Ship Efficiency: The Insight Issue #06

ISSUE 06. 2015

TECHNOLOGY ADAPTATIONS FOR ARCTIC SHIPPING pg 09

ENVIRONMENTAL MANAGEMENT: A STRUCTURED ROUTE AHEAD? pg 13

BALLAST WATER MANAGEMENT: START PLANNING NOW pg 23

The Enviro-Ship Issue Brought To You With

Scrubbers

SPECIAL SUPPLEMENT

USING BIG DATA TO ADDRESS BIG ISSUES pg 28

CONTENTS Arctic Adaptation Environmental Management

13

News Round-Up

2

Who’s Doing What?

6

Breaking Boundaries Feature Focus

• Arctic Adaptation • Environmental Management: A Structured Route Ahead?

Guest Feature

• Staying Green From Start To Finish • No Distractions From LiquefAction

Staying Green From Start To Finish 15

39

13

15 30

• News In Brief 17 • Green Light For Wastewater System Approval 18 • Waste Fuel Recovery Is Only The Beginning 18 • Air Lubrication Breaks Out Of Development Bubble 19 • Port Of Bergen Goes Green With Shore Power 20

Strategies

News In Brief One-Stop Ballast Water Treatment Shop Start Planning Now ClassNK PEERLESS

Electronics & Software • News In Brief • Using Big Data To Address Big Issues • The EU MRV: Insights From MEPC68

on LinkedIn

9

Environmental Technology

• • • •

JOIN US

11

FOLLOW US

@fathommaritime

21 22 23 25

27 28 29

9

Fuels & Emissions

• News In Brief • Power2Change For Future Fuels • Average Hull Roughness Prediction Methodology Re-evaluated • Fuel Quality-Prevention Is Better And Cheaper Than The Cure

Ship Design

• News In Brief • Response To ICS’ Claims That Worsening Ship Efficiency Findings Are Fanciful • Bulk Carrier Designs Steam Ahead, Efficiently • New Tanker Designs To Reduce Ballast

Ship & Bunker

32 33 34 35

36 37 38 38

• Tricks Of The Bunker Trade • Bunker Price History

39 41

The Social Scene

42

The Last Word

• Sink Or Sail? Fuel Efficiency Solutions In An Era Of Cheap Oil

Marine Scrubbers: The Supplement

• Marine Scrubber News • Who’s Doing what • What Is The Impact Of Scrubbers On Ship Stability?

• Effective Planning, Partnership & Future Proofing To Ensure Compliance • The Scrubber Market: Reflection On Uptake & Growth • Scrubbing Made Simple • Are Smaller Scrubbers Driving Market Uptake?

• The Impact Of Changing Climate On Scrubber Choices

43

45 47 49 50 51 53 53 55

EDITOR’S LETTER

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

A Welcome From The Editor-In-Chief This year marks the 50th Anniversary of Nor-Shipping, Northern Europe’s leading maritime event week.

Editor-in-Chief: Catherine Austin catherine@fathomshipping.com Publications Editor: Isabelle Rojon isabelle@fathomshipping.com Publications Assistant: Fiona Macdonald fiona@fathomshipping.com Artwork and Design: Benjamin Watkins design@fathomshipping.com Advertising and Sales: Kate Hallet kate@fathomshipping.com

1

Expert Contributors: Martyn Lasek, Ship and Bunker editor@shipandbunker.com

Published by:

fathom

marine | energy | environment

27 Sheet Street, Windsor, SL4 1BN, UK. Tel: +44 (0)1753 853791 Email: editor@fathomshipping.com Twitter: @fathommaritime

As the industry gathers once again for this biennial event, technical, operational and regulatory issues remain on top of the industry agenda. When visiting Nor-Shipping it is hard to miss the increasing presence of technological solutions that can increase ship efficiency, streamline operations, and lessen the environmental impact of shipping operations. A sign of the times in the industry.

Amongst the many uncertainties influencing the decisions facing the shipping community, technological innovation is prospering. The reality is that there are some real business advantages that can be gained by improving the efficiency and environmental performance of a fleet, and taking the decision to act upon ship efficiency and environmental impact is a smart one. Within this issue of Ship Efficiency: The Insight magazine there is a wealth of information that can inform efficiency and environmental strategies, from the boardroom to the engine room.

We are delighted to bring this magazine issue to you in association with ClassNK, a classification society that has a long standing history in supporting the maritime industry in safeguarding the environment. They remain at the forefront of research and development into new solutions, investing in a safer, more efficient and greener industry.

A Welcome From ClassNK It is a pleasure for ClassNK to be included in this edition of Ship Efficiency: The Insight Magazine.

We have taken this opportunity to introduce some of what ClassNK is doing to support the world’s shipyards, designers, owners, and operators. Over the course of this magazine you will find not only undertakings that reflect our mission to ensure the safety of life and property at sea and protect the marine environment, but also solutions that address a variety of other issues affecting the industry.

These articles cover a diverse selection of our various activities, from the development of innovative technologies such as ClassNK CMAXS for equipment monitoring and the ship recycling management solution PrimeShip-GREEN/SRM, to our work with industry and academic partners to tackle the devastating effects of cargo liquefaction. An interview with our Representative Director and Executive Vice President Yasushi Nakamura also details the logic behind our joint R&D efforts with the industry and the development of the ballast water management system retrofit solution ClassNK-PEERLESS. We hope that through these articles you can get an understanding of our activities here at ClassNK.

Website: fathommaritimeintelligence.com Noboru Ueda Chairman and President of ClassNK ©2015 Fathom Eco-Efficiency Consultants Limited. All rights reserved. No part of this magazine can be reproduced, or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise without the written consent of Fathom Eco-Efficiency Consultants Limited. Applications for written permission should be sent to the editor-in-chief via editor@fathomshipping.com.

Any views or opinions expressed do not necessarily represent the views of Fathom Eco-Efficiency Consultants Limited or its affiliates. Whilst every effort has been made to ensure the accuracy and quality of the information contained in this publication at the time of going to press, Fathom Eco-Efficiency Consultants Limited assume no responsibility as to any inaccuracies that occur or their consequences and to the extent of the law, shall not be liable for any errors or omissions or any loss, damage or expenses incurred by reliance on information or any statement contained in this publication.

www.fathommaritimeintelligence.com

NEWS ROUND-UP

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

NEWS ROUND UP “GREEN SHIP OF THE YEAR” AWARDED TO HSHI CONTAINER SHIP Hyundai Samho Heavy Industries (HSHI) has announced that their container ship, the UASC Umm Qasr, has been awarded “Green Ship of the Year” by the Maritime & Port Authority of Singapore (MPA).

The Green Ship of the Year Award recognises energy efficiency in ship designs for reduced fuel consumption and emissions. Energy efficiency performance determines the final award winner.

The UASC Umm Qasr container ship, constructed by HSHI, a shipbuilding affiliate of Hyundai Heavy Industries (HHI) and chartered to Dubai-based United Arab Shipping Company (UASC), reduces fuel consumption, noise, vibrations and carbon emissions. The electronicallycontrolled main engine system alters fuel consumption automatically according to sailing speed and sea conditions.

The container ship also features a ballast water management system and Alternative Maritime Power (AMP) system that facilitates use of shore-side electric power to reduce emissions while at berth.

Over the last few years, HSHI has been focusing on constructing eco-friendly ships to both reduce fuel consumption and emissions and to meet the increasing demands from global shipping companies.

NEW PROPELLER ATTACHMENT PROMISES 2.5% BUNKER SAVINGS South Korea’s Hyundai Heavy Industries (HHI) have reported that their new HiFIN propeller device can reduce bunker consumption by up to 2.5% compared with the same type of ships without the attachment.

To achieve the savings, HHI says the HiFIN is attached at the hub of the propeller and works by generating countering swirls that offset the swirls generated by the propeller, thus improving propulsion efficiency.

Savings for a typical 8,600 TEU container ship would translate to about $750,000 per year, or $19 million over the 25 year estimated lifetime of the ship, according to HHI. The performance claim follows a yearlong trial of the device installed on a 162,000m3 capacity liquified natural gas (LNG) carrier ordered from Maran Gas.

BANKS SAY SHIP EFFICIENCY DATA IS DETERMINING FACTOR FOR FINANCE Ships that are more eco-efficient are more likely to be chartered, have higher asset values and longer lifespans under the emerging two -tier market, according to surveys carried out by Carbon War Room.

The not-for-profit organisation says that investors are increasingly using efficiency data to ascertain which ships have the highest returns.

Banks such as HSH Nordbank and KfW IPEX-Bank are recommending energysaving retrofits to ships as they are using efficiency data as a determining factor in financing and investment opportunities.

The surveys that Carbon War Room conducted with the two aforementioned banks and others revealed that the energy efficiency of ships, categorised by efficiency rankings, such as the A to G Greenhouse Gas (GHG) Emissions Rating developed by Rightship and C a r b o n Wa r R o o m a s h o s t e d o n www.shippingefficiency.org, have a high influence on the risk and return assessment. The surveys also revealed that ships with lower efficiency rankings are more likely to represent a higher-risk

investment whereas those ships with higher efficiency rankings demand a premium price at newbuild stage and are more likely to be chartered and maintain asset value. According to Rightship, the more efficient ships in an ‘A’ category may have a lifespan of up to eight years longer than a lower efficiency rating ship in a ‘G’ category.

This shift and development of a new two-tier market has led to those ships with higher efficiency ratings acquiring ship financing more easily.

KfW IPEX-Bank also revealed last year that efficient container ships of comparable capacity consume 30% less bunker fuel than inefficient ships at the same operating profile.

HSH Nordbank currently use the A to G GHG Emission Rating as a way of analysing the advantages of retrofitting ships for efficiency and for determining how poor efficiency can influence the likelihood of additional risks.

KfW IPEX-Bank state that they have seen a trend towards a two-tier market where higher efficiency rated ships show

www.fathommaritimeintelligence.com

enhanced marketability and a higher revenue potential for the ship owner.

Using efficiency data based on the Energy Efficiency Design Index (EEDI) to correlate energy efficiency and loan risk, they have revealed that there is a strong correlation between efficiency and loan risk and that ships with a higher energy-efficiency rating present a more favourable risk profile for financers.

Banks already have a subst antial influence on a ship owner’s ability to build, buy, upgrade and maintain its fleet and operations. This means that banks are expected to increasingly affect the way the shipping industry develops and the way ships are designed and built for maximum efficiency.

2

NEWS ROUND-UP

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

MARINE SOLAR POWER SOLUTION RECEIVES ACCEPTANCE

ABB UNVEILS NEW AZIPOD THRUSTER - AZIPOD D

Eco Marine Power (EMP) has received acceptance from ClassNK for its Aquarius Marine Solar Power solution as installed on classed ships.

The acceptance of this system is a major step forward for EMP and brings to the shipping market a renewable energy solution that can be integrated with other systems onboard ships.

Power from the Aquarius Marine Solar Power solution can be used for DC or AC loads (via an inverter) and can also be used to provide a reliable source of back-up power which, unlike standard battery-back up systems, can be recharged via the marine solar panel array.

Each marine solar power solution from EMP incorporates the Aquarius MAS (Management and Automation System). This compact marine computer monitors the performance of the solar power array(s) and battery pack plus logs data, switches equipment on/off, calculates ship emissions, records fuel consumption and displays system alarms. In addition, the Aquarius MAS can monitor system performance and alarms from a wide variety of other equipment and sensors installed on ships.

An Aquarius Marine Solar Power or Aquarius MAS + Solar package is suitable for newbuilding projects and can also be retrofitted to existing ships.

ABB has unveiled the newest member of the ABB Azipod electric propulsion family – Azipod D. This new Azipod thruster family member provides designers and ship builders with increased design flexibility in order to accommodate a wide range of hull shapes and propeller sizes, as well as simplicity of installation of the propulsion units.

Benefits of the Azipod D propulsion system also include superior manoeuvrability, competitive investment cost, ease of service and maintenance, and a significant performance increase compared to mechanical thrusters.

The electric ABB Azipod propulsion enables enables ship owners and operators to reap higher profitability of their ships by lowering maintenance costs and cutting fuel consumption.

Gearless design means that there are less critical components that must be maintained or that can malfunction. Azipod D requires less servicing due to the fact that there are few wearing prime components. This also results in a 30% reduced lifetime cost compared to its predecessor Azipod C. Also the Azipod D requires up to 25% less installed power. This is partly due to the fact that the new hybrid cooling, one of the most innovative features of Azipod D, increases the performance of the electric motor by up to 45%.

The company has launched Azipod D into a growing market for electric propulsion. According to Heikki Soljama, Group Senior Vice President Managing Director, Global Head of ABB Marine and Ports Business, in 2014 approximately 1,800 ships were equipped with azipod thruster technology, representing 2% of the fleet and 11% of the order book.

3

DAMEN JOINS WORLD OCEAN COUNCIL Damen Shipyards Group has become the latest member of the World Ocean Council (WOC) and is also the first European shipbuilder to join this international business leadership alliance that focusses on “Corporate Ocean Responsibility”.

The WOC brings together the diverse ocean business community to collaborate on stewardship of the seas. This unique coalition is working to improve ocean science in support of safe and sustainable operations, more effectively engage in ocean policy and planning, and develop science-based solutions to cross-cutting environmental challenges and educate the public and stakeholders about the role of responsible companies in addressing environmental concerns.

Damen has developed several product innovations and a multitude of optimised ship designs to reduce the impact of shipping on the environment. These developments include the new generations of hybrid, CNG and LNG tugs as well as inland shipping vessels, some of which are built and some of which are in research programmes. The company is also identifying new possibilities to address growing challenges of the ocean, including pioneering the world’s first mobile ballast water treatment vessel (InvaSave) to operate in ports and assist deballasting operations.

Damen’s recent partnership with the Bellona Foundation and involvement in the BlueTec Tidal Energy project also contribute to their efforts in driving ocean sustainability.

FIRST COMMERCIAL ORDER FOR AIR LUBRICATION SYSTEM Silverstream Technologies has announced the first commercial installation of its Silverstream Air Lubrication System on the Norwegian Cruise Line ship Norwegian Bliss.

The Silverstream System improves the ship’s operational efficiency by reducing the frictional resistance between the water and the hull. A thin layer of micro bubbles creates a single air carpet along the hull of the ship, curtailing the resistance and facilitating lower fuel consumption and associated emissions.

It was reported earlier this year that trials of the air lubrication system showed fuel-efficiency savings of up to 5%.

The technology can be used on both newbuild and retrofit designs with just a 14 day installation time and is scheduled for delivery in spring 2017 from Meyer Werft, Germany. There is an option for two further Norwegian Cruise Line ships to be fitted with the Silverstream System.

www.fathommaritimeintelligence.com

GLOBIC 8000

ALL-IN-ONE ANTIFOULING

Are you looking for a noticeable difference in overall performance and fuel savings? Then have a closer look at Hempel’s antifouling Nano Acrylate Technology.

A unique technology designed to deliver a wide range of benets from the moment the hull meet water.

Controlled and lasting protection for the entire docking interval – even in very aggressive fouling conditions Ideal performance for slow steaming and long idle periods Unbeatable mechanical strength Built in exibility for change of sail patterns Up to 90 months drydocking interval.

nano.hempel.com

Nano Acrylate Technologyy

NEWS ROUND-UP

FATHOM MARITIME INTELLIGENCE

TERNVAG TANKER CLAIMS ‘MOST SUSTAINABLE SHIP IN ROTTERDAM’ TITLE

ISSUE 06.2015

FIRST SHIP LAUNCHED WITH DNV GL’S GAS READY NOTATION

The Environmental Ship Index (ESI) has revealed that the Danish oil tanker, the Ternvag, was the most sustainable ship to dock in Rotterdam in 2014.

The ESI certificate, issued by the World Port Climate Initiative since 2011, indicates environmental performance based on a ship’s emissions of nitrogen oxides (NOx), sulphur oxides (SOx) and carbon dioxide (CO2).

Built in 2003, the Ternvag, owned by Terntank, has been fitted with a selective catalytic reduction system (SCR) to reduce NOx emissions.

Last year, 1,413 ships with a high entry in the ESI docked at Rotterdam.

DNV GL recently announced that United Arab Shipping Company’s (UASC) newest ship, the 18,800 TEU container ship Barzan, is the first of 17 newbuilds ordered by the company to receive classification society DNV GL’s new GAS READY notation.

The classification denotes Barzan’s liquefied natural gas (LNG) readiness, indicating that it was designed and constructed in order to undertake “a quick and cost efficient retrofit to LNG” in the future.

DNV GL says that Barzan is calculated to have an Energy Efficiency Design Index (EEDI) value that is almost 50% less than the International Maritime Organization’s (IMO) limit set for 2025.

All of the ships will incorporate energy saving technologies, such as a Waste Heat Recovery System (WHRS), which converts thermal energy from the exhaust gas from the main engines into electrical power to maximise the system efficiency.

BIMCO LAUNCH GUIDE TO MARITIME ENVIRONMENTAL & EFFICIENCY MANAGEMENT

5

BIMCO has launched a new, multipart guidance resource to support ship owners and operators in improving their environmental performance and the efficiency of their ships.

B I M C O ’s G u i d e t o M a r i t i m e Environmental & Efficiency Management, developed in partnership with maritime efficiency specialists Fathom, and supported by ClassNK, provides a resource to facilitate compliance with environmental regulations and assist owners and operators in the development of an environmental and efficiency management system.

This first-of-a-kind resource allows ship owners and operators to develop an all-encompassing environmental and efficiency management system.

The need for this sort of independent, fit for purpose resource is greater than ever, given the complexity of the regulations g ove r n i n g t h e i m p a c t o f s h i p p i n g operations on the environment and the ever-present need to drive ship efficiency.

That is why this Guide has been developed with the industr y for the industry. BIMCO’s Marine Committee, in addition to a selection of ship owners, operators and industry experts, were fundamental in shaping the structure and content of the Guide. This industry expertise ensures that it is of high practical use to ship owners and operators, both in terms of navigating the different environmental regulations and establishing a company-specific environmental and efficiency management system.

MEPC CALLS FOR TIGHTER TYPE APPROVAL ON BWMS The International Maritime Organization’s (IMO) 68th Marine Environment Protection Committee (MEPC) discussed the difficulties associated with the early adoption of ballast water management systems (BWMS).

MEPC called for review of the Type Approval process guidelines.

At the moment, the guidelines for Type Approval of a BWMS (the G8 guidelines) are weak and there is concern that systems

installed now will not meet future regulatory requirements. MEPC acknowledged the fact that the ‘early movers’ who spend millions investing in the early installation of BWMS early could be at a disadvantage when regulations come into force.

MEPC decided they will revise the G8 guidelines to reduce the likelihood of penalisation from those who have already installed BWMS.

WÄRTSILÄ & CARNIVAL PARTNER ON PILOT SYSTEMS TO “SIGNIFICANTLY CONTRIBUTE TO REDUCING FUEL CONSUMPTION” Wärtsilä Corporation has partnered with Carnival Corporation to optimise engine room operations aboard the cruise company’s fleet of 101 ships in order to “significantly contribute to reducing fuel consumption.”

Wärtsilä says it will supply technologies and systems, including engine control and monitoring systems, and safety and fuel

efficiency packages, to several Carnival ships under pilot projects.

Also to be installed on the ships is Wärtsilä’s Asset Performance Optimisation Solution, which the firm says maximises performance and ensures that systems are operating at their full capabilities, increasing predictability of maintenance needs and fuel management.

www.fathommaritimeintelligence.com

WHO’S DOING WHAT

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

WHO’S DOING WHAT FJORD LINE FERRIES HAPAG LLOYD JOINS AWARDED TOP ESI SCORES SHENZHEN’S GREEN PORT INITIATIVE Two LNG-fuelled ferries owned by Fjord Line and powered by Rolls-Royce gas engines have achieved top scores in the Environmental Ship Index (ESI).

Bergensfjord and Stavangerfjord, which operate between Norway and Denmark, scored 93.9 points and 93.5 points on the index, respectively. These high scores put them at the top in terms of efficiency for ships currently listed. The ESI currently lists 3,194 ships which are ranked according to their efficiency, with the most efficient ships scoring a higher number. At this moment in time, 50 ships score higher than 50 points and a further 178 score between 40 and 50 points, but the rest rank lower on the index.

The two ferries have rated highly on the index due to their use of LNG exclusively, with no need for oil fuel. Fjord Line is continuing to make steps toward more efficient ships by looking at the use of LED lighting to reduce energy consumption onboard.

CROWLEY JOINS TRIDENT ALLIANCE Crowley Maritime Corporation has become a member of the Trident Alliance.

The sulphur regulating organisation consists of 30 shipping companies including HapagLloyd, Maersk Line and Stena Line. The recent addition of Crowley shows their commitment to sulphur regulation compliance and supports their efforts towards enforcing such rules.

Hapag-Lloyd has joined Shenzhen’s Green Port Initiative which aims to reduce emissions from ships berthed at the city’s port in the Guangdong Province, Southern China.

Shenzhen’s Green Port Initiative is a voluntary programme whereby companies choosing to participate will burn a maximum 0.5% sulphur fuel while at port.

Hapag-Lloyd has also participated in other voluntary emission reduction schemes such as the At Berth Clean Fuels Program in Seattle, the Port Metro Vancouver Blue Circle Award in Vancouver, and the Fair Winds Charter in Hong Kong.

In addition to Hapag-Lloyd, China Shipping Container Lines, Cosco Container Lines, Yang Ming Lines, Maersk, OOCL and CMA CGM have agreed to emit less than 0.5% sulphur while at Shenzhen Port.

KUWAIT OIL TANKER COMPANY TO MINIMISE VOC EMISSIONS FROM TANKERS The Kuwait Oil Tanker Company (KOTC) has signed a partnership agreement with the leading Danish environmental protection system manufacturer, Pres-Vac Engineering.

The deal will include the installation of equipment as part of a research to measure and minimise the emissions of volatile organic compounds (VOC) from oil tankers during transit in local and international waters, said the Kuwait News Agency (KUNA) report.

The KOTC has also equipped its fleet with the latest environment protection systems creating a new design for eco-friendly ships that are further developed and upgraded in line with the company’s continuous improvement policy.

EVERGREEN CHOOSES CLASSNK-NAPA GREEN SOFTWARE Evergreen Line is proceeding with the installation of ClassNK-NAPA Green software on chartered container ships.

The ClassNK-NAPA Green software enhances ship efficiency and optimises operational performance by providing a planning and monitoring solution. The software system is able to monitor, record and analyse data from chartered ships in real-time to provide a greater understanding of fleet operation.

NORDEN AIMS TO IMPROVE 2015 FLEET FUEL EFFICIENCY BY 3% DFDS TO SHARE SOX & CO2 EMISSION DATA Norden has stated that if activity seen in 2014 is replicated in 2015, this will equal a reduction of 17,000 tonnes of fuel, resulting in a saving of US $5.5 million.

Norden’s availability of financial resources in 2013 and 2014 facilitated the investment in fuel efficient ships. This allowed them to contract new ships when many had difficulties obtaining financing and to take advantage of competitive ship prices.

