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Wartsila, Clean Marine Energy offer ship owners "scrubber finance"

Wärtsilä and Clean Marine Energy announced the landmark signing of the shipping industry’s first collaboration agreement that will provide a convenient funding solution to drive the uptake of exhaust gas cleaning technology. The move is intended to ease the financial burden on ship owners seeking to install scrubber systems in order to meet sulphur emissions legislation. The financing solution, similar to those prevalent and proven in the building environment space, enables a ship owner to repay the cost of the scrubber system installation via a fuel adder, i.e. a fuel premium on the price of HFO by which the ship owner repays the cost of installing the scrubber. This provides a return from the differential between Heavy Fuel Oil (HFO) and Marine Gasoil (MGO) for a period of four to six years, depending on price spreads. This means that ship owners do not have the burden of meeting the up-front capital expenditure, which is typically between USD 3 million and USD 12 million per vessel. This investment is often difficult to pass on to charterers, whereas with CME financing, the fuel adder charge can be easily passed on until such time as the scrubber system is paid for. The concept ...

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New initiative improves shipping's safety record

Dr Pierre C. Sames from DNV GL introduced the Vessels for the Future initiative at the European Shipping Week in Brussels Looking ahead to 2020 and beyond, both maritime and inland waterways will be under ever increasing pressure, as we use them for transport, recreation and commercially. At European Shipping week (ESW), Dr Pierre C. Sames, Chairman of the European Research Association and Director of Maritime Technology, Research and Development at classification society DNV GL, introduced a new initiative - Vessels for the Future - which aims to improve shipping's safety record, sustainability and global competitiveness. Launched in November 2014, over 50 companies, research institutes, academic organizations and interested associations have already signed up to take part in the initiative to work towards a more sustainable European transport system. "Aiming at a private public partnership is important not only as it allows us to have a coordinated research, development and implementation (RDI) programme which covers both vessels and waterborne operations, but it demonstrates a clear commitment from all stakeholders to meet the ambitious goals of the initiative," said Dr Sames. The initiative focuses on the three key areas for the maritime transport cluster: safe and efficient waterborne transport and competitiveness ...

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Rolls-Royce to deliver Spain's first pure-gas marine engine

Rolls-Royce has signed a collaboration agreement with Spanish energy company Gas Natural Fenosa to develop and install a pure-gas Bergen engine aboard the Baleària-operated ferry Abel Matutes. The contract gives Rolls-Royce its first reference for a pure-gas engine installation on a European-flagged ferry operating outside of Norwegian waters. The 29,670 tonne ROPAX ferry, delivered in 2010 from the Hijos de J Barreras shipyard in Vigo, Spain, will use an LNG-fuelled Rolls-Royce Bergen C26:33 L6 AG auxiliary engine to generate 1560kWe of clean power, dramatically reducing emissions during port stays in Barcelona and Palma de Mallorca. Adolfo Utor, Baleària, Group President said: "This is a very important milestone that will enable us to be pioneers in the use of natural gas on ferries and, at the same time, be more sustainable. Besides reducing CO2 emissions by 40%, it also enables us to reduce fuel costs. Abel Matutes may well find herself deployed on a route in an Emissions Control Area (ECA) sometime in the future."   John Knudsen, Rolls-Royce, President – Commercial Marine, said: "Spain has the potential to be a significant player in the LNG market. The agreement with Gas Natural Fenosa is a giant step forward in emissions reduction in advance of the entry into force of future emissions ...

