2021 GREEN4SEA Virtual Forum: Industry’s green options towards a more sustainable fututre

Sulphur cap marked the beginning of the decade in which industry’s environmental agenda is overwhelmed with more regulations along with the decarbonization challenge. As we are heading towards a greener industry, the challenges around are many; thus, industry stakeholders need to be aware of the available options to comply accordingly.

Nicholas Makar, Senior Vice President, IRI/The Marshall Islands Registry noted that industry’s successes in meeting environmental challenges can be clearly measured by observing the evolution of MARPOL over the years. Nevertheless, with greater awareness and concern developing relative to the industry’s environmental impact and decarbonization goals, maintaining the IMO’s timetable on reducing greenhouse gas emissions from shipping remains a high priority.

Dr. William H. Moore, Global Loss Prevention Director, American Club, provided a quick overview of latest green shipping challenges, i.e. BWM, ship recycling, sulphur cap implementation, LNG, LPG, Ammonia etc. P&I clubs have always been in support of both safety and green technology development initiatives, he said, noting that acutely aware that new technologies also bring new risks. In that regard, marine insurers view these risks through a risk lens taking into consideration their impact.

Sotiris Raptis, Director Maritime Safety & Environment, ECSA, referred to ECSA’s position on European Green Deal and highlighted that a fund should be set up to minimise the administrative burden and re-invest revenues in energy transition of industry. Also a global approach, such as FuelEU Maritime, must be the cornerstone of the EU’s policies since any regional measures would risk undermining the international negotiations at the IMO level, he concluded.

Mark Smith, Loss Prevention Executive, The North of England P&I Association Ltd, noted that the IMO has approved draft regulations aimed at reducing GHG emissions and improving the energy efficiency. There is plenty to consider for shipowners because the new measures look to regulate the design and operational efficiency of relevant vessels. The EEXI technical framework may mean it’s not commercially viable to trade older tonnage beyond 2023. In addition to this, there are operational concerns and contractual considerations for time and voyage charterers.

Konstantinos G. Karavasilis, Senior Loss Prevention Executive, UK P&I Club, talked about the road map to 2050 and IMO’s targeted GHG reduction. We have already started dealing with several GHG reduction, but we have left last the CO2, which seems to be the most difficult to deal with, he noted and provided an overview of the timeline; challenges that ship Owners, Managers and the Industry in general face as well as discussed how EEDI and EEXI will affect Industry’s business and decisions.

To help protect the environment, many organizations are taking measures to lessen the environmental damage of their operations while enhancing their performance. Nowadays that climate change is one of the biggest future threats, it is imperative for all to behave in an environmentally responsible manner.

Martin Hees, International Sales Manager, Aquametro Oil & Marine GmbH, discussed how to tackle the actual and upcoming environmental and efficiency regulations and challenges. All current and upcoming regulations on fuel and energy efficiency require a basic set of basic parameters which need to be measured and monitored, he said and concluded that without proper measurement and control of the basic data there is no way for improvement the vessel and engine performance.

Jean-Philippe Gagnon, Field Applications Scientist, Telops, noted that the IMO now imposes more stringent limits on sulphur oxides emissions. In his presentation, he explained that hyperspectral cameras are capable of quantifying the sulfur content in ship’s fuel oil (% m/m) from remote measurements of the gases in its exhaust plume offering advantages over other sulfur monitoring techniques.

Sarah Zitouni, Regional Sales Manager, Lean Marine, agreed that increased focus and public scrutiny around the climate emergency have escalated the pressure on the shipping industry. With the EEXI introduction by IMO, ship-owners and operators started evaluating their fleet. Their focus now should be on effectively balance compliance with emissions regulations and continuously improved ship efficiency

Tom Evensen, Regional Category Manager, Hull Performance, Jotun, briefly touched on the outcome of MEPC 75, covering EEXI, CII and SEEMP and discussed biofouling implications and challenges and how the industry is currently handling these. Innovative solutions may give the advantage to shipowners and operators to pinpoint the optimum time for a proactive hull inspection and subsequent proactive hull cleaning, he said.

Poor air quality due to international shipping accounts for approximately 400,000 premature deaths per year worldwide, according to scientific studies. Ships generate SOx, NOx, PM and CO2 emissions as a result of the fuel used to power them and their detrimental impact on air quality continues to increase as the sector grows. IMO legislation bringing forward EEXI and CII is just the latest chapter of the compliance book.