DFDS is to share sulphur oxide (SOx) and carbon dioxide (CO2) emissions data with the public and authorities.

The North European ferry operator will release data extracted from emissions monitoring systems on ships equipped with scrubbers.

There will be two versions of an online monitoring tool. One will be available to the public, the other - containing more data - will be made available to authorities in charge of enforcing sulphur limits.

The initiative is part of the company’s preparation for the European Union requirement for Monitoring, Reporting and Verification (MRV) of CO2 emissions, due to come into force in 2018.

www.fathommaritimeintelligence.com

6

WHO’S DOING WHAT

FATHOM MARITIME INTELLIGENCE

STENA LINE LAUNCHES FIRST METHANOL FERRY

CROWLEY RECEIVES ‘EARTH DAY AWARD’

Stena Line has announced the launch of the Stena Germanica – the first ferry in the world to use methanol as a fuel source.

The Ro-Pax ferry will comply with the most recent stringent regulations through operating with 99% lower sulphur emissions, 60% lower nitrogen emissions, 95% lower particulate matter emission, and 25% lower carbon dioxide emission by using methanol fuel as an alternative.

The €22m conversion took place at Remontova shipyard in Gdansk, Poland and involved both Lloyd’s Register and ship designer ScandiNaos.

Stena Line also collaborated with Wärtsilä, the Port of Gothenburg, the Port of Kiel and Methanex Corporation project.

SEASPAN TO FIT TWO FERRIES WITH CORVUS ENERGY SYSTEM

7

ISSUE 06.2015

Seaspan Ferries is to install Corvus Energy’s energy storage system (ESS) on two of its hybrid ferries to improve operational efficiency and reduce emissions.

The new ships will each use a 1050VDC, 546kWh ESS which consist of 84 Corvus Energy AT6500 advanced lithium polymer batteries. In addition, an Elkon Electrical propulsion and distribution system will integrate into the ESS powered with dual-fuel engines capable of running on diesel and LNG with a Corvus ESS as spinning reserve and power for responsive harbour manoeuvring.

The ferries that ESS is due to be installed on are capable of running on liquefied natural gas (LNG), diesel and battery power.

AIDA TO INSTALL ABB’S EMMA SOFTWARE ON CRUISE SHIPS AIDA is to install ABB’s energy monitoring and management system ‘EMMA’ to their fleet of 10 cruise ships.

The EMMA advisory suite has already been installed on six of AIDA’s cruise ships with ABB providing analytical services, such as simulations to assist AIDA on future business case analysis.

Data generated onboard is transferred to a cloudbased application for benchmarking and to facilitate onshore management by providing access to full energy consumption data across the fleet.

In addition, EMMA supports the mandatory implementation of SEEMP to improve the energy efficiency and cost-effectiveness of a ship.

Crowley Maritime Corp. has received the 2015 Federal Maritime Commission (FMC) Chairman’s Earth Day Award in recognition of their environmental stewardship initiatives.

Presented annually, the award highlights technologies, programmes or practices of the maritime transportation industry which show significant environmental benefits.

Crowley has been honoured with the award after proving their commitment to environmental sustainability. Their efforts include: ordering two new LNG powered ships; participation in the spill protection programme of the State of Washington, Department of Ecology; and its membership in the Trident Alliance, a coalition of ship owners supporting vigorous enforcement of the sulphur fuel limit restrictions.

BALEÀRIA SIGNS UP TO CARBON CREDITS PROGRAMME Spanish ferry operator Baleària has signed up to AkzoNobel’s pioneering carbon credits programme.

The company has enrolled its passenger ferry Martin i Soler into the scheme, which financially rewards ship owners by enabling them to generate income in the form of carbon credits earned by reducing CO2 emissions.

The carbon credits programme was developed by AkzoNobel in 2014 in conjunction with the Gold Standard Foundation. It is based on ship owners converting existing ships from a biocidal anti-fouling system to a premium, biocide-free advanced hull coating such as Intersleek, part of AkzoNobel’s International® line of marine coatings.

The Martin i Soler was converted from an existing silyl biocidal anti-fouling to Intersleek® 1100SR in November 2013. The ship’s performance was monitored over the following 12 months and showed a 12% improvement in fuel efficiency.

These fuel savings – which equate to a reduction of 15 tons of CO2 per day – convinced Baleària to enroll the ship into the carbon credits programme.

MSC CONFIRM CONTINUATION OF JOTUN HULL PERFORMANCE SOLUTIONS Mediterranean Shipping Company (MSC) have confirmed that they will continue to use Jotun’s Hull Performance Solutions (HPS) after successful trials demonstrated fuel efficiency gains and reduced CO2 emissions.

The pilot programme involved testing on the 8,772 TEU container ship, MSC Adelaide, with lower fuel costs and carbon emissions.

Following MSC’s fuel efficiency programme, which began in 2011, they have been working alongside Jotun Marine Coatings to monitor the impact of antifouling on speed loss.

The technology will now be applied to a further 12 ships including the MSC Oscar, the world’s largest container ship.

K-LINE SETS SIGHTS ON ZERO EMISSIONS K-Line has announced its zero emission goal, aiming to half its CO2 emissions per freight-tonne mile by 2050 compared to its 2011 levels. Interim goals include reducing CO2 by 10% by 2019 compared to 2011 levels and introducing liquefied natural gas (LNG) carriers.

Three of K-Line’s ships are to install eco-efficiency software, developed by NAPA Japan Ltd to improve efficiency and monitoring.

Additionally, measures to reduce marine accidents including oil spills will be incorporated into the company’s plan, with further investment in fuels such as LNG, hydrogen and fuel cells, to reduce emissions and improve efficiency.

W MARINE TO INSTALL ECOCHLOR BALLAST TREATMENT SYSTEMS W Marine is to install Ecochlor ballast water treatment systems (BWTS) on two newbuild bulk carriers to be constructed in China by Sainty Marine Corporation.

W Marine chose the Ecochlor BWTS for their 82,000 deadweight tonne (DWT) carriers as they have secured United States Coast Guard (USCG) approval. The contract includes an option for six additional systems to be retrofit onto its existing fleet.

www.fathommaritimeintelligence.com

GET A TIGHTER GRIP ON MAINTENANCE COSTS COMPAC FOR LIFE

Reduce operational costs Eliminate aft seal problems Eliminate emergency docking Fewer components Zero environmental impact Polar Code compliant Meets US VGP requirements Over 2000 ship references GUARANTEED

FOR 15 YEARS

Eliminate costly oil-lubricated seal maintenance with a seawaterlubricated COMPAC propeller shaft system

TH

RDON

ZERO POLLUTION | HIGH PERFORMANCE | BEARING & SEAL SYSTEMS To contact your local distributor, please visit www.thordonbearings.com

FEATURE FOCUS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

ARCTIC ADAPTATION Sea ice recession coupled with longer navigational seasons are making the Arctic more appealing as an avenue for maritime transport. Interest in the Northwest Passages and particularly the Northern Sea Route, fuelled by increasing meltwater, is driving opportunities for ship operators to exploit new routes and natural resources in an emerging global market.

As the viability of these Arctic shipping routes increases and more ship voyages are re-routed to the region, the demands on technology companies to adapt their technological solutions for harsher operating conditions encountered during voyages across this icy region will increase. This is already happening in the industry and technologies are undergoing remarkable adaptations to support passages across the Northwest Passages and the Northern Sea Route.

The Drivers For Technology Arctic-Adaptation The unforgiving Arctic conditions often cause technologies to function differently to how they would in non-Arctic waters. Therefore, technologies must be able to continously perform under harsh conditions and maintain environmental sensitivity. The requirement for ultimate operational reliability and regulatory compliance is a dominating driver for the adaptation of technologies. These drivers have certainly been fuelled by recent developments of the Polar Code.

9

The 68th session of the International Maritime Organization’s (IMO) Marine Environment Protection Comittee (MEPC), held in May 2015, saw the provisional International Code for Ships Operating in Polar Waters (Polar Code) adopted. The complete Polar Code, encompassing safety-related and environmental requirements, is expected to enter into force on 1 January 2017 and will apply to all ships constructed on or after this date.

Due to the fact that technologies may not be as effective or compliant in the specific and unique characteristics of Arctic waters, the Polar Code permits only the use of certain technologies in these areas and enforces strict regulations around technology requirements and environmental sensitivity.

Making Technologies Arctic-Acceptable Propulsion

The Polar Code stipulates that the design of the ship must cope with the metres-thick ice it will face and be able to move easily through challenging waters to minimise risks to all onboard. Therefore, innovative propulsion systems which focus on ease of ship manoeuvrability in icy waters are vital.

With the opportunities the retreating sea ice presents in the Arctic, ABB has generated a series of azipods which retain the ability to fully operate in vastly thick ice, common along the Northern Sea Route.

Bio-Fouling

Hull coatings in the Arctic require increased abrasion resistance with specific film properties to achieve this characteristic. This had led to the development of quick hard drying applications with twin feed airless spray to achieve maximum performance of anti-abrasion resistance. Alternative easy-release coatings are particularly gentle on the environment as they use a silicon-based resin which provides a slippery surface to minimise organism attachment. However, despite their environmental advantages, coatings such as these create further challenges for Arctic-going ships as their lack of resistance leaves them subject to abrasion and cracking.

Furthermore, because of the significant threat of fire, which is exacerbated in remote locations such as the Arctic, specific fire-resistant hull coatings for Arctic-going ships have been developed by International.

These coatings facilitate a complex set of reactions to occur in the coating in the event of a fire which causes the coating to expand and insulate the steel, preventing early collapse of steel structures.

www.fathommaritimeintelligence.com

FEATURE FOCUS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

HOW ARE TECHNOLOGIES ADAPTING FOR ARCTIC VOYAGING? Lubricants

The Polar Code states that non-toxic biodegradable lubricants or water-based systems should be considered in lubricated components located outside the underwater hull with direct seawater interfaces, like shaft seals and slewing seals”.

Environmentally Acceptable Lubricants (EALs), as defined by the United States Environmental Protection Agency (EPA), could therefore be considered for Arctic operations, yet so far, they only account for a small percentage of the total lubricant market.

Complicating matters is the fact that it is unclear whether such lubricants still remain non-toxic and biodegradable in the Arctic because of the characteristically different environment. For instance, the reduced sunlight level in the Arctic lengthens the degradation process which increases the risk of toxic substances in the lubricants making their way into the marine environment and food chain.

Despite the lubricant’s properties, the equipment of the lubricating system should be adapted to Arctic operations as well. Many ships operating in the Arctic have propulsion systems with propeller shafts supported by oil lubricated metal bearings with the oil contained in the stern tube by forward and aft shaft seals. The seal must leak into the sea or forward into the ship’s bilge in order to facilitate proper functioning of the seal.

There is, however, an alternative method ships may use to eliminate stern tube oil pollution which may require further development and progress to be fully utilisable in ships operating in the Arctic environment.

According to Thordon, their COMPAC seawater lubricated stern tube bearing system eliminates pollution risk into the Arctic while offering performance and lower operating costs. It uses metallic bearings instead of metal bearings that require mineral-based lubricants or EALs and has to date been deployed on more than 500 ships.

Navigation

Ships operating in the Arctic require highly technical navigation systems as its remoteness can make navigational mistakes fatal, for both the operators and the environment. The biggest challenge is ice: from October to June, the Arctic Ocean remains largely ice-locked, making surface navigation impossible for all ships, except icebreakers. Freedom of manoeuvre is key to successful ice navigation as once a ship becomes trapped, it goes wherever the ice goes.

The Polar Code rudimentally regulates navigational procedures in ice covered waters in order to limit the risks the ship may be subjected to. For instance, ships are now assigned a ‘Polar Class’ which is designated according to their level of capability for operating in Arctic waters, taking into consideration the season and the operational needs of the ship.

Along with the Polar Code navigational requirements, climate change and increasing meltwater is extending the operational season, driving the need for intelligent technology for warning purposes and fast response. In addition, low visibility and intermittent fog remain technical challenges to Arctic navigation.

The level of isolation ships reach in the Arctic means that should they get into trouble, a timely emergency response may not be easy and so a ship’s independence and ability to operate in these conditions is vital.

Navigational and communications equipment must be reliable with particular attention on maintaining radar at peak performance. For this reason, RADAR Technology’s Ice Detection Radar has been developed with these risks in mind. Using a high-performance antenna with ice-free design, the technology complies with DNV GL’s Winterization Rules for ships and Classification Rules for mobile offshore units. Even in the harshest of conditions, the radar system is able to detect and display radar images, meeting both the Polar Code and the new Ice Code for Navigation.

For training purposes, Aker Arctic Technology has developed an ice simulator in light of the challenges facing Arctic navigation and operation. The ice navigation simulator permits operators to train and navigate in simulated environments where risky and dangerous manoeuvres can be practised. It allows planning of ice management operations using a range of full-scale data.

The Polar Code also requires ships to carry equipment capable of receiving ice and weather information charts. For example, AWT has developed a highly accurate ‘BonVoyage System’ which provides aroundthe-clock voyage optimisation with onboard weather-routing information with a Passage Manager to validate that a ship has all the required charts onboard.

In response to the Polar Code enforcements, technologies have had to be adapted to comply with the regulatory requirements. Operating in the Arctic means that technologies must evolve – they cannot just be acceptable for non-specific shipping routes or operating conditions; they have to be Arctic-acceptable.

www.fathommaritimeintelligence.com

10

BREAKING BOUNDARIES

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

BREAKING BOUNDARIES For this edition of Breaking Boundaries, Fathom was invited to interview His Excellency Tony de Brum, Minister of Foreign Affairs of the Republic of the Marshall Islands (RMI). The RMI sought to break boundaries in the industry through a submission to the International Maritime Organization’s (IMO) 68th Marine Environment Protection Committee (MEPC), calling for the setting of a new global target for reducing greenhouse gas (GHG) emission from international shipping.

During the MEPC plenary session, an overwhelming majority of countries expressed their support for the Marshall Islands and the overall objective of its submission, but were split as to whether the IMO should take action before the UN Climate Change Conference in December or before it has a robust data measurement process in place to track the emissions of shipping. Only a handful of countries did not support the concept of a goal to reduce emissions from shipping. RMI has vowed to continue to pursue the proposal in the lead-up to this year’s IMO Assembly in November and once the UN Climate Conference concludes in December.

Why Did The RMI Take The Initiative To Call For A New Global Target For Reducing GHG Emissions From International Shipping?

11

The Marshall Islands are a small island state vulnerable to climate change. We depend on fossil fuels to reap benefits from our resources and ultimately to survive. We are faced with some real challenges related to health, education and economic survival. So we have all the reasons to make climate change mitigation our priority, yet we cannot resolve climate change by ourselves. The status quo is unacceptable and business as usual is not going to change anything. Once we begin sinking, it may be too late, not just for us, but for the rest of the world.

With the help of University College of London and the University of the South Pacific, we examined GHG emissions from ships registered in the Marshall Islands, and it soon became clear that the maritime world is far from meeting even the minimum contributions to combat climate change. Our understanding is that current measures to control emissions are not commensurate with the increase in maritime activities that is expected for the future.

Being the third largest ship registry, soon to be second as I was told, we want

to assist the industry in moving closer to the emission reduction targets required to keep global temperature rise below 2°C. We want to be the voice of conscience for the industry – not just the shipping industry, but for other industries too.

Why Did The RMI Call Upon The IMO To Take Action?

We need a global concerted effort to combat climate change, also in the shipping industry. If we were to take unilateral action, ship owners would just register their ships under another flag. The IMO is the pre-eminent body for regulating international shipping and has the unique capacity and expertise to facilitate industrywide action.

We want to bring the IMO back into the general international policy debate on climate change. All we are saying is that the IMO has been somewhat cruising along in the climate change negotiations and should join the dance and act upon the reality of climate change. In December, the world leaders and Ministers will gather in Paris to conclude a new international agreement to guide the world’s response to climate change and we hoped that the IMO would be a part of that.

How Are The RMI Encouraging The International Community To Take Action?

From left to right: James Bule, Minister Climate Change, Republic of Vanuatu; Koji Sekimizu, IMO Secretary-General; Tony de Brum, Minister Foreign Affairs, Marshall Islands

We have written letters to every head of State in the Pacific, informing them about our plans, and have received great administrative support from most of them. The Government of Vanuatu even sent their Minister of Climate Change Mr James Bule to support our proposal at IMO. We have talked to representatives of the

www.fathommaritimeintelligence.com

European Union who ensured the EU’s support for our aim. We have also met with representatives of the United States who were initially concerned that our proposal would side-track from their discussions on the proposed global Monitoring, Reporting and Verification scheme. The way we see it, and I believe the Americans should too, our proposal can only contribute to this debate as a global GHG reduction target would make monitoring and the collection of data more important.

We have advised Panama and Liberia on what we are doing and consulted them on solutions that could contribute to our goal, for example the Liberian Registry’s financial incentive schemes for improved environmental performance.

We have also met with representatives of other States, so the word is out.

How Did The Maritime Industry React To The RMI’s Submission To The IMO?

The reaction was more characterised by concern rather than adversity. We have heard concerns about how our proposal would be affecting the industry, also from our registry. But very early on in the process of the submission, we started talking to our registry to make sure they were onboard and understood that we are by no means trying to destroy their business, to the contrary, or impose any rules on them.

We are also not intending to impose any market-based measures on the industry.

That is completely up to the IMO to decide. Instead, we are calling upon the IMO to adopt an ambitious timeline and target end date for the shipping industry in line with the 2°C climate target.

When it comes to your vessel, you can’t afford to take chances.

That’s why you need to choose a ballast water treatment company with the experience to deliver unmatched technological leadership and the performance you require.

The proven reliability of the Hyde GUARDIAN Gold® BWTS – the most used ballast water treatment system in the world – harnesses Hyde Marine’s 150 years of maritime leadership, giving you the confidence you need.

See why our experience matters at hydemarine.com/experience.

Experience Matters

+1.724.218.7001 I www.hydemarine.com

FEATURE FOCUS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

ENVIRONMENTAL MANAGEMENT

13

In 1992, the British Standards Institution published the world's first environmental management systems st andard BS 7750 which led to the publication of the first international environmental management standard ISO 14001 global industry in 1996. These standards mapped out a framework that companies or organisations regardless of their activity or sector could follow to set up an effective environmental management system.

Since then, the rise in the adoption of environmental management standards is evidenced by the growing number of ISO 14001 certificates: up to the end of December 2013, at least 301,647 ISO 14001 certificates had been issued in 171 countries.

Global industries are witnessing the increasing uptake of environmental management standards and the maritime industr y is no different. Since the International Safety Management (ISM) Code became a mandatory instrument in 1998, the significance of management systems in general and of environmental ones in particular has risen in the industry.

BIMCO recently surveyed participants d u r i n g a n e d u c a t i o n a l we b i n a r o n Maritime Environmental & Efficiency Management, with a view to identifying the environmental management practices of the audience. It turned out that of the nearly 70 participants, close to 70% already implemented an environmental management system, 21% did not and 10% were unsure. The majority of those with an environmental management system had implemented ISO 14001 (63%) and 15% implemented their own system.

Another 15% of participants were about to embark on the implementation of such a system and only 7% had not considered environmental management up until now.

Even though these results might be slightly biased in favour of environmental management, they still indicate that environmental management is a hot topic in the shipping industry. This is also exemplified by the growing number of shipping companies that publicly announce their dedication to reducing the environmental impact of their operations.

Although a hot topic, it can be a topic that has industry stakeholders scratching their heads and wondering where to

start as the perception may be that to implement a good environmental management system, you must navigate through depths of paperwork and expend a lot of time and resources.

The challenge for the maritime industry to deal with the demand for enhanced environmental performance lies in the fact that the industry is made up of small- to medium-sized companies which means that many companies only have limited resources and time available to dedicate to environmental management. Furthermore, there is only little maritime-specific guidance that helps ship owners establish a management framework that answers their actual needs rather than prescribing what they should do.

Speaking about how to develop an environmental management system in the maritime industry during BIMCO’s recent webinar, Dr Anne-Marie Warris, Chair of the ISO 14001 Committee, ISO observer at the IMO Marine Environmental Protection Committee and principal at ecoreflect, recommended to bear a number of

www.fathommaritimeintelligence.com

principles in mind. The one that stands above the rest is to respect one’s owns reality and culture as each organisation is unique and operates in different circumstances, with different resources and culture.

Dr Warris reflected: “It’s no good for you to want to be a big ship owner if you’re a small one. You just don’t have the resources to do what they can do. So you need to be clear about what your reality is and what your culture is.”

Furthermore, companies should try to keep it simple and develop procedures that suit the organisation and that staff can realistically follow.

This message was shared by Michael Ser vos, Energy Manager at Tsakos Columbia Shipmanagement Corporation (TCM), a ship management company of

FEATURE FOCUS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

A STRUCTURED ROUTE AHEAD? 68 ships, predominantly made up of crude oil tankers.

Ac c o r d i n g t o M r. S e r vo s , eve r y company already has an environmental and efficiency management system, even if it has not been formalised, yet strongly recommends to move towards a structured approach.

The key benefits of such a structured approach are to reduce the company’s n e g a t i ve e nv i r o n m e n t a l i m p a c t s , demonstrate not only regulator y compliance but also voluntary action over and above legal obligations and satisfy the demands of customers and stakeholders and derive financial benefits, for example in the form of fuel savings. He stated: “Do not forget that commercial obligations are the core driver for businesses. Your system should support and enhance those. Having such a system in place will help you monitor, evaluate, manage and subsequently improve your energy and

environmental performance and reduce your costs. For a ship management company of about 70 vessels like TCM, even the slightest improvement in energy performance could translate in millions of savings.”

Based on his experience, Mr. Servos shared his recommendations for establishing such a system. Firstly, the implementation should not be a paper exercise and top management should be actively involved, leading the way and providing resources. Furthermore, active involvement and participation of personnel is key which requires investing time in educating people and changing their mentality to ensure ever ybody shares the same awareness. Here again, the involvement of top management is essential. To underline this point, Mr. Servos quoted a survey according to which 60% of employees think that top leaders are responsible for changing the culture of a company. In line with the recommendations of Dr Anne-Marie Warris, he advised to “keep it simple to keep it manageable and measurable”.

www.fathommaritimeintelligence.com

A n o t h e r key a s p e c t M r. S e r vo s elaborated on was the importance of certification, and not surprisingly so given that TCM is not only ISO 14001 and ISO 50001 certified, but has many m o r e c e r t i f i c a t i o n s . Ac c o r d i n g t o Mr. Servos, “certification is proof of commitment towards improvement and legal compliance, having a positive impact on business while it provides a more systematic approach to manage the risks and opportunities.” Yet he warned that organisations have to have the resources required before going towards certification and points out the challenges involved, for example the fact that most certifications are not tailored towards the maritime industry, so shipping organisations might have to improvise.

Industry-Specific Guidance Ahead

In March 2015, BIMCO launched a new, multi-part guidance resource to support ship owners and operators in improving their environmental performance and the efficiency of their ships.

