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In and out of the ECAs compliance strategy of an international shipping line

In and out of the ECAs compliance strategy of an international shipping line. jai. Setting the scene. Principles of Conduct Protecting the environment

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In and out of the ECAs compliance strategy of an international shipping line

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  1. In and out of the ECAs compliance strategy of an international shipping line jai Regulatory Affairs Maersk Maritime Technology

  2. Setting the scene Principles of Conduct Protecting the environment We protect the environment by exercising constant care and optimizing our operations, and endeavour to use natural resources responsibly and reduce our environmental impact. We are committed to countering climate change by striving to minimize greenhouse gas emissions from our business activities. Sustainability Report 2009 The A.P.Moller–Maersk Group Regulatory Affairs

  3. Setting the scene Nomenclature: MARPOL: IMO convention for prevention of pollution SECA: Sulphur Emission Control Area SOx: Sulphuric Oxides (SO, SO2, SO3, SO4) NOx: Nitrogen Oxides (NO, NO2) PM: Particulate Matter HFO: Heavy Fuel Oil LSFO: Low Sulphur (Heavy) Fuel Oil HSFO: High Sulphur (Heavy) Fuel Oil MDO: Marine Diesel Oil MGO: Marine Gas Oil LNG: Liquefied Natural Gas PAGE 3 Regulatory Affairs November 17, 2014

  4. Setting the scene Air emission regulations adopted by IMO in 1997 as a new Annex VI to MARPOL. The regulations entered into force in May 2005. 1st SECA enforced in May 2006 – the Baltic Sea. 2nd SECA enforced in August/ November 2007 – the North Sea. PAGE 4 Regulatory Affairs November 17, 2014

  5. Setting the scene • 3rd SECA will be the North American ECA • Will enter into force in August 2012 • Will control both SOx and NOx Regulatory Affairs

  6. Present regime: • Max sulphur content within SECA (IMO): • 1.5% • 1.0% from 1 July 2010 • 0.1% from 1 January 2015 • California (CARB) rules (24 NM from shore): • 1.5% MGO, or • 0.5% MDO • After 2012: 0.1% • California at berth regulations on NOx and PM • Gradually increasing requirements • Maersk Line voluntarily followed the CARB rules from 2006 -> 2009. • Maersk Line used 0.2% MGO Regulatory Affairs

  7. Problem areas Present ECA regime: Change from HSFO to LSFO After 2015: Change from HSFO to MGO Business as usual? Rocket science? PAGE 7 • Up till around 1980 all ships with large diesel engines changed from HFO to distillate fuel upon entering port and back again after leaving port. • Newer engines re-circulate the HFO while in port and need not change to distillate fuel. Regulatory Affairs November 17, 2014

  8. Crew Training • Crew advised to follow change over procedure as per engine manufacturer instructions • Change over considered ’Normal Engineering Practice’ • No special training provided • Maersk crews are trained to ISO 14001 Environmental Management Systems Regulatory Affairs

  9. Emissions Reductions Achieved in California SOx 95 % PM 86 % NOx 12 % SOx PM NOx Data based on Vessel Calls at Los Angeles and Oakland Ports switching from 3% S fuel to 0.2% S fuel After 2015 the switch will be from 1.0% S fuel to 0.1% S fuel. Regulatory Affairs

  10. Present compliance strategy in Europe • Use compliant fuel: • Three types of fuel must be carried on board • After 2015: • Two types of fuel must be carried on board • Alternative solution? Regulatory Affairs

  11. Alternative methods of compliance Scrubber technology LNG Bio fuels Cold ironing New technologies? PAGE 11 Regulatory Affairs November 17, 2014

  12. Alternative methods of compliance Scrubber technology PAGE 12 Regulatory Affairs November 17, 2014

  13. Alternative fuels LNG as fuel LNG tank HFO tank (shown only for size comparison) • Bunker infrastructure to be developed • The LNG price is about 1.4 * HFO price (according to Wartsila January 2010) • Required volume for fuel tanks about 3-4 times more compared to HFO tanks • LNG takes up double the volume compared to HFO • Storage in pressurised tanks results in “broken space” • CO2 – about 23% reductions • Assuming that no unburned methane escapes through the exhaust system (gas slip). • The Global Warming Potential (GWP) of methane is 25 times higher than CO2. • The gas slip percentage is under discussion, but not zero. • SOx – 100% reduction • NOx – 92% reduction Maersk Maritime Technology Slide no. 13

  14. Alternative fuels Biodiesel • Test effects of using biodiesel onboard a container vessel (Maersk Kalmar) • Effects on air emissions (CO2, NOx, SO2) • Long term storage effects (corrosion, water) • Joint project between Maersk Line, Tankers, Drilling, Supply Service • Testing will begin primo June 2010 • Vessel will be designed to be able to test other biofuels in the future Maersk Maritime Technology Slide no. 14

  15. Cold ironing PAGE 15 Regulatory Affairs November 17, 2014

  16. Nuclear power? PAGE 16 Regulatory Affairs November 17, 2014

  17. Muscle power? PAGE 17 Regulatory Affairs November 17, 2014

  18. Niels Bjørn Mortensen Director, Regulatory Affairs Maersk Maritime Technology A.P. Moller – Maersk 50 Esplanaden DK 1098 Copenhagen Denmark niels.bjorn.mortensen@maersk.com +45 3363 4482 +45 4045 6850 Contact Information Regulatory Affairs

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