Environmentally Acceptable Lubricants for Marine Applications

1. Environmentally Acceptable Lubricants for Marine Applications John Sherman, BASF Corporation Angus Kennedy, VapCor, Inc.Canadian Ferry Operators Association 2010 AGM and Conference September 15th, 2010Halifax, Nova Scotia

2. Presentation Topics • Lubricant Types • Marine Applications • Sources and Environmental Impact of Oil Waste in Oceans • Government Regulations and Programs to Limit Oil Pollution • Environmentally Acceptable Hydraulic Fluids (EAHFs) • Comparison of Environmentally Acceptable Hydraulic Fluids • EPA Vessel General Permit Legislation • Use of EAHFs on Shipboard Hydraulic Applications

3. Lubricant Types Hydraulic fluids are one of the most important lubricants used in the world today. In maintaining industrial and transportation performance, approximately 6 million metric tons of hydraulic fluids are consumed annually worldwide.

4. Lubricant Types The potential for leaks and spills in hydraulic systems is greater than in operation of other lubricant types due to the inherent requirements of hydraulic systems and their applications including: • Hydraulic systems are under pressure; typically 1000 – 5000 psig. • Flexible hoses are frequently a component of the system. • Hydraulic systems may have multiple components requiring many seals and O-rings which may degrade and leak hydraulic fluid. • Hydraulic systems are used in equipment that is mobile or located close to or on bodies of water (oceans, lakes, rivers and waterways).

5. Marine Applications • Cranes • Winches • Bow thrusters • Cargo hatches • Loading ramps • Motion compensators • Subsea and surface blowout preventers • Stern tubes • Controllable pitch propellers

6. Sources and Environmental Impact of Oil Waste in Oceans It is estimated that approximately 700 million gallons of waste oil enters the world’s oceans every year.

7. Sources and Environmental Impact of Oil Waste in Oceans The major source of waste oil entering the world’s oceans every year from marine industrial operations is through routine maintenance practices of ships.

8. Sources and Environmental Impact of Oil Waste in Oceans Toxic effects of oil in contact with ocean or freshwater environments are divided into two categories: • Effects caused by the envelopment or coating of animals or plants with oil. Mostly occurring after large volumes of free oil are released in a relatively small area in a short period of time. • Acute, sub-chronic or chronic effects on the health of animals and plants due to the disruption of their metabolism due to ingestion or absorption of the oil.

9. Government Regulations and Programs to Limit Oil Pollution Government agencies and marine associations have recognized the danger of continued pollution of the world’s oceans and waterways and implemented legislation and protocols to counteract them. • U.S. EPA Clean Water Act 1977 • International Marine Organization regulations • Merchant Shipping Act 1995 • Merchant Shipping Regulations 1998 • European Commission Directive on Ship Source Pollution (pending legislation)

10. Government Regulations and Programs to Limit Oil Pollution International organizations including the International Standards Organization (ISO) and the American Society for Standards and Materials (ASTM) have standards for environmentally acceptable hydraulic fluids. • ASTM D 6046-06 Standard classification of hydraulic fluids for environmental impact • ISO 15380-02 Lubricants, industrial oils and related products (class L) - Family H (Hydraulic systems) – Specifications for categories HETG,HEPG,HEES and HEPR.

11. Government Regulations and Programs to Limit Oil Pollution Many governments have implemented eco-label programs which highlight products including lubricants that demonstrate the required low level of environmental impact. • EU (Eco Label Award) • Germany (Blue Angel) • Nordic countries (White Swan) • France (NF Environment) • Canada (Environmental Choice Program - Eco-Logo) • Japan (Eco-mark)

12. Environmentally Acceptable Hydraulic Fluids (EAHFs) What are environmentally acceptable lubricants ? Environmentally acceptable lubricants may be defined as lubricants that meet a set of requirements designed to result in minimal impact to the environment the lubricant comes in contact with. • Common aspects of eco-label programs and international standards related to defining environmentally acceptable lubricants include: • restrictions of substances and volumes of substances that can be used • specific tests and requirements for biodegradation and bioaccumulation • specific tests and requirements for aquatic toxicity

