Ship Efficiency Review - Issue #08 by Fathom Maritime Intelligence

ISSUE 08.2016

INCLUDES SPECIAL

NOX EMISSIONS SUPPLEMENT

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CONTENTS The Year of Innovation Welcome From The Editor

News Round-Up

Who’s Doing What?

Success For Recycled ‘Slops’ Fuel

In-Depth Insight

• The Year Of Innovation • Are You Prepared For The Future Of Clean Fuels? • Steering Shipping’s Technology Future

Fuels & Emissions

Sustainable Biofuel & The Marine 21 Energy Mix

• • • •

Future Fuel: The Marine Supply Chain Beyond 2016 Recycled ‘Slops’ Fuel Goes From Strength To Strength Ship Trials Boost Confidence In Emulsified Fuel Sustainable Biofuel Has A Crucial Role To Play In The Marine Energy Mix • Bunker Price History

Environmental Technology

• • • •

The Last Word – NOx, NOx Who’s There? 55

Exhausting All Avenues Of Innovation The Anniversary Of 0.1% ECA Sulphur Limits Wake Up And Smell The Coffee Sulphur More Ships Set Sail With Multiple Scrubber Unit Systems

Strategies

• Raising The Flag For Ship Efficiency • Transparency Is Key: Charterers Respond To Carbon Signals • Landmark Sustainable Shipping Loan Confirmed

11 13 15

19 20 20 21 22

23 25 26 26

27 29 30

Electronics & Software

• Made In China - The Pursuit For The Smart Ship • Data Monitoring Tool For ECA Compliance Launched • First Independently Accredited Mass Flow Meters Introduced In Hong Kong • Maritime Software Company Acquired By Cargo Handling Giant

Ship Design

• The Art Of Optimisation • Class Society Strengthens Green Ship Design • World’s First LNG-Fuelled VLCC Moves A Step Closer To Becoming Reality • Spanish Firm Unveils New LNG Bunkering Vessel Design

Power & Propulsion

• Changing Maritime Markets Key To LNG’s Future • First Commercial Order For Flettner Rotor Tech • Type Approval Granted for Dual-Fuel TwoStroke Engine • Fuel Switching In ECAs: The Ship Operator’s Perspective

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on LinkedIn

@fathommaritime

31 32 33 33

35 36 37 37

39 40 40 42

Nox Emissions Supplement • NOx News Round-Up • The Dawn Of A New Era For NOx Emission Compliance • Examining The Catalysts For SCR technology uptake • Reducing NOx Is Important But Why Stop There? • Ship Operators Equipped With Key Resources To Future Proof Vessels For NOx Reduction

Event Review

Steering Shipping’s Technology Future

43 45 47 49 50

• Smart Operations: Copenhagen

The Social Scene

The Last Word

Published by

fathom

marine | energy | environment

Editor: Catherine Austin catherine@fathom-mi.com News Reporter: Fiona Macdonald fiona@fathom-mi.com Graphic Design: Ben Watkins design@fathom-mi.com Sales & Marketing Manager: James Curry james.curry@fathom-mi.com Subscriptions Manager: Nikki Reis-Pessoa nikki@fathom-mi.com Publisher registered address: 27 Sheet Street , Windsor, UK - SL4 1BN Subscription to this magazine is free. Subscribe online via: www.fathommaritimeintelligence.com Subscribe by phone: +44 (0) 1753 853 791 For content enquiries, email: editor@fathom-mi.com Twitter: @fathommaritime

Audited Circulation: 6,088

WELCOME FROM THE EDITOR

Welcome to the inaugural 2016 issue of Ship Efficiency Review, the industry’s go-to quarterly periodical dedicated to providing owners and operators with the latest news and market insight for all things ship efficiency. You may have noticed that the magazine’s title has been rebranded. Strategically planned for the launch of the opening 2016 issue, the magazine’s title has been rebranded to Ship Efficiency Review. This rebrand was undertaken to align this increasingly demanded magazine with its associated daily e-news platform www.shipefficiencynews.com. Although the name has changed, it will continue to deliver exactly the same unchartered, in-depth ship efficiency insight straight to your desk. As we enter 2016 oil prices remain low compared to the high pre-slump prices that controlled the market until late 2013. In fact, over the course of December and January bunker prices continued to fall, at one point hitting a low in January floating just above US $100 per metric tonne at the Port of Rotterdam. If you are interested in bunker fuel price trends, head to Page 22 where you will find this Issue’s Bunker Price History, powered by Ship & Bunker. Sluggish economic growth is still pungent in the air as we enter the new year, dipped freight rates persist coupled with oversupply and regulatory pressures concerned with shipping’s environmental impact are increasing. However, it is not all doom and gloom. Where tough market conditions reside, innovation prospers. Unlike current hostile market conditions, the progression of future fuel options for the industry is booming, technologies that can make ships compliant with regulatory requirements for efficiency and environmental impact reduction are evolving rapidly and ship owners are acting fiercely upon streamlining their operations. The year 2016 commenced with a regulatory bang as the International Maritime Organization stepped the control of Nitrogen Oxides, a.k.a NOx, pollution from the shipping activities up a notch by implementing yet another Tier of NOx emission controls for newbuild ships destined to set sail in NOx Emission Control Areas (ECAS). Therefore this issue of Ship Efficiency Review hosts a special ship NOx emissions supplement which takes a deeper look into the potential impact of this regulation on technology uptake and how the industry is tackling NOx reduction. The core theme of this issue is Future Fuels and Innovation. Therefore inside this copy of Ship Efficiency Review you will find features that explore the rampaging innovation taking place in the industry coupled with in-depth insight into the future of the marine energy market. We put key alternative fuels that are making waves in the industry under the microscope and also take a long hard look at LNG. This issue also hosts the exclusive, first interview with Frank Coles, since his appointment as CEO of Transas. I look forward to welcoming you back in Issue 09. Catherine Austin Editor

©2016 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 via editor@fathom-mi.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.

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Ship Efficiency Review News Round-Up

NEWS ROUND-UP

CORVUS ENERGY IMPROVES LITHIUM-ION BATTERY PERFORMANCE Corvus Energy have increased the energy capacity of their lithium-ion battery systems and doubled the power capability. The testing that confirmed the improved performance specifications, based on the performance and characteristics of the AT6500 battery platform, was carried out in collaboration with the Laboratory for Alternative Energy Conversion (LAEC) and LAEC’s founder, Dr Majid Bahrami, at the Simon Fraser University. The tests showed the battery to have a 10C peak discharge and 3C indefinite power capability rating

2017 TO BE THE YEAR OF THE ECA FOR CHINA The Chinese Government have announced that the Pearl River Delta, Yangtze River Delta, and the Bohai Bay waters will become Asia’s first Emission Control Area (ECA) from 2017. The designation of this ECA is the first of its kind outside of Europe and North America. It will require ships calling at the core ports within the ECA zones to use bunker fuel containing no more than 0.5% sulphur while at berth, except during the first hour after arrival and the last hour before departure from 1 January 2017. Then, from 1 January, 2018 bunker fuel sulphur content limits will be extended across all ports within the ECA zones. As of 1 January 2019, the regulation will cover all ships operating within 20 nautical miles of the Chinese coastline. Alternative methods of compliance will be permitted, such as the use of shore power, ‘clean energy’, exhaust gas after treatment systems (scrubbers), and other unspecified alternative measures. ∎

with a validated energy capacity of 6.7kWh. The lithium-ion battery is the only one of its kind to have four marine Type Approvals from Lloyd’s Register, DNV GL, ABS and Bureau Veritas (pending). Corvus’ Energy Storage Systems (ESS) have been designed to meet specific customer requirements, and is scalable from 6.5kWh at 50VDC to multiple megawatt-hours at up to 1100VDC. The AT6500 model name will now be revised to AT6700 for the product platform in recognition of the higher specifications. ∎

NEW HULL COATING TRICKS CLINGY ORGANISMS

Danish paint company Hempel has developed a new hull coating that uses a highly absorbent polymer to trick organisms into minimising protein and bacterial adhesion. The coating, Hempasil X3+, is based on hydrogel technology that comprises of a network of advanced polymer chains that absorb high volumes of water to create a water-like boundary layer. It is this boundary layer that provides protection to the hull and creates a smooth, low energy surface, preventing hull fouling and thereby optimising ship performance. According to Hempel, Hempasil X3+ has no impact on the environment, can reduce a ship’s carbon footprint and remains stable over time while retaining the self-cleaning properties of silicone. ∎ www.fathommaritimeintelligence.com

Ship Efficiency Review News Round-Up

NEWS ROUND-UP CLASSNK ESTABLISHES BIG DATA HUB IN TOKYO ClassNK is to open a big data centre that aims to support data gathering across ship operations in Tokyo, Japan. The Ship Data Center will be headed by the Classification Society’s Executive Vice President Yasushi Nakamura. Planned to be a secured shipping operations database, it will serve as an information hub to independently manage the utilisation of big data in the maritime industry. The development of this data centre follows rapid advances in information development and communication and the large quantities of data that can be gathered from vessels. According to ClassNK, the hub was devised due to the lack of ability to centralise and manage large quantities of data, as most of it is still done on a ship-by-ship basis.

ABS AND MARIC STRIKE UP SHIP EFFICIENCY COLLABORATION Classification society ABS has signed a Strategic Cooperation Agreement with the Marine Design & Research Institute of China (MARIC), a move that will see the institutions collaborate on operational efficiency and environmental performance in the offshore and marine sectors. According to ABS, the agreement will create opportunities to form joint development projects in energy efficiency and environmental performance. Meaning that the institutions will jointly carry out techno economic evaluation and technology performance assessments, and establish novel design concepts. The Classification Society also voiced that this agreement allow the two parties to work together on designs that meet environmental regulations and technology trends. Leveraging technologies such as computational fluid dynamics, techno-economic evaluations and vessel performance analysis. ∎ www.fathommaritimeintelligence.com

The Ship Data Center, therefore, aims to optimise ship performance and improve condition-based monitoring by acting as a centralised platform for data collection and management. Full operation of the Ship Data Center is scheduled to commence from April 2016. ∎

UNILEVER TO SHIFT SHIPMENTS TO LNG-FUELLED TRANSPORT British-Dutch multinational consumer goods company Unilever has revealed that it aims to reduce its CO2 emissions by 40% by 2020 compared to 2008 levels. Part of the core strategy to acheive this is to award new contracts to companies that use LNG-powered vessels. Unilever report that although 20% has already been realised through more efficient logistics and fuelefficiency transport solutions, the remaining 20% of the target is more challenging to acheive. Additionally, Unilever is constructing its own EUR 50 million LNG- fuelled vessel, which is to become operational in 2017. ∎

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Ship Efficiency Review News Round-Up

NEWS ROUND-UP TIDAL WAVE OF RATIFICATIONS FAIL TO TRIGGER BALLAST WATER CONVENTION ENTRY INTO FORCE The International Maritime Organization (IMO) has confirmed that the tonnage requirements for the Ballast Water Management Convention to enter into force were not reached following a spate of member states ratifying the convention in late 2015. It was officially announced on January 15, 2016 that following an extensive review of global shipping tonnage, the recent ratifications of the Ballast Water Convention by Morocco, Finland and Indonesia did not surmount to the sufficient tonnage required to trigger the entry into force of the Convention. Forty-seven countries have now ratified the convention, substantially more than the 30 required,

but their combined fleets comprise, at most, 34.56 per cent of global tonnage, with 35 per cent required for entry into force.∎

WÄRTSILÄ TO DEVELOP ZERO EMISSIONS FERRY CONCEPT

PORT OF ROTTERDAM UNVEILS LNG BUNKERING INCENTIVE SCHEME

A new concept for a series of low or zero emissions shuttle ferries is to be launched by Wärtsilä. The concept will focus on designing ferries that are highly efficient, have low resistance above and below the water line, and are designed to run entirely on batteries or in a battery-engine hybrid configuration with liquefied natural gas (LNG) or biofuel. According to Wärtsilä, this concept will reduce fuel consumption between 50-100%. Through plug-in operation fuel consumption would be reduced by 100% compared to conventional installations and all local emissions would be completely eliminated. With the plug-in hybrid configuration, emissions would be reduced by up to 50%. Furthermore, the concept features Wärtsilä’s inductive wireless charging system which eliminates physical cable connections to reduce wear and tear, and allows ferries to begin charging immediately when arriving at quay, also saving time and energy. A complete electrical and automation package is also said to be included, incorporating Wärtsilä’s azimuth propulsion units and a complete bridge control system. ∎

Under a new incentive scheme launched by the Port of Rotterdam, vessels that bunker Liquefied Natural Gas (LNG) will have the chance to take advantage of 10% discount on gross seaport dues until 2020. The Port of Rotterdam Authority has reserved a total of EUR 1.5 million for this incentive. This move to encourage LNG bunkering at the port came following an announcement made by Shell that they will begin using the first LNG bunkers at the port in early 2017. Containerships has also stated that it will operate and bunker two LNG-fuelled vessels in Rotterdam from 2017. In addition to the new incentive, the Port of Rotterdam Authority is also supporting the Environmental Ship Index (ESI) and the Green Award by offering incentives to cleaner ships. In total, the application of these two schemes will see the Port Authority provide between EUR 1.5 to 2 million in incentives annually to encourage sustainable shipping. The The Port of Antwerp has also contributed to making LNG fuel a reality for barge operators to use LNG fuel through the LNG Master Plan for the Rhine-Main-Danube. ∎

www.fathommaritimeintelligence.com

10.24

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Ship Efficiency Review Who’s Doing What

WHO’S

DOING WHAT? BG BRAZIL ADVANCES SHIP EFFICIENCY WITH NEW HULL DESIGN BG Brazil has unveiled a new hull design for its Liquefied Natural Gas (LNG) carriers that will reduce fuel consumption and emissions by 3 - 5%. Working on the project for 18 months, the BG Brazil team and partners rethought the entire ship design, including the shape of the hull and arrangement of the cargo tanks to not only improve efficiency and fuel consumption, but to also develop a ship design that would be practical and cost effective to build. The company report that per annum they could save approximately 32,000 tonnes of LNG fuel based on their fleet of 30-40 ships, each burning around 80 tonnes of fuel per day. BG Brazil plans to unveil the final ship design in March 2016 and to industrialise it thereafter. ∎

PIONEER MARINE TAKES DELIVERY OF SECOND ECO-DESIGN HANDYSIZE SHIP

Pioneer Marine has taken delivery of another Green Dolphin eco-design handysize ship. The M.V Kite Bay, a 38,419 DWT bulk carrier is equipped with ABB’s Octopus software system for fuel consumption optimisation and also hosts mass flow metres on it’s bunker fuel line. The ship, which was constructed at Yangzhou Guoyu Shipbuilding Co., Ltd, China is Pioneer’s second Green Dolphin eco-design handysize ship. The delivery of this ship expands the company’s total operating fleet to fourteen handysize ships and one handymax ship. A further seven ships are due for delivery in 2016 and 2017. ∎

BLUE STAR FERRIES WINS AWARD FOR SOLAR TECH DEPLOYMENT Blue Star Maritime S.A (Blue Star Ferries), a subsidiary of Attica Group, has won a Silver Award at the Energy Mastering Awards 2015 for its pilot implementation and operation of a photovoltaic unit onboard the Blue Star Delos ferry. This solar technology deployment is the first of its kind to be executed onboard a ship and is expected to lead to a range of further developments for renewable energy sources in the industry. Blue Star Ferries has been cooperating with solar tech company Eco Marine Power (EMP) since October 2014 on this project. Due to the promising results from the pilot application, Blue Star Ferries has decided to further upgrade the system while also looking into expanding onboard other ships of the Attica Group. ∎

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ESL SHIPPING ORDERS WORLD’S FIRST LNG-FUELLED BULKERS Finnish dry bulk shipping company ESL Shipping has revealed plans to order two large LNG-fuelled bulk carriers from Chinese shipbuilder Sinotrans & CSC Qingshan Shipyard. The 25,600 DWT ships will be designed by Deltamarin and will feature B.Delta26LNG design. They will be equipped with both dualfuel main and auxiliary machinery. ∎

SCANDLINES INVEST IN PORT-SIDE SCRUBBER WATER TREATMENT SYSTEM

Scandlines has chosen Luxembourgbased APATEQ to develop, build and supply a new compact scrubber water treatment system in Gedser harbour, Germany, for use by two of its ferries. APATEQ’s containerised MarinePaq plant will treat wastewater produced by the exhaust gas cleaning system onboard the ferries, removing particles of heavy metals, hydrocarbons and soot. The MarinePaq system uses high-efficiency primary treatment, followed by ultrafiltration and heavy metal extraction. Following the MarinePaq treatment processes, the effluent produced can be discharged directly into Gedser harbour. Any sludge produced is then compacted by an integrated chamber filter press before it is safely disposed of in landfill sites. The plant will be delivered, installed and commissioned in the harbour in spring 2016. ∎

