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INTERNATIONAL SEMINAR ONTANKER SAFETY, POLLUTION PREVENTION &

SPILL PREPAREDNESS

Dubai6 December 2006

Tomorrow’s TankersPeter M. Swift

Managing Director, INTERTANKO

INTERNATIONAL SEMINAR ONTANKER SAFETY, POLLUTION PREVENTION &

SPILL PREPAREDNESS

Tomorrow’s TankersDevelopments in Regulations:

Including:1. Revisions to MAPOL Annex I2. Revisions to MARPOL Annex II3. Revisions to MARPOL Annex VI – controlling air

pollution

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The importance of ratification

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Ukraine x x x x x x x x x x x x x x x x x x x x x x x x xUnited A rab Emiratesx x x x x x x x x x x x x x x x x x d x x xxx xUnited Kingdo m x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x d d x d d x x x x d x x x x x xUnited R ep. o f T anza x x x x x x x x x x x x x x x xUnited States x x x x x x x x x x x x x x x x x x x x x x x x x x x xUruguay x x x x x x x x x x x x x x x x x x x x xUzbekistan x xVanuatu x x x x x x x x x x x x x x x x x x x x x x x x d x x d x x x x x x x x x xVenezuela x x x x x x x x x x x x x x x x x d x x d x x xViet N am x x x x x x x x x x x x x x x x x x

MARPOL Annex 1Tanker deliveries, demolitions & phase-out

Source:Source:INTERTANKOINTERTANKO

m dwtm dwt

-20-15-10-505

10152025303540

92 94 96 98 00 02 04 06 08

Phase out*

Deliveries

Demolition

Net change

Net change

*1.6 m dwt isyearly added tophase out asconversions

+7%+6%+8%

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Revisions to Annex I

Uncertainty in 2010

1. Ships that will be phased out2. Conversions to double hulls – and

their acceptability

Revisions to Annex II

Some of the implications:• Changes to product categorisations and vessel type carriage requirements, e.g. vegoils in type 2 ships• Revised certificate of Fitness and Procedures & Arrangements Manual to be in place by 1 January 2007• Tank size limitations and greater application of deepwell pumps (Noise pollution concerns?)• Concerns over adequacy of ship availabilities• Compliance with damage stability requirements for any loading condition• Availability of suitable reception facilitiesAND pending ?• IG for cargo tanks on (new) chemical and parcel tankers currently exempted

more information @ www.intertanko.com

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Revisions to Annex II

MARPOL – Annex VI

Control of Air Pollutionfrom Ships

and its Current Revision process

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Air Emissions - Existing Regulations

• MARPOL Annex VI entered into effect in 2005

• Baltic Sea - SECA from May 2006• North Sea - SECA in November 2007 • Europe Sulphur Directive (1999 & Rev)

governs inter alia emissions in port (0.1% S at berth)

• California (CARB) new regulations which take effect in 2007

• Various ports are facing new local regulations on Ship Emissions, which are inhibiting future expansion/development

Air Emissions from Ships

• Covered by Annex VI–Oxides of Nitrogen (NOx) – create Ozone–Sulphur Oxides (SOx) – create acidification–Hydrocarbons (HC) – gas, soot and some particulates–Volatile Organic Compounds (VOC)–Refrigerant Gases

• Not covered (currently) by Annex VI–Carbon Dioxide (CO2) –Carbon Monoxide (CO)

Engine exhaust gases are dependent upon engine type, engine settings and fuel type

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IMO Annex VI revision process

• MEPC 53 (July 2005) – Decided Annex VI be revised

• MEPC 54 (March 2006) – Proposals for revision. Delegated work to BLG Sub-Committee

• BLG 10 (April 2006) – Initial review of proposals and documents (over 30 documents)

• Two correspondence groups (April – October 2006)• Intersessional Meeting (November 13-17 2006) –

discussion of key issues and draft proposals• BLG 11 (April 2007) – finalize draft proposals for revised

Annex VI, the NOx Code and related Guidelines• MEPC 56 (July 2007) & MEPC 57 (March 2008) -

consider and approve(?) the revised texts

Target date for Entry in to Force: 2010

Many proposals for significant amendments to Annex VI

• Lower limits for SOx & NOx emissions• SECAs with lower S cap (1% or 0.5%)• NOx emission limitation on existing

engines, particularly those installed after Jan. 2000

• NECAs – NOx controlled areas• Restriction on CO2 emissions• Restriction on Particulate Matters (PM)

emissions• Restriction on VOC emissions from cargo

oil tanks

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Owners’ Concerns

• Multitude of differing requirements• Additional requirements for multi-fuel usage• Availability of appropriate fuels• Availability & reliability of fuel processing /

emission equipment• Additional costs / possible cost recovery

mechanisms• Onus of responsibility for verification and

compliance

EXISTING SECAs

NOV. 2007

MAY2006

SOURCE: http://maps.google.com/

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Owners’ Concerns

• Multitude of differing requirements• Additional requirements for multi-fuel usage• Availability of appropriate fuels• Availability & reliability of fuel processing /

emission equipment• Additional costs / possible cost recovery

mechanisms• Onus of responsibility for verification and

compliance

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Alternative Approaches

Many including:• Do nothing• Extend SECAs• Global SECA• Establish local SECAs• Establish NECAs• Use technological solutions – catalytic

converters, scrubbers and/or filters• Burn distillates close to shore• Cold ironing• Emissions trading• Switch to global use of distillates

DISTILLATES – Some Advantages

FOR DISCUSSION• reduces all types of air emissions from

ships, including PM• reduces the bunker consumption (by

weight) by 5% to 10%• eliminates the need of retrofitting of

additional bunker storage capacity and associated piping

• eliminates current onboard fuel treatment plants and significantly reduces onboard generated ER waste and exposure of the engines to damaging materials

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DISTILLATES – Some of the Unknowns

FOR DISCUSSION

• future costs if wholesale switchover• timeframe for possible implementation• net environmental impacts – e.g.

implications for additional CO2production

• availability of MDO in different regions• other ?

