1. Air Emissions Regulations Update Tripartite meeting 15/16 September 2006; Seoul dragos.rauta@intertanko.com

2. IMO DEVELOPMETNS Annex VI entered into effect in 2005Annex VI entered into effect in 2005 US possible ratification of Annex VIUS possible ratification of Annex VI Baltic Sea - SECA from May 2006Baltic Sea - SECA from May 2006 North Sea - SECA in November 2007North Sea - SECA in November 2007 Proposals for significant amendments to Annex VI discussed at the IMOProposals for significant amendments to Annex VI discussed at the IMO

3. Proposals for significant amendments to Annex VI Lower limits for SOx and NOx emissions Lower limits for SOx and NOx emissions New SECAs New SECAs NOx emission limitation on existing engines NOx emission limitation on existing engines NECAs – NOx controlled areas NECAs – NOx controlled areas Restriction on CO2 emissions Restriction on CO2 emissions Restriction on Particulate Matters (PM) emissions Restriction on Particulate Matters (PM) emissions Restriction on VOC emissions from cargo oil tanks Restriction on VOC emissions from cargo oil tanks

4. REGIONAL DEVELOPMENTS Europe Sulphur Directive adopted in 1999 with significant amendments entered into force in August 2006. EU Directive governs inter alia emissions in port.Europe Sulphur Directive adopted in 1999 with significant amendments entered into force in August 2006. EU Directive governs inter alia emissions in port. California (CARB) is establishing new regulations to take effect in 2007California (CARB) is establishing new regulations to take effect in 2007 Various ports (e.g. Rotterdam) are facing new local regulations on Ship Emissions, which are inhibiting future expansion/developmentVarious ports (e.g. Rotterdam) are facing new local regulations on Ship Emissions, which are inhibiting future expansion/development

5. ALTERNATIVE SOLUTIONS Clean fuels and/or alternative solutions such as:Clean fuels and/or alternative solutions such as: Exhaust gas scrubbers - Scrubber technologies are not yet proven and have their own environmental as well as economic and availability challengesExhaust gas scrubbers - Scrubber technologies are not yet proven and have their own environmental as well as economic and availability challenges SCRs – technologies yet to be proven as reliableSCRs – technologies yet to be proven as reliable Cold ironing - with associated problems including the lack of an international standards for voltage/frequency of power, of shore/ship connection systems and compatibility with shipboard requirements for power supply for hydraulic power sources (compressors needing up to several MW of power)Cold ironing - with associated problems including the lack of an international standards for voltage/frequency of power, of shore/ship connection systems and compatibility with shipboard requirements for power supply for hydraulic power sources (compressors needing up to several MW of power) Etc.Etc.

6. DISCUSSIONS Under debate is: To identify areas that would be impacted by these regulationsTo identify areas that would be impacted by these regulations Whether Tripartite could address design and equipment/installation solutions to facilitate compliance with these new sets of regulationsWhether Tripartite could address design and equipment/installation solutions to facilitate compliance with these new sets of regulations Whether the Industry should develop a common strategyWhether the Industry should develop a common strategy

7. AREAS OF CONCERN Fuel oil storage & associated piping:Fuel oil storage & associated piping: –Increase storage capacity for LSF –Complete segregation of HSFO and LSF/MDO tanks –Additional 3rd storage tank for 0.1% S fuel –Additional storage for lower BN number lube/cylinder oil –Manifolds modifications for bunkering & fuel sampling Scrubbers:Scrubbers: –Space for installation (big space required in the ships funnel) (calculations shown need up to or over 2,000 cub.m/h of water) –Pumps (big capacity) + pipes –Storage tank for solid waste –Water waste treatment plant (hydrocyclons, etc.)

8. AREAS OF CONCERN SCRs:SCRs: –Space + pipes (one SCR for each engine) – catalyst (ammonia!!) storage –changes air intake to the ER and accommodation/ammonia slip) –Pipe/pump bearing of stainless steel (no copper!), etc. In engine solution (e.g. HAM – water treatment plant and storage – usage of roughly same amount of water as fuel)In engine solution (e.g. HAM – water treatment plant and storage – usage of roughly same amount of water as fuel) VOC:VOC: –New installation/equipment (e.g. KVOC + VOCON) –COT designed for higher pressure (e.g. > 2000 mmH2O on p/v valves)

9. AREAS OF CONCERN PM:PM: –filters on the exhaust pipe after the scrubber –Non-corrosive material –Class rule? –Etc. CO2 control:CO2 control: –Propeller design –Hull roughness –Windage coefficients –Other solutions to reduce fuel consumption/hp

10. CONCLUSION TO BE FORMULATED AFTER TRIPARTITE DISCUSSIONS