Green Shipping - Spring 2013

www.greenshippinginternational.com

2013

spring

international

Scrapping EU spanner in the works

Carbon conundrum - biofuel or nukes?

Green Award takes in boxships ECA 0.1% sulphur limits loom Class societies go green

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www.greenshippinginternational.com

2013

spring

international

Publisher: W H Robinson Editor: David Hughes (editor@mar-media.com) Deputy editor: John Rickards (john.rickards@mar-media.com) Sub Editor: Samantha Robinson Head of Maritime Publications: Taj Oberai (taj.oberai@mar-media.com) Sales: Cam Raza (cam.raza@mar-media.com) Designer: Justin Ives (www.justindesign.co.uk) No part of this publication may be reproduced in any form or by any means including photocopying or recording, without the permission of the publisher. Written permission must be obtained before any part of this publication is stored in a retrieval system.

The opinions expressed in this publication are not necessarily those of the publisher. The publisher has tried to ensure all information is accurate, but emphasises it cannot take responsibility for any mistakes or omissions. The publisher does not accept responsibility for the advertising content in this publication.

Published by: Maritime Media Ltd The Diary House Rickett Street London SW6 1RU UK Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com Web: www.greenshippinginternational.com

This publication is printed on PEFC certified paper.

PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.

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Contents 4

On watch 4

A resource for challenging times

Fuel

35 Fuel for thought

The overall challenge to the industry is to develop a sustainable future for shipping.

News 6

7

News round-up

The Sustainable Shipping Initiative’s vision,- The launch of a greener tanker -Steps to increase fuel efficiency and much more.

Green Award

10 Award-winning ways The Green Award scheme is expanding to include more ship types and incorporates the Environmental Ship Index.

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The yet-to-be-ratified Ballast Water Management Convention is creating severe headaches for shipowners.

Liquid wastes

16 Cleaning up the cruise ships With black and grey water treatment still under the spotlight, what options do cruise lines have to meet the world’s most exacting effluent standards?

Emmisions

18 Cap in hand Shipping has no choice but to find a way of meeting 2015’s tough sulphur limits.

Coatings 25

21 Foul play How the coatings business is staying ahead of the regulatory game.

Efficiency

25 Cutting out the carbon The two drivers for increasing the efficiency of operating vessels

49

Class

38 Class acts Some of the larger classification societies are very involved in environmental projects – all taking a different approach to greener shipping

Ports

41 Clearing the air Ports around the world are under pressure to safeguard their local environments and, particularly, to reduce sulphur dioxide and soot emission

Ballast water

13 Water works wreak havoc

21

As the new 0.1% sulphur standard looms ever nearer, shipowners are examining what it will mean for them

Recycling

Law

45 Not in our backyard California has banned even treated maritime sewage discharge in its waters. What does this move mean for shipping and could we see more states follow?

Insurance

46 Sinking funds In the event of an environmental disaster arising from a grounding of the largest generations of box ships, could the salvage and insurance industries cope?

Geographical Focus

49 Scandinavia & Finland The region is famously environmentally-aware, and its maritime concerns are no different. We catch up with the latest developments.

Events

56 Keep up with the debate on green issues We highlight the key gatherings for the shipping industry.

30 The scrap race Pushing to implement standards to head off criticism of scrapping practices.

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On watch

A resource for challenging times Welcome to the first issue of Green Shipping.

The maritime industries need an authoritative and thought-provoking resource providing news and comment on the many pressing environmental challenges shipping now faces. This publication and our free-access online news service at www.greenshippinginternational.com meet this need

This inaugural issue is packed with information and opinion covering the whole range of issues facing shipowners and all who are connected with shipping.

The overall challenge to the industry is to develop a sustainable future for shipping; to continue to carry the cargoes that are lifeblood of world trade, but at the same to reduce the industry’s impact on the environment and its use of scarce resources to a minimum. All of the topics featured are part of that overall picture, from anti-fouling coatings to full ship recycling.

However, there are two issues that will impact greatly on the industry in the immediate future. No shipowner can ignore the need to fit ballast water treatment within a short space of time. But as our feature on p13 puts in stark relief, the choices are not easy and obtaining and fitting equipment that will be accepted worldwide could well be a nightmare. The Ballast Water Convention, well intentioned as it was, does not represent the working of the International Maritime Organization (IMO) at its best.

The other immediate issue is the question of how to meet the 1% sulphur limit coming into force in Emission Control Areas in less than two years. In some ways, this a simpler problem to solve in that owners can just pay more (much more) to use distillate instead of residual fuel. The alternative of fitting scrubbers is only now emerging from the development stage. Shipowners face a judgement call on when/if to go for this alternative and what system to buy. Again, hard choices lie ahead.

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There is one other huge challenge that is bound to profoundly change the way we do things in the longer term: the long-term sustainability of the industry.

Here, the crucial issue is how to greatly reduce shipping’s carbon footprint while demand for sea transport continues to increase.

A new position paper from DNV Research and Innovation outlines “directions for a more environmentally friendly seaborne trade”. It says CO2 emissions from ships could count for at least 10% of global emissions in 2050, as compared to 3% today, if measures are not taken.

“If shipping should be required to reach emission levels in 2050 consistent with a global 2oC stabilisation target, we need to do more than stabilising emissions at present level. To achieve the 2oC target, the shipping sector must reduce CO2 emissions by 60% from today’s emission level,” says Magnus Strandmyr Eide, the paper’s main author.

Controversially, the study has identified two “plausible pathways” for the 2oC target for shipping – nuclear power or biofuel. The prospect of either having perhaps 70,000 floating nuclear power stations sailing around the world or of massive amounts of productive land being used to grow ship fuel instead of food may not receive universal approval. Our ship efficiency feature on p25 looks at what is going on now to reduce fuel consumption and thus cut CO2 emissions.

Many shipowners will say that the freight market, current high bunker costs and extensive IMO regulations are enough to ensure they become ever more efficient and environmentally friendly.

There are many, however, who believe that shipping needs the nudge of incentives and that is what the Green Award (GA) scheme has been doing for several years now . Our Insight pages report on p10 looks at how the GA is expanding both geographically and in the vessels types it covers.

I hope you find Green Shipping useful and would welcome your feedback. Contact me with your thoughts.

David Hughes Editor

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Future energy management Challenging regulations New technology Higher fuel costs At Lloyd’s Register we know that managing energy is about understanding the complex relationship between challenging regulations, new technology and higher fuel costs.

We can help you negotiate this complexity and improve energy performance – without reducing safety.

For us it’s about energy management.

Discover more at www.lr.org/energymanagement

Lloyd’s Register is a trading name of Lloyd’s Register Group Limited and its subsidiaries. For further details please see www.lr.org/entities

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News

News round-up All the latest news and information, including the Sustainable Shipping Initiative’s vision, the launch of a greener tanker and steps to increase fuel efficiency

Japanese company Eco Marine Power (EMP) says it has completed the high level design for an innovative rigid sail. The Fukuoka-based company says EnergySail can be used even when a ship is at anchor or in port and has been designed to withstand high winds and sudden squalls.

EMP says it is patenting the device, which can be fitted with a range of additional renewable energy technologies such as solar panels or wind power devices.

EMP describes itself as an innovative renewable energy technology company, committed to designing, developing and promoting eco friendly power & propulsion solutions for ships and vessels. Its projects include wind, solar-electric, hybrid marine power and solar-wind powered systems, solar-electric ferry and work boat designs.

The EnergySail has primarily been designed for EMPr’s Aquarius MRE system, which is intended to be a cost-effective commercial system for utilising wind power and solar energy on large commercial vessels such as bulk ore carriers and tankers.

It is anticipated that the Aquarius MRE system will reduce a ship’s fuel consumption by 10% to 20% or more a year. The company claims: “Used alongside other energy efficiency technologies a ship fitted with the Aquarius MRE System could reduce fuel consumption by 40% or more.

The EnergySail design project commenced in August 2011 and, EMP says, has now been developed into a unique renewable energy platform for shipping that can be fitted to a wide variety of ships, from large capesize bulk ore carriers to naval and coastguard patrol ships. A variation of the EnergySail that is suitable for unmanned surface vessels and smaller ships such as passenger ferries or fishing vessels is also being developed.

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The company’s director of research and design, Greg Atkinson, says: “We spent a lot of time during the design phase focused on incorporating safety features into the EnergySail, also making it flexible in terms of being easy to re-configure or upgrade the device. Wind and solar power technologies will improve during a ship’s operational lifespan, so in our view it was critical that the EnergySail be easily upgradable.”

Sustainable Shipping Initiative reveals vision The Sustainable Shipping Initiative (SSI) says it is taking practical steps to tackle some of the sector’s greatest opportunities and challenges and is working to achieve a vision of a shipping industry that is both profitable and sustainable by 2040. SSI, which is “facilitated” by the Forum for the Future in conjunction with the World Wildlife Fund, has announced that it will report on progress by its four initial “workstreams” in September next year, at an industry event in Singapore.

SSI’s cross-industry coalition includes major industry players such as Maersk Line, Cargill, Lloyd’s Register, DNV, Wärtsilä and Daewoo Shipbuilding and Marine Engineering (DSME).

The SSI was founded in 2010. In May 2011, it published a case for action that addressed key challenges that today’s shipping industry faces, such as a potential contraction in world trade, rapid changes in routes and markets, rising fuel costs, oversupply of vessels with obsolete technology, restricted investment in new technologies and growing scrutiny of the industry’s social and environmental performance.

In April this year, at Singapore Maritime Week, the SSI announced details of four initial workstreams, aimed at implementing its Vision for 2040. These address the areas where collective action has the greatest potential to accelerate change and are driven by SSI members.

The finance workstream is tackling the problem that charterers and shipowners have different incentives to save fuel. This is stifling the retrofit of new technologies

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Japanese company Eco Marine Power (EMP) says it has completed the high level design for an innovative rigid sail

on to ships that have proven performance and business cases. The participants will innovate and pilot a new financial mechanism that shifts the risks and returns and enables successive charterers to benefit from fuel savings while paying a premium to the owner so that the investment in new technologies can be repaid over time.

The materials management workstream is developing systems to trace and track all the materials used to build a ship. The goal is to achieve full transparency and accountability for the social and environmental impacts from construction through to recycling of ships.

The energy tech workstream is working on both technologies and techniques that will deliver a step-change in the energy requirements and resulting emissions of vessels. Focusing on the opportunities created by wind assist and air lubrication technologies, and a set of low energy marine operational techniques, participants are developing robust business cases that can provide the information companies need to justify large scale investment at scale in lower energy marine technologies and techniques.

The credible benchmarking workstream is focused on helping the shipping industry navigate the growing number of beyond-compliance rating schemes, which will enable greater uptake and drive improved sustainability performance. The group will develop an independent reference/guidance resource for stakeholders designed to increase awareness and assist in selection and use of the existing rating schemes.

Gas turbines “to re-emerge in marine marketplace” US-based engine manufacturer GE Marine claims that its aeroderivative gas turbines are poised to re-emerge in the commercial marine market as a prime power producer, especially for new natural gas applications such as LNG tankers, LNG-powered fast ferries and yachts or FPSO. “Trends may come and go in the commercial marine industry, but what has remained a constant, reliable choice for shipowners and operators worldwide are our fuel-flexible and emissions friendly line of LM gas turbines,” said Brien Bolsinger, vice president, Marine Operations, GE Marine.

“In fact, GE has an impressive fleet of gas turbines in commercial service, including more than 90 LMs delivered since 1995 for 17 cruise ships, four high speed yachts and 18 fast ferries. Over 1,200 LM gas turbines also power ships for 31 navies worldwide,” he added.

GE says its LM gas turbine fleet has logged more than 13 million hours in marine service, “proving their reliability and advantages over diesel technology”. On economic viability, the company says: “In the mid-2000s, MGO burned in gas turbines experienced a significant price increase versus the heavy fuel oil used by diesels, moving the market back toward diesels. Fast forward to today and gas turbines are worth another look. New environmental requirements will undoubtedly usher in increased use of LM gas turbines burning alternate marine fuels such as LNG.”

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News

In a statement, it claims that its gas turbines have numerous advantages.

NOx emissions are inherently low compared to diesel technology, meeting IMO and US Environmental Protection Agency standards, using GE’s single annular combustor burning natural gas fuels. GE also says that, with its dual fuel dry low emissions combustion system, LM gas turbines in a combined cycle configuration currently meet even the most stringent pending-2016 levels when burning either MGO or natural gas fuels without exhaust after treatment.

The gas turbine engines can operate on a variety of fuels, including MGO, bio-diesel, bio-synthetic paraffinic kerosene blends and natural gas. The company says: “Fuel flexibility is even more beneficial today as commercial ship operators adopt dual-fuel operating scenarios to meet new emissions regulations.”

GE also says that gas turbines combustor and hot section turbine repair intervals can double to more than 25,000 hours when burning natural gas, significantly reducing maintenance costs.

“Environmentally friendly” tanker South Korea’s Hyundai Mipo Dockyard (HMD) delivered King Gregory, a 52,000-dwt tanker, to Consolidated Marine Management (CMM), the shipping branch of the Latsis Group. Classed by Lloyd’s Register, the oiland-chemical carrier is described as having the latest environmental and efficiency features King Gregory is the first of two medium-range, IMO II & III-class oil/chemical tankers contracted by Consolidated in August last year. It is estimated that the ship’s daily fuel consumption in the ballast condition with a speed 12.5 knots will be no more than 17.5 tonnes, while the consumption in laden condition at a speed of 13 knots will be less than 19.5 tonnes.

The ship features the latest equipment and technology to cope with new environmental requirements and energy-saving demands, according to Kostas Vlachos, Consolidated’s Chief Operating Officer. He said: “She is equipped with an electronic main engine, a larger diameter propeller, mewis duct and ship-performance monitoring – transmitting data to the office, including but not limited to the monitoring of daily and specific fuel oil consumption and, hence, CO2 emissions, the trim of the ship, and other key data – to help ensure the optimum performance.”

According to a statement, the King Gregory has started a three-year time charter with Cargill, with both owners and charterers expected to realise considerable savings when compared with other ships in its class.

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SEEMP software yields fuel savings Finnish shipping company Bore has announced the results of its trial of electronic SEEMP software, which has verified a 5.8% reduction in fuel consumption.

The company says that its 89-day sea trial of the NAPA for Operations SEEMP software, conducted between April and July 2012 along routes between Cadiz and Naples and Cadiz and Pauillac, delivered calculated annual fuel savings of 320 tonnes, equivalent to US$210,000 in fuel savings per annum, onboard one of the most efficient ro-ro vessels in its class, the Bore Sea. Through advanced normalisation calculations, the difference in average speed, the effect of wind and constant switching from rpm mode to combinator mode were factored out of this result. This process showed that speed optimisation alone created a 5% reduction in fuel consumption, with potential from trim optimisation providing another 0.8%. Through this normalisation process and data analysis, NAPA could also verify substantial additional saving of approximately 10% from WE Tech Solutions’ Variable Frequency Drive Shaft Generator (VFD SG) application.

Voyage reporting and electronic logbook systems were installed for a 63-day reference phase to establish the benchmark performance of the vessel before efficiency management processes were enacted for the trial. Fuel consumption and efficiency data continued to be transmitted to shore every 10 minutes throughout the second stage of the study to give an accurate foundation for analysis.

NAPA Speed Optimiser software was implemented to enable efficiency improvements to the vessel’s speed profile, reducing the standard deviation of the speed profile from 1.6kn to 0.7kn. This measure alone contributed significantly to the fuel savings.

Jörgen Mansnerus, VP Marine Management, Bore, says: ““We are exceptionally pleased with the outcome of this trial of NAPA for Operations SEEMP systems.

We challenged NAPA to prove that an electronic SEEMP could provide measurable and tangible fuel and cost savings to our fleet and this study does just that. During the benchmarking period, we saw that the business-as-usual annual consumption of Bore Sea would be around 5,600 tonnes. Given the 5.8% savings afforded by implementing two elements of the NAPA package, we should see significant financial savings.”

Matti Salo, Executive Vice President, NAPA for Operations, comments: ““Working with Bore on this sea trial is an important milestone for electronic SEEMP development and its pivotal role in providing fuel savings and reducing emissions. Based

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on our calculations, the savings achieved on the Bore Sea equate to a 1,000 tonne annual reduction of CO2 emissions for this vessel. There is also potential for further savings to be achieved, aboard this vessel with other elements of NAPA for Operations software, such as route optimisation, cargo positioning, ballast and fouling among other measures.”

Jensen goes on to say that Alfa Laval is the first maritime supplier to help ship owners improve fuel efficiency by capturing the waste heat potential of the auxiliary engines and turning it into usable energy onboard. This delivers measurable cost savings and enhances a ship’s environmental profile.

Scrubber order Major marine technology and services group Wartsila says it has received a repeat order to provide a hybrid exhaust gas cleaning and SCR system.

The contract, signed in December, is for systems providing universal compliance with sulphur limits including the North American ECA, the 2015 0.1 per cent ECA in Europe, the worldwide 0.5% sulphur limit from 2020 and Tier III IMO NOx limits from 2016.

Wartsila says that the hybrid exhaust gas cleaning system also enables the choice between open-loop and closed-loop scrubbing to be made at any time, maximising control. This means that exhaust gas cleaning using only seawater can be enabled at sea, but while manoeuvring or in port the system can be closed, re-circulating the water already within the scrubber. In addition, the Selective catalytic reduction SCR system, which is integrated into the engine downstream of the exhaust gas turbine, will remove up to 95% of NOx from the vessel’s emissions.

Sigurd Jenssen, Director, Exhaust Gas Cleaning, Wärtsilä Ship Power, Environmental Solutions, said: “This repeat order, included in the 2012 fourth quarter order book for Wärtsilä, further validates scrubbing technology as a proven, efficient and cost effective method of meeting and exceeding ECA compliance and is evidence of the strong customer partnerships that we develop and the quality of the systems that we provide. Wärtsilä customers are at the forefront of pro-active preparation for further incoming environmental regulation and are taking their responsibilities seriously.”