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Ship Efficiency Review Who’s Doing What

WHO’S

DOING WHAT? BALEÀRIA ECO-FERRY ON THE HORIZON Baleària is to build an eco-efficient, Liquefied Natural Gas (LNG)-powered, smartship ferry that will host solar power generating technology. The ferry will be the first of its kind to be operated by LNG in the Mediterranean, will feature a dual-fuel engine to allow operation with both natural gas and liquid fuel. It will also have solar panels, optimised hull design for power consumption reduction, high efficiency propellers, hull coatings to reduce resistance and LED lighting technology. Furthermore, a variety of smartship features will be integrated into the ferry. The company estimates that 40% reductions of Carbon Dioxide (CO2), Nitrogen Oxides (NOx), sulphur and particulate matter or greater, can be achieved. The ferry will be built at Aval Shipyard, Spain, and will set off on its first voyage in 2019.∎

STENA REDERI CONVERTS SECOND ENGINE FOR METHANOL USE Stena Rederi has undertaken its second engine conversion to dual-fuel for methanol use, this time on its Ro-Pax vessel the Stena Germanica. The conversion follows the success of Stena Rederi’s first methanol engine conversion which to-date has notched up 700 hours of successful operation. The Stena Germanica ferry can now run on a fuel mix of 95% methanol and 5% Marine Gas Oil (MGO) at full engine load and around 90% methanol and 10% MGO at half load. The switch to this fuel mix has facilitated an almost 100% decrease in Sulphur Oxides (SOx) and particulate matter with Nitrogen Oxides (NOx) reduced by 60%. ∎

MAERSK ORDERS 14 DESMI OCEAN GUARD BALLAST WATER SYSTEMS

Maersk Line has ordered 14 RayClean ballast water treatment systems (BWTS) from Desmi Ocean Guard A/S. The RayClean 500 BWTS are to be fitted to seven new container ships, each ship to host two systems. The contract also includes the option for two additional ships. Desmi Ocean Guard’s BWTS has completed all the required testing for United States Coast Guard (USCG) Type Approval and a full Type Approval application was submitted to the USCG earlier this year. The ships are to be built at the COSCO Zhoushan shipyard, China and are due to be fitted with the BWTS between 2016 and 2017.∎ www.fathommaritimeintelligence.com

CARNIVAL RECOGNISED FOR ENERGY & EMISSIONS TRANSPARENCY Carnival Corporation has been awarded a position on the FTSE (Financial Times Stock Exchange) 350 and the S&P (Standard & Poor’s) 500 Climate Disclosure Leadership Index (CDLI) due to the quality of climate change related information that it has disclosed to investors. The company has earned its high position on the index by releasing high quality carbon emissions and energy data through Carbon Disclosure Project’s (CDP) climate change program, with the data having been independently assessed against CDPs scoring methodology and marked out of 100. Carnival Corporation received a score of 99, which puts it in the top 10% of organisations constituting the CDLI. In 2014, Carnival Corporation reduced its CO2 emissions by 20% as well as announcing its four next-generation cruise ships that will be powered by Liquefied Natural Gas (LNG). The company revealed its future goals, including developing, deploying and operating exhaust gas cleaning systems, including a US $400million investment in the systems to reduce Sulphur Oxides (SOx) emissions. Furthermore, Carnival Corporation is set to increase its ships’ cold ironing capability. The company’s latest sustainability report stated that the company has reduced its CO2 emissions by 20%, one year ahead of its planned schedule. ∎

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Ship Efficiency Review In-Depth Insight

THE YEAR OF INNOVATION

million research project to develop technologies to support autonomous shipping alongside several other industry heavyweights. This is a The quest to save fuel was once the great and mighty catalyst for technological project to keep an eye on as it innovation in the industry. When oil prices slumped in late 2013 and continued will certainly to provoke seeds of to decrease thereafter the focus of the technology innovators quickly shifted innovation in 2016. to developing solutions that support ship owner and operator efforts to future During a recent Innovation Day proof ships in order to remain commercially sustainable. Of course, fuel saving hosted by DNV GL, several ship didn’t slip completely out of the innovator’s sights but in recent years the owners shared their experiences with industry has certainly witnessed the fruition of a few certain technology trends digital innovation and shared insight on are increasing in market dominance while regulatory compliance and streamline how is has advanced their business. operations. Lasse Kristoffersen, Klaveness CEO identified a fundamental and Smart Ships exponential change in the level of Although the industry’s journey towards greater digitalisation has already connectivity, computing power and begun, the power of digital innovation is going to immensely shape the amount of data being generated future. A product of connectivity, big data and advanced connected analytical every day. He told participents at powers, the smart ship is being billed as the next ‘revolution’ for all sectors of the Innovation Day that Klaveness the maritime industry. are investing 1–2% of revenues For global satellite communications provider Inmarsat, ‘Smart Connectivity’ into digital. Investment in digital is THE next ‘revolution’ in the global maritime industry, and they have put applications will continue to grow as their money where their mouth is by investing heavily into launching four the industry switching onto the smart Global Xpress satellites that will give the industry access to seamless global ship concept, that is for certain. connectivity. It is this kind of connectivity will power the smart ship and considerable innovation. Talk of the ‘autonomous ship’ was endemic in 2015. In 2016, it can be NOx Abatement Technology predicted that the tremendous occupation of media headlines will remain January 1, 2016 marked the as stakeholders pushing to make the world’s first autonomous cargo ship a enforcement of the International reality fuel autonomous innovation through various projects and technology Maritime Organization’s (IMO) developments. This year, Rolls-Royce will sit at the helm of a EUR 6.6 Nitrogen Oxides (NOx) Tier III 2015 was a year of turmoil and uncertainty for the maritime industry. However out of stormy seas came strong technology trends and innovations that will make an immense impact on shaping the industry in 2016.

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Ship Efficiency Review In-Depth Insight

standards. These standards stipulate that ships built on or after 1 January, 2016 that will operate within NOx Emission Control Areas (ECAs) must have reduced NOx emissions in correspondence with MARPOL Annex VI Regulation 13, which enforces an 80% NOx emissions reduction compared to Tier I levels. Also, the United States (US) Environmental Protection Agency’s (EPA) Clean Air Act began enforcing “Tier 4”, for diesel engines built after January 1, 2016. A double dose of regulation for ship owners sailing is US waters. Although the IMO’s NOx Tier III regulation is only applicable to newbuilds and those ships with a power output of more than 130kW irrespective of tonnage, all ship owners and operators looking into expanding fleets sailing in NOx ECAs will now need to consider investing in technologies that will ensure compliance. These include Selective Catalytic Reduction (SCR), Exhaust Gas Recirculation (EGR) and Liquefied Natural Gas (LNG) fuel. To date, more than 500 marine SCR systems have been installed. However, this double dose of regulation and the threat

of further NOx controls emerging in other ECAs will drive a wave of innovation across both SCR and EGR technologies, similar to the rapid evolution of scrubber systems when manufacturers were forced to adapt their systems to needs of ship owners and their ship requirements. DNV GL’s recent “Shipping 2020” report forecasted that at least 30– 40 % of newbuildings will be fitted with EGR or SCR systems by 2016 to meet emission requirements. The Classification Society stated in the report that the 80 % reduction requirements enforced by Tier III in NOx ECAs is undoubtedly the main motivator.

more than the 30 required, but their combined fleets comprise, at most, 34.56% of global tonnage, with 35% required for entry into force. The ratification of the current IMO Ballast Water Management Convention will bring in new regulations requiring all ships over 400 gt to install approved systems. The convention means that some 40,000 ships will need to be retrofitted with ballast water management system and newbuild ships will need to hit the water with a system pre-installed. It seems likely that the Convention could be ratified by more Member States imminently, which could surmount to the required tonnage triggering the Convention deployment during 2016 and subsequently enter Ballast Water Management into force in 2017. Systems This will be analogous to opening the The International Maritime Organization flood gates for ship owners investing in (IMO) confirmed at the start of 2016 ballast water treatment systems. that the tonnage requirements for The suggestion that owners and the Ballast Water Management operators might be best to equip Convention to enter into force had themselves with the Step-By-Strep not been reached following a spate of Guide to Ballast Water Management, ratifications in late 2015. published by BIMCO and Fathom Forty-seven countries have now Maritime Intelligence would be a ratified the convention, substantially wise one. ∎

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Ship Efficiency Review In-Depth Insight

ARE YOU PREPARED FOR THE FUTURE OF CLEAN FUELS?

BY LCDR JARROD DEWITZ, U.S. COAST GUARD AT WORLD MARITIME UNIVERSITY

The ‘lifeblood’ of ships is changing. It may not be apparent yet, but the transition is already underway and within the next fifteen years more than half of the oceangoing fleet will likely be operating on fuels other than oil.This drastic change stems, predominantly from global warming. One particular alternative fuel is clean burning Liquefied Natural Gas (LNG), the new ‘lifeblood’, which is set to displace oil as the major marine fuel choice. In terms of clean fuel, LNG does not emit sulphur oxides or particulate matter into the atmosphere and nitrogen oxides are substantially reduced when compared to traditional oil fuels; all contributors to greenhouse gas. LNG is now globally produced and available, marine LNG engines have been designed to achieve industry performance demands, seaports are rapidly developing LNG bunkering infrastructure, and shipyards are receiving substantial increases in LNG fuel re-fits and new-build orders. According to DNV-GL’s July 2015 figures, there are 65 ships operating, or are capable of operating, on LNG fuel. Although this is a fraction of the total world vessel population, this number is expected to grow substantially by 2020 due the impending regulatory mandates. Global sulphur emissions reduction to 0.5% are expected to be put in place by the International Maritime Organization (IMO) and in order to achieve the mandated 20% Energy-Efficiency Design Index reduction, LNG must be part of forward-looking plans. DNV-GL’s new ship order figures identify a confirmed count of 79, which is a key indication that the generation of oil fuels is subsiding. DNV’s ‘Shipping 2020’ report highlighted a total world fleet increase by approximately 50% during this decade, suggesting that an average of roughly 2,000 new vessels will be contracted each year. During such time, assuming the above mandates are in force, DNV maintains the opinion that up to 50% of new ship deliveries could be fitted with gas-fuelled engines by 2020. The current price of oil has certainly reduced this early prediction, but nevertheless it sheds light on the imminent transition. Anecdotally, Chinese river bulk operator, LNG Power Shipping, recently placed an order for 200 LNG-fuelled ships to be delivered in 2016 and a subsequent 400 over the next three years. In early 2015, IMO’s Marine Safety Committee 95 adopted the Code of Safety for Ships Using Gases or Other Low-Flashpoint Fuels (IGF Code), providing standardized design and structural requirements for LNG-fuelled vessels. Complimentary to this, IMO’s Human Element, Training and Watchkeeping Subcommittee proposed draft competency requirements for those mariners who will operate ships that are subject to the IGF Code. The World Maritime University (WMU), under the auspices of the IMO and following the United Nation’s 2030 Agenda for Sustainable Development, has begun

Founded in 1983 by the IMO, a specialized agency of the United Nations, the WMU is a global centre of excellence for maritime and ocean post-graduate education and research. www.wmu.se

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LCDR Jarrod Dewitz preparing for this new future. WMU’s Maritime Energy Research Group (MarEner), seeking to continuously monitor the pulse of the maritime industry’s energy needs, recently partnered a project on LNG fuels on board ships; an On The Mos WayNetwork project co-funded by the European Union. WMU was responsible for developing and delivering a 35 hour theoretical and vocational training course with a practical approach to safe handling of LNG fuels during bunkering and shipboard operations. This course was broadcast from WMU via distance learning and at no cost to approximately 50 participants from across the globe. Additionally, WMU is now offering a new Maritime Energy Management Master of Science Degree that concentrates on efficiencies, as laid out by IMO, by introducing alternative fuel usage, cutting-edge design concepts and operational practices to instil a philosophy of minimizing maritime’s environmental footprint in pursuit of oceans sustainability. In addition, WMU will host an International Conference on Maritime Energy Management in January of 2017. Sea shipping is taking dramatic steps to address the climate change concerns, but will need to continue with aggressive initiatives in order to mitigate the adverse effects to the environment; engine performance improvements and fuel usage innovations are critical.∎

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STEERING SHIPPING’S TECHNOLOGY FUTURE

Transas CEO, Frank Coles

In September 2015, maritime technology company Transas announced that it had appointed Frank Coles, the former president of Inmarsat Maritime and CEO of Globe Wireless, as its new CEO. In the past 25 years Transas has grown from its conception by a small group of professional seafarers, engineers and enthusiasts of maritime computing technologies, in to one of the leading maritime technology companies in the world. From being one of the first companies to offer electronic chart systems and pioneering the development of maritime training simulators, it has built on this platform of digital innovation to offer a wide portfolio of technology products and solutions for maritime safety and navigation. Now, with the industry sitting at the cusp of new era of maritime operations where the boundaries between the ship and the shore are becoming ever more blurred, Transas is probably one a few companies that can actually deliver the technology and solutions needed for the new, integrated maritime infrastructure. This means that Coles, within his new CEO role, is essentially in a unique position to shape the future direction of shipping operations. Ship Efficiency Review’s editor Catherine Austin was first in line to put Coles under the spotlight, the mission being to ascertain how he will catalyse the delivery of this future direction and what we should expect from Transas under his navigation.

The Man At The Helm Of Transas

Upon speaking to Coles, it is quickly evident why Transas felt that he was the man for the job. For some, given his deep history in the satellite communications sector, the news that Coles had taken the helm at a maritime technology solutions company might have been surprising. However, upon examining Coles’ career history to date, it is evident that his resume spans across an impressive range of roles from time at sea to shore based operations through to a career as a maritime lawyer. In more recent years, his roles at Globe Wireless and Inmarsat have seen him at the forefront of the technology revolution in maritime bringing the industry’s connectivity capability to where it is today. “I feel like I’ve spent my career preparing for this moment with the roles that I did”, said Coles. This was clearly a governing factor for Transas luring him away from his other passion of scuba diving. Also, Transas is a company that he has always held tremendous respect for, he says. Having watched the company from afar since a friend joined it some 17 years ago and seeing it grow as a trendsetter and a visionary for the market over the years. His experience at the ‘sharp end of operations’, in his words, is something that Coles intends to use to great effect during his tenure as Transas CEO and he is humbled to now be in the position of being able to positively impact and transform safety, navigation and operations within the industry. Coles also considers his career circle to be satisfyingly complete thanks to the alignment of the work that he undertook mapping out the maritime plans for Inmarsat’s Global Xpress network, one of the new generation of connectivity networks for global shipping industry with the power of Transas’ digital based solutions and mission to provide an integrated ecosystem for the maritime industry. www.fathommaritimeintelligence.com

Ship Efficiency Review In-Depth Insight

A Man On A Mission To Lead The Industry

Transas are perhaps best known for their work in the field of e-navigation and have been involved in numerous EU and government-funded projects that have sought to define e-navigation and safety aspects within the industry. This company, however, has never been one to wait for the industry set the pace, rather the opposite in fact. They have a strong heritage as being industry trailblazers. In Coles’ words they have “created annexes for standards before the standards were even defined”, and this is something Coles wants to take one step further by evolving Transas into a role of being a leader of the entire industry. In his own words, he stated that Transas will be “stepping up to shake things up” in the market, leading the industry on how training should and could happen whilst uniting stakeholders along the way. His approach being, “It’s not enough just to talk about it, we’ve got to walk the talk now in the industry.” Transas’ Vision Statement:

“Transas will lead the way in creating an ecosystem of harmonized integrated solutions in safety, navigation and ship operations. In creating these solutions Transas will unite the global maritime stakeholders in the future of eNavigation and operations.“

And this man is not going to stand still and wait around for everyone to come along and say their piece before action is taken, that’s for sure.

Crew Training Is Central

For many years Coles has spoken out on the importance of the crew and crew training, stating on many occasions that the crew sit at the core of any successful maritime operation. He believes that whilst it’s all very well and good talking about faster communications, better connectivity and increased analytical power, if a shipping company doesn’t have adequately trained people to operate the tools then this will in fact be the greatest hindrance. His standpoint on crew training is strong, his preferred mantra being “competence not certification”. For Coles, preparing the crew for the future of maritime operation is imperative and cannot be actioned via a set of tick lists and certificates; the only way forward is to drill down real competence via adequate training exercises and exposure to simulations that tests mariners. However vocal Coles is around changing the way that the industry approaches crew training, he does harbour great appreciation for the dedication of some ship owners and ship operators to training. This is exemplified, he says, by the great number of training simulators that Transas has sold to date and also the industry’s interest in Transas’ global SIM user conferences for which they have hundreds of industry players in attendance for each and every one.

