efficient ships

9. Distillates – The Benefits
Reduces onboard plant and maintenance
Provides safer working environment for ships’ staff and shore side workers
Avoids carriage of multi-fuels and fuel blending/switching problems
Reduces control and monitoring requirements
Lessens harmful impact of bunker spills
Lowers burden for crew
Cleaner, Simpler and more Efficient ships

10. The CO2 Equation CARBON NEGATIVE
SOx deposits in Ocean due to Buffering effects
Energy required to run scrubbers
Sulphur deposits to Ocean in scrubber waste water due to Buffering
Energy required to produce LSFO/Distillates
CARBON POSITIVE
Burning Distillate vs HFO
Low sulphur – little or no buffering
Higher calorific value
No pre-treatment required for fuels
No post-treatment required of fuel wastes
+ More efficient engines, better performance

11. The Distillate Solution
The distillate solution addresses the root cause of air pollution from ships.
Cleaner fuel for cleaner air !

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THANK YOU
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13. The Distillate Proposal
Accepted by most as being THE ideal solution, but
Issues:
Availability of MDO:
2012, 2015, 2020, or later still ?
(But will HFO be available in 2020?)
Price:
Oil company investment for distillate globally US$126 bn.
- future fuel price for distillate 1/3 rd more than HFO ? or
Investment in scrubbers: 60,000 ships x (say) US$3m per ship = US$180 bn.
Low Sulphur Fuel Oil globally at the same price as distillate
Holistic approach:
At least carbon neutral, probably carbon positive, i.e. net beneficial effect
Leave open options for other solutions ?
But will the shipowner have ANY option ?