Waste heat recovery “improves fuel efficiency” Equipment manufacturer Alfa Laval says its new Aalborg XS-TC7A waste heat recovery (WHR) economiser promises fuel and emissions savings for the world’s maritime fleet.

The company says that firing the auxiliary boilers to sustain a ship’s steam requirements will cost much less, both in terms of fuel oil and impact on the environment, using the new system.

Capable of completely supplying or supporting ship steam requirements during manoeuvring and port stays, the system turns waste heat from a ship’s auxiliary engines into usable energy and cuts carbon emissions.

Alfa Laval claims that, with its small footprint and low weight to output ratio, the Aalborg XS-TC7A promises to reduce fuel costs for oil-fired auxiliary boilers. After two years of testing at sea, a statement says, a major Danish shipping company is among the first to capitalise on the full potential of using waste heat recovery economisers both after the main engines and auxiliary engines on its fleet.

According to Alfa Laval, the company, which it did not identify, signed a contract in January 2012 to install the Alfa Laval Aalborg XS-TC7A on 20 newbuildings and a larger number of retrofits over the coming years.

Alfa Laval’s Vice President, Marine & Diesel Division Hans-Henrik Jensen says: “Waste heat recovery systems after the main engines have proved lucrative for decades for many shipowners. Taking advantage of the waste heat from a ship’s auxiliary engines is the natural next step, which is now possible thanks to the Aalborg XS-TC7A. The product has been very well received by the shipping industry, where many of the leading companies are investigating the possibility of installing the Aalborg XS-TC7A onboard.”

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Green Award

Award-winning ways The Green Award scheme is expanding to include more ship types and incorporates the Environmental Ship Index

The basic principles that the Green Award works on are that it certifies ships that are “extra clean and extra safe” and those ships reap various financial and non-financial benefits.

By rewarding high safety and environmental standards in shipping, the Green Award makes above-standard ship operation economically more attractive. The Green Award certification scheme is open to oil tankers, chemical tankers and dry bulk carriers from 20.000 DWT and upwards, LNG carriers and inland navigation vessels.

The Green Award procedure is carried out by the Bureau Green Award (BGA), the executive body of the independent non-profit Green Award Foundation. The certification procedure consists of an office audit and an audit of each individual ship applying for certification. Among many others, the assessment focuses on crew, operational, environmental and managerial elements.

At ports in Belgium, Canada, Latvia, Lithuania, the Netherlands, Oman, New Zealand, Portugal and South Africa, Green Award vessels receive a considerable reduction on port dues. Private companies also appreciate the extra quality that Green Award guarantees. Several incentive providers, government institutions as well as private companies, grant savings to a vessel with a Green Award certificate, which, subject to annual verification, is valid for three years.

Green Award has recently become the first organisation to carry out verification checks for the Environmental Ship Index (ESI) programme. The verification checks will be integrated into the current auditing procedures.

The ESI programme is run by the World Port Climate Initiative (WPCI) and identifies seagoing ships that perform better in reducing air emissions than required by the current emission standards of the International Maritime

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Organization. BGA says that the ESI is a “good indication of the environmental performance of ocean-going vessels and will assist in identifying cleaner ships in a general way”.

The index is intended to be used by ports to reward ships when they participate in the ESI and will promote clean ships, but can also be used by shippers and shipowners as their own promotional instrument. ESI will provide a total score, but the rewards can either be based on that total or on each of its constituent parts separately. The programme is completely voluntary and WPCI hopes that the global port community will act as incentive providers to improve the maritime and port environment. BGA also says that all stakeholders in maritime transport can use the ESI as a means to improve their environmental performance and as an instrument to reach their sustainability goals (see figure).

BGA asserts that, with ESI focusing on air emissions of NOx, SOx and CO2 – which are three of the over 50 important environmental and safety elements that Green Award includes in its inspection criteria – it is “only natural to join forces in order to achieve the best results in the aspect of minimising the impact of emissions on the environment”.

It adds: “With 18 years of inspection expertise, Green Award will be able to smoothly incorporate a simple verification check of ESI data during the regular Green Award ship surveys. With the ever-increasing amount of inspections onboard ships, this approach will prevent Green Award-certified ships/certificate holders from facing yet another inspection burden.”

So, what does this mean for Green Award seagoing certificate holders? The BGA says that the usual planning, ship surveying and reporting will not alter. The procedures will simply be streamlined to the existing certification procedures, keeping the burden minimal for our certificate holders. ESI verification will be performed at random and the master of the ship will be informed accordingly.

BGA says: “The only co-operation we would request would be the co-operation of the ship managers and the crew members onboard for data provision.”

In the organisation’s latest annual report, covering 2011/12 and released at the end of last year, its chairman Pieter Struijs says that the Green Award Foundation is very well aware of the difficult situation some shipping companies encounter. He

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notes: “In 2011, a slight recovery was noticed for some sectors. Unfortunately, this did not continue and freight and charter rates dropped again to dramatic levels.

I am thankful for the positive attitude of our certificate holders and their continued aim to remain ]front runners} in this industry.”

He added: “I am convinced that ‘green‘ and ‘quality’ are imperative elements in the fierce competition for the next few years and will make a difference in business ultimately. I am proud and happy that the Green Award programme can play a supportive role in this.

Struijs also thanks the many ports and marine service providers who are the scheme’s incentive providers. He says: “They recognise that the incentive programme motivates for safe, environmental conscious and quality shipping.”

Looking ahead, he said: “For the near future, I expect a strong focus on corporate social responsibility elements. The demands of today are different to those of a few years ago. These efforts in improving the standard is the best we can offer to the certificate holders and incentive providers.”

Referring to the expanding scope of the scheme, he said: “As a result of extending the programme to other ship types, the first LNG-carriers were inspected and rewarded with a Green Award Certificate. The LNG-operators respected the

way the management and the inspectors incorporated their activities within the operational schemes of these shipping companies, a further extension of the programme to other ship types is aimed for in the cause of 2012 and 2013.”

Struijs also noted the Green Award’s move into inland shipping. “Two years ago, the Green Award Foundation started its aspirations on a certification programme for European Inland shipping. The Board of Experts and management, together with the Dutch inland barge associations and the Dutch deep-sea ports defined the criteria for certification that were adopted by the Green Award Committee.”

According to Struijs, Green Award certification for inland barges became a useful tool for inland shipping to be recognised as a “sustainable transport modality”.

The criteria for certification are mainly focused on exhaust emissions. Over 300 inland barges are now certified by the Green Award Foundation.

In 2011, studies concerning chemical tankers and container vessels were completed and a certification scheme for the former was introduced in 2012, while one for container vessels is set to follow this year.

Meanwhile, notes Struijs, the Green Award management team has been active in attracting new incentive providers. In January 2012 the major Canadian dry bulk port of Sept-Îles became an incentive provider.

The Port of Rotterdam is a prominent supporter of the Green Award scheme, which will soon include container ships

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Ballast

Water works wreak havoc The yet-to-be-ratified Ballast Water Management Convention is creating severe headaches for shipowners

In a keynote address to the International Chamber of Shipping (ICS) Conference in London September 2012), IMO Secretary-General Koji Sekimizu told shipowners that they had the power to encourage their flag states to ratify the 2004 Ballast Water Management Convention (BWMC) as soon as possible, as well as to implement its provisions with immediate effect.

Sekimizu pointed to the “good number of ballast water treatment technologies now approved and available, together with the fixed deadlines for their application contained in the Convention, as convincing reasons why the industry should not wait any longer to implement its provisions”.

Warning of the negative consequences of further delay in bringing the Convention into force, Sekimizu said: “The problems associated with ballast water are inherently connected to the expansion of world trade. This is an issue from which the shipping industry cannot escape.”

The shipowners responded politely, but, to put it mildly, they see things differently.

The BWMC has been seen as a problem right from the outset because it committed the industry to fitting equipment that did not then exist, and on a fixed time scale that has now passed, meaning that all ships will need to be fitted with ballast treatment very quickly once the Convention enters into force.

The Convention will enter into force 12 months after less than 30 states, accounting for 35% of the gross tonnage of the world’s merchant have ratified it. As of midFebruary this year, 26 states had ratified, but these only represented 29.07% of world tonnage. It is generally expected that entry into force will happen within two years.

In July last year, ICS Director of Regulatory Affairs David Tongue pulled no punches when he warned of the challenges ahead, saying: “Shipping companies represented by our member national associations have serious concerns about the availability of

suitable ballast water treatment equipment, the robustness of the type approval process and, above all, the difficulties of retrofitting tens of thousands of existing ships within the time frame established by the BWM Convention.”

In a submission to the IMO Marine Environment Protection Committee, in advance of its October meeting, ICS asked that the issue of fixed dates for the retrofitting of expensive new equipment by perhaps as many as 70,000 ships be addressed urgently.

ICS proposed that the IMO should modify the BWM Convention’s requirements so that existing ships should not be required to be retrofitted with treatment equipment until their next full special survey. It argued: “In view of the pressures on shipyards that will need to fit the equipment, this would smooth out implementation over a five- year timeline around the date of entry into force of the Convention, rather than two or three years as at present.” It also proposed that, to make it possible for other ships to be retrofitted within the required time, ICS proposes that ships approaching their fourth special survey should be exempted from the equipment requirements.

In a separate submission to IMO, ICS requested that IMO considered modifying its current draft guidelines for type approval of equipment, and for ballast water sampling and analysis that will be used by port state control, so that as far as possible they are comparable with those recently adopted by the United States.

David Tongue commented: “A large proportion of the fleet will have to comply with the US requirements which cannot be changed. For the sake of global uniformity we think it would be helpful if the relevant IMO Guidelines can be modified.”

Expressing shipowners’ frustration, he warned that “the type-approval process for expensive new treatment equipment is seriously flawed and much more work still needs to be done by governments to rectify the current situation. Shipowners are being required to invest billions of dollars in new treatment systems that may not always work in practice.”

The October MEPC brought a mixed result for ICS. Its Secretary General, Peter Hinchliffe, said: “It is good that many governments seem to accept shipowners’ arguments that it will be very difficult indeed to retrofit tens of thousands of ships within the time line of two or three years after entry into force as the Convention text currently requires.

IMO has agreed to develop an IMO Assembly Resolution, for adoption in 2013, to www.greenshippinginternational.com

GSI Book.indb 13

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07/03/2013 11:45

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8

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GSI Book.indb 14

07/03/2013 11:45

Eagle Vancouver

facilitate implementation to work smoothly.” But ICS was “very disappointed that many shipowner concerns about the robustness of the type-approval process have been disregarded or sidelined during the MEPC meeting”.

“The BWMC was designed to assure the ability to meet the required standard by a treatment system installed on an operating vessel, not in the vacuum of a test facility,” said Hinchliffe.

In January, the BWMC was the biggest worry at an annual tripartite meeting of representatives of global associations of shipbuilders, classification societies and shipowners in Busan, Korea .

In a statement, the industry leaders said: “New technologies needed to be explored and developed to treat the volume of water required by ocean going ships as ballast.

However, the slow pace of ratification by IMO member states has negated the carefully staged implementation programme that was a feature of the original Convention. Now that the fixed time line for implementation has passed without entry into force it means that, as soon as the Ballast Water Management Convention does meet its ratification criteria, thousands of ships will need to be fitted in a very short time.”

They noted: “While strenuous efforts were made by industry, this will put unattainable demands on ship repair facilities, engineering capabilities and on the relatively small number of manufacturers that have developed suitable treatment equipment.”

They also expressed serious concerns about type-approval requirements, noting the many unresolved technical issues, saying: “Having gained some experience with the current requirements, tripartite participants expressed the clear opinion that many serious shortcomings now need urgent attention. If nothing is done to address this situation, a large amount of treatment equipment costing billions may be required to be installed on ships with the prior knowledge that these systems may not always work reliably to the demanded biological efficacy.”

Speaking at the end of the tripartite meeting, ICS Chairman Masamichi Morooka said: “It is good that many governments now seem to understand the shipowners’arguments that it will be very difficult indeed to retrofit tens of thousands of ships within the timeline of two or three years of entry into force, as the Convention text currently requires. IMO has agreed to develop an IMO Assembly Resolution, for adoption in 2013, to smooth the implementation.”

“It is vital that we ease the log jam by spreading implementation over five years rather than two or three,” added Dave Iwamoto, Chairman of the Committee for Expertise of Shipbuilding

Treatment plants make their way on board

The past two or three years has seen a surge of activity by equipment manufacturers developing ballast water treatment plants. By early 2013 various systems were in operation on vessels, but still is small numbers.

However a steady stream of owners were reporting their first operational system.

Among them tanker operator AET took delivery of the 320,000 dwt Eagle Vancouver from Korean yard, Daewoo.

AET said the VLCC was one of the world’s first newbuilds to comply with the Ballast Water Management (BWM) Convention.

Although yet to be ratified, the IMO Convention will require vessels to manage their ballast water on every voyage either by exchanging it or treating it with an approved ballast water treatment system. Pre-empting the ratification, the new AET vessel has been fitted with a BWM system that disinfects ballast water using electrolysis technology.

AET President & CEO Hor Weng Yew said: “Investing in ballast water treatment technology at this early stage ensures that AET stays ahead of industry requirements and demonstrates our readiness to embrace our environmental responsibilities. This vessel is the first of four newbuild VLCCs to join our fleet in 2013 and all will comply with the BWM Convention.”

He went on to say: “Protecting the environment is top of our corporate agenda and we invest heavily to ensure our vessels make a minimal impact on the planet.

“Not only is Eagle Vancouver fitted with this state-of-the-art ballast water management system, but she also features a range of innovations that are aimed specifically at reducing bunker consumption and the associated environmental emissions.”

Meanwhile, Mitsui OSK Lines (MOL) has announced that it has acquired approval in concept for installation of a packaged container ballast water treatment system that can fit in a vessel’s cargo hold. The system is the result of a joint project with Mitsubishi Heavy Industries and marks Japan’s first approval of such a system by Nippon Kaiji Kyokai (ClassNK).

MOL says that the new technology offers much faster installation time on an existing vessel, compared to systems installed in the vessel’s engine room.

The commercially available treatment plant is housed in a 40-foot container with its electrical equipment. The design is said to offer ease of maintenance and accessibility.

www.greenshippinginternational.com

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Liquid waste

Cleaning up the cruise ships With cruise ship black and grey water treatment still under the spotlight, what options do lines have to meet the world’s most exacting effluent standards?

Traditional marine sanitation devices (MSDs) come in a variety of designs, but mostly employ aeration to reduce active bacterial levels through biological action between microbes and neutralisation of active compounds, as well as reducing biological oxygen demand (BOD), clarification, to reduce suspended solid levels (and, as a result, BOD again), and then chemical disinfection to reduce bacterial levels below regulatory levels. Some employ maceration to break up solids before aerations and treatment and some vary the process in other ways, for instance using a higher degree of chemical treatment in place of aeration. An approved Type II MSD has to produce effluent with no more than 200 faecal coliforms per 100ml and 150g/l of total suspended solids. Discharge is then permitted within coastal waters under MARPOL. Untreated sewage and dumping of sludge left over from treatment (or the ash if sludge is incinerated) is allowable only past the 12nm limit.

These levels are far higher than most land-based treatment standards and take no account of BOD – anoxia in sheltered waters can cause serious environmental damage – or levels of ammonia, nitrates and phosphates, among others.

While MSD-treated effluent from a cargo vessel is unlikely to cause environmental issues, large cruise vessels are another matter. With ships like Royal Caribbean’s Allure of the Seas carrying nearly 8,000 passengers and crew, and all the added grey water generated by catering to passengers travelling in luxury, the waste output of these ships even after treatment to MARPOL standards can pose coastal states with serious problems.

A survey of water treatment on cruise vessels in Alaska in 2000 found that

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MSDs were unable to treat black water to levels the state considered would preserve the local marine environment and that untreated grey water from showers, laundry and galleys could contain equal or higher concentrations of bacteria and suspended solids than black water. Cruise ships operating in Alaskan waters are now required to employ advanced waste water treatment systems (AWTS) and meet higher standards if they are to discharge liquid waste off the Alaskan coast.

While biological aerobic digestion, membrane treatment and fine filtration have all been employed in AWTS to some degree of success, it’s in moving bed bioreactor (MBBR) designs that the most prominent advances have been made

The waste output of large cruise vessels even after treatment to MARPOL standards can pose coastal states with serious problems in recent years. MBBR systems have been installed on a number of recent cruise newbuilds, primarily ships ordered by Royal Caribbean. Texas-based Headworks Bio has installed seven MBBR systems with activated sludge return (where biologically active sludge is fed back into the initial treatment stage to help digest solids) on RCCL vessels after initially winning a contract on Oasis

www.greenshippinginternational.com

07/03/2013 11:45

of the Seas when the original provider dropped out during construction.

In an MBBR reactor, biological reaction takes place on the film surfaces of freemoving plastic or ceramic cylinders within the treatment chamber, providing a much greater surface area, and less risk of blinding, than with a conventional fixed screen, at the cost of usually requiring higher dissolved oxygen content for nitrification – turning dissolved ammonia, the effluent concentration of which has been a common source of recorded Alaskan ship infractions in recent years, into nitrates – and, dependant on flow required, higher pump load. Some MBBR reactor designs use one primary treatment vessel for both BOD reduction and chemical breakdown by employing an integrated fixed film activated sludge (IFAS) unit at the base of the tank.

MBBR systems are widely held to be more efficient than conventional and membrane treatment systems, as well as being more compact and having lower energy requirements and consequently overall carbon footprint. The market for MBBR systems on ship and at sea is predicted to grow strongly as tighter standards are enforced and, consequently, costs may fall as they become more common.

Market forecast group Global Industry Analysts predicted this year that the total MBBR market, on shore and at sea, will reach US$1bn by 2017.