Harilaos Psaraftis, Professor, Department of Technology, Management and Economics, Technical University of Denmark (DTU), stressed that already more than two years have passed since the landmark decision of the IMO in April 2018, which entailed ambitious targets to reduce green house gas (GHG) emissions from ships. In this talk, he made an attempt to answer this question: is this process on the right track? On the basis of all available information, our answer to this question is, not yet, he said.

Edmund Hughes, Director,  Green Marine Associates Ltd., provided an overview of the IMO 2020 approaches to compliance and the available guidance to assist operators with the requirements. With regards to safety implications, the following have been identified: stability of blended fuel oil; compatibility, including new tests and metrics appropriate for future fuels; cold flow properties; acid number; 
flash point; ignition quality; and cat fines.

Panos Zachariadis, Technical Director, Atlantic Bulk Carriers, stressed the randomness of CII (being either EEOI or AER). Because of such randomness, the resulting energy rating of ships (A, B, C, etc) cannot be representative of a ship’s real energy efficiency and so no CO2 emission reductions should be expected. In his opinion, the CII regulation is just a huge bureaucratic burden to owners, costly to both owners and charterers, with far reaching ramifications which will upset the shipping market.

Dr. John Kokarakis, Vice President Technology & Business Development Hellenic-BS-ME Zone, Bureau Veritas, argued that MEPC 76 is expected to formalize design and operational measures finalized by the recent Corresponding Group. Design measures are mandated through compliance with EEXI, a metric identical to EEDI Phase 2, applicable to existing ships. EEXI is not expected to impose dramatic changes in shipping resulting in less than 1% CO2 reduction.

Panos Kourkountis, Technical Director, Sea Traders SA, highlighted that the environmental impact of a measure should be the ultimate factor for justifying its implementation and its side effects. It is uncertain whether it will be financially viable for ships to keep pace with the future revisions of the EEXIs constantly applying forthcoming technologies. Definitely, EEXI will reduce the ship lifetime, he mentioned.

From 28 October 2020, BWTS are required to meet IMO BWMC type approval requirements, instead of the revised G8 guidelines, as well as USCG type approval regulations. Until today, USCG has granted 40 Type Approvals in total.

Dr.Efi Tsolaki, Chief Scientific Officer, ERMA FIRST ESK Engineering Solutions S.A., stressed that the main objective of commissioning testing is not to validate the Type Approval but to demonstrate that the principal treatment methods of the system are capable of functioning as installed. It is based on the Guidance for the commissioning testing of BWMS and it will be required by the Flag State of the vessel or ROs.

Dimitris Tsoulos, Regional Sales Manager EMEA,  De Nora Marine Technologies, presented the operational challenges with regards to BWMS performance and suggested ways to overcome these and move forward. In his opinion, contingency planning is essential in order to take into consideration all different fronts, such as technology, system design limitations, training, service and spare parts availability and predictive maintenance.

Panos Smyroglou, Director of Business Development, Ecochlor, discussed about the benefits of a Filterless BWMS as well as the Vessel and Trade Route Options for the Shipowner. Key advantages of a BWMS for operators should be low equipment and installation cost, easy operation for the crew, low maintenance needs and decreased power requirements.

Jad Mouawad, CEO, Mouawad Consulting AS, advised operators to start their BWMS retrofit projects early, in particular 6-9 months in advance. They should boil their options down to BWMS that fit their ship. He also highlighted that ship survey is more important than 3D scanning and recommended to send a marine engineer to do the initial survey. Arrange for local supervision during retrofit is also essential, he concluded.

George Kriezis, Technical Manager, Neptune Lines Shipping and Managing Enterprises S.A., briefly provided an updated with regards to BWM regulatory agenda and argued that crew training is very important for proper operation of BWMS onboard. In that regard, the technical department should be in close cooperation with design office to make corrections and submit to class. Careful selection of the right system should be made with regards to size for the ship type and trade, he noted.

Approximately 4,000 ships are currently fitted with scrubbers; on the occasion of the one year of IMO sulfur cap implementation, the Clean Shipping Alliance highlighted the important role that scrubbers play in supporting industry’s efforts for carbon neutrality as we are moving towards 2030.