B I M C O ’s G u i d e t o M a r i t i m e Environmental & Efficiency Management, developed in partnership with maritime efficiency specialists Fathom Maritime Intelligence, and supported by ClassNK, provides a resource to facilitate compliance with environmental regulations and assist owners and operators in the development of an environment al and efficiency management system.

The Guide is a three-part resource consisting of a management framework, a handbook providing regulator y and technical information related to environmental and energy efficiency aspects and a memory stick containing an electronic library of templates and forms to facilitate the implementation of a maritimespecific environmental management system.

14

GUEST FEATURE

15

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Staying Green From Start To Finish As European regulation of the ship recycling sector becomes a reality, ClassNK’s early response to the issue at the international level proves its prescience.

Around 700 of the estimated 45,000 ocean-going ships in the world are taken out of service every year. Their valuable steel over 80% of a ship’s lightweight value – is an available resource that can be recycled. The machinery and equipment included in the lightweight value are also resources that can be reused.

The shipbreaking industry has grown to meet demand, and is now a profitable operation with business opportunities taken up most energetically in developing countries. However, their exploitation has come with both a human and environmental cost. The demolition of ships is sometimes associated with dangerous practices and pollution especially when issues such as lack of awareness make it difficult to ensure safety and manage hazardous materials, for example asbestos, oily sludge, and toxic paint chips.

For the past 20 years, the International Community has been campaigning for the improvement of safety and environmental standards in the ship recycling industry.

The IMO’s response has been the “Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships”, also known as “the Hong Kong Convention”, adopted in 2009. Norway, whose delegation had been responsible for introducing the theme of ship recycling to the agenda of the International Maritime Organization (IMO), became the first country to accede to the Convention on 26 June 2013.

Under the Hong Kong Convention scheme, ships over 500 GT engaging in international voyages must carry onboard an Inventory of Hazardous Materials (IHM) describing the location and the approximate quantity of the ship’s hazardous materials.

In principle, IHMs should be developed at the point of the ship’s delivery and maintained until the end of its life.

Meanwhile, ship recycling facilities will be required to develop a Ship Recycling Facility Plan (SRP) by utilising the IHM information to decide how to manage the types and amounts of hazardous materials expected.

As of today, however, only three countries (Norway, Republic of Congo and France) have ratified the Hong Kong Convention.

To trigger entry into force, the instrument must be ratified by

According to the Hong Kong Convention, shipbuilders should collect hazardous material information related to machinery, equipment and other items installed onboard from equipment makers, trading companies and other suppliers

www.fathommaritimeintelligence.com

GUEST FEATURE

FATHOM MARITIME INTELLIGENCE

no fewer than 15 States, representing 40% of world merchant shipping by gross tonnage, with a maximum annual recycling volume of the signing states during the preceding 10 years constituting not less than 3% of their gross tonnage.

The European Union has subsequently looked to regulate the ship recycling sector more quickly. The EU Regulation on Ship Recycling entered into force in December 2013, specifically to speed up the adoption of the Hong Kong Convention. Its terms were immediately and uniformly handed down to Member States. The EU Regulation imposes an obligation on ship recycling facilities wishing to undertake recycling activities on ships that exceed 500 GT and flying the flag of an EU Member State to be authorised and listed in the European List. In addition to incorporating much of the Hong Kong Convention without modification, it also imposes stakeholder requirements which are even tougher than the Hong Kong Convention in some areas.

The industry should note that the IHM requirement is reinforced not only for ships flagged by EU Member States, but also for ships calling at ports in EU territory.

Critically, the EU rules build on the Hong Kong Convention to put into law the notion of an approved list of recycling facilities permitted for ships flying EU flags, together with a list of prohibited materials for newbuildings. According to the European Commission: “The European List will be published in the Official Journal of the European Union and on the website of the Commission at the latest thirty six months after the date of entry into force of this Regulation (i.e. at the latest by the end of 2016). The Commission will be able to regularly update the European List in order to include or remove a ship recycling facility from the List.”

For the first time, stakeholders are having to face up to the Hong Kong Convention in the context of implementation, rather than further discussion.

As an early mover in the development of work at IMO level, ClassNK has positioned itself in readiness for the entry-intoforce of the Hong Kong Convention. As early as 2008, the Society established a cross-divisional project team to develop a complete solution for ship recycling, including the development of the necessary documentation.

Well before the adoption of the Hong Kong Convention at IMO in 2009, ClassNK worked with equipment manufacturers, shipyards and ship owners to develop IHMs for 20 new ships and 40 existing ships on a trial basis. This experience helped ClassNK to understand practical issues and build up technical expertise in this area.

According to the Hong Kong Convention, shipbuilders should collect hazardous material information related to machinery, equipment and other items installed onboard from equipment makers, trading companies and other suppliers. The information received should then be organised in the IHM, and the correspondence between the shipbuilder and supplier should be conducted in terms compatible with the prescribed forms, Materials Declaration (MD) and Supplier’s Declaration of Conformity (SDoC).

To deal with both the proliferation of documents and the potential for errors in transferring information from MD to IHM, ClassNK launched a cloud-based system for IHM development and maintenance in 2011. The software, PrimeShipG R E E N / S R M , wa s d eve l o p e d

ISSUE 06.2015

in collaboration with IBM to assist with the easy exchange of MD/SDoC and generate the IHM automatically by managing information online.

The cloud-based system enables suppliers to consolidate the responses for shipbuilder requests to submit MD and SDoC. In addition, suppliers can upload their MD to the MD Library.

Shipbuilders can develop IHMs in Excel format using the MD/ SDoC uploaded by suppliers and set locations for MDs containing Hazardous Materials. PrimeShip-GREEN/SRM automatically calculates the amount of Hazardous Materials at each location.

This information can then be approved by ClassNK and transferred directly to the ship owner.

“PrimeShip-Green/SRM is becoming the de facto standard for the development and management of IHMs around the world. Nearly 2,200 companies, mainly shipyards and equipment manufacturers in East Asia, have so far registered to use the system and are actually using it in the development of IHM’s”, says Hirofumi Takano, head of ClassNK’s Ship Recycling Team.

“The system allows for all aspects of IHM development and management during a ship’s entire lifecycle to be conducted online, from the input of MD and SDoC to the maintenance of IHMs onboard”.

In its capacity as a classification society, ClassNK has already conducted and issued around 500 surveys and Statements for developed IHMs to certify their compliance with the Convention.

The Hong Kong Convention acknowledges difficulties when it comes to gathering information for aged ships, and therefore allows for the development of IHMs based on experts’ drawings and onboard inspections. In order to facilitate this procedure, ClassNK’s subsidiary company, ClassNK Consulting Service (NKCS), has built a team of experts to provide ship owners with an advanced solution for the IHM development process. NKCS also offers consulting services to breaking yards on how to prepare Ship Recycling Facility Plans (SRFP).

To date, ClassNK has certified five ship recycling facilities that have upgraded their management procedures to be in line with the Hong Kong Convention, including the world’s first statement of compliance (SOC) to Zhongxin Shipbreaking & Steel Co. Ltd., in China.

“Helping the industry comply smoothly with incoming international rules is the responsibility of classification societies.

At ClassNK, we have worked to provide appropriate solutions to the issues faced by the stakeholders involved in the complex ship recycling process. With these solutions already in place, now it is just a matter of guiding the industry through the new regulations”, says Mr. Takano.

www.fathommaritimeintelligence.com

16

ENVIRONMENTAL TECHNOLOGY

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Environmental Technology

NEWS

WIND AND SOLAR MARINE PROPULSION TECHNOLOGY MOVES A STEP CLOSER TO COMMERCIAL REALITY

17

Japan-based Eco Marine Power (EMP) along with its strategic partner, Teramoto Iron Works Co. Ltd. (Teramoto Iron Works) have taken another step towards bringing the Aquarius MRE wind and solar marine propulsion technology to market, having agreed to establish a new development and test facility in Onomichi, Hiroshima.

With the new Onomichi Marine-Tech Test Centre, or Onomichi MTTC, EMP says it plans to build and test a complete Aquarius MRE System at the site with production due to start during 2015.

Onomichi MTTC was said to feature a large outdoor evaluation area that will allow testing of devices such as EMP’s EnergySail, a rigid sail capable of using both wind and solar energy to help power a ship.

Teramoto Iron Works, which was

established in 1934, has a long history of product innovation and was involved in the production of rigid sails for ships in Japan around four decades ago It is understood that a number of other companies and technologies will be involved with testing activities at the site, including The Furukawa Battery Company, and KEI System Limited, with which EMP has developed its Aquarius Monitoring and Automation system (Aquarius MAS) marine computer system that can monitor and control ship equipment, including its wind and solar power devices.

In April 2015, EMP said it had received acceptance from classification society ClassNK for its Aquarius Marine Solar Power system to be installed aboard ClassNKclassed ships.

RETROFITTING OF MODERNISED OILY WATER TREATMENT SYSTEMS ON INCREASE The installation of separator systems to modernise ships and drive efficiency is on the rise.

Since 2014, a growing number of separators have been fitted, particularly in Europe and North America. More than 50 OSE separators from GEA Westfalia Separator Group (GEA) have been ordered since the start of 2015 as part of projects to modernise ships for US and Canadian naval authorities alone.

Separators are used to remove fine oil droplets to separate fuel oil and to treat bilge water to reduce environmental pollution and operating costs. These r e t r o f i t s h ave fa c i l i t a t e d i m p r ove d operational efficiency of the navy, coast guard and shipping authorities in light of increasingly stringent International Maritime Organization (IMO) and United States Coast Guard (USCG) requirements.

NEW NON-TOXIC ANTI-FOULING SHOWS PROMISING RESULTS A new non-toxic coating that uses nanotechnology is currently under development for application on ships for biofouling prevention.

This unique non-toxic coating is being developed through the application of nanotechnology, which enables matter to be manipulated at the smallest scale and has the potential for creation of new materials. The coating has been extensively tested using fishing nets as a test surface to grow nanostructures. These metal oxide nanostructures have shown to absorb sunlight, preventing the accumulation of biofouling

species as they act like a shield to highly reactive oxygen and hydroxyl radicals in the vicinity of the coated surfaces. This process is known as photocatalysis. The shield prevents the biofouling species accumulating and hence the negative impacts associated with biofouling.

Test results have thus far demonstrated positive reductions in biofouling occurrence.

This project is being carried out through a partnership between Almouj Marina at The Wave, Muscat in Oman and researchers from Sultan Qaboos University (SQU).

www.fathommaritimeintelligence.com

STUDY TO DETERMINE VIABILITY OF OILY WATER SEPARATORS The United States National Fish and Wildlife Foundation and the United States Coast Guard (USCG) have announced they are carrying out a study on Oily Water Separators (OWS) and shipboard environmental management.

The study, called MAX1 and organised and managed by the marine consultancy firm, Messrs. Martin & Ottaway, aims to ascertain how effective OWS are by looking at the issues currently surrounding them.

OWS have shown to function incorrectly due to lack of ideal conditions on ships.

Turbulence, for instance, can result in a lower OWS capacity and incorrect processing, whereas particulate matter can activate a high ppm (parts per million) alarm and act as an emulsifying agent.

Furthermore, the study hopes to determine what can be done to increase the effectiveness of shipboard oily waste management. Towards this end, an anonymous survey is to be carried out to acquire information on the operation and benefits of OWS and shipboard waste management, particularly taking into account the views of ship owners, managers and crews. It is hoped that the feedback from ship owners and operators will provide valuable information on the use of OWS to help further improve environmental management and reduce non-compliance.

MAX1 fits within the QESTH (Quality, Environmental, Sustainability, Training and Health) framework. It is expected to contribute to finding solutions that will not only benefit the management of machinery space-derived waste and of OWS systems but the management of all shipboard QESTH components.

The project will involve all stakeholders, such as regulatory organisations, ship’s crews, ship owners and operators, ship builders, OWS manufacturers, classification societies, registries, and maritime non-profit organisations.

ENVIRONMENTAL TECHNOLOGY

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Green Light For Waste Water System Approval ACO Marine recently received Bureau Veritas type approval for their next-generation treatment plant.

Testing of the ACO Maripur NF sewage treatment system confirmed that the system meets the stringent performance requirements of IMO Resolution MEPC.227(64), which enters into force in January 2016.

The IMO Resolution MEPC.227(64) requires ships with more than 12 passengers operating in designated “special areas” to reduce the phosphorous and nitrogen content of treated effluent from January 2016.

The Bureau Veritas type approval testing verified that the

ACO Maripur NF sewage treatment system can reduce coliform bacteria to 17.5 count/100ml (standard is 100 count/100ml), TSS to 2.4mg/l (standard is 35mg/l), BOD to 7.3mg/l (standard is 25mg/l), and COD to 60mg/l (standard is 125mg/l), while nitrogen and phosphorous content is significantly below the mandated levels of 20mg/l and 1mg/l at 7.2mg/l and 0.3mg/l respectively.

The mandator y requirements in the IMO Resolution MEPC.227(64) are expected to create challenges for ship operators as many treatment systems are failing to meet the existing standards.

Waste Fuel Recovery Is Only The Beginning Alfa Laval recently announced that its PureDry waste fuel recovery system, designed to enable ship owners and operators to reuse the HFO fraction of waste oil, is still seeing interest despite the recent decline in fuel prices.

Two years after its launch, Alfa Laval has sold over 160 PureDry units. The PureDry system has been purchased by numerous owners, including Carnival Corporation, Dynacom, Frontline, MSC, Norwegian Cruise Line, Petrofac, Spliethoff, Stena and Wallenius.

The system can return the equivalent of as much as 1-2% of a ship’s fuel consumption, according to Alfa Laval. Additionally, as much as PureDry recovers fuel, it also minimises sludge.

When waste oil is separated with PureDry, there is no liquid waste. Fuel of ISO 8217 quality is returned to the bunker tank, while all of the water is sent to the bilge water treatment system. After the fuel and water are separated, Alfa Laval says all that remains are 5-10 kg per day of super-dry solids, the suspended solids that comprise around 1% of the waste oil.

These super-dry solids are non-pumpable and must be landed as dry waste or incinerated.

“Many vessels today get rid of their waste oil by pumping it onto receiving barges, which is yet another messy procedure for the crew to deal with,” Kujala says. “PureDry eliminates this procedure and all of its drawbacks, which has proven reason enough for some customers to buy it. The super-dry solids go straight out of PureDry and into a container, and the container itself goes straight onto land.”

“When we developed PureDry, fuel savings were in focus 100%, but customers are just as interested in PureDry now that fuel prices have dropped.” says Pauli Kujala, Senior Business Manager at Alfa Laval.

www.fathommaritimeintelligence.com

18

ENVIRONMENTAL TECHNOLOGY

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

AIR LUBRICATION BREAKS OUT OF DEVELOPMENT BUBBLE

19

Leading design consultant says owners looking for cost savings through greater ship efficiency should look at the evidence, not the hyperbole.

“We’re familiar with arguments that try to tag any idea that has a positive effect on the marine environment as some kind of sales pitch in disguise, but the fact is that paying for more energy than is actually required does not make for good business.”

The speaker is Markus Aarnio. SVP, Ship Technology at Foreship, the independent design consultant which is currently involved in 150 active projects across a range of vessel types that include some of the industry’s cutting edge newbuilding and conversion jobs.

Foreship is the cruise ship industry’s leading design consultant, but also offers a portfolio of services extending to the ferry, cargo ship and offshore sectors. As Finland’s largest hydrodynamics company, Foreship has also developed a range of specific design solutions to enhance ship efficiency, safety and marine environmental performance. One of these is the Foreship Air Lubrication System (ALS).

Reducing drag, or the friction between the ship’s hull and water, offers a direct means of saving fuel. Foreship’s expertise lies in optimising hull forms, but ‘air lubrication’ offers a step beyond that offered by further hull form modification.

The ALS generates a stream of air bubbles which are driven beneath the hull, creating a layer of air that allows the ship to glide more easily through the water. While air lubrication as a concept is not new, the delivery of a commercially viable system is new; the effectiveness of the Foreship solution is based on a system delivering smaller, or ‘micro’ bubbles along the hull’s surface.

Foreship initially developed the ALS for a cruise application, where three years of trials and pilot installations have resulted in its uptake for commercial installation onboard the most advanced ships in the world. The company is now offering the ALS to ferry customers and emphasises that it could be retrofitted to existing ships.

In the cruise ship sector, the consequent reduction in friction has translated into an energy efficient solution achieving equivalent savings of 7-8% in fuel consumption at speed. The air layer also reduces excitation from propellers, which cuts noise and vibration levels in the aft part of the ship.

As far as the ALS is concerned, Aarnio is forthright in his advocacy.

“We are not alone in believing that reducing the friction between the hull and water is a no brainer when it comes to optimising efficiency.

Where we are alone is in having worked with one of the industry’s cruise shipping companies on a commercial basis on this project and, while commercial confidentiality restricts me on what I can say about it, ultimately I believe the entire industry will benefit economically from the Markus Aarnio. SVP, Ship Technology, Foreship work we have done.”

Markus Aarnio, SVP, Ship Technology, Foreship

Carbon credits with Improve operational, environmental and energy efficiencies, reduce fuel costs and emissions, and realise the additional benefits of carbon credits with our premium, biocide-free advanced hull coating, Intersleek®1100SR.

Get the full story at: www.international-marine.com/intersleek1100SR www.international-marine.com/carboncredits www.fathommaritimeintelligence.com

ENVIRONMENTAL TECHNOLOGY

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

PORT OF BERGEN DRIVES GREENER SHIPPING WITH SHORE POWER

Norway is at the forefront of technological developments aiming at making shipping operations more environmentally-friendly. In particular, the country’s famous NOx Fund has enabled ship owners and operators to finance emission abatement technologies. It now looks like Norway is taking its environmental efforts up a notch by installing a ShoreBoX in the Port of Bergen, one of the first shore power systems in a commercial port in Europe.

Spotlight On Sulphur

Norway’s south-eastern coasts are part of the North Sea Emission Control Area (ECA), meaning that ship owners and operators have to reduce the level of SOx emissions to 0.1% while operating in this ECA, including while at berth. Even ships in Norwegian ports outside of the North Sea ECA have to comply with the 0.1% sulphur limit as they fall under the EU Sulphur Directive.

One means of complying with the 0.1% sulphur limit while in port is to use shore-side electricity when at berth. Shore power systems enable a ship to connect to the electricity grid of the country where it is berthed, rather than having to rely on the ship’s generators.

By switching the generators off, the ship produces less noise and vibrations and consumes less fuel resulting in less emissions and a lower fuel bill.

An Industry First For ShoreBoX

Although shore power systems have existed for a while, their use has been mostly confined to Navy vessels. Now, the Port of Bergen,

Norway is taking great strides towards providing the industry with an alternative power source when at berth. It has opted for Schneider Electric’s ShoreBoX solution, a ready-to-use modular system that can be adapted to the different power needs and electrical frequency of the ships. ShoreBoX is fully packaged in a single box, the size of a standard shipping container, and has been designed for space and cost optimisation. The system tracks and reports all data in real time, giving ports and ships visibility into energy consumption, connection times, metering and billing. The installation of the first ShoreBoX system in a European commercial port will certainly make waves in the merchant shipping industry.

OSVs Plug In

ShoreBoX will be used at the Port of Bergen to supply offshore supply vessels (OSVs) servicing offshore platforms in the North Sea. At this port, OSVs are often required to stay at berth for long periods, especially during winter season where sea’s meteorological conditions tend to be more critical. In such situations, the OSVs remain operational and ready to go if required, which generates an important amount of emissions in the port. By implementing Schneider Electric’s ShoreBoX solution, the Port of Bergen is expecting to reduce 95% of emissions created by OSVs. The annual cost of these emissions is estimated at €320,000. If all ships berthing at Port of Bergen were to connect to shore-side electricity, annual savings could even go up to €21 million.

www.fathommaritimeintelligence.com

20

STRATEGIES

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Strategies

NEWS

IMO LAUNCHES FREE ONLINE BALLAST WATER MANAGEMENT COURSE

The ‘Operational Aspects of Ballast Water Management’ online course was launched on 27 April 2015 by the GEF-UNDP-IMO GloBallast Partnerships Programme and the Global Industry Alliance (GIA).

Developed by the GloBallast project with financial support from the GIA, the online learning portal is accessible free of charge and aims to assist stakeholders in the operational aspects of ballast water management.

The course contains four modules: Introduction, Operational Aspects, Survey and Certification, and Compliance Monitoring and Enforcement (CME).

The portal also gives access to an online Resource Library and to the e-learning course. It also has the facility to host free webinars related to BWM in the near future.

Furthermore, the course may be downloaded for free for use offline at a later stage.

21

CATHELCO ACQUIRES HYDRO-ELECTRIQUE MARINE

Cathelco has acquired French desalination and water treatment systems specialist Hydro-Electrique Marine (HEM).

This latest acquiring will boost Cathleco’s position as a water treatment specialist in the maritime industry.

The company provides treatment systems for all types of seawater used on ships including established seawater pipework anti-fouling systems and ballast water management systems (BWMS).

Last year, Cathelco introduced a BWMS based on a combination of filtration and UV CANADIAN SHIPOWNERS ASSOCIATION LAUNCHES technology with capacities of 32m3/hr to BALLAST RESEARCH AND TECHNICAL EVALUATION FUND 1,200m3/hr. The system has received both IMO (International Maritime Organization) The Canadian Shipowners Association (CSA) are contributing $1.5 million to the and AMS (Alternate Management System) establishment of a research and technical evaluation fund for ballast water technology approval. on the Great Lakes and St. Lawrence Waterway.

Currently there is no United State Coast Guard (USCG) Type-Approved technology to comply with ballast water regulations in Canadian and United States waters.

KOREAN REGISTER GAINS CSA members have therefore decided to try to find a solution to protect the marine environment while continuing operations. The main aim of the CSA Research and AUTHORISATION FOR FIRST Evaluation fund is to research the unique issues in the Great Lakes fresh water and on domestic ships (which do not leave Canadian and US waters) and to find technical ASIAN BALLAST WATER LAB solutions to ballast water management.

The unique and challenging conditions which face Canada’s fleet mean they operate Korean Register has become the first Asian specially designed ships on Canadian coastal, Arctic and inland waters with highly skilled classification society to gain authorisation Canadian crew as part of a $35 billion continental marine transportation system. To date, from the US Coast Guard (USCG) to 14 state-of-the-art high efficiency ships worth over $700 million have been invested in to perform ballast water treatment testing as drive marine protection with a range of technologies utilised by Canadian ship owners to an Independent Laboratory (IL).

This authorisation will permit the reduce emissions, discharges and the environmental footprint of shipping.

The CSA hopes that by taking this leadership role, it will grow a research community organisation to carry out tests, inspection and a collective evidence base for the application of ballast water technologies on and evaluations of treatment systems for approval in accordance with the US domestic ships.

