SOx reduction. Class involvement

(1)

28 January 2013

SOx reduction

(2)

28 January 2013

Marpol 73/78 Annex VI

2

MARPOL ANNEX VI applies to

all ships, fixed and floating

drilling rigs and other platforms IAPP Certificate is required for ships of 400 GRT and above engaged in international

voyages involving countries that have ratified the conventions, or ships flying the flag of those countries.

Annex VI Regulation 14 contains requirements to Sulphur Oxide (SOx) emissions from ships

(3)

28 January 2013

GENERAL

 Sulphur content of marine fuels (according to MARPOL Annex VI , reg. 14)

 The sulphur content of marine fuels must not exceed:

 Global:  SECA/ECA: 3 3.5% 4.5% 2012 Jan. _{2020 Jan.} (Possible postponement until 2025) 0.5% 0.5% 1.0% 1.5% 2010 July 2015 Jan. 0.5% 0.1%

THERE is no chance of pushing back the 2015 deadline for ultra-low sulphur fuel, Brussels has warned.

(4)

28 January 2013

Fuel share of daily costs

(5)

28 January 2013

Annex VI Compliant Marine Fuel Use

(6)

28 January 2013

Marine Fuels

 Prices ($/ton) in Rotterdam 2013.01.11

LSMGO(0,1%S) - 932 MGO - 932 LS380 (1-1.4%S) - 649 LS180 (1-1,4%S) - 670 IFO380 - 618 IFO180 - 638 LNG price : 570 $/ton - Europe

875 $/ton - Singapore

 Energy price equivalent:

MGO - 20,4 $/GJ

LS380 - 14,7 $/GJ

IFO - 13,9 $/GJ

LNG - 10,6-16,3 $/GJ

 EC quality types of fuel:

- Quality 1 (MGO) – less than 0,1%S

- Quality 2 (MDO) – less than 1,5%S

- Quality 3 (IFO) - between 1,5 and 4,5%S (max. 3,5%S since Jan. 2012).

IFO - Intermediate Fuel Oil is a blend of gas oil and heavy fuel oil

(7)

World LNG prices

7

(8)

28 January 2013

MARPOL Annex VI - SOx requirements

 The following options for compliance apply:

- Sulphur content of the fuel shall not exceed the set limit

- An exhaust gas cleaning system approved by or on behalf of the national maritime administration in accordance with guidelines developed by IMO – MEPC.184(59). The system shall reduce the total emission of sulphur oxides from vessels including both auxiliary and main propulsion engines

- Any other technological method that is verifiable and enforceable to limit SOx

emissions to a level (described in legislation). These methods shall be approved by the national maritime administration in accordance with IMO guidelines

(9)

28 January 2013

SOx - DNV Services

1) Class and Statutory Approval

 Piping Systems, DNV Rules for Classification of Ships, Pt.4 Ch.6

- a new section for Exhaust Gas Cleaning - EGC systems has been added

- Machinery, Control Systems, Electrical Systems, Structure, Stability, Fire Safety

 Revised MARPOL Annex VI, Regulation 14

- Guidelines for Exhaust Gas Cleaning System the environmental performance (Resolution MEPC.184(59))

2) Advisory

(10)

28 January 2013

Three options for SO

_X

removal

LNG as fuel

10

…or fleet redeployment,

i.e. give up trading in ECAs…

1

2

3

Scrubbers for exhaust gas cleaning

(11)

28 January 2013

Pros and cons

11

LNG fuel

Scrubber

2013

Low sulphur fuel

2020-2025 Global 2015 ECA

1850-1900

?

Option Pros Cons

Scrubber Can use cheaper, high sulphur fuel.

Fuel available Takes up space. Significant investment cost No significant reduction of NOx Requires additional energy during operation

Discharge of water LNG Currently cheaper fuel, but future

price development is uncertain Reduces NOx and CO2

Retrofit difficult

Requires larger fuel tanks Fuel availability uncertain Infrastructure currently limited Distillate fuel No or little modifications and

investment needed. Well known and tested.

Higher fuel cost.

Prices likely to increase. Fuel availability uncertain. Wear and tear.

1

2

(12)

28 January 2013

LNG: Technically proven, safe in operation

 40 years of LNG tanker operation

 Used as marine fuel since 2001, now in 34 ships

 Class rules in place, IMO regulations in the pipeline (2014)

 Relatively high capex, opex highly dependent on the LNG market price

 Uncertainties;

- LNG availability and future price? Government incentive schemes?

