Green Shipping - Regulatory and policy aspects of LNG ... Shipping - Regulatory and policy aspects of LNG sector development Latest developments: •Green fuel solutions •LNG development

Lasse Karlsen, Technical Director Norwegian Maritime Authority

2018.02.09 MOVING TOWARDS GREEN SHIPPING

Green Shipping - Regulatory and policy aspects of

LNG sector development

1

Green Shipping - Regulatory and policy aspects of LNG sector development

Latest developments:

• Green fuel solutions

• LNG development

• Regulatory fundament

• Reducing emissions

• Future requirements

• Zero emission shipping

2018.02.09 MOVING TOWARDS GREEN SHIPPING 2

Norwegian Maritime Authority

Parent bodies:

Ministry of Trade, Industry and Fisheries (main)

Ministry of Climate and Environment



Safeguard

life,

health,

environment

and

property

THE MISSION OF NORWEGIAN MARITIME AUTHORITY

4


Safeguard

life,

health,

environment

and property

HOW TO MANAGE OUR MISSION

APPROVE DEVELOPMENT OF GREEN OF SHIPPING

Battery fishing boat 2015

5

2018.02.09

GREEN SHIPPING

WASTE

WATER

NOISE

BALLAST WATER

BLIGE

HULL DESIGN

ANTI FOULING

PROPELLER

FUELS

NOx REDUCTION

SCRUBBER

EXHAUST

GHG

NAVIGATIONGreen Shipping

MOVING TOWARDS GREEN SHIPPING 6


• Gothenburg Protocol

• MARPOL Annex VI

– Sulphur < 0.10% within ECAs from 1 January 2015

– Sulphur < 0.50% from 1 January 2020 in all other areas/high seas

– NOx

» Tier II from 2011 Global

» Nox Tier III from 2016 in NECAs

International agreements ++

MEPC 71Approved NOx Tier III for European ECAs from 2021

7

China’s local ECA’s

Norway’s local NOX –tax area


Green Shipping: Many compliant* fuel options for the ECAs and 2020

• HFO w/scrubbers and w/SCR or EGR

• Low sulphur marine diesel w/SCR or EGR

• Low sulphur diesel oil w/SCR - EGR

• Ammonia gas dual fuel?

• LNG/gas single/dual fuel

• Methanol dual fuel

• Ethane dual fuel

• Propane (LPG) dual fuel

• HyTan - H2+LNG/gas single/dual fuel

• Electrical propulsion – battery only

• Biodiesel, GTL/DME or LBG (Biogas)

• LH2 or CH2 with fuel cells and battery

+ COLD IRONING AND CHARGING

* Existing international agreements

8


Source: DNVGL

9

Political decision on LNG in Norway


The world’s first low NOx-, zero SO2-and Particle and low CO2 emission ferry!

MS Glutra, from 2000

10

Emission governance by tax on NOx in Norway

2018.02.09

– Emission reduction requirements (Gothenburg Protocol / MARPOL Annex VI)

– Emission tax on NOx ~ NOK 21.94 per kg, or;

– Alternatively:

• Owners can join the private NOx fund and only pay a fee of NOK 4.00 per kg and be

able to re-allocate funds when investing in low NOx emission technology.


MOVING TOWARDS GREEN SHIPPING2018.02.09 12

GHG – WTP Life Cycle assessments – Marine fuels

New HPDF engines

HFO LS-MGO LNG (Qatar) LNG (Qatar)

