Annex VI – Emission to air from ships

1. The INTERTANKO option to meet stricter Annex VI requirements to reduce emission to air from shipsbyErik.Ranheim@INTERTANKO.comManager Research and ProjectsforInternational Ship-Owners Alliance Of CanadaVancouver 27 September 2007‘

2. Annex VI – Emission to air from ships Annex VI on air emission from ships enforced as from mid 2005 but the world already demands stricter requirements

3. Shipping needs INTERTANKO seeks • Positive reduction of harmful emission • A feasible, realistic and sustainable solution • Long-term, predictable and solid IMO standards • No unilateral nor regional regulations

4. World society demand cleaner ships • The consequences of burning the bottom of the barrel: • SO2 • NOx • VOC • Heavy metals • Soot

5. Effects of emission covered by Annex VI • Sulphur - Acid rain • Affects ecosystems • Nitrogen- Eutrophication: • Loss of biodiversity • VOCs - Ozone • Damages plants and buildings/materials • PM & Ozone, NOx and VOCs • Health problems; respiratory effects, cardiovascular effects premature death

6. SOX - situation DATE SHIP TYPE WHERE max. % S REG. 19.05.2005 All Everywhere 4.5 IMO 19.05.2006 All Baltic Sea 1.5 IMO & EU 11.08.2006 All All EU Ports EU MGO (DMA + DMX) 0.2 MDO (DMB +DMC) 1.5 11.08.2006 Passenger EU 1.5 EU 1.01.2007 All * 24 miles off California shore CARB MGO (DMA grade) -- MDO (DMB grade) 0.5 11.08.2007 All N Sea and English Ch. 1.5 EU 22.11.2007 All No Sea and English Ch. 1.5 IMO 1.01.2010 All All EU ports 0.1 EU 1.01.2010 Inland All EU inland waterways 0.1 EU 1.01.2010 All* 24 miles off California CARB MGO (DMA grade) 0.1 1.01.2012 16 Greek Greek ports 0.1 EU ferries * All auxiliary & diesel-electric main engines on all ships

7. Reducing harmful emissions from ships • Onboard abatement technology • Still undergoing testing • SECAs/NECAs • Air pollution recognises no borders • Type and quality of fuel • The KEY to ultimate control of air emission

8. INTERTANKO Study • No ships =>400 GT:58,859 • HFO consumption: 350 m ts • MDO consumption: 60 m ts • CO2 emission w. HFO: 1,246 m ts • CO2 emission w. HFO: 1,246 m ts • SOx emission: 20.1 m ts

9. The INTERTANKO solution • All ships to burn only distillate fuels, with a global sulphur content cap: • Tier I - a maximum sulphur content of 1.0%, and • Tier II - for new engines - a maximum [0.5%] sulphur content • i.e. one Global Sulphur Emission Control Area • One Single Fuel specification included in Annex VI • Simplified checking and monitoring provisions

10. Switching to distillates for ALL ships • Reduced emission: • SO2, - 60-80%, • PM, - 80-90%, • NOx, - 15% • ……………… • Improved safety • Fewer engine problems • No switching of fuel to meet SECA restrictions • Distillate spills far, far, less serious than HFO spills • Higher bunker price - but also reduced costs: • No need for extra tanks, piping, abatement equipment, etc • Less maintenance, off-hire i.e. lower operation costs • Reduced bunker consumption • Less engine room waste and (no scrubber waste)

11. The alternative to distillates - For a main engine of 20 MW, seawater up to 22,000 t/day needs to be processed (45 t/hr/MW) (supplemented with some 6,500 t/day to lower pH) - Up to 100 kg/day of hazardous sludge (5kg/day/MW) * data supplied by Krystallon

12. Investing in cleaner air • ~$67 bninvestments • at ~100 refineries to provide the ultimate solution? • or • ~ $200 bn investments onboard some ~ 50,000 shipsto provide a piecemeal solution?

13. World CO2 emission, energy use and population - indices Index 6.5 bn 10.6 mn 27.3 bn +42% +48% +40% 4.5 bn 6.6 mn18.3 bn CO2 emission increase stronger than energy and population increase due to relatively stronger increase in coal consumption Source: CO2 emission: US Energy Information Administration Energy use: BP Review Population: UN

14. World CO2 emission

15. CO2 effect of scrubbers The major ion responsible for the alkalinity is the bicarbonate ion. The amount of bicarbonate and other weak bases in seawater buffers the system, thus keeping the pH within a narrow range. Standard seawater has a bicarbonate concentration of 140 mg L-1. Dissolved CO2 and carbonates belong to the buffer system and are all related by the following four equations: Addition of sulphuric acid will shift the chemical equations 1-4 to the left and thereby increasing the partial pressure CO2 in the water. The solubility of CO2 is limited and depends on salinity and temperature. To keep the pH stable, CO2 will be released to the atmosphere. Each molecule of sulphuric acid will be buffered by the release of two molecules of CO2. Environmental Impact Of Seawater Scrubbing To Reduce Atmospheric Ship Emissions Brigitte Behrends, School of Marine Science and Technology, University of Newcastle, Newcastle upon Tyne, NE1 7RU, UK Marc Hufnagl, Forschungszentrum Terramare, Schleusenstr. 1, D-26382 Wilhelmshaven, Germany

16. Switching to distillatesCO2 balance Debit Credit MDOreplacing HFO MDO as fuel: 32 m ts Add. emission from Scrubbers – buffering: 27 m tsrefineries: 47m ts Plus unquantifiable amounts of CO2: - Running scrubbers - Handling of waste from scrubbers - Handling sludge - Less engine maintenance - Less engine spare part placement - Less heating Extra CO2 when switching: 47m tsSaving CO2 when switching: +60 m ts

17. World CO2 emission, energy use and population bn persons m tonnes Source: CO2 emission: US Energy Information Administration Energy use: BP Review Population: UN

18. Bunker price development 2000 - 2007Fujairah

19. Conclusion The world demands clean shipping Proactive and co-operative solutions are needed