- Infrastructure development pace? Retrofit? Or newbuilds only?

- Safety record due to higher than normal safety focus?

12

(13)

28 January 2013

13 13

Technology is approved and available

 Many manufactures are offering LNG fuelled engines:

- Wärtsilä

- Rolls-Royce

- MAN Diesel

- Mitsubishi

 Main challenges are the loss of cargo space due to cylindrical LNG storage tank, and a slight methane slip from engine when running on low load (continuous improvements)

 Development is ongoing to shift from spherical (volume consuming) to hull integrated tanks

 Fuel cells on LNG for ship propulsion are under development (FellowShip)

Two engine concepts:

• Lean burn LNG mono fuel • Dual fuel (LNG + Diesel)

(14)

28 January 2013

14

Rough estimates for additional CAPEX for LNG tanks, distribution, engine, larger vessel:

(15)

28 January 2013

A typical Baltic Sea Cargo Ship when operating on LNG

547 TEU container vessel (5000 GT) Propulsion power 3960 kW

SOx NOx CO2

Particle emissions

With LNG fuel:

0

31 5 500

0

With low-sulphur HFO

(LS380 with 1% sulfur):

₅₀

₁₈₀

_{7 250}

₄

Yearly emissions, tonnes/year

(16)

28 January 2013

Low sulphur fuel - refinery capacity

 Capacity upgrade primarily coking and

cracking units; likely more attractive to produce higher margin products than LS fuels

16

3

 Capacity growth in Asia – but LS fuel

demand growth expected primarily in North-America and Europe

 Will refineries deliver sufficient volumes

in the right geographies?

(17)

28 January 2013

Class requirements related to the low sulphur fuel system

 Class has no specific requirements to the fuels used on board, unless special environmental

class notation is denoted. The max. sulphur content is 3%S (1%S in ports and SECAs) for CLEAN and CLEAN DESIGN notations.

 Class notations ECA(Sox-A) and ECA(Sox-P), when granted assure compliance with

MARPOL Annex VI regulations in ECAs. The fuel shall cover the quality parameters specified in ISO 8217 but S content shall not exceed 0.10% and viscosity shall not be below 2cSt at 40°C.

 Where applicable, alterations to systems and components are subject to approval by Class, i.e. drawings need to be submitted and approved prior to commencement of the alterations and after completion these alterations need to be verified and tested during an on board survey.

 Though not required by Class or Port State Authorities, ship operators may be asked by e.g. charter parties to provide a statement (witness report) pertaining to the capability of the vessel to operate on LSF, the effectiveness of fuel changeover procedures, or both.

(18)

28 January 2013

Systems and arrangement for meeting regulations in

Emission Control Areas – Class notation ECA(SOx)

 Reliable fuel oil systems and machinery components should enable safe operation

on low viscosity (2 cSt) and low sulphur (0.10%) marine distillate fuel oils (marine gas oil) for a minimum of 4 days.

 The 4 days rule apply to ships that continuously operate on marine gas oils and also

to ships provided with approved abatement technology capable of cleaning

emissions to a marine distillate fuel equivalent standard.

For example, SCR, Exhaust gas scrubber etc.

 Two alternatives:

ECA(Sox-P) - Ships designed to only operate machinery components used in port on marine distillate fuel. i.e. compliance with EU low sulphur directive (Aux.engines and Boilers).

ECA(Sox-A) - Ships designed to operate all machinery components on marine

distillate fuel. i.e. compliance with MARPOL Annex VI for ECA’s after 1st _{July 2015}

(Aux.engines, Boilers and Main engine).

(19)

28 January 2013

GENERAL - SOx Emission Control Areas

19

Day 1

Day 2

200 km

(20)

28 January 2013

Low sulphur fuel

 A fuel change-over manual is to be developed.

 The machinery components and fuel piping systems are subject to a functional test

using low viscosity marine distillate fuel.

 The function test is to include a verification of the feasibility of the ships’ fuel

change-over procedures.

(21)

28 January 2013

SYSTEMS AND ARRANGEMENTS –

Capacity of Storage tank

 The vessel shall be arranged with minimum one dedicated storage tank for each (e.g. low and/or high sulphur) marine distillate fuel grade carried.

 Tanks for storage of marine distillate fuel shall not be located adjacent to heated tanks

unless the calculations required in B101 confirm that viscosity in way of machinery

components (including fuel oil pumps) is not below that specified in Sec.1 A201.