Biofilm membrane reactors (MBR), one of the prime alternatives, work partly through biological action and partly through filtration, with active nitrification and reaction occurring on the surface of a permeable tank membrane. Like MBBR

RCCL has installed AWTS on many of its ships. The Oasis and Freedom of the Seas have biological treatment systems built by Headworks Bio and Scanship respectively

systems, they can be relatively compact and generally require no tertiary filtration stage to remove suspended solids. They are expensive both to build and run, needing replacement membranes on a regular cycle, and operational manpower requirements can be quite high, but the effluent quality is generally very high.

Both systems can suffer from salt shock should influent salt concentration spike, reducing their operating efficiency and dropping effluent quality, potentially below regulatory limits.

The two types certainly seem to be the AWTS of choice. RCCL adopted MBBR for its ships in line with a promise made a decade ago to improve its environmental record following massive fines for deliberate and illegal dumping in US waters, while Celebrity (also, coincidentally, convicted of illegal discharge, albeit to a much lesser degree, in 2007) has them on three vessels. Princess Cruises, on the other hand, uses MBRs built by Hamworthy on several of its ships, with Carnival subsidiaries as a whole using 13 of them, as does Regent Seven Seas on two of its vessels.

With the cruise market likely to remain in demand and no-dumping and limited discharge zones only going to increase in scope, AWTS technology is only going to grow in demand, both for newbuilds and for retrofitting to existing ships. The systems are expensive, but with the largest passenger vessels carrying the best part of 10,000 people, waste water treatment beyond the level required under less stringent MARPOL Annex IV rules will continue to be necessary.

RCCL has installed AWTS on many of its ships. The Oasis and Freedom of the Seas have biological treatment systems built by Headworks Bio and Scanship respectively

www.greenshippinginternational.com

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Emissions

Cap in hand Shipping has no choice but to find a way of meeting 2015’s tough sulphur limits, but is fuel switching too expensive and can scrubbers offer a viable alternative?

The industry has less than two years to meet the 0.1% sulphur cap for emission control areas (ECAs) and yet arguments over which approach is best to meet the cap are still ongoing. In one corner are exhaust gas scrubbing systems manufactured by companies like Finland’s Wärtsilä and Germany’s MAN B&W, and in the other is the option to switch away from burning heavy fuel oil and use more expensive distillate fuel or even, primarily for future newbuilds, LNG. Can scrubbers offer an effective, reliable and affordable solution, though? The technology is mature on land but shipboard installation is still relatively new. Wärtsilä only began operating its first pilot installation on the tanker Suula a little over four years ago, while MAN followed suit on a ferry operated by Denmark’s DFDS a year later. Wärtsilä and its subsidiary Hamworthy Krystallon have now started to win their first commercial installation contracts, with an initial order from Containerships Ltd in 2010, followed last year with fresh deals for six newbuild ships with Laker operator Algoma and one newbuild panamax LPG carrier, owned by Solvang.

So far, most orders have been for closed-loop freshwater systems, which have a self-contained supply of washwater to which caustic soda is added to neutralise sulphur before the water is treated to remove particulates, oil, and the acidic sulphur content, then pumped round the system again. Open-loop systems simply pump seawater into the stack, using natural alkalinity to neutralise sulphur oxides, rendering their operational reliability vulnerable to changes in salinity and water content, then filter it for oil and particulates before pumping it back over the side.

Closed-loop systems take up considerably less space, but require more equipment, caustic soda supply, disposal of treated waste water on shore and can suffer from added corrosion.

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However, in December last year, Wärtsilä received a repeat order to provide a hybrid exhaust gas cleaning and SCR system. The systems provide universal compliance with sulphur limits, including the North American ECA, the 2015 0.1% ECA in Europe, the worldwide 0.5% sulphur limit from 2020 and Tier III IMO NOx limits from 2016. The hybrid exhaust gas cleaning system also enables the choice between open-loop and closed-loop scrubbing to be made at any time. This means that exhaust gas cleaning using only seawater can be enabled at sea, but while manoeuvring or in port the system can be closed, re-circulating the water already within the scrubber. In addition, the SCR system, which is integrated into the engine downstream of the exhaust gas turbine, will remove up to 95% of NOx from the vessel’s emissions.

MAN B&W is working on a dry scrubber, in which exhaust gas flows through limestone granules in – in one pilot proposal, at least – a 20ft container stored on board. The sulphur reacts to form gypsum and once the limestone is used up, the whole container can then be removed to the shore and replaced. This technology, while potentially attractive to owners due to the relative ease of disposal and minimal technical requirements, is still very much in its infancy though, and all production models so far are wet systems.

Meanwhile, Singapore-based company Ecospec says it has developed a freshwater closed loop CSNOx system, which has been successfully trialled by Canada Steamship Lines. Ecospec’s. Ecospec caused something of a sensation in 2009 when it revealed its CSNOx system as the world’s first emissions abatement system capable of removing carbon dioxide (CO2) from engine emissions. The system is designed to abate three gases in one process that operates in both closed loop and freshwater conditions.

Great Lakes operator CSL has installed a CSNOx system on one of its bulk carriers, the Spruceglen. The first series of tests carried out last year were aimed primarily at optimising the efficiency of the sulphur oxide (SOx) reductions. Ecospec says: “ The system has been running for hundreds of operating hours in an economy mode with confirmed reductions of SOx. The system is also capable of reducing CO2 and Nitrogen Oxides (NOx) concurrently. Formal performance measurements of these two gases will be carried out during phase II tests to be done in 2013, once the SOx removal process has been optimised.”

www.greenshippinginternational.com

07/03/2013 11:46

Ecospec adds: “It is expected that the operating SOx only mode will cater in a cost-efficient manner to the current market conditions and surpass the IMO emission requirements. The ECOSPEC system in FW closed loop solves the logistics problems associated with chemical handling.”

While newly-built ships can be designed with scrubber systems in mind relatively easily – although concerns remain as to their function in sequence with other emissions technology like catalytic reduction installed to reduce NOx output under Marpol – it’s on retrofitting to existing vessels where most of the opposition to the technology has so far come. Interferry, whose membership is especially affected by ECAs covering entire short-sea routes, has been particularly vocal in its objections.

Interferry director of EU and IMO affairs Johan Roos has been quoted as saying that costs could be far higher than scrubber manufacturers suggested, a lack of government funding to subsidise cash-strapped operators, cargo reduction and the stability concerns of “putting 150 tonnes 40 metres up” on a ferry stack.

Fellow owners’ group Intertanko has other concerns. A spokesman for the group told Green Shipping: “What happens if your scrubber breaks down as you reach an ECA? It’s not clear whether you would be punished for breaching limits, or allowed in so long as you made repairs. There’s the running costs associated with them– running water pumps and so on. Then what do you do with the scrubbed waste products? Keep it in a holding tank and then deliver it to reception facilities on shore? But what’s in it, will you be allowed? This is toxic stuff, after all. What about demand at facilities and delays for reception?”

He also cited the extra machinery burden on ships. “Burning heavy fuel oil, we already have heaters, filters and centrifuges, a lot of stuff on board,” he said. “This is yet more equipment. You need to have someone operating it and maintaining it.

Owners looking to switch to distillate say it’s hugely more expensive, but you don’t have to have the extra gear or manpower.”

It’s no surprise that, while future newbuilds also have the option of using LNG as fuel as and when ports begin to offer it in quantity, many owners are looking at the possibility of switching to burning distillate fuel despite the cost and despite the fact that not all ports supply it.

There remain, however, concerns over availability of marine gas oil and diesel if demand greatly increases. One estimate from the giant Maersk group sees demand soaring from around the 15m tons produced per year at present to between 45m and 60m tons in 2015. Maersk itself has said it would like to see work done on changing IMO flashpoint rules to allow more commonly available inland gas oil to be used on ships, citing great technological and operational safety improvements since the flashpoint rules were introduced in 1974.

With ECAs covering most of Northern Europe and North America, fuel switching still the only option with a guarantee of meeting the cap, and still only scant in-use data showing the reliability and operational effects of scrubber systems, there have been plenty of voices in the industry saying that more development time should have been given before the cap was imposed.

Whether or not that was even an option in the teeth of the threat of unilateral sulphur capping from national and regional government, Intertanko disagrees. “How much time does one need?” the association said.

“There hasn’t been a huge amount of equipment to look at, but at some stage you’ve got to say‘this is the deadline’. There are technological solutions, and there’s still a few years to go.”

“Our position is that there’s a very simple, straightforward solution, and that’s to go back to burning cleaner fuels. Why, after all, are diesel engines called diesel engines? We only started burning heavy fuel oils in the 1970s and 80s. From an operational standpoint, it’s no contest. From a cost standpoint, you have to set the cost of fuel against the cost of the equipment, maintenance, monitoring, staffing and disposing of the waste. It’s a balance. Every owner’s looking at the balance and making their choice as to which side to come down on.”

DFDS’ Ficaria Seaways serves as a pilot testbed for MAN B&W’s first shipboard exhaust scrubber

www.greenshippinginternational.com

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CRUISE CONTROL

Setting the benchmark for reduced maintenance costs and guaranteed fuel savings.

At PPG, our knowledge in marine coatings technology is helping to increase vessel productivity and profitability with the SIGMAGLIDE® silicone fouling release system.

SIGMAGLIDE Coatings are specially formulated to provide optimal hull smoothness from the outset—for immediate fuel savings of up to 8 percent*. And, because it doesn’t contain biocides, it’s friendly to marine life. The tolerance of our coatings and the support provided by PPG’s experienced staff help our customers fit critical shipyard and ship owner schedules. Outstanding color and gloss retention as well as in-service durability reduce maintenance. Find PPG’s global marine products under the leading brand name SIGMA COATINGS®. Visit ppgpmc.com to learn how PPG innovation is helping the marine industry control costs and steer toward better performance.

The PPG logo and “Bringing innovation to the surface.” are trademarks of PPG Industries Ohio, Inc. SIGMAGLIDE and SIGMA COATINGS are registered trademarks of PPG COATINGS NEDERLAND B.V. The Pullmantur Zenith, and the above image, are properties of Pullmantur Cruises. *Statistic confirmed by customers.

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Coatings

Foul play As long as there have been ships, there have been antifoulings. How is the coatings business staying ahead of the regulatory game and meeting owners’ demand for economical solutions?

While coatings technology has advanced greatly since the days when the TBT ban came in, the industry is still looking to improve antifoulings performance without sacrificing coating endurance or ramping up costs. Not only that, but there continue to be environmental demands made on the sector, ranging from reducing VOC levels in yards during application, to low-level rumblings about the use of metal biocides of any stripe, despite copper’s greatly reduced persistency and long history of use.

There are a few main players in the sector – AkzoNobel’s International group, Sigma,and Jotun are probably the best known. Green Shipping caught up with Geir Axel Oftedahl from Norway’s Jotun to find out the current state of coatings technology, the different pressures put on manufacturers by the market, and the future environmental demands that will need to be met.

Green Shipping: There have been a swathe of advances in hull coatings technology over the past few years, from advanced polymer development to longer-lasting and lower environmental release copper-based treatments. What would you say are the main areas you’ve been looking to improve and develop your product range?

Oftedahl: Jotun has contributed to a recent submission by the Clean Shipping Coalition to MEPC63. In the submission, Clean Shipping Coalition argues that improving the hull and propeller performance of ships can lead to a 7-10% reduction in global greenhouse gas (GHG) emissions from the world fleet and that the major obstacle to realising this potential is lack of measurability. If ship owners cannot measure an environmental and/or financial return, they will find it difficult to invest in solutions that improve hull and propeller performance.

In early 2011 Jotun launched SeaQuantum X200 – a next generation antifouling paint based on a new binder technology, silyl methacrylate. Based on extensive testing and in-operation trials, Jotun expects that SeaQuantum X200 will deliver a significant improvement in hull performance vis-à-vis any other antifouling technology on the market, and thus a significant improvement in vessel energy efficiency.

SeaQuantum X200 is delivered as a part of an end-to-end hull performance solution that also includes a method for accurately measuring the impact of the antifouling on vessel energy efficiency – every second of every day over the full lifetime of the solution – as well as a cash-back, high-performance guarantee.

If shipowners cannot measure an environmental and/or financial return, they will find it difficult to invest in solutions that improve hull and propeller performance By 2008 Jotun had already recognised the importance of being able to reliably measure the impact of our antifouling on a vessel’s fuel consumption. Jotun had also concluded that the methods commonly used at that time (largely based on measurement of hull roughness) were far from adequate. It therefore allocated considerable time and resources towards developing a new and reliable method – Jotun’s www.greenshippinginternational.com

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15 Bird to Fe rat day br es ! ua ex ry pir e

Ac t ly Ea r

Move the gears of Africa’s big business.

15-18 April 2013 • Southern Sun Cape Sun Hotel, Cape Town South Africa Workshops: 15-16 April • Executive Congress & Networking: 17-18 April

Attend the Breakbulk Africa Congress to learn and network with cargo owners, carriers and forwarders that have a vested interest in building more cargo and stronger business relationships in Africa.

Large energy and infrastructure projects, a wealth of natural resources and a rising wave of foreign investment are adding to Africa’s emergence as one of the world’s top breakbulk, project cargo and heavy-lift cargo markets. The attendees at the Breakbulk Africa Congress 2013 will include logistics procurement titles from engineering & procurement companies, oil & gas companies, traditional and renewable energy companies as well as important vendors to the project cargo and breakbulk shipper community including freight forwarders, carriers, ports/terminals, ground transport, heavy air, packing and equipment companies.

Program topics that will help you move your business forward include: • Breakbulk Education Day - Entry Level • Krabbendam Heavy Lift MasterClass - Advanced Level Executive Congress: • Update on Capital Projects in West Africa • Project Cargo Case Studies • Africa’s Steel & Lumber Outlook • African Port Productivity & Infrastructure Solutions • Compliance, Piracy and more…

View event information and register now at www.breakbulkevents.com For information about sponsoring this event, please contact Alli McEntyre at amcentyre@breakbulk.com

register at breakbulkevents.com ©2013, Breakbulk Events

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Hull Performance Measurement Method – the principles of which have now been proposed as the basis for a global standard.

Being able to reliably measure the impact of the antifouling on vessel energy efficiency creates a greater impetus for innovation also within the area of the antifouling paint itself. In parallel with the development of the measurement method, Jotun finalised work on silyl methacrylate.

Being able to reliably measure the impact of the antifouling on vessel energy efficiency also makes it possible to guarantee on performance. Jotun therefore developed a set-up for performance based contracting where Jotun either document that high performance is being delivered or the customer receives a substantial share (typically 60%) of the original price of the solution back. This, in effect, results in ship owners paying for delivered performance – not the paint.

GS: How has the economic state of the shipping industry and environmental considerations like reduced carbon emission via reduced fuel use affected demand for different product types? Are you seeing owners more interested in extending their periods between dry-dockings, or looking to maximise the efficiency improvements they can get from coatings?

Oftedahl: If ship owners cannot measure any difference in performance, they find it difficult to pay more for what is claimed to be a better product or a better solution. The primary focus within antifouling has therefore long been on reducing product cost. As customers are becoming aware of the possibility of reliably measuring the impact of our antifouling on a vessel’s fuel consumption we also see an increased interest in product performance.

Norway’s Jotun is one of the major players in the maritime coatings business

The situation has been the same when it comes to decisions on docking frequency and the extent/quality of work undertaken at each docking (for example, spot blast versus full blast). Along with an increasing attention to measuring the consequence of such decisions, we expect decisions will better reflect the true cost and benefits given the situation for the vessel / fleet in question. We expect this trend will accelerate.

GS: Given that we’ve moved first away from lead, then away from tin, can you see there being any move away from copper-based antifoulings in the future, even with its reduced environmental retention? Is it likely to avoid regulation, or do you think that the future eventually lies in non-metal biocides or foulingrelease coatings?

Oftedahl: Jotun strongly believes that copper has a long-term future in marine coatings. It is approved in all countries around the world that regulate antifouling paints. Copper is a natural element and an essential nutrient. Nature knows how to deal with copper, as was not the case with the synthetic TBT. Copper based antifouling paints offer the best protection against fouling and thereby have the best environmental profile by controlling the consumption of fossil fuel, the release of GHGs and the spread of non-indigenous species.

We are investing in R&D within a number of technology areas, including foulingrelease coatings (FRCs). We also have our own FRC product range (SeaLion). Our view is that the FRC technology is not yet at a level of maturity where it offers comparable performance to the best copper based antifouling. Available data on performance associated with all main FRC brands on the market supports this, the exception being vessels in extremely fouling intensive trades where frequent cleaning cannot be avoided.

There appears to be an increasing awareness of the performance issues associated with FRCs among customers.

GS: Environmental considerations and regulations are also important in yards as well. How much of a challenge has it been to cut VOC levels in your coatings? Are we slowly moving towards 100% solids or zeroVOC paints?

Oftedahl: Reducing the VOC level in antifouling paints is technically challenging.

While VOC is an important environmental challenge for the paint industry, from an antifouling point of view the potential positive environmental influence of high performance products in terms of reduced reduced greenhouse gas emission from the shipping industry must be considered as well.

We use special binders that deliver unique self-polishing and self-smoothening effect in our antifouling paints. These are solventborne and the level is difficult to reduce without compromising on performance.

Some achievements have been done and Jotun will continue investing in R&D. However, our efforts aimed at reducing VOC in our antifouling paints will always have to be balanced with our efforts aimed at improving product performance. www.greenshippinginternational.com

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14-16 MAY 2013

The Antwerp Expo, Antwerp, Belgium Attend and exhibit at Breakbulk Europe - Europe’s largest gathering for heavy-lift, project cargo and breakbulk cargo transportation.

During this two-day conference, industry leaders will discuss today’s most pressing transportation issues, while a packed exhibition floor will offer a premier networking opportunity with the world’s leading specialized carriers, forwarders, ports, and terminals and service providers.

More than 5000 breakbulk & project cargo shippers, forwarders and service providers will attend Breakbulk Europe. What do they know that you don’t?