Nick Confuorto, President & Chief Operations Officer, CR Ocean Engineering LLC, presented the many benefits of scrubbing systems such as: reduction of SO2 greater than any of the present-day requirements and also greater than can be achieved by using 0.1%S fuel; reduction of particulate; reduction of black carbon and (d) lower CO2 footprint than fuel switching. He also showed various ways that shipowners have been installing their scrubbers.

Donald Gregory, Director,  EGCSA, commented on the ban of open-loop scrubbers that many ports have adopted and said that ban will impact air quality in urban areas increasing NOx, BC & other toxic and carcinogenic emissions from IMO 2020 fuels. Thus, use of IMO 2020 fuels will increase overall maritime transport CO2 emissions. Rotterdam is considered as an example port that has operated with open loop scrubbers on tankers for over 60 years.

Chris McMenemy, CEO, Progreso Group, referred to Scrubber Retrofits & Shipyard Variations, based on his company experience. Through 2018-2020, CleanShip has undertaken over 130 scrubber retrofit projects around the world. Looking back to identify any important retrofit lessons, he highlighted the data surrounding one of the largest hidden retrofit costs with some interesting anecdotes included.

Olli Somerkallio, COO,  Foreship Ltd., shared lessons learned from the installation and retrofits of exhaust gas cleaning and recommendations for owners and operators on installation, regulatory compliance and equipment selection. As explained, his company has completed over 60 scrubber projects, including feasibility studies, concept and basic design, detail engineering and project management – covering all vessel types.

Jeanne M. Grasso, Partner, Blank Rome LLP, reviewed and summarized some potential operational challenges and legal issues/risks resulting from the operation of exhaust gas cleaning systems. The discussion included challenges vessels owners/operators face based on differing regulatory requirements in various jurisdictions, managing issues when they arise, and taking preventive and corrective actions to help avoid PSC delays and enforcement actions.

From January 2021, ships calling at EU ports, must carry an IHM certificate on board. Overall, the new legal requirements on ship recycling have become a pressing issue for all ships, no matter if they are brand new or very old. What is more, according to a recent development, the ship recycling capacity of India is expected to be doubled by 2024.

Henning Gramann, CEO, GSR Services GmbH, stressed that a well developed and maintained IHM is the pre-requisite for safe and sound ship recycling. The position of a ship when or after a recycling decision has been taken dictates the legal framework which needs to be obeyed. Hong Kong Convention provides clear requirements and good guidance for an industry which in many cases has improved significantly in the last decade.

Dr. Konstantinos Galanis, Chairman, International Ship Recycling Association, argued that safe and environmentally sound ship recycling in compliance to the highest standards integrates the maritime sustainability. The prevailing conditions and means create new challenges and opportunities that should be further assessed and improved to ensure that ship’s life is optimized under a holistic approach and implementation.

Anna Kalogianni, Claims Executive, Standard Club, noted that the absence of one international and uniformly applicable convention for the recycling of ships can make this a difficult field to navigate for operators. If shipowners get this wrong practice has shown that there may be financial or reputational damages. Compliance with the applicable regime is therefore important. Shipowners need also to be aware of their obligations towards their P&I club in case the ship is to be recycled.

Environmental, Social, and Governance (ESG) and competitiveness, transparency and sustainability are two sides of the same coin. Whether regarded as new trend or as necessity, organizations that wish to thrive in the global maritime community should consider embedding ESG effectively into their strategy for growth and competitiveness.

Carleen Lyden Walker, Co-Founder/Executive Director, IMO Goodwill Maritime Ambassador North American Marine Environment Protection Association (NAMEPA), provided an overview of the opportunities and tools for industry to meet sustainability goals and expectations. She also offered examples of initiatives that are currently being deployed to move industry towards a sustainable future, highlighting the power of collaboration and partnerships to meet, if not exceed, the demand and expectations for change.

Dr. Kostas G. Gkonis, Secretary General, Intercargo, highlighted that companies across all industries will have to change more in the next 15 years than in the past 100 years and shipping will not be an exception. The. ESG encompasses adaptation to strategy and execution and top of all governance and leadership. He also highlighted that it is time for collaboration. Companies that continue to operate in their usual mode and their own will be left behind; this is a promising era of all times and especially shipping will retain its prominent role in serving humanity’s essential needs, he concluded.