MGO Serv . TK

MGO Storage TK

HFO Bunker TK

22

Not be located adjacent to heated tanks

(22)

28 January 2013

Fuel Oil System Arrangements

 Calculations shall be performed to confirm that the viscosity of the marine distillate fuel in way of machinery components (including fuel pumps for marine distillate fuel) is not lower than that specified.

 The calculations shall indicate viscosity as well as temperature.

 Calculations shall be carried out for the operational loads as well as during change-over from residual oil to marine distillate fuel and vice-versa.

 The calculations shall take into account the environmental conditions

Table B2 Ambient reference conditions for machinery

Parameter Value

Total barometric pressure 1 bar Ambient air temperature 45°C Relative humidity of air 60% Sea water temperature 32°C

(23)

28 January 2013

Fuel oil change-over manual

 An approved fuel oil change-over manual shall be available onboard and shall

consist of three parts as specified below:

 Part I shall cover procedures for safe and efficient change-over from marine

distillate to residual oil and vice versa for all relevant machinery components and associated piping systems.

 Part II shall cover calculations of change-over time to ensure that the fuel oil being

consumed by machinery components has a sulphur content not exceeding 0.10%.

This part is only relevant for vessels where the piping system for residual oil and

marine distillate fuel are common.

 Part III shall include the following:

- Contingency procedures in case of poor marine distillate fuel quality, or incompatibility between marine distillate fuel and

residual oil

- Contingency procedures are also to be developed for failures due to vapour lock (gasification) in the event of improper

change-over sequence to distillate fuel oil

- Procedures for maintaining machinery readiness for emergency departures with marine distillate fuel - Methods for monitoring cylinder condition and injection pump internal leakage after switching from residual oil to marine

distillate fuel

- Procedures for onboard testing of compatibility between residual oil and marine distillate fuel.

(24)

28 January 2013

MACHINERY COMPONENTS

 The manufacturer of machinery components shall declare that the machinery

component (main engine(s), auxiliary engines, boiler(s) and any fuel oil pump) is capable

of continuous operation on marine distillate fuel for the minimum number of operating

days.

 The manufacturers’ declarations and required detailed information is subject to approval.

(25)

28 January 2013

Scrubber regulations

 Revised Guidelines for Exhaust Gas Cleaning Systems MEPC.184(59) adopted

July 2009, now including changes to requirements for monitoring and discharge of wash water.

 The guideline offers two alternative compliance schemes:

- Scheme A - EGCS system approval, survey and certification using parameter and emission checks.

- Each EGCS unit meeting the requirements should be issued with a SOx Emission Compliance

Certificate (SECC)

- Scheme B - EGCS system approval, survey and certification using continuous monitoring of SOX Emissions.

- Scheme B is a single unit approval only and requires continuous monitoring of: pH, PAH, turbidity (suspended particles), nitrates and temperature

 All ships should have an SOx Emission Compliance Plan for the ship, approved

by the Administration.

27

(26)

28 January 2013

Scrubber challenges

 Scrubber technology proven on land, but still

early days at sea

 Fairly high investment costs

 Energy consumption

 Capacity & scalability, physical footprint

 Sludge production and disposal

 Integration challenges: SOx scrubbers + NOx

SCR

 Crew issues; training and qualification

 How to prove compliance;

- Waste water discharge monitoring

- Performance monitoring & documentation

 Manufacturer capacity as 2015 approaches?

28

(27)

28 January 2013

Approval of documentation – class requirements for ships

provided with exhaust gas cleaning systems

 Arrangement of exhaust gas system including exhaust gas cleaning units.

 Arrangement of exhaust gas treatment fluid systems.

 Arrangement of systems for prevention of overheating of exhaust gas cleaning

system components.

 Arrangement of sea and fresh water systems for exhaust gas cleaning units.

 Arrangement of waste and discharge systems from exhaust gas cleaning units.

 Arrangement and details of By-pass valve/dampers.

 Pressure drop analysis. Back pressure calculation.

 Test procedure for quay and sea trial including tests addressing failure impact on

main functions.

(28)

28 January 2013

Approval of documentation – requirements for ships

provided with exhaust gas cleaning systems contd.