OTHER Approaches

ITEMS FOR DISCUSSION include:

• Future production of low sulphur fuels & time frame• Future costs & availability of low sulphur HFO/IFOs• Proving of / reliability of SCR and scrubber

technologies• Costs of extra bunker tanks• Costs of manifold modifications / sampling• Costs of additional maintenance• Means of disposing of wash water and scrubbed by-

products• Suitability of blended fuels• Net environmental benefits

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Annex VI Working Group (IMO/BLG)

• Options for further discussion through 2007 (and 2008?):

• Status quo – with possible additional SECAs

• Status quo – with global 4.5% cap lowered in future, and SECAs at 1.0% then lowered further

• Consideration of a switchover to distillates from 2012 with S cap levels to be discussed

• Introduction of a global SECA, initially at 1.0% and a later date at 0.5%(- includes options for use of scrubbers)

THANK YOUwww.intertanko.com

www.shippingfacts.comwww.maritimefoundation.com

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Annex VI

Further information

Regulation 14 - SOx

• The Worldwide Sulphur cap on fuel oil is set at 4.5%.• Sulphur Emission Control areas (SECAs)

– Areas – Baltic, North Sea and English Channel– Sulphur Level of fuel – 1.5% – Or:– Alternatively use an exhaust gas cleaning system– Ship must have cleared all pipe systems and

tanks and be using low sulphur fuel on entry

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Proposed Revisions of Regulation 14 - SOx

• Reduction of SOx emissions– Reduction of the Global Cap – e.g. to 3.00%– Reduction of the SECA Cap – e.g. to 1.00%

or 0.50%• Correction for the reporting and

measurement standard to two decimal places for Sulphur content (Bunker Delivery Note criterion).

Regulation 13 – NOx

• For all Engines (except emergency engines) installed on ships after 1st January 2000 of more than 130 kW must comply to this Regulation.

• The NOx emission is limited to 17 g/kW h for engines operating at 130 rpm but reducing to 9.8 g/kW h for 2000 rpm. Between these revs the limit is designated by equation:

45 * n(-0.2) g/kW h• Existing engines can become a “new”

engine if substantially modified.

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Proposed Revisions of Regulation 13 - NOx

• Tiered approach to further NOx reductions – Tier 2 from date of revisions coming into force -2010, and Tier 3 from 2015

• Lower limit NOx emissions (30 - 40% reduction discussed for first tier – 2010)

• Further NOx emission limitation on all existing engines, particularly those installed after Jan. 2000

• NECAs – NOx emission control areas (Tier 3 levels for these areas?)

New Parameter forAir Pollution Control

• Particulate Matter Emission control• What are these Particulates?

– Sulphates from SOx– Nitrates from NOx– VOC from uncombusted hydrocarbons– Heavy Metals e.g. Vanadium, Nickel,

Aluminium, Sodium, Calcium, Zinc; from Heavy Fuel oil and Lube Oil

– Soot – from the aromatics in heavy fuel oil

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Particulate Matter Regulation and Control Methods

• At present this subject matter has not been fully debated within the working group

• Issues to be confronted:– Size of the Particulate to be regulated – 10

micron or 2.5 micron– Extent of limitation of Particulate emission– Methods for control of Particulate emissions –

e.g. Scrubbers and/or Filters– Storage and Disposal of Particulates– Control and verification of reduced emissions

Current Regulation 18– Fuel Oil Quality

• “Fuel oil shall be blends of hydrocarbons derived from petroleum refining”

• “Fuel oil shall be free from inorganic acid”• “Fuel oil shall not include any added substance

or chemical waste which either:– Jeopardises the safety of ships or adversely affects

the performance of the machinery, or– Is harmful to personnel, or– Contributes overall to additional air pollution”

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Regulation 18 – Fuel Oil Quality

• Bunker Delivery Note (BDN)– Becomes a Statutory document– Must be kept on board for 3 years for inspection and

a copy taken for further examination.– Must contain all data required by appendix V

• Name and IMO number of vessel• Port• Date of Commencement of delivery• Details of fuel oil supplier• Product name, quantity , Density at 15 0C and Sulphur

content % m/m• A declaration that fuel supplied meets Regulation 14 and

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Regulation 18 – Fuel Oil Quality

• Fuel Oil Sampling• A sealed sample meeting the requirements in

associated guidelines has to given to the ship by the bunker supplier

• For each individual BDN a sample has to be taken at the vessel’s bunker receiving manifold. (see procedure in associated guidelines)

• The sample label has to be signed by both the bunker supplier’s representative and the vessel’s Chief Engineer.

• The sample size shall be not less than 400 mls• The sample is not to be used for any commercial

purpose• The sample is to be retained on board for at least 1

year for inspection by PSC as required