Emission Limits: Time to Act

Image Credit: DNV GL – Maritime Update Issue 01-15, page 53 (Click to enlarge picture)

 The challenges for the shipping industry are not getting any easier. New emission limits, while not coming unexpectedly, require substantial investments in technology; and time is running out. A look at the available options

The shipping industry has been going through turbulent times. For a sector accustomed to planning decades ahead, the sequence of unexpected major events, from the financial crisis to depressed freight and charter rates, and from dropping fossil fuel prices to new international tensions, has certainly added plenty of headache to investment decisions. Many shipowners delayed investing in new anti-pollution technology hoping for a clearer field of vision, while others took action early to gain competitive advantage. With new sulphur limits now in force for European Emission Control Areas (ECAs), and the North American and US Caribbean Sea ECAs also regulating NOX and PM, those who chose to wait must act now. Further regulations will take effect soon, and additional regional and national regimes are emerging around the globe (refer to info box). Investing now will save shipowners money and protect their reputation. However, the substantial capital requirement, a lack of mature technology and uncertainty regarding compliance documentation add to the complexity of this decision.

The IMO’s new ECA regulations, in effect for Northern Europe and North America since 1 January 2015, were announced as far back as 2008. As the year advances, the majority of shipowners will without doubt take the required steps since full compliance has to be substantiated now. Shipowners and operators  hammering out their ECA strategies have to find answers to a number of difficult questions, and DNV GL is ready to help them devise the right compliance and technology strategy.

More than 40 per cent of the ships trading in the Baltic Sea are general cargo vessels which typically do not cross larger oceans; they either sail within
the Baltic Sea only, or within Northern European waters. Oil and chemical tankers, bulk carriers, and passenger ferries are other major ship types operating in the Baltic Sea. The age of these ships is fairly evenly distributed from new to about 40 years old, which means that old vessels are being replaced at a steady pace. In other words, it takes about ten years to replace 25 per cent of the fleet.

The shipowners’ point of view

The most obvious choice to ensure compliance with ECA regulations is switching to low-sulphur distillate fuel. The investment requirement is moderate, but detailed guidelines for the fuel changeover should be prepared, and the crews must be trained properly to understand the technical implications of the switchover procedure. The following special considerations should be made to avoid engine failure:

■Temperature: As the operating temperatures of the two fuels differ by about 100 degrees, special care must be taken.
■Viscosity/lubricity: Heavy fuel oil (HFO) and marine gas oil (MGO) have very different viscosities, which may cause fuel pump failure.
■Fuel incompatibilities: HFO and MGO are mixed in various ratios during the changeover procedure, which may clog filters and cause engine shutdown.
■Cylinder lubrication – acidity: Decreasing the sulphur content affects fuel acidity so another type of cylinder oil must be used.
■Contamination: Tanks formerly used for HFO need to be cleaned thoroughly before switching to MGO.

The solution is often dedicated fuel tanks and separate tanks for different lubrication oils.

An alternative solution is to use a scrubber while continuing to burn HFO. A scrubber washes the SOX out  of the exhaust gas by spraying either seawater on it or a freshwater solution with chemicals added. Seawater scrubbers are simpler to install since the water is not recirculated but used once in a so-called open-loop system before being treated, neutralized and discharged to the sea. To achieve the right efficiency levels, seawater scrubbers rely on high-capacity pumps, which consume significant amounts of energy.

Scrubber installation

A more sophisticated installation is a closed loop scrubber, which dissolves chemicals in freshwater and recirculates this solution after each use, partially replacing it. The spent part of the solution is purified and released to sea. These scrubbers consume less electrical power but rely on chemicals. All scrubbers produce a hazardous sludge which must be properly disposed of in ports. One scrubber can treat exhaust fumes from several engines; some can switch between closed and open-loop operation, depending on the shipmaster’s preference. In general, scrubbers increase fuel consumption by one or two per cent, thereby raising the overall fuel costs and CO2 emissions. Many ships have been retrofitted with scrubbers to ensure ECA compliance. For example, the US-based cruise ship fleet has adopted scrubbers as its preferred means of complying with ECA regulations. Globally more than 160 ships have installed or ordered scrubbers.

The cleanest option

The third alternative is to fuel the ship with LNG. Natural gas is the cleanest fossil fuel available, and when fuelling a ship with LNG no additional abatement measures are required to meet the ECA SOX requirements. The additional cost of the on-board LNG equipment can be recovered in three to six years, depending on the LNG fuel price and the extent of ECA exposure. An LNG-fuelled ship requires purpose-built or modified engines and special fuel tanks, a vaporizer, and double-insulated piping. Accommodating the LNG fuel tanks can be challenging and will reduce cargo space, but with new prismatic tanks entering the market the negative effects can be minimized.