 Where DNV is authorized to issue the IAPP certificates:

For Sox

- Operation Manual - SOx Emission Compliance Plan (SECP)

- Operation Manual - Exhaust gas cleaning system technical manual (ETM).Scheme

A or B as applicable

- Operation Manual - Onboard Monitoring Manual (OMM)

- EGC Record book or Electronic Logging System

- Test procedure for sea trial according to the requirements of MEPC 184(59)

- Other Required documentation according to MARPOL Annex VI with amendments

(29)

28 January 2013

Exhaust Gas Cleaning Systems (EGCS)



Limited testing and operational experience with the use of scrubbers



Operational challenges reported



Several types:

- Open loop wet system: MES, Krystallon, Aalborg, Ecospec

- Uses seawater directly followed by filtration. Treated water discharged to sea

- Closed loop wet system : Wartsila scrubber, Clean Marine

- Uses freshwater with alkaline additives (NaOH). More complex system able to

hold water in port

- Dry scrubber. Couple Systems - Utilises lime granulates.

(30)

28 January 2013

Sea water scrubbing

 Seawater washing of exhaust gases is a well-known method, which is commonly

used at onshore installations

 Seawater washing is a simple and well-proven technology for exhaust gas sulphur

removal. Applications of this technology have been used in inert gas plants for ships for the past 20 years

 For marine engines, several types of equipment that can be installed

 For sulphur removal, an efficiency of some 90% is achievable

 However, in restricted waters with heavy traffic, cleaning the water from the sea

water scrubber may be required to reduce the concentration of sulphur in the seawater.

 This is also covered by the regulation of SOx emission in MARPOL Annex VI where

it is state:

- 'Waste streams from the use of such equipment shall not be discharged into enclosed ports or harbours and estuaries unless it can be thoroughly documented that such waste streams have no adverse impact on such ecosystems based upon criteria provided by the Port State authorities.'

(31)

28 January 2013

Open loop, seawater scrubbers

(32)

Scrubber systems

34

2

Cloud chamber SOX scrubber

Advanced Clean-up Technologies Inc

EcoSilencer® Sea water scrubbing

Marine Exhaust Solutions

Sea water scrubber + hydro cyclone

Hamworthy Krystallon

Advanced Vortex Chamber

Klaveness Group Clean Marine

DryEGCS

Couple Systems GmbH

EGCSCNOx

Ecospec

SOx scrubber + NaOH

Wärtsilä

Exhaust gas scrubber

Aalborg Industries

(33)

28 January 2013

Hamworthy Krystallon – seawater scrubber

 Open loop system has been installed on

Holland-America’s ‘Zeendam’ with installed engine power 21 MW.

 Able to remove 98% Sox and 85% PM

 Investment: 2.5-4 mill $

Linea Messina 45K DWT Ro-Ro (Jan.2011) has 5 scrubbers for each of (4x2MW) engines & boiler. All in funnel. Payback time claimed: 2 years.

(34)

28 January 2013

Tri-Mer Corp. - Cloud Chamber Scrubber

 Removal average efficiency: SO2 -99%, PM – 98%

 Barge or quey based scrubber used in harbours or at anchorages

36

A. Pre-conditioning chamber – removes particles >10 um B. Positively charged claud generation chamber

(35)

28 January 2013

Alfa Laval Aalborg hybrid system – Pure SOx

 SOx removal rate >98%

 Traps up to 80% of PM

 Operates on SW in open sea and on FW in low alkaline

waters and harbours

 Power consumption: approx. 1,5% of engine power

 Operational weight: 35 tonnes (20MW), 18 t (8MW)

 Dry weight : 25 tonnes (20MW), 15 tonnes (8MW)

 Payback time claimed: 1,2 – 10 years on fuel cost saving

 More than 1000 hours of operation

(36)

28 January 2013

Aalborg scrubber installation - example

38 Investment: 2-2.5 M$; OPEX ~1.5 – 2% of added fuel cost

(37)

28 January 2013

Wärtsilä SOx scrubber

 Closed loop freshwater system with addition of alkalinity (NaOH).

 Main stream scrubber – one unit for each engine, not suitable for boilers. Need for holding tanks

 Integrated scrubber for several combustion units. Wet sump in the srubber – no process tank, small pump

 Prototype installed on the tanker “Suula”.

 Sox reduction: 99%

 PM reduction: 30-60%

 Payback time 2-3 years

 Sludge can be conducted to the other

engine room sludge and disposed in

port.

(38)

28 January 2013

Klaveness Invest AS - Clean Marine AS

 Exhaust Gas Cleaning System (EGCS) based on what is described as the “Advanced Vortex Chamber

(AVC) principle”. Serves simultaneously several combustion units.

 The first ocean going unit entered into service on a Klaveness bulk carrier BARU in June 2009 – 10MW.

 Cyclone technology to ensure close turbulent contact and reaction between wash water (sea or fresh water) and the flue gas with possible addition of alkaline agent. A PM trapping mechanism is in place.