13. Environmentally Acceptable Hydraulic Fluids (EAHFs) • The major base stock types used for general industrial hydraulic fluids are: • Mineral Oil Base Stocks • Natural Sourced Ester Base Stocks • Polyalphaolefins (PAO) Base Stocks • Synthetic Esters (PE) Base Stocks • Polyalkylene Glycols (PAGs) Base Stocks

14. Environmentally Acceptable Hydraulic Fluids (EAHFs) Hydraulic fluids that meet a minimum of one standard or eco-label program set of requirements for environmentally acceptability include: • Natural or bio-sourced hydraulic fluid • Vegetable oil based (typically soybean or rapeseed oil) Synthetic hydraulic fluids • Ester (diesters or more typically polyol esters) based. • Polyalkylene glycol or polyglycol (water soluble types) based. • Water glycol (mixture of polyglycol, diethylene glycol and water) based.

15. Comparison of Environmentally Acceptable Hydraulic Fluids • Base stocks for natural ester or bio-sourced • hydraulic fluid include: • canola • soybean • rapeseed • palm • sunflower

16. Comparison of Environmentally Acceptable Hydraulic Fluids • Synthetic ester based hydraulic fluid eliminates • two of the major drawbacks of vegetable oil based • hydraulic fluid: • poor low temperature properties • poor oxidative stability

17. Comparison of Environmentally Acceptable Hydraulic Fluids • Polyglycols are synthetic polymers: • Can be made water soluble or water insoluble. They are the only water soluble base stock in the world. • Are available in a wide range of viscosities from 10 cSt at 40°C to 100,000 cSt at 40°C.

18. Comparison of Environmentally Acceptable Hydraulic Fluids Water glycol hydraulic fluids are the most common fire- resistant hydraulic fluid used in the world. They are biodegradable and have low aquatic toxicity. Additives – corrosion and wear prevention PAG thickener - maintain viscosity Diethylene glycol - low pour point Water - fire prevention

19. Comparison of Environmentally Acceptable Hydraulic Fluids Property comparison of environmentally acceptable and mineral oil hydraulic fluids Note: WS means water soluble

20. Comparison of Environmentally Acceptable Hydraulic Fluids Property comparison of environmentally acceptable and mineral oil hydraulic fluids Note: WS means water soluble

21. Comparison of stability properties of environmentally acceptable and mineral oil hydraulic fluids Comparison of Environmentally Acceptable Hydraulic Fluids Note: WS means water soluble

22. Comparison of Environmentally Acceptable Hydraulic Fluids Spill property comparison of environmentally acceptable and mineral oil hydraulic fluids Note: WS means water soluble

23. Comparison of Environmentally Acceptable Hydraulic Fluids Demonstration of blending commercial vegetable oil based hydraulic fluid in water to a concentration of 2.5% Demonstration of blending commercial vegetable oil based environmentally acceptable hydraulic fluid in water to a concentration of 2.5%

24. Demonstration of blending commercial vegetable oil based environmentally acceptable hydraulic fluid in water to a concentration of 2.5% Comparison of Environmentally Acceptable Hydraulic Fluids Before addition After addition Before fluid addition After fluid addition Use in Europe Note: WS means water soluble

25. Comparison of Environmentally Acceptable Hydraulic Fluids Demonstration of blending commercial polyglycol (Plurasafe H2O-K) based environmentally acceptable hydraulic fluid in water to a concentration of 2.5%

26. Demonstration of blending commercial polyglycol based environmentally acceptable hydraulic fluid in water to a concentration of 2.5% Comparison of Environmentally Acceptable Hydraulic Fluids Before addition After addition After fluid addition Before fluid addition Use in Europe Note: WS means water soluble

27. Comparison of environmental impact properties of environmentally acceptable and mineral oil hydraulic fluids Comparison of Environmentally Acceptable Hydraulic Fluids Note: WS means water soluble

28. EPA Vessel General Permit Legislation On December 18, 2008 the U.S. Environmental Protection Agency (EPA) signed the final Vessel General Permit (VGP) legislation, which regulates 26 types of discharges incidental to the normal operation of the vessel operating in a capacity as a means of transportation. • Commercial vessels subject to the VGP • are: • Vessels greater than 79 feet in length. • Discharges more than 8 cubic yards (2113 gal.) of ballast water. • Tonnage of 300 or more gross tons. • Operation in California waters. The terms of the VGP went into effect on February 6, 2009.