Creating A Maritime Ecosystem

The new Transas mission statement that Coles has created is unequivocal on the fact that they will be working to integrate all elements of the maritime industry and all systems into one information

environment. The word ecosystem was used heavily by Coles, proving that this is a core mission for him within his new CEO role. For Transas, a harmonised ecosystem represents not just the products that have been created separately for bridge, safety, navigation and operations all operating as separate entities, but rather them they come together as one complete, integrated system. Coles explained that historically the industry has seen multiple vendors making offers to ship owners. For example, communications airtime and hardware from one, navigation equipment from another, engine equipment elsewhere. But with the technology and information demands now required, these elements now need to come together as one solution. The solution, however, is not complete without the means to use the information. Coles feels that Transas is in a great place to provide both the infrastructure but also the tools for the decision making, whether in safety, navigation and operations and training. For this to happen, Coles and Transas will be creating an ecosystem to enable a ship owner or operator to share collected data between his ship and operations so he can make sensible decisions for the safety, the operation and the navigation of the ship. Then that same data and information can be shared, where necessary and agreed, with external parties such as traffic control, regulators and environmental protection forces, for example. This harmonised ecosystem that Transas will seek to create will be of modular formation so that a ship owner or operator can build up the bricks as they need them. For Coles the crux of this ecosystem development is to put information around navigation and operations in place where people can extract it easily to make better decisions.

Continues Overleaf... www.fathommaritimeintelligence.com

Ship Efficiency Review In-Depth Insight

Educating The Industry

In Coles’ opinion, in order for more ship owners to invest in software products and services, technology companies need to stop trying to hard sell their software products and instead switch to trying to solve ship owner and operator problems and educating potential customers. This rule also applies to Transas, says Coles, and the approach that he will drive forward. Coles affirmed that Transas will be changing to selling services and solutions rather than selling simply hardware, software and products. He reflected upon a remark made by a ship operator delegate at a Smart Transas CEO, Frank Coles Operations seminar in Hong Kong last year that drove home the dire need for the industry to be educated and Addressing Market Fragmentation be supported to transform. This ship In Coles’ opinion, “fragmentation is probably our biggest barrier in this industry,” operator stood up and said to Coles who and there are many barriers to dismantle that Coles has set his sights upon. was on the speaker podium at the time, Price wars are one catalyst for fragmentation in the market according to Coles, “we know we need to change, we just and although Transas operates as a commercial company, Coles’ mission is to not need someone to show us how to do it”. suddenly drop the price of Transas’ products or make any big moves to remove This is a comment that Coles says has competitors from the market. stayed with him and a responsibility he As he reflects, there are always companies that can do it for cheaper but they does not carry lightly. threaten quality by creating the wrong type of competition that drives prices and He is determined to pursue the quality of products and services down. education path in his CEO role at Transas Taking ECDIS as an example he says “we see ECDIS price wars going on with and create regular opportunities for the people coming to the market but not really complying. But you get what you pay industry to gather, discuss their issues for and I suspect you will see a lot of the smaller players of ECDIS unable to keep together and also understand the power up with compliance and global customer service requirements”. of the technology through experiencing it Coles also emphasised how short sighted it can be to select such an option. first-hand. He stated, “ECDIS can be considered as being one of the stepping stones in to By working with the industry in the future ecosystem that is required for integration of maritime operations. So this way, Coles intends develop this unless you have the vision and capability to create the complete ecosystem then ecosystem that really does equip the you will be a side player in the game.” industry and its crew for the future.

Selling The Savings

Coles is also refreshingly honest about problems that exist in the relationship between vendors and suppliers, believing that inherent mistrust is a major factor that is negatively impacting the maritime technology sector and uptake of the solutions. He acknowledges, however, the responsibility that technology companies need to take in having created this relationship of mistrust. From the vendor side he also stated that there is a perception of “you’re going to try turn my price down as far as possible” and that is not a healthy relationship, in his view, to facilitating the investment in the development of a solution that makes sense to the industry. He described the reality of scepticism in the market, “I’ve always said ship owners primarily buy for one of two reasons, they are forced to by regulation or they think they can save money, and we haven’t yet, as a software solutions environment, found the complete solution to showing ship owners how technology saves them money. Ship owners and operators may be very sceptical, but actually they are sceptical because we probably haven’t done a good enough job of selling the savings.” www.fathommaritimeintelligence.com

Transas Means Business

As many will know, within the maritime field, Transas was once commonly referred to as Transas Marine. However, as Coles explained to Ship Efficiency Review, having in recent times divested of non-maritime interests, this distinction is no longer necessary. In his words, “Transas means marine”. Having the opportunity to understand the vision and direction Coles has for Transas coupled with his history in driving real change in the sector, it is obvious that under Frank Coles’ watch, Transas does not just mean marine….Transas means business. ∎

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Ship Efficiency Review Fuels & Emissions

FUTURE FUEL: THE MARINE SUPPLY CHAIN BEYOND 2016 The marine energy market is experiencing significant change. Over the past ten years, shipping has been burdened by low freight rates due to overcapacity, sluggish economic growth, dramatically fluctuating oil prices and increasing environmental regulation. All of which have changed the dynamic of the marine energy supply chain, a chain that has far more risks today, from both a purchasing and supply perspective. The reality is that there are many stakeholders from ship owners and financiers to fuel suppliers and infrastructure companies that are frozen by recent trends and are avoiding taking the decisive steps necessary to successfully adapt and compete in today’s and the future market. The impact of the 2015 0.1% sulphur ECA (Emission Control Area) was eased by lower oil prices. The genuine concern of expensive fuel costs creating financial strain and possibly worse for some, never came to fruition. However, with the likelihood that the global 0.5% sulphur ECA will be introduced in 2020 and not 2025, significant concerns and questions are raised over supply and demand, which compliance solutions to adopt and the overall make-up of the marine energy supply chain. The dominant key unknown is, of course, what will be the price of crude oil as we near 2020, and how this impacts the products of refineries and in particular the price of distillates. Right now, it appears that OPEC is unable or unwilling to provide a floor to the price of crude, and it seems unlikely this will change soon. The growth in oversupply sustains, and will apparently continue given the recent lifting of sanctions against Iran, and the subsequent influx into the market of 500,000 barrels per day of Iranian crude oil. In the short-term, distillates are the most widely used and cost-efficient form of compliance. However, if crude oil prices rise to a level between $60 and $85 per barrel, as the IEA and others predict, then everything becomes more complex. LNG is a viable and proven fuel, but much needs to be developed in terms of the global bunkering infrastructure, health and safety standards, regulations and its price competitiveness against distillate. If crude oil and distillate prices do rise, then vessel emission scrubbers also come into play. HFO bunkers are ultimately a by-product, which can only realistically be disposed of in large volumes into the marine transportation market. To make this happen, refiners must and will need to find a competitive price point. What we do know, is that there will be much uncertainty about which solution to adopt. From a fuel purchasing perspective, charterers, owners and operators need to acquire the knowledge to make definitive decisions, while dealing with the very real concerns over fuel quality and the financial risks associated with fuel procurement. The majority of fuel suppliers lack sophistication in their internal sales and marketing infrastructure, and the ability to sell in the consultative fashion that the buy-side increasingly demands. Suppliers need to move from a purely transactional relationship

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By Adrian Tolson, Senior Partner, 20|20 Marine Energy

to one of partnership, where they provide counsel based on the issues and challenges that customers face. With these challenges, comes inevitable opportunity. Fuel suppliers that can remove clients’ uncertainty and replace it with clarity and a clear path for progression will develop long-term commercial advantage. Ship owners and operators that can establish control over the transaction chain, implementing an effective procurement and compliance strategy, will reap the benefits. Port authorities that can create and encourage the right bunkering infrastructure, that meets the demands of a market in transition, will position themselves much higher up the competitive ladder than their peers. We are operating in difficult and volatile times. Those that survive and succeed, will be the companies and organisations that adapt to the challenges head on; understanding where they have gaps in insight, knowledge and skills and adopting a more professional and considered approach to procurement, fuel supply and infrastructure development. Only then will they create businesses and organisations that are fit for purpose and financially successful in the changing marine fuel space. Ship registries require that the ownership of the vessel must be held by a corporation or legal entity from said flag state. Panama, in the contrary does not impose such requirement and thus allows any individual or company regardless of nationality or place of incorporation as eligible to register any type of vessels. ∎

Ship Efficiency Review Fuels & Emissions

RECYCLED ‘SLOPS’ FUEL

GOES FROM STRENGTH TO STRENGTH A pioneering technology that can recycle marine hydrocarbon waste (known as slops) into marine fuel has been making great strides since it was initially unveiled to the industry in late-2015. French company Ecoslops’ innovative fuel recycling process involves the collection of slops from waste collectors and ports, as well as directly from ship owners and operators. The slops are then pre-treated by decantation and centrifugation before being processed into a vacuum distillation column and the hydrocarbons are recycled into marine fuels and light bitumen. The resulting water is decontaminated in a treatment plant before being returned to the environment. This innovative way of producing fuel is particularly advantageous to the industry as it facilitates the creation of sustainable marine bunker fuel products from residues that would otherwise be waste. According to Ecoslops, 3,200 of slops were imported from Northern Europe and subsequently 1,400 tonnes of fuel products were produced for the marine market in Q3 2015. The success of the technology and its uptake by the industry is evidenced by key infrastructure developments that have been secured by the company over the past few months. The company is set to commence industrial production of the recycled fuel in the Port of Sinès, Portugal, a facility that has the capacity to produce 30,000

metric tons of recycled fuel every year. They have also subsequently delivered the first volume of marine fuel products compliant with ISO8217. They continued their progressions shortly after the ink set on the Port of Sinès deal by signing a Letter of Intent to explore the feasibility of creating an oil residue recycling plant in the Romanian Port of Constanta on the Black Sea. Towards the end of 2015 the French innovators had passed another milestone, receiving an Agreement in Principle (AIP) from the Port of Abidjan in the Ivory Coast, which will provide the company with five hectares of land within the port boundaries on which to construct a new recycling plant.They will now begin preliminary studies and analysis to evaluate the full financial and technical considerations of the project, including having a strong focus on establishing local partnerships on both an industrial and financial basis. Ecoslops and their fuel recycling technology have certainly established a strong foothold in Europe and west Africa thus far. Now their sights are firmly set on completing signing for three new projects by 2017 and continuing to pursue discussions with major operators to scope further opportunities in the Mediterranean and Northern Europe.∎

SHIP TRIALS BOOST CONFIDENCE IN EMULSIFIED FUEL

An emulsified fuel comprising M80 as the base fuel, 8% water plus ~0.6% emulsifying agent has been successfully trialled in a Wärtsilä 6R22HF engine on board a Kiwi Rail Interislander ferry. The trial resulted in independently verified reductions in specific fuel consumption of 5%. The success of this trial, conducted onboard the 1982-built Arahura between late 2014 and May 2015, will further boost confidence in the application of emulsified fuel technology to marine engines. Leigh Ramsey, Managing Director Blended Fuel Solutions New Zealand Limited, the company that supplied the emulsified fuel mixing equipment, an emulsifying “recipe” and emulsifying agent, told Ship Efficiency Review that although obtaining independently verified results took some time, it is an essential step for prospering industry awareness and improving the credibility of emulsified fuel solutions to end users. The trial was supported by the Energy Efficiency and Conservation Authority (EECA) Technology Demonstration programme and monitored by an

independent fuel consultant. The independent consultant’s report, compiled in September 2015, found that the use of emulsified fuel brought about an improvement in specific fuel consumption of to the order of 5%. The report also described how the use of emulsified fuel brought about an improvement in the base engine performance, through cleaning of the engine or other, which resulted in an improvement of to the order of 2% in the specific fuel consumption, when returned to operation on M80 fuel. However, the trial did highlight the fact that for lowload operation there is no advantage in using emulsified fuel, suggesting that a fuel economy benefit would be realised if the generator was operated for the majority of the time under medium to high loads.∎ www.fathommaritimeintelligence.com

Ship Efficiency Review Fuels & Emissions

SUSTAINABLE BIOFUEL HAS A CRUCIAL ROLE TO PLAY IN THE MARINE ENERGY MIX

BY DIRK KRONEMEIJER, CEO, GOODFUELS MARINE

90% of the world’s goods are transported by ship. Millions of shipments load and unload at thousands of ports every year. It provides our energy, puts food on our tables and clothes on our backs. Shipping is fundamental to how we live and has been for hundreds of years.

by 2030, driven by both regulatory and market factors, which include the introduction of a global Emission Control Area (ECA) and greater financial incentives in ports for ships that emit less emissions. While the growth figure is an estimate, However, shipping also contributes approximately the same amount of Carbon GoodFuels is working with academic Dioxide (CO2) as Germany, although while Germany is on track to reduce its partners to take a more vertical carbon emissions by 80% by 2050, the International Maritime Organisation analysis of market size potential. (IMO) Greenhouse Gas Study 2014 states that shipping is projected to increase Similar to the effect on price when its CO2 emissions by between 50-250% over the same period. economies of scale are applied to For shipping to play its part in contributing towards a 2-degree cap, a other commodities, biofuel is no paradigm shift is required in terms of ship design, operation, integration of different. smart technology, and – crucially – new types of low carbon bunker fuels. In the near term, local incentives It is within this context that GoodFuels Marine, the first marine biofuel will play a significant role in biofuel company focused on the global commercial fleet, set out to develop sustainable take-up. The Port of Rotterdam and ‘drop in’ marine fuels for the shipping industry. Launching our initial project the Port of Amsterdam are already with Boskalis and Wärtsilä in October of this year, the aim of the initiative is incentivising the use of lower carbon to demonstrate that marine biofuels offer a truly sustainable, safe, reliable fuels and we fully expect that other scalable, competitive, low emission alternative to traditional marine fuels such ports will follow. Moreover, new as Heavy Fuel Oil (HFO), Marine Diesel Oil (MDO) and Marine Gas Oil (MGO). technologies that enable sustainable We recognise that, to scale supply for the international commercial fuels to be derived from innovative shipping fleet, marine biofuels should be comparable and compatible with lower cost sources will ensure fuel current shipping fuels and truly sustainable. And this must apply to principles prices become lower still. The fact concerning all aspects of the biofuel chain, including the environmental, social, that sustainable biofuel is ‘drop in’ legal, local and global effect of biofuel extraction, production and delivery. also helps minimise risk – so if an incentive scheme is retracted or a Purchasing Of Fuel Increasingly More Holistic shipowner wants to cut back or move For the likes of Boskalis and other forward-looking companies that are the vessel to an alternative location, looking at the purchasing of fuel increasingly more holistically, Corporate the vessel can immediately and easily Social Responsibility (CSR) has become an important factor when taking revert to traditional fossil based fuel procurement decisions. Sustainable biofuels replace fossil fuels and without penalty, having not needed to significantly reduce both local emissions such as SOx and Particulate Matter invest in any infrastructure. (PM), but most significantly, sustainable marine biofuels can enable significant Regulatory and market forces are reductions in levels of CO2. driving change. The international There are other factors too. The ability to use ‘drop in’ fuel (put simply, to shipping market is ready and well blend with traditional fossil fuels) is critical, as it ensures that current logistical placed to embrace a truly sustainable, and operational systems can remain in place and every party can stay in long-term alternative fuel that can meet a ‘business-as-usual’ mode. This in turn ensures that sustainable biofuel all stringent technical, economical and requires no investment in infrastructure; all that is required is a standard fuel sustainability standards that must be tank and ex-pipe facility at berth or a standard bunker barge. Sustainable adhered to. As part of the energy mix ‘drop in’ biofuels ensure that all warranties remain in place, while there are no alongside Liquefied Natural Gas (LNG) changes required to engine or infrastructure. In addition, biofuels are a clean, and other energy efficiency measures, high performance fuel that produces less sludge waste and requires less marine biofuels have a crucial role to engine maintenance. play in creating a more sustainable and Scale will be a key factor in further reducing the cost of sustainable marine low emission future for the shipping biofuel. Biofuels could make up 5 -10% of the total global marine fuel mix industry.∎ www.fathommaritimeintelligence.com

Ship Efficiency Review Fuels & Emissions

Bunker Price History Rotterdam October 26 – January 25, 2016

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Ship Efficiency Review Environmental Technology

EXHAUSTING ALL AVENUES OF INNOVATION The speed at which marine scrubbers have advanced is nothing short of rapid. From initially being perceived as bulky and unpractical structures, they have evolved into systems of relatively small size, with ultimate flexibility and operation via minimal human interaction.

