By Svend Overgaard
Prac%cal approach towards green recycling -‐ Outline 1. Brief introduc5on to LITEHAUZ 2. Hazardous materials in ship recycling 3. Environmentally Sound dismantling (findings of the UNEP study)
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
2
Our organiza%on
ENVIRONMENTAL SERVICES For the mari%me sector Litehauz was founded in december 2007 Our office is located in Holte, north of Copenhagen, Denmark
Frank Stuer-‐Lauridsen CEO and Senior environmental Consultant Svend Boes Overgaard Senior Environmental Consultant & Office Manager Pernille Bohn Environmental Consultant Monikka Bergstrøm Environmental Consultant DiMe Kristensen Environmental Consultant MaMhew Woods Junior Environmental Consultant
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
3
Selected Services and references Ship recycling
•
Discharges and emissions
•
World Bank study -‐ The Ship Breaking • and Recycling Industry in Bangladesh and • Pakistan •
•
•
UNEP (United Na5ons Offices in Geneva)– Feasibility study for environmentally sound ship dismantling Development of IHMs, Green Passports, and Asbestos surveys on 15 vessels.
Black Carbon emissions from interna%onal shipping LNG as fuel in short sea and ferry sector Cost of NECA in North Sea Costs for shipping – PSSA around Greenland
Ballast water
• • •
Exemp%ons under regula%on A-‐4 Assistance to developers of ballast water treatment systems Development of in-‐line monitoring of BWMS performance
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
4
Ship Recycling and Hazardous Materials
Ship recycling methods Slipway – Landing (Aliaga )
Beaching (Chidagon)
Pier Breaking – Along side (Changjiang Ship Breaking Yard, China)
Drydock (Able Seaton Port)
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
6
Hazardous Materials – Bangladesh (2008-‐2030) Hazardous material (unit)
Remain at Sold with Waste Unknown or yard/ in beach equipment or Re-‐rolling mills disposal site informal waste sediment as item (formal) disposal site
Asbestos (t)
37,525
3,950
0
0
37,525
PCB mainly in cables (t)
24,000
216,000
0
0
0
ODS (PU foam) (t)
42,000
2,100
0
0
165,900
Paints (metals, TBT, PCB) (t)
3,460
3,460
58,820
0
3,460
Heavy metals (t)
169.5
169.5
339
0
0
1,978,000
0
0
0
0
107,000
0
0
0
0
193
389
0
0
193
33,750
607,500
0
0
33,750
Waste liquid organic (m3) Miscellaneous (sewage) (m3) Waste liquids inorganic (t) Reusable liquids organics (t) (World Bank, 2010)
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
7
Main regulatory drivers for greening of the industry
• The Hong Kong Interna%onal Conven%on for the Safe and Environmentally Sound Recycling of Ships
• Mul%lateral agreements • Basel Conven%on, • Ban Amendment • Stockholm Conven%on • Montreal Protocol
• ILO agreements on worker’s rights and occupa%onal safety and health condi%ons
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
8
Feasibility Study for Ship Dismantling For UNEP, funded through a grant by the European Commission.
Feasibility study to iden5fy cost-‐effec5ve alterna5ves to the tradi5onal beaching method Study approach • Components of environmentally sound management • Unit cost price • Compliant model facility • Baseline facili%es • Cost of upgrade to compliant model • Incremental implementa%on • Sensi%vity analysis
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
10
Components of Environmentally Sound Management Documenta5on and iden5fica5on of hazardous materials Equipment for dismantling ac5vi5es
Yard facili5es
Quality assurance and procedures 9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
11
Components of Environmentally Sound Management Key components • Inventory of hazardous Materials (IHM) • Equipment to ensure prober handling of HMs • Occupa%onal safety and health related equipment, e.g. PPE, first aid.. • Heavy machinery e.g. cranes, mechanical movers, forklijs, etc. • Impermeable surfaces and storage measures • Containment installa%ons and spill response equipment • Quality assurance schemes, e.g. ISO standard • Procedural measures, plans and training of personnel
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
12
Descrip5on on Compliant Model Facility – Key Assump5ons • • • • • • • • • • •
Hong Kong Conven%on requirements are met 100,000 LDT capacity per year Heavy machinery and dismantling equipment OSH equipment and procedures Paved areas (50,000 m2) Impermeable floors (20,000 m2) Closed buildings (200 m2) Administra%on and domes%c buildings (900 m2) Managerial staff (12) Labourers: (117/434) Train the trainer courses and ini%al training of labourers
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
13
Baseline Facili5es Baseline 1
• Exis%ng (non-‐compliant) pier-‐breaking facility