ATTEND The Breakbulk Europe Conference is the largest conference in Europe focused on traditional breakbulk and project cargo trade and transportation issues. This conference has nearly doubled in size each year since its inception, an indication that there is a great need for education and networking in this market. During this conference, shippers have the opportunity to learn about breakbulk and project cargo issues as they relate to European trade and to meet with specialized carriers, ports, terminals, freight forwarders, equipment companies and packers. Conference program includes education sessions as well as networking functions and an exhibit hall.

EXHIBIT If you market to a highly targeted audience of senior transportation managers, you’ll want to explore the range of opportunities and benefits available at this in-demand Breakbulk event.

Becoming a highly visible exhibitor at Breakbulk Europe is a prime opportunity to: · Elevate your company above the competition · Heighten your global brand recognition · Remind your customers of your market presence · Generate sales · Introduce new company officials · Announce a new product or service · Have face-to-face contact with potential customers · Entertain clients

TO ATTEND: Visit www.breakbulk.com for additional information and to register.

TO EXHIBIT OR SPONSOR: EUROPE: Contact Adrian van Beuningen at +32-2-808-4355 or avanbeuningen@breakbulk.com NORTH & SOUTH AMERICA: Contact Christian Thompson at +1-281-416-4672 or cthompson@breakbulk.com ASIA: Contact Gary Tang at +852.2585 6199 or gtang@breakbulk.com

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SPONSOR Sponsoring at the Breakbulk Europe Conference & Exhibition provides a strong in-person connection for companies who are interested in aggressively marketing their services to European Project, HeavyLift, RoRo and/or Traditional Breakbulk decision makers in 2013. Sponsorships range in pricing and are customized to meet the needs of companies who are looking for lead generation and/or brand awareness.

Sponsorship opportunities include: · Metal Sponsorships · Welcome Reception/ Luncheons · Golf or Bike · Equipment or Product Promotion · Registration Area · Hospitality Suites · Live Webcast on the Show Floor · Educational Sessions · Marketing Material Distribution · Program Guide & Breakbulk Magazine Advertising

Official Publication:

07/03/2013 11:46

Efficiency

Cutting out the carbon The International Maritime Organization has introduced technical regulations for reducing CO2 emissions, putting further pressure on the shipping industry. But several big players are already working hard on this behind the scenes There are two drivers for increasing the efficiency of operating vessels.

The most obvious and direct one is the need to compete in the market by keeping costs to a minimum at a time when fuel has become the biggest operating cost. The other driver is political pressure on the industry to cut carbon emissions and thus help mitigate climate change.

In July 2011, governments at the International Maritime Organization (IMO) agreed a comprehensive package of technical regulations for reducing shipping’s CO2 emissions (see chart), which entered into force in January this year. The amendments agreed to the MARPOL Convention (Annex VI) include main technical measures.

A system of energy efficiency design indexing for new ships has been brought which is similar in concept to the ratings applied to cars and electrical appliances. It is expected that IMO EEDI will lead to approximately 25-30% emission reductions by 2030 compared to “business as usual”.

Meanwhile, a template for a Ship Energy Efficiency Management Plan (SEEMP) is in now in force for all ships. The SEEMP allows companies and ships to monitor and improve performance with regard to various factors that may contribute to CO2 emissions. These include: improved voyage planning; speed management; weather routeing; optimising engine power, use of rudders and propellers; hull maintenance and use of different fuel types.

The IMO process is going ahead against the background of continuing global talks under the auspices of the UN Framework Convention on Climate Change (UNFCCC), with the latest round taking place in Doha late last year.

While the UNFCCC discussions have progressed very slowly, it is clear that shipping will be required to contribute to funding climate mitigation, through so-called Market Based Measures (MBM). The shipping industry

has been very keen to ensure that any MBMs are established under IMO supervision.

The International Chamber of Shipping, representing national shipowners’ bodies, says the development of technical measures show IMO is “eminently capable of delivering a global solution for shipping” that can be reconciled with the principle of Common but Differentiated Responsibilities (CBDR), which is central to the UNFCCC. To address CBDR, the IMO agreement includes a regulation for the promotion of technical co-operation and the transfer of technology relating to the improvement of energy efficiency of ships, and requires maritime administrations – in co-operation with IMO – to provide support directly to developing states that request technical assistance.

While the technical measures are now in force, many in the shipping industry will have assumed that the agreement reached at Doha to extend the Kyoto Protocol on climate change had little to do with shipping. It would be easy to assume that shipping is off the hook as far as cutting CO2 emissions is concerned, at least for a while.

Actually, a lot of work went on behind the scenes and the resulting recommendations are almost certainly set to be the subject of discussion at this year’s UNFCCCC Conference of the Parties (COP-19). What is likely to emerge is a way of extracting money from shipping in a levy that, in theory, will be used to combat climate change The reality is that unless the prevailing view of politicians and experts changes dramatically, the pressure on the shipping industry to cut carbon emissions can only increase.

This political fact of life has been taken on board by several of the big players in the shipping industry. In January, the world’s largest container shipping company, Maersk Line, said it had reached its 2020 target of reducing CO2 emissions by 25% from its benchmark 2007 levels, based on data verified by Lloyd’s Register.

The company’s chief operating officer, Morten Engelstoft, says: “We are proud to hit this mark eight years ahead of schedule. It is confirmation we’re on the right track. And to keep that momentum we’re raising the target to a 40% reduction in CO2 by 2020.”

Maersk quoted the generally used figures, noting that it is estimated that shipping carries 90% of globally traded goods. In line with IMO and International Chamber of Shipping thinking, Maersk notes: ‘While shipping is by far the most energy efficient way to transport cargo long distances, the contribution of CO2 to the atmosphere is 3-4 % of the global annual total.’ www.greenshippinginternational.com

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Engelstoft said: “Maersk Line is an advocate for global regulation of CO2 for shipping. Cutting CO2 is a benefit for our business, not a threat to it.”

If the current political moves to cut CO2 continue, the efforts being made by Maersk will only be the start, according to classification society Det Norske Veritas (DNV).

A new position paper from DNV Research and Innovation says that CO2 emissions from ships could count for at least 10% of global emissions in 2050, compared to 3% today. The report’s main author Magnus Strandmyr Eide says that for shipping to reach emission levels in 2050 consistent with a global 20C stabilisation, target it must reduce CO2 emissions by 60% from today’s emission level.

The report’s conclusion’s are controversial. It has identified “two plausible pathways for the 20C target for shipping”. It suggests ships will have to be either nuclear powered or use bio-fuel.

Nuclear power is being considered seriously again. That nuclear power may be appropriate for some vessels is not such a radical idea. Following the early experiments with the US’s Savannah, the German Otto Hahn and the Japanese Mutsu, the idea of widespread use of nuclear propulsion for cargo-carrying vessels was shelved a generation ago. On the other hand, the Russians have persevered with nuclear power for icebreakers. However the idea of perhaps 70,000 floating nuclear power plants sailing the high seas is likely to take some selling.

Bio-fuel could be one possible way ahead, although there are both technical and ethical problems to overcome. Do the world’s politicians really want to sacrifice even more tropical rainforest for palm oil or sugar cane production? And, of course, as the world’s population grows, every acre of land used for growing bio-fuel feedstock is one less available for growing food.

Paradoxically, there may be ways of dramatically reducing shipping’s carbon footprint, but it would be at the expense of efficiency. Physically removing CO2 from emissions is now starting to look like a realistic, albeit expensive, option.

Back in 2009, Singapore-based company Ecospec caused something of a sensation in 2009 when it revealed its CSNOx system as the world’s first emissions abatement equipment capable of removing CO2 from engine emissions.

Now it says it has developed a freshwater closed loop CSNOx system, which has been successfully trialled by Canada Steamship Lines (CSL). The Ecospec system is designed to abate three gases in one process, which operates in both closed loop and freshwater conditions.

Great Lakes operator CSL has installed a CSNOx system on one of its bulk carriers,

IMO agreement on technical regulations will reduce ships’ CO2 MARPOL Annex VI, Chapter 4 adopted July 2011

Regulations enter into force for over 90% of world fleet

EEDI requires new ships to meet agreed efficiency targets

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New ships must improve efficiency up to 20%

New ships must improve efficiency 30%

20% CO2 reduction per tonne/km (industry goal)

Ship Energy Efficiency Management Plan (SEEMP): mandatory implementation for all ships

2013

New ships must improve efficiency 10%

2015

2020

Action on carbon emissions will come sooner rather than later, with EEDI and SEEMP just part of the picture

© IMO

the Spruceglen. The first series of tests carried out last year were aimed primarily at optimising the efficiency of the sulphur oxide (SOx) reductions. Ecospec says: “The system has been running for hundreds of operating hours in an economy mode with confirmed reductions of SOx. The system is also capable of reducing CO2 and Nitrogen Oxides (NOx) concurrently.”

Ecospec adds: “It is expected that the operating SOx only mode will cater in a cost efficient manner to the current market conditions and surpass the present IMO emission requirements.’

The company’s statement says: “To cater to shipowners’ emission reduction goals, different versions of CSNOx have been developed: cSOx, a system primarily to address the SOx issue but achieve at a carbon neutral position and cNOx, a system to take care of NOx emission, all at a carbon neutral position. The system onboard the CSL vessel is another confirmation of the viability of such a system. And operating in an economy mode is a low cost solution.”

That appears to mean that the system can remove CO2, but doing so costs money.

Cutting CO2 emissions to the extent DNV says is needed will mean spending a lot of money.

Nevertheless, Ecospec offers a way to continue using heavy fuel oil for the foreseeable future. As pressure mounts on shipping that option may look increasingly attractive Ecospec is not, however, alone in aiming to take CO2 out of the emissions stream. Norwegian-based classification society Det Norske Veritas (DNV) and advanced process modelling technology provider Process Systems Enterprise (PSE) say that their joint maritime CCS (carbon capture and storage) research and development project has resulted in a concept design for on-board chemical CO2 capture.

In a statement, DNV says that the system consists of a chemical 50% CO absorption plant that separates CO2 from flue gases, a liquefaction reduction per tonne/km unit where the captured CO2 is compressed and condensed using (industry goal) a refrigerant and two storage tanks where the liquid CO2 product is temporarily stored until discharge into transmission and storage infrastructures at the next suitable port.

2050 According to DNV, the results show that the concept is technically feasible and capable of reducing ship CO2 emissions by up to 65%.

For a VLCC tanker, this could correspond to capturing more than 70,000 tonnes of CO2 per year, transforming them from emissions to a tradable product.

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Corporate Profile

RightShip: introducing an easy index Last year Cargill, Huntsman Corporation and UNIPEC UK, who together ship 350 million tonnes of commodities annually, announced that they would only charter the more energy efficient vessels as determined by RightShip’s Existing Vessel Design Index (EVDI™) and Greenhouse Gas (GHG) Emissions Rating. The announcement polarised the shipping industry and some industry associations denounced RightShip’s EVDI™ as too simplistic and an inaccurate system. Here, RightShip’s CEO, Warwick Norman, answers his critics and explains why the shipping industry needs a reliable and easy-to-understand index to measure the energy efficiency of the world’s existing fleet.

What is RightShip’s EVDI™?

RightShip’s Existing Vessel Design Index (EVDI™) provides a theoretical estimate of the amount of carbon dioxide emitted by any nominated ship, per tonne nautical mile travelled, based on the engine and vessel design characteristics when the ship was built. It is based on the same principles as the International Maritime Organization’s (IMO) Maritime Environment Protection Committee (MEPC)’s Energy Efficiency Design Index (EEDI). However, unlike the EEDI that is applied only to new ships from 1 January 2013, the EVDI™ is designed for application with existing ships.

If the IMO’s EEDI was designed for new vessels, can it be applied to existing ships?

Ship Vetting Information System (SVIS™), IHS Fairplay (IHS) database, classification societies and ship-sourced data.

Before we launched the EVDI™ in 2010, we provided an advanced preview to our owner/manager customers, seeking their validation of the data provided through IHS Fairplay and other sources. In September 2012, we also contacted over 4,600 shipowners in our database, inviting them to view and update the engine and vessel design particulars of their fleet for free through our partners at shippingefficiency. org. Since this site has been launched, the system and data has been accessed and validated over 100,000 times and this gives us confidence about the reliabilty of our information. We continue to work closely with shipowners to validate the data used for their vessels and fleet lists.

How does the GHG Emissions Rating work? Isn’t an A to G scale too simplistic?

While the A to G benchmarking scale is simple to understand, the methodology used to calculate the GHG Emissions Rating is complex. The A to G rating is based on the vessel’s EVDI™, which is then logarithmically adjusted and compared to the mean and standard deviation of vessels of a similar size and type to provide a metric called the EVDI™ Size Score. The EVDI™ Size Score (Z Score) is then used as a statistical measure of relative efficiency across peer vessels. It would be unfair to compare a 40,000 dead weight tonne tanker to a 200,000 dead weight tonne bulk

Yes. The 2007 Denmark paper that initially proposed the EEDI to IMO’s MEPC stated that it is not inconceivable that design indices or equivalent may be applied retroactively to existing ships. The IMO has now documented EEDI benchmarks and reference lines based on the existing fleet and historical data.

MANAGING eNvIroNMeNtAl rISK

How reliable is the data used in the EVDI™? And how can owners check and fix errors?

We aim to only use accurately sourced data and our calculations are consistent with A to G Greenhouse Gas Emissions Rating System those accepted by the IMO for its application of the EEDI. Vessel Sustainability Ratings EVDI™ values are calculated from data on ship characteristics that is accessible Carbon foot printing tool for ports and terminals to RightShip. The primary sources of data have been existing data within RightShip’s Third party verified data for retrofits and upgrades information on vessels SEEMP & TEEMP data capture

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GHG eMISSIoNS rAtING A B C D e F G

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Corporate Profile

carrier so to ensure we are comparing apples with apples we have grouped vessels into peer groups by size and type.

Using the EVDI™ Size Score, each vessel is benchmarked and assigned a letter from A to G, with A being the most energy efficient vessel in its peer group and G being the least energy efficient vessel in its peer group.

This simple-to-use A to G rating enables shippers to charter the most energy efficient vessel, shipowners to compare their vessels to peer vessels and ports to reward efficient vessels with reduced port fees.

What are the top rated peers?

Top rated peers allows customers to identify the five highest performing vessels based on EVDI™ Size Scores for vessels of similar size and type. Clicking on the vessels hyperlink in our SVIS system provides a performance differential between the original vessel and the most efficient vessels of a similar size and type.

Why are some new vessels rated an F or G?

Unfortunately, newer vessels are not always the most energy efficient. While the technology is available to build a more efficient vessel, this technology is not always applied to every new vessel built, or the build parameters are substantially different to its peer group of vessels.

Why do some sister ships have different ratings?

A vessel’s EVDI™ value is based on many parameters and if one of these parameters differs between a sister ship (normally dead weight tonne) they could have a different EVDI™, moving them into a different rating bracket. The base data used in the rating calculation of an individual vessel is provided in SVIS™, so the source of differences between sister ships can be checked.

Vessels do not operate at their design parameters so how can an index based on a vessel’s design particulars be a valid method of measuring efficiency?

A vessel’s EVDI™ is a theoretical estimate of its energy efficiency for a given set of applied design features under a given set of assumptions. We have adopted the same assumptions used by the IMO for the EEDI, which is 75% maximum continuous rating at maximum summer draft at trial speed in calm sea conditions.

Slow steaming or eco speeds are operational measures that will not impact the performance measure calculation. While vessels operating at eco speeds typically perform more efficiently than their theoretical design, it does not enable a likefor-like comparison with other similar sized vessels. For the A to G GHG Emissions Rating framework to be meaningful, all calculations need to be in like conditions.

However, we do recognise shipowners that have invested in their vessel to improve its efficiency. Vessels that acquire eco-efficiency technologies through retrofits or upgrades are recognised through the inclusion of a plus sign (+) negative (-) adjoined to their GHG Emissions Rating. For example, a vessel that was rated D and has installed a prop boss cap fin would now be recognized as a D+ vessel. Feedback on any retrofits, upgrades, inaccuracies or inconsistent information on a vessel can be provided through RightShip’s SVIS™ portal or through shippingefficiency.org We have also had a number of existing vessels where Class Society has verified their existing data or, in some cases, have completed post-modification trials to verify the EEDI for the vessels. These data sets have also been updated into the system.

Why did RightShip develop an environmental rating?

We created the EVDI™ and GHG Emissions Rating to help our customers support their company’s sustainability objectives, while also doing our part to help to reduce the carbon footprint of the world’s fleet.

Eight RightShip customers, currently factor in the GHG Emissions Rating into their chartering selection process. These customers are major shippers and transport 10% of the world’s non-containerised cargo. While helping the environment, they are also reducing costs by using less bunkers and supporting shipowners who invest in efficiency. This is a win-win situation.

Why do we need the EVDI™ when the IMO has endorsed the EEDI for new ships and SEEMP for existing vessels?

The IMO should be commended for developing the EEDI, the first ever mandatory global greenhouse gas reduction regime for an international industry sector. However, as the EEDI came into effect from 1 January 2013, it does not address the existing world fleet of 60,000 vessels that currently emit over one billion tonnes of carbon dioxide annually. Given the typical 25-year lifecycle of a vessel, it has been estimated that less than 15% of the fleet will be subject to EEDI certification in 2020. It will take some time for any net efficiency gains to be realised.

While it is a good start, mandating a management system for the existing world fleet through the IMO’s introduction of a Ship Energy Efficiency Management Plan (SEEMP) doesn’t go far enough. A vessel is only required to calculate and incorporate its energy usage as part of a wider management system and there is no requirement to reduce emissions or calculate a vessels carbon output.

From 2020, developed economies have pledged to generate US$100bn annually to help finance climate mitigation and adaptation in developing economies through the Green Climate Fund. In June 2012, Christine Lagarde, Managing Director of the International Monetary Fund, gave a speech to the G20 countries at the United Nations Conference on Sustainable Development suggesting that US$25bn of the fund should come from international shipping.