be installed whilst the ship is sailing, annihilating the requirement for a ship to be in port for the system installation, thus reducing downtime. This stands as a prime example of how not just the scrubbers themselves, but how technology and innovation has reached new highs where it is possible Such great feats of innovation have been spurred on by ship owner demands to retrofit equipment while maintaining for such systems to have limited impact on their operations. Cargo space reduction is a major no-no in the eyes of the ship owner, as are intensive training a ship’s business as usual operation. requirements for crew to be able to operate and maintain such systems. There is Innovation is also abundant around available financing options for a thirst for scrubbers that are flexible in terms of operational modes and this has scrubber technology. Greater access bred a new wave of hybrid machine innovation. On a mission to reduce the impact of scrubber systems on cargo space, many to financing and more avenues for scrubber manufacturers have focussed on space requirement reduction as a key scrubber technology investment will only further spur innovation in factor. For example, there are numerous systems on the market that double up as a silencer, thus ensuring that they serve a multiple purpose without impacting this technology field. For instance, Clean Marine and Wärtsilä provide a the ship’s cargo carrying capacity. Using scrubbers as silencers also means that funding solution to drive the uptake of no structural modifications are required, therefore the ship benefits from an scrubbers via a fuel adder, providing overall low weight resulting in minimal changes to stability conditions. It was Green Tech Marine, now operating as Yara Marine Technologies following a fuel premium on the price of Heavy Fuel Oil (HFO) and allowing the ship its acquisition by Yara International in 2015, that pioneered the installation of owner to install the scrubber without scrubbers in the casing and funnel of a ferry to reduce loss of cargo space. This having the burden of the associated innovative approach catalysed further developments of scrubber systems that upfront costs. could fit into this area of the ship. A defining milestone for scrubber innovation. In terms of future development, Over the past few years the market has welcomed the emergence of hybrid further uptake-driven innovation scrubbers that offer flexibility for operation in either open-loop or closed-loop will depend on market conditions mode, using seawater or freshwater respectively, to suit whichever waters the and fuel prices. Also, the adoption ship is sailing in. of the technology is dependent on CR Ocean Engineering’s scrubber system exemplifies progressions that have the choice by ship operators to fuel been made in hybrid scrubber technology. Their scrubber can operate in openswitch between HFO and distillates loop or closed-loop mode, offering the flexibility for use in varying alkalinities of water. Likewise, DuPont’s hybrid scrubber also allows for operation in freshwater or use Liquefied Natural Gas (LNG) as environments, but allows the operator switch the scrubber from open-loop when a fuel. However, in the face of competition the water alkalinity changes. from other fuel types and fuel Hybrid systems are also making waves in the industry by becoming more switching, scrubber manufacturers autonomous in their operation. Such hybrid systems that harness greater autonomy can automatically detect when the ship is entering different alkalinities are keeping the competition close by furiously innovating to adapt their of water and subsequently alter their operational mode to suit the processing systems to ship operator’s needs requirements of that particular region. and fluctuating market conditions. Another factor that has been the focus for innovation by manufacturers is the speed of installation and the minimisation of ship downtime required for scrubber Ensuring their place in the marine market is secure. ∎ installation. CR Ocean Engineering has developed a scrubber system that can

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THE

MONEY-SAVING ALTERNATIVE TO

LOW SULFUR FUEL CR Ocean Engineering (CROE®) offers ship owners and operators a proven low-cost alternative to the conversion to distillate fuel. Backed by nearly 100 years of experience, CROE® provides cost-effective systems customized to your specific needs and designed to help you save money and remain competitive. Our systems can easily achieve the 0.1% Sulfur equivalency when burning high Sulfur fuel oil. The CROE® Exhaust Gas Cleaning System (also known as Scrubbers) offers:

• all metallic construction • ability to run dry • designed for full engine temperature • in-line construction for single engines or multistreaming

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CROE® Scrubbers are very cost eﬀective and can be delivered on a short schedule when needed.Let us guide you to the most eﬃcient and compliant solution. Contact: nconfuorto@croceanx.com Tel. +1 (973) 455-0005 www.croceanx.com

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Ship Efficiency Review Environmental Technology

THE ANNIVERSARY OF 0.1% ECA SULPHUR LIMITS It has been just over a year since ships trading in designated Emission Control Areas (ECAs) were forced to use fuel oil with a sulphur content no greater than 0.10%, against the limit of 1.00% that was in effect up until 31 December 2014. Of course, this regulatory shift also opened the doors for exhaust gas cleaning technology uptake, due to its designation as an approved equivalent method to meet Sulphur Oxides (SOx) emission requirements. Over the past year, news stories covering scrubber investments and subsequent installations have been in abundance across the industry’s trade media. Equally, news platforms were littered with details about scrubbers having suffered a less than expected uptake by the industry. Sharing the same column inches, scrubber technology’s rivals Liquefied Natural Gas (LNG) and fuel switching have also been firmly in the spotlight over the past 12 months. In fact, the hazards of fuel switching between Heavy Fuel Oil (HFO) and Marine Gas Oil (MGO) when entering an ECA became some what of a collection of horror stories as the year 2015 was dawning. The word

One key factor that has been steering the uptake of scrubbers is the cost of bunker fuel. The uptake of scrubbers is heavily aligned with the cost of fuel versus, the operational time a ship spends in an ECA. Also, the cost of the systems has a pivotal influence on ship owners’ decision to invest. Scrubbers generally have a one off cost of around US $3 - 4 million with operational costs depending largely on the maintenance required and the cost of additional products such as caustic soda for cleaning. However, when comparing the use of scrubber technology to fuel switching for ships that are in ECAs for even part of their time, for example, the cost of scrubber investment may make sense. If a ship sails in an ECA for at least 50% of the time, fuel switching can be an expensive ‘black out’ became synonymous with the word fuel switching, especially method for compliance due to the in the earlier months of 2015. However, the fact that many ship operators cost of low sulphur fuel options successfully continue to fuel switch suggests that with proper procedures in (previously records show anything place, the fuel switching process can be conducted without a ship blacking for MGO between US $470 and out each time it enters an ECA. US $1000/tonne, however the The use of LNG-powered ships as a method of compliance is also rapidly price of low sulphur fuel options rising. For instance, Crowley and TOTE have within the last year announced are currently in free fall at the their commitment to greener shipping by deploying LNG-powered ships. time of writing) combined with Infrastructural requirements meant that initial uptake of LNG as a marine fuel the additional training that is has been slow, but in the past year, LNG-powered ships have sailed into the required for the crew to conduct limelight thanks to the new infrastructural developments and the establishment the procedures required to avoid of further regulations that limit other emissions, such as Nitrogen Oxides (NOx), the occurrence of ‘black outs’. that scrubber technology alone are not capable of dealing with. Hence the reason that so many Yet it is clear that scrubbers are being heavily utilised within the industry, ship owners operating in ECAs for especially on certain ship types. Ferries and cruise ships being the majority a hefty percentage of their time are adopters of the technology. Norwegian Cruise Line, Royal Caribbean, Scandlines, opting for scrubbers today as their Bore Ltd, and Finnlines were adopters in 2014/2105 to name just a few. method of emissions compliance.∎ www.fathommaritimeintelligence.com

Ship Efficiency Review Environmental Technology

WAKE UP AND SMELL THE COFFEE SULPHUR

ARE CURRENT SULPHUR EMISSIONS POLICING EFFORTS ADEQUATE? 2016 welcomed a forceful warning from the Danish Maritime Authority (DMA) that it will continue to strengthen its enforcement of sulphur emissions in both Denmark and sulphur ECA countries. Notably launched on the anniversary of tightened controls around fuel sulphur content limits within Emission Control Areas (ECAs), a joint 2016 Action Plan that the DMA developed in cooperation with the Danish Shipowners’ Association, vowed to further efforts for sulphur emission policing. The DMA’s mission statement? To pursue the experiences gained by the authorities in 2015 through both port control and air surveillance in order to improve enforcement of International Maritime Organization (IMO) emission standards. A key component of this Action Plan is the emphasis on the use of drone surveillance and sniffer technologies following successful use last year. They will also take focus on fuel suppliers to make it possible for merchant ships to comply with IMO sulphur emission requirements. Interestingly, the promotion of self-regulation is a core feature of the Action Plan, an act that will be encouraged by promoting technology investments that reduce sulphur emissions to make it possible for ship owners to comply and to supplement the efforts made by the authorities.

In order to facilitate tighter control, the Action plan details that data collection from various sources is vital and will therefore require international cooperation in the European Union (EU) and the IMO to enable sulphur ECA country authorities to optimise their enforcement. Although many in the industry might argue that the monitoring of regulatory compliance when it comes to emissions in ECAs is minimal, the policing of compliance is gradually becoming more common and stringent as time goes by. However, it is by no means uniform across the globe’s designated ECAs, their authorities and posts that reside within them. But this report may strike fear in the eyes of the ship operator once more as efforts look set to intensify. ∎

MORE SHIPS SET SAIL WITH

MULTIPLE SCRUBBER UNIT SYSTEMS Ships showcasing large, multi scrubber systems are becoming an increasingly normal occurrence in the industry as scrubber technology becomes more compact and adaptable to multiple engine arrangements. In November 2015, the cruise ship Norwegian Escape set sail from Hamburg with the largest marine scrubber system ever to be fitted to a ship. Despite each individual scrubber’s compact and lightweight properties, the conglomeration of scrubber units defines the Norwegian Escape as having the largest Sulphur Oxides (SOx) abatement system fitted in the world to-date. Each one of Norwegian Escape’s refined engines is fitted with a scrubber, seeking to remove 99% of the SOx emissions from each engine’s exhaust. The ability to fit such an array of systems to a single ship is what has

made this particular instalment one of great interest and discussion within the wider maritime industry. Although marine scrubbers have not been on the marine market for long period of time relative to other technology, the development of smaller, compact systems has progressed immensely over the past few years. The number of systems being applied to ships is increasing and more and more ship owners and operators are beginning to integrate three or four scrubbers to their ships and with higher technological integrity than ever, this is now possible. ∎ www.fathommaritimeintelligence.com

Ship Efficiency Review Strategies

RAISING THE FLAG FOR SHIP EFFICIENCY Ship registration can be likened to a person receiving a passport, however the act of registering a Ship to a flag represents a significant undertaking and demands the consideration of a myriad of factors. After all, what ship owners are actually doing is registering a significant asset in the jurisdiction of a state, country or territory.

Amongst the traditional range of factors that that ship owners must consider, for example registration fees and taxes, the reputation of the flag State, and economic Incentives for enrollment, incentives offered by a Flag Administrations relating to the efficiency and environmental impact of vessels are increasingly numerous and, according to one maritime law expert, do influence ship owners to register their fleet under a specific flag. That maritime law expert, Jorge Quijano of Quijano & Associates, the first Panamanian maritime lawyers to have an office in Europe, described to Ship Efficiency Review what ship owners should be considering when it comes to making ship registry decisions and how he believes “green incentive schemes” can influence ship registration. Quijano also shared insight into how the relatively small Central American country of Panama has come to rule the waves when it comes to ship registry, a flag state that currently maintains the largest registered shipping fleet in the world. SER: What Advice Should Ship Owners Look For Before Making Ship Registry Choices? JQ: Vessel registration is a strict requirement for ships willing to sail internationally and in certain cases within domestic waters. Pursuant to latest statistics, the percentage share of world´s registered tonnage is led by Panama and followed by Liberia, Marshall Islands and Hong Kong which are widely considered “open registries” or “flags of convenience”. In this sense, ship owners must look forward and hire technical, financial and legal advice whenever purchasing a vessel as these are the most important aspects that come into play during the shipping market nowadays. For example, certain registries require a minimum of number of crew members that are citizens of that flag state while others are more flexible on such restriction.

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Regarding the financial aspect, banks and financial institutions incline their preference for Panama Flag as they can fully rely on the Public Registry of Panama at the moment of registration of their preliminary or permanent mortgages against the vessel. The electronic database of this governmental entity is so accurate and transparent that enables any bank, ship owner or ship management companies to view the status of ownership titles, mortgages and liens cancellation 24 hours online. SER: What Are The Key Things Ship Owners Should Consider For Ship Registration? JQ: Ship owners face the decision of considering several aspects at the moment of acquiring a new vessel from a shipyard or purchasing a second hand vessel from a previous owner. The key things that must be taken into consideration are the following:

Ship Efficiency Review Strategies

Last year, Panama Maritime Authority enacted two (2) resolutions, one in October 2015 and another in November 2015 granting a 50% discount on the annual tax fee, annual consular fee, annual inspection fee and casualty investigation and IMO Contribution Fee for the first 3 years provided the ship owner presents a copy of a corporate social responsibility plan based on reduction of atmosphere and sea pollution starting from January 2016.

•

• Ownership of Vessel. Some ship registries require that the ownership of the vessel must be held by a corporation or legal entity from said flag state. Panama, in the contrary does not impose such requirement and thus allows any individual or company regardless of nationality or place of incorporation as eligible to register any type of vessels.

•

Registration Fees and Taxes. The main two worries of all ship owners in today´s market are minimising costs and raising income on their daily operations. Regarding these concerns, registration and annual tonnage fees are relatively low under Panama Flag compared to other ship registries. Additionally, ship owners will be pleased to learn that profits derived from operation of Panama flagged ships, engaged in international trade, are totally exempted from Panamanian income tax.

Economic Incentives for enrollment. Many ship registries in an effort to attract ship owners are offering incentives and discounts upon registration. Panama Ship Registry does not stay far behind and offers such incentives to vessels and MODUS (Mobile Offshore Drilling Units) as Newbuildings, Fleet and No PSC detention discounts.

SER: Do Green Incentives Offered By Flags Influence Ship Registrations? JQ: Green or Eco-Friendly incentives do influence ship owners to register their fleet under a specific flag. Throughout the years, the world maritime industry has been implementing new measures to prevent the pollution of the seas, environment and to avoid the destruction of the ecosystems, not only through the enactment and enforcement of conventions but through the use of new technology and stricter criteria aboard the vessels.

SER: How Can A Ship Owner Choose A Flag State For Better Ship Operations? JQ: Before choosing a flag, each and every ship owner must take in consideration the reputation of the flag. For example, if the flag state is found in any black list within the different port state controls around the world, ships flying under such flag will be target to more strict inspections at all ports at the moment of arrival. Panama Registry still maintains its status in the Paris MOU white list of lowrisk vessels.∎

Jorge Quijano QUIJANO & ASSOCIATES Attorneys at Law Tel: (507) 269-2641 / 269-2743 E-mail: quijano@quijano.com www.quijano.com

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Ship Efficiency Review Strategies

TRANSPARENCY IS KEY: CHARTERERS RESPOND TO CARBON SIGNALS Charterers are using their influential industry position to drive active climate change mitigation by rewarding those ship owners that prioritise efficiency. To date, the 35 charterers that use Rightship’s Greenhouse Gas Emissions (GHG) Rating to factor the most efficient ships into their supply chain selection have collectively undertaken over 26,000 vessel movements, shipping more than two billion dead weight tonnes (DWT) actually. The participating companies, that represent a staggering 20 percent of global cargo, are helping transition the market toward a higher valuation of efficiency and lower-carbon intensity. Developed in 2010 in response to customer demand, the RightShip GHG Emissions Rating tool compares the relative efficiency of ships of a similar size and type, and then displays the outcome on a scale of A-G. Therfore, this system can facilitate companies in easily identifying the most efficient ships and thereby avoiding chartering inefficient ones. The tool is hosted on shippingefficiency.org through colloboration with Carbon War Room and is free-to-access. Not only does this scheme help charterers to calculate and benchmark the ships’ carbon footprint, it also supports corporate social responsibility and enables charterers to save money through the lowering of fuel bills. This is a particularly vital tool for charterers to deploy in the current market as the oversupply of ships in the market continues. According to Warwick Norman, CEO of RightShip, the selection of only the highest efficiency rated ships helps to act as a form of natural selection. Rashpal Bhatti, Vice President, Marketing Freight, BHP Billiton commented: “Use of the GHG Rating to select the more environmentally sustainable vessels minimises the environmental impacts of our operations, at the same time delivering back to our shareholders through use of the more fuelefficient, cost-effective, vessels.” Don Briggs, Vice President Global Supply Chain, Incitec Pivot Limited (IPL) stated: “Incitec Pivot charters more than 200 ships annually and by selecting the most efficient ships we are reducing carbon emissions while rewarding ship owners that invest in more efficient ships. From a business perspective ships that are more efficient will use less fuel so there is a

cost benefit as well, which shows how environmental improvements can be linked to improved financial performance.” Warwick Norman added: “Reducing emissions will involve a coordinated approach across all sectors of the maritime sector. We have ports that provide discounted harbour dues, maritime financiers that factor the GHG Emissions Rating into their risk profile and ship owners and managers that invest in technology to improve the efficiency of their ship.” It is the transparency of data through tools such as this one that puts knowledge and power in the hands of the consumers when it comes to acting upon greater ship efficiency and reduced emissions from global shipping activities.∎

Following the early adoption of the GHG Emissions Rating by Cargill, Huntsman and UNIPEC UK, these further companies have announced their use of the Rating: • • • • • • • •

aere Maritime B Dubai Supply Authority Hudson Shipping Lines Nidera Olin - Blue Cube Refidomsa South32 Z Energy

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• • • • • • •

HP Billiton B Greenergy Incitec Pivot Limited Noble Chartering Rio Tinto Targa Resources Saudi Aramco Products Trading Company

• • • • • • • •

anpotex C HESS Ixom Olam PTTEP Scorpio Group The Mosaic Company Par Pacific – HIE

Ship Efficiency Review Strategies

LANDMARK SUSTAINABLE SHIPPING LOAN CONFIRMED Anthony Verder Group’s EUR 66 million Euro Private Placement has been confirmed as the first sustainable shipping loan to be fully certified according to Bureau Veritas’ Clean Shipping Index Guidelines. The transaction, considered to be a landmark milestone in the international shipping industry, was arranged to finance the building of the 18,000m3 Ice Class 1A Super liquefied natural gas (LNG) carrier, Coral EnergICE, which uses the boil off from its cargo to fuel the propulsion of the ship. The vessel will be on a long term time charter contract with Gasum (Finland) to serve its 100% subsidiary Skangas. The financing has been structured as a 20 year European Private Placement and placed with Delta Lloyd Asset Management. The Sustainable Shipping Framework, initially developed by ABN AMRO and Anthony Verder, is based on two pillars the first of which gave this particular vessel a positive evaluation of the environmental performance of the ship design, and the second awarding an above par score based on a sustainability assessment. The ship was then fully certified for financing against the

attributes of Anthony Verder’s dedication to sustainable shipping, the eco-friendly design of the LNG carrier, the sourcing and use of the product to reduce emissions in Finland, and ABN AMRO’s expertise in sustainable financing. In addition to investing in the use of LNG-propulsion, Anthony Verder has also historically invested heavily in various clean shipping technology including, using green options for antifouling, lubricants and ballast water treatment to reduce the impact of its shipping activities on marine life. ∎

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Ship Efficiency Review Electronics & Software

MADE IN CHINA.