Baseline 2
• Exis%ng (non-‐compliant) slipway facility
Baseline 3a
• Basic pier – no prior dismantling ac%vity
Baseline 3b
• Basic harbour area -‐ no prior dismantling ac%vity
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
14
Baseline Facility Assump5ons General assump5ons • Logis%cal infrastructure • Basic installa%ons: electricity, water, etc. • Basic access roads to the yard area • Waste management facili%es • Disposal facili%es in the form of landfills And A number of specific assump%ons, e.g: • Baseline 1 and 2: ugraded to highly mechanised facili%es • Baseline 3: are labour intensive and less mechanisa%on is needed 9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
15
Results – Upgrade cost Total cost 100,000 LDT ( million USD)
Total cost 50,000 LDT (million USD)
Total cost 25,000 LDT (million USD)
Exis5ng pier breaking (1)
9.5
3.9
1.9
Exis5ng slipway (2)
21.0
12.9
7.5
Basic pier (3a)
23.9
14.3
9.5
Basic harbor (3b)
24.9
14.8
9.7
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
16
Results -‐ Upgrade distribu5on Model 1 Pier breaking
Model 2 Slipway
Model 3a Basic pier
Model 3b Basic harbor area
Documenta5on and iden5fica5on
<1%
<1%
<1%
<1%
Equipment for dismantling ac5vi5es
38%
37%
41%
42%
Yard facili5es
59%
60%
51%
50%
Quality assurance and procedures
<1%
<1%
<1%
<1%
Train the trainer courses and training of labourers
3%
4%
9%
9%
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
17
Incremental Implementa5on Schedule Short term – up to one year Minimal (cost) equipment
Medium term – one to three years Simple/low cost techniques and equipment
Long term – three to seven years Improved infrastructure and heavy machinery
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
18
Incremental Implementa5on Schedule <1 year
1-‐3 years
3-‐7 years
Exis%ng pier (1)
16%
36%
48%
Exis%ng slipway (2)
9%
37%
54%
Basic pier/harbour (3a and 3b)
45%
31%
23%
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
19
Sensi5vity Analysis Heavy machine equipment () • European marked price as used as basis • Used equipment (low boundary) • (up to -‐17%) Concrete • Mean prices used as basis • Low and high price as boundaries (based on Turkish & Asian prices) • (-‐20% to +30%)
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
20
Sensi5vity Analysis (100,000 LDT facility) 30
29
30 27
25
24
25 21
20 17
Millions (USD)
16
15
14 12 9
10 6
5
-‐ Low
Baseline Model 1 -‐ Pier breaking
High
Low
Baseline Model 2 -‐ Slipway
High
Low
Baseline Model 3a -‐ Basic pier
9/4/2013
High
Low
Baseline
High
Model 3b -‐ Basic Harbour
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
21
Finish
Thank you! Contact informa5on: Litehauz Aps Holte Sta%onsvej 14, 1. floor 2840 Holte Denmark Mob: +45 28192886 Mail: svo@litehauz.com Website: www.litehauz.com 9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
22
Poten5al loca5ons for upgrade to compliant model Decision-‐making parameters for iden5fica5on of feasible loca5ons to upgrade to a compliant model facility: • A history of ship import for scrapping • Enforced regula%ons on environmental pollu%on • Access to hazardous waste management facili%es • Strong domes%c demand for steel not readily available from other sources (plates and rebar) • A market for ship equipment and consumables • Low wages
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
23
Poten5al loca5ons for upgrade to compliant model Baseline 1 -‐ upgrade to compliant pier breaking (PB) facility • Pier breaking facili%es in India, China and poten%ally also in Dominican Republic and the Caribbean Baseline 2 -‐ upgrade to compliant slipway (SW) facility • E.g exis%ng slipways in Mumbai (India) Baseline 3 -‐ establishment of PB or SW facility from Basic pier/harbour area • Basically any port infrastructure or ship repair yard • Philippines, Indonesia, Vietnam, Thailand, Pakistan, Bangladesh and India. 9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
24
Top ten recycling na5ons -‐ 2010
Scrapped amount [DWT]
Number of ships scrapped
Main recycling method applied
India
9,287,775
451
Beaching
Bangladesh
6,839,207
110
Beaching
China
5,769,227
189
Pier breaking
Pakistan
5,100,606
111
Beaching
Turkey
1,082,446
226
United States
217,980
15
Slipways Pier breaking /drydock
Romania
16,064
4
Pier breaking
Denmark
15,802
25
Japan
13,684
1
Pier breaking Pier breaking /drydock
Belgium
8,807
12
Pier breaking
(Intermodal Research, 2011) 9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
25
Projected annual and accumulated scrap volumes 2010 – 2030 Global historic recycling volume 2000-‐2009 and projected recycling 2010-‐2030 in million Gross Tonnage
(World Bank, 2010)
9/4/2013
The Interna%onal Conference on Ship Recycling April 2013 -‐ WMU
26