Code of Federal Regulation. It is expected that this move will drive forward USCG CRUISE SHIP ORDER FOR GEA WESTFALIA BWMS approval of ballast water systems. System GEA Westfalia Separator Group GmbH reported that they have received the first order for manufacturers who wish to have their systems used in US waters must gain their BallastMaster marineX UV ballast water management system (BWMS).

The BallastMaster marineX has been developed with Canadian UV system specialist USCG type approval in addition to the Trojan Technologies. The contract with a European shipyard covers the installation of the less stringent 2004 International Maritime BallastMaster marineX on two new ships and includes an option for equipping a third Organization (IMO) requirements.

The Korean Register are the third cruise liner.

In addition, ten GEA type OSE separators for fuel and lube oil treatment with Certified classification society in the world to obtain Flow Rate (CFR) and two ViscoBooster units for optimum fuel conditioning are included this status. NSF International and DNV GL are the other two approved societies to in GEA Westfalia’s supply for the cruise ships.

The BallastMaster marine X has received IMO type approval and US Coast Guard AMS date. acceptance. For fresh water, brackish water and sea water, the unit has been approved to the lowest level of UV permeability with maximum flow rate.

www.fathommaritimeintelligence.com

STRATEGIES

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

ONE-STOP BALLAST WATER TREATMENT SHOP Through their Ballast Water Treatment Centre of Excellence, Damen Shipyards Group are taking a pioneering approach to supporting ship owners and operators across the world with finding and fitting the solution that suits their operation.

Last year they launched an alternative to ‘traditional’ ballast water management systems: the world’s first mobile, plug-and-play ballast water treatment system. Damen has also developed the first customised mobile treatment vessel, fitted with Damen InvaSave units, now under construction for service in the Dutch ports of Eemshaven and Delfzijl and expected to enter service during 2015.

The development of this innovative technology is a joint initiative of Damen Shipyards with Dutch marine research institute IMARES, Groningen Seaports, Van Gansewinkel, MEA-NL, and Evers Manders and is partially subsidised by the Waddenfonds, an organisation that focuses on the preservation of the Dutch Wadden area.

“During our research we have found that not one ballast water treatment technology suits all vessels, it depends on their trading routes, the power consumption etc.,” Gert Jan Oude Egberink, manager of Ballast Water Treatment for Damen explains.

He continues, “We have been looking for what we can do to help our customers regarding ballast water treatment and finding alternatives for those owners who may not want to retrofit a ballast water treatment system, perhaps because their ships operate on fixed routes or their ships are too old and make the investment in a system prohibitively expensive. Ports may also need to provide back-up, in case a ship’s onboard treatments systems fail.”

Damen’s system is unique due to the fact that it is a fully containerised mobile ballast water treatment unit which, the company states, will provide ship owners with a cost-effective alternative to retrofitting fixed ballast water treatment systems.

The mobile solution means ballast water only needs treating at the point of discharge, in contrast to fixed onboard ballast water

management systems that require treatment for both ballasting and deballasting.

Damen can deliver the system as a separate mobile container, which can be put onboard or moved around the port on a truck.

Each Damen InvaSave container unit handles 300 m3/h and can be scaled up by using multiple container units.

“This is all in-house technology and is very simple to use – essentially it is a plug & play system in one container,” commentedsOude Egberink.

In addition to its own mobile ballast water treatment system, and truly claiming the title of a one-stop-shop for ballast water treatment, Damen can also advise on type-approved ballast water treatment systems for onboard retrofitting, as well as retrofit engineering and installation. Damen is able to conduct the onboard survey, 3D scans, onsite surveying and pre-engineering, the integration plan, purchasing, manufacture the piping, make all the preparations, do the installation and commissioning, carry out the trials, plus provide training and supply the ballast water management plan.

“If vessels are coming in for their special survey when the system has to be installed, we can do both things at once, providing a turnkey solution,” Oude Egberink says. “We can install Damen selected technology or our customer’s choice of unit at a Damen or a non-Damen shipyard or afloat. I think there is no other company that has this one-stop-shop, with both the yard and engineering capacity and a vast knowledge of shipbuilding.

We can be the ballast water treatment total solution provider and our customers have a trusted partner and peace of mind.”

www.fathommaritimeintelligence.com

22

E T N FER IPPI HIBI N X H O E S C EVA FOR A N& N E O I • C T I OCE Y N B E H I & P R H S A X T FE R OGR VA E POR CON N E , SHO A & Y N F E F G • N C R O O E HY TIO I ING, E EN TS & RAP D HIBI R L R HinIPP G X I O S O O E U Confirm your position H P N B R A , A IP FS Y & NEV SHRussian E FO at....

OCE , OF ,the Cmarket ERG ION G G & N N T N N E E I S I I R T B P D E I E H IL IP F OR POR CON A EX R SH IPBU FSH OGR V H F O & N E F S O A N N , , E E O G • TI IN Laird RENC ING & OC E ENE PHY IPPCammel

By Andy Askham, Technical Consultant, HIBI A E S H X F R T S E N G R R OR CO is rarelyNanEVA , PO ANO I SHO Whilst history shows us thatF the lot of the N ship&operator Y E F G F C • O R O , SH O I be particularly Y E , G Tto H & I N easy one, the next few years areIlikely challenging G N P I B E S N A I P H R RT as environmental regulations demand action MARPOL ORE UILD OR SHIP H NO- inGparticular , PO B S A Y & CO P F I E G F N H F Annex VI and the Ballast WaterO Management Convention.

C R O S O E E I H ENwhen ING, IBIT ING, ENC The clock continues to tick inexorably R to E a time a ship must P H D R RAP L P X E I I O G E F H N O BU where S A comply with regulations and the ship determine SHowner hasHtoIP N V & CO FOR GY CEA • NE ,S best to place his trust and undoubtedly their hard-earned cash.

N O E G Y ER O C & I N H N I N T 5 P E I S P E 1 0 A Rand firm orders Despite a significant increase in both enquiries IB RT RE ER 2 OGR NFE distillate EXH HEO , PO N EMB PBUIL O S for ballast water management systems (BWMS), (marine T Y A A F C P V G E F & NE with a& OC ER , O, 22 - 25 S G, SHI N • gas oil – MGO) conversions and exhaust gas scrubbers G E N Y I S E IN SIA ERE ILRD APH surge of orders expected later thisRyear, it is not surprising F RUS HIPP ORTthat FSHOR U , N P G B O , IP BU OR S Y C many ship owners are choosing to delay any They ,are OF , TS. PHETERSC F N& ERGdecision.

G NEV G E O N I N • I EN I hoping that innovation will yield smaller, cheaper and L more efficient T S I D Y P N B P E H I simplest of I I R Uthe technical solutions, and perhaps not realising that RAP EXH IPB R SH NFE G H A ORT O O O S V P F C N E , installations could take upwards of eighteen months from project E A & Y N E G • N NC commencement to commissioning. The spectre NER & OC ITIinO PHY ERE of bottlenecks E B A ING, F S I E T R D H R L R G X equipment supply, shipyard resources and installation engineers is I O O U PO AE EAN already worrying the industry.

FFSH HIPB GY, C NEV O S E FO R O , , C E G G & N N N N E E Cammell Laird’s message to the ship operator is, “start planning S I I R ORTVI compliance ORE UILD HIPP NFE now”. That applies equally to MARPOLPAnnex H EXH S B O S P C A R I F V H F O & E F S (scrubbers or MGO conversions) and BWMS installations.

With aG, N ,O Y•N INis NCE INGincluding ITIO H P E B track record of retrofit and conversion projects, what I & OC P P R I H A E S H X F R T S E N G R probably the most complex BWMS retrofit installation FOR undertaken EVA , PO ANO &theCO Y N E FSH N G F C • anywhere, the shipyard is able to assist at every stage of O R O O I Y E , T H N G S& process.

AP HIBI RE E BUILDIN ORT HIP O OGR P S H N Not all shipyards are as capable and experiencedAin retrofit , S R Y P F I O E G F H OC installations but it is essential that planning with the involvement CE F NER G, O G, S E N N N I IBIT I E E P H D R R of a suitably qualified shipyard starts as early as possible.

Every L P X E I I O E F U H SH or BWMS ship will have different requirements and a scrubber CON EVA HIPB OR S N & S F CEA • , N O E G Y O C installation can be complex. Lead times for equipment and Class & I N H T P S PI EN R HIBI approval should not be underestimated. Pre-engineering during GRA ORT FEaR X P O N E , N O SHO Y A F Cbe part of NEVA G E scheduled dry docking or by utilising a riding squad&can F R C O E O the process and help mitigate ship downtime.

ING, S& NG, E EN HY • I D T R P L P R I A O P I U R and carryY, PO The first step is to gather detailed technical information SH R SH HIPB G OFF S O R , out an initial investigation. In the case of a BWMS installation, , F E G G INTERNATIONAL E ON & I N ENelectrical ILDIN C I THE 13TH T I P N for example, this will involve the ship’s ballast system, IB IP RE A PBU EXH R SH capacity and operational requirements, enabling an outline NFE HIdesign A O O OGR S V F C N E E A & N with potential equipment recommendations to be produced for the • R ENC OCE AND ION HYEXHIBITION TMARITIME & I P client’s consideration.

ENE B A FER S I E T R H R R G X O O A detailed integration design can then be undertaken. ThisV will PO B AE EAN FFSH GY, C NE O SHIP R include a description of modifications, removals and installations, O , , E G G & N N OF RUSSIA N CONFERENCES E shipping routes of equipment to the designated space and allO E RTS ILDI IPPI ORE U H P data H S B ONF S P required for installation. Following the client’s approval, the detailed C R I F H F O & F S O • design is submitted to the ship’s class society for approval.IClass NG, TION ING, NCE I P E B I PHY P R I H A E societies are already warning that their turn-round times are likely to SH X F R E G CON extend way beyond the current average of two months as greater FOR EVA ANO & Y, P N E N G C • O R O I Y pressure is applied to finite resources.

E T & PH HIBI E EN UILDI An installation may often require equipment with long lead RTS R GRA O O O P H N B S Y, times, and these will increase as the demand for BWMS andCEA OFF SHIP NCE O ERG , , N G G scrubbers increases. It is only at this stage that such equipment E N IN E RE IPPI FER can be ordered, and pre-fabrication of pipework, equipment seats UILD H N B S SHO O P I NEV and ancillary structures can be undertaken. The installation phase &C SH FOR • , N E G Y O C H N TI may well involve a short dry dock period (reduced or eliminatedPIN T RAP ERE HIBI G F X POR O N by thorough pre-planning) but will certainly require skilled and E , N O Y A A C V G experienced project management, surveyors, installation and & OCE NER • NE & E Y ING, S E H D commissioning engineers. Pre-planning will ensure that all T R P L R I A O O R resources are available when they are required.

FSH Exhibitions: IPBU Y, P Contact FDolphin H G O S OR S R , , F E G G With extensive shipyard resources, experienced staff and global E N N N I E C I I reach, Cammell Laird can minimise interfaces and schedule work REN UILD info@dolphin-exhibitions.com HIPP E B S F P EXH I R N A O O for maximum efficiency.

SH V F C E E Meticulous planning and project management is essential.

ON & Y•N ENC www.transtec-neva.com OC I H R T I P E A F S& IB T R H R G X O O AE SH Y, P EAN G C NEV OFF R O , E G & N TS P DIN EE POR HOR SHIP BUIL

START

PLANNING NOW

5 1 0 2 A V E N

23

GREEN SOLUTIONS

YOUR PARTNER FOR BALLAST WATER COMPLIANCE PORT AND TERMINAL SOLUTIONS Ballast Water Management – what to choose? Retrofit your vessel with a treatment system or have a third party handle your ballast water? What to do when an onboard system fails?

Damen has the alternative solution, InvaSave - mobile ballast water discharge technology.

Researched, built, proven.

As of now, you can handle BWT at the discharge easily. Container sized, scalable, self-sufficient and ready for multi-modal transport, truck or barge.

not just products e, nc lia mp co g in fer of in e id pr We take The Damen family WWW.DAMENBALLASTWATERTREATMENT.COM

STRATEGIES

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

ClassNK PEERLESS ClassNK-PEERLESS delivers an unrivalled 3D software modelling capability that aims to shorten the BWMS retrofitting process from the current 7-10 day period to just 1-2 days. Fathom interviewed ClassNK’s Executive Vice President, Mr Yasushi Nakamura to find out what makes this such a unique service.

1

Why Has ClassNK Positioned Itself In Such A Central, Driving Role Of Maritime Research And Development?

25

Since our establishment in 1899, ClassNK has been committed to ensuring the safety of life and property at sea and protecting the marine environment. Classification itself was originally created to provide a rational means for registering and evaluating the conditions of ships, and later for developing and maintaining standards for ship construction and maintenance. With the introduction of international regulations such as SOLAS and Load Line, classification began working with flag administrations, serving as a global regulator for the maritime industry.

The advancement of the industry has also brought new challenges. The industr y is now faced with incoming environmental regulations that affect a broad range of issues, such as ballast water, emissions, and ship recycling. For ClassNK to continue ensuring the safety of life and property at sea and protecting the marine environment we needed to work not only as a regulator, but also as an innovator for the industry. This dual-role combined with our services and resources enabled us to become the infrastructure that is now essential to the maritime industry.

As a classification society we feel that it is our responsibility to provide the industry with new technologies and solutions, and the only way to achieve this is through practical research and development. As such, R&D is not just supplementary to our services at ClassNK, it is an integral part of our work.

As the infrastructure for the maritime industry, we support the efforts of each sector of the industry, and work together to develop the solutions they want. Today, R&D is a major focus point for ClassNK, which is why we invest a substantial part of our annual revenue into R&D activities.

2

Why Has ClassNK Chosen To Focus On Joint R&D As Opposed To Conducting Independent Research?

While ClassNK carries out independent R&D projects, it is true that the vast majority of our R&D activities are joint endeavours with the industry. Our position as an independent third-party and non-profit organisation allows us to allocate our resources to solutions that benefit the entire industry. Rather than focusing on just our own activities, working in cooperation with industry

Mr Yasushi Nakamura, ClassNK Executive Vice President

partners means we can expand the scope of our R&D projects, and speed up the development of a wide range of practical solutions.

In 2009, we set up our Joint R&D for Industry Program to hear proposals for new research from organisations throughout the maritime industry, and provide research and financial support to projects we feel have the potential to provide benefits to the entire maritime community. By working with specialists from all over the industry, we can help realise the development of innovative solutions which otherwise may have been hindered by a lack of necessary resources. Through this programme we have supported more than 300 projects to date, with 200 projects already completed. We have supported the development of a range of solutions for incoming environmental regulations. By working together, we have turned the challenges facing the industry into opportunities.

3

Why Was ClassNK-PEERLESS Developed?

The ratification of the current IMO Ballast Water Management Convention will bring in new regulations requiring all vessels over 400 GT to install approved systems. The convention means that some 40,000 vessels will need to be retrofitted with ballast water management systems (BWMS).

Retrofitting BWMS is both a timely and costly process, bringing to light the need for new technology to ease the burden on owners, operators, shipyards, and designers. One of these technologies was the development of commercially viable 3D laser scanners.

www.fathommaritimeintelligence.com

STRATEGIES

FATHOM MARITIME INTELLIGENCE

In May 2012, we began working with academic and industry partners to further the application of 3D laser scanners in design. The objective was to minimise design lead times and disturbance during the retrofit process. As part of the project, we helped develop 3D laser scanners to collect high-density 3D data to create digital models of engine rooms and other structures, which can be used directly in the creation of 3D CAD blueprints.

In order to improve the speed and accuracy of the conversion of 3D CAD data, we worked together with software company Armonicos Co. Ltd., to develop a specialised software package that converts point data created by the 3D laser scanners directly into CAD data for use by shipyards and designers. The result was ClassNK-PEERLESS; software that greatly speeds up the process of transferring point cloud data to 3D CAD by allowing users to easily identify detailed structural features to create the required data.

4

How Does ClassNK-PEERLESS Address The Bottleneck For Retrofitting Ballast Water Management Systems?

After the ratification of the Ballast Water Management Convention, owners and operators will be under pressure to retrofit their vessels with BWMS. This increased demand for urgent retrofits could potentially lead to a backlog at shipyards, exacerbated by long design lead times when creating 3D vessel models. Developing an accurate plan of the engine room with the precise locations of pipes and equipment is a lengthy and

ISSUE 06.2015

difficult process. Using 3D scanners and ClassNK PEERLESS to create three dimensional images of the entire engine room allows the shipyard to plan and troubleshoot the installation process, and carry out retrofits as efficiently as possible.

As the design work involved in retrofitting BWMS is both a timeconsuming and intricate part of the process, streamlining this work will have a direct and immediate impact on alleviating the pressure on shipyards and designers, as well as speed up the entire process.

5

What Achievements Can ClassNKPEERLESS Deliver?

ClassNK-PEERLESS offers tangible benefits not only to the shipyards and designers carrying out the retrofits, but also to the owners and operators who have ordered the retrofits.

Where previously vessel measurements were taken manually, 3D laser scanners have automated the process greatly reducing the amount of required man hours. While conventional 3D modelling processes took anywhere up to two weeks, ClassNKPEERLESS allows designers to leapfrog 2D drawings and work straight from detailed and accurate 3D CAD data, reducing the design process to some two days.

By streamlining the entire retrofit design process, ClassNKPEERLESS will greatly reduce vessel down time and costs for owners and operators.

26

ORDER YOUR COPY NOW Part One - The Framework How to develop an environmental & efficiency management system using a modular approach.

Part Two - The Handbook A compendium of technical and regulatory information and advisory resources.

Part Three - The Templates

30% DISCOUNT FOR BIMCO MEMBERS

Available via: www.fathomshipping.com www.bimco.org

An electronic library of logbooks, forms and data collection tools.

DEVELOPED BY

fathom

www.fathommaritimeintelligence.com marine | energy | environment

SUPPORTED BY

ELECTRONICS & SOFTWARE

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Electronics & Software

NEWS

27

CLASSNK-NAPA GREEN SELECTED FOR ASIAN LNG CARRIERS

VIDEOTEL E-PROGRAMME TO ADDRESS FUEL SWITCHING CHALLENGES

DNV GL LAUNCHES FUEL SAVING HULL, PROPELLER PERFORMANCE MONITOR

ClassNK and NAPA have begun the installation of new performance monitoring software on an Asian LNG carrier’s fleet.

The new ClassNK-NAPA GREEN system is a performance monitoring solution which is fully compatible with NAPA’s existing Gas Tanker Loading Computer. The system provides a ‘real time’ 360° view for the LNG carrier market.

The performance monitoring solution ensures transparent and accurate m e a s u r e m e n t o f p e r fo r m a n c e a n d efficiency, including measurement of boiloff, for LNG carriers which have a unique operational profile.

The system benefits from easy-to-interpret measurements and can be remotely and automatically passed onto shore-based reporting systems. This permits data to be immediately shared between owner, operator and chartering cargo owner.

Videotel has released a new programme entitled, “The Practical Management and Switching of Marine Fuels”, in response to concerns from the United States Coast Guard (USCG) regarding machinery space fuel leakages.

The programme provides advice on how to carry out effective fuel changeover procedures when entering Emission Control Area (ECA) to comply with MARPOL Annex VI regulations.

The programme considers issues and incorporates best practice solutions to factors such as fuel oil service and day tank modifications, establishment of a fuel oil system inspection and maintenance schedule by the crew, checking the operational efficiency of sensors, controls and alarms and ensuring fuel oil switching is done outside busy traffic lanes.

Classification societ y DNV GL has announced the launch of a new fuel saving analytics module as part of its ECO Insight offering.

The module uses computational fluid dynamics (CFD) calculation methodologies to measure the effect of propeller and hull fouling on sailing performance.

Ac c o r d i n g t o D N V G L , t h e C F D calculations take account of factors such as speed, draft, trim, weather and other operating conditions that create a gap between a ship’s theoretical sailing speed and actual speeds achieved, more accurately than existing proximate or experimental methods.

Although there is a consensus among shippers that hull and propeller m a i n t e n a n c e i s b e n e f i c i a l fo r f u e l consumption, said DNV GL, the question of when and how the procedure should be carried out has not yet been addressed systematically.

MARORKA WINS UASC ENERGY MANAGEMENT CONTRACT Marorka has secured a contract with United Arab Shipping Company (UASC) to deliver ship performance monitoring solutions.

The ship performance monitoring solutions will help UASC to optimise ship performance and subsequently seek to reduce the fuel consumption and carbon emissions of their fleet.

COMPANY PIONEERS FREE TRIALS OF PREVENTATIVE MAINTENANCE SOFTWARE Helm Operations, a Canada-based software developer and subsidiary of ClassNK, has set out to transform the industry by offering free trials of their preventative maintenance software.

This move sets a precedent in the workboat industr y and may also be an initiative that resonates across the international shipping industry.

The Helm CONNECT Prevent ative Maintenance software includes five apps to allow port engineers and maintenance managers to schedule equipment repair and replacement work, track tasks by status and be alerted to issues which require further action. The five apps available within the software are: Engine Log, Maintenance, Action Items, Inspections and Shipyard.

Information is automatically synched onboard with the onshore management

system to permit a one-time entering of data to maximise efficiency. Additionally, the Helm CONNECT system is flexible and allows configuration to individual ships to fit the needs of each customer’s processes. Templates, checklists, routines, and inspections can all be configured with the software.

Helm launched the free trials of their CONNECT Preventative Maintenance software at the Workboat Maintenance & Repair Conference and Expo in New Orleans.

The company believes this is the first step which shows the possibilities of affordable preventative maintenance to the industry.

More than 100 companies have already signed up for the free trials, including fishing boat owners, diving & research and passenger vessels in addition to shipyards

www.fathommaritimeintelligence.com

which have recently been in discussion with Helm regarding adoption of their preventative maintenance system. Helm’s existing software is already used by more than 1,000 vessels around the world.

However, it is not just the workboat industry which requires such technology.

The international industry would also benefit from such software to improve operations through managing maintenance tasks and scheduling repair using a simple interface to reduce time lost understanding the software and the potential for incorrect usage.

This is increasingly important in today’s shipping industry where environmental regulations and compliance are driving the need for maintenance operations for efficient shipping.

ELECTRONICS & SOFTWARE

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Using Big Data To Address Big Issues A cloud-based, holistic approach to onboard machinery management is ClassNK’s answer to the industry’s pressing need for a coherent approach to utilise equipment monitoring, data analysis and maintenance work records.

In recent years, the use of sensor data to monitor onboard equipment conditions and to prevent breakdowns has become widespread in shipping, and continuous monitoring and diagnostics based on collected sensing data are now key tools used to ensure the safety of operations and reduce the lifecycle cost of onboard machinery.

To address what is becoming an increasing need for systems that ensure the safety of operations and reduce machinery maintenance costs, ClassNK has teamed up with subsidiary ClassNK Consulting Service Co. Ltd. to provide ClassNK CMAXS, a highly reliable machinery maintenance system.

ClassNK CMAXS gathers data and information in the cloud database via two onboard applications; CMAXS PMS and CMAXS LC-A. Stakeholders can view their fleet data at any time, from anywhere in the world using the cloud-based database.