Jan Fransen, Executive Director, Green Award Foundation, mentioned that time is changing very rapidly now and the challenges ahead are many. The UN SDGs can be used as a guidance for the shipping companies to get the right direction towards a more sustainable future. Considering that all businesses depend on finance and competitiveness, sustainability is not an easy task; thus working together is essential. He also highlighted important aspects to consider in order all stakeholders jointly to embrace a new approach towards ESG and sustainability.

Stavros Meidanis, Managing Director & Chief Sustainability Officer, Capital-Executive Ship Management Corp, stressed that a sustainability strategy is not solely defined as a strategy to mitigate risks. A sustainability strategy is aiming to drive transformations and adapt processes and practices to market environments, witnessing profound social and regulatory changes from an ESG perspective. ESG performance is now impacting the decisions of investors in the capital market and the ability of shipping companies to access financing.

Maria Kyratsoudi, Business Development Manager, ABS, mentioned that minimizing environmental risk and associated operating costs, engaging motivated people, gaining access to green financing as well as to new markets and segments and enhancing investment returns by allocating capital to more promising and more sustainable opportunities are some of the ways that a strong ESG proposition can create value.

Many consider LNG as  a bridge fuel and others see it a more lasting solution in the decarbonization mix. LNG may be the best way today to accommodate the zero carbon fuels of tomorrow. Shell LNG Outlook for 2020, presented that the global LNG demand increased by 12.5% to 359 mtons in 2019, an important increase that boosts LNG’s role in the switch towards a lower-carbon energy system.

Steve Esau, General Manager, SEA\LNG, noted that LNG uptake as a marine fuel is accelerating, driven by regulation, economics and availability. Compared with traditional marine fuels, LNG offers immediate emissions benefits and unparalleled local emissions reductions, he highlighted.

Carmelo Cartalemi, Business Development General Manager, WinGD, shared feedback on their engine installation, a second generation engine technology, that slashes methane emissions while providing increased efficiency in gas and diesel mode.

Lampros Nikolopoulos, Projects & Dry Docking Engineer, Euronav Shipmanagement Ltd, provided an overview of the design, maintenance and operational aspects of LNG Fuelled Vessels (Tankers) and discussed key challenges.

Antonis Trakakis, Technical Director, Marine, RINA, assessed that with rapidly expanding bunkering infrastructure and technical maturity, LNG can serve as an immediate start now and as the host of any new fuel, when it will start becoming available in the future, therefore it is the right selection for new ships today.

Panayiotis Mitrou, Global Gas Segment Manager, Lloyd’s Register, discussed LNG as a marine fuel within the context of ‘shipping transition test bed’. Placing on the Eastern Mediterranean canvas the projects that transform the environmental and energy profile of the area, with Poseidon Med II leading the race, he presented the factors that will play a pivotal role to the methane molecule’s longevity.

The environmental performance of LPG as a fuel is close to LNG with some advantages, both of them being fossil fuels. LPG is the best dual fuel option for the significant existing fleet of LPG carriers. Furthermore bunkering is  one of the key benefits of LPG with import/export terminals and LPG carriers providing a wide network of outlets improving the suitability of the LPG as a marine fuel

Nikos Xydas, Technical Director, World LPG Association, suggested that with the increasing availability of renewable LPG, bioLPG, as a drop in fuel, with up to 80% additional carbon emission savings, and even more as blend with other renewable products, offers an excellent pathway to a net zero carbon future.

Kjeld Aabo, Director New Technologies Sales and Promotion Two-stroke Marine, MAN Energy Solutions, said that LPG as a marine fuel was applied to almost 100% of VLGCs ordered in 2020; it has several references within handy-size and mid-size LPG carriers as well, however slightly slower transition compared to VLGCs.

Kristof Coppé, Project Manager, EXMAR, gave an insight in the use of LPG as fuel for the main engine, more specifically for two new 88,000 m3 VLGCs which will be built, owned and operated by EXMAR and chartered to EQUINOR. The decision made so as vessels to have sufficient flexibility to trade in the most economical and environmental friendly way.

Peter Van de Graaf, Account Manager Belgium, Lloyd’s Register Marine & Offshore, presented an overview of the status of Class and Statutory requirements for the use of LPG as fuel in order obtain the appropriate Class notation. Also, it was explained how Class is handling novel projects by risk-based design, named RBD and what is required to go this route.

