1. BUNKERWORLD – MARINE FUEL SUSTAINABILITY FORUM OCTOBER 25, 2007
REDUCING AIR EMISSIONS FROM SHIPS
JOSEPH ANGELO
DEPUTY MANAGING DIRECTOR

2. INTERTANKO INTERNATIONAL ASSOCIATION OF INDEPENDENT TANKER OWNERS
MEMBERSHIP
260+ MEMBERS
2,650+ TANKERS
220+ MILLION DWT
MORE THAN 75% OF INDEPENDENT TANKER FLEET
300+ ASSOCIATE MEMBERS

3. INTERTANKO
MISSION
PROVIDE LEADERSHIP TO THE TANKER INDUSTRY IN SERVING THE WORLD WITH THE SAFE, ENVIRONMENTALLY SOUND AND EFFICIENT SEABORNE TRANSPORTATION OF OIL, GAS AND CHEMICAL PRODUCTS

4. INTERTANKO PRIMARY GOAL
LEAD THE CONTINUOUS IMPROVEMENT OF THE TANKER INDUSTRY’S PERFORMANCE IN STRIVING TO ACHIEVE THE GOALS OF:
ZERO FATALITIES
ZERO POLLUTION
ZERO DETENTIONS

5. AIR EMISSIONS - IMO
SEPT 1997 – IMO ADOPTS ANNEX VI TO MARPOL, REGS FOR THE PREVENTION OF AIR POLLUTION FROM SHIPS
MAY 2005 – ANNEX VI ENTERS INTO FOR INTERNATIONALLY (USA CURRENTLY NOT PARTY)
JULY 2005 – MEPC 53 DECIDES ANNEX VI SHOULD BE REVISED TO REDUCE AIR EMISSIONS FROM SHIPS

6. IMO ANNEX VI REVISION TIMETABLE
AIR EMISSIONS
IMO ANNEX VI REVISION TIMETABLE
MEPC 54 (March 2006) – Proposals for revision. The work is delegated to BLG Sub-Committee
BLG 10 (April 2006) – Initial review of the proposals and documents (over 30 documents)
Two correspondence groups (April – October 2006)
INTERSESSIONAL MEETING OSLO (November 2006)
BLG 11 (April 2007) – consider draft proposals for revised Annex VI, the NOx Code and Guidelines
MEPC 56 (July 2007), BLG 12 (Feb 2008) & MEPC 57 (March 2008) – final rounds for approval

7. AIR EMISSIONS COVERED BY ANNEX VI
Oxides of Nitrogen (NOx) – create Ozone
Sulphur Oxides (SOx) – create acidification
Hydrocarbons (HC) – gas, soot and some particulates
Volatile Organic Compounds (VOC)
Refrigerant Gases
NOT COVERED (CURRENTLY) BY ANNEX VI
Particulate Matter
Carbon Dioxide (CO2)
Carbon Monoxide (CO)

8. PROPOSALS FOR AMENDMENTS
AIR EMISSIONS
PROPOSALS FOR AMENDMENTS
- Lower limits for SOx & NOx emissions
- SECAs with lower S cap (1.0% or 0.5%)
- NOx emission limitation on existing engines
- NECAs – NOx controlled areas
- Restrict Particulate Matters (PM) emissions
- Restrict on VOC emissions from cargo oil tanks
- Restriction on CO2 emissions

9. AIR EMISSIONS – SOX DATE SHIP TYPE WHERE max. % S REG.
All Everywhere IMO
All Baltic Sea IMO & EU
All All EU Ports EU
MGO (DMA and DMX)
MDO (DMB and DMC)
Passenger ships EU EU
All aux. & diesel-electric 24 miles off California shore CARB
main engines on all ships MGO (DMA grade)
MDO (DMB grade)
All North Sea & English Channel EU
All North Sea & English Channel IMO
All All EU ports EU
Inland waterway ships All EU inland waterways EU
All aux. & diesel-electric 24 miles off California shore CARB
main engines on all ships MGO (DMA grade)
Greek ferries Greek ports EU

10. AIR EMISSIONS INTERTANKO EXECUTIVE COMMITTEE GUIDING PRINCIPLES –
ENSURE A SOLID PLATFORM OF REQUIREMENTS
BE REALISTIC AND FEASIBLE
SEEK POSITIVE REDUCTION IN AIR EMISSIONS FROM SHIPS
CONTRIBUTE TO A LONG TERM AND PREDICTABLE REGULATORY REGIME
PREVENT UNILATERAL/REGIONAL REGULATIONS – IMO STANDARDS

11. AIR EMISSIONS
INITIAL PROPOSALS FOCUSED ON AIR EMISSIONS STANDARDS AND ABATEMENT EQUIPMENT
FUEL STANDARD WAS NOT BEING CONSIDERED
MAIN PURPOSE OF INTERTANKO SUBMISSION WAS TO “PRESENT ISSUES THAT MERIT FURTHER DISCUSSION BY IMO WORKING GROUP WHEN CONSIDERING REVSION OF ANNEX VI OF MARPOL”