THE PURSUIT FOR THE SMART SHIP This is swiftly changing however. A concept that is rapidly becoming infamous within the maritime industry is the ‘smart ship’. A product of enhanced satellite connectivity, big data and advanced analytical powers, the smart ship is being billed as the next ‘revolution’ for all sectors of the maritime industry. Clarkson Research president Martin Stopford has repeatedly called for the industry in recent times to adopt “smart shipping”. The maritime economics heavyweight believes that existing technology has been squeezed to the point of diminishing returns. Stopford’s recommended solution is what he refers to as smart shipping, which represents much greater integration of ship operations with the internet and big data. This, according to Stopford, would transform shipping to be a management business, compared to today where he says the industry is a “cost minimisation, gambling business”. When it comes to the pursuit of the smart ship, like Stopford’s viewpoints, China is fully switched on and as a result is nautical miles ahead of other nations. It was during the Smart Ship Development Forum & Smart Ship Demo at Marintec 2015, sponsored by state backed Chinese conglomerate China State Shipbuilding Corporation (CSSC), that details regarding the constructions of China’s first smart ship were revealed. The 38,800 DWT smart ship project is being planned and led by Shanghai Ship Design and Research Institute with participation from CSSC Systems Engineering Research Institute, CSSC Huangpu-Wenchong Shipbuilding Co., Ltd, CSSC Power Research Institute and Hudong Heavy Machinery Co., Ltd. Developed with big data in mind, CSSC’s smart ship has will feature several key functions including; real-time transmission and collection

“Clarkson Research president Martin Stopford has repeatedly called for the industry to adopt smart shipping”. www.fathommaritimeintelligence.com

for ship performance and energy efficiency monitoring, engine room equipment and system operation status monitoring, sea route planning based on hydrological and meteorological information, digital modelling and remote control and environmental impact analysis. It also features intelligent management control systems, independent analysis, assessment and predictions to assist with communication between ship and shore and to maximise navigational safety.

“China is fully switched on to smart shipping and as a result is nautical miles ahead of other nations.” “The smart concept runs throughout the whole ship. From this perspective, the 38,800 DWT bulk carrier will become not only China’s first smart ship, but also the first globally,” CSSC said in a recent release. Construction of the smartship is due to commence in September 2016, with delivery scheduled for 2017.∎

Ship Efficiency Review Electronics & Software

DATA MONITORING TOOL FOR ECA COMPLIANCE LAUNCHED Spot sampling is becoming increasingly common in the Baltic and North Sea ECAs, also as of January 1, 2016 the European Union requires Member States to carry out sulphur tests on the marine fuel being used onboard many of the ships calling at their ports. In light of this, Parker Kittiwake Procal, part of the Parker Hannifin Corporation launched a new advanced data gathering system that can assist ship operators with Emission Control Area (ECA) compliance.

with the security requirements of MARPOL Annex VI thanks to three levels of password protection. Chris Daw, business development manager, Parker Kittiwake Procal commented: “As environmental

down hard. With the potential for fines and delays, accurately demonstrating compliance is becoming a bottom line issue.” ∎

“As environmental legislation continues to evolve in parallel with ecological awareness, the policing of compliance is becoming gradually more uniform and effective." The Procal 1200M data gathering system and control unit collects and processes data from Parker Kittiwake Procal’s marine emissions analysers and can send and receive data from devices that monitor exhaust gas scrubbing systems. The system allows ship operators to monitor and report a range of emissions including Sulphur Oxides (SOx), Carbon Dioxide (CO2), Nitrogen Oxides (NOx) and other parameters such as pH, seawater temperature, turbidity, polyaromatic hydrocarbon equivalents, and wash water flow rate. The analysers communicate via a serial data link to the Procal 1200M data gathering system, which can be located up to 1200m from the exhaust mounted CEMS, and data from up to sixteen channels per exhaust gas scrubbing systems can be presented on an individual front panel. The unit is also compliant

legislation continues to evolve in parallel with ecological awareness, the policing of compliance is becoming gradually more uniform and effective. Indeed, many Port State Controls, especially those in Europe and the US, are cracking

BLUETRACKER – THE OPEN WINDOW TO YOUR FLEET

The vessel performance software for monitoring, reporting and analyzing your vessels’ energy efficiency www.fathommaritimeintelligence.com www.bluetracker.com

Innovation for shipping

Ship Efficiency Review Electronics & Software

FIRST INDEPENDENTLY ACCREDITED

MASS FLOW METERS INTRODUCED IN HONG KONG

Exxonmobil has introduced the first independently accredited mass flow metering system (MFMS) in Hong Kong in order to save time, money, and increase efficiency during bunkering. The MFMS reduces bunkering time by approximately three hours and saves an estimated US $5,000 per refuelling, while also providing increased transparency through continuous data logging throughout the process. The technology directly measures fuel mass instead of volume which provides accurate measurement readings. The seals used are also validated by independent parties to prevent any misuse of the system. Compared to typical tank dipping, increased efficiency is gained by measuring fuel mass, while uncertainties related to variables including density and temperature are reduced. The seals used are also validated by independent parties to prevent any misuse of the system, ExxonMobil have stated. The introduction of the MFMS to Hong Kong comes following successful operation in Singapore. It has been accredited by Lloyd’s Register in partnership with A*STAR’s

National Metrology Centre the national measurement institute of Singapore, and Metcore International Pte Ltd, a consultancy with expertise in MFMS for bunkering. Lloyd’s Register’s Douglas Raitt, Regional Consultancy Manager, commented: “The use of mass flow metering systems when bunkering fuel is a significant improvement, ensuring compliance. Buyers now have peace of mind that they are receiving the correct quantity of fuel for which they are paying.”∎

MARITIME SOFTWARE COMPANY ACQUIRED

BY CARGO HANDLING GIANT Cargo handling giant Cargotec Corporation has acquired all of the shares in German Software Company INTERSCHALT Maritime Systems AG.

INTERSCHALT, whose tagline is “Innovation For Shipping” has been developing and delivering innovative software solutions to the shipping industry for over 25 years. INTERSCHALT’s Bluetracker solutions are already used by over 600 ships and it was in September 2015 that the company launched a new manual reporting software with Integrated Analysis Tool, Bluetracker [Express]. The packages that INTERSCHALT offer cover all the current requirements related to the efficiency management of a ship or entire fleet. Automatic data collection on board has been expanded to include Bluetracker[express], the integrated manual reporting solution. This coupled with the software’s manual and automatic data collection power made this company very attractive to Cargotec. During the launch of the enhanced software solution offerings in September 2015, Robert Gärtner, INTERSCHALT CEO explained: “Bluetracker combines options for checking consumption and increasing efficiency. The ship owner and manager can access all ship and consumption data via a web browser worldwide and at any www.fathommaritimeintelligence.com

time, meaning that sustainable strategies for optimising performance can be developed. Bluetracker[express] is embedded in this structure and expands previous options to include manual reporting on board. Only a standardised and error-free data collection enables a reliable evaluation and analysis within fleets, ship classes, or routes.” Cargotec say that this acquisition will complement their strategic aim of being a leader in intelligent cargo handling. The company will now benefit from increased knowledge and competence in technologically advanced software and service solutions for cargo and fleet management, as well as maintenance, repair and retrofit services for bridge navigation and communication. They will now integrate software solutions into the Kalmar business area and services into the MacGregor business area. The closing of the transaction is expected to take place in the first quarter of 2016 and is subject to the approval of competition authorities after which INTERSCHALT will be consolidated into Cargotec’s figures.∎

Ship Efficiency Review Ship Design

THE ART OF OPTIMISATION BY CHRIS ROSS, CHIEF ENGINEER, QINETIQ

A combination of next generation software and traditional techniques will drive the optimisation of future vessels. Cost control of shipping operations can be largely categorised as short term or long term. Where specific actions such as altering service speed or retrofitting efficiency improvement devices to reduce fuel burn might be thought of as short term and ones such as the planning and delivery of new generations of vessels fully designed and optimised for compliance with Energy Efficiency Design Index (EEDI) and Ballast Water Management Regulations as the long term options. Evidently, there is also a middle term option where the current lower fuel costs and improvements in voyage and vessel operation optimisation software, combined with retrofitting of efficiency improvement devices to ships, will allow owners to maintain competitiveness. The need for convincing longer term alternatives for new vessel options is obvious. Considering that repaying a USD $1 million investment on the capital cost side may give a repayment timescale of tens of years for many ships (if efficiency savings are restricted to say sub 5% overall). This shows that the next generation of ships will not only need to take advantage of individual efficiency improvements but also to combine these with fundamental improvements in the basic hull design, reversing the recent short term drop off in overall vessel efficiency since the 1990s. Designs for the future need to be able to deal proactively with unknown long term fluctuations in freight rates and fuel costs, which when looked at in a relatively short term reactive perspective can significantly affect vessel design parameters adversely as seen in the past two decades. This will require overall vessel efficiency increases to be significantly greater than 10% to get back to previous levels and more than that to comply with the ever increasing regulatory pressures through the next decades. All this represents a complex multi-faceted problem to deal with, requiring a range of inputs to be collated, analysed and synthesised into effective solutions. These inputs will include trade and service specific economic factors, vessel design requirements and constraints, capital cost estimates and sensitivity analysis factors and operating cost factors. How is it possible to relate these inputs to a suitable vessel design? Through Paramarine, parametric variants of a proposed vessel design can be compared to drive towards an optimum balance of the owner’s desired factors. Paramarine can accept inputs from external spreadsheet tools and directly into the parametric set up for the models, as well as using its own macro capabilities, and can also be linked to genetic algorithm solvers to provide optimisation functions across www.fathommaritimeintelligence.com

thousands of options. This approach can mean that wide ranging studies can be undertaken efficiently, without the necessity of selecting which design lanes to explore, potentially missing out on outlying design options which may show equal or greater promise to those in the more obvious areas studied. Paramarine can also, through its Optihull functionality, carry out variations of hullform parameters from a baseline across the following functions, resistance, powering, seakeeping, manouevring and stability by use of the typical naval architectural hullform distortion methods. This can be

further baselined against model test and full-scale trials data. Taken together, these approaches allow for cost effective studies of designs to meet complex families of generic or specific technical and commercial targets which are capable of being adapted to take account of particular vessel owners’ requirements or databases to make them even more powerful. Hull form optimisation derived from Optihull functionality can be checked using detailed computational fluid dynamics at model or full-scale using QinetiQ’s extensive CFD capability. In QinetiQ’s complimentary model testing facilities the performance characteristics of a vessel or series of vessels for resistance, propulsion, cavitation and propeller / rudder interaction, seakeeping and manoeuvring means that computationally derived performance levels can be verified prior to any investment decisions for new ships being taken. The combination of these new generation tools with those of traditional naval architecture is what is needed to provide the next generation of designs for ships with an optimum through life balance of capital and operational costs while maintaining regulatory compliance in an increasingly complex market.∎

Ship Efficiency Review Ship Design

CLASS SOCIETY STRENGTHENS

GREEN SHIP DESIGN Japanese classification society ClassNK has occupied many headlines in 2015 thanks to their proactive approach to supporting newbuilding activity for the acheivement of safe, green and compliant ships upon delivery into the market.

They also released the PrimeShip-GREEN/MinPower software in April 2014 to help shipyards comply with EEDI requirements by calculating the added resistance in irregular waves, allowing for minimum propulsion power requirements to be determined to an even greater accuracy.∎

ClassNK’s predominant efforts towards prospering the construction of greener ships manifests through the provision of innovative software solutions that are provided free of charge to shipyards. To date 125 shipyards have been in receipt of ClassNK’s software. In May 2015, the Classification Society released the PrimeShip-GREEN/ProSTA software. This software helps shipyards analyse and calculate a ship’s speed trial results for Energy Efficiency Design Index (EEDI) calculation in compliance with the new harmonied international standard ISO 15016:2015. This also reduces the workload required for EEDI calculation.