ClassNK CMAXS comprises of CMAXS PMS: an equipment maintenance planning and record management system which references the data and maintenence information inputted by crew members. CMAXS PMS maintenance management functions log maintenance work carried out on the ship, allowing crew members to carry out work during a voyage in accordance with a maintenance plan created onboard, and develop a report at the completion of maintenance work.

At the same time, the spare parts management functions of CMAXS PMS allow users to track parts consumed during onboard maintenance work, place orders with suppliers and log parts delivered to the ship. By optimising the inventory process, the spare parts management functions help reduce dead stock and cut unnecessary costs.

In detail, CMAXS LC-A is a condition monitoring system which uses sophisticated analysis software to achieve condition monitoring and automatic diagnosis of onboard equipment to enable true “preventive maintenance”. The development of

many existing systems focus just on machinery diagnoses carried out shore side and manually. This is where the methodology of CMAXS LC-A differs from conventional systems. CMAXS LC-A is an onboard solution and covers everything from sensing to maintenance work support functions without remote support.

CMAXS LC-A performs abnormality determination by “mapping method” and “ANACONDA”. The first method is a mapping method where engineers develop maps of normal conditions based on their past experience and equipment characteristics.

The second method involves the ANACONDA (Anomaly Analyzer for Correlational Data) technology developed by IBM, which uses correlations between measurements. ANACONDA draws on data collected by the sensors and analyses the relationship between each sensor and uncovers any abnormal values.

Since the first method requires an in-depth knowledge of the equipment and extensive data analysis experience, the second method not only makes it comparatively easy to apply abnormality detection to measuring data but it also makes it possible to detect previously overlooked dependencies.

CMAXS LC-A manages the monitoring and diagnostics functions of different types of shipboard equipment centrally, enabling crews to take quick and appropriate actions to issues as they arise. That is why CMAXS LC-A can be used as an integrated platform for a wide range of onboard equipment.

“At ClassNK we are committed to using our extensive knowledge, obtained through years of surveying, to make machinery inspection more efficient. Our aim is to provide an even more advanced and reliable monitoring system capable of assessing a wide range of engine room equipment by enhancing the functions of CMAXS LC-A,” says General Manager Takashi Nagatome, ClassNK Consulting Service Co. Ltd. The existence of this platform as an infrastructure will make it possible to deliver a high level of support easily, including abnormality detection, condition diagnosis, and troubleshooting by linking the necessary parameters and content. ClassNK believes CMAXS LC-A will help not only users but also equipment manufacturers to understand the condition of their equipment and allow them to reap huge benefits at minimum cost.

www.fathommaritimeintelligence.com

28

ELECTRONICS & SOFTWARE

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

THE EU MRV: INSIGHTS FROM MEPC 68

By Isabelle Rojon, Fathom Maritime Intelligence

29

At the 68th session of the International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC) held in May, representatives of the European Commission (EC) and European Parliament took the opportunity to tell delegates the ins and outs of the recently adopted European Monitoring, Reporting and Verification (MRV) Scheme.

Why MRV?

EC representatives Laurence Graff and Heiko Kunst led the discussions and one point was clear: although the EC is in favour of a global agreement, the pace of the development at the IMO to develop a global MRV scheme and put in place stringent greenhouse gas (GHG) reduction measures is not deemed fast enough to combat climate change. They pointed to findings by the Third IMO GHG Study 2014 according to which maritime carbon dioxide (CO2) emissions are projected to increase by 50% to 250% in the period to 2050. These projections are not compatible with the internationally agreed goal of keeping global warming below 2°C, which requires worldwide emissions to be at least halved from 1990 levels by 2050.

Furthermore, they made clear that maritime transportation holds the unique title of being the only industry sector within the European Union to not be covered by any EU GHG reduction measures. Coupled with the slow progress at IMO, this catalysed the formal adoption of the EU MRV Scheme by the European Parliament on 28 April 2015. According to the officials, the regulation is expected to enter into force on 1 July 2015.

What You Need To Know

The EU MRV regulation establishes an EU system for monitoring, reporting and verification of CO2 emissions from maritime transport, building on existing data collection tools and already monitored data. With several exceptions, concerning for instance fishing vessels, it will apply to all ships (regardless of their flag) above 5,000 GT calling at EU ports, and cover their incoming and outgoing as well as intra-Union voyages.

From 1 January 2018, ships will have to monitor their CO2 emissions on the basis of existing documentation about fuel, distances travelled and cargo carried. This data will be independently verified and then reported annually to the ship’s flag State and to the EC, which will assess them biannually.

Concerns By The International Shipping Community

A great volume of the debate ensuing the presentation by the EC at MEPC 68 focused on how the EU MRV links to the international MRV discussions currently underway at IMO. In the view of the EC representatives, the EU MRV Scheme should be seen as a contribution to the global MRV discussions. If an international MRV agreement is reached at IMO, the EU regulation will be reviewed to make it consistent with the international requirements. Furthermore, it was argued that there was still time for the IMO to reach an agreement before monitoring under the EU MRV would become mandatory as of 1 January 2018.

The International Chamber of Shipping called into question the predictions presented in the Third IMO GHG Study 2014, arguing that they were economists’ predictions about what might possibly happen in the future, whereas actual figures showed a downward GHG emission trend. It therefore seemed like drastic measures were imposed on the industry based on mere predictions.

In turn, the EC representatives defended the predictions, stating that the Third IMO GHG Study 2014 represented the best knowledge to date and that this knowledge described a clear upward emission trend. They recognised that progress had been made, sending a good and important signal, but that more progress will be needed to tackle the impending climate change challenge. Furthermore, the idea behind the EU MRV was precisely about making sure that policies were not based on estimates, but rather on real data.

Responding to the audience’s continued criticism of the European Parliament’s decision to adopt the EU MRV, Bas Eickhout, Member of the European Parliament, stated: “From an EU Parliament perspective, shipping should also comply with the reduction of GHG emissions. When the European Commission proposed only a data collection system for shipping, they were heavily criticised by the European Parliament. It is difficult for Parliamentarians to explain to the public why certain actors should be excluded from regulations.”

He continued: “From my point of view, we would have loved to see more. But we also appreciate the points of discussion at IMO. We want to make sure we do the right thing both for the climate and for the industry.”

www.fathommaritimeintelligence.com

GUEST FEATURE

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

No Distractions From LiquefAction The joint industry R&D Project for Bulk Carrier Safety LiquefAction is expected to provide a better understanding of cargo liquefaction, and develop recommendations for ship design and operations that avert or mitigate future casualties.

Despite 75 large ship losses, leading marine insurer Allianz Global recently described 2014 as “the safest year in shipping for 10 years”, noting a 32% year on year decline in casualty numbers.

However, liquefaction remains a live and present danger for the bulk carrier sector. Over the past decade liquefaction has been linked to the loss of more than a dozen bulk carriers and over 90 seafarers. The Allianz Global Safety and Shipping Review 2015 identifies the topic as one of the “key risks to the future safety of shipping”.

As the world’s leading classification society in the dry bulk sector, the topic is understandably high on the agenda at ClassNK. Its priority is clear through the Society’s participation in the joint industry R&D Project for Bulk Carrier Safety - LiquefAction. Partners include Hamburgische SchiffbauVersuchsanstalt (HSVA), Hamburg University of Technology (TUHH), Ecole Centrale de Nantes (ECN), and the Institute of Science and Technology for Transport, Development and Networks (IFSTTAR), with ship owner Oldendorff Carriers invited to participate.

The project’s outcomes are expected to benefit the bulk carrier sector as a whole, and are expected to feed into relevant safety guidelines such as ClassNK’s Guidelines for the Safe Carriage of Nickel Ore. INTERCARGO has termed nickel ore “the world’s most dangerous cargo”, but part of the liquefaction project examines the assumptions that lie unchallenged behind such statements.

For example, ships go down quickly and catastrophically as a result of liquefaction, but do existing regulations really describe the conditions that cause cargoes to act under liquefaction? And would their full application avoid such circumstances?

These are complex questions; not all cargoes with the same

name necessarily have the same mineralogy profile, for example.

Cargo profiles may differ regionally and even from within the same mine. Sampling methods may also be due for review.

Again, empirical evidence suggests that Asian nickel ore is highly susceptible to liquefaction, whilst other sources are not.

Meanwhile, most fatalities with nickel ore have occurred in relatively light sea states, often within similar timeframes after leaving the load port.

The condition of cargo on loading and the loading process itself therefore warrant close attention. Capt. Paul Jeffrey with Oldendorff Carriers GmbH comments that the typical geared vessel will see about 4,000-4,500 grab loads, dropping 10-15 tons of cargo from a height of 10-15 meters above the cargo. This has the negative effect of imparting energy into the cargo, liberating water, and driving out air. For Oldendorff, to help mitigate these effects, their best practices for loading such cargoes includes using a ‘soft drop’ method.

Further research may help define the real consequences of such compaction, and the safety benefit of implementing ‘soft drop’ loading techniques.

Explicit in the first and second editions of ClassNK’s guidelines on nickel ore is the precondition that cargo should not be loaded with moisture content over the defined transportable moisture limit (TML). However, the guidelines also include warnings on measurement errors, environmental conditions during voyage and other factors that could cause liquefaction even if the moisture content is less than the TML. Amendments to Section 4 of the International Maritime Solid Bulk Cargoes (IMSBC) Code, which became mandatory from

As the world’s leading classification society in the dry bulk sector, the topic is understandably high on the agenda at ClassNK.

www.fathommaritimeintelligence.com

30

GUEST FEATURE

31

FATHOM MARITIME INTELLIGENCE

1 January 2015, requires the shipper to provide a certificate, signed by a port State-recognised organisation clearly stating the TML of a cargo provided that the cargo is categorised as Group A, which is defined as cargoes that cargoes that may liquefy.

Vessels can carry cargoes subject to liquefaction even if the moisture content is above the TML, as long as the ship is “specially constructed or fitted to carry the cargo, and if evidence of approval by the Administration is stored onboard the ship”.

The second edition of ClassNK’s guidelines on nickel ore include the world’s first hull structure and stability requirements for “Specially Constructed Cargo Vessels”, released as part of revised guidelines in February 2012. The requirements have since been approved by Panama, Japan, the Marshall Islands and Liberia, have been recognised by INTERCARGO, and went on to secure the Seatrade Safety at Sea Award in 2013, building on the reputation of the first edition which was awarded the Lloyd’s List Global Safety Award in 2012.

However, in the interest of safety, some in the industry have called for re-evaluation of “low risk” cargoes, such as bauxite, which remains a ‘Category C’ cargo as defined under the IMSBC Code – the least dangerous category from a liquefaction point of view. Allianz also raises the point “whether the list of cargoes in the A, B and C categories in the IMSBC Code needs to be reassessed.”

Cargoes may have wide ranging properties, both physical and chemical. Cargoes should also be considered on their own merits, especially those that may substantially differ from that indicative in the IMSBC Code.

Action by regulators to sharpen definitions on or reclassify cargoes within the IMSBC Code will surely be welcome, but the LiquefAction project is based on the premise that they do not provide an exhaustive response to the root causes of the phenomenon. It is surely worthy of note that accidents have occurred with vessels carrying screened bauxite products, effectively outside the standard run-of-mill grade envisaged when bauxite was originally introduced into the BC Code – the predecessor of the IMSBC Code. Screened products may or may not benefit from a ‘new’ classification. Carriers should certainly be prepared to question cargoes and trades they might be unfamiliar with.

“Despite the positive steps that have been taken towards prevention of shipping accidents, there is still much more to be done,” says Yasushi Nakamura, Representative Director and Executive Vice President of ClassNK. “A greater level of support and guidance is needed across the board to ensure safety”, he continued.

ClassNK points to a lack of empirical study focusing on the excitation effects on the cargoes caused by dynamic motions from waves and the vibrations from ship engines.

“The contribution from the ship and the sea conditions tend to be disregarded or addressed in a superficial manner, without taking into account the complexity of the problem,” says Mr. Nakamura. “ClassNK is convinced there are issues that need to be addressed in a holistic and comprehensive manner.”

Ship motions and the frequency range and amplitude that cause liquefaction of a given cargo with given moisture content over specific time periods are central areas of study within LiquefAction. Modelling the phenomenon’s effect on stability by taking into account dynamic behaviour is also critical. Both factors will contribute to qualifying and quantifying preventive and mitigating measures in ship design and operation.

Capt. Paul Jeffrey of LiquefAction group partner and ship owner Oldendorff comments: “We need to look at the puzzle with a forensic viewpoint, working backwards and involving not just academic science but also empirical science – to avoid assumptions. We know that large ore carriers have made frequent ocean passages safely with the presence of a ‘wet base’, the result of natural moisture redistribution downward

ISSUE 06.2015

within the cargo column. Empirical evidence would therefore suggest there are factors at play not being considered in our general understanding of liquefaction.”

“I’m hoping the ship and cargo modelling that the LiquefAction research will define can be used to help simulate and explain the empirical observations reported by survivors of real casualties.”

Capt. Jeffrey says that the various mechanisms which can lead to cargo instability, which are currently “lumped together as liquefaction”, may not necessarily be the same. Slope failure or free water, for example, have specific dynamics. “We cannot conclude necessarily that ores with moisture content below TML will not, in fact liquefy; there being other engineering principles to consider.”

To quantify a cargo’s liquefiable potential by mass and location where it is most likely to occur within the cargo are other variables needing research.

The phenomenon of ‘expressed water’ at the cargo’s surface, whether it be from pore pressure alone and/or some other mechanism, has been reported since the 1960s, but is still not fully understood, he says. “Should we be able to predict the propensity for expressed water over a wide range of cargoes, then perhaps we’d have a better understanding of the ‘liquefaction’ risks that may in turn help explain why we see variances.”

According to HSVA, LiquefAction is addressing both design and operational vessel perspectives, “based on extensive experience and accident data, numerical modelling and simulation concerning the behaviour of granular cargoes in various modes of motion”.

The results of this research will also be employed in the dynamic stability assessment of bulk carriers and general cargo ships under sea conditions similar to those recorded in real accidents.

Capt. Jeffrey is also hopeful that the LiquefAction project might provide further insight into the consequence of a dense surface level slurry occurring with or without a substantial sea state.

One plausible theory might suggest an instability that is initiated by a surface level slurry (liquefaction) sufficient to cause free surface and ensuing ‘angle of loll’ (angle of list) to be developed.

The subsequent regaining of neutral or even positive stability at this large angle may be supported by observed account. At these large ‘angles of loll’ the free surface effect is significantly reduced with the slurry now finding itself nestled within the ‘v’ shaped wedge between the ship side boundary and the cargo’s surface.

The weight of the slurry is now to one side and although the free surface is drastically reduced, the resulting displaced weight maintains the permanent list. This comprises the first of a twopart rolling motion that may merit further study.

“Similarly, considering conventional models of liquefaction, we also need to investigate how a dense viscous medium may have sufficient mass and momentum to cause a large angle of list (angle of loll), yet not enough to fully roll the vessel in one continuous motion.”

“Continuing this theory and its perceived ‘two-motion roll scenario’, is that the initial large 45 degree list subsequently will eventually cause the cargo to ‘avalanche’ at some point in time. This mass cargo movement is suspected to deal the ‘death blow’, rapidly capsizing the vessel in mere seconds, seemingly corresponding with reports by survivors.” This secondary roll is known to occur within minutes or up to several hours after the initial instability.

“The proposition that cargo liquefies top-to-bottom or perhaps due to a wet base is itself questionable,” says Capt. Jeffrey.

“The true value of the project will be seen when science based on empirical evidence questions the assumptions used in the standard liquefaction model. There’s just simply a lot we don’t understand as yet.”

The project team’s innovative experiments and scientific modelling will expand upon the valuable framework already done by others, and help contribute to the collective knowledge so greatly needed.

www.fathommaritimeintelligence.com

FUELS & EMISSIONS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Fuels & Emissions

NEWS

WORLD’S FIRST LNG POWERED CONTAINER SHIP LAUNCHED

FINNISH RESEARCH SHIP EXPERIMENTING WITH BIO-OIL FUEL

WÄRTSILÄ SAYS NEW PUMP IS “IMPORTANT ENABLER” FOR LNG BUNKERS

TOTE Inc (TOTE) has launched the world’s first liquefied natural gas (LNG) powered container ship, the Isla Bella, in San Diego.

The Marlin Class container ship will begin service in the fourth quarter of 2015 between Jacksonville, Florida and San Juan, Puerto Rico.

The Marlin Class ships are the first cargo ships in the world to run on LNG, and according to TOTE, which partnered with General Dynamics NASSCO to build Isla Bella, they represent a new standard in safety in the company’s long-term commitment to Puerto Rico.

By switching to LNG, TOTE says it will reduce NOx emissions by 98%, SOx by 97%, CO2 by 72%, and particulate matter by 60% in the Puerto Rico trade.

The Finnish environment institute SYKE has begun experimenting with using biooils made from food industry byproducts as marine fuel aboard its marine research ship, Aranda.

The institute noted that early this year, the Aranda had already been using biooils, which are made from products such as vegetable oils and fish guts, for heating purposes.

According to SYKE, the aim is to ultimately reduce the ship’s carbon emissions as the proportion of bio-oil used increases.

The bio-oil was created by Finnish shipping company VG-Shipping at its manufacturing plant in Uusikaupunki, Finland.

Wärtsilä Corporation unveiled its new Wärtsilä Svanehøj ECA Fuel Pump, saying it is an “important enabler” for the use of liquefied natural gas (LNG) as a marine fuel.

According to Wärtsilä, the advantages of the new pump include having no tank connections below liquid level, no electrical components inside the tank, and hardly any contribution to the generation of boil-off gas.

In addition to improved efficiency, this enhances the operating safety of the new pump as well as ensuring reliable operations regardless of weather or thermal conditions.

The new pump has been designed to be compatible with Wärtsilä’s LNG Pac fuel bunkering and supply system, and with Emissions Control Area (ECA) regulations in mind.

NEW MARINE ENGINES TESTED AND CERTIFIED TO USE ETHANE Wärtsilä Corporation has announced that its 50DF marine engine has been tested and certified to run on ethane (LEG) fuel.

The tests were conducted in cooperation with Danish petrochemical gases and natural gas transporter Evergas.

The ability to burn ethane boil-off gas as engine fuel is expected to reduce the need for gas re-liquefaction during voyages, meaning that less power is needed for cargo handling.

The addition of ethane means that the engines can now interchange between running on liquefied natural gas (LNG), light fuel oil (LFO) or heavy fuel oil (HFO) in addition to LEG. Wärtsilä added that the technology would allow ships to meet the International Maritime Organization’s (IMO) Tier III NOx regulations without secondary emissions cleaning technology.

SUCCESSFUL DEMONSTRATION OF TWO-STROKE METHANOL ENGINE MAN Diesel & Turbo have successfully demonstrated their ME-LGI (Liquid Gas Injection) concept.

For the purposes of the demonstration, MAN Diesel & Turbo have rebuilt their 50MX test engine to a ME-LGI unit. The ME-LGI’s operation and safety concept are similar to the already accepted ME-GI concept, however, the ME-LGI benefits from a dual fuel solution for low flashpoint fuels as opposed to the ME-GI engine where fuel is injected in its gaseous phase.

The ME-LGI engine design uses the principal of pilot injection of MGO or HFO to overcome the challenges associated with low-cetane number fuels (such as methanol) where self-ignition is characteristically poor. A Fuel Booster Injection Valve (FBIV) uses 300 bar of hydraulic power to raise the fuel pressure to an injection pressure of 600 bar.

To date, MAN Diesel & Turbo have received orders for 7 × ME-LGI engines – a mixture of 7S50ME-LGI and 6G50ME-LGI variants

www.fathommaritimeintelligence.com

– from Mitsui O.S.K. Lines, Marinvest and Westfal-Larsen.

The first engine will be produced by Mitsui Engineering & Shipbuilding Co., Ltd. (MES) for a ship currently under construction by Minaminippon Shipbuilding Co., Ltd. for Mitsui O.S.K. Lines. MAN Diesel & Turbo have previously stated that they are already working towards a Tier IIIcompatible ME-LGI version that can meet IMO NOx limits with the aid of secondary measures.

32

FUELS & EMISSIONS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

POWER2 CHANGE FOR FUTURE FUELS Driven by regulation to make a choice on future fuels, yet reined in by plummeting heavy fuel oil (HFO) bunker prices, ship owners would be wise to invest in propulsion solutions able to meet a variety of challenges at the same time.

33

While air pollution legislation continues to force ship owners towards lower emission strategies, sustained lower HFO prices have caused them second thoughts on the timing of fuel selection decisions.

Inside Emissions Control Areas (ECAs), fuel sulphur content is now limited to 0.1%, with a 0.5% restriction proposed for implementation globally as of 2020. However, HFO prices settling one third down on 2014 levels have seemingly put the race for gas fuel on pause, giving a welcome shot in the arm to suppliers of the abatement technology (exhaust gas scrubbers) that will support the continuing use of HFO. Few analysts predicted the oil price collapse of late 2014, with forecasts in early 2015 seemingly based on best guessing. It is therefore worth reflecting that, whatever the bunkering market looks like in terms of future fuel selection, some technical advances developed with one set of cost assumptions in mind are equally capable of supporting another set.

Two-Stage Turbocharging

ABB Turbocharging’s latest market offering, the two-stage turbocharging solution Power2, is designed to enable the higher engine power density targeted for the new generation diesel and dual fuel marine engines that have been developed to reduce fuel consumption, and thus cut emissions.

The two-stage turbocharging achieves a step change in turbocharging efficiency levels and pressure ratio capabilities.

Effectively, this process allows the pressure ratio to be doubled, without increasing the mechanical load within a profile that is only 20% larger than state-of-the-art single-stage turbocharging solutions. According to ABB, the latest Power2 800-M increases turbocharging efficiency beyond 75%. In terms of the engine overall, enhanced performance converts to a significant efficiency gain compared with single-stage turbocharging.

Power2 is already operational in onshore power plant applications, and ABB Turbocharging expects similar interest in the maritime industry. Offshore support vessels, for example, are expected to benefit from the high engine power density enabled by Power2, leading to low power-to-weight-and-size ratio as well as excellent transient capabilities. Uptake is also expected in the cruise and ferry market, where optimising the

fuel efficiency of four-stroke engines at high loads over extended periods is commonplace.

As new fuels enter mainstream shipping, ABB’s most compelling argument is that “savings are available whatever the fuel choice”.

“Nowadays reciprocating engines are asked to cope with various emission requirements, with vessels in different operating profiles and using different fuels, while still delivering constant high performance,” commented Paolo Tremuli, General Manager, New Engine Technology, ABB Turbocharging.

“We have worked on this new generation Power2 in collaboration with a major OEM, which has been pivotal in the evolution of a solution that we anticipate will have a major impact,” stated Christoph Rofka, Senior General Manager Products, ABB Turbocharging. “We remain focused on anticipating real and coming situations, and reliable technical solutions that are also flexible enough to meet changing circumstances. We are confident that Power2 anticipates a market requirement based on technological arguments that remain unchanged.”