DNV GL estimates see the fleet of LNG-fuelled ships increasing over the coming decade, forming a diversified fleet of smaller coastal vessels and large
ocean-going ships.

More than 50 LNG-equipped vessels are currently in service (refer to graphic), and more than 75 LNG-fuelled newbuilds have been ordered. New technical solutions are under development, and work on the new International Code of Safety for Ships Using Gases or Other Low Flashpoint Fuels (IMO IGF Code) is practically finalized. The code will create a common platform for LNG-fuelled ships. Vessels currently in service or under construction are covered by the IMO interim guidelines for LNG as a ship fuel (MSC-285(86)) and related class rules, which together form the basis for flag administrations to issue the required SOLAS certificates.

LNG fuel practically eliminates SOX and PM emissions and reduces NOX emissions by 40 to 90 per cent depending on engine type. Release of unburnt
natural gas has been an issue (“methane slip”) but new engines have more or less solved this problem, giving LNG-fuelled engines a clear greenhouse gas (GHG) advantage over conventionally fuelled engines.

What is hampering the widespread adoption of LNG is the limited network of LNG bunkering stations, but many potential suppliers are seriously considering entering this market. Along with new initiatives to develop long-range LNG-fuelled ships, this may be the game changer needed to boost LNG-fuelled shipping globally. The ISO is developing an LNG bunkering guideline to support the development of local LNG infrastructure. Moreover, DNV GL released a Recommended Practice (RP) for LNG bunkering in 2014 to fill the regulatory gap between legislation/standards and local LNG bunkering procedures. In addition, DNV GL’s LNG Ready service assesses the additional components needed to use LNG fuel, the associated costs as well as ship safety, stability and strength issues. DNV GL also offers evaluation of LNG bunkering facilities for ports and terminals in both the planning and execution stages. Key elements include safety, service strategy, stakeholders, capacities and feasibility.

The ports’ point of view

Many ports and terminals are defining strategies for implementing LNG bunkering services, and there are clear indications of the development spreading beyond Norway and Sweden. What is needed now are bunkering facilities accessible to any LNG-fuelled ship, and more LNG bunkering locations, especially around the ECAs. Predictable LNG fuel end-user prices will also help boost a development bringing the LNG industry close to the maritime industry in new ways. Having served both industries for decades, DNV GL is in an excellent position to help find smart solutions to advance LNG as a ship fuel.

For ports, DNV GL has published a five-step methodology for LNG fuel logistics assessments:

1. Define future LNG bunker demand for a given port over typically 10 to 20 years, broken down by the port’s main ship categories.

2. Define alternative elements in various relevant LNG supply chains.

3. Estimate cost-efficiency of alternative LNG main supply concepts.

4. Perform a detailed analysis of an LNG main supply and distribution concept, covering incoming and port logistics, bunkering operations, port investments and utilization.

5. Create and recommend a solution, accounting for annual volumes and fluctuations

Beyond this, ports should develop their safety regimes for LNG bunkering, bunkering practice, a scheme for licencing LNG providers, and port traffic safety assessments with present LNG-fuelled traffic.

DNV GL has been working on these topics on a global scale for over ten
years and performed financial analyses for LNG providers. The conclusion is that LNG bunkering can be a safe, lucrative business for providers, especially around ECAs which, by coincidence, have relatively low LNG feedstock prices.

DNV GL encourages major ports around the ECA regions to assess their
options regarding LNG fuel. A number of recent initiatives and new construction projects seem to indicate that the development of an LNG infrastructure is picking up speed. While LNG fuel offers great opportunities to shipping, many owners prefer scrubbers or low-sulphur fuels. New and even more cost-effective solutions will emerge and there are some financial support programmes available.

DNV GL looks forward to seeing more clean ships plying the seas these coming years!

Written by Henning Mohn

Principal Advisor, Maritime Advisory, DNV GL – Maritime

Henning Mohn is a Principal Advisor at DNV GL HQ outside Oslo, until recently he was heading up DNV GL’s Shipping Advisory department in Singapore.  Over the past seven years he has been assessing the implications of new maritime emission regulations along with  the use of LNG as fuel. He has ample practical experience from DNV/DNV GL and previous employers covering both new-build and retrofit installations, installation management, commissioning, training, sales, service and support.Henning holds MSc degrees from University of Washington (1995), and from The Norwegian Institute of Technology (1993).During the years Henning has also given 25+ external talks related to ECA challenges all over the world. 

E-Mail: [email protected]

Above article has been initially published at DNV GL Magazine ” Maritime Impact” Issue 01-15 and  is reproduced here with author’s kind permission

In the start, I was frank with you propecia before and after has changed my existence. It has become much more fun, and now I have to run. Just as it is incredible to sit.