An accompanying policy paper flagged the introduction of a carbon charge of $25 per tonne of carbon dioxide on maritime fuel as a means of raising the funds. Applying a flat tax across the shipping industry’s 80,000 vessels translates to $312,000 per vessel. This would be a huge cost to ship owners at a time when the global shipping market is severely depressed. And, while a fuel tax will raise money, it won’t do anything to meaningfully reduce carbon dioxide emissions.

Until India and China satisfy their need for commodities and their people satiate their appetite for consumer goods, the ships will keep coming. More ships equates to more emissions.

How would the EVDI™ raise $US25bn?

By using informed selection through the EVDI™ to only charter the more efficient vessels in the market, it has been estimated that US$70bn can be saved annually – this is almost three times the proposed amount that is to be raised by the IMF. By incentivising sustainability through market-based solutions and informed decisions rather than penalising emissions through a great big tax, a much bigger win for industry and the environment is achievable. www.greenshippinginternational.com

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Recycling

The scrap race IMO’s International (Hong Kong) Convention for the Safe and Environmentally Sound Recycling of Ships was adopted in 2009, but has not been ratified yet. Nevertheless, parts of the industry are pushing to implement its standards to head off criticism of scrapping practices. How much success have they had?

Build-to-scrap has long been an ideal of the industry, and for many years there have been pushes to clean up both the image and the practice of ship recycling. Pressure groups have been trying to use rules like the Basel Convention to force change on the industry and there have been unilateral moves within India and Bangladesh in particular which have either shut down beaches or heavily restricted recycling activity.

The IMO’s Hong Kong Convention on Recycling may not have been ratified yet, but it’s the industry’s best hope of setting a global standard in place and various parties are already angling for a switch to the new practices even if they’re not yet legally mandated.

In 2011, the International Chamber of Shipping distributed thousands of copies of ship recycling guidelines designed to encourage owners to adopt the improved safety and environmental standards the Hong Kong Convention would mandate. The results have been promising, according to the ICS. “The response from owners has varied, but generally we a seeing an upward trend in owners who are attempting to apply the appropriate requirements of the Convention, and seeking to ensure that their vessels are recycled in a safe and environmentally sound way,” the ICS’ ship recycling lead and senior adviser on trade and the environment John Stawpert said last year. “The most obvious indicator of this is the increasing development and use of inventories of hazardous materials.

Ship recyclers are responding to the Convention and the continued attention on their industry, improvements are reported in the yards, and projects are beginning which will assist this process.”

“All in all, despite the obvious obstacles to implementation of an instrument prior to its entry into force, the signs are encouraging that industry is moving towards the

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standard established by Hong Kong and that that standard is a commercially viable one,” he noted The commercial side is, of course, an important one. The scrap steel market has been good for a long time leading into this spring, but there was a downward slide in prices last year. The demand for scrapping has been high throughout the freight market’s doldrums and while space at the better yards might be at more of a premium as beaching finally comes to an end, Stawpert doesn’t see either a weak market or yard demands being an issue.

“With what look sets to be a boom for recyclers in the coming years, with a great deal of tonnage destined for recycling, it would seem the opportune time to reinvest profits in safe and environmentally sound practices and infrastructure so as to get ahead of the game in terms of compliance with Hong Kong,” he said. “I haven’t seen anything from the recyclers as yet to suggest that they will not be able to handle the high level of scrapping although the surge will inevitably result in a drop in the price paid per ldt.”

While the shipping world has broadly welcomed the Hong Kong Convention, both it and the ship recycling industry have been under pressure for many years from activist groups insisting that ships are bound under the Basel Convention. While legal challenges have generally failed, organisations like the Basel Action Network continue to oppose Hong Kong. Stawpert doesn’t see such opposition gaining any foothold except in terms of the hazardous waste inventories of ships.

The Basel Convention organisation itself acknowledges that “given the global nature of the shipping industry and the practices associated with sending end-of-life ships for recycling, there has been difficulty in applying the provisions of the Basel Convention to ship recycling”. It says that parties to the convention have recognised that Basel controls may often be circumvented for ships going for recycling. In 2004, they decided that, while ships may become waste as defined in Article 2 of the Basel Convention, IMO should continue work aimed at the establishment of mandatory requirements to ensure the environmentally sound management of ship dismantling, which ultimately led to the Hong Kong Convention.

The IMO Convention was welcomed by the parties to the Basel Convention, but they also decided to “continue to assist countries to apply the Basel Convention as it

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relates to ships (decision BC-10/17 on Environmentally sound dismantling of ships)”.

Stawpert noted: “The Basel Convention never worked in the context of ship recycling, as was shown when attempts were made to apply it to ships being sold for recycling. It does, however, have obvious applications with respect to waste stream management and waste handling downstream, and encouragingly consideration is being given to this connection to Hong Kong. As things now stand we are in a position where the vast majority of players acknowledge the primacy of Hong Kong in the context of ship recycling, and are looking at how to apply its terms as quickly as possible.”

likely that existing capacity will move to meet the terms of the Convention during the interim period and the regime will therefore remain commercially viable. As such – and taking into account the severe implications for anyone found to be operating in contravention of the Convention after its entry into force – the likelihood of such a scenario seems remote.”

That should be good news, then, for all concerned. If commercial viability of the better practice outlined under Hong Kong can be established even before the convention is ratified, let alone in force, this major shift in industry practice could be a relatively trouble-free one.

However, just as hopes were rising that the entry-into-force requirements of the But why, with such broad industry support, are we still waiting IMO Convention might soon be met, a major complication arose. The European Union for ratification? started moving towards its own regulation on ship recycling.

“Ratifying treaties into national law is an often laborious process, even where only In early February, ICS put out a statement saying that it believes that the EU single government ministries are involved,” Stawpert said. “When one considers the regulation being considered by the EU Parliament risks completely undermining the numbers of interested ministries and authorities commonly involved in the governHong Kong Convention. ance of ship recycling, it doesn’t seem surprising that entry into force is taking some The EU proposals include a fund to which EU ship operators would have to pay in time, and even then, in the context of other Conventions such as AFS and the Balorder to ensure that their ships are recycled in accordance with EU standards, rather last Water Convention, the current time scale is not out of the ordinary. What is very than those already agreed by governments at IMO. clearly evident is the engagement of both governments and industry in the Hong The ICS clearly detected a degree of European protectionism in the proposals and Kong process prior to its entry into force and that can only be encouraging.” noted: “The ulterior motive of the European Parliament seems to be a wish to create Some in the industry and outside suggested in the build-up to the Convention’s work for ship recycling facilities in Europe.” agreement that the added expense of maintaining hazardous materials manifests, It added that the IMO Convention was adopted to address legitimate concerns cleaning ships going for recycling and meeting all the other demands put in place about environmental and working conditions in ship recycling yards which for the under Hong Kong could mean that unscrupulous owners unwilling to face the exmost part are located in Asia. tra expense and trouble involved in disposal might seek to sell under the enforce“If the EU Regulation goes ahead in its current form, it is very hard to see how the ment radar, creating a black market for scrap tonnage, driving the problem of poor IMO Convention can ever enter into force.” said ICS Chairman, Masamichi Morooka. environmental and worker safety from southern Asia to Africa in particular. Stawpert, “As well as damaging the EU registered fleet, undermining the Hong Kong though, doesn’t think this is very likely.

Convention will do little to help workers in the recycling yards in developing “The Convention specifically includes a no-more-favourable-treatment clause nations who will continue to be engaged in dismantling the majority of the which gives a level of control over such eventualities,” he said. “Furthermore, it seems world’s redundant ships, and whose workload is already increasing in view of the chronic overcapacity that exists throughout the shipping industry.” said Morooka.

“It must be hoped that the governments of Beach scrapping scenes like this, in Galdani, Pakistan, EU Member States, which are signatories to are what the industry is hoping to move away from the Hong Kong Convention, will start to see under pressure from NGOs and governments alike sense and stop these damaging proposals before it is too late.”

Speaking in mid-February, Stawpert told Green Shipping that the Hong Kong Convention was the only realistic option.

He also noted that exactly what would come out of Europe was uncertain and that rather ideas were being pursued by the Council, the EU Parliament and the Green Rapporteur.

He also said that some EU officials were taking criticisms of the proposals for an EU Regulation seriously and looking to modify them.

In addition, it seems likely that the major EU shipowning counties, who supported the Hong Kong Convention, would not be happy to see the IMO Convention undermined.

However, the EU move has probably significantly set back the entry-into-force of the Hong Kong Convention. Those big ship recycling countries © Tomás Halda who were moving towards ratification could well hold back a bit longer while the politics are played out at Brussels.

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Corporate Profile

GMS: creating a green path in the ship recycling industry

Through the Hong Kong Convention, the IMO has developed a set of guidelines that are explicitly geared towards improving the ship recycling industry. These guidelines are the first of their kind to be specifically aimed at increasing safety and environmental quality standards throughout this niche industry. These commonly accepted practices have afforded recyclers the ability to recognise and understand the process that has to be followed in order to conduct safe and environmentally sound ship recycling. It also enables shipowners to practice their corporate social responsibility (CSR) objectives when selling ships for recycling.

The GMS “green” recycling team works vigorously to ensure compliance of not only local and international regulations, but also of rules and standards established under the Hong Kong Convention. GMS has created a proprietary list of ship recycling facilities worldwide that recycle ships in accordance with the requirements of the Hong Kong Convention and more.

The ship recycling process is co-ordinated via exclusive local agents of GMS. GMS monitors the recycling procedures and provides sellers with a ship recycling report, which describes in detail all aspects of the recycling process for each specific vessel.

GMS-GSRP

The GMS Green Ship Recycling Programme has been very well received by major owners who believe in exercising best practices and making CSR a strong priority.

Regrettably, green ship recycling options have been employed by only a handful of owners. For example, even though in 2012 the ship recycling industry reached a new milestone by recycling about 59 million DWT, less than 2% of this capacity was recycled within “green terms” .

As an environmentally conscious company, we hope to see a greater interest from owners for green ship recycling. Japanese shipowners are at the forefront of this positive trend. At GMS, we encourage the rest of the world to follow their example and implement responsible green recycling initiatives – now available from GMS at a fraction of the cost.

GMS is the most quality conscious cash buyer for “green recycling” projects. The company has developed a Green Ship Recycling Programme (GSRP) that provides shipowners with a one-stop solution for their green ship recycling needs.

The GMS-GSRP process provides sellers with an option to conduct an Inventory of Hazardous Materials (IHM), vetting of yards and the development of a ship recycling plan. Through well-established relationships and exclusivity agreements with responsible ship recycling facilities worldwide, GMS carefully chooses the right ISO and OHSAS certified yard for the recycling of each vessel. It is mandatory under the GMS programme that the facility holds ISO 9001, ISO 14001, ISO 3000 and OHSAS 18001 certification.

GMS-GL programme

Another green option that GMS has developed is the GMS-GL programme, which is an alternative to the GMS-GSRP. This programme has been developed in collaboration with the world-renowned IACS Classification Society, Germanischer Lloyd (GL).

The GMS-GL programme follows the same basic tasks outlined in the GMS-GSRP, however, it is carried out under the supervision of GL inspectors.

GL monitors the recycling procedures and makes relevant recommendations for improvements along the way. In addition, GL certifies the SRP and other relevant processes that are necessary for green ship recycling. GL also produces regular reports for the client.

Response from the industry

Vagelis Chatzigiannis, Amit Malhotra and Evan Sproviero of GMS with several yard workers during a recent visit to an Alang recycling facility

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Principal sponsor

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FORUM PROGRAMME OUTLINE Opening. ShipOwnerS’ priOritieS when Scrapping.

After a record year for scrapping, how are environmental concerns and market dynamics shaping the business? Are shipowners getting serious about CSR? What concrete steps are being taken at improving ship recycling? Ship recyclers and cash buyers are offering ‘green’ recycling solutions to environmentally conscious shipowners at an extra cost. Can you be sure the extra cost is for a truly environmentally and ethically responsible solution, or is ‘green ship recycling’ simply a marketing exercise? How can shipowners choose their ‘green’ ship recycling service?

KeynOte . game-changer frOm BruSSelS? New legislation from Brussels – is Europe tying itself up in knots? Will EU deliver a game changer or plus ça change? If prices paid for steel in India and China maintain parity, then will the changes herald a new dawn for Chinese ship recycling and the death knell for beaching? Are proposals to fund green recycling from port levies pie in the sky or the way forward? Is the European Parliament proposal to ban beaching a huge step forward or ultimately counter-productive?

hard talK While pressure groups and bureaucrats continue to battle, the number of ships sent to the beach has reached a new all-time record high. Are we failing the ship breaking workforce or saving it from hardship? What is the truth about global ship recycling capacity? Is it realistic that the US, Mexico and Canada replace the volume of ships currently beached? cOmmercial realitieS With cash buyers hiring in-house brokers, are the traditional commercial lines becoming blurred and what does it mean for shipowners going forward?

How is the role of the traditional shipbroker changing and how are they reacting to the new reality? Is the change being supported by shipowners?

What are the risks and pitfalls for shipowners dealing with a cash buyer direct? How will disputes be handled? Is enough attention being given to compliance, knowing your customer and anti-money laundering checks? Is the new model sustainable in the long term? Will the continued emergence of breakers acting as cash buyers change the commercial landscape still further?

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info@tradewindsevents.com 07/03/2013 11:46

Fuel

Fuel for thought As the new 0.1% sulphur standard looms ever nearer, shipowners are examining what it will mean for them – and what they will need to do. Is LNG the answer?

In 2015, bunkers used in the European and North sulphur emission control areas (SECAs) will need to meet the new 0.1% sulphur standard.

Owners will face a stark choice. Owners of almost all existing ships will have to either use very expensive distillate fuel or fit scrubbers so that they can continue to use residual fuel.

At last November’s IBIA Convention in Dubai, delegates heard from a number of of speakers that tboth owners and suppliers were holding off from preparing for, initially, the 0.1% sulphur limit in ECAs in 2015 and, subsequently, the 2020 or 2025 global cap.

Henrik Zederkof, CEO of Dan Bunkering, said it was a classic “chicken and and egg situation”. He also cautioned that the situation as the impending changes came in would be different from the experience of doing down to 1.0% in the ECAs. He said the big difference is that 1.0% residual fuel exists, 0.1% does not.

Ricardo Castillo, a consultant with Purvin & Gertz, said that there was uncertainty over what would happen in 2015, but there would be “plenty of distillate at a price”.

He described how refineries were closing down in Europe and fuel oil might have to be transported between regions.

Jim Nicholson, vice president Asia for Argus Media, gave a presentation on the LNG market. He said the LNG bunker market would develop slowly. He expected that by 2025 only 3% to 8% of LNG sales would be as bunkers. He said: “The LNG market is not excited by the prospect of bunker sales.”

IBIA board member Robin Meech, managing director Marine & Energy, spoke on the theme: “Will there be sufficient lower sulphur fuel without scrubber and LNG?”.

His short answer was: “No.” His longer conclusion was that there was a strong case to reassess the global cap.

The political reality is, however, that there will be no such re-assessment. It is against that background that there has been a surge in interest in using LNG as a fuel.

It is widely seen as a greener alternative to heavy fuel oil and distillate.

At September’s International Chamber of Shipping conference, the managing director of the Finnish Shipowners’ Association, Olof Widen, raised the possibility that measures to reduce the sulphur content of fuel could raise the costs of transporting goods around the world so much that globalisation went into reverse. He gave a pessimistic view of the effects of increasingly strict sulphur regulations.

He made the point in a speech on “Compliance with Low Sulphur Fuel – problems in the Baltic and North Sea ECAs”. He observed that while bunkers have been a low value by-product, in 2015 there could be strong competition for light products between shipping and road transport.

He asked if there was any move to converting refineries for distillates production or for heavy fuel desulphurisation installations? The answer was no.

He said that ensuring the global availability of 0.5% sulphur fuel in 2020/2025 seemed to be the oil industry’s main concern because of the magnitude of volume and investments required. He noted that estimates of the amount required in 2020/2025 range from 380m to 400m tonnes.

“

In 2015, there could be strong competition for light products between shipping and road transport

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The M/S Viking Grace is the first passenger ship of this size to feature dual fuel propulsion

The order includes the engineering, delivery and commissioning of 2 FMB-VM auxiliary boilers fitted with SKVG 50 burners 4 exhaust gas economizers 1 HFO supply module 1 MGO supply module 2 gas valve units installed in ventilated housings 1 fail-safe PLC control system (se @ vis type)

ALL ABOARD FOR ENVIRONMENTAL PROTECTION sc er t ru he bb a er ll n sy ew st em SA fo ACK rH E FO LM bo B ile rs .+

The new cruise ferry M/S Viking Grace can carry around 2.800 passengers and is the first vessel of this size to feature dual fuel propulsion. Its engines run on heavy fuel oil (HFO), marine diesel oil (MDO), marine gas oil (MGO) and natural gas (LNG).

As a result, the ferry:

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– is free from dependency on the cost of individual fuels

– can vastly reduce SOx, NOx and CO2 emissions, thereby ensuring long-term compliance with emissions regulations

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++ +

Di

sc

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SAACKE supplied the boiler systems including the SKVG burners and the exhaust gas economizers.

The burners run on heavy fuel oil (HFO), marine gas oil (MGO) and – for the first time in the world on a passenger ship of this size – on natural gas (LNG) too. Operating as a system supplier, SAACKE has been producing its own marine boilers since 1999.

04.12.12 11:46 09:46 07/03/2013

LR’s head of marine business development Hector Sewell said: “The obstacles to the adoption of LNG as a marine fuel are practical factors, but they are not technical. They are commercial. Establishing safe, reliable global LNG bunkering capability is feasible. But it will require considerable investment and risk management, and it will have to cover significant operational costs to challenge existing fuel-oil delivery systems.”

For the study, Ajala built a dynamic demand model that was rigorously tested and validated with key stakeholders, including shipowners, ports and engine manufacturers. She said: “We used a model based on LNG supply, trade routes, ship-type fuel consumption, port locations and bunkering demand, as well as shipowner and port surveys. We then applied three demand and pricedriven scenarios.