“This new generation Power2 800-M enables engines to surpass industry standards in power output, fuel savings and emission reduction. It is applicable to engines burning all marine fuel types,” added Rofka.

“Bringing Power2 to marine customers represents a milestone and offers an opportunity to look beyond this for dual fuel and gas fuel engines,” said Rofka.

Power2 + Valve Control Management (VCM®) Technology

ABB Turbocharging also sees potential in the maritime market for its Valve Control Management (VCM) technology with regard to transient operating flexibility and further enhanced fuel efficiency.

In combination, Power2 and VCM also confer additional operating robustness, in line with the necessarily strong but controlled Miller timing. According to Rofka, for engines running on liquefied natural gas, this is critical because gas and dual fuel engines need to be capable of ‘diesel-like’ performance.

The potential flexibility will surely be welcome. The industry’s interest in ship efficiency has sustained, despite the recent oil price low. The suspension of exploration work by the world’s oil majors has been reflected by falling offshore support vessel order books, in turn stimulating owners to sweat existing assets harder. The focus of efficiency has turned to asset availability, rather than the promise of future cost savings from new technology.

www.fathommaritimeintelligence.com

FUELS & EMISSIONS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

AVERAGE HULL ROUGHNESS PREDICTION METHODOLOGY RE-EVALUATED

STADT ELECTRIC PROPULSION SYSTEM

NO LOSS AC DRIVE

Dr Philip Stenson, Technology Leader at International®, AkzoNobel’s marine coatings business, discusses the first major re-evaluation of average hull roughness (AHR) prediction methodology in almost 30 years.

Frictional resistance linked to hull roughness has always been a major factor in determining ship efficiency. For many years sustained high fuel prices gave ship owners and operators cause to investigate and introduce measures to mitigate hull roughness in order to unlock heightened levels of efficiency. Although fuel prices are dropping today, new environmental legislation has forced an increase in the use of more expensive distillate fuels. This, combined with pressures from shippers and charterers to improve sustainability, has placed significant onus on ship owners and operators to deliver more environmental and operational efficiencies. For many it is the key to unlocking competitive advantage.

An Updated Model

STADT STASCHO drives supplies sinusoidal voltage and current to the electric motor and back to the main switchboard. This gives very low harmonic disturbances without using transformers or filters.

Sustainability • Reliability • Partnership •

Battery power is optional.

In recognition of this, International® has established the principles of a new AHR calculation, building on the landmark work of Dr Bob Townsin, the first researcher and academic to establish the important link between hull roughness and ship powering in the 1980s. While Townsin’s methodology is upheld by the shipping industry today, trends in hull coatings, ship yard practices, environmental changes and regulations, as well as ship design and operation have altered considerably over the past 30 years.

Consequently, there is a real requirement for an updated model that reflects the changing dynamics of the shipping industry.

In its latest research, International® has established the foundation of a new methodology that predicts AHR both at dry dock after a coating scheme application and during the subsequent dry docking cycle. Initial analysis is based on a new dataset of 845 individual hull roughness surveys carried out between 2003 and 2014.

The study reached new conclusions based on the dynamics of today’s shipping industry, which questioned the validity of some existing principles upheld previously. Importantly International® found that ship age is no longer a key parameter triggering hull degradation. Conversely, based on its current dataset, International® found that ships over 25 years old, through careful hull management, can still achieve low AHR, and increases in AHR over a drydock cycle are lower than predicted previously.

Through analysis of its current dataset, International® has concluded that increases in AHR during dry docking cycles are caused by a combination of factors, with key influencers including substrate preparation (i.e. whether the ship is blasted or not), coating technology and ship type. Correlations between these parameters exist and will be investigated in more detail as International® develops its methodology. However data already available for the container and tanker sectors indicate that the impact of AHR is lower when a coating, such as International’s® advanced biocide-free foulrelease range, Intersleek®, is applied to a ship, as opposed to a biocidal anti-fouling.

Supporting Industry Initiatives

WINNER OF THE ENVIRONMENTAL AWARD

www.STADT.no

While the economic importance of hull roughness mitigation as a means to deliver more environmental and operational efficiencies is undisputable, proving the AHR of a ship or fleet is a more abstract challenge and one synonymous with all eco-efficient technologies. Through its new average hull roughness prediction methodology, International® maintains that it can play a key role in wider efforts by the shipping industry to adopt transparent and highly accurate methodologies that measure fuel savings generated by eco-efficient technology, including hull coatings. Such clarity will provide an important tangible demonstration to ship owners of the rate of return on investment, helping to build trust between manufacturers and owners and driving shipping efficiency and sustainability.

www.fathommaritimeintelligence.com

34

FUELS & EMISSIONS

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

FUEL QUALITY

PREVENTION IS BETTER AND CHEAPER THAN THE CURE

By Dr Steve Dye, Business Development and Marketing Manager, Parker Kittiwake.

The introduction of Emission Control Areas (ECAs) at the beginning of the year has driven substantial change in the composition of marine fuels. As a result, there has been a clear trend towards an increase in fuel quality, compatibility and stability issues, with fuel testing agencies continuing to correlate declining sulphur levels, increasing levels of catalyst (cat) fines and subsequent engine damage.

Citing issues such as fuel tank modifications, improper management of fuel mixing and temperatures, and failing to ensure sufficient supplies of ECA compliant fuel, the United States Coast Guard issued a safety alert in March of this year on fuel switchover procedures, referencing a number of incidents involving machine space oil leakages, a warning which was reiterated by Transport Canada in May. Changing fuel characteristics directly impacts wear levels in critical machinery.

With different fuels requiring differing operational parameters, it is important that operators have the tools they need to monitor every aspect of the fuel switching process to ensure that it is carried out safely. Experts at Parker Kittiwake have designed a range of solutions, such as the LinerSCAN online sensor to detect and monitor wear levels as a result of damage caused by cat fines. These tools aid operators with this process, which, when coupled with expert advice and guidance from knowledgeable industry experts, can ensure that compliance can be navigated safely and without impacting operational efficiency.

With so many variables influencing fuel quality and the resulting impact on combustion and engine damage, the importance of sampling and testing fuels and lubrication oils has never been greater to protect vessel, crew, critical machinery and revenue streams.

With many vessels operating within ECAs for portions of their routes, operators are facing new requirements and techniques such as switching between heavy fuel oil (HFO) and compliant low-sulphur fuel.

As operators are now required to accept fuel of different specifications and quality than they used previously, it becomes critical to manage the process of fuel switching safely, not only to assure compliance with regulation, but of paramount importance is protecting the safety of the crew and the vessel. Operators must be aware of the risks associated with these new operational processes, including changes in fuel viscosity, compromising the stability of the fuel, leakages, scavenge fires, adequate lubrication, cat fines, and the risks of pumps and hoses sticking or becoming blocked, leading to damage in the system and affecting operational efficiency. To repair damage caused by these issues, some operators have had to replace costly assets such as pistons, liners and injectors, at huge expense running into the millions.

35

Special Infographic 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

NON ECO

ECO

www.fathommaritimeintelligence.com

n Ja pa

an y Sin ga po re So ut h Ko re a Sw itz er la nd Ta iw an In do ne sia M on ac Ne o th er la nd s

rm

rw ay

Ge

No

ira te s

Un

ite

d

Ar ab

Em

ke y

k

Tu r

ar m

in a

De n

Ch

Gr ee ce

Un

ite

d

St Ire at lan es d of Am er ica

ce Fr an

do m ng

Ki d

ite

Un

Ho

ng

Ko n

g

0%

SHIP DESIGN

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Ship Design

NEWS

WESPAC AND CLEAN MARINE ENERGY TO BUILD FIRST US LNG BUNKER BARGE WesPac Midstream LLC and Clean Marine Energy LLC (CME) affiliate have announced a construction contract with Conrad Orange Shipyard Inc. to build the first dedicated LNG bunker barge for the marine market in North America.

The initial bunker barge LNG conversion aims to provide an integrated solution for infrastructure, supply and delivery logistics to the shipping industry to contribute to current efforts to reduce the environmental impact of maritime activity. This will assist ships in meeting the 0.1% sulphur emission limits operating in Emission Control Areas (ECAs). The conversion to LNG ensures a cleaner bunker fuel is utilised to improve efficiency and reduce expenditure while complying with increasingly stringent regulations.

The LNG bunker barge is to benefit from MARK III Flex cargo containment

technology from French engineering and technology company GTT (Gaztransport & Technigaz). These features are to be constructed by Conrad Orange Shipyard under GTT license while the barge is to be designed by Harbor Group Inc., with the American Bureau for Shipping (ABS) acting as the classification society.

The first barge will be delivered in 2015 and deployed in Tacoma, Washington to service ship owner Totem Ocean Trailer Express’s (TOTE) “Orca class” RoRo ships. The barge will then be relocated to Jacksonville, Florida to serve TOTE’s newbuild “Marlin class” container ships and other LNG-powered ships in the Port of Jacksonville.

WesPac/CME plans to exercise its options with Conrad to construct additional LNG fuelling barges to serve other North American ports.

THE NEGATIVE ASPECT OF FUEL EFFICIENCY MEASURES? Recent findings by BMT Sur vey, an operating company of BMT Group, suggest that efficiency measures may cause a negative effect on container lashing forces.

The latest generation of container ships have been equipped with fuel saving measures and have been streamlined for efficiency to increase capacity and environmental performance.

Last year, BMT Survey conducted audits on more than 100 container ships which showed there may be unwanted side effects with altering parameters for ship efficiency and streamlined operations.

They found that fuel saving measures may actually increase the calculated dynamic forces to the containers and lashings, with the potential to exceed permitted levels.

Stability and lashings forces are usually calculated with stability changes due to load

CLIPPER ADDS MGO TANKS FOR EASIER ECA OPERATIONS In order to comply with stricter Emission Control Area (ECA) regulations, Clipper Group are converting heavy fuel oil (HFO) tanks aboard some their bulkers into marine gas oil (MGO) tanks.

One HFO tank will be converted aboard each of six 30,000 DWT bulk carriers.

The company added that the conversions have helped one of the ships, the Clipper Tarpon, sail for longer periods of time within ECAs without additional bunker calls.

Its MGO capacity was also expanded to 564.4m3 from 143.4m3, with the upgrades done over the course of three weeks in Turkey by Clipper Fleet Management, the company’s in-house technical department.

In addition to the MGO conversion, which took eight days, the team also optimised the ship’s piping into separate HFO and MGO systems.

alterations or ballast water during sailing taken into consideration. During voyages, the ship is sometimes instructed to make modifications to improve fuel efficiency which cause unplanned changes to the trim and draft. This may result in a ship which exceeds the lashing forces during sailing, whereas initially at port it was within the permitted limits. In challenging weather conditions this may be particularly undesirable as damage to container stacks and cargo may result as the ship exceeds its ‘design motions criteria’.

ISO standards (ISO 1496) stipulate the limitations resulting from the strength of the container. However, there is no safety margin on these limits, meaning that a ship may start to distort as soon as the force limits are exceeded.

UASC NEWEST CONTAINER SHIP CLAIMS ‘MOST ECO-EFFICIENT’ TITLE United Arab Shipping Company’s (UASC) new 18,800 TEU container ship, the Barzan, is set to be the industry’s most eco-efficient container ship.

The DNV GL-classed ship will be the largest in UASC’s fleet and will set new standards for fuel and energy efficiency,

due to optimised ship design and an array of propulsion and equipment efficiency technologies.

The Barzan will also be the liner industry’s first LNG-ready ultra-large container ship (ULCS).

Preliminary calculations indicate an EEDI

www.fathommaritimeintelligence.com

(Energy Efficiency Design Index) value for the Barzan that is close to 50% below the 2025 limit set by IMO. The ship also has a CO2 output per TEU that is more than 60% below the 13,500 TEU (A13 class) ships delivered just three years ago.

36

SHIP DESIGN

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

RESPONSE TO ICS’ CLAIM THAT WORSENING SHIP EFFICIENCY FINDINGS ARE ‘FANCIFUL’ The International Chamber of Shipping (ICS) recently dismissed and criticised findings of a recent CE Delft study, commissioned by Seas At Risk (SAR) and Transport & Environment (T&E) that the design of ships built in 2013 was on average 10% less efficient than of those built in 1990, describing the conclusions of the study as "fanciful".

SAR and T&E believe that the findings have profound implications for the review of the International Maritime Organization’s (IMO) Energy Efficiency Design Index (EEDI), and that ICS’ claims that the study’s findings have been used selectively, confusing design efficiency with overall efficiency, and citing generic data from a period before the EEDI was implemented are entirely unfounded.

In this feature SAR and T&E share their response to the recent dismissal and criticism of the study by ICS.

By John Maggs, Senior Policy Advisor with Seas At Risk and President of the Clean Shipping Coalition

37

The conclusions of the study and the light it sheds on the history of ship design efficiency are in fact extraordinary. It is hardly surprising that feathers have been ruffled because the study directly challenges industry’s claim that, despite projections for ship greenhouse gas (GHG) emissions to rise dramatically in the years ahead, shipping is part of the solution to climate change, not the problem.

The CE Delft study is of course only one part of the puzzle that is shipping’s contribution to climate change. It simply focusses on the historic design efficiency of ships using exactly the tools deployed by the IMO to develop the EEDI. Despite ICS’ attempts to sew confusion, it has nothing to say, for example, about whether or not the operational efficiency of ships has improved in recent years, or whether there have been changes in the fuel consumption of ships’ engines.

The measure the study uses – the Estimated Index Value (EIV) – is the same one that was used by the IMO when creating the baselines against which targets were set for the EEDI. The data sources are the same and the formulae used is the one used by the IMO. The EIV formula is a recognized simplified form of the EEDI formula. It’s hard to imagine how the study could have been more open and transparent in its methods. Perhaps it’s the study’s very transparency that so worries the ICS. The IMO only used published data and EIV scores from 1999 to 2009 to create the EEDI baseline, whereas the CE Delft study took a hardly radical step to go back further (to the 1960s for bulkers and tankers and 1970s for container ships) to establish a clear historical perspective. In the process it discovered that the period used for the EEDI baseline was far from representative and that ship EIV scores have been on something of a rollercoaster ride since the 1960s. What a pity that industry and the IMO had to wait for civil society to take this obvious approach.

It is important to note that the study compares like ships with like ships, e.g. a 10,000 TEU container ship built in the 1990s with a 10,000 TEU container ship built today. The reason for this is that the EEDI targets, the stringency of which is under review at IMO, depend on the size of the ship. The example ship used above would have been considered a very large ship in the

1980s while it is only medium-sized today, but this is irrelevant in the context of the review of EEDI targets.

The study indeed indicates that, on average, a ship built around 2010 had a design efficiency that was worse than a similar ship (same ship type, same size) built around 1990. With regard to different ship types, this is true for bulkers in all size categories, tankers of all size categories except the smallest, and container ships of all size categories except the largest (which weren’t being built in 1990). In each instance, the study compared ships of equal deadweight for several years. This finding is why the study was able to conclude that ‘ships can improve their design efficiency by about 5-15% on average just by going back to 1990s designs’.

The study also shows that had the EEDI reference lines been constructed using vessel EIV scores from the 1980s or 1990s (instead of 1999-2009) then they would have had lower values, and as a consequence today’s EEDI targets would have required ships to have significantly better EIV scores than they currently do. As the baselines have now been set the best way to correct for this is to tighten the stringency of the targets. If this is not done, it’s hard to see how the EEDI as it is today is fit for purpose and can serve industry’s need to improve its environmental performance.

To conclude, it is worth mentioning one finding of the study that the shipping industry didn’t comment on. The study shows that during one ten year period in the 1980s, the EIV scores of ships showed a substantial and steep improvement. Depending on ship type, the EIV score of ships improved between 24-28% - a result that does not take account of any improvements in the fuel efficiency of engines. This is important in respect of the EEDI review because it tells us not to be timid when it comes to reviewing the EEDI targets.

SAR and T&E believe this study is one important contribution to the process of reviewing the EEDI. It is entirely fact-based, as are the conclusions. Industry would be far better off engaging positively in the IMO process rather than continuing to deny that a problem exists or deliberately misinterpreting straightforward conclusions. Given the potential of shipping to dramatically improve its efficiency, the industry really should not have anything to fear and its leadership should boldly embrace change.

www.fathommaritimeintelligence.com

SHIP DESIGN

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

BULK CARRIER DESIGNS STEAM AHEAD, EFFICIENTLY The beginning of the year 2015 saw the continuous success of the B.Delta bulk carrier series by Finnish ship designer Deltamarin. So far, over 120 B.Delta bulk carriers and derivates have been ordered, 40 of which have already been successfully delivered from seven different shipyards in China to nine different ship owners. The B.Delta Series is a true eco design, offering the best fuel efficiency in bulk carriers.

In January 2015, the first B.Delta43 bulk carrier was delivered to Hamburg Bulk Carriers. The B.Delta43 is an enlarged version of the B.Delta37, carrying 43,500 ton of cargo at same breadth of 30m, same draft of 10.7m, being 10m longer, but having only 0.2 ton/day additional fuel consumption. This performance sets a new benchmark for the Handy segment, offering the best DWT/ draft over fuel consumption of its class.

This delivery was part of an order of 11 B.Delta 43 ships by Hamburg Bulk Carriers. Phoenix Shipping & Trading of Greece quickly followed suit and ordered four similar ships at Qingshan Shipyard, China.

Deltamarin has now proven, sailing B.Delta designs on Handys (B.Delta37, 43) and in the Panamax segment.

The design efficiency philosophy behind the B.Delta design now needs to be implemented to other ship types and sizes. This was done through introducing the Delta Series, which includes oil tankers ranging from 40,000/51,000 DWT MR’s (T.Delta40/51) up to Aframaxes LR2 of 116,000 DWT (T.Delta115), chemical tankers from 15,000 DWT up to 37,000 dwt (Ch.Delta) and of course through further expanding the B.Delta design family.

Earlier this year, the US-based ship owner Vulica Shipping signed a contract for special type self-unloading (SUL) bulk carriers of 68,000 DWT. This design was derived from the B.Delta family, more specifically the fully tested B.Delta82 Kamsarmax design. According to Deltamarin, once launched, the ships will be the most efficient and operationally versatile SULs to date.

Deltamarin is currently working on similar special bulker ship designs, including sea-going Lakers, and small Handys with LNG

propulsion, as well as on various owner tailor-fit projects.

Despite the heavy loaded dry bulk market, with high influx of newbuildings and much pressed freight rates, Deltamarin plans ahead for the future. A new B.Delta37 Mark II has already passed successful tests in the independent Hamburg Ship Model Basin HSVA. This is an EEDI Phase 3 super-efficient Handy bulk carrier, which runs on an ultra-long stroke main engine, accumulating all the experience on more than 80 B.Delta37 ships under construction. The ship is fully fit for LNG propulsion, and offers 7% improved hydrodynamic performance compared to B.Delta37.

Last but not least, the container feeder fleet will soon be expanded by the new Delta feeder designs which have been under development since 2013. Through these designs, Deltamarin can offer up to 10% improved fuel performance and up to 20% increased TEU intake over other current feeder designs, with compact, fully tested designs ranging from 1,500 – 3,000 TEUs.

38

NEW TANKER DESIGNS TO REDUCE BALLAST Dalian Shipbuilding Industry China (DSIC), Dalian Ocean Shipping Co. and Lloyd’s Register are developing Suezmax and Aframax tanker designs to reduce ballast following their joint industry project on a minimum ballast Very Large Crude Carrier (VLCC).

The close cooperation between DSIC, Lloyd’s Register and ship owners has provided DSIC with the opportunity to develop a series of oil tankers with less ballast water, reducing it by up to 40% in addition to improving ship performance through optimised hull lines.

The ‘Clear Advantage’ reduced ballast designs provide significant performance improvements when compared to conventional tanker designs. For instance, the designs lower energy consumption during ballast passages, reduce ballast water treatment capacity and the time, energy and cost associated with treating ballast water.

Furthermore, the new designs also reduce harmful effects of mud and silt which is particularly important in China where oil import terminals are located on major rivers. Here, the build-up of river water ballast during cargo discharge can sometimes be

combined with mud or silt which can accumulate in the VLCC’s ballast water tank.

This not only affects cargo capacity but also results in a higher cost to the tanker, particularly through laden passages, as they are transporting extra weight through the heavy mud or silt and have to remove the slurry at some point, which can be expensive. In addition, the mud and silt can put extra strain on the ballast tank which may then require additional maintenance and impact the functioning lifetime of the tank.

The new designs have been developed to minimise these issues to improve environmental, financial and operational performance for tanker operators in Chinese ports and worldwide.

It also provides an example of an initiative which has gone beyond the initial concept to design a technology that can be realistically built.

www.fathommaritimeintelligence.com

SHIP & BUNKER

FATHOM MARITIME INTELLIGENCE

Tricks of the

ISSUE 06.2015

Bunker Trade In each issue of Ship Efficiency: The Insight, The Bunker Detectives, in association with Ship & Bunker (shipandbunker.com), will share insight and advice around bunkering best practices to make sure bunker buyers get the bunkers they pay for. Keep your eyes peeled for vital information that could help slim your bunker fuel bill!

The Bunker Detectives, a division of AVA Marine, are a dedicated team who primarily help ship charterers’ & bunker brokers deal with bunker quantity disputes (which do not fall under P&I cover for charterers’), and also offer an exclusive service to ship charterers’ dealing with ‘Bad’ Bunker dispute claims, such as the supply of contaminated or off-specification bunkers.

DEALING WITH POST-BUNKER DISPUTES 39

W

ith Bunker Detective’s expansion into the Chinese and South Korean markets more and more potential clients are requesting us to attend to post-bunker disputes – when it is often too late for us to do anything. Disputes arising over bunker quantity “after” delivery (hence the term post-dispute) are usually inconclusive if the shipboard personnel are not properly trained and if no surveyor is present or the surveyor is not experienced in dealing with disputes. The result of which is the vessel often ends up with an incorrect supplied quantity with losses for the Owners/Charterers.

This brief article explains what clients can do to prevent the losses from occurring in the first place and if a dispute does arise the important steps to take in order to safeguard their rights.

While no one can guarantee that these losses / discrepancies will not occur; one has to understand why disputes over bunker quantity occur in the first place. There are many reasons for this. Firstly we are dealing with “fluids”, similar to bulk commodities such as grain and not containerized cargo hence one has to rely on manual measurements (where a bunker surveyor or the Chief Engineer would measure the quantity of fuel transferred using the ‘dip’ method and look-up tables). In other words, the final results will only be as good as the surveyor who performed the calculations.

www.fathommaritimeintelligence.com

SHIP & BUNKER

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

SOME OF THE CONTRIBUTING FACTORS FOR THE LOSS: • Too much reliance on the vessel’s staff where no surveyor would be employed.

• Experience of the surveyor / ship crew to carry out accurate calculations – there are many factors that can contribute to errors like incorrect temperature, density etc. and these errors can be compounded quickly giving rise to large errors in the final quantity of mass delivered.