• WTT 9.79 14.4 9.68 9.98

– Refinery part 5.79 10.4 - -

• TTP 77.7 74.4 69.5 ~56.1

• Total WTP 87.49* 88.8 > 79.18 >> 66.08

gCO2eq/Mjf

- 10% ~ 25%Source: DNVGL

*Energy for scrubbing not included


Methane slip – new technology reduces Methane slip

• Further ongoing development

• LPSI engines ~ 2,5% Methane slip

• LPDF engines ~ 3.0 – 3,5 % Methane slip

• HPDF engines ~ Zero Methane slip


Emission experience – 2010 results

0

0.05

0.1

0.15

0.2

0.25

MDO - 1% S LNG

g /

kWh

Particles

NEW ~ 20% GHG*

0

100

200

300

400

500

600

MDO - 1% S LNG

g /

kWh

CO2 ~ 26%

0

2

4

6

8

10

12

MDO - 1% S LNG

g /

kWh

NOx

0

1

2

3

4

5

6

MDO - 1% S LNG

g /k

Wh

SOx


~ Zero~ Zero

- 90-98 %

15

*Calculation by ICCT – International Council on Clean Transportation


FredrikstadSkangasTerminal 6 500 m3

Availability of LNG:

21 ports in Norway

The preferred maritime administration

MELKØYA,

HAMMERFEST

LNG export plant

SAGA

FJORDBASE,

Florø 500 M3Trailers very common~45 LNG semitrailers doing bunkering in Norway

16

Safety LNG bunkering – 17 years in Norway ~ 80000 oper.

2018.02.09

One smaller personal injury

• Hose disconnection accident after bunkering. Frost bite/cold burn on hand and leg. 1 week sick leave.

✓Change of procedure and training.

Seven minor technical ship accidents

• One leak of 120 kg of LNG in bunker-connector due to excessive stress caused by rapid heeling. No harm to persons or ship. Ant heeling turned off due to program updating

✓Change of gas detection, procedures and training.

• Three mooring failures - ship moved from berth. LNG hose under stress but did not break.

✓Change of procedure and training

• Three overfilling's while alternating between bottom filling and top spray – minor amount og LNG release thru vent mast

✓Instrumentation and design failures corrected


SHIP BUNKER OPTIONS

MOVING TOWARDS GREEN SHIPPING2018.02.09

Truck to Ship – very flexible2-2,5” hose

Tank farm to ship with rigid arm or hoses 3 - 6” High capacity

Ship to ship for larger vessels3-6” rigid or hose (s)

18

http://www.google.no/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjug8-t__PTAhWML1AKHd0xAS0QjRwIBw&url=http://hhpinsight.com/marine/2014/12/skangass-to-bunker-lng-for-neot/&psig=AFQjCNEaMYB_ynrJ_HPK-B3dv4MCsoDwag&ust=1495009722846725

http://www.google.no/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwju15_o__PTAhVQUlAKHQQKCuoQjRwIBw&url=http://www.seatrade-maritime.com/news/asia/high-cost-of-retrofit-slows-lng-bunkering-uptake.html&psig=AFQjCNFUvDZB83I3SvJif7fGNUcPddSIwQ&ust=1495009820337940

http://www.google.no/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjg-sbKgPTTAhWMY1AKHVO6BxkQjRwIBw&url=http://cryonorm.com/lng-truck-loading-and-bunkering&psig=AFQjCNFh8RNb1uOqa07o0Iw6ANaLuBmJrw&ust=1495009889020984

TOTE container ships –

Multiple trucks

Jacksonville US


Truck bunker operation in JapanSAKIGAKE Tug, port of Yokohama

19

http://www.google.no/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjNl47imfTTAhVFnRoKHVI1BjEQjRwIBw&url=http://www.marinelog.com/index.php?option%3Dcom_k2%26view%3Ditem%26id%3D10366:tote-carries-out-first-jacksonville-lng-bunkering%26Itemid%3D230&psig=AFQjCNECuOZCQT71ECReECwgiPjykSxoIg&ust=1495016559904799

2018.02.09

IMO International regulations – the IGF Code

• 2004 Proposal from Norway to develop Gas Code

• In force 1 January 2017

International Code of Safety for Ships Using Gases or Other Low-Flashpoint Fuels

• Under development✓ Fuel cells✓ Methanol✓ Low flash diesel


2018.02.09

• Clean fuel

– Can meet the IMO tier III level on NOx and the SOx requirements in ECAs

(Even new regulations on black carbon – GHG issue)