12. INTERTANKO SUBMISSION
AIR EMISSIONS
INTERTANKO SUBMISSION
DISTILLATE FUELS WITH SULPHUR CAP:
- FROM [2010], MAXIMUM OF 1% SULPHUR
- FOR ENGINES INSTALLED AFTER [2015], MAXIMUM OF 0.5% SULPHUR
GLOBAL SULPHUR EMISSION CONTROL AREA
REVISION OF CHECKING AND MONITORING OF COMPLIANCE

13. IMO WORKING GROUP PROPOSALS – SOX
AIR EMISSIONS
IMO WORKING GROUP PROPOSALS – SOX
A. Status Quo - No change
B. Sulphur Emissions Control Area (SECA):
A global sulphur cap (unchanged or lower value)
SECA sulphur cap lowered in two tiers:
1.0% in [2010]
0.5% in [2015]
C1. Change to distillate fuels (ref. INTERTANKO):
Use of distillate fuels for all ships
A global sulphur cap in two tiers:
1.0% in [2012]
Include in MARPOL Annex VI the specification for the distillate fuel to be used by ships
C2. Global cap – As C1 but allows use of residual fuel + scrubbers

14. AIR EMISSIONS
IMO BULK LIQUID & GASES (BLG) SUBCOMMITTEE MET APRIL TO CONSIDER THE OUTCOME OF ITS NOVEMBER WG MEETING
ADDITIONAL SUBMISSIONS MADE BY THE US, NORWAY, SWEDEN, ICS, OCIMF, BIMCO, FOEI AND OTHERS

15. AIR EMISSIONS USA PROPOSAL
SOx & PM – GLOBALLY CONSIDER INTERTANKO PROPOSAL FOR MDO [BUT WITH 0.5% S CAP]
SOx & PM – EMISSION LIMITS AT [200] NM FROM SHORE STARTING 2011 [0.1% S CAP]
NOx STANDARDS FOR EXISTING (pre-2000) ENGINES - 20% REDUCTION
NOx FOR NEW ENGINES:
Tier II % – 25% as from 2011
Tier III % only in defined areas (NECAs) as from 2016

16. AIR EMISSIONS BIMCO PROPOSAL
RETAIN THE CURRENT ANNEX VI STRUCTURE, BUT
LOWER EMISSION LIMITS GLOBALLY AND IN SECAs
GLOBALLY
- 3% SULPHUR CAP IN 2012
- 1.5% SULPHUR CAP IN 2016
- USE TREATMENT TECHNOLOGIES
IN SECAs SHIPS SHOULD USE MDO ONLY
- 1% SULPHUR CAP IN 2011
- 0.5% (0.1%?) SULPHUR CAP IN 2015
- ALSO USE TREATMENT TECHNOLOGIES

17. AIR EMISSIONS OUTCOME FROM BLG MEETING:
RETAIN 6 OPTIONS, 4 FROM WG MTG PLUS US AND BIMCO OPTIONS; AND
IMO SG WILL PROPOSE STUDY TO DETERMINE THE EFFECTS OF THE OPTIONS

18. AIR EMISSIONS MEPC 56 MET IN JULY 9 – 13 “NOTES” OUTCOME OF BLG 11
NEXT STEPS AT IMO:
IMO SG INITIATES STUDY
BLG WORKING GROUP MEETING IN OCTOBER IN GERMANY
BLG MEETS FEBRUARY 2008
MEPC 57 MEETS MARCH/APRIL 2008

19. TWO BASIC ALTERNATIVES
AIR EMISSIONS
TWO BASIC ALTERNATIVES
“CLEAN” FUELS
- Low sulfur residual fuel oils (LSRFO)
- Distillate fuels (MDO)
And/Or
SHIPBOARD TECHNOLOGY

20. AIR EMISSIONS LSRFO FUELS Increase storage capacity for LSRFO
Segregation of HSFO and LSF/MDO tanks
Requires fuel switching
Additional storage for lower BN number lube/cylinder oil
Manifolds modifications for bunkering & fuel sampling
Requires the use of exhaust gas scrubbers
Availability (?)
Cost (?)

21. AIR EMISSIONS
European refineries have no real incentive to produce LS RMFO unless the premiums are such that its price would resemble distillates
Commerically speaking, refineries would have a clear incentive for further conversion of its entire residual streams to distillate products compared to residue desulphurisation to produce more LS RMFO
Ship owners may just as well resort to burning MDO to meet the 1.5% sulphur cap

22. DISTILLATE FUELS (MDO)
AIR EMISSIONS
DISTILLATE FUELS (MDO)
Applies to ALL existing ships/engines
With no other measure, immediately reduces:
SOx emissions by 80% to 90%
PM emissions by 90%
NOx emissions by 10% to 15%
Reduces fuel consumption by some 4% for ALL Ships
Facilitates further NOx reductions by in-engine modifications for IMO’s Tier II & III
Eliminates the need of retrofitting of additional bunker storage capacity and associated piping
Eliminates current onboard fuel treatment plants - additional cargo volume