• The calculation also depends on the accuracy of the sounding/ullage tables – often we find this incorrect (interpolating sometimes does not even make sense). Many new vessels rolled out are similar in design to the previous vessel in their fleet or “sister ship” and we have often found incorrect calibration tables onboard copied from one of the sister vessels in the fleet.

• Sometimes the vessel has no list / trim corrections onboard or the trim corrections given are only up to 3.5 m whereas for a typical Aframax tanker bunkering at the port of Rotterdam it is not uncommon to achieve a trim of 4.5~5 m in order to facilitate crude oil discharging – so how do you account for such corrections?

• Checking of all 6 drafts accurately – this is often not possible if the bunkering is in port.

• No ‘bunker stem audits’ are conducted prior bunkering which involves elaborate detective work checking for all known malpractices.

• Malpractices by either party whether the ship or the barge which would not have been checked for prior receiving bunkers (as described in Malpractices in Bunkering Operations earlier).

• Bunker tank(s) would have been modified in dry dock with no revised calibration table available.

• C/E or Surveyors not checking for VNET or not aware of it.

So in other words discrepancies can occur even from small variances on either side’s data’s or situation.

LOSS MITIGATION:

In case in the event of a short fuel delivery remember that time is of the essence as any post-bunkering investigation is many times futile and inconclusive. The first and foremost goal should be through proactive approach settle any disagreement on the spot and to avoid turning a disagreement into a dispute with the aim to increase the client’s profits by mitigating and / or bringing down their losses.

Most shipping companies will engage the services of an independent surveyor to protect their interest in case of discrepancies; however, how many companies actually give clear instructions to the attending surveyor to measure all non-nominated tanks (non-receiving tanks)? Or how many surveying firms actually carry out the measurements diligently? Failing to do so leaves the operator vulnerable. We Bunker Detective have been requested many times to attend a post-bunker dispute despite the fact that the bunkering would have been witnessed by an ‘independent surveyor’ – where the surveyor would have done nothing against preventing malpractices nor investigate into the cause of shortage but just issue a standard ‘before and after ullage report’ and leave the vessel!

As mentioned above no one can guarantee short delivery during a bunker transfer operation but key precautions iterated below (more detailed explanation is given in ‘Malpractices in Bunkering Operations’ ) if followed will rule out many of the malpractices in play today and should a dispute still occur assist the surveyor/chief engineer in dealing with the situation more efficiently.

• Valves to bunker tanks checked shut on both the barge and ship before gauging • Inter-tank transfers (gravitating of fuel) • Flow meter tampering and quantity measurements by volumetric flow meter only • Pipework tampering, bypass connections etc.

• Questionable tank calibration tables • Tampering with gauging equipment such as sounding tapes, temperature equipment • Inflated / deflated tank volume during gauging • Sealing of QCV (quick closing valves) in engine room to storage tanks during transferring operations • Clear understanding of fuel density and weight relationship • Clear understanding of fuel temperature and volume relationship • Clear understanding of Zero Dip Volume application (un-pumpable fuel in empty tanks) • Under-Declaring actual ROB and Deliberate Short-Supplying of Fuel

www.fathommaritimeintelligence.com

40

SHIP & BUNKER

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Piraeus Bunker Price History Feb 15 - May 15

41

With bunker price indications for over 150 of the world’s top bunkering ports, in addition to daily news and exclusive features, Ship & Bunker is the world’s leading free-to-access website focused on marine fuel.

There is no registration process, or username and password to remember. Simply visit shipandbunker.com for immediate access to the critical business information you need, fast.

www.fathommaritimeintelligence.com

SOCIAL SCENE

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

SOCIAL SCENE @ShipandBunker - Fuel Efficiency to Drive 33% Growth in Marine Propulsion Engines Market to Nearly $11B by 2020 #BunkerFuel #Shipping @ShipTechMag - Banks use ship energy-efficiency data to make financial decisions, says @cwarroom

@EfficientShip - China will cut tax for energy-efficient ships #ShipEfficiency #ShipRetrofit #RetrofitFinance

@shipefficiency - Infographic shows the difference the A to G GHG Emissions Rating made to 1 charterer. @RightShip_ @ Economist_WOS @Dryad_Maritime - Environmental Group Says New Polar Code is Not Enough #Polar #Code #ASOC

@iwsa_secretary - Seagate Sail - new solution for the marine industry to convert wind power into fuel saving.

@fathommaritime - Heikki Soljama, Group Senior Vice President and Managing Director Marine & Ports @ABBMarine unveils Azipod-D to media @BLUECOMMS - Ballast Water Convention within 1.34% of ratification as India signs up in advance of @IMOHQ #MEPC68 via @Seatrade

@BIMCONews - Shipping industry faces major dilemma on #ballastwater management @shippingics @intertanko @intercargo

www.fathommaritimeintelligence.com

42

THE LAST WORD

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

THE LAST WORD

SINK OR THE SAIL? LAST

THE LAST WORD

WORDIn An Era Of Cheap Oil Fuel Efficiency Solutions

By Simon Phillips, Senior Consultant, BLUE Communications

You have a technology solution that can reduce the fuel consumption of ocean-going vessels? Excellent.

You can prove the fuel savings that can be made? Even better. And with fuel prices on a steep upward trajectory for years, the ROI on your technology can be realised in just a few months.

43

So far, so good. Although having a great concept doesn’t materialise into a profitable business overnight (as many clean-tech pioneers can testify!), the wind has been blowing in the right direction for some time.

In short, your proposition was built on one simple, irresistible truth. My product will cut your fuel bill and pay for itself in a matter of months. So what do you do when the market conditions underpinning that proposition are badly shaken? With the collapse in the oil price and the subsequent drop in bunker fuel costs, this is not so much a case of the goalposts moving, as the pitch spinning 180 degrees beneath your feet. Which leads to this question… how do you sell fuel efficiency at a time of cheaper fuel?

Whilst the fall in bunker prices has provided some welcome relief for shipping companies, it is posing serious questions for numerous suppliers to the shipping industry that have marketed their products and services around the promise of fuel savings.

Such commercial cur ve balls are challenging but not unique. There are plenty of examples from other industries where disruptive forces have had such an impact on market conditions, that they effectively change the rules of the game. Such disruption can come from any number of directions, including technological revolutions, external regulation and changes in societal lifestyles and habits. For example, the rise of digital downloads in the past 10 years has revolutionised the music retail and home entertainment industries. In every case like this, there are suppliers that have the agility to respond positively to such shifting

market conditions and those that do not.

So in the brave new world of lower fuel costs – at least for the coming months – what can suppliers offering fuel efficiency solutions do to ensure that they still have a credible and compelling proposition?

Firstly, fuel efficiency still matters.

Although bunker costs have fallen dramatically, no one is seriously suggesting that fuel efficiency is not still an important consideration, not least with ECA and global sulphur regulations continuing to push up fuel costs. It is also notable that eco-design tankers are continuing to earn a premium. This reinforces the point that fuel costs are not just about the absolute price of fuel, but your fuel bill relative to your competitors. If fuel efficiency can give you a competitive edge over your rivals, then it still has considerable currency as a marketing proposition.

Similarly, the market incentives for fuel efficiency are continuing to grow, whether that is through the likes of the A-G efficiency rating pioneered by RightShip and the Carbon War Room or the financial incentives now being offered by a number of ports for more efficient vessels.

It might be that the payback time on your technology has been extended, but this simply requires you to make the longerterm case for the fuel-saving benefits that your solution can deliver. Set against the operational life of a vessel, the chances are that the ROI on your solution is still attractive.

One of the obstacles encountered by those selling fuel efficiency technologies has been to persuade cash-strapped ship owners to make the necessary capital investment in their vessels in order to reap the rewards through lower fuel bills.

Even with an ROI that seems too good to be true, owners with money to spare have been understandably reluctant to part with it.

However, the drop in bunker prices might potentially provide shipping companies with the financial breathing space that they need to make those investments in fuel efficiency solutions for their vessels that were previously considered unaffordable. From the

www.fathommaritimeintelligence.com

perspective of the supplier, now might just be the time to call upon owners to ‘fix the roof while the sun is shining’.

The environmental benefits of fuel efficiency also continue to be a compelling proposition – cut your consumption and reduce your bunker bill, whilst reducing emissions and burnishing your environmental credentials. However, there are many ship owners (not to mention many charterers and other stakeholders) who are serious about environmental sustainability and are taking significant measures to improve their performance.

For these companies, the environmental benefits of fuel efficiency are still important. For others, the fall in fuel prices poses an interesting question: do you have a meaningful environmental policy, or just a fuel efficiency policy?

F i n a l l y, f r o m a c o m m u n i c a t i o n s perspective, there is a vital lesson here in the merits of road-testing your market proposition to ensure that it is robust enough to deal with what might be waiting around the corner.

Customers want to know that your solution has the versatility to cope with whatever the market might throw at it.

Your task is to develop a proposition that is sufficiently agile, well rounded and multi-faceted to meet that challenge. For example, this might mean broadening your offering to embrace operational efficiency, as well as fuel efficiency. Whatever your product, a solution that is fit for purpose in all seasons, whatever the market fluctuations, will always be worth investing in.

BLUE Communications is a leading global PR and communications consultancy for the shipping, marine, offshore and energy sectors.

blue-comms.com

Simon Phillips

Marine Scrubbers Special Supplement Contents • • • • • • • •

Marine Scrubber News Who’s Doing What What Is The Impact Of Scrubbers On Ship Stability?

Effective Planning, Partnership & Future Proofing To Ensure Compliance The Scrubber Market: Reflection On Uptake & Growth Scrubbing Made Simple Are Smaller Scrubbers Driving Market Uptake The Impact Of Changing Climate On Scrubber Choices

45 47 49 50 51 53 53 55

So Long Sulphur, Salutations Scrubbers!

The reduction of sulphur emissions remains at the top of the agenda for ship owners and operators as the industry sailed into 0.1% permitted sulphur oxides (SOx) emission limit in Emission Control Areas (ECAs) at beginning of the year.

The areas affected include the North Sea, the Baltic Sea, the United States Caribbean Sea around Puerto Rico and the United States Virgin Islands and the North American area which covers 200 nautical miles off the coast of Canada and the United States.

Outside of designated ECAs, the permissible sulphur content of marine fuel remains at 3.50%, however, that limit may fall to 0.50% in 2020, though the date may be deferred to 2025 pending a review in 2018.

The entry into force of these 2015 limits has forced ship owners and operators to consider sulphur abatement technologies as a means of compliance, largely due to the ability for operators to continue using heavy fuel oil (HFO) over the more expensive low-sulphur fuel (LSF). Therefore, the scrubber market is highly dynamic at the moment and the number of scrubbers installed on ships has increased significantly over the last few years and many ships have been retrofitted with scrubbers to ensure ECA compliance to date.

This issue of Ship Efficiency: The Insight includes a special supplement dedicated to the issues, hot topics and practical considerations for scrubbers.

MARINE SCRUBBER SUPPLEMENT

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

Marine Scrubber

NEWS BIG ORDER FOR SCRUBBER WASTEWATER TREATMENT TECHNOLOGY

45

LiqTech International have announced they have received a purchase order worth US $600,000 for two scrubber wastewater treatment systems based on the company’s SiC membrane technology.

The ceramic membranes are used for the treatment of marine wet scrubber wastewater which contains heavy metals.

The solution is able to process large volumes of water and is economically competitive when compared to other similar technologies. The SiC membranes are robust and have a high mechanical strength with high temperature resistance to ensure efficient cleaning and assure membrane selectivity at maximum temperature.

The orders for the ceramic membranes are the second and third from Yara Marine this year and are expected for delivery in the second quarter of 2015.

IMO TO AMEND SCRUBBER GUIDELINES TO HELP SHIPPERS MEET SULPHUR RULES The Danish Maritime Authority (DMA) welcomed an agreement by the International Maritime Organization (IMO) to amend guidelines on the approval of exhaust gas cleaning systems.

DMA said the new guidelines are designed to make it easier to approve scrubbers and assist shipping companies in meeting sulphur limit rules, such as those tightened in 2015 for Emissions Control Areas (ECAs).

“With the current regulations it is difficult for ship owners and manufacturers of exhaust gas cleaning systems to document the functioning of the systems,” said DMA. In particular, scrubber users are required to show that washwater used to reduce sulphur oxides emissions is not above a certain level of acidity before being discharged into the sea.

Rather than having to measure pH levels within the vicinity of the ship, the new amended guidelines are expected to provide for an alternative calculation-based method of recording pH compliance.

WÄRTSILÄ AND CLEAN MARINE ENERGY COLLABORATE TO PROVIDE SCRUBBER FUNDING Wärtsilä and Clean Marine Energy (CME) have announced they are to assist ship owners with financing scrubbers to ease the financial burden associated with sulphur compliance.

The initiative will provide incentives to ship owners to install scrubbers, with returns taken from the difference between the price of marine gasoil (MGO) and traditional heavy fuel oil (HFO).

The initial cost of a scrubber installation can be anywhere between US $3 million and $12 million per ship, but with the new incentive ship owners can avoid these high upfront capital costs and gain a return on investment of between four and six years. Although such a capital investment is difficult to pass onto charters, a fuel premium should be easier to include as part of the ship owner’s fee.

DELTALANGH LAUNCH NEW HYBRID-READY SCRUBBER DeltaLangh have launched their new scrubber product which includes a financing package.

The new hybrid-ready scrubber is an addition to the current range which offers open, closed, and hybrid loop systems, removing 99% of sulphur oxides and 80% of the particulate matter to comply with Emission Control Area (ECA) requirements. This recent scrubber is installed as an open loop system but can later be upgraded to incorporate all of the functions of a closed loop scrubber. This procedure can take place without dry docking to maximise operational time.

Furthermore, the package is offered at a fixed price of €975,000 (US $1.03 million) which is valid for 12 months, if

the upgrading option is utilised. This calculated price includes all components for a hybrid system and applies to an 8-9MW engine. DeltaLangh also support their buyers with material and installation advice at each stage of the process.

Collaboration with the Finnish Export Credit Agency Finnvera facilit ates customer financing with the option of export guarantees. This permits DeltaLangh to enter foreign-owned markets to meet customer demands.

DeltaLangh’s scrubber is a result of the collaboration between Deltamarin Ltd and Langh ship. Previous installations include those on all of the company’s own ships as well as the very recently installed Bore Song, part of Bore’s Ro-Ro fleet.

LR METHODOLOGY MAKES SCRUBBER USE MORE FUEL EFFICIENT Lloyd’s Register (LR) has developed calculation methodologies for scrubber washwater acidity compliance that allow ship owners to save fuel.

“The calculated methodologies LR is using ensure that the pH emission limit is not relaxed, discharges comply with the intent of the guidelines and pollution shift is prevented,” said LR in the January 2015 edition of its Horizons publication.

International Maritime Organization (IMO) guidelines state that scrubber washwater from “wet scrubber” systems must not exceed a certain level of acidity (pH 6.5), in order to prevent environmental damage.

Ship operators are thus required to bring pH levels to 6.5 by diluting washwater and

www.fathommaritimeintelligence.com

conducting “plume verification” to check the levels before discharging washwater into the sea.

For many ship operators this has meant pumping seawater around the ship in a process that consumes fuel, since although “external dilution” is allowed, measuring compliance has hitherto been difficult.

LR says its methodology, developed in conjunction with scrubber manufacturers such as Alfa Laval, offers ship owners a calculation-based way of monitoring external dilution, avoiding the need for fuel-dependent onboard dilution.

LR has approved pH calculations for 26 ships so far, with a further 70 approvals pending.

FATHOM MARITIME INTELLIGENCE

GERMAN BANK TO PROVIDE DFDS WITH €50M FUNDING FOR SCRUBBERS Ship & Bunker Denmark-based DFDS Seaways has received €50 million ($56.7 million) in funding from Germany’s KfW IPEX-Bank to install scrubbers aboard 20 ferries, Danish media reports.

The new additions will help the company comply with Emission Control Area (ECA) regulations, which began limiting sulphur content in marine fuel used in ECAs to 0.10 percent at the beginning of 2015.

The scrubbers will reportedly decrease sulphur emissions to an equivalent of 0.05 percent, while also decreasing particle emissions by 80 percent.

Last year, DFDS also announced that the European Union would be providing funds to help the company install scrubbers aboard five freighters

SCRUBBER DEMAND IS INCREASING” SAYS ALFA LAVAL The 1 January 2015 0.1% sulphur limit in Emission Control Areas (ECAs) has driven demand for scrubbers (the growth of exhaust gas cleaning systems) in 2014, according to Alfa Laval.

Alfa Laval have reported that they saw a marked increase in demand for their PureSOx scrubber system in 2014, stating that they have accumulated an order portfolio of approximately 65 ships.

René Diks, Manager Marketing & Sales, Exhaust Gas Cleaning at Alfa Laval commented: “We are both pleased and proud to have received orders for 70 PureSOx systems. PureSOx 2.0 is building on that success. Shortly after its launch at SMM 2014 in Hamburg, we received orders for the second-generation system from Atlantic Container Line, Royal Caribbean Cruises Ltd. and Horizon Lines.”

Orders for the PureSOx scrubber system include those for the US and Asia.

Recognition of the technology’s benefits has been reinforced through the system’s first class approvals.

NYK LINE & CLASSNK TO TEAM UP FOR NON-ECA SCRUBBERS DEVELOPMENT ClassNK and Nippon Yusen Kabushiki Kaisha (NYK Line), will team up with a Singaporean company and a university to develop scrubbers for use outside of Emission Control Areas (ECA).

The agreement will see ClassNK working with NYK’s Monohakobi Technology Institute (MTI), along with Singapore’s Nanyang Technological University and Sembcorp Marine Technology Pte. Ltd. on scrubbers that will cut down on sulphur oxide (SOx) emissions and carbon dioxide.

Research will primarily focus on exhaust gas cleaning systems that can help with future sulphur compliance beyond 2020 or 2025, said the organisations, researching new methods of installation and making scrubber sizes smaller.

The goal is for the scrubbers to be installed on many ship types, along with newbuilds and existing vessels.

ISSUE 06.2015

SCRUBBER SALES IMPACTED

BY CHEAPER LOW-SULPHUR FUEL Sales of scrubbers over the last few months have been hit by cheaper bunkers, with ultra-low sulphur fuels becoming more attractive financially due to the low cost of crude, Platts reports.

As long as oil remains low, shippers are likely to turn to ultra-low sulphur fuels for Emission Control Area (ECA) compliance instead of scrubbers, according to Garrett Billemeyer, global technology development manager at scrubber company DuPont.

“The short-term scrubber market will be very much affected by the high-sulphur versus low-sulphur fuel differential in price,” he said.

According to a report released by consulting firm MEC Intelligence, scrubber orders over the last four months have grown by 19 percent, a far cry from the sixmonth period between April and September 2014 when orders almost doubled.

Wärtsilä Corporation also said that though the company saw scrubber orders grow by 50 percent in 2014, many customers are now in a “wait-and-see mode” in terms of investment.

However, orders are forecasted to pick up if a global 0.5 percent sulphur cap is indeed implemented in 2020.

“Shippers with a long-term view will focus on marine scrubbers as an advantageous solution,” said Billemeyer.

Earlier this month, the International Chamber of Shipping (ICS) indicated that the 0.5 percent cap would “very likely” come into effect in 2020, not 2025 as some shippers may have hoped.

MEPC APPROVES ‘BLACK CARBON’ DEFINITION At the Marine Environment Protection Committee (MEPC) 68th session, the International Maritime Organization (IMO) agreed on a definition of ‘black carbon’ (BC) emissions from international shipping.

The approved definition was taken from an academic article published by Bond et al. in the Journal of Geophysical Research.

It describes BC as “a distinct type of carbonaceous material, formed only in flames during combustion of carbon-based fuels.

It is distinguishable from other forms of carbon and carbon compounds contained in atmospheric aerosol because it has a unique combination of physical properties”.

The formal adoption of the definition is the first step in moving toward identifying appropriate methods for measuring BC emissions from international shipping and considering possible control measures to reduce the impact of BC emissions from international shipping mitigating the impacts of the pollutant.

No member States objected to the definition, so approval was granted. However, Russia pointed out that according to their own research, BC from ships did not impact climate change as BC falls into water. The Clean Shipping Coalition argued that the study was flawed due to a lack of scientific procedures.

www.fathommaritimeintelligence.com

46

MARINE SCRUBBER SUPPLEMENT

MARINE SCRUBBER SUPPLEMENT

MARINE SCRUBBER SUPPLEMENT

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

WHO’S DOING WHAT RCL ORDERS 4 ALFA LAVAL SCRUBBERS Four PureSOx scrubbers have been ordered

by Royal Caribbean Cruises Ltd (RCL). Three of these will be PureSOx 2.0 systems, while the fourth will be the first test inline version of PureSOx. Alfa Laval’s deliveries to RCL will extend over the summer of 2015. The PureSOx systems will be installed as retrofits aboard four Royal Caribbean International ships: three of the Freedom Class and one of the Voyager Class. Freedom of the Seas, Independence of the Seas and Liberty of the Seas will each receive a hybrid scrubber with multiple inlets, while Adventure of the Seas will receive an inline hybrid with one main engine connected.

47

ROYAL CARIBBEAN TO OUTFIT 19 SHIPS WITH SCRUBBERS Royal Caribbean is to install scrubbers on 19 of its cruise ships.

Two technology companies, Alfa Laval and Wärtsilä have been contracted to supply the scrubbers, with installation approximated at eight months per ship.

The larger cruise ships offer more weight and stability so a wider range of options is available for placement of the systems, whereas the smaller ships create more challenges due to the restricted space for installation.

The process of installing the scrubbers will begin this year and conclude in 2017.

FINNLINES PURCHASE ALFA LAVAL SCRUBBER Finnlines have recently signed a contract with Alfa Laval to purchase an exhaust gas scrubber for their ship MS Finnmerchant in order to increase environmentally friendly technologies and cost-effective services along the new Hanko-Rostock route.

BORE PURCHASES CR OCEAN ENGINEERING SCRUBBER FOR RORO SHIP Finnish shipping company Bore has purchased a scrubber system from US firm CR Ocean Engineering for its roll-on/roll-off (RoRo) boxship M/V Seagard. The scrubber system will be fitted in the coming months.

MATSON TO INSTALL SCRUBBERS ON CONTAINER SHIPS INTERLAKE STEAMSHIP COMPANY CHOOSES SCRUBBERS Matson is to install scrubbers on three Alaska container ships acquired under its purchase of Horizon Lines Inc. The scrubbers will be fitted to the Alaska diesel powered Jones Act qualified container ships. The Jones Act ensures the ships are owned by US companies, are 75% crewed by US citizens and are built and registered in the United States.

The scrubbers have a CAPEX cost of approximately $8 million each.

Two of the ships are due to be outfitted in the third quarter of this year and the other two will be outfitted in 2016.

