Air Emissions Regulations Air Emissions Regulations INTERTANKO StrategyINTERTANKO Strategy

NORTH AMERICAN PANEL MEETINGNORTH AMERICAN PANEL MEETING

24 OCTOBER 200624 OCTOBER 2006

BACKGROUNDBACKGROUND

• ANNEX VI ADOPTED IN 1997 AT IMO ANNEX VI ADOPTED IN 1997 AT IMO INTERNATIONAL CONFERENCEINTERNATIONAL CONFERENCE

• ENTERED INTO FORCE MAY 2005ENTERED INTO FORCE MAY 2005

(US CURRENTLY NOT A PARTY)(US CURRENTLY NOT A PARTY)

• MEPC 53 (JULY 2005) AGREES TO MEPC 53 (JULY 2005) AGREES TO REVIEW/REVISION OF ANNEX VIREVIEW/REVISION OF ANNEX VI

• WORKING GROUP TO MEET IN OSLO, WORKING GROUP TO MEET IN OSLO, NORWAY FROM 13-17 NOVEMBERNORWAY FROM 13-17 NOVEMBER

INTERTANKO EXCOMINTERTANKO EXCOMDiscussions & AgreementsDiscussions & Agreements

• Air emissions from ships: a major issue for Air emissions from ships: a major issue for governments, port and coastal authorities governments, port and coastal authorities and the IMO; a high priority for and the IMO; a high priority for environmentalist organisationsenvironmentalist organisations

• Governments have high expectations - threat Governments have high expectations - threat of unilateral regimesof unilateral regimes

• INTERTANKO should actively contribute to INTERTANKO should actively contribute to the revision process the revision process

• INTERTANKO should develop a strategy in INTERTANKO should develop a strategy in promoting its policies and also in gaining promoting its policies and also in gaining support from the shipping communitysupport from the shipping community

INTERTANKO EXCOMINTERTANKO EXCOMDiscussions & AgreementsDiscussions & Agreements

• Secretariat develops a Strategy PaperSecretariat develops a Strategy Paper

• Invites ISTEC input on technical and Invites ISTEC input on technical and operational aspectsoperational aspects

• Strategy draft Paper & ISTEC input to Strategy draft Paper & ISTEC input to be presented to EXCOMbe presented to EXCOM

Principles for anPrinciples for anINTERTANKO StrategyINTERTANKO Strategy

• Ensure a solid platform of requirementsEnsure a solid platform of requirements• Be realistic and feasibleBe realistic and feasible• Be simple and straightforward to the extent that Be simple and straightforward to the extent that

they do not complicate ship operationsthey do not complicate ship operations• Seek Seek a long terma long term and positive reduction of air and positive reduction of air

emissions from ships, andemissions from ships, and• Contribute to Contribute to a long term and a predictablea long term and a predictable

regulatory regimeregulatory regime • Regulations based on a fuel standard rather Regulations based on a fuel standard rather

than an emissions performance standard, and than an emissions performance standard, and thus reduce the onus of responsibility on the thus reduce the onus of responsibility on the owner/operator for verification and compliance.owner/operator for verification and compliance.

ALTERNATIVE SOLUTIONSALTERNATIVE SOLUTIONS

• ““Clean” fuels and/or alternative solutions such as:Clean” fuels and/or alternative solutions such as:• Exhaust gas scrubbers - Scrubber technologies are Exhaust gas scrubbers - Scrubber technologies are

not yet proven and have their own environmental as not yet proven and have their own environmental as well as economic and availability challenges well as economic and availability challenges

• Selective Cathalytic Reducing System (SCR) – Selective Cathalytic Reducing System (SCR) – technologies yet to be proven as reliabletechnologies yet to be proven as reliable

• ““Cold ironing” - with associated problems including Cold ironing” - with associated problems including the lack of an international standards the lack of an international standards for voltage/frequency of power, of shore/ship for voltage/frequency of power, of shore/ship connection systems and compatibility with connection systems and compatibility with shipboard requirements for power supply for shipboard requirements for power supply for hydraulic power sources (compressors needing up hydraulic power sources (compressors needing up to several MW of power) to several MW of power)

ISSUES FOR DISCUSSIONISSUES FOR DISCUSSION

• Two tier global cap for sulphur:Two tier global cap for sulphur:– [2010] – Distillate with 1.0% S content[2010] – Distillate with 1.0% S content– [2015] – Distillate with 0.5% S content [2015] – Distillate with 0.5% S content

(new engines)(new engines)

• Removing the SECA provisionRemoving the SECA provision

• Reconsider the current provisions for Reconsider the current provisions for rule compliancerule compliance

ISTEC DISCUSSIONSISTEC DISCUSSIONS• Under the circumstances & from a Under the circumstances & from a

technical/operational point of view, best technical/operational point of view, best solution for ship operatorssolution for ship operators

• Advantage since ships would use one fuel Advantage since ships would use one fuel type onlytype only

• Modern refineries – no residsModern refineries – no resids• Modifications like change of fuel pumps, etc. Modifications like change of fuel pumps, etc.

are not considered majorare not considered major• Use of lower BN lube/cylinder oil not a Use of lower BN lube/cylinder oil not a

technical challengetechnical challenge• ISTEC WG on technical aspects ISTEC WG on technical aspects • FULL SUPPORTFULL SUPPORT

FURTHER ACTIONFURTHER ACTION

• Draft submission to IMODraft submission to IMO• Invite RT to consider and eventual joinInvite RT to consider and eventual join• Submit paper to IMO & Press ReleaseSubmit paper to IMO & Press Release• Meetings with the EU Comission & Meetings with the EU Comission &

EMSAEMSA• Meetings with Administrations that play Meetings with Administrations that play

a key role in IMOa key role in IMO• Meeting with OCIMFMeeting with OCIMF