23. AIR EMISSIONS OTHER ENVIRONMENTAL BENEFITS OF MDO
SIGNIFICANTLY REDUCES ONBOARD ENGINEROOM GENERATED WASTE
“CLEANER” WASTE, FREE OF HAZARDOUS ELEMENTS FOUND IN RESIDUAL FUELS
NEGATES NEED FOR ABATEMENT TECHNOLOGY AND ASSOCIATED WASTES AND DISPOSAL OF SUCH WASTE
POTENTIAL BUNKER SPILLS SIGNIFICANTLY LESS HARMFUL

24. AIR EMISSIONS SAFETY BENEFITS OF MDO
LESS INCIDENTS WITH ENGINE BREAKDOWNS DUE TO POOR QUALITY FUELS
NO NEED FOR COMPLEX FUEL CHANGE OVER OPERATIONS
NO RISK OF INCOMPATIBILITY OF BLENDED FUELS
SAFER WORKING ENVIRONMENT FOR SHIPS CREW

25. UNRESOLVED ISSUES RELATED TO MDO
AIR EMISSIONS
UNRESOLVED ISSUES RELATED TO MDO
AVAILABILITY
COST
CO2

26. AIR EMISSIONS SHIPBOARD TECHNOLOGIES
Scrubber technologies are not yet proven and have their own environmental as well as economic and availability challenges
“Cold ironing” - with associated problems like lack of international standards for
voltage/frequency of power
shore/ship connection systems and
compatibility with shipboard requirements for power supply for hydraulic power sources (compressors needing up to several MW)

27. AIR EMISSIONS EXHAUST GAS SCRUBBERS Filters for PM
Storage tank for solid waste
Water waste treatment plant

28. AIR EMISSIONS
- 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

29. AIR EMISSIONS SCRUBBERS
EXTREMELY LARGE IN SIZE TAKING CONSIDERABLE SPACE ON SHIP
MORE THAN ONE NEEDED FOR MOST SHIPS, UP TO FOUR FOR LARGER SHIPS
MASSIVE AMOUNTS OF WATER NEEDED ON A CONTINUAL BASIS
NEW WASTE STREAM FROM SHIP THAT MUST BE DISPOSED AT SEA OR ASHORE
ADDITIONAL SHIP OPERATIONAL PROCESSES AND PROCEDURES FOR ALREADY OVERWORKED CREW

30. AIR EMISSIONS SCUBBERS – CO2 EMISSIONS NEWCASTLE UNIVERSITY
- RESIDUES FROM SCRUBBING MIXED WITH SEAWATER RELEASES CO2
- 1 KG OF SULPHUR SCRUBBED PRODUCES KG OF CO2
SWEDISH RESEARCH INSTITUTE
- LESS CO2 RELEASED INTO ATMOSPHERE WHEN OIL IS DESULPHURIZED IN OIL REFINERIES

31. AIR EMISSIONS SCRUBBERS – COST
- AVERAGE COST TO FIT SCRUBBERS – $2 MILLION PER SHIP
- TOTAL NUMBER OF SHIPS FITTED –
ESTIMATE 50,000
- TOTAL COST - $100 BILLION
API STUDY – COST FOR REFINERIES TO PRODUCE MDO FOR ALL SHIPS
$60 - $120 BILLION

32. AIR EMISSIONS SCRUBBER INSTALLATION
4 scrubbers/ship
time to retroift – at least 30 days/ship
100 shipyards (ships over 30,000 dwt)
RETROFIT ( 2 ships/shipyard every day):
for 15,000 ships: 6+ years
for 30,000 ships: 12+ years

33. UNRESOLVED ISSUES RELATED TO SCRUBBERS
AIR EMISSIONS
UNRESOLVED ISSUES RELATED TO SCRUBBERS
AVAILABILITY
COST
CO2

34. FINAL THOUGHTS
FOR THOSE THAT ADVOCATE A CHOICE FOR COMPLIANCE, ARE THEY CERTAIN THEY WILL HAVE A CHOICE??
WILL THE FUEL PRODUCERS ENSURE ADEQUATE SUPPLIES OF MDO WORLDWIDE FOR THOSE SHIPOWNERS THAT DO NOT WISH TO USE SCRUBBERS?? OR
WILL ALL SHIPOWNERS HAVE TO INSTALL AND USE SCRUBBERS IN CASE MDO IS NOT AVAILABLE WORLDWIDE??

35. FINAL THOUGHTS
WHO SHOULD BE RESPONSIBLE FOR VERIFICATION AND COMPLIANCE?
SHIPOWNER for:
Cost and installation of technology
Combustion process
Exhaust gas emission standards
Disposal of by-products OR
FUEL PRODUCER for:
Quality of fuel supplied
AND
ENGINE MANUFACTURERS
Facilitate engine design that copes with a predictable rule development on lowering emissions

36. FINAL THOUGHTS Marine Diesel Oil ADDRESSES
THE ROOT CAUSE OF
AIR POLLUTION FROM SHIPS
RATHER THAN THE EFFECTS OF
CLEANING UP THE AIR POLLUTION
ON THE SHIP
AFTER IT HAS BEEN CREATED

37. THANK
YOU