US-based Interlake Steamship Company (Interlake) has postponed its plans to use Liquefied Natural Gas (LNG) bunkers for Emissions Control Area (ECA) compliance, and instead will turn to scrubbing technology and HFO. The new closed loop scrubber installations will take place aboard the M/V Hon. James L. Oberstar, a self-unloading dry bulk carrier that operates on the Great Lakes.

Belco Technologies Corporation (Belco) announced it has been awarded the contract to install the scrubber systems.

Installation will take place mid-January, with testing scheduled for April 2015.

Despite making the investment in scrubbing technologies now, Barker says the company could still switch to LNG in the future.

STENA RORO AB SIGNS DEALS FOR 2 SCRUBBERS

Stena RoRo AB has signed a deal with CR Ocean Engineering, LLC to install a pair of open loop exhaust gas cleaning systems aboard the Stena Forerunner The Stena Forerunner operates primarily in the European Emission Control Area where new low sulphur fuel regulations went into effect on January 1, 2015.

Condor Ferries are to install DuPoint Marine The systems are expected to be installed in the first half of 2015. scrubbers on two of their ships.

D u Po n t S u s t a i n a b l e S o l u t i o n s , a TRANSFENNICA FITS SCRUBBERS ACROSS 50% OF FLEET subsidiary of BELCO, will provide Condor with four single-stream, open loop, gas Dutch short-sea operator, Transfenica has fitted nearly half of its fleet with scrubbers. cleaning units for Commodore Clipper and The technology has so far been fitted to six ConRo ships within the fleet. The remaining Commodore Goodwill. seven will use ECA-compliant diesel as an alternative.

The contract represents collaboration Transfennica recently announced they would cease operating on the Bilbao-Portsmouthbetween several parties. Oceanox Ltd. will Zeebrugge route because of the imminent rising costs of transportation come 2015, a be managing the project with Houlder as strategy that is being catalysed by increasing operational costs. However, they hope naval architect. that the fleet retrofits will enable them to continue sailing this route at reasonable costs.

The systems are scheduled for installation in late 2015 with performance testing to take place in early 2016.

CONDOR FERRIES ORDER DUPONT SCRUBBERS

www.fathommaritimeintelligence.com

BREATHE FREELY AND ENSURE ENVIRONMENTAL COMPLIANCE EVERYWHERE

Exhaust Gas ClEaninG systEms Right solution for your needs: open loop, closed loop and hybrid sOx scrubber systems – plus nOx reducer based on sCR technology suitable for new buildings and retrofits Global network with skilled professionals ensure fast and smooth delivery turnkey capabilities including engineering services, installation, classification approval, project and site management

Wärtsilä is the leader in environmentally and economically sound solutions. To do this, the most complete marine offering on earth includes exhaust gas cleaning technology that ensures environmental compliance in all regulated areas. With the widest range of technology for treating both SOx and NOx emissions, we have the right solutions for both new buildings and retrofits of all kinds of vessels. Read more at www.wartsila.com

WÄRTSILÄ: YOUR SHORTER ROUTE TO ENVIRONMENTAL COMPLIANCE

MARINE SCRUBBER SUPPLEMENT

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

WHAT IS THE IMPACT OF SCRUBBERS ON SHIP STABILITY? One of the most significant issues that lies within the integration of a scrubber onboard is the weight and load which they occupy. A scrubber unit itself may weigh up to 20 tonnes.

Coupled with the structural support required for the scrubber’s integration, which may reach up to 50% of the scrubber weight, the overall additional weight can significantly affect the stability margin of the ship.

Furthermore, because a scrubber is located at a high level, the weight difference is exacerbated and can render the ship unstable. This effect is more influential from a dry scrubber as a larger mass is located higher, whereas a wet scrubber distributes weight at a lower level.

The type of ship, its speed and size, and the type of scrubber determine the relationship between the ship size, load capacity and the size of the engine. Smaller ships in particular are at a higher risk of weight instability as they tend to suffer from a lower ratio of load capacity to engine output and are therefore at a greater loss of relative load capacity. If the installation of a scrubber leads to a lightweight change in more than 2% of the ship, it may require modification to the tonnage certificate.

Furthermore, the stability of the ship is altered through additional listing and trimming torque as a result of the scrubber, although

it is possible to reduce the torque by relocating other weights onboard.

However, it is not just the additional weight and location of the scrubber which has a significant impact on the stability of the ship, but also the interaction that it has with the size and type of the ship. A heavy scrubber affects the additional power required to drive the ship at the same speed prior to scrubber installation. This is indicated by the Froude number.

The Froude number is a dimensionless parameter which determines the ship’s ability to maintain speed with higher loading by assessing the ratio of inertial forces to gravitational force for a given ship’s length. A lower Froude number means that a ship will require smaller incremental power to achieve a higher speed than those with a higher Froude number.

Container ships, ferries, Ro-Ro and Ro-Pax ships have a higher Froude number than tankers and bulkers. In general, smaller ships tend to have higher Froude numbers and therefore require more power to sail at a higher speed.

For example, a 100m ship will require an additional 0.9% power to achieve the same sailing speed post-scrubber installation, whereas a 239m Aframax will only require 0.15% additional power to maintain speed.

49

Marine Scrubbers

Order Your Copy Now

The Guide 2015 This Guide delivers independent, expert guidance that can equip ship owners for navigating SOx & PM regulatory requirements, technology selection, market uptake analysis and practical considerations for implementation of scrubber systems. practical considerations of implementing scrubbers.

Coming Soon NOx Abatement & Regulation: The Guide www.fathommaritimeintelligence.com PURCHASE THIS PUBLICATION NOW VIA www.fathommaritimeintelligence.com/publications

FATHOM MARITIME INTELLIGENCE

Effective Planning, Partnership And Future Proofing To Ensure Compliance

By Sigurd Jenssen, Director, Exhaust Gas Cleaning, Environmental Solutions, Wärtsilä S i n c e 1 J a n u a r y 2 01 5 w h e n t h e I n t e rn a t i o n a l M a ri t i m e O rga n i z a t i o n ’s (IMO) regulations covering emissions of sulphur oxides (SOx) in Sulphur Emission Control Areas (SECAs) entered into force, there has been a surge in activity to achieve compliance.

Among the key benefits of opting for scrubber technology is the fact that with the right system, the vessel can operate in all corners of the world. Furthermore, depending on the ship’s operational profile and trading patterns within the SECAs, the payback time on the investment is typically just three years, making its lifecycle costs extremely competitive against alternative compliance options.

Engineering & Fast Delivery Emphasised Although scrubber systems can be retrofitted relatively easily, both basic and detailed engineering is required before the work can be carried out. Wärtsilä has reported that its advanced engineering capabilities have often been deciding factors in the award of contracts the company has received.

“For any scrubber system installation, whether it’s for a newbuild vessel or a retrofit project, there has to be close cooperation with both the owner and the yard. The entire system has to be integrated with the engines and engineered to fit the available engine room space as optimally as possible.”

ISSUE 06.2015

for its range of ferries, including Superspeed I, Superspeed II, Color Magic and Color Fantasy. Wärtsilä offers a range of different scrubber system technologies depending on owner preference and operation including the open loop, closed loop and hybrid scrubber system for more flexibility.

“We have come a long way in developing effective and environmentally sustainable scrubber systems for marine applications.”

The customer is able to choose between ordering the equipment only, ordering the equipment plus the necessary engineering, or ordering a complete turnkey project. This latter option means that the supplier manages the entire retrofit project, from the selection and configuration of the system, to class and flag approval procedures, to engineering the installation and supervising the construction. The advantage of the turnkey approach is that there is a single point of contact for all the work needed, which eliminates risk and saves time.

Major Fleet Owners Opting For Scrubber Systems Wärtsilä has received a number of valuable orders for its scrubber system solutions from some of the marine sector’s major players. Not surprisingly, the majority of these orders are from companies whose regular operations are within SECAs. Nevertheless, many global operators whose ships pass in and out of the control zones are also finding that scrubber systems offer the needed flexibility for compliance with both current and anticipated legislation.

Another surge in activity can be expected as the global 0.5% limit on sulphur content becomes imminent. This legislation will become effective in either 2020 or 2025. By then the cost of lowsulphur fuel is likely to have risen from its present level, but price alone might not be the restricting factor for this option. There is also the question of availability, since the ability of the world’s refineries to supply low-sulphur fuel in sufficient quantities to meet demand may not be adequate. This opens up even further the market for scrubber systems technology and LNG fuel solutions, both areas where Wärtsilä has a market leading position.

“When Wärtsilä first began the development work, there were critics who believed that shipboard scrubbers could never succeed. As we now know, this was proven to be completely wrong and modern scrubber systems technology offers an extremely efficient and cost-effective means of complying with sulphur limiting legislation.”

Delivery time for the equipment and, especially for retrofit projects, the amount of time needed to complete the installation, have emerged as other highly relevant issues. Although the decision to go ahead with the scrubber option has frequently been delayed until after the current regulations entered force, owners understandably want the work finalised on a fast-track basis once the green light has been given.

Similarly, with retrofits, it is important for operators that the vessel is out of service for as short a time as possible. Wärtsilä’s in-line option for its scrubber systems has been introduced specifically to address this need. The in-line design minimises weight, the loss of cargo space, and shortens the time the vessel needs to be in the yard. This was the system of choice most recently for two ro-ro vessels for Stena Line, and by Color Line

www.fathommaritimeintelligence.com

50

MARINE SCRUBBER SUPPLEMENT

MARINE SCRUBBER SUPPLEMENT

The Scrubber Market:

Reflection On Uptake & Growth

By Fiona Macdonald, Fathom Maritime Intelligence Following the limits for sulphur content in marine fuel dropping from 1% to 0.1% in Emission Control Areas (ECAs) as of 1 January 2015 the attention of ship owners has turned sharply to scrubber systems as a means of compliance, largely due to the ability for operators to continue using heavy fuel oil (HFO) over distillates such as Marine Gas Oil (MGO).

Challenges experienced with other ECA compliance options have only driven demand for scrubbers further. Fuel switching, an alternative method where low-sulphur fuel is used in ECAs and HFO is used outside of ECAs, has been subjected to some scrutiny in light of the compatibility issues which occur when switching.

Some of these issues have resulted in loss of propulsion, and even onboard fire. The scrubbing technology market has been able to exploit such technical issues as scrubbers provide a compliance option which, once installed, is both relatively safe and maintenance free, with the added benefit of continuing HFO use.

On the downside, the selection of scrubber options used to be relatively limited and those available did not display the same flexibility they do today to suit the varying needs of ship owners and operators. Their high costs and large spatial design has led to

stability and operational concerns, making them a complex piece of equipment to consider.

However, the technologies are adapting to address such issues and market uptake is increasing.

The History: From Land To Sea

The 1930s saw the adoption of scrubbing technology to remove SOx and particulate matter (PM) from gaseous emissions in landbased industries. During the 1960s, the scrubber technology was developed for the maritime industry and introduced as a method for scrubbing exhaust gas emissions from the tanker’s boiler plant. The technology was initially not used for emission control but as an inexpensive way to produce inert gas for reducing the fire hazard in the cargo tanks of tankers during unloading.

A Highly Dynamic Market

The scrubber market is highly dynamic due to the recent enforcement of ECAs combined with the current fluctuating oil prices and the uncertainty lying within future prices. From March to September 2014, the scrubber uptake doubled from previous years, however, a 19% growth in uptake has occurred in the recent four months up to January 2015, indicating a drop in light of the changing oil prices.

As of 31 January 2015, The Exhaust Gas System Cleaning Association (EGCSA) estimates there are a total of 160 scrubbers installed with 300 units in total installed or on order. This compares to 135 installations in September 2014, indicating the sharp increase of marine scrubbers in the market prior to the 0.1% sulphur limit. EGSCA incorporates a number of members to help create sustainable operating conditions within the marine environment. According to the association, members, installations and EGCS orders have doubled in the year to July 2014.

Market Drivers and Growth

In 1991, the first prototype scrubber for controlling exhaust gas emissions was installed onboard a ship and by 1998, the seawater (open-loop) scrubber had advanced enough to enable a comprehensive field trial. The Canadian ice breaker Louis S. St-Laurent was subjected to 22-days of testing during a 6-week transatlantic voyage.

Since 2008, scrubbers have been accepted by the International Maritime Organization (IMO) as an acceptable alternative method for complying with SOx emission reduction regulations.

In October 2013, it was reported that an increasing number of commercial ships with scrubbers were entering operation. The Jolly Diamante, a 45,000DWT Ro-Ro ship owned by Ignazio Messina was fitted with four open-loop Wärtsilä scrubbers for the auxiliary engine and a fifth one for the auxiliary boiler. This ship, along with three others, was the first to gain RINA’s Green Plus notation.

Future Of Scrubbers And Market Projection

An increase in the uptake of scrubber systems is expected for the future and investment is predicted to reach US $25 billion over the next 15 years. This of course depends on regulatory and market developments and the technical progress in alternative methods.

Future uptake will also depend on the price differentials between MGO and HFO, which has previously been as much as US $350 per tonne fuel. If scrubbers continue to prove cost effective for cleaning exhaust gases, in terms of initial cost and ease of operation, and low-sulphur fuel is potentially at a risk of shortage with increased demand for compliance, then the market uptake of scrubbers can be predicted to continue increasing as it has done for the past few years.

www.fathommaritimeintelligence.com

52

MARINE SCRUBBER SUPPLEMENT

But what about the drivers behind the expanding scrubber industry? It is clear that the ECA sulphur regulations have been at the forefront of driving technological innovation within the industry. However, it is also apparent that scrubber manufacturers have taken onboard the concerns ship owners and operators previously had regarding scrubbers and their practicality in real operational environments. For instance, manufacturers have gone one step further in their development of intelligent technology to develop scrubber systems which are not only smaller than previous ones, but also more lightweight and therefore put much less pressure on the cargo carrying capacity.

The market is also seeing an upgrade of scrubbing technology to incorporate silencers which means they can replace the existing silencers, instead of contributing to the space taken up by the scrubber. For example, both Green Tech Marine and AEC Maritime were two of the first companies to enable a double up of the silencer to minimise total weight and space and therefore to reduce costs. The clear cut improvements scrubber technology companies have made ensure they are meeting the strenuous demands of ship owners and operators and the regulations they face with as much simplicity as possible.

Furthermore, the cost of scrubber investment, which can lie anywhere in-between US $4 million and $11 million, has been reduced by the addition of financial schemes to permit installation without the initial upfront costs. In April 2015, DeltaLangh announced their collaboration with the Finnish Export Credit Agency (Finnvera), which offers guarantees to help its customers.

A price of US $1.03 million for 12 fixed months is offered, which permits purchasers of the scrubber to upgrade from the hybridready to the fully functioning hybrid system without further cost.

MARINE SCRUBBER SUPPLEMENT

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

SCRUBBING MADE SIMPLE The best ideas are characterised by simplicity.

In 2010, AEC Maritime was approached to think of a simple and effective scrubbing solution for the shipping industry.

The company has spent over two decades reducing emissions on land, optimising their scrubbing technology to make it as simple and durable as possible. AEC has produced over 2,300 land-based scrubbers over the years, therefore the innovation task at hand for the shipping industry was no problem.

According to AEC, the innovative all-in-one scrubber technology makes their scrubbing systems not only the simplest, but also the greenest and most cost effective in the market.

Started On Land, Evolved At Sea

53

Following their extensive experience onshore, AEC transferred their scrubbing technology to the sea with the help of industryrenowned partners such as the VDL Group, the company that is responsible for building AEC’s scrubber systems.

The company has earned itself a proven track record thus far within the shipping industry, with numerous ships in operation that are fitted with their open loop, closed loop and hybrid scrubbers.

Last year, Lloyd’s Register approved and certified the AEC Maritime SOx scrubbing system which was installed on the Scandlines vessel Schleswig-Holstein and has been fully operational since 2014.

Since then, Scandlines and other companies have ordered additional scrubber installations. This makes it a grand total of at least 10 ships fitted by AEC Maritime this summer.

“We were intrigued by the simplicity of the AEC scrubbing system. Their technology works without filters. There is no pollution on the deck, no filters to clean and no maintenance,” remarked Fini Alsted Hansen, Technical Superintendent Fleet Management at Scandlines.

“After testing the AEC closed loop scrubber system on our Schleswig-Holstein vessel we were so convinced that we

ordered scrubbing systems for more vessels,” he added.

“We see these new orders as a vote of confidence in our technology. Our all-in-one system is characterised by simplicity,” remarked Marcel Clephas, Technical Director of AEC Maritime.

Strength In Simplicity

A common perception in the industry is that scrubber systems can be complex. AEC claim that they can offer ship owners the simplest scrubber on the market, which also requires the least engine power, a mere 0.5%.

The company offers a tailor-made system which cools gasses, removes 99% of sulphur and eliminates particulates at the same time. Also, due to the open tower structure, there are no filters, no moving parts and no need to change a polluted packed bed. This makes the system remarkably maintenancefree and easy to operate after only four hours of training. When it comes to ship type suitability, one size fits all. The system works on all engine types due to low back pressure and can be fitted on all ships, both newbuild and retrofit. AEC Maritime has a patent pending on the design of this scrubbing technology.

According to AEC Maritime, the investment can often be earned back in two years.

“With this mature technology, we have made scrubbing simple,” added Clephas.

ARE SMALLER SCRUBBERS DRIVING MARKET UPTAKE? The amount of space that a scrubber system occupies on a ship has led to a demand for smaller scrubber system units which minimise the loss to the cargo carrying capacity. In response, technology providers have driven technological innovation to a new level to develop scrubbers which are both lightweight and small for minimal stability issues, speed loss and importantly cargo carrying capacity.

Scrubbers with a low footprint require minimal changes to stability conditions and require less alteration of the ship’s structure as they have considerably less impact on the operation of the ship when compared to a scrubber that is even just a few tonnes heavier. Smaller and more lightweight scrubbers are far less likely to influence the metacentric height (GM) figures and stability levels which are determined by the distance from the centre of gravity to the metacentre. If this level is not reached as given out in the ship’s stability handbook, the ship must take on ballast or reduce higher up loads to achieve

the permitted GM. Research and development on marine scrubber technologies can be expected to focus on developing smaller and lightweight systems. Reducing the weight and therefore the influence on ship stability means fewer adjustments and therefore an easier installation process, minimising the risk of dangerous weight loading and non-compliance with the ship’s stability allowance.

Fuji Electric, for instance, developed what has been hailed ‘the world’s smallest scrubber’. Their SaveBlue wet scrubber has achieved a 50% size reduction compared to conventional exhaust gas cleaning systems.

Belco Marine adapted their scrubber technology to create an ‘open tower’ which enables a reduced weight and diameter as no packing and no mist eliminators are required.

Marine Exhaust Solutions also developed a smaller than average unit using a modular design, reducing the space required for each component.

www.fathommaritimeintelligence.com

A compact tradition Introducing the world’s smallest EGCS. From the Japanese tradition of compact design comes SaveBlue, the most cost-effective way to comply with the coming 2020 IMO emissions regulations. Our wet scrubber uses energy-efficient cyclone technology in tandem with a laser gas analyser engineered for the sea to save you space and money. Perfect for retrofitting or new builds, SaveBlue is the natural choice, as it allows continued use of heavy fuel oil.

To learn more about SaveBlue, visit www.fujielectric.com/ products/saveblue/

To read the Fathom editorial about SaveBlue, visit http://bit.ly/f-ctech

At just 7m tall and 2m in diameter, the wet scrubber fits easily in any design and can remove more than 98% of SOx for a 10MW engine. The laser gas analyser provides continuous, in situ monitoring of SO 2 and CO 2, and has 90% less mass than conventional infrared gas analysers.

MARINE SCRUBBER SUPPLEMENT

FATHOM MARITIME INTELLIGENCE

ISSUE 06.2015

THE IMPACT OF CHANGING CLIMATE ON SCRUBBER CHOICES

By Fiona Macdonald, Fathom Maritime Intelligence

55

The choice between seawater or freshwater scrubbers largely depends on the salinity of the water the ship is predominantly operating in. Open-loop seawater scrubbers have historically been used for ocean-going ships where the salinity is higher, whereas the freshwater closed-loop scrubber is better suited to waters with a lower salinity, such as the Baltic Sea. Additionally, there is the hybrid scrubber which seamlessly changes operational mode to process the type of water it is sailing in.

However, climate change projections for the future estimate that water salinity levels will change across the globe.

Freshwater in Polar areas will increase due to melting glaciers, whereas seawater further south in the Tropics and the Atlantic has and will increasingly become more saline due to the impacts the melting freshwater has upon the ocean circulation, responsible for dispersing salt and fresh water.

Furthermore, these climatic changes are opening up new passages and driving shorter shipping routes in the Arctic which is a freshwater area.

Because of the lengthy process involved in choosing, commissioning and installing a scrubber (the entire process can take up to 3 years) there is a strong case to suggest that those interested in scrubbers should start considering the impact that a changing climate may have on their scrubber decisions

now, especially with regards to types of wet scrubbers.

With an open-loop seawater scrubber, the correct amount of seawater must be used to clean the exhaust gas; too little and the required sulphur reduction is not achieved. Come 2020, ships deciding to operate in freshwater areas may find themselves unable to comply if they have previously installed a seawater scrubber.

Ships fitted with freshwater closed-loop scrubbers will not only bear the extra cost of caustic soda for pH neutralisation but will also not be able to operate in higher salinity waters unless they switch to ultra-low sulphur fuels, defeating the purpose of fitting a scrubber in the first place.

Despite the higher cost of the hybrid scrubber, it may be sensible for ship owners to consider this option as it provides the highest flexibility when alternative routes may be presented in light of Arctic ice recession. With a hybrid module, scrubbing can be started with seawater, and the remaining SOx are removed in the freshwater section. The system automatically optimises and regulates itself according to the sea area.

It will be interesting to witness how regulatory and market developments will affect the uptake of scrubbers in general and whether the increased flexibility of hybrid scrubbers will move them out of their current market niche.

Operating in Emission Control Areas The Guide & Onboard Manual FULLY REVISED EDITION FOR 2015

This essential Guide and hard-cover onboard Manual gives ship operators the tools and guidance they need to navigate compliance when operating in emission control areas

www.fathommaritimeintelligence.com PURCHASE THIS PUBLICATION NOW VIA www.fathommaritimeintelligence.com/publications

STARTED ON L AND EVOLVED AT SEA AEC Maritime has re-defined the SOx scrubbing technolog y. Our system is based on 20+ years of experience on land and has a proven track record at sea. Over the years we have managed to make scrubbing simple. Our scrubber is easy to operate, almost maintenance free, can be fitted into every vessel and is applicable to all types of engines. For more information just visit www.aecmaritime.com.

SCRUBBING MADE SIMPLE

We bring highly reliable, flexible global services to your fleet. Our innovative technology offers a revolutionary data and communications gateway for your business – making every journey safer and smarter.

ENABLING THE MARITIME ECOSYSTEM_ SAFER, SMARTER SHIPPING Inmarsat offers your ship a highly evolved maritime communications ecosystem which makes every trip or voyage more efficient, safer and more productive. In short, just a lot smarter. Visit inmarsat.com