 A spray of seawater and caustic soda

(NaOH, 50% aqueous solution) into

the exhaust gas flow is regulated

automatically based on the feedback

from the emission monitoring system,

which analyses the SO2/CO2 relation.

 Payback time is in the range 1-6 years

depending on trading area. For

continued operation inside ECAs it may

be just a few months.

 >98% SOx trapping

 Power consumption: abt 2%

(39)

28 January 2013

The Marine Exhaust Solutions -MES EcoSilencer ®

 Reduce SO2 exhaust emissions by up to 90 %

 Mixes the hot exhaust gas in a turbulent cascade with seawater.

 One EcoSilencer® is provided for each diesel engine.

 After scrubbing process, the scrubbing water is pumped out from each EcoSilencer® through a water filtration plant where it passes through a series of primary and secondary hydro cyclones.

(40)

28 January 2013

CSNOX system - Ecospec

 Open loop system installed onboard 100,000 ton oil tanker

 99% SO2, 77% CO2 and 66% NOx removal

 The CSNOX uses Ultra Low Frequency (ULF) waves to treat electromagnetically water that reacts with the exhaust gas

(41)

28 January 2013

Couple Systems GmbH - DryEGCS

 Reduction of Sulphur (99% SOx), Particles (98% PM)

 Dry Scrubber (Chemisorption) with Ca(OH)2 (lime – Calcium Hydroxide Granulate).  SOx reacts chemically, producing gypsum disposed ashore

 Pilot-Installation on MS Timbus MAK 3,6 MW at 2009

43

Granulate silo

Reactor

Screw conveyor

(42)

28 January 2013

44

(43)

28 January 2013

45

Cumulated costs for 100% ECA operation

(44)

28 January 2013

Scrubber / fuel change economy

 The initial price of the scrubber is assumed to be <170 EUR/kW for retrofit and large

installations. It may go down to 120 EUR/kW for small ships and newbuildings.

 Sample costs of scrubbers would be around:

- 3mln EUR for a tanker

- 9mln EUR for a large container ship and

- 0,5ml EUR for a small dry cargo ship

 Opex for scrubbers equals to 1-3% Capex. It may reach 0.8 EUR/MWh for a small

ship, 0.5 EUR/MWh for medium and 0.3 EUR/MWh for a large vessel.

(45)

28 January 2013

48

SOx reduction. Class involvement

SOx reduction

Marpol 73/78 Annex VI

GENERAL

Fuel share of daily costs

Annex VI Compliant Marine Fuel Use

Marine Fuels

World LNG prices

MARPOL Annex VI - SOx requirements

SOx - DNV Services

1) Class and Statutory Approval

2) Advisory

Three options for SO

removal

…or fleet redeployment,

i.e. give up trading in ECAs…

Pros and cons

?

LNG: Technically proven, safe in operation

Technology is approved and available

A typical Baltic Sea Cargo Ship when operating on LNG

0

31

5 500

0

50

180

7 250

4

Low sulphur fuel - refinery capacity

3

Class requirements related to the low sulphur fuel system

Systems and arrangement for meeting regulations in

Emission Control Areas – Class notation ECA(SOx)

GENERAL - SOx Emission Control Areas

Low sulphur fuel

SYSTEMS AND ARRANGEMENTS –

MGO Storage TK

Fuel Oil System Arrangements

Fuel oil change-over manual

MACHINERY COMPONENTS

Scrubber regulations

Scrubber challenges

Approval of documentation – class requirements for ships

provided with exhaust gas cleaning systems

Approval of documentation – requirements for ships

provided with exhaust gas cleaning systems contd.

Exhaust Gas Cleaning Systems (EGCS)



Limited testing and operational experience with the use of scrubbers



Operational challenges reported



Several types:

Sea water scrubbing

Open loop, seawater scrubbers

Scrubber systems

2

Hamworthy Krystallon – seawater scrubber

Tri-Mer Corp. - Cloud Chamber Scrubber

Alfa Laval Aalborg hybrid system – Pure SOx

Aalborg scrubber installation - example

Wärtsilä SOx scrubber

Klaveness Invest AS - Clean Marine AS

The Marine Exhaust Solutions -MES EcoSilencer ®

CSNOX system - Ecospec

Couple Systems GmbH - DryEGCS

Cumulated costs for 100% ECA operation

Scrubber / fuel change economy

Safeguarding life, property

and the environment

₅₀

₁₈₀

_{7 250}

₄