Although there are many advantages from using ammonia as a marine fuel, there are also many challenges around which need to be controlled by technical and regulatory measures in order ammonia to become a feasible solution for a carbon-free shipping economy.

Trevor Brown, Executive Director, Ammonia Energy Association, mentioned that gigawatt scale ammonia production plants are now being announced weekly because ammonia provides a pathway to market for renewable energy, which was previously constrained within the electricity grid, and for hydrogen, which was previously constrained to local and near-term uses.

Dr. John Kokarakis, Vice President Technology & Business Development Hellenic-BS-ME Zone, Bureau Veritas, stated that ammonia is promulgated as a carbon-free alternative fuel. Burned in ICE, it requires unknown percentage of carbonaceous pilot fuel. Hard to burn, highly toxic and corrosive. There is ample experience on ammonia handling and transportation. Compared to its twin brother the LPG, it has comparable CAPEX but much higher OPEX.

Dr. Michail Cheliotis, Research Associate, Maritime Safety Research Centre, University of Strathclyde, highlighted the benefits of using ammonia as a fuel, such as: existing infrastructure and production developments driven by other industries; easier storage and transportation compared with alternatives; Highest volumetric density of zero carbon fuels; and; very good H2 storage vector.

Jan Flores, Vice President, NETSCo, Inc.,noted that while the technology to use ammonia as fuel is still in development, it is currently a traded commodity with infrastructure is already in place, as well as ammonia storage and transportation regulations. Also, there is a lot of technology already created in the engineering for engine conversions for LNG and LPG, which can be leveraged for ammonia.

Methanol is a strong option in the battle of alternative fuels It is proven as a clean, efficient and safe fuel that offers immediate decarbonization benefits with substantial net GHG reductions, full compliance with IMO2020 and a pathway that leads to net carbon neutrality.

Greg Dolan, CEO, Methanol Institute, provided a presentation entitled “Methanol: A Future Proof Marine Fuel” to illustrate the many benefits that methanol can offer to industry. Methanol is emerging as a leading alternative fuel for shipping. It is produced from a wide range of conventional and renewable feedstocks. As a marine fuel, methanol can be used in both newbuild and existing vessels.

Berit  Hinnemann, Senior Innovation Project Manager, Technical Innovation,  A.P. Møller – Mærsk A/S, presented Maersk’s journey towards decarbonization and the fuels of the future. Maersk has a goal of net carbon neutral operations in 2050 and decarbonization is a strategic imperative. In this respect, Maersk assess many options (biofuels, methanol, alcohol-lignin fuels, ammonia) and it will build the world’s first carbon-neutral liner vessel with start of operations in 2023.

Stamatis Fradelos, Regional Bulk Carriers Segment Director, Maritime – South East Europe, Middle East & Africa, DNV Hellas, explained that according to DNV Maritime Forecast to 2050, ammonia and methanol are likely  the two dominant future fuels for deep sea shipping, and the choice between them depends upon input price.Methanol is a liquid fuel already widely carried as cargo, making it relatively suitable for retrofit since it can be burned in a suitably adapted marine diesel engine.

Garry Noonan, Head of Transition Technologies, Ardmore Shipping Services (Ireland) Limited, supported that the hydrogen generator solution makes the hydrogen generator/fuel cell combination a near-term reality and an attractive choice. In fact, fuel cells already have many advantages over diesel engines, such as fuel efficiency, low maintenance and repair costs, and no other harmful emissions such as particulates, SOX and NOX.

Douglas Raitt, Regional Advisory Services Manager, Lloyd’s Register, mentioned that methanol offers various pathways and can be used immediatly as it does not depend on the other alternative options. Citing his experience with working with The Methanol Institute, he highlighted that there are many beneftis with regards to bunkering procedures; namely, handling menthanol is not much different from handling gas oil, he said.

Hydrogen is building momentum globally as probably the cleanest of all fuel solutions for the future; in that regard several shipping players have recently issued a joint letter to the EU Commission urging to promote the use of green hydrogen by ships as part of its upcoming maritime fuel law.