• Low carbon and GHG fuel (lower than natural pipeline gas)

– Reduces GHG compared to HFO/MGO (H₂S+CO₂ removed, higher H2, no black carbon) (~ 46%)

• Quantity

– The predicted amount of natural gas is huge (may last for several hundred years)

• Proven, economical, available and regulated

– 55 years in large scale, 17 years in small scale

– LNG has the potential to be economically competitive compared to heavy fuel oil (HFO)

– Many liquefaction plant and storage and regasification terminals ww

LNG – one of the low carbon fuels of the future



Owner: Wallenius / NYK 4000 cars – 181 meters

Newbuildings under Norwegian regulations and flag in 2016

First LNG-powered car carriers – 2 ships First methanol-powered cargo ships – 4 ships of 50,000 DWT

Zero Methane slip engines

22


Zero emission – battery only

Battery hybrid – partly zero emission

Towards zero emission

shipping

World’s first battery hybrid fishing boat

23


Energy consumption in kWh / trip Tons of CO2/year

2015 First battery driven ferry in Norway

Zero emission - electric propulsion and battery

24

2018.02.09

Batteries in ships - an interesting trend

Source:Maritime Battery Forum


Viking Energy – LNG PSV with battery

• Peak shaving, start and stop function and as spinning reserve

• Data from the first year shows the following fuel savings:

– 3 % peak shaving during transit

– 20 % start/stop in harbour / standby

– 32 % in DP operation

– 15 - 16 % overall savings

– In addition lower running hours and maintenance cost, approx. 500-600 000 NOK/year

Source: Eidesvik


Grieg Shipping – Hybrid Crane bulk carrier

• A small battery pack installed for peak shaving during crane operations.

• Reasonably low cost of investment due to small battery pack, only 67 kWh needed.

• Following reduction in emission:

– CO2 equivalent to 100 cars

– NOx equivalent to 5000 cars

– In addition, reduction in running hours

Source: Grenland Energy


Fuels for the future 2020 - 2050

• The fuel mix of the future will be more complex than today. Fuel could differ to each vessel and its trade area.

• The Norwegian Maritime Authority cannot predict

the future fuel, but we aim to be a partner that finds good and safe solutions together with the industry.

• A new IMO strategy on GHG may change the situation

as significant CO₂ reductions may be mandatory.

2018.02.09

FUELS USED IN IMO ISWG-GHG 2/2/4 – (22.9.17)

Input to GHG reduction solutions

(Submitted by Norway) (Low carbon fuels)

• LPG

• LNG

• Biodiesel

• LBG (liquid biogas)


Next agreement: Zero emission shipping => No CO₂ in 2050?


COP21 - IMO and reduction of GHG emissions from shipping

• 2003 A.963/23(23) Urged MEPC to identify and develop the mechanisms needed to limit or reduce GHG emissions from shipping.

• 2011 MEPC.203(62) Mandatory technical (EEDI) and operational (SEEMP) measures for energy efficiency.

• 2013 MEPC.229(65) Promotion of technical co-operation and transfer of technology for improvement of energy efficiency of ships.

• 2016 MEPC.278(70) Data collection system for fuel oil consumption of ships – mandatory recording & reporting for ships> 5000 GT.

– Start of development of a comprehensive IMO strategy on reduction of GHG emissions.


INITIAL IMO STRATEGY ON REDUCTION OF GHG EMISSIONS FROM SHIPS

VISION:

[Sustainable development in line with UNFCCC and Paris Agreement (COP21)]

[Reducing GHG emissions from international shipping to/towards zero as soon as possible/by 2050]

Ambitions – possible approaches:

• Annual total GHG to be kept below a defined level in 2050 [ 2008 level or -70% of and pursuing 100%]

• GHG em. to peak and then decline [rapid declining from 2025, full decarbonisation 2050]

• Carbon intensity of international shipping to decline [reduce CO₂ pr. tonne-km by 50%/90% by 2050 based on 2008 level][ improve energy efficiency CO₂ pr. tonne-km by 40% by 2030 based on 2008 level]


CO₂ Reduction potential – ISWG-GHG 2/2/4 from NORWAY

2018.02.09

Dated 22.09.2017

Sails and H₂ ?

