1. Marine Services Sustainable Shipping Conference Sustainable Energy in Marine Transportation Zabi Bazari and Gill Reynolds Lloyd ’ s Register EMEA IMarEST Conference, Sustainable Shipping, 1-2 February 2005

2. Marine Services Sustainable Shipping Conference Content Introduction to fuel use and exhaust emissions; Energy sustainability analysis; International initiatives; Technology developments; Market-based mechanisms; Conclusions.

3. Marine Services Sustainable Shipping Conference Marine Transport Energy Use and Exhaust Emissions

4. Marine Services Sustainable Shipping Conference World Oil Demand

5. Marine Services Sustainable Shipping Conference Bunker Demand Year19702002 Total oil demand [MTOE]24133676 International marine bunker [MTOE] 106146 Bunker [% of world oil demand]4.34%3.97%

6. Marine Services Sustainable Shipping Conference Share of Marine in Transportation CO 2

7. Marine Services Sustainable Shipping Conference Summary on Fuel Consumption and Emissions

8. Marine Services Sustainable Shipping Conference Freight Transport Energy Sustainability Analysis

9. Marine Services Sustainable Shipping Conference Sustainable Energy Indices Energy Intensity: Amount of energy needed per unit of transport activity (kJ/t-km); CO 2 Emissions Intensity: Amount of CO 2 generated per unit of transport activity (g/t- km). NOx Emissions Intensity: Amount of NOx generated per unit of transport activity (g/t- km). SOx Emissions Intensity: Amount of SOx generated per unit of transport activity (g/t- km).

10. Marine Services Sustainable Shipping Conference Estimation Method Energy Intensity: Taken from literature; CO 2 Emissions Intensity: Estimated using energy intensity, fuel heating value and fuel carbon content; NOx Emissions Intensity: Estimated using energy intensity, fuel heating value and NOx emission factor. SOx Emissions Intensity: Estimated using energy intensity, fuel heating value and fuel sulphur content.

11. Marine Services Sustainable Shipping Conference Comparisons: Energy Intensity

12. Marine Services Sustainable Shipping Conference Comparisons: CO 2 Intensity

13. Marine Services Sustainable Shipping Conference Comparisons: NOx Intensity

14. Marine Services Sustainable Shipping Conference Comparisons: SOx Intensity

15. Marine Services Sustainable Shipping Conference Energy Intensity versus Ship Size (Tankers)

16. Marine Services Sustainable Shipping Conference Overall Picture Marine freight transportation has: Lowest energy and CO 2 emission intensities; Lowest NOx emissions intensity but a reduced gap with other modes in particular rail; Higher level of SOx emissions than road and rail but still lower than air transport.

17. Marine Services Sustainable Shipping Conference Reasons for Action More stringent emissions control targets for other modes of transport; Issues relating to port air quality and ship operation in environmentally sensitive areas; The relatively high level of NOx emissions factor of marine engines; The high level of sulphur content of marine fuels; The economic factor: Any reduction in CO2 proportionally leads to fuel saving.

18. Marine Services Sustainable Shipping Conference International Initiatives

19. Marine Services Sustainable Shipping Conference Climate Change Convention

20. Marine Services Sustainable Shipping Conference International Maritime Organisation (IMO)

21. Marine Services Sustainable Shipping Conference IMO Activities on GHG Emissions Study of GHG emissions from shipping (report published in 2000); Resolution A.963(23) on “ IMO policies and practices related to reduction of GHG emissions from ships ” (2003): The Working Group is currently exploring technical and operational issues relating to ways of reducing CO 2 emissions.

22. Marine Services Sustainable Shipping Conference European Union (EU) EU is active on all aspects of energy sustainability: Pollutant control; Fuel sulphur control; Emissions trading. For marine transport, the main emphasis is on fuel sulphur for ships operating within the EU waters; Directive 1999/32/EC sets future tough limits: 1.5% fuel sulphur limit in North Sea/English Channel & Baltic, compatible with IMO ’ s SECA (May 2006 for the Baltic); 1.5% fuel sulphur limit for passenger ships on regular services between EU ports (July 2007); 0.2% fuel sulphur limit for inland vessels and ships at berth in EU ports (0.1% from 2010).

23. Marine Services Sustainable Shipping Conference Local Requirements Mainly in USA: The US EPA aims to bring the IMO MARPOL Annex VI NOx emissions limits into force for US flagged ships; In Alaska, exhaust emission opacity limits have been introduced; Ships visiting Californian ports are required to operate on MDO rather than HFO; Designation of selected areas as SECAs is also anticipated. Other local incentive schemes: Swedish environmentally differentiated fairways and port dues; Recent Hamburg’s environmentally differentiated port dues.