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Yara fights emissions at sea

Commercial ships are heavy emitters of harmful nitrogen oxides NOx and sulphur oxides (SOx). These exhaust gases are created when burning fossil fuels. They have negative consequences for our health (asthma) and the environment (acid rain). Yara has over the past years expanded its emissions to air (E2A) portfolio through a combination of innovation projects and acquisitions.The acquisitions of H+H and Green Tech Marine enabled Yara to become a total solution provider for both NOx and SOx emissions at sea. They provide Yara with technology uniqueness. H+H is the market leader in marine NOx reduction technology, while Yara Marine Technologies (formerly Green Tech Marine) has developed an innovative high-performance and energy-saving solution for reducing the SOx emissions in the maritime and offshore industries. The smallest scrubber in the market make it easy to retrofit any seagoing vessel by simply replacing ship’s exhaust silencer without the need of structural modifications. As a consequence the installation and commissioning of the scrubber can even be done while sailing. Yara is taking steps to improve on  internal emissions and a good example for that is the new ammonia ships, which will be equipped with Yara's emissions control technology. Source & Image Credit: Yara In the outbreak, ...

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Singapore aims develop more efficient and eco-friendly ships

A new research collaboration between A*STAR’s IHPC, Sembcorp Marine Ltd, University of Glasgow and UGS aims to  make a ship’s voyage more smooth sailing by improving its hydrodynamics and energy efficiency. The four organisations signed a memorandum of understanding (MoU) to collaborate and develop new hull designs for large ocean-going vessels and make them more environmentally friendly. Under the three-year MoU, IHPC, Sembcorp Marine Ltd, University of Glasgow and UGS will use computational modelling and visualisation technologies to design vessels with improved hydrodynamics for better fuel efficiency. In addition, they will collaborate and innovate on features to reduce harmful exhaust emissions and discharges by enhancing the vessel’s scrubber and ballast treatment systems. Currently, maritime transport carries about 90 percent of all international trade and accounts for three percent of global greenhouse gas emissions. Under this research collaboration, Sembcorp Marine and IHPC will analyse and improve gas abatement technology, using an enhanced scrubber design to address the emission of harmful gases like sulphur oxides (SOx), nitrous oxides (NOx), particulate matter and greenhouse gases, in particular CO2, from the ship’s heavy fossil fuel burning combustion engines. Such designs and technology are also needed to meet the International Maritime Organization’s new 2015 standards on ...

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Clean Marine wins new contract for EGCS installation on tankers

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers.  IMO’s convention for the reduction of sulphur oxides (SOx) demands that sulphur emission levels in Emission Control Areas (ECAs) shall be cut to 0.1 percent from the year 2015 and that the global emission level must not exceed 0.5 percent from the year 2020.  The order for Clean Marine EGCS will enable the new medium-range tankers, owned and operated by a British oil major, to comply with this regulation without switching to more expensive fuels. “These contracts confirm the growing market demand for Clean Marine’s Allstream EGCS, which is a particularly competitive solution for the tanker segment” says Nils Høy-Petersen, CEO of Clean Marine. “We are very pleased to be working closely with Hyundai Mipo to deliver a cost-effective solution to help the owner comply with existing and pending emissions regulations.”  The two MR2 type tankers (hull number 2495 and 2496) have a deadweight  of 40,000 and are part of a series of five sister vessels to be constructed at Hyundai Mipo Dockyard. Clean Marine offers a proven, futureproof EGCS which enables vessels to trade in ...

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Yara Marine wins award for innovative green technology

Yara Marine Technologies (YMT) received award for developing the smallest footprint SOx scrubber that can be retrofitted into any seagoing vessel. Within the next 10 years ships worldwide will need exhaust gas cleaning equipment or change to higher-cost low-sulfur fuel to comply with the latest International Maritime Organization emission regulations. From 1 January 2015, SOx Emission Control Areas will be established in the North and Baltic Seas, the North American Atlantic Coast, and the Caribbean.  Green Tech Marine changed name on the first of this year, resulting in all visual elements being integrated into the Yara brand platform and getting a clear Yara "look and feel". "In 2015, we will support this integration with common marketing activities that include a shared booth at the Nor-shipping Exhibition with all our marine activities, aligned sales teams cross-selling NOx and SOx technologies to their respective customer bases, including the sales of urea and services to the marine segment," says Industrial Marketing Director Bjorn Theijs. "With combined communication efforts, a broader audience will be reached without increasing costs."  "From a branding perspective, Yara is building more environmental solutions awareness on a global scale and raising the profile of our NOx, SOx portfolio within the ...