Biofuels*

*Renewables


2018.02.09

Fig 2. CO₂ emission reduction potential from individual measures, classified in 5 main categories of measures.Bauman et al, 2017

- Cost efficiency will depend on trade and trading area


Hydrogen as fuel

• Increased interest in using H₂ as fuel.

• A number of projects looking into hydrogen solutions!

• Hydrogen

– H₂ differs from natural gas; higher explosion potential, lower ignition energy, lower density and lower liquid temperature

– There are no fuel systems that are adopted for civil marine use

– Every aspect of the use of H₂ on board needs to be assessed in order to ensure that the vessel is as safe as a conventional vessel

– No prescriptive requirements



Source: Norwegian Roads administration

CRYOGEN or COMPRESSED HYDROGEN (LH2/CH2) AND FUEL CELLS

CHARGING BATTERIES

New car ferries under development in Norway

35

ETO: 2021


30 M CH2 PAXCAT – ETO: 2021

Source: Brødrene Aa

36


Zero Emission Cruisers – a safety and logistics challenge

H2 fuel cellsand batteries

Estimated to be ready for operation in 2021

37

THE SHIP INTELLIGENCE ERA – SHIPPING 6.0

2018.02.09

Illustration: DNVGL / RR / UIP - Project



Eco-efficient technology options – Shipping 6.0*

Advanced digital assistance and control of shipping

– New digital navigation equipment and systems

– Better integration of all navigation information

– New non-fossil propulsion systems

– Automatic anti-collision systems

– Cyber Internet and full connectivity – BIG data, IoT

– Real-time data collection and diagnosis

– Automated docking and sail away

– Shore-based control and operation

– Navigation by computers – autonomous ships

* By Lasse Karlsen, Norwegian Maritime Authority

• STATUS IN NORWAY:

- World’s first test area for autonomous ships

- World’s first autonomous ship under design


The Fjord of Trondheim


Nikola Tesla demonstrated remoteoperation of model vessel in 1898

On 13 June 2017, IMO decided to do a scoping exercise to prepare for navigation of autonomous ships

119 YEARS SINCE NIKOLA TESLA PRESENTED HIS REMOTE-CONTROLLED MODEL VESSEL

41


Wärtsila


75 M, 120 TEUBATTERY ONLYETO: 2018 / 2020

Tesla of the Seas! Ref. The Wall Street Journal

(Remote operation : 15-18% energy reduction)

43

General regelasjon in SOLAS• SOLAS Ch.1 Reg. 4b

– Vessels with new and novel design may be given exemptions from: • Reg. II-1: Construction, hull, stability, machinery etc.,

• Reg. II-2: on fire protection etc.,

• Reg. III: LSA.,

• Reg. IV: Communication

• Reg. V: Navigation (Ch V. Reg 3.2)

• SOLAS Ch.1 Reg.5a

– Vessels shall be allowed to use alternatives to prescriptive solutions

• Basic requirement:

– Safety shall be acceptable to the administration(s) and provide the same or better level of safety compared with prescriptive regulations.


2018.02.09

Approval of novel design, new technology and alternatives

Required reading for innovators:

MSC.1/Circ. 1455: Guidelines for the approval of

alternatives and equivalents

as provided for in various IMO

instruments


The future: Greener Shipping!

2018.02.09

Owners are invited to build Green fuelled ships to Norwegian flag and regulations!


2018.02.09

Thanks for the attention!


Documents

Green Shipping - Regulatory and policy aspects of LNG ... Shipping - Regulatory and policy aspects of LNG sector development Latest developments: •Green fuel solutions •LNG development