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Ship Efficiency Review Ship Design

WORLD’S FIRST LNG-FUELLED VLCC Moves A Step Closer to Becoming Reality It was in late 2015 that a defining milestone was passed in the progression of Liquefied Natural Gas (LNG)-powered ships when DNV GL presented Dalian Shipbuilding Industry Company (DSIC) with an Approval in Principle certificate for the world’s first LNG-Powered Very Large Crude Carrier (VLCC). The development of the LNG-fuelled VLCC concept Triality by DNV GL in 2010 was a great step forward for the industry towards the increased use of LNG as a fuel option. DSIC’s design and the Approval in Principle now represents the next step, a version which can now be put into the market. The certificate proves that DSIC’S new innovative VLCC design complies with the Gas Fuelled notation as given by DNV GL in the rules for the classification of ships and the recently adopted International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF) Code. The VLCC design uses type C fuel tanks located on the open deck, minimising the impact on the overall layout and thereby reducing disturbance on cargo carrying capacity. Furthermore, the LNG fuel tanks allow the ship to sail a round trip from the Middle East to the United States without the need to refuel. Ship owners and operators are increasingly looking into the use of alternative fuels to ensure compliance for their fleet, now and in the future thanks to the challenge of reducing remissions, both by current and incoming regulations. LNG is increasingly in the spotlight due to the fact that its use

results in the complete elimination of particulates and Sulphur Oxides (SOx) and reduced Carbon Dioxide (CO2) emissions. For DSIC, the dual fuel design will give greater flexibility in bunkering options and guarantee that the vessel meets International maritime Organization (IMO) NOx Tier III requirements in gas fuel mode. In gas fuel mode the design reportedly achieves a 30 per cent reduction factor to comply with Phase 3 of IMO Energy Efficiency Design Index (EEDI) regulations. DSIC is operated under the China Shipbuilding Industry Company Limited. Acclaimed as the flagship of China’s shipbuilding industry, DSIC is the first domestic shipbuilding enterprise to have joined the rank of the world’s top 5 shipbuilders. ∎

SPANISH FIRM UNVEILS NEW

LNG BUNKERING VESSEL DESIGN Spanish engineering and technology firm Sener recently disclosed its own Liquefied Natural Gas (LNG) bunkering vessel design, developed to maximise operational efficiency. The Sener design is a ship-to-ship (STS) LNG bunkering vessel that includes International Maritime Organization (IMO) Type C LNG cargo tanks at 4.5 bar and -163ºC, which not only reduces the effect of the wave inside the tank, allowing for greater flexibility of operation through allowing partial loads, but also reduces the Boil Off Gas (BOG) generated in the tanks. Furthermore, the design includes generation articulated arms designed for the STS bunkering process. The vessel has been designed for the purpose of navigation, manoeuvrability and operation in challenging meteorological conditions. It has also been designed to adhere to specific regulations, www.fathommaritimeintelligence.com

such as SIGTTO (Society of International Gas Tanker and Terminal Operators), OCIMF (Oil Companies International Marine Forum) and IGC Code (International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk). The new design comes following the regulation of Sulphur Oxides (SOx) and Nitrogen Oxides (NOx) in Emission Control Areas (ECAs) from January 1, 2015 and January 1, 2016, respectively. Furthermore, since 2006 the shipbuilding industry in northern Europe has been subjected to restriction and guidelines specific to areas contributing to emissions, spurning the development of LNG-powered ships as an alternative to those burning Heavy Fuel Oil (HFO). ∎

Posidonia 6 -10 June 2016

Metropolitan Expo, Athens Greece

enter

the multi-billion market The International Shipping Exhibition

posidonia@posidonia-events.com

www.posidonia-events.com

Ship Efficiency Review Power & Propulsion

CHANGING MARITIME MARKETS

KEY TO LNG’S FUTURE Christer Sjödoff, GAC’s Group Vice President, Commercial examines the role of the ship agent in the LNG supply chain amid the shifting dynamics of the global gas market. LNG is playing an increasingly influential role in global energy markets and as a shipped and traded commodity. It has also emerged as a viable alternative fuel source for international shipping, with significant investment in LNG bunkering infrastructure and technological advances in LNGpowered vessels. Changing markets are placing new demands on the providers of support services to the LNG shipping sectors and highlighting the crucial role played by the ship agent in meeting carriers’ needs. Global energy market trends are set to transform the maritime industry, with major investments in new LNG terminals and huge projected growth in LNG exports in coming years. Long-term contracts continue to drive the LNG market, accounting for 69% of global LNG trade in 2014. Advances in oil and natural gas production technology – notably a new combination of horizontal drilling and hydraulic fracturing has enabled increased production of abundant shale gas resources in the United States. When the production and consumption of LNG on a small scale was limited to a few countries and a relatively static pattern of trading and shipping activity, the expertise and infrastructure to support LNG carriers was well-established within the relevant ports, but not elsewhere. Now, with the rapid growth of LNG shipping, specialist expertise is in more demand than ever across a far wider network of ports and trade routes. Shippers need assistance with a range of other challenging requirements specific to the maritime LNG industry such as voyage management, cargo surveying and co-ordination and immediate response in case of an emergency at sea. It is imperative to work with providers of support services that have detailed local knowledge and the ability to manage budgets by monitoring timerelated port costs. GAC’s gas carrier specialists work hard to support all LNG vessels with these requirements, as well working with all relevant parties to ensure vessels are cleared and ready for port entry. We also provide ship owners with operational costings for swaps, short notice diversions and arbitrage opportunities in order to help them to take advantage of the opportunities available in this fast-paced global market. The LNG trade was historically dominated by large energy companies, but the recent upsurge in shale gas production has opened up the market to smaller companies. While these companies have identified the commercial www.fathommaritimeintelligence.com

opportunity to trade gas cargoes, they may not have the necessary LNG experience or support infrastructure. It is important to recognise that LNG requires specialist support and that companies shipping gas cargoes require the right services to meet the needs of their vessels. GAC has a distinguished track record in this field, having handled over 10,000 LNG port calls for gas carriers in the past decade and with specialist LNG services that support compliance with regulatory, technical and operational requirements. Moreover, we ensure that the owners and operators of LNG vessels receive daily intelligence on the performance of the global gas markets to help them to fully capitalise on the commercial benefits available.

GAC goes one step further by providing a package of innovative support services. One such service is our HullWiper ROV system which can give vessels the benefits of a clean hull in a fast, cost-effective and environmentally friendly way. Others include weather routing and maritime training solutions for the LNG market, bunker fuel supplies, ship-to-ship transfer services, and door-to-deck sourcing and delivery of spares. Ship owners should look for agents to support their vessels with a global port network and in-house LNG expertise, and who can provide a full service solution for owners and operators of gas carriers. A diverse range of services is key, as is the agent’s ability to meet the full spectrum of requirements for LNG operations, whether sharing intelligence, undertaking compatibility studies or managing ship-to-ship transfers. Their work may go unnoticed, but the importance of their role in the LNG sector should not be underestimated. In such a dynamic market, with so many new entrants, new ports and new trade routes, the ship agent plays an essential role in the LNG supply chain. Not only will a good ship agent ensure that port calls by gas carriers are conducted safely and efficiently, they can also help to build confidence in LNG shipping as the sector continues to grow and mature. ∎

Ship Efficiency Review Power & Propulsion

FIRST COMMERCIAL ORDER FOR FLETTNER ROTOR TECH

The MS Estraden

Flettnor rotor technology innovators, Norsepower has installed a second rotor sail on Bore’s 9,700 DWT RoRo carrier MS Estraden following the trialling of a single rotor sail on that same vessel in early 2015. This order is a significant milestone for wind assisted propulsion as it represents the first commercial order for a flettner rotor in the shipping industry. The Norsepower Rotor Sail Solution is a modernised version of the Flettner rotor - a spinning cylinder that uses the Magnus effect to harness wind power to propel a ship. When the wind conditions are favourable, Norsepower Rotor Sails allow the main engines to be throttled back, saving fuel and reducing emissions while providing the power needed to maintain speed and voyage time. Rotor sails can be used with new vessels or can be retrofitted on existing ships without off-hire costs. Although the weather conditions were largely calm over the three-month trial of the initial rotor sail installed on the MS Estraden, data analysis from vessel performance monitoring and verification software, ClassNK-NAPA GREEN, demonstrated that the rotor sail delivered clear and significant savings of 2.5%. Data analysis and verification by NAPA recorded a 6.1% reduction in fuel consumption. This equates to a reduction of 1,200 tonnes of CO2 emissions annually. It was this independently assessed evidence that Bore

ordered the installation of a second rotor sail. In addition to the expanded market potential, this evidence has also helped Norsepower increase its enterprise value and secure the future of the business. A syndicate led by Power Fund III, a clean tech venture fund managed by VNT Management, has invested €3 million to support Norsepower’s growth and market expansion. This reflects the immense importance of the role that stringent measurement, analytics and third-party verification plays in powering the uptake of double-digit fuel saving technologies in the industry. In this case it has helped Norsepower evolve its rotor sail from an innovative system for trial, to a proven and marketable fuel efficiency technology with a clear business case. In September 2015, Norsepower’s Rotor sail was the much celebrated recipient of the Ship Efficiency Awards’ 2015 ‘Energy Efficiency Solution Award’, a highly-reputated clean technology awards scheme hosted by Fathom Maritime Intelligence. ∎

TYPE APPROVAL GRANTED FOR DUAL-FUEL

TWO STROKE ENGINE

A dual-fuel two-stroke engine designed and developed by Winterthur Gas and Diesel (WinGD) equipped with a low-pressure gas admission system, has successfully completed itsType Approval Test (TAT). With theTAT successfully completed, the WinGD low-pressure dual-fuel technology is now fully ready for commercial use in marine propulsion applications. The TAT was carried out on a 5 cylinder 500mm bore Wärtsilä engine (the RT-flex50DF) and features WinGD’s dual-fuel technology, which is referred to as X-DF. The dual-fuel engine range is available in 5-cylinder up to 8-cylinder configuration, covering a power range from 4,775 to 11,520 kW at 99 to 124 rpm and allows merchant vessels to safely and reliably run on Liquefied Natural Gas (LNG). The Wärtsilä-branded engine reduces Sulphur Oxides (SOx) and particulate matter emission levels very close to 0%. Nitrogen Oxides (NOx) emissions are reduced to at least 85% below the levels demanded by the International Maritime Organization (IMO) Tier III requirements, and Carbon Dioxide (CO2) emissions are 25% lower compared to engines running on diesel fuel. The two-stroke engine will be delivered to the shipyard

this month in preparation for installation on a 15,000 DWT tanker ordered by Terntank Rederi A/S, and is the first of four. This tanker, the first of four tankers on order for Terntank, will operate largely in northern European sulphur Emission Control Areas (ECAs). As well as being the first engine with WinGD’s two-stroke low-pressure dual-fuel X-DF technology for a commercial application, this engine is also a central element in the ‘Into the Future – Baltic SO2ution’ project, an EU-supported Joint Industry Project (JIP) that aims to improve the environmental compatibility of energy transportation in the Baltic Sea. This project centres on cooperation between shipowner Terntank, Wärtsilä, Winterthur Gas & Diesel, fuel and bioproducts supplier North European Oil Trade (NEOT) and energy and environmental consultant Wega Enviro. ∎

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Ship Efficiency Review Power & Propulsion

FUEL SWITCHING IN ECAS: THE SHIP OPERATOR’S

PERSPECTIVE BY HAPAG LLOYD

In more and more regions of the world, ships have to change to low-sulphur fuel before being allowed to sail into Emission Control Areas. But how does one make this switch with a gigantic ship? The procedure is more complicated than you might expect.

the ship could be prohibited from entering ports. In the United States, a ship’s officers can even be arrested if violations can be proven. As a result, preparations for the fuel switch are very thorough. The process starts around 24 hours before the ship reaches the ECA border with a Viscosities, temperatures, consumption – these are terms that fill any chief message from the nautical officers. engineer with joy. And it’s just as well for these figures are crucial when it “The nautical officers tell us when comes to the so-called fuel changeover that is required when ships enter or leave Emission Control Areas (ECA), for example, in North America and North we will be reaching the border. And from that point in time we calculate Europe. “The regulations in force there since January 1, 2015 state that the backwards,” explains Chief Bartlau. maximum sulphur content in fuel is 0.1 percent. Beyond the ECA, the limit Together with the third engineer, is 3.5 percent,” says Chief Engineer Karsten Bartlau in the ship’s office of the he immediately starts making Kuala Lumpur Express. More and more of the world’s maritime areas are introducing stringent caps preparations. To begin with, they on the sulphur content in fuels. This is why the container ships of Hapag-Lloyd slowly reduce the temperature in the Heavy Fuel Oil (HFO) service are increasingly using low sulphur Marine Diesel Oil (MDO). This is not only tank to 120 degrees Celsius and considerably more expensive but also involves a complex procedure: before raise the temperature in the MDO the vessel enters an ECA, the fuel system has to be switched completely. service tank to 45 degrees Celsius. But what precisely does that entail? An on-board technology report. This ensures that the temperature difference between the two fuels is only around 75 degrees. This provides a significant advantage. “The difference in temperature between fuel that has just been used and new fuel is one of the most important determinants,” says Bartlau. The change of temperature gradient in the main engine should never be more than two degrees Celsius per minute at the most, as sudden changes can lead to leakage and in the worst case to a piston seizing. For Chief Bartlau the preparations The chief also uses a fuel for the switch begin 24 hours changeover calculator to gauge the before the ECA border exact duration for the conversion – the software was specifically Four times per tour is how often the Kuala Lumpur Express needs to customised to each individual ship switch fuels. The 8,750-TEU vessel operates on the AX1 service between in the fleet. In the example shown, Northern Europe and the US East Coast – and thus between the ECAs in the switch-over period for the Kuala North America and those in the North and the Baltic Sea. When entering Lumpur Express lasted exactly three the English Channel, for example, the regulations state that once ships pass hours and 41 minutes. As this is a “5 West,” the longitude of five degrees west of Greenwich, only fuel with relatively new vessel, the changeover a sulphur content of less than 0.1 percent is allowed to pass through their fuel-injection nozzles. Failing that, there is the risk of a six to seven-digit figure on this ship is very fast. On other ships that are older, the entire penalty on both sides of the Atlantic, delays to the schedule, not to mention Continues Overleaf... www.fathommaritimeintelligence.com

Ship Efficiency Review Power & Propulsion

residual HFO has been burnt,” says Bartlau. Nothing could be worse than a changeover process that was executed in good time after which a port state control officer just h appened to take a test sample Leo Padayao, Third Engineer, is from a pump that was opening the valve not in operation. “The cards would definitely be stacked against us if we were process can take anything up to 72 forced to say: please don’t take a hours. sample from here!” Over the past “We pass this data on the nautical few months, Bartlau has already officers. They need to know that as witnessed one such inspection of 61.1 nautical miles to the west when a sample was taken and of “5 West” – with the addition of analysed. The result of the test a safety zone of 10 to 15 minutes – was negative: the sulphur content we need to be traveling at a speed was within the limit. of 16.6 knots to e nsure that we Wolfram Guntermann, Director definitely use up the sulphurous Environmental Fleet, says: “We fuel within the calculated time.” To support regular and rigorous give the Chief and the third engineer inspections in all ECAs. That enough time to prepare for the is the only way we will r eally changeover, they need to be notified see a positive impact on the five hours before they reach the environment.” Shipping companies zone. who consistently abide by the Around 4:20 hours before laws and regulations fear that reaching the edge of the zone, there is far less willingness to take the engineers begin with the action if there are no inspections. changeover. The supply of hot After all, there is a lot of money steam – the heating for the HFO at stake – low sulphur MDO costs pipes and aggregates – is cut off. almost exactly twice as much as They also open the MDO valve a little and shut the HFO valve by the same margin. This process is repeated several times over the next 40 minutes as the 3:41 hours calculated for the fuel changeover apply to fully opened MDO and fully closed HFO valves. As soon as the valve is open, MDO flows through the supply pump and the automatic filter, the circulation pump and the indicator filter. It mixes with the HFO flowing back that has not been burnt and gradually replaces it. At the same time, the temperature of the fuel drops. “We successively actuate each of the spare supply and circulation pumps as well as all chambers in both filters. Only then can we be sure that all

HFO. That is why Hapag-Lloyd has joined the Trident Alliance. This initiative is a coalition of shipping owners who are working t owards bringing about a robust and transparent enforcement of maritime sulphur regulations. Guntermann says: “At the same time it is also about creating a level playing field and ensuring fair competition.” When entering ECAs, the challenge lies in completing the fuel changeover just a few minutes before crossing the border. If the chief engineer begins the changeover process prematurely, then he is literally burning money. Just one hour too long is tantamount to a four-digit dollar amount. When leaving the zone, the primary goal is to avoid damaging the engine’s components through the changeover from cold MDO to hot HFO. That is why the “two degrees per minute” rule also applies in this case. Chief Bartlau says: “On our first few trips the changeover was quite an exciting process. No one knew how the main engine and the aggregates would respond. But now with our vast know-how, we’ve established a very conscientious routine here on board.” ∎

Wolfram Guntermann, Director Environmental Fleet at Hapag-Lloyd

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Ship Efficiency Review NOX Emissions Supplement

NOx NEWS ROUND-UP PARTNERSHIP ESTABLISHED FOR NOX REDUCING EMULSIFIED FUEL DEVELOPMENT SulNOx Fuel Fusions Plc. (SulNOx), a global producer and supplier of fuel emulsion technology, and Classification Society Lloyd’s Register (LR) have signed an agreement that will see the two companies partner to push the development and application of Nitrogen Oxides (NOx) reducing emulsified fuel for the marine market. The partnership will see LR provide a stringent technical assessment of SulNOx Eco Fuels’ emulsified fuel, verifying its operational suitability for users of hydrocarbon fuels and provide recommendations on the most effective application of the technology to secure optimum fuel and environmental savings. LR will also provide technical support and consultancy services throughout the process of the SulNOx fuel’s

commercial deployment. They will work with SulNOx to secure a 3rd party commercial ship on which sea trials of the fuel emulsion will be undertaken. SulNOxEco Fuels’ emulsion can reportedly cut particulate matter by over 90% and NOx by over 60%, while increasing energy efficiency by up to 8%. ∎

ENGINE MANUFACTURER TACKLES SCR INTEGRATION

FUEL-SAVING EGR ECONOMISER LAUNCHED

The introduction of the Tier 4 engine range by Caterpillar Marine is an important milestone for the company as their customers can now benefit from Nitrogen Oxides (NOx) emission reduction based on Selective Catalytic Reduction (SCR) technology. According to Caterpillar Marine representatives, they specifically chose the best technology to fit the needs of the industry, and they see SCR as the preferred option. Therefore, Caterpillar Marine are now offering Cat C280 medium-speed diesel engines for compliance with US Environmental Protection Agency (EPA) Tier 4 and International Maritime Organization (IMO) Tier III standards. These Tier 4 engines can run at optimal fuel efficiency because the SCR system is in place to reduce the higher NOx output say the company. The C280 engines are available in eight, 12 and 16-cylinder models spanning a power range from 2,300 - 5,060 kW as main engines – conventional and diesel electric – and also as auxiliary generator sets. ∎