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Clean Marine EGCS for Dorian LPG carrier gets installed and approved

The ECO VLGC Corvette , delivered from Hyundai Heavy Industries on 2 January, 2015, is fitted with a Class and Flag State approved exhaust gas cleaning system (EGCS) provided by Clean Marine. The measurements of exhaust gas emission and washwater criteria are well below the required limits stated in the MEPC guideline 184(59). This ensures vessel compliancy with the 0,1% sulphur limit in ECAs, which has been in place from 1 January this year. The vessel is also compliant with the stricter US EPA requirements of a pH above 6 in washwater, measured at the outlet. The vessel’s Class Society ABS, on behalf of the Bahamas Flag, issued a formal letter on 8 January, 2015, confirming that the EGCS complies with “Scheme B – EGC System Approval, Survey and Certification Using Continuous Monitoring of SOx Emissions” of the  IMO Resolution MEPC.184(59), 2009 Guidelines for Exhaust Gas Cleaning Systems. The approved EGCS will enable the new Dorian LPG vessel to comply with current and future legislation relating to sulphur emissions without switching to more expensive fuels. John Lycouris , Chief Executive Officer at Dorian LPG (USA) said: "Dorian LPG is proud to be the first within the gas carrier market to ...

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Shipping must remain energy-efficiency in a low crude price environment

Ship efficiency remains just as relevant and important in a bearish oil market as it does when shipowners have to pay over US$600 for a tonne of Heavy Fuel Oil. “With crude oil prices at their lowest since April 2009, the temptation is to put your foot on the gas and speed up a bit but this is not the way forward. When oil prices are low shipowners can benefit more fully from energy-saving technologies,” said Hakan Ozcan, the Chief Financial Officer of Ecoships, the technical ship management arm of Newport Shipping Group, “Admittedly bunker fuel will continue to be the largest single operational cost for shipowners, but with fuel prices continuing to drop, profit and loss accounts will improve, providing owners with the resources needed to re-invest in new ship designs, equipment and technologies capable of reducing fuel consumption even further. It’s a win-win situation for the merchant fleet.” Whilst Ozcan does not suggest that the industry embarks on the kind of newbuilding spending spree that will prolong or perpetuate over-capacity, he does believe shipowners have a commercially-viable opportunity to replace ageing, less efficient tonnage with vessels capable of meeting increasingly stringent environmental regulations. “It just makes economic sense. ...

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NYK, ClassNK develop advanced Exhaust Gas Cleaning System

From second from left, Heng Chiang Gnee, executive director of Singapore Maritime Institute;Seow Tan Hong, managing director of Sembcorp Marine Technology Pte. Ltd.;Makoto Igarashi, president of Monohakobi Technology Institute; Chan Siew Hwa, professor and co-executive director of Energy Research Institute at Nanyang Technology University; Toshio Kurashiki, operating officer and regional manager of South Asia and Oceania at ClassNK Nippon Yusen Kabushiki Kaisha (NYK Line), the Monohakobi Technology Institute (MTI), which is an NYK Group company, and ClassNK have teamed up with Singapore-based Nanyang Technological University and Sembcorp Marine Technology Pte. Ltd. for research on an exhaust gas cleaning system (EGCS) intended to be used to control SOx emissions outside emission control areas (ECAs). This joint research project between Singapore and Japan will be funded by a grant from the Singapore Maritime Institute and carried out with the support of the ClassNK Joint R&D for Industry Program. Unlike the development of EGCSs intended for use inside ECAs, this research will focus on the future need to comply with SOx emissions regulations outside ECAs after 2020 or 2025.Working with a leading EGCS manufacturer, the project will utilize the most advanced technology available to simplify EGCS operations, as well as reduce costs and ...

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