Madadh MacLaine, Secretary General, Zero Emissions Ship Technology Association, presented briefly the Association which founded in March 2019 and involves members which have project or technology that is Zero GHG Emissions at a ship level with miniml upstream impacts and are committed to achieving zero emissions in commercial shipping. As explaind, the Association supports that green hydrogen is the only future proof fuel and is compliant with all future environmental regulations.

Jogchum Bruinsma, Project Manager Maritime Power Systems, Nedstack, highlighted that the use of hydrogen as a clean, renewable and therefore sustainable fuel would be a major step forward for a more sustainable shipping. When hydrogen is used in fuel cell systems, it creates true zero emission power generation. Hydrogen as a fuel in combination with fuel cells are a feasible alternative for propulsion and power generation.

Joseph Pratt, CEO/CTO, Golden Gate Zero Emissions Marine, explained why hydrogen makes sense. Hydrogen enables zero carbon and zero pollution operation. However, for wide adoption within the maritime industry, widely available hydrogen fueling infrastructure, or awareness of existing hydrogen infrastructure are vital as well as a set of safety codes and standards.

Konstantinos Theofanis Markou, General Manager, ClassNK, noted that currently, manufactures which have business experiences of fuel cells for land use are expanding into maritime section. As explained, ClassNK offers rules for hydrogen fuel cell ships and it will release a revised version of Guidelines for Fuel Cell Systems On Board Ships at 2022.

A 2017 EU-commissioned report predicted up to 10,000 wind propulsion installations within the next decade alone while many are the companies which have already engaged with, tested and installed wind propulsion systems. This is certainly a critical decade for wind propulsion developments as we have entered the path towards decarbonization.

Gavin Allwright, Secretary General, International Windship Association (IWSA), referred to the benefits of wind propulsion as well as the existing projects and collaborations to drive this alternative source of power. As informed, by the end of Q1/Q2 2021, 13 ocean going vessels with wind-assist systems will be installed while many more installations are taking place. In total, more WPT vessels will be in operation than all new alternative fuelled ships combined, excluding tankers & LNG.

Joe Plunkett, Senior Engineer, Anemoi Marine Technologies, presented the role of Rotor Sail technology in decarbonisation. Providng an overview of Rotor Sail technology, he explained how it works and why it’s suitable for commercial shipping while he also referred to regulation and other factors driving uptake of new technologies such as Rotor Sails

Martial Claudepierre, Global Market Leader Sustainable Shipping, Bureau Veritas, presented several BV classed vessels with wind propulsion and explained the available specific class approach which is developed for modern wind propulsion, noting that the design review stage and inspections in service are two important challenges towards. He also talked about additional class notations for wind propulsion systems including running and standing part.

Prof. Dr-Ing Orestis Schinas, Partner, HHX.blue, said that current regulatory requirements on air quality and emissions dictate hybrid propulsion solutions. Diverse propulsion requirements lead in diverse combinations and decisions on fuels and main engines. Wind-assisted technologies are already tested in actual operation and can save >10% of fuel consumption.

Nuclear is an issue of the past as the industry is maturing, arriving to advanced atomic with very promising 4th generation reactors. With the use of advanced atomic, ships will not be releasing any emissions, as it there are no SOx, NOx, CO2 or particulates. In fact, considering the full energy cycle atomic is millions of times more power-dense and cleaner compared to either fossil fuels or popular alternatives in the likes of methanol, ammonia and hydrogen.

Panos Zachariadis, Technical Director, Atlantic Bulk Carriers, presented the case of why Nuclear is necessary for decarbonization. 4th generation nuclear mini reactors, now in porotype stages, need no active cooling (no possibility of meltdown), are small and maintenance free, have reduced radioactive wastes and can use current reactor wastes or nuclear weapons as fuel.

Edmund Hughes, Director,  Green Marine Associates Ltd, discussed why nuclear power is considered as a zero-emission energy source for maritime transport by explaining IMO’s vision for shipping is decarbonisation by the end of this century, key options and issues of energy for shipping, key challenges of the 4th propulsion revolution and the international regulatory framework surrounding nuclear powered merchant ships.

Giulio Gennaro, Technical Director, Core-Power, cited the example of a capesize carrying 180,000 tons of iron ore from Brazil to China on a 60 day round voyage to explain the operational benefits of the ship propulsion revolution. Producing electric power with clean sources, in which Advanced Atomic will play a fundamental role, can drive the way to decarbonization.