Working in collaboration with MAN Diesel & Turbo, Alfa Laval have launched a new pressurised Exhaust Gas Recirculation (EGR) economiser. The EGR-HPE economiser was developed to enable heat that is typically lost during the EGR process to be utilised and turned into a gain. The economiser is integrated with conventional waste heat recovery after the turbocharger and placed in a pressure casing in-line before EGR pre-scrubber spray jets that cool the exhaust gas, allowing it easy access to much higher temperatures than traditional exhaust gas boilers. The economiser also provides a higher power output from the steam turbine, producing high quality steam with a temperature of 400°C, which provides waste heat recovery at a much higher level of efficiency. The EGR economiser enables ships to both comply with Nitrogen Oxides (NOx) regulations in line with International Maritime Organization (IMO) Tier III standards and make use of waste heat for improved fuel efficiency. The system has also been trialled and tested on the Maersk Cardiff, a newbuild container ship owned by A.P. MollerMaersk. ∎

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Ship Efficiency Review NOX Emissions Supplement

NOx NEWS ROUND-UP

TENNECO SCR ATTAINS DNV GL CERTIFICATIONS Classification Society DNV GL has awarded Selective Catalytic Reduction (SCR) system manufacturer Tenneco two Approval in Principle (AIP) certificates for their SCR systems. The AIP certificates cover key components of the system including the dosing and control unit, injectors, load sensors, and the human machine interface, remote monitor, as well as catalyst and reactor hardware configurations for International Maritime Organization (IMO) Tier III applications. Over the past year a series of validation tests have been carried out by the company to assess the system’s

form, fit, function and performance. In partnership with the Texas A&M Maritime Academy, Tenneco conducted saltwater sea trials onboard the TS General Rudder in the Gulf of Mexico and installed an SCR system on a 33-year old 800 horsepower Tier 0 engine providing Nitorgen Oxides (NOx) reduction sufficient for United States Environmental Protection Agency’s (EPA) Tier 4 marine emissions requirements. Furthermore, the SCR has been awarded product design classification from ABS and has been designed to meet requirements from China Classification Society (CCS), Korean Register of Shipping (KR) and ClassNK. ∎

WORLD’S FIRST LOW-PRESSURE EGR INSTALLED

EU STUDY HIGHLIGHTS NOX EMISSIONS REDUCTION FROM SLOW STEAMING

The world’s first low-pressure Exhaust Gas Recirculation (EGR) system, developed under ClassNK’s Joint R&D for Industry Program, has been installed on a low-speed twostroke engine bulk carrier. Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd. (MHI-MME) and Mitsubishi Kakoki Kaisha Ltd. installed the EGR system on a 34,000 DWT bulk carrier owned by Shikishima Kisen K.K. The low pressure EGR system works by supressing the formation of Nitrogen Oxides (NOx) by recirculating part of the exhaust gas back to the engine cylinder. This method provides an alternative to urea dosing which reduces the NOx to nitrogen and water vapour. These types of EGR systems are particularly advantageous as they reduce both initial and running costs compared to a higher pressure EGR that utilises high temperature and high pressure exhaust gas from a turbocharger intake. During sea trials, the system successfully operated on the low-speed marine diesel two-stroke engine. Following the sea trial and performance testing, the system will now undergo verification tests in commercial voyages. ∎

A European Commission (EC) study has established that the practice of slow steaming reduces Nitrogen Oxides (NOx) emissions. During the study period from 2005 to 2012, NOx emissions were said to have increased in correlation with world trade growth, about 15% from 2005 to 2008. However, NOx emissions then fell by a significant 12 percent during the global economic crisis from 2008 to 2009. The EC’s findings also show that the ships continued to travel at these reduced speeds, about 30% of their speed in 2005, until approximately 2012. Thus confirming that the industry has continued to operate the voluntary practice of slow steaming since 2008/2009. The study also quantifies that ship NOx emissions as a share of total European NOx emissions from all sources, including land-based emissions, has risen from 11% in 2005 to 14% in 2012. ∎

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Ship Efficiency Review NOX Emissions Supplement

THE DAWN OF A NEW ERA FOR NOx EMISSION COMPLIANCE Although ship Nitrogen Oxides (NOx) emissions have been regulated since 2000, it is only recently that these diesel engine-related gaseous emissions have really started to make headlines in the industry. As a large scale polluter of NOx, the shipping industry is under great pressure to act upon its impacts. A plethora of studies have evidenced how NOx emissions have an hugely adverse effect on the environment through acidification and the formation of tropospheric ozone, but also on human health due to the generation of smog, which aggravates and in fact causes respiratory problems. Therefore the International Maritime Organization (IMO) recently intensified the control of NOx pollution from the shipping industry by implementing yet another Tier of stringent NOx controls. The tightened NOx emission limits have graced the industry this year, exactly one year after tighter controls for the emission of Sulphur Oxides (SOx) for ships sailing in Emission Control Areas (ECAs) came into force on January 1, 2015. These tightened NOx emission limits, dubbed ‘Tier III’, are most stringent to date, but are only applicable to ships built on or after the date of enforcement, January 1 2016, and to ships destined to sail in designated NOx ECAs.

approach for regulation of pre-2000 engines, provisions for a direct measurement and monitoring method, a certification procedure for existing engines, and test cycles to be applied to Tier II and Tier III engines. These modifications are expected to have significant impacts on the atmospheric environment and particularly human health for those living in port cities and coastal communities.

Options For Compliance In order to comply with Tier III, ship owners must incorporate a NOx What is ‘Tier III’? abatement method onboard their ships, It is MARPOL Annex VI, Regulation 13 that governs ship NOx emissions. This or use Liquefied Natural Gas (LNG) fuel. Regulation sets out three graded tiers for NOx reduction – Tier I, Tier II, and Tier Such abatement technologies currently III. The latest contender to enter the boxing ring is Tier III. This Tier requires ship include Selective Catalytic Reduction owners to lower their newbuild NOx emissions by 80% from Tier I levels and 76% (SCR), Exhaust Gas Recirculation (EGR). from Tier II levels. The favoured option in the industry at A ship’s required tier of compliance largely depends on its construction date, present is the adoption of SCR systems. with the specific limit value determined by the individual ship’s engine rated speed However, as LNG is becoming more (rpm). All ships with a power output of more than 130kW, irrespective of the widespread in the industry it may tonnage of the ship, must comply with Regulation 13. become a favoured Tier III compliance From January 1, 2016, all newbuild ships within these boundaries and that option. operate in the North American ECA and the United States Caribbean ECA, must EGR can achieve Tier III compliance by reduce their NOx emissions to meet Tier III requirements. Smaller ships, such reducing NOx emission by 80% without as those of less than 24 metres in length and less than 750kW propulsion power further technology installations, however where the Administration accepts that a Tier III engine could not be fitted due to the is a less widespread technology option ship’s design or construction, are exempt from the rule. In addition, ships that are compared to SCR. purely recreational and constructed prior to 1 January 2021 of less than 500GT and With options for separate NOx less than 24 metres in length are also exempt. reduction systems (SCR), integrated NOx techniques (EGR) or fully switching What Is The NOx Technical Code? to more naturally low emissions fuels The ‘Technical Code on Control of Emission of Nitrogen Oxides from Marine Diesel (LNG), ship owners must give each Engines’ (NOx Technical code), also specifies the requirements from testing, survey Tier III compliance option serious and certification of marine diesel engines, enabling all applicable marine diesel consideration, particularly with engines to comply with the NOx emissions limits stipulated by Regulation 13. potentially tighter global emissions limits The Code was revised in 2008 and includes a new chapter on the agreed in the pipeline. ∎ www.fathommaritimeintelligence.com

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Ship Efficiency Review NOX Emissions Supplement

EXAMINING THE CATALYSTS FOR SCR TECHNOLOGY UPTAKE The Selective Catalytic Reduction (SCR) of Nitrogen Oxides (NOx) using ammonia as a reducing agent was originally patented by the Engelhard Corporation in 1957. During SCR a catalyst promotes the reaction between NOx and a reducing agent at the relatively low temperatures of an exhaust stream. It is a process that produces harmless nitrogen and water. It was not until the late 1970s, that the first large-scale onshore application of SCR technology took place. However, from initial installations in stationary onshore industries, its application spread to automotives and locomotives and on to the marine sector. The first commercial installation of a SCR system onboard a ship did not take place until 1989 onboard a 37,000 DWT deep-sea bulk carrier, the Pacific Princess, following the pioneering of marine SCR technology by Haldor-Topsøe and MAN B&W. It was in 1997 a marine SCR was installed for the first time on a ferry, the M/S Stena Jutlandica on all main and auxiliary engines. The SCR process, during which a catalyst promotes the reaction between NOx and a reducing agent at the relatively low temperatures of an exhaust stream, has since gained ground to become an established technology in the industry. This is thanks to the catalyst effect that stricter controls over ship NOx emissions by the International Maritime Organization (IMO), regionally, and at the port level are having. When examining the overall uptake of SCR systems in the industry, it is obvious that certain ship types have seen much greater uptake. Over the past few years SCR systems have been predominantly installed on RoPax, Ro-Ro, ferries, and cruise ships. This is a bi-product of these types of vessels spending large amounts, or all of their time in NOx Emission Control Areas (ECAs) and in regional NOx enforcement zones. DNV GL’s recent “Shipping 2020” report forecasted that at least 30– 40 % of newbuildings will be fitted with exhaust gas recirculation (EGR) or SCR systems by 2016 to meet emission requirements. The Classification society agrees that the 80 % reduction requirement in ECAs of Tier 3 regulation is undoubtedly the main motivator.

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Regional regulations also have a large part to play in marine SCR system uptake. Take the Norwegian NOx tax and NOx fund as a leading example of how a regional regulation can influence technology uptake. Introduced in 2007, the

NOx tax aims to reduce emissions by enforcing a tax of ~ US $2.00/ kg of NOx emitted from Norwegian registered ships within 250 nautical miles (nm) from Norway’s coast. This also applies to all ships under foreign flag operating in Norway’s territorial waters (i.e. within 12 nm of the Norwegian base line). The annual income of the NOx Fund is used as financial support to enterprises that have engaged in abatement measures to reduce their NOx emissions. Port incentive schemes are also having an impact on uptake. For example, the Port of Los Angeles awards ships with installed SCR systems eligible for an incentive grant on a per call basis. To date, more than 500 marine SCR systems have been installed and SCR technology has been successfully installed across a wide range of ships types, engine types and operated with different fuel types. This figure will only increase as the industry remains firmly in the spotlight over its emissions and environmental impact.∎

WÄRTSILÄ NOR –

FLEXIBLE INSTALLATION AND EASY MAINTENANCE Wärtsilä NOx Reducer (NOR) is an emission after-treatment system compliant with NOx emission reduction needs, such as IMO Tier III. It can also be optimised for Norwegian NOx Fund operation or other NOx emission limits as per customer requirements. The system offers ship owners an opportunity to optimize operations, while at the same time meeting the need for environmental sustainability, and is the flexible, robust and reliable choice.

Suits All Ship Types

Wärtsilä has delivered SCR systems since 1990, and the extensive experience include several hundred installations. The system is applicable to all ship types, can be used with four-stroke medium-speed engines and can be installed as both a retrofit option and to a new build.

Certified And Proven Technology

NOR is based on the Selective Catalytic Reduction (SCR) technology for NOx reduction. By means of catalyst elements and a reducing agent, NOR can reduce the level of NOx emissions by about 80-90%. NOR uses a 40% aqueous urea solution (32% is also possible) and consumes about 15 litres/MWh, at full engine load, to reduce NOx emissions from Tier II to Tier III level. Ammonia slip is kept below 10 ppm. The SCR technology is intended for four-stroke diesel engines, operating on MGO, MDO and HFO and is able to work within a temperature range of between 300-450°C. As an engine manufacturer Wärtsilä provides pre-certified engine and SCR packages which optimises customers’ costs and simplify ship building projects.

Footprint

NOR is as standard available in several different sizes and shapes to cover, in a flexible way, the four-stroke engine portfolio for both MDF and HFO installations. Typical dimensions for a two catalyst layer reactor (LFO/MDF) are: 5MW engine: 3.2 x 2.1 x 2.0m 10MW engine: 3.5 x 2.8 x 2.8m 20MW engine: 4.1 x 3.9 x 3.7m The system can also be designed to meet specific space requirements. One NOR reactor is installed per engine and exhaust gas pipe. The standard reactor is designed in a flexible way for the initial loading of two or three catalyst layers depending on the ship structure. It can be installed either vertically or horizontally on-board the ship. Different customer-specific solutions are possible, e.g. integrating the SCR reactor with a silencer, a combined SCR and compact silencer system, a heater for outside installation in cold climate, and an additional oxidation catalyst for CO removal. Power requirements are approximately 1 kW per NOR unit.

Optimizing Overall Performance

With the Wärtsilä NOx Reducer, the overall performance of the engine and exhaust gas cleaning system is optimized in terms of emissions reduction, noise abatement, and engine efficiency. Wärtsilä NOR operation mode is automatically controlled and based on the common automation platform with Wärtsilä engines. In case requested, the urea injection can be started and stopped based on the Global Positioning System (GPS) signal from the ship system which identifies when the ship is operating inside the NOx ECAs. The Wärtsilä NOR can be operated together with other exhaust gas treatment units, such as sulphur oxides (SOx) scrubber systems. A bypass is not required (unless required by class society) as the NOR can be run dry.

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Ship Efficiency Review NOX Emissions Supplement

REDUCING NOX IS IMPORTANT

BUT WHY STOP THERE? Fuel emulsification offers a pre-combustion NOx compliance solution that also reduces PM by 90% and improves fuel consumption by up to 8%, writes Luigi Brambilla, CTO, from SulNOx Fuel Fusions Plc. SulNOx offers an alternative high value solution to meeting Tier I and II regulations by reducing NOx by over 60%, while also reducing Particulate Matter (PM) by over 90%. In addition - and crucially, in a market where bunker fuel is the largest single costs to owners and operators – SulNOxEco™ Fuels also improve fuel consumption by up to 8%. When analyising Nitrogen Oxide (NOx) emissions from the international shipping industry, it is important to recall why NOx has become so important, leading the International Maritime Organisation (IMO) to introduce targets to reduce its impact. Air pollution from international shipping accounts for approximately 50,000 premature deaths per year in Europe alone, at an

annual cost to society of more than €58 billion*. Through chemical reactions in the air, NOx is converted into fine particles, sulphate and nitrate aerosols, which penetrate deeply into sensitive parts of the lungs and can cause or worsen respiratory disease, such as emphysema and bronchitis. Removing NOx is important. MARPOL Tier I, II and III NOx standards have therefore rightly been introduced by IMO. Tier I and II standards apply to the existing fleet, and are largely expected to be met by combustion process optimisation. The means to reduce NOx to meet Tier I and II regulations can be achieved onboard some vessels by adjusting fuel injection timing, pressure, rate (rate shaping), or cylinder compression volume adjustments, for example.

Some Post-Combustion Treatments Become Redundant SulNOx emulsions can also support and compliment the choice of technologies used to adhere to Tier III standards. Post-combustion NOx emission control technologies, such as various forms of water induction into the combustion process (with fuel, scavenging air, or in-cylinder), exhaust gas recirculation, or selective catalytic reduction, can be complimented and potentially replaced entirely by SulNOx’s pre-combustion solutions.In other words, there is a way to make the combustion process for hydrocarbon fuels much cleaner still - so that any need for post-combustion treatments might be obviated, or at least supplementary – and to do so in a way that makes commercial sense. SulNOx is pioneering a new implementation of a very old technique - adding an ‘emulsifier’ to the fuel that enables it to be diluted with water. The consequence is that the fuel burns at a lower temperature and with much greater efficiency than it would otherwise, thereby substantially reducing NOx and particulate emissions.