“What we found was that the likelihood of global LNG bunkering facilities being established will depend on high demand for LNG fuel on deep-sea trades, which will be driven by the price of LNG relative to current and future alternatives.

“Excluding smaller ferries and local trades where there are local market, fiscal and regulatory drivers – such as in parts of the Baltic and Norwegian shelf – it was the container-ship and cruise-ship markets that were the most likely to adopt LNG. This is because of their relatively high energy requirements, the demands of customers in these two sectors, their regular trading patterns and the time those ships spend in emission-control areas.”

Sewell said that what was “perhaps most interesting was the way that working on the report also had been a catalyst for a broader understanding of how many alternative fuels might be adopted by the shipping industry”.

He added. “We needed to develop an approach that would help us to get a clear sense of what LNG-as-fuel might mean for our clients.

“We have the in-depth capability to handle the technology and the risk issues associated with gas, but we wanted to be able to help our clients understand what will be driving industry adoption. We were most interested in the deepsea trades as these are responsible for most of the world’s tonnage, emissions and fuel bills.”

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Widen’s main concern, however, was the impact of the 1 January 2015 reduction of the ECA sulphur limit, from 1.0% to 0.10%. He ran through the alternatives open to owners, non of which were attractive. Changing fuel from fuel oil to diesel would be expensive. The option of switching to LNG was limited by a lack of bunkering infrastructure. The of use of bio fuel was possibility, but availability was “very marginal”. Widens was also not optimistic about exhaust gas cleaning, noting that ongoing pilot projects with scrubber installations were having problems, especially regarding wash water in the brackish waters of the Baltic.

Based on this downbeat assessment, Widens said that ships complying with the new regulations will have an interesting market situation in the ECA:s from 2015 and beyond. He then asked, and left open, three questions: Will ships trading in the North European ECA:s 2015-2020 have an advantage on the global market when the 0.5% is coming into force? Will the price difference between diesel and fuel oil diminish in 2015-2020? Will there be a reversed globalisation after 2020?

Global acceptance of LNG as a marine fuel will depend on pricing, according to a Lloyd’s Register (LR) study, released last autumn. LR’s 2011-12 study on LNG bunkering and newbuilding demand for deep-sea shipping took 12 months of research and analysis. It also concluded some owners would be wise to consider fuel flexibility.

The study’s base-case scenario predicted that by 2025 there could be 653 deepsea, LNG-fuelled ships in service, consuming 24 million tonnes of LNG annually.

These ships are most likely to be containerships, cruise vessels or oil tankers.

When the study modelled relatively cheap LNG – for example, 25% lower than current market prices – the projected number of LNG-fuelled ships rose to approximately 1,960 units in 2025. If the cost of LNG increased 25% against current prices, the model found that hardly any new LNG-powered tonnage would hit the water.

LR’s senior market analyst, Latifat Ajala, observed: “The difficulty for those looking to make decisions is that forecasting energy prices has always been a dangerous business. For shipowners looking to make these decisions, flexibility may be the key. Choosing engines that can burn both gas and fuel oil, or that can be converted, may be one way to manage the regulatory and commercial issues involved with fuel choices.”

12 09:46

Lloyd’s Register has given approval in principle to the new Clean Sky bulk carrier design incorporating an LNG-as-fuel system. Cosco, shipowner Golden Union and LR say at they started the project in June 2011 to investigate the potential to develop a commercially viable bulk carrier design based on an existing Cosco conventional design, but employing gas powered propulsion systems.The Clean Sky design builds in flexibility by enabling owners to choose dual, or tri-fuel engines able to burn, heavy fuel oil (HFO) or diesel, as well as LNG

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Classification

Class acts Some of the larger classification societies are very involved in environmental projects – all taking a different approach to greener shipping The increasing focus on environmental issues has meant a lot more work for the classification societies. Much of this, for example verifying Energy Efficiency Design Index (EEDI) Ship Energy Efficiency Management Plan (SEEMP) implementation, comes within the traditional inspection and verification roles that the societies have always undertaken. Some of the big classification societies are, however, very involved in environmental projects, but their approaches differ.

US-based American Bureau of Shipping (ABS) recently formed an Operational and Environmental Performance department. ABS President and CEO Christopher Wiernicki explained: “The shipping industry continues to deal with a weak and challenging market. Vessels and assets have to be designed and operated to achieve optimal performance throughout their entire life cycle. ABS recognises that designers, builders, owners and operators in the marine and offshore industries face a challenging combination of increasing regulatory requirements and operational cost pressures. This department is a commitment to our clients that we will assist them in meeting these challenges.”

According to ABS, the technical capabilities of the Operational and Environmental Performance team will be a significant resource to clients needing to assess the energy efficiency and fuel consumption of new and existing vessel designs. In addition to concentrating on optimising vessel performance, the team will support the ongoing efforts of the existing Environmental Solutions Group to address changing requirements for ballast water, biofouling and air emissions, as well as emerging issues surrounding LNG as fuel.

Norwegian-based classification society Det Norske Veritas has been prominent in the development of LNG as a fuel. For example, it is assisting the largest US

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domestic ferry operator, Washington State Ferries (WSF), explore the possibility of switching to LNG. Kenneth Vareide, Director of DNV’s maritime operations in North America, said: “LNG as a fuel is a promising but new technology. To ensure that the safety, security and operational challenges of such a move are handled in a responsible manner, Washington State Ferries has partnered with DNV, a risk management company with extensive experience of LNG-fuelled ships and the infrastructure they demand.”

DNV claims to have taken the leading role in making LNG as a fuel safe and viable. It says that 35 out of 37 LNG fuelled vessels in the world, including the very first in 2000, have been built to DNV’s standards. Of these, 16 are car/passenger ferries. The classification society says: “LNG technology can make a big difference quickly when it comes to reducing harmful emissions, particularly for short-sea shipping,” Late last year, DNV and its German counterpart Germanischer Lloyd (GL) announced that they were to merge. A few weeks earlier the chairman of GL’s executive board, Erik Van Der Noordaa, said that new ships had to be “safer, smarter and greener”. He noted that shipping and its related industries are going through difficult times. “The cost of fuel,” he said, “is destroying companies’ business models.”

He said that there would, however, be a need to build much more fuel efficient ships. Technically, he thought that achieving 10% fuel savings would be relatively easy for containerships, but meeting longer term 20% reductions would be more difficult. With other types of vessel, such as bulk carriers and tankers, where the speed reduction option is not available big energy saving would be harder to achieve. In container shipping, he said, there was a clear trend towards more fuel-efficient ships with lower speeds, smaller engines and more hydrodynamically efficient hulls.

Lloyd’s Register (LR) has generally adopted a much more cautious approach to LNG than DNV, but nevertheless is involved in LNG projects. It recently gave approval in principle (AIP) to the new Clean Sky bulk carrier design incorporating an LNG-as-fuel system. The Clean Sky design, developed in conjunction with Cosco Shipyard and shipowner Golden Union, builds in flexibility by enabling owners to choose dual, or tri-fuel engines able to burn, heavy fuel oil (HFO) or

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Bureau Veritas has issued the first of its new voluntary SEEMP notations to the 1,500-passenger and 500-car cruise ferry Cap Finistère

diesel, as well as LNG. Nick Brown, LR’s Area General Manager and Marine Manager, Greater China, said : “This news moves the industry far beyond the concept stage.” He added that a Clean Sky ship could be built this year.

Meanwhile, LR also announced that it is to provide independent verification of data for Greek-based maritime environmental consultant Carbon Positive’s Programme for Ships. LR will verify at a limited level of assurance data and calculations reported during the first two phases of the programme: “Measurement” – determining the baseline and creating a carbon management strategy and “Reduction” – developing a Ship Energy Efficiency Management Plan (SEEMP) at the same time as monitoring the effectiveness of the energy efficiency improvement plans.

LR’s Stavros Meidanis said: “Independent verification of the data and calculations reported can add value to the CPPS programme members and the shipping industry as a whole. We are committed to ensuring transparency on measurement and monitoring of carbon emissions within best practice parameters, which is critical to the shipping industry at a time when further regulation is looming and sustainability becomes ever more fundamental to commercial success.”

Recently, NASDAQ-listed global shipping company Star Bulk was awarded the first Certificate of Measurement from the Carbon Positive Programme for Ships (CPPS) after successfully monitoring its emissions for 12 months.

In January, French-based Bureau Veritas (BV) issued the first of its new voluntary SEEMP notations to the 1,500-passenger and 500-car cruise ferry Cap Finistère, operated by France’s Brittany Ferries. Higher efficiency, lower costs and less environmental impact are all benefits for Brittany Ferries and for everyone in the transport chain, according to BV. “Proactive ship owners like Brittany Ferries are voluntarily investing in ecofriendly technologies and operational practices,” said Martial Claudepierre, Marine Environmental Leader, Bureau Veritas. “Recognising those efforts and investments in the market place is vital to encouraging more widespread adoption of energy saving and CO2 emission reduction practices.”

Bureau Veritas introduced the SEEMP Notation scheme in July 2012. It covers a wide variety of ship types and is a powerful tool for creating meaningful energy management measures on new or existing ships, as well as helping owners target green investment effectively. “This notation demonstrates to authorities, Port State Control and other stakeholders that the development and implementation of the SEEMP complies with the requirements of the IMO Guidelines,” noted Claudepierre.

Similarly, Italian-based RINA has launched a co-ordinated range of services intended to assist shipowners to save fuel and reduce emissions, including compliance with new IMO requirements. There are seven different elements to the services, which can be adopted individually or as a complete package.

The seven services are: auditing to ISO 14001 Environmental Management certification; auditing for ISO 50001 Energy Management Certification; development of the IMO SEEMP; verification of IMO-mandated EEDI requirements; Energy Saving and Energy Conservation Analysis; Fuel Consumption Data Analysis and Decision Support Solutions and tailored energy saving training courses.

RINA said that its auditing services to ISO14001 and 50001 help owners to structure their companies to manage energy efficiently overall. It added that the SEEMP development and implementation and the EEDI verification are aimed at both compliance with IMO requirements and helping to ensure that the compliance results in savings rather than being a cost.

Japan’s ClassNK is also involved in a wide range of verification activities, as well as a number of development projects. It has issued its first certification for SEEMP. They are for Japanese shipowner NYK Line and Turkish ship management company Semih Sohtorik Management & Agency.

ClassNK has begun offering a voluntary SEEMP certification programme, and the certification of NYK Line and SSMA is part of that. It said in statement that, as part of the certification process, it carried out a thorough examination of both company’s SEEMPs and verified that the contents and procedures for improving the energy efficiency of their ships included in their plans were in accordance with the IMO Guidelines. www.greenshippinginternational.com

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07/03/2013 11:47

Ports

Clearing the air Ports around the world are under pressure to safeguard their local environments and, particularly, to reduce sulphur dioxide and soot emissions

The Port of Los Angeles put into operation a clean air programme last year based on the Environmental Ship Index (ESI). It is said to the first time the ESI, developed through the International Association of Ports & Harbors’ World Ports Climate Initiative, has been used in North America and the Pacific Rim. Six shipping lines became the inaugural participants in the programme. Evergreen, Hamburg Süd North America, Inc., Hapag-Lloyd AG, Maersk Line, Nippon Yusen Kaisha and Yang Ming have registered for the global programme and have started receiving incentives.

“We applaud these early adopters of the ESI programme and encourage not only other carriers to participate, but also other ports to join this global port programme,” said Port Executive Director Geraldine Knatz. She added: “Growing participation among ports worldwide will increase the level of incentives available to ship operators that invest in and deploy the cleanest, most efficient and environmentally friendly fleets.”

The web-based ESI programme, already underway at 14 European ports, offers immediate and significant clean air benefits by rewarding vessel operators for voluntary engine, fuel and technology enhancements that reduce emissions from ships beyond the regulatory environmental standards set by the International Maritime Organization (IMO).

The Port of Los Angeles developed its ESI with input from the Pacific Merchant Shipping Association and other stakeholders. Its programme also conforms to the San Pedro Bay Clean Ports Air Action Plan, which sets specific bay-wide targets for near-term pollution reduction through 2014 and long-term objectives through 2023.

Shipowners can earn an incentive ranging from $250 to $5,250 per ship call by meeting one or all of the following three requirements: 1. Scoring 30 or more ESI points based on a vessel’s engine specifications and emissions certification; use of low sulphur fuel, plug-in ready onboard shore power technology, and a Ship Energy Efficiency Management Plan (SEEMP).

2. Deploying ships with a Tier II or Tier III engine to the Port of Los Angeles.

3. Participating in a demonstration programme to test and improve vessel emission reduction technology.

For the first sixth months of the programme, ships could qualify for the first incentive with a score of 25 points. The lower introductory threshold was intended to encourage early participation and help operators familiarise themselves with the ESI website and reporting requirements.

Initially, up to 30% of the ships calling at the port were expected to qualify for the ESI incentives. The port said that 30% participation would cut diesel particulate

Growing participation among ports worldwide will increase the level of incentives available to ship operators that invest in and deploy the cleanest fleets

www.greenshippinginternational.com

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matter (DPM) emissions by 16 tons within the first year and reduce emissions of other primary pollutants. The port has committed $450,000 to start the programme.

Meanwhile the largest port in Europe, the Port of Rotterdam, and the largest port in Scandinavia, the Port of Gothenburg, have entered a new alliance. The aim is to speed up the establishment of liquefied natural gas as a maritime fuel as both located within the in northern Europe Emissions Control Area (ECA).

A memorandum of understanding between the Port of Rotterdam and the Port of Gothenburg is intended to assist the process of putting LNG bunkering infrastructure in place before stricter rules governing sulphur in maritime fuel are due to be introduced in 2015.

“We see LNG as an important opportunity for the maritime industry to comply with the sulphur directive in 2015. The use of LNG as a fuel fits in our policy to become the most sustainable port. We consider the Port of Gothenburg as a strong partner in the Scandinavian market for this issue”, said Rotterdam Port Authority’s chief operating officer Ronald Paul.

“We are extremely pleased that the largest port in Europe has joined forces with us in this important issue. Working together, we will have a very strong offering to the market,” said Port of Gothenburg’s chief executive Magnus Kårestedt.

A joint statement said that LNG offers substantial environmental benefits, with sulphur and particle emissions reduced to almost zero, nitrogen oxide emissions by 85-90% and net greenhouse gases by 15-2%.

It adds that, to achieve the LNG target at both ports by 2015, rapid development is required in a number of areas. The necessary infrastructure at the ports needs to be constructed and rules will need to be drafted for handling LNG. It is also vital that the two ports promote awareness of LNG as a maritime fuel.

In the UK, PD Ports is one of the first to achieve the ISO 14001 Environmental Management Systems (EMS) certification. It was guided and advised by international environmental consultancy ENVIRON, which provided support throughout the implementation process, starting with a gap analysis, drafting procedures, training employees and undertaking legal compliance evaluations.

PD Ports’ human resources director Russ McCallion said: “For about 18 months we have been working hard on achieving formal accreditation for our environmental eystem to ISO 14001 standards. This is an outstanding achievement for PD Ports and huge credit goes to our team of environmental champions, who have all done an excellent job in making this objective real and deliverable. This, of course, is only the start of our programme to achieve and maintain excellence in the management of our environmental obligations.”

Air quality has long been an issue in the China’s Pearl River Delta area. Now the Hong Kong Special Administrative Region plans to introduce legislation to make switching to lower sulphur fuel compulsory in Hong Kong port. It also intends to step up its efforts with the Guangdong Provincial Government to extend fuel switching to Pearl River Delta ports.

The move has been supported by the Hong Kong Liner Shipping Association (HKLSA) and the Hong Kong Shipowners Association (HKSOA). In a joint statement, the two industry bodies note the move will build on the voluntary action already taken by the shipping industry to reduce emissions in Hong Kong under the Fair Winds Charter (FWC).

“The pioneering work to switch to low sulphur fuel in Hong Kong under the FWC shows the shipping industry’s commitment to work with government to tackle the challenges of marine emissions. We are pleased to see the Chief Executive’s support in the policy address for action to address this issue and believe that by working together, government and the shipping industry can achieve significant improvements in air quality in Hong Kong,” said HKLSA chairman Tim Smith.

HKSOA and HKLSA said that the voluntary fuel switch by 14 members of the liner shipping industry and four other shipping companies under the FWC has contributed to substantially reduced pollution in Hong Kong since the end of 2010. The shipping industry is calling for mandatory regulation of maritime emissions to provide a level playing field for all operators that is consistent with international regulation, while setting progressively tighter emissions standards.

Ports around the world are under pressure to protect the environment

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www.greenshippinginternational.com

07/03/2013 11:47

Law

Not in our backyard California has banned even treated maritime sewage discharge in its waters. With cruise ships operating on the west coast Alaskan route most affected, what does this move mean for shipping and could we see more states follow?

Cruise lines operating along the Pacific coast of North America already face some of the toughest waste treatment and emission standards in the world, but recent legal moves in California and proposals in Washington State could see things become tougher still and make more of a regulatory patchwork of the long coastline between the Mexican border and Alaska.

February last year saw new restrictions passed by the California state senate and sealed by the US Environmental Protection Agency (EPA) under the US Clean Water Act. All passenger ships (defined as any vessel with overnight accommodation for passengers, regardless of size), as well as any other vessel of 300gt or more with a waste water holding tank that has either spare capacity still to be filled or else contains sewage generated outside state waters are banned from discharging waste, sewage, sludge, oily bilge water and grey water within the state’s 3nm water limit, regardless of whether that waste has been treated or not. Previous areas of limited discharge (primarily inlets within marine reserves) are also still in effect.

Previous “no-discharge” zones established under the act have been small, localised zones of special sensitivity and this is by far the largest to be sealed in law, 1,624 nm long, 3nm wide, and surrounding all major islands and covering every tidal bay and estuary in the state. The EPA estimates it will prevent discharge of 22m of the 25m gallons of treated sewage currently pumped into the state’s coastal waters.