29. EPA Vessel General Permit Legislation Under the Clean Water Act, all discharges of pollutants into U.S. waters are prohibited , unless authorized by a duly-issued permit or exemption. The EPA recognized that it could not impose numerical effluent limits, as it does with land-based discharges, so instead identified effluent limits as discharge levels achieved when a vessel carries out certain “ Best Management Practices” (BMPs) with regard to each discharge. EPA estimates 61,000 U.S. flag and 8,000 Foreign flag vessels were subject to these permitting requirements.

30. EPA Vessel General Permit Legislation One of the discharges outlined (oil to sea interface) under the VGP is defined as: Controllable Pitch Propeller and Thruster Hydraulic Fluid and other Oil to Sea Interfaces including: • Lubrication discharges from Paddle Wheel Propulsion • Stern Tubes • Thruster Bearings and Stabilizers • Rudder Bearings • Azimuth Thrusters • Propulsion Pod Lubrication • Wire Rope and Mechanical Equipment Subject to Immersion

31. EPA Vessel General Permit Legislation Under the limits and related requirements section of the VGP for the effluent stream (oil to sea interface), it states: “EPA has determined that discharges of lubricants should not occur if vessels are properly maintained. Vessel operators should employee necessary control measures such as regular maintenance and inspections to insure that leaks do not occur.Through all oils have the potential to result in significant impact,owner/operators should use an environmentally preferable lubricant, including vegetable oil, synthetic ester or polyalkylene glycol as a base for these applications when feasible.Use of an environmentally preferable lubricant does not authorize the discharge of any lubricant in a quantity that may be harmful as defined in 40 CFR Part 110 or cause a visible sheen as these oils still cause many undesirable environmental impacts, though these impacts are potentially less severe than those caused from petroleum based oils.”

32. EPA Vessel General Permit Legislation Vessel General Permit (VGP) legislation provided a two year moratorium for permit requirements ( February, 2011) on commercial fishing vessels of any size and other non recreational vessels less than 79 feet long. Recently U.S. legislators approved an extension of the moratorium that permit requirements for fishing vessels as well as other craft < 79 ft in length , until December 18th 2013 . This was done to afford the U.S. EPA more time to study the information available on discharges from ships.

33. Use of EAHFs on Shipboard Hydraulic Applications • High Performance Water glycolhydraulic fluidis being successfully used in ship hydraulic applications including: • cargo hatches • winches • loading ramps

34. Use of EAHFs on Shipboard Lubricant Applications • Polyglycolhydraulic fluidsare being evaluated for use in ship marine applications including: • bow thrusters • controllable pitch propellers • stern tube fluids • electric winches • deck cranes

35. BASF at a glance BASF – The Chemical Company • The world’s leading chemical company • Offers intelligent system solutionsand high-value productsfor almost all industries

36. BASF at a glance BASF – The Chemical Company Products for marine applications include: • Plurasafe H2O-K High Performance Polyglycol hydraulic fluid also supplied as HydraFlow ECO hydraulic fluid by VapCor Inc. • Plurasafe 46 5K High Performance Water Glycol Hydraulic Fluid also supplied as HydraFlow Plus hydraulic fluidby VapCor Inc.

37. John Sherman Technical Manager BASF Corporation 1609 Biddle Avenue Wyandotte, MI 48192 Telephone: 734-324-6412 Mobile: 734-476-4239 E-mail: john.sherman@basf.com www2.basf.us/functionalfluids/ PlurasafeH2OK Thank you! BASF Synthetic Lubricants Group is a supplier of : • Environmentally Acceptable Hydraulic Fluids • Fire-Resistant Hydraulic Fluids • High Performance Synthetic Lubricants

38. Thank you! VapCorInc. St. Catharines, Ontario & Miami , Florida Angus P. Kennedy President WWW.VAPCOR.COM Tel: 905-346-2638, Toll Free: 866-642-1311, FAX: 905-682-3300, Cell: 905-328-8848 Florida: 786-683-7106