24. Marine Services Sustainable Shipping Conference Technology Developments Alternative fuels: Low sulphur fuels; Natural gas; Hydrogen. Alternative Technologies: Natural gas (dual fuel) engines; Fuel cell; Electric ship; Energy Efficiency Energy efficient technologies; Operational controls;

25. Marine Services Sustainable Shipping Conference Low Sulphur Fuel Move to lower sulphur fuel seems to be inevitable (Unless cost effective flue gas desulphurisation systems become available); Issues: Fuel price differentials and economic consequences; Adaptability of engine technologies to low sulphur fuels; Lack of widespread availability of low sulphur bunkers; Ship design and operational complexities associated with the use of multiple fuel storage and distribution systems.

26. Marine Services Sustainable Shipping Conference Natural Gas A clean and low-carbon fuel; Significant worldwide reserves; In transportation, mainly used in light duty road vehicles; Marine application is limited to LNG ships; Favourable prospect: Production of dual fuel diesel engines; Development of fuel cells; Seen as a precursor to future hydrogen economy. Major technical issues: Storage (Main barrier); Safety.

27. Marine Services Sustainable Shipping Conference Hydrogen Fuel for the long term future; Main alternative to currently used fossil fuels; Zero emissions if used with fuel cell; Issues: Availability; Cost; Storage; Infrastructure; Conversion technology. All the above aspects are under intense development.

28. Marine Services Sustainable Shipping Conference Fuel Cell

29. Marine Services Sustainable Shipping Conference Fuel Cell Compared to thermal power plants: Very effective in reducing pollutant; Some energy efficiency gains especially in combined heat and power configuration; Issues: Technical (low power density, high specific weight, high specific volume, low reliability and so on); Needs very clean gaseous fuel (almost sulphur free) Hydrogen is ideal; Natural gas require internal fuel reformer; Other liquid fuels require external reformer including desulphurisation unit. Cost.

30. Marine Services Sustainable Shipping Conference Electric Ship Mainly naval applications and to some extent passenger ships; Significant flexibility in terms of machinery arrangement; Not yet as efficient as conventional mechanical drive ships; Driving force: Specific operational requirements; Advent of podded propulsors; Multi-engine power management systems; Future potential use of fuel cells; Future use of shore power; Future potential use of electrical storage devices; Moves in automotive sector towards hybrid-electric systems.

31. Marine Services Sustainable Shipping Conference Technology Roadmap

32. Marine Services Sustainable Shipping Conference Market-based Mechanisms Emissions Trading; Fairways and port dues; Fuel price.

33. Marine Services Sustainable Shipping Conference Fuel Price It is an effective market mechanism for uptake of new technologies; Has adverse effect on the economy of ship operation; Advantages: Cleaner fuels become more cost-effective; Makes the ETS activities more cost-effective by correspondingly raising CO 2 prices; Cleaner and more efficient new technologies become more cost effective; Improves operational and fleet management practices in a manner that reduces fuel consumption.

34. Marine Services Sustainable Shipping Conference Conclusions On energy sustainability and compared to other modes of freight transport, marine transportation: Is the most sustainable mode of transport from climate change point of view; Has the lowest NOx emissions intensity; Its SOx emissions intensity is higher than road and rail but still lower than air transport.

35. Marine Services Sustainable Shipping Conference Conclusions To improve the marine transport energy sustainability further: Fuel sulphur needs further reduction preferably by setting medium to long term targets; Energy rating standards, for ship design and operation, should be developed and implemented (in-line with IMO ’ s current activities); Market-based mechanisms, including ETS, need to be monitored for future application in marine.

36. Marine Services Sustainable Shipping Conference Conclusions On future fuels and technologies: Natural gas is seen as the precursor to move to hydrogen economy. Storage capacity is the main barrier to its use in ships. The use of hydrogen, as the fuel, and fuel cells as the main power plant will evolve in the longer term as the shift to a low-carbon / hydrogen economy occurs.

37. Marine Services Sustainable Shipping Conference Conclusions On future fuels and technologies: The above moves, plus other developments (e.g. electric storage, shore power, podded drives, etc.), would lead to future stronger moves towards electric ships.

38. Marine Services Sustainable Shipping Conference Thank You