“By approving California’s ‘No Discharge Zone,’ EPA will prohibit more than 20 million gallons of vessel sewage from entering the state’s coastal waters,” said the EPA’s Jared Blumenfeld. “Not only will this rule help protect important marine species, it also benefits the fishing industry, marine habitats and the millions of residents and tourists who visit California beaches each year.”

The fear in Canada is that cruise vessels, in particular, will be tempted to hold on to waste until they reach waters with easier regulation and discharge everything there Under the Clean Water Act, US states may request the EPA to establish vessel sewage no-discharge zones if necessary to protect and restore water quality. In 2006, following passage of three state statutes designed to reduce the effects of vessel discharges to its waters, the State of California asked the EPA to establish the sewage discharge ban. After releasing the proposed rule in 2010, the EPA says it undertook a lengthy consultation process with the public, environmental groups, and the shipping industry before finalising the regulation. The agency has made no comment as to whether treated discharge required for safe running of a ship – engine cooling water, for instance – would breach the rules, but with the ban already in force it seems only a matter of time before a test case emerges.

Further north, Washington State’s Department of Ecology has backed proposals made by environmental pressure groups to implement a similar no-discharge rule via a change to the state’s existing memorandum of understanding (MOU) with the cruise industry on waste treatment and discharge. The MOU was agreed in 2004 after the cruise ship Norwegian Sun accidentally released 40 tonnes of sewage www.greenshippinginternational.com

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‘Very good! come back next year.’

P Nielsen, Danish Ship Finance

‘I gained a lot out of this event. most of the topics have been very interesting for my work.’ S Claussen, Imtech Marine

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Official Publication:

07/03/2013 11:47

m

From March, ships like the Carnival Splendor have had to carry their liquid waste out of California state waters

© Brian K Leadingham

into the Strait of Juan de Fuca and requires cruise ships to only discharge sewage treated with an advanced waste water treatment system, and only while travelling at 6 knots or more.

Changes to the MOU require the support of local line group the North West and Canada Cruise Association, so it’s by no means certain that a no-discharge rule will come to pass in Washington, although many cruise vessels calling at Seattle stay for less than 24 hours and a requirement to hold waste aboard – or to transfer it to shore facilities if available – is perhaps less onerous than it might appear. The MOU has been adjusted several times since being established.

What is certain is that the regulatory picture along the western coast of North America is becoming more variable and the fear in Canada – in particular – and Oregon, as the two laxer environments, will be that cruise vessels in particular will be tempted to hold on to waste until they reach waters with easier regulation and discharge everything there.

The cruise industry owners’ body the Cruise Lines International Association (CLIA) insists that environmental performance is paramount. In testimony last year to the US Senate Commerce Committee, CLIA CEO Christine Duffy said: “Our industry has a vested interest in protecting the environment, not only because it is the socially responsible thing to do, but because the very nature of our product depends on a healthy natural environment – clean oceans and beaches are essential to the cruise experience. CLIA has made great strides to become a leader in the maritime industry with responsible practices and innovations that are reducing environmental impact.”

However, there are long-standing complaints about cruise vessels emptying waste tanks, particularly of grey water, as they reach Canadian waters near Vancouver. In 2007, Celebrity Cruises’ Mercury was fined US$100,000 in the US for seven counts of illegal discharge in waters between Washington and Vancouver Island; three further charges were dropped, and remained unprosecuted because they happened across the maritime border.

Green Shipping approached the main cruise lines involved on the CaliforniaAlaska routes and invited them to describe their approaches to waste treatment and how they deal with the shifting and patchwork regulatory environment they are faced with. All declined to comment.

Under MARPOL, discharge of sewage treated with a regular marine treatment plant is allowed past 3nm from shore, or 12nm for untreated sewage.

However, in the US in particular, the dumping of treated sewage sludge from cruise vessels, whose vast passenger and crew complement make both nutrient-rich sewage sludge and food waste volume a particular concern, is highly contentious even past 3nm and sludge remains a factor for some vessels even equipped with an AWTS. How, exactly, cruise lines and other commercial operators deal with a no-discharge zone running most of the length of the US Pacific Seaboard and what effect this will have on waters not covered by the state-run ban will only emerge in time. If the zone is a success, expect other US states, and other coastal nations, to take note.

www.greenshippinginternational.com

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Insurance

Sinking funds In the event of an environmental disaster arising from a grounding of the largest generations of box ships, could the salvage and insurance industries cope?

At a Maritime London event last year, a leading maritime lawyer warned that the shipping industry could soon face its own “Deepwater Horizon moment” should one of its newest and largest container vessels become a casualty in a sensitive area. Holman Fenwick Willan partner Andrew Chamberlain suggested that a total loss or serious incident involving a giant box ship, such as those that befell the much smaller Rena or the Napoli “may well result in a complete change in the accepted liability regimes and even the traditionally accepted insurance arrangements for such large vessels”.

The 4,688 teu Napoli loss and subsequent salvage operation in the middle of a World Heritage Site is estimated to have cost upwards of US$250m. The final cost involved in the loss of the 3,351 teu Rena, which ran aground and eventually broke in two on New Zealand’s Astrolabe Reef just over a third laden, is still to be determined, but is already well clear of US$100m, with most of that cost paid for by the ship’s owner, Costamare, and insurers. The New Zealand government has already said it plans to recover the US$20m-plus it spent on clean-up and material support from its armed forces from the owner.

The problem, Chamberlain suggests, is a combination of factors. First, the global salvage industry is much reduced, with only a few major salvors with full worldwide response capability, and the amount of expertise, equipment and salvage coverage available is falling. Second, the demands involved when dealing with an incident of this type have increased – complete removal of the vessel and its entire cargo is becoming increasingly non-negotiable on the part of coastal states: not only must spilled oil be cleaned up, but so too must any containers carrying hazardous chemicals (especially tricky when, like the Rena, the initial estimate of such

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The London P&I Club’s Ian Gooch

www.greenshippinginternational.com

07/03/2013 11:47

Salvors often have to work in extremely challenging environments, but is the industry becoming too stretched?

containers falls well short of the actual number), the sea bed may need to be cleared of debris, beached cargo must be dealt with and there may be subsidiary claims from local businesses such as fishermen, the tourist industry, and so on, all seeking damages for lost revenue. And all of this under the gaze of a very aware public and, usually, numerous shore-based agencies and political departments that may or may not understand the particular difficulties involved in maritime salvage.

The Emma Maersk holds nearly five times as many containers as the Rena when full and it’s just one of many ultra-large box carriers. And unlike the liabilities arising from oil pollution, there is no compensation fund in place for chemical pollution or environmental damage arising from box cargo, not until the HNS Convention eventually gets ratified.

So can the current system of P&I insurance hold up if one of the largest generation of box ships breaks up messily in a sensitive area? Green Shipping asked Ian Gooch, chief executive of the London P&I Club’s manager A Bilbrough, for his opinion.

claims resulting from the loss of one of the new generation of giant containerships.

The big issue is whether the salvage industry has the capacity to cope with the removal of ships of that size and some members of that industry have been expressing reservations. Nevertheless, salvors have historically proved capable of developing new ideas as each generation of ships emerge bigger than their predecessors.

Green Shipping: The maritime insurance industry faces increased costs in recovery, clean-up and removal following casualties and there is more pressure on owners to cover damage done. How has this trend affected insurance cover for ships and cargo?

GS: Would a general international liability compensation scheme along the lines of the IOPC Fund for oil pollution help in such events, do you think?

Ian Gooch: It needs to be borne in mind that P&I clubs do not insure cargo, but they do insure the shipowners against their liabilities. The casualties referred to haven’t affected the breadth of coverage given by P&I clubs, because our existing policy terms were already sufficiently broad to cover the resulting claims. It is the case, however, that the expense of removing the two ships involved, as well as removing and disposing of their cargoes, has been much higher than was anticipated when the casualties originally occurred and that has had a negative effect on the cost of claims faced by the P&I industry as a whole.

GS: If one of the new breed of giant box ships listed with the club became a total or partial loss in a sensitive area, how capable do you think you are, and the system as a whole is, of handling the size of claims involved?

IG: There is no doubt in my mind that the mutual P&I insurance system and the individual clubs that comprise the industry are perfectly capable of coping with

GS: Is there anything the club offers specifically to deal with extra costs and liabilities incurred as the result of environmental impact following a casualty?

IG: It’s not so much the additional costs and liabilities resulting from major casualties that are representing new demands on clubs, but it is certainly true to say that cases with a major environmental impact give rise to serious public relations challenges for the shipowners concerned. For ourselves, we are prepared to provide members with advice on how to deal with pressures from the media and governments.

IG: Interestingly, the major proportion of P&I cost resulting from the recent containership casualties has not involved claims for compensation from third parties, but rather responsibility on the part of the shipowner, under the law, to remove potentially hazardous cargo and the wrecks of the ships concerned. Nevertheless, it is possible to conceive of a major container ship casualty giving rise to very substantial liabilities as a consequence of the spillage of hazardous cargoes. In that case it would most certainly be helpful for an international liability compensation scheme to be in place, but hopefully that will not be long coming, in the form of the HNS Convention which is in the process of being ratified by governments and should come into force before too long. That convention contains provisions that are very similar to the IOPC Fund Convention.

If P&I clubs and other insurers can absorb the costs involved in a major incident of this type, and if the HNS Convention can finally be ratified with its 2010 amendments having failed to reach the mark for 14 years prior, the weak link might remain the availability – or lack thereof – of salvors capable of handling such a mammoth task and that’s one factor impossible to predict. www.greenshippinginternational.com

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Geographical Focus

Scandinavia & Finland The region is famously environmentally-aware, and its maritime concerns are no different. We catch up with the latest developments

Even with 2015’s 0.1% sulphur cap for the Baltic fast approaching, Sweden’s port of Gothenburg has established its own voluntary fuel switch programme to encourage ships calling at the country’s second largest city to use 0.1% sulphur fuel within its approaches in return for a partial refund of the extra fuel costs drawn from a six-monthly communal pot of SEK 1.5m, allocated according to how much of the extra cost is borne by each ship to a maximum of SEK 125,000. The programme has already accepted a number of small local operators including bunker barge owners, but has now started to see some bigger names join.

Tanker operator Broström has signed up five of its vessels, all between 6,535 and 7,559 dwt, with more potentially to follow once the company is happy with the results. In doing so, it became the first major tanker owner to join the programme. The switch must be complete before reaching a line six nm west of the port entrance. Broström’s Christian Schell said: “Switching from heavy fuel oil to low sulphur diesel oil may have some owners or operators worried about the consequences for the engine systems. However, our tests have all gone well.

Based on our experience so far, we see no short-term technical obstacles to fuel-switching on other of our vessels – although each vessel will be evaluated on an individual basis.”

The same confidence in the system can be found at Broström’s parent company Maersk. In January this year, the 13,500 teu Edith Maersk made her first call at the port using low sulphur fuel and every Maersk Line vessel calling at Gothenburg is now a part of the fuel switch programme, dropping SOx emissions in the city by 12 tonnes per year. It’s the first container line to join; Gothenburg handles 65% of Sweden’s box traffic. The company said its crew followed engine manufacturers’

The current challenge for the marine and port-related industry is to develop and implement environmentally sound, cost-effective concepts to improve the environmental situation caused by air pollution and greenhouse gases guidelines when making the switch, keeping temperature changes within the power plant carefully controlled.

Maersk Line Scandinavia manager Christian Juul-Nyholm said: “The fuel switch will lead to improved health and at the same time reduce our customers’ supply chain footprint. Through the participation in this and other fuel switch programmes worldwide, Maersk Line clients can feel safe that they choose a carrier that cares for the environment and takes local health impact into consideration.”

“Maersk Line really welcomes the Port of Gothenburg fuel switch program and hopes that other Northern European ports will follow this example,” said Maersk Line’s Northern Europe operations director Nicklas Viby. “The Port of Gothenburg’s programme basically maintains a level playing field while keeping it costly for polluters to continue their behaviour and at the same time providing incentives for the ones that change behaviour and take extra costs for switching to low sulphur fuel.”

Quayside fuel use already has to be low sulphur under local law, but the port is confident that the switch on approach will make a significant difference to emission www.greenshippinginternational.com

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The port of Gothenburg has adopted a broad swathe of environmental programmes and improvements, many designed to bring ship operators on board

levels. The switch scheme is just part of a wide range of environmental initiatives at the port, not least of which is its stated aim to be completely carbon-neutral through a combination of emissions reduction and offsetting by 2015. The port recently joined the Clean North Sea Shipping project as part of its overall aim to cut air pollution and greenhouse gas emissions. “The current challenge for the marine and portrelated industry is to develop and implement environmentally sound, cost-effective concepts and practical solutions to improve the environmental and health situation caused by air pollution and greenhouse gases,” said the port’s sustainability manager Susann Dutt. The CNSS project has 18 participants from six countries and aims to reduce exhaust gas emissions by increasing awareness, sharing technical knowledge, and persuading individual stakeholders, including ports, shipping companies, cargo owners and politicians, to act.

Norway’s port of Oslo has adopted a different approach to cutting wharfside emissions. A co-operative project between Oslo Havn, Color Line, environmental foundation Bellona and Hafslund Nett will see Color Lines ships in the port have shorebased electrical power while berthed, rather than rely on power generation from their own auxiliary engines.

“We are proud to be able to contribute specifically to reduced discharge and cleaner air in Oslo. We expect that this measure can cut down discharge by 3,000 tonnes CO2 and 50 tonnes NOx each year,” said Bellona’s Frederic Hauge. “Installing a shorebased supply of electricity is something we have dreamt about for many years and it serves to show what can be achieved when Bellona joins forces with industry and public agencies. Color Line and the Port of Oslo deserve praise for their engagement and ability to get the job done.”

Color Line, Norway’s largest cruise and ferry company, signed an environmental pact with Oslo city two years ago, while the Norwegian Shipowners’ Association supports the aim of zero emission shipping. Color Line’s Helge Otto Mathisen said: “The decision to invest in shore-based electrical power is a major undertaking,

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but it is important and serves to show how vital it is to lift together when major environmental tasks are to be undertaken.”The Color Fantasy and Color Magic, which operate on the Oslo-Kiel service, are the world’s two largest cruise-ferries, .and are the first large ships in Norway to convert to shore-based electrical energy. The company had financial support from Transnova, Enova and Oslo Havn for carrying out the conversion work needed, alongside technical expertise from Hafslund Nett.

“Color Line has taken on a major environmental responsibility as the first shipowning company to use this technology in practice. Color Line has used considerable resources in order to achieve this target and is a good example for others. We aim to make transport of goods by sea still more environmentally friendly and we hope that experience from the project will make it easier for other shipowning companies to convert to shore-based electrical power,” said Oslo port director Anne Sigrid Hamran.

Bellona’s Hauge agrees. “We hope to take this project further and introduce shorebased electrical power in other ports. Bergen is high on the list – there are many ships in this port generating their own electricity and thereby polluting the environment.”

Maersk has its own emissions objectives, one of which is to push its SOx output as close to zero as possible, and Gothenburg’s is the sixth voluntary switch programme the Danish giant has signed up to. The company’s climate and environmental chief Jacob Sterling said it wasn’t just an environmental issue and that of particular concern was the impact on public health for people living close to busy ports. Last year it began using low-sulphur fuel at all ports in New Zealand, to add to California, where it first began switching fuel in 2006, Texas, Hong Kong and the US Pacific Northwest, and it aims to use switched fuel in at least 10 locations worldwide by 2015.

The group became the first third-party-verified company on Sweden’s Clean Shipping Index – itself based in Gothenburg – in December last year. The index aims to be a simple, web-based tool for large cargo owners to take environmental considerations into account, but also to make environmental demands of carriers when purchasing shipping services for their products. Some 30 major cargo companies

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The Color Magic will now use shore-based electrical power when berthed in Oslo

have signed up to the service and 45 carriers with 1,600 ships have submitted environmental performance data on their vessels.

The index covers CO2, SOx, particulate emissions, NOx, chemical products and liquid waste. While, so far, most of this data has been submitted by owners on their own vessels, the Clean Shipping Network – the cargo owner association which runs the index – has put in place guidelines for independent verification into the system. Maersk had its performance data verified by Lloyd’s Register to become the first carrier to meet the requirements.

Göran Bengtsson, chairman of the Clean Shipping Network, said: “We are happy that Maersk has taken this initiative and we believe it is a great breakthrough for the Network. If the world’s largest carrier can verify its data, there is no excuse for any other shipping company not to carry through this process. And, for certain, it is the transparent shipping companies with serious environmental ambitions that will be the winners of this business.”

“It is an absolute need to have verified environmental data in a selection process of carriers for our products,” said AkzoNobel’s Stefan Bodelind – the Dutch paint and chemical manufacturer is a member of the Clean Shipping Network. “If we can fully trust the information, it is easier to take serious environmental decisions with sometimes large economical consequences.”

Lloyd’s Register’s Peter Catchpole said: “Transparency of performance is vital and it is impossible to progress if you don’t know where you are. Lloyd’s Register is delighted by the success of the Clean Shipping Index in establishing a framework for reporting environmental and efficiency data. We hope that the availability of clearly presented, verified information on ships and shipping companies’ environment performance will increasingly result in commercial benefit for those ship operators that demonstrate ‘beyond compliance’ environmental performance.”

Maersk isn’t the only Scandinavian carrier taking aim at their gas emissions. Norway’s Wallenius Wilhelmsen Logistics has continued to cut both its CO2 and sulphur emissions. Carbon dioxide emissions were down 21% in its latest annual figures, while the company says its policy of using low sulphur fuel had saved an average of 15,100 tonnes of SO2 per year. CEO Arild Iversen said: “Our commitment to sustainability, in good times and bad, has delivered steady and strong results. This is the best way to prepare our customers for a world of increasing environmental costs and regulations.” The company also signed Singapore’s Green Pledge alongside 14 other shipping lines and class societies earlier this year.