No Instability, No Engine Damage SulNOx has solved the stability problem that has plagued all previous attempts to create practicable emulsions – as the mix of fuel, water and emulsifier is properly termed – by creating an emulsifier that enables the mix of component materials to remain constant with no separation of the water and fuel back into separate components – and in so doing ensuring no damage to the engine. NOx reduction regulations mark an important stride for shipping in reducing its contribution to air pollution. With SulNOx solutions - which are being constantly tested and verified by SulNOx’ partners Cambridge University and Lloyd’s Register to enable ‘real time’ improvements - as an alternative or compliment to meeting Tier I, II and III regulations, significant opex savings can be achieved while also significantly removing black carbon and PM. Reducing NOx is important, but why stop there?∎ *European Union Tier

Date

NOx Limit, g/kWh n < 130

130 ≤ n < 2000

n ≥ 2000

Tier I

2000

17.0

45 · n-0.2

9.8

Tier II

2011

14.4

44 · n-0.23

7.7

Tier III

2016 †

3.4

9 · n-0.2

1.96

† In NOx Emission Control Areas (Tier I and II standars apply outside ECAs) (Source: IMO) www.fathommaritimeintelligence.com

Ship Efficiency Review NOX Emissions Supplement

SHIP OPERATORS EQUIPPED WITH KEY RESOURCES TO FUTURE PROOF VESSELS FOR NOX REDUCTION Fathom Maritime Intelligence has published an independent, technical guide that contains practical tools to support ship owners and operators with decision making around Nitrogen Oxides (NOx) emission reduction and regulatory compliance strategies. The guide offers an in-depth examination of all technology options and alternative fuels for both Tier II and Tier II NOx emission compliance in addition to an extensive, independent review of all Selective Catalytic Reduction (SCR) systems available to the marine market. The development of this guide followed the regulatory constriction of NOx emission levels in NOx Emission Control Areas (ECAs) from January 1, 2016. Its creation was also spurred by an extensive ship owner and operator survey conducted by Fathom Maritime Intelligence, the responses to which highlighted the existence of a perceived “information void” for comprehensive resources available that detail all NOx reduction and abatement options with practical considerations for Tier II and Tier III NOx emission compliance. The Ship Operator’s Guide To NOx Reduction not only sets out the requirements of the complex regulations governing NOx emissions, but also provides a clear road map to selecting the most suitable technologies or fuels to ensure

regulatory compliance by hosting both technical information and practical considerations alongside financial data and market uptake statistics. Furthermore, the Guide hosts the industry’s only independent review of all SCR technologies available to the market. For ship owners, future proofing any newbuild ships that are to set sail within designated NOx ECAs from January 2016 for Tier III compliance is essential and this Guide supports that process. Equally, the future proofing of any vessels for Tier II compliance with existing and upcoming technological solutions for reduction, abatement or alternative fuel use is vital. The range of viable options to meet Tier II requirements has continued to grow since the implementation of reduced NOx emission levels through MARPOL Annex VI, Regulation 13 from January 1, 2011 for ships built on or after that date. The Ship Operator’s Guide to NOx Reduction can be purchased for a special introductory price of GBP £95 until March 1, 2016. ∎

ORDER YOUR COPY NOW - Includes an in-depth examination of all technology options and alternative fuels for both Tier II and Tier II NOx requirements. - Provides an overview of international & Regional NOx regulations. - Hosts an extensive, independent review of all selective catalytic reduction (SCR) systems available to the marine market.

£145

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- Offers practical considerations, cost insight and market uptake analysis.

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www.fathommaritimeintelligence.com marine | energy | environment *Offer expires 01.03.2016

Ship Efficiency Review Event Review

SMART OPERATIONS Maritime satellite communications services provider Inmarsat held the final instalment of the 2015 Smart Operations event series in Copenhagen in late 2015.The event’s conference, chaired by Dr Søren Hansen, Assistant Director of Vessel Performance ABS, beheld much discussion around prominent topics ranging from the impact of big data and its profit generating potential to the future of maritime satellite communications. The reality of setting up ICT infrastructures and using software systems was debated with insight presented from multiple ship operators. The autonomous cargo ship and its future in the industry also graced the agenda. This review presents the core pillars of discussion and debate that took place at the Smart Operations: Copenhagen conference.

The Industry Is On A Long Communications Journey, But It Has Only Just Begun Drew Brandy, Senior Vice President, Market Strategy, Inmarsat Maritime gave delegates insight into Inmarsat’s visions for the industry’s communications journey, reflecting particularly on the fact that demand for greater connectivity is increasing, regardless of some perceptions that communications is a cost. For Brandy, satellite communications are an essential enabler for meeting this growing demand for connectivity at sea and should be seen as a value, not a cost. This statement comes with good reason, according to Brandy, good satellite communications can help save 10% on vessel expenses through reducing fuel costs and emissions; optimising mechanical performance; reducing repair costs; reducing port charges; and improving crew morale. With satcoms representing just 0.3% of a typical vessel’s running costs, against 46% for fuel, Brandy clarified why increasing numbers of shipping operators are investing in broadband satellite services to have better control of vessel efficiency and drive down costs, especially when there is 10% savings on vessel expenses on offer. To support the industry in enabling such savings, Inmarsat last year rolled out their next generation high-speed broadband network, Global Xpress, and will soon announce the availability Fleet Xpress service, that will support the www.fathommaritimeintelligence.com

maritime industry’s communications requirements now and into the future with seamless, high-speed global connectivity. One thing is certain, demand for connectivity is driving technological innovation in the industry but innovation is also rife in the realms of satellite communications equipment development. Manufacturer of maritime satellite communications equipment, Cobham SATCOM’s Director of Maritime Broadband, Jens Ewerling described to Smart operations delegates how satellite communications technology is at the forefront of innovation and developments in order to cater for the growing global maritime market.

Ship Efficiency Review Event Review Big Data Is Not A Trend, It Is Business

For Inmarsat, big data is not just a fad. Drew Brandy described how this trend is permeating through all aspects of business and the maritime industry is no different. According to their recent industry survey, the internet is not saturating the shipping industry as much as it is in other aspects of society. When drawing comparison between the penetration of internet onboard vessels to the penetration of land-based internet, shipping would be ranked just above Africa, and would be second to last globally. However, as big data becomes part of the industry’s day-to-day business, the saturation of internet access across the global fleet will grow exponentially.

The Crew Must Be Connected In A Future-Proofed Ship

According to an industry survey that Inmarsat’s recently conducted, 70% of crew surveyed considered communications to be an influencer in vessel selection. This is staggering static that shipping companies should take note of as it proves that connectivity will impact the hiring of crew going forward. Brandy also described how this same survey had revealed the current status quo of crew connectivity access on board, stating that only 36% of crew surveyed had internet access which means 74% of crew surveyed did not have access to the internet on board and even more shocking was the statistic that merely 18% of crew surveyed had access to ‘free’ internet.

Communications Officer, Swedish Maritime Administration described the benefits that data application is bringing for sea traffic management, a real example of data application through route optimisation, justin-time port arrivals and shorter turnaround times. Again, all areas that can increase profit margins thanks to the application of big data.

Data Application Will Change The Industry As We Know It

For Jan Erik Hårvei, CEO of leading Norwegian software company Tero Marine, the industry’s future looks extremely exciting, but he warned delegates that things are going to change. He cautioned that those who don’t change when the environment changes will perish and disappear. It’s a matter of simple evolution. In line with this statement, Hårvei described how cloud computing, Data Can Translate To big data and the industry becoming connected is driving stakeholders Direct Profit in the industry to find their roles, Captain Jan Wilhelmsson, Director, convinced that this process will Commercial Shipping, Eniram change the way that we live and exist implored delegates to think about and live forever. how data can translate into direct When it comes to the role of the profit. For Wilhelmsson there are software provider in this evolutionary two main areas through which process, Hårvei sees them as data can generate direct profit; enablers. He reflected upon the data can produce visibility that can fact that the flow of information reduce waste and data can improve in the future will be immense and optimisation leading to increased mind boggling. However, software profit margins. providers can enable the processing Despite the potential profits and analysis of data and promote on offer, Wilhelmsson described transparency. meetings that he had undertaken Steen Sander Jacobsen, Head of with various anonymised carriers Cost Leadership, Maersk Tankers and their perception of what new gave insight into the mind of ship technology can do for them. One owners and operators and their perception was that “our business perspective on data application. His is too complex to automate. There key message to delegates was that are too many factors, so it’s not you cannot manage what you don’t worth it”. Also, the development measure. of in-house software ranked highly Maersk’s practice, according to in the meetings that Wilhelmsson described, and more shockingly some Jacobsen is “connect – monitor – analyse – predict – optimise” carriers stated that “We don’t care He flagged a few important about 3% in fuel saving”. points to delegates from Maersk’s He also reported to delegates data application journey, including; that organisation silos lacking links it is important to celebrate the between spending budgets and benefits are a main barrier that hinders outliers and poor data as they offer successful implementation of modern an opportunity for improvement; data is an extra sense rather than a data driven systems and processes. replacement of the human brain; Ulf Siwe, MONALISA 2.0 www.fathommaritimeintelligence.com

Ship Efficiency Review Event Review

operators should start by showing the potential, implement and then prove it. This last point is the most powerful, said Jacobsen.

contrasting points of deliberation. This event was no different: when Rolls Royce’s VP of Innovation, Oskar Levander took to the podium, debate was stirred and the room divided. Levander shared not only The Industry Is In Rolls Royce’s visions for the future A Transformative and their progressions in developing ICT Arena automated, remote technologies The role of ICT in the shipping and services but also reinforced industry is driving great the company’s claims that the transformation according to Ericsson’s autonomous ship will become a ICT Douglas Watson, Director, reality. Shipping. Ericsson have pioneered Levander communicated to solutions for utilising big data in other delegates that the industry is industries, especially their connected witnessing the dawn of the Ship vehicle cloud. Watson went on to Intelligence era. He also stated describe Ericsson’s new ICT platform that this will be the most disruptive for the maritime industry, noting change we will see in the industry for that the whole maritime ecosystem some time. is changing – the industry is in a A pertinent point that Levander also transformative ICT arena. touched upon is the fact that ship Walter Hannemann, Head of intelligence and the autonomous ship Systems, Technical Division, TORM are not about the final destination, presented key aspects of what they but rather about the journey and have encountered when setting up the development areas that emerge their ICT infrastructure. A key point through aggressive application of that Hannemann raised was that technology. Disruption is a catalyst owners and operators should not for innovation. leave anything as an afterthought He questioned “what is ship when it comes to ICT infrastructure intelligence?” For Rolls Royce it is design and architecture. He advised: all about vessel optimisation. And do not retrofit your design, include the factors of this optimisation IT security from the start and also include remote control/operation, disaster recovery. decision support, navigation and For Hannemann, change positioning, condition management, management is essential as crew onboard automation and operations may use new tools and software optimisation. The landscape of incorrectly, so training is a vital part shipping is changing to smart of ICT infrastructure roll out and operation. Jan Erik Hårvei also stressed that when it comes to ICT and software, a user-friendly interface is essential, stating that Tero Marine’s TM Master solution was developed under the company’s strong philosophy of “Usability Is Key”. He enforced the message that that integration between systems and system families is an extremely important aspect to take into consideration so as to tie everything together.

The Autonomous Vessel: When…. Not If

Rolls Royce’s bold statements around the future of the autonomous vessel are industry-renowned and always provoke fruitful discussion and www.fathommaritimeintelligence.com

shipping with real time data and automated data gathering, he stated. When approaching the topic of the autonomous ship, for Levander it is a case of “not IF, but WHEN”. Drawing reference to autonomous application and modes of transport already existing today, for example unmanned planes, self-driving cars like the Google car, he exclaimed that marine is only following today’s trend! The technical side of creating technologies that require minimal maintenance is the challenging reality of autonomous ships, said Levander. Machinery needs to be made so reliable that it requires minimal maintenance. Towards this end, Levander believes that a different approach needs to be taken and ship machinery and ships in general be made more reliable. For many, regulation is considered to be a major roadblock in the path of the autonomous ship. To overcome this, Rolls Royce’s strategy is to take small pioneering steps in the right direction. Detailing their roadmap to the autonomous ship, Levander described how they will start locally, with some ships whose operations start in one flag state jurisdiction, possibly a RoRo ferry or a tug. The next step would then be to apply this to coastal shipping and then onto an international vessel. Small steps from the status quo, towards autonomy and then onto unmanned are the core pillars of this roadmap.∎

Ship Efficiency Review The Social Scene

THE

SOCIAL SCENE @Marorka - The shipping industry is becoming more energy efficient & more competitive #shipefficiency @GloBallast - 34.56% reached for the @IMOHQ #ballastwater Convention: 0.44% left before entry into force but Panama soon to ratify

@IndustrialPrime - The most powerful #LNG carrier in the world is powered by #ABB #Azipod #marineindustry @BLUECOMMS - Sales of low sulphur gas oil & diesel @PortOfRotterdam almost tripled in 2015 @ShipandBunker #ShipEfficiencyNews - New Transas CEO, Frank Coles, Vocalises Plan To Shake Up The Market #ShipEfficiencyReview

@iwsa_secretary - Ecoship - 10 retractable/PV sails - av. 10% of the propulsion power at 17kns @IMOHQ - IMO measures to improve energy efficiency in shipping praised by UN Secretary-General Ban Ki-Moon during IMO visit @themarinepro - An unmanned research ship powered with wind and solar technology will cross the Atlantic in 2020

@Dualog_News - “Understanding and benefiting from Maritime Communications” Dualog’s CEO on stage #primeperformance

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We are on location for the Fathom-BIMCO PRIME Performance conference!

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Ship Efficiency Review The Last Word

NOX NOX WHO’S THERE?

A 2016 REGULATORY MILESTONE Last January, the tightening of sulphur emissions in Emission Control Areas (ECAs) rocked the industry. Now forever etched in my memory thanks to a market frenzy fuelled by bountiful volumes of information and resources flooding the market. Ship owners were well armed as they headed into battle with Sulphur Oxides (SOx) emissions and I would guess with quite certainty that the majority of industry dwellers at least knew of the impending arrival of the SOx regulations, if not more.

reduction from Tier I and Tier II levels, respectively). Some in the industry muse that meeting Tier I and Tier II was not too great of a challenge as most modern engines meet this level regardless. A powerful statement, one which I cannot expertly formulate opinion - but I can Talk of International Maritime Organization’s (IMO) efforts to force global reductions say that the Tier III level requirements of ship-emitted sulphur dominated the trade media, scrubber manufacturers were do definitely pack a punch compared to announcing orders left right and centre, ship operators were fuel switching to great previous NOx reduction levels governed affect (albeit with the occurrence of some blackouts) and the future of Liquefied under Regulation 13 of MARPOL Annex Natural Gas (LNG) as a fuel option was being debated with much gusto. VI. That was at the dawn of 2015. Fast forward to exactly one year later and a new The fact remains that although this exhaust emissions-related regulatory enforcement has graced the industry with regulation may reside at the back of its presence. Ship Nitrogen Oxides (NOx) are under fire this time, January 1, 2016 the minds of some, the great impact marking the strictest level of NOx reduction requirements under the IMO-enforced potential that Tier III holds means Regulation 13, MAPROL ANNEX VI entering into force, ever. that these regulations should not be The NOx Ninja that is the requirements demanded by the Tier III brings a whole dismissed by ship owners whose ships new challenge to ship operators whose ships are destined to sail in NOx ECAs, and do not sail at this moment, or will sail in also those that may sail in future designated NOx ECAs that may transpire over the the near future, in currently designated next deacde or few. I read somthing recently that stated that non-compliance costs in NOx ECAs. The NOx Ninja will attack ship owners US $25,000 per violation and prosecution and that ship detainment is a at some point in the future, it is only a real threat that should be taken seriously. This regulation means business. Especially matter of time before the number of as it can only be met through the adoption of Selective Catalytic Reduction (SCR) established SOx ECAs increase and technology , Exhaust Gas Recirculation (EGR) technology or the use of LNG. This is within those NOx emissions may come definitely hard hitting stuff, those options scream major capital investment demands. under fire. Therefore, greater industry Although a defining regulatory milestone for the industry, it was hard not to notice awareness and resources for ship the lack lustre reaction to this regulation bombing into the industry. Unlike the fanfare- owners is essential and will facilitate plain accompanied arrival of the tightened SOx emission regulations in 2015, this NOx (ECA) sailing for the years to come.∎ constricting regulatory beast seemingly sailed into the market without much of a fanfare and there certainly wasn’t a market frenzy so to speak. Correspondingly, the amount of resources available to equip ship owners with what they need to know to make investment decisions in order to ensure compliance was sparse, at least very sparse when compared to compliance options and strategies for SOx emission reduction. However, although this milestone NOx regulation may sound very severe, and I have willingly chosen my words to paint the picture as such, its impact will only be felt by a select clique of ship owners due to the fact that it is very regionally specific at this current time. The term ‘regionally’ signifying that the Tier III level requirements are only applicable to newbuild ships being constructed post January 2016 that are destined to sail in the North American NOx ECA or the US Caribbean Sea NOx ECA. This slim range of ships that the NOx Ninja will strike definitely gives reasoning as to why the arrival of this mammoth regulation received muted fanfare. Catherine Austin For those ships that it does effect, its impact is colossal. It requires a hefty leap in Editor, Ship Efficiency Review emissions reductions from the previous tiers (Tier III necessitates an 80% and 76% www.fathommaritimeintelligence.com

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