The 2020 Challenge – Scrubber Considerations

Maria Kyratsoudi, FOBAS Senior Specialist GEMA, Hellenic Lloyd’s SA presentation during the 2015 GREEN4SEA Forum

There are many SOx options in order to achieve compliance available now, in short term and in longer term. Exhaust gas cleaning is a mature industrial technology, notwithstanding the challenges of marinising these technologies. Technical, contractual and regulatory challenges need to be addressed in order exhaust cleaning systems to be effectively installed and used. The decision of using scrubbers or not depends is not straightforward and relies to some key operational parameters. Unfortunately there is no one size fits all solution and operators need to consider their own operating patterns; financial modelling and asset status to develop tailored solutions

SOx compliance has become an industry challenge not only for the shipowners but also for the refineries, as they need a significant investment in order to be able to meet the 2020-2025 fuel supply demand. Up to 2015, refineries have been delivering within traditional/conventional production methods. From the 1^st of January 2015 and up to 2020/2025 we have already seen increasing pressures on supply as a result of an increased used of distillates fuels and of the new so called ‘hybrid fuels’ as well as some quality issues (low flash point, FAME, Lubricity etc.) The price for these fuels is expected to be between the price of HFO and the MGO. What we need to consider is that refineries will need an outlet for all residual fuels albeit to limited capacity after 2020/2025

 During the first four months of the 0,1% implementation,  we have seen some quality concerns with respect to the distillates. The non-compliance cases have been increased as the 0,1% limit is very low and provides minimum tolerance for any possible mixing errors during storage or handling of the fuel. We have also seen cases where the average viscosity is statistically less than 3cSt.

Now the question is; beyond 2020 / 2025, when will it be the global 0.50% SOx date? Despite industry pressure to defer the date to 2025, IMO intends to bring the date forward. Without sufficient lead time ahead of a statutory deadline, it is unlikely the oil industry will invest just to meet the shipping needs. IMO’s fuel availability study is not an easy process as it is taken into consideration the projected marine fuel demand in 2020, the demand for other petroleum products and the overall refining industry supply capability.

They are many different SOx compliance options either viable now or in short to medium term. The longer term options may not be considered further down the line. In general, most people tend to choose what is available today; marine gas oil. The question is, why so I even look beyond what’s available today?

The following diagram depicts the reason; it’s about the risk and reward relationship. Every technology, in fact many choices in life, are associated with some risk and some reward. And people will take risks if there is a promise of a reward.

Marine Gas Oil includes low risk and low reward (cost of compliance). Therefore, you don’t make any investment, you just use it.

On the other hand, operators who have gone through the scrubber route or LNG route and have been working for a few years with complex implementation projects, with high costs, they will tell you perhaps that it hasn’t been easy. But their reward is that when the time will come, they will enjoy the lowest costs of compliance while the majority of the industry will have the same anxieties and uncertainties.

Exhaust gas cleaning is an affective and mature industrial technology. Commercial application of wet scrubbers has started at early 1930’s. However there are challenges of using these technologies. There are technical regulatory and contractual challenges which most of them are interconnected and they need to be addressed in order exhaust cleaning systems to be effectively installed and used.

Scrubber Challenges

 Technical

• Integration of de-sulphurising and de-nitrification techniques
• Back pressure management
• Transient load operation
• Wash water conditioning and monitoring

Regulatory

• IMO vs. Regional Controls
• Wash water discharge acceptability
• Grandfathering rights
• Waste disposal

Contractual

• Contract specification
• Acceptability criteria
• System integration

So, the question now is; to scrub or not to scrub? It depends on three factors:

1. The time you spend inside ECA
2. The fuel consumption
3. MGO/ HFO spread

Most companies that have decided to use scrubbers for SOx compliance; they have selected the wet- scrubbing solution in which there is option for open loop, closed loop or hybrid. Although open loop cannot work in the fresh/ brackish water, there are some suppliers that can provide chemicals in order the scrubber to be used to bypass the problem of not having saline water. Zero discharge mode allows operating in port/coastal areas that do not allow washwater discharges. Generally, we would recommend some flexibility on the decision which most of the times go with a premium.

As a class society an increasingly common question is “what is the answer to SOx and NOx compliance?” Sadly, as much as we would love to be able to offer a silver bullet there is no one size fits all solution. Operators need to consider their own operating patterns, financial modelling and asset status to develop tailored solutions. LR can assist in your effort to make an informed decision.

Above article is an edited version of Maria Kyratsoudi’s presentation during the 2015 GREEN4SEA Forum

You may view her presentation video by clicking here

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About Maria Kyratsoudi

FOBAS Senior Specialist GEMA, Hellenic Lloyd’s SA

Maria Kyratsoudi joined Lloyd’s Register in 2009 and her current role is FOBAS Senior Specialist, Team Leader for Greece, East Mediterranean and Adriatic (GEMA). Maria has the overview of the FOBAS service in GEMA region and provides specialist technical advice on fuel quality and on-board fuel management. Current duties include also providing decision making support to customers with respect to the air emissions compliance solutions (alternative fuels, abatement technology etc) Prior to joining Lloyd’s Register, Maria worked as a plan approval engineer at Germanischer Lloyd. Maria Kyratsoudi holds an MSc in Naval Architecture & Marine Engineering from the National Technical University of Athens.

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