1. The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from ships by Erik.Ranheim@INTERTANKO.com Manager Research and Projects for International Ship-Owners Alliance Of Canada Vancouver 27 September 2007 ‘ Erik.Ranheim@INTERTANKO.com

2. Annex VI – Emission to air from ships Annex VI on air emission from ships enforced as from mid 2005 but the world already demands stricter requirements

3. Shipping needs INTERTANKO seeks Positive reduction of harmful emission A feasible, realistic and sustainable solution Long-term, predictable and solid IMO standards No unilateral nor regional regulations

4. World society demand cleaner ships The consequences of burning the bottom of the barrel: SO 2 NOx VOC Heavy metals Soot

5. Effects of emission covered by Annex VI Sulphur - Acid rain – –Affects ecosystems Nitrogen- Eutrophication: – –Loss of biodiversity VOCs - Ozone – –Damages plants and buildings/materials PM & Ozone, NOx and VOCs – –Health problems; respiratory effects, cardiovascular effects premature death

6. SOX - situation DATE SHIP TYPEWHERE max. % S REG. 19.05.2005All Everywhere 4.5 IMO 19.05.2006All Baltic Sea 1.5 IMO & EU 11.08.2006All All EU Ports EU MGO (DMA + DMX) 0.2 MDO (DMB +DMC) 1.5 11.08.2006 Passenger EU 1.5 EU 1.01.2007 All * 24 miles off California shore CARB MGO (DMA grade) -- MDO (DMB grade) 0.5 11.08.2007All N Sea and English Ch. 1.5 EU 22.11.2007All No Sea and English Ch. 1.5 IMO 1.01.2010All All EU ports 0.1 EU 1.01.2010 Inland All EU inland waterways 0.1 EU 1.01.2010 All* 24 miles off California CARB MGO (DMA grade) 0.1 1.01.2012 16 Greek Greek ports 0.1 EU ferries * All auxiliary & diesel-electric main engines on all ships

7. Reducing harmful emissions from ships Onboard abatement technology –Still undergoing testing SECAs/NECAs –Air pollution recognises no borders Type and quality of fuel –The KEY to ultimate control of air emission

8. INTERTANKO Study No ships =>400 GT:58,859 HFO consumption: 350 m ts MDO consumption: 60 m ts CO 2 emission w. HFO: 1,246 m ts SOx emission: 20.1 m ts

9. The INTERTANKO solution All ships to burn only distillate fuels, with a global sulphur content cap: o oTier I - a maximum sulphur content of 1.0%, and o oTier 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

10. Switching to distillates for ALL ships Reduced emission: o oSO 2, - 60-80%, o oPM, - 80-90%, o oNOx, - 15% o o……………… Improved safety o oFewer engine problems o oNo switching of fuel to meet SECA restrictions Distillate spills far, far, less serious than HFO spills Higher bunker price - but also reduced costs: o oNo need for extra tanks, piping, abatement equipment, etc o oLess maintenance, off-hire i.e. lower operation costs o oReduced bunker consumption o oLess engine room waste and (no scrubber waste)

11. The alternative to distillates - For a main engine of 20 MW, seawater up to 22,000 t/day needs to be processed (45 t/hr/MW) (supplemented with some 6,500 t/day to lower pH) - Up to 100 kg/day of hazardous sludge (5kg/day/MW) * data supplied by Krystallon

12. Investing in cleaner air ~$ 67 bn investments at ~ 100 refineries to provide the ultimate solution? or ~ $200 bn investments onboard some ~ 50,000 ships to provide a piecemeal solution?

13. World CO 2 emission, energy use and population - indices Source: CO 2 emission: US Energy Information Administration Energy use: BP Review Population: UN CO 2 emission increase stronger than energy and population increase due to relatively stronger increase in coal consumption Index 4.5 bn 6.6 mn 18.3 bn 6.5 bn 10.6 mn 27.3 bn +42% +48% +40%

14. World CO 2 emission

15. CO2 effect of scrubbers The major ion responsible for the alkalinity is the bicarbonate ion. The amount of bicarbonate and other weak bases in seawater buffers the system, thus keeping the pH within a narrow range. Standard seawater has a bicarbonate concentration of 140 mg L -1. Dissolved CO 2 and carbonates belong to the buffer system and are all related by the following four equations: Addition of sulphuric acid will shift the chemical equations 1-4 to the left and thereby increasing the partial pressure CO 2 in the water. The solubility of CO 2 is limited and depends on salinity and temperature. To keep the pH stable, CO 2 will be released to the atmosphere. Each molecule of sulphuric acid will be buffered by the release of two molecules of CO 2. Environmental Impact Of Seawater Scrubbing To Reduce Atmospheric Ship Emissions Brigitte Behrends, School of Marine Science and Technology, University of Newcastle, Newcastle upon Tyne, NE1 7RU, UK Marc Hufnagl, Forschungszentrum Terramare, Schleusenstr. 1, D-26382 Wilhelmshaven, Germany

16. Switching to distillates CO 2 balance MDO replacing HFO MDO as fuel: 32 m ts Add. emission from Scrubbers – buffering: 27 m ts refineries: 47m ts Plus unquantifiable amounts of CO 2 : - Running scrubbers - Handling of waste from scrubbers - Handling sludge - Less engine maintenance - Less engine spare part placement - Less heating Debit Credit Extra CO 2 when switching: 47m ts Saving CO 2 when switching: +60 m ts

17. World CO 2 emission, energy use and population m tonnes bn persons Source: CO 2 emission: US Energy Information Administration Energy use: BP Review Population: UN

18. Bunker price development 2000 - 2007 Fujairah

19. Conclusion The world demands clean shipping Proactive and co-operative solutions are needed