Elsewhere in Norway, seven offshore shipping companies have linked up with class society DNV to identify energy efficiency and fuel saving initiatives for the offshore shipping industry. Energy Efficient Offshore Partners includes BOA Offshore, Eidesvik Offshore, Farstad Shipping, Gulf Offshore Norge, Havila Shipping, Siem Offshore and Solstad Offshore, with DNV as project manager. It aims to identify

© Color Line

and implement best practice solutions for energy efficiency, with the idea that synergies between energy efficiency and environmental impact will give EEOP’s partners a competitive edge.

DNV said: “Energy Efficient Offshore Partners is co-operating to create a common platform to improve the industry standard for fuel consumption and emissions from offshore supply vessels. The partnership aims to keep a leading position at the forefront of energy efficient offshore operations.”The EEOP project is targeted at existing vessels, not newbuildings, and will therefore differ from EEDI and other industrywide regulations. The project’s first phase, determining where the industry stands regarding efficiency, identifying areas for improvement and establishing best practice guidelines, should have been completed by the time this article goes to print.

Outside the field of energy efficiency, clean-up has been completed of the harbour at the Port of Tromso. Following on from a similar effort at Oslo, completed in April last year, and as part of the Norwegian government’s overall strategy to clear up its sea beds, Norway’s main northern port was the site of a massive sediment clearing exercise finished a few months ago. Decades of city sewage, marine antifoulings, and landfill run-off had built up on the floor of the Tromsoy Sound. The harbour’s berths were widened with individual mesh-sealed steel cells into which contaminated sediment dredged from the bed of the sound was poured for disposal, minimising, the port said, distance needed to take material to dispose of it safely, with a sediment basin collecting overflow. Once full, the cells were capped to provide foundations for the port’s newer and wider wharf and harbourside area. The standard set for the clean up was to make it safe to eat fish caught in the harbour, which wasn’t the case when concerns remained over metal and biological contamination of the water column.

Oslo’s project was larger, taking four years to complete, and involved covering the newly-dredged sea bed with fresh sand and building an artificial reef in the harbour to attract marine life. The clean-up removed 44,000 containers of sediment, which between them it’s claimed carried an estimated 8.5 tonnes of mercury contamination.

The port has also become the base for a novel way of clearing snow from across the city. Local firm NCC has been awarded an eight-year contract to run a barge that mixes snow with seawater to melt it in a low-energy environmentally friendly way, reducing the need for other clearing equipment across the city. It can take 500 cubic metres of snow an hour and melt 7,000 cubic metres per day. The meltwater is filtered and cleaned several times before being discharged into the sea. The service began operating in January this year and has proved highly successful.

Danish salvor and tug operator Svitzer has also been looking hard at efficiency and emissions, and the AP Moller group subsidiary has now taken delivery of the first of its ECOTug design harbour tug, operating out of Gothenburg. The design was www.greenshippinginternational.com

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developed for sensitive areas and city harbours, and is equipped with three fuelefficient for diesel-electric operation, which produce what the company says are “significantly lower” CO2 emissions compared to its forerunner S65/31 design. The tug uses SCR on its exhaust to eliminate SOx, NOx and particulate emissions systems, which virtually eliminate emissions of SOx, NOx and particulates. All on-deck machinery is electric, which reduces noise, vibrations and oil spills on deck.

Svitzer’s Danish commercial manager Allan Warlev said: “At Svitzer, we are constantly working to minimise our environmental footprint and we have developed a tugboat which is environmentally optimised in every way without compromising on performance.”

Cargo handling has been the focus for emissions-reduction drives at the Port of Helsinki. The port authority has signed a deal with the Federation of Finnish Technology Industries for a long-term field test of efficient, emission-free and noiseless fuel cell applications. The trial will run at full tilt from next year at Vuosaari Harbour Centre and will showcase the results of the fuel cells program of Tekes, the Finnish Funding Agency for Technology and Innovation, in a range of practical applications. The Harbour Centre will use a Wärtsilä 50 kW natural gas-based fuel cell power plant for producing electricity and heat, work machines for materials handling, a UPS backup power module for a telecommunications base station, and install a hydrogen refuelling station at Woikoski.

Finland’s Viking Line, meanwhile, has signed a supplier agreement with AGA Gas to provide LNG fuel for its newbuild Viking Grace, due for delivery next year.

The ship will be the Åland Islands-based company’s largest vessel and its first to be powered by LNG. Once delivered from STX Europe’s Turku yard, it will operate on the Stockholm-Åland Islands-Turku route. Viking’s CEO Mikael Backman said: “Viking Line’s and AGA’s investment in LNG represents major environmental advantages compared to traditional maritime fuel. Viking Line’s environmentally conscious investment is an important flagship for the shipping industry and a cleaner Baltic

Sea. Proximity to the LNG terminal, with flexible and reliable deliveries, as well as AGA’s knowledge of cryogenic, environmentally friendly fuel and bunkering echnology makes AGA a natural partner in this pioneering project.”

The company said that it had designed the ship so that in the event of an LNG leak, safety would not be compromised. The tanks are cooled to -150C rather than kept under high pressure and are located above deck at the rear of the ship to allow safe ventilation should it be needed, with the pipework double-mantled and the fuel monitored by a gas detection system to shut it down in the event of a leak.

AGA has an LNG terminal in Nynashamn which opened last year and will supply fuel for the vessel from there. Planning and permit work for an LNG bunker terminal at Stadsgarden in the port of Stockholm is under way.

And while cargo has been the focus for Helsinki, at Gothenburg energy port, the annual environmental award for 2011 went to waste handlers Stena Recycling. The company said that it was a sign that its long-term focus on environmental standards and quality was paying off. Local manager Glenn Wernäng said: “We have focused our efforts on winning the award for several years. The fact that a company that works with dangerous waste can receive an environmental award is evidence that we are good at what we do.

“As regards safety, all employees have received training in identifying risks,” he said.

“On top of that we have carried out what we call safety walks, where employees have made patrols at other branches to make risk assessments.” On the environmental side the company, which works with all types of industrial waste, has installed equipment to reduce emissions of air pollutants and odorous substances from its facilities.

“For the past three years we have also had a boat, Tell, that gathers up sludge in the harbour,” Wernäng said. “This amounts to 16,000 cubic metres per year and in doing so we save 1,100 movements by truck from the quayside.” The boat collects sludge from the vessels and takes it directly to the receiving facility, which the company said was a significant environmental benefit.

Danish shipping giant Maersk is trying to push its SOx emissions down to zero and has begun submitting environmental performance data to the Clean Shipping Index

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Company News

Bringing innovation to the surface PPG has a well-established reputation in the shipping market. Founded in 1722, PPG’s SIGMA COATINGS® brand has been a symbol of sustainable success built on strong core foundations, demonstrated by our ability to anticipate customer demands and provide unique solutions in an ever-changing global market. SIGMA COATINGS remains firmly at the forefront of the marine protection market due to a product range that meets every marine requirement.

PPG’s visionary quality processes

A complete focus on quality and innovation are PPG’s integral brand values. By monitoring the industry and continuously enhancing systems, supply chain and after sales services, we have developed an expert and holistic quality approach, constantly investing in R&D to offer the most innovative coating solutions.

The development of any marine coating system requires careful and time-consuming work. Before introducing a new product into the market, our R&D

laboratories carry out extensive product testing. This includes field-testing and accelerated weathering to simulate real-life exposure conditions, ensuring that product performance meets the challenges of each specific environment.

Our quality processes follow product development and placement from cradle to grave, including a detailed business plan, product profile, proper verification and trial launch. The full process, described in ISO procedures and forms, is the cornerstone of PPG’s high standards and delivers optimal product performance.

As a manufacturer, PPG has been certified by international organisations for compliance with ISO 9001 and ISO 14001 standards. Meticulous strategic planning also ensures that production facilities meet the demand for products without compromising quality or reliability.

However, our intention is not limited to simply supplying high-quality products. We are also committed to providing customers with expert field service worldwide through our Global Field Technical Services department, with most inspectors having undergone special training and received Frosio, or comparable, certification.

Innovative coatings solutions

The working life and profitability of all marine vessels is highly dependent upon the coating systems applied.

The SIGMA COATINGS range meets these commercial challenges with the latest fouling release technologies, chemically resistant coatings for aggressive and toxic cargoes, impact and abrasion-resistant cargo hold coatings, superior ballast tank protection and easy maintenance systems for superstructures and decks.

All our coating solutions are built on an in-depth knowledge of the industry, our customers’ day-to-day challenges, and the environmental, health and safety standards in the market. By working closely with our customers we maintain a high level of understanding of their constantly changing needs – not just for today but also for tomorrow.

Wirana: a record-breaking cash buyer Established in 1983, Wirana is one of the world’s better known and perhaps the oldest cash buyer of vessels for recycling. It has its central office in Singapore and representative offices in Bangladesh, China, India, UAE and Pakistan.

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On average, Wirana successfully negotiates in excess of 150 vessels every year, with an annual LDT between 1.5-2 million and average annual DWT of between 6-9 million tonnes.

Wirana is a one-stop-shop for recycling options in all the four major markets, namely India, Bangladesh, Pakistan and China (north and south).

Wirana has so far negotiated in excess of 2000 vessels and delivered a total DWT of approximately 65 million tonnes since 1983.

Wirana has successfully concluded the

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purchases of two ULCCs from major shipowners with a combined LDT of 148,691, making them the biggest purchases of any year – earning Wirana a place in the Guinness Book of Records twice: the only cash buyer to feature in it.

With its unparalleled experience in green ship recycling, Wirana has, for many years, been recycling vessels at “green” yards in China and India, complying with owners/IMO requirements for recycling ships in an environmentally responsible manner.

Wirana’s in-house professional staff and teams are second to none, working 24/7. Our clients have the benefit of open offices 365 days of the year.

We have excellent relationships with end buyers, thereby reducing the time for waiting for vessels at anchorage. We encourage speedy delivery/beaching of vessels.

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Wirana has worked with leading owners and operators worldwide. It leads the way for many in the ship recycling business, offering a healthy mix of ethics, professionalism and price.

Tel: +65 62270115 Fax: +65 62245704 E-mail: wirana@wirana.com.sg Web: www.wirana.com

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THE SHIPPING EVENT IN CHINA IN ITS OWN LEAGUE DON’T TAKE OUR WORD FOR IT “I found it very well organised. Congratulations.”

Pietro Allevato, General Manager – Shipping Vale “This was the best conference I’ve been to in a long time.”

Tim Huxley, CEO Wah Kwong Maritime Transport “I think the conference has been very interesting, the mix of speakers/panelists absolutely spot-on, and networking extremely productive.”

Giosuè Vezzuto, General Manager, Asia RINA

“Congrats on a magnificent job done; your event is in a separate league compared to all the others.”

Geir Sviggum, Partner Wikborg Rein “It was a thoroughly enjoyable experience as well as extremely beneficial from a business standpoint.”

Martin Rowe, Managing Director Clarksons China

Visit www.tradewindsevents.com to find out what is on the agenda this year.

Confirmed sponsors

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info@tradewindsevents.com

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Company News

We understand water and wastewater treatment As the market leader in the design and manufacture of electrolytic seawater disinfection systems, Severn Trent De Nora brings more than 35 years of marine equipment experience to the treatment of ballast water and marine sewage.

Ballast water is the most frequently cited cause of the introduction and transfer of non-indigenous species (NIS) into waterways. Ballast water treatment systems, especially those based on electrochlorination disinfection, are a proven approach to limiting the introduction and transfer of NIS. The patented BALPURE® system is an effective and economical electrolytic disinfection solution to meet the most stringent ballast water discharge requirements.

Environmentally safe and easy to maintain, BALPURE can offer energy savings of more than 60% compared with competing technologies. Ideal for high ballast water flow rate applications, BALPURE uses a slip stream treatment approach that offers process and design advantages.

The BALPURE system was designed to be a simple and straightforward design solution for both the new build as a single unitised system, or for the retrofit market as a multi-skid configuration broken down and optimised to fit the most challenging space restrictions from system concept. BALPURE received IMO Type-Approval in July 2011.

BALPURE has no impact on tank coatings

Effective corrosion control in ballast water tanks is an important feature in determining a ship’s effective lifespan. A corrosion testing programme undertaken by GL Noble Denton for the BALPURE system was successfully completed in March 2011.

The extensive corrosion testing programme included accelerated studies for the impact of the BALPURE system in untreated and full-salinity, treated seawater up to 8 mg/liter (ppm) total residual chlorine. Comparative studies were made using uncoated steel test specimens and coated test specimens. All specimens met IMO Resolution MSC.215(82) ballast tank coatings requirements. The test specimens were evaluated for weight loss, pitting corrosion of the parent metal and pull off (adhesion), cracking and blistering tests of the coated panels. The adhesion pull-off strength test results recorded for the coated panels removed after six month exposure indicated no significant difference between the three test environments.

This test programme conclusively finds that for seawater treated by the BALPURE system with higher than normal levels of free chlorine there is no measurable effect to the normal life of ballast tanks, ballast tanks coatings and associated pipework, valves, fittings and instrumentation.

The testing proved the BALPURE system has no effect on coated steel, naval bronze and Cu-Ni alloys. Testing proved an insignificant effect on bare steel – so small that the acceleration of corrosion due to the presence of free chlorine has minimal practical implications in ballast tanks.

Severn Trent De Nora has letters of confirmation from AkzoNobel (International Paint Ltd) and AMERON International that further attest to the non-corrosive nature of the BALPURE system. BALPURE is approved and acceptable for use on their paint up to a residual concentration of 8 ppm. Therefore, the BALPURE ballast water treatment system will not impact the life expectancy of a ship.

Marine sewage treatment

At Severn Trent De Nora we understand the importance of providing safe and effective treatment of gray and black water. That’s why we’ve designed the MARINER OMNIPURE® Series M55 sewage treatment systems to provide wastewater effluent quality well within MEPC.159(55) requirements.

Vessels generate sewage that can contain contaminants that have a detrimental effect on water quality and the overall marine environment. The MARINER OMNIPURE system treats sewage from such marine applications and helps lessen the environmental impact of contaminants. The electrolytic process generates a powerful oxidant from seawater to effectively disinfect biological wastes. Electrolytic treatment of marine sewage eliminates chemical storage issues, dosing equipment and costs associated with the use of hazardous chemicals since the disinfection solution is produced on site while the unit is in operation. The MARINER OMNIPURE Series M55 systems can accommodate treatment capacities up to 75 persons for black water and up to 25 persons for black and gray water.

The system boasts ease of operation, small equipment footprint and a light weight package. Featuring a bulkhead-mounted arrangement – a first of its kind – the MARINER OMNIPURE system is an economical and simple treatment solution to integrate into your vessel since it utilizes your vessel’s installed sewage and seawater pumps and in-place collection/holding tanks.

The MARINER OMNIPURE system has received the certificate of approval from the United States Coast Guard (USCG) in accordance with MEPC.159(55) effluent standards. Certification by the USCG involves testing rigorous environmental standards such as shock and vibration above and beyond IMO requirements.

The system also has Bureau Veritas certification to MEPC.159(55) standards.

Severn Trent De Nora 1110 Industrial Blvd Sugar Land, TX 77478 USA T: +1 281 240 6770 F: +1 281 240 6762 E: sales@severntrentdenora.com W: www.severntrentdenora.com

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Events 2013 4-7 March 2013

9-11 April

Amsterdam Marriott Hotel, The Netherlands www.bunkeringineurope.com

Marina Bay Sands速, Singapore

7-8 March

15-18 April 2013

London, UK www.rivieramm.com

Southern Sun Cape Sun Hotel, Cape Town South Africa www.breakbulk.com

Bunkering In Europe

Marine Propulsion Conference

12-14 March

Green Ship Technology Anniversary Radisson Blu Hotel, Germany www.informamaritimeevents.com

18-20 March CMA 2013

Stamford, Connecticut, US www.shipping2013.com

19-20 March 2013

World Ports & Trade Summit St Regis Saadiyat Island Resort, Abu Dhabi www.worldportsandtrade.com

26-27 March FUJCON 2013

Sea Asia

www.sea-asia.com

Break Bulk Africa

24-26 April

34th International Bunker Conference Gothenburg, Sweden www.bi.edu/

14-16 MAY 2013 Break Bulk Europe

The Antwerp Expo, Antwerp, Belgium www.breakbulk.com

4-7 June

Nor-Shipping Oslo, Norway www.messe.no/en/nor-shipping/

5-7 June

Fujairah, UAE www.cconnection.org

6th International Istanbul Bunker Conference

27-28 March

Istanbul, Turkey www.istanbulbunkerconference.com

8th Maritime Communications & Technology Summit London, UK www.wplgroup.com

www.greenshippinginternational.com pageturning technology visit: www.>>>>>.com

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The M/S Viking Grace is the first passenger ship of this size to feature dual fuel propulsion

The order includes the engineering, delivery and commissioning of 2 FMB-VM auxiliary boilers fitted with SKVG 50 burners 4 exhaust gas economizers 1 HFO supply module 1 MGO supply module 2 gas valve units installed in ventilated housings 1 fail-safe PLC control system (se @ vis type)

ALL ABOARD FOR ENVIRONMENTAL PROTECTION sc er t ru he bb a er ll n sy ew st em SA fo ACK rH E FO LM bo B ile rs .+ ++

Dual fuel – safe, economical and ecofriendly The new cruise ferry M/S Viking Grace can carry around 2.800 passengers and is the first vessel of this size to feature dual fuel propulsion. Its engines run on heavy fuel oil (HFO), marine diesel oil (MDO), marine gas oil (MGO) and natural gas (LNG).

As a result, the ferry: – is free from dependency on the cost of individual fuels

– can vastly reduce SOx, NOx and CO2 emissions, thereby ensuring long-term compliance with emissions regulations

SAACKE GmbH ∙ Bremen ∙ GERMANY ∙ www.saacke.com

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SAACKE supplied the boiler systems including the SKVG burners and the exhaust gas economizers.

The burners run on heavy fuel oil (HFO), marine gas oil (MGO) and – for the first time in the world on a passenger ship of this size – on natural gas (LNG) too. Operating as a system supplier, SAACKE has been producing its own marine boilers since 1999.

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