ShipyardsShipyards’’ contribution tocontribution toClean Air at SeaClean Air at Sea

Reinhard LükenSecretary General

Overview

n Why air emissions from ships are important

n Technical solutions

n Policy recommendations

Scientific Evidence Scientific Evidence Cardiopulmonary mortality attributable to ship emissions

Source: World Health Organization European Center for Environment and Health(Journal of Toxicology and Environmental Health, part A, vol 68, p 1301)

Industry’s own interest in Clean Air at Sea

n Shipping is the most energy efficient mode of transport

n Use of residual fuel leads to strong pollution

• DNV Baltic Sea Report: ships emit twice the amount of SOx of Sweden

und Denmark together

• Cars driving 15,000km a year emit approximately 101 grammes of

sulphur oxide gases (or SOx) in that time. The world's largest ships'

diesel engines which typically operate for about 280 days a year

generate roughly 5,200 tonnes of SOx.” Source: guardian.co.uk, Thursday 9 April 2009

n Public acceptance is becoming increasingly problematic

n Perception as major polluter bad for business & recruitment

Technical solutions

n Reduction of fuel consumption (partial solution)

n Use of low-sulphur fuel oil

n Use of exhaust gas cleaning installations

n Use of alternative fuels

Energy Efficiency Energy Efficiency –– Room for improvementsRoom for improvements

Drag ReductioDrag Reduction: n: A. Hydrodynamic Tools A. Hydrodynamic Tools ((MicrobubblesMicrobubbles, Boundary Layer..);, Boundary Layer..);B. Mechanical/Chemical Tools B. Mechanical/Chemical Tools (Anti(Anti--fouling Coatings, Polymers, fouling Coatings, Polymers, …….)..).

Hydrodynamic DesignHydrodynamic Design::A. Hull forms design via CFD and Optimization tools;A. Hull forms design via CFD and Optimization tools;B. Special design related to the shipB. Special design related to the ship’’s service;s service;C. Wake and hull devices C. Wake and hull devices (flaps, spoilers,...).(flaps, spoilers,...).

PropellersPropellers::A. Over Large Area Propellers A. Over Large Area Propellers (slow propellers)(slow propellers);;B. Super B. Super CavitatingCavitating (fast ships)(fast ships);;C. Propeller rudder interaction C. Propeller rudder interaction (ducts, hubs, pre(ducts, hubs, pre--post swirl).post swirl).

Prime MoversPrime Movers::A. Fuels Cells A. Fuels Cells (high temperature, Molten Carbonate,..)(high temperature, Molten Carbonate,..)B. Waste RecoveryB. Waste RecoveryC. Turbines C. Turbines (micro turbines, EDI turbine,(micro turbines, EDI turbine,……))D. Other D. Other (Stirling, Nuclear, Kites, Sails(Stirling, Nuclear, Kites, Sails…….).)

Energy Efficiency Energy Efficiency –– Room for improvementsRoom for improvements

Electrical SystemsElectrical Systems: : A. Induction Motors (Sea Trails phase);A. Induction Motors (Sea Trails phase);B. High Temperature Superconducting Motors B. High Temperature Superconducting Motors –– HTS HTS (Naval Applications, (Naval Applications, …….);.);C. Converters (Advanced Conv., Multi Level, Matrix Conv.,C. Converters (Advanced Conv., Multi Level, Matrix Conv.,……););D. Lighting (LED, Solar Assisted,D. Lighting (LED, Solar Assisted,……););E. Distribution (DC, Superconducting Technology, E. Distribution (DC, Superconducting Technology, …………))

Heat ManagementHeat Management::A. Pinch Analysis;A. Pinch Analysis;B. Devices (Heat Pumps, Plate heat Exchangers, Sea Water, B. Devices (Heat Pumps, Plate heat Exchangers, Sea Water, ……))C. Recycle of Grey Water for engineering servicesC. Recycle of Grey Water for engineering services

OperationOperation::A. Run at the design speed;A. Run at the design speed;B. Slower acceleration;B. Slower acceleration;C. Cold IroningC. Cold Ironing

Reduction of fuel consumptionAverage marginal CO2 reduction cost per reduction option on world fleet

-100

-80

-60

-40

-20

0

20

40

0 50 100 150 200

CO2 reduction (mill tonnes per year)

Cos

t per

tonn

e C

O2 a

vert

ed ($

/tonn

e)

Voyage execution

Propeller efficiency

Fleet optimization and speed reduction

Propulsion efficiency devices

Optimal trim

Boiler consumption reduction

Auxiliary power reductionEngine monitoring

Hull condition

Wind power

Weather routing

Soruce: DNV Presentation at GMEC September 2010

High cost of DistillatesHigh cost of Distillates

Residual Fuel Oil (BW 380)

Source: www.bunkerworld.com

Distillates (BWDI)

LNG price development is attractiveLNG price development is attractive

Case calculations

Annual Fuel Cost

Alternatives to Residual Fuel Oil:•Distillates ~ 66% more costly•LNG ~ 30 % cheaper

Retrofitting cost evaluationSource: GL, March 2011

Summary of Compliance Options

n Distillates are too expensive

n Fast return on investment on retrofitting of exhaust gas

cleaning equipment (approx. 1 year)

n Additional retrofitting can pay off (energy saving devices,

LNG propulsion)

n Newbuilding is an attractive long-term option

n Investment obstacles:

• Experience with scrubber technology; space requirements

• Retrofitting capacity

• Enforcement doubts

Sufficient Capacity for Retrofitting

n Retrofitting of a dry scrubber takes about 5 days

n Retrofitting of a wet scrubber 10-12 days

n 300+ shipyards

n Sufficient spare slots

Investments already started

n Large cruise ferry (2800 pax)

n Off-shore support vessels

n LNG distribution – LNG feeder ships ordered in Europe

n Port of Lübeck has announced LNG bunker terminal

Investments Require Certainty

““As the As the Graph of the MonthGraph of the Monthdemonstrates, the number of demonstrates, the number of passenger ferries contracted passenger ferries contracted with LNG propulsion with LNG propulsion has grown has grown significantly following the significantly following the implementation of the implementation of the ‘‘Emission Emission Control AreasControl Areas’’, having , having increased increased from none in 2006 and 2007 to from none in 2006 and 2007 to nine in 2010. This equates to nine in 2010. This equates to 29.0% of the passenger ferries 29.0% of the passenger ferries contracted contracted globally last year.globally last year.””

Clarkson‘s World Shipyard Monitor, May 2011

Policy Recommendation

n The compliance target of 2015 is technical feasiblen Necessary investments need certaintyn To compensate (real or perceived) risks, support for early

adoptersn Experience shows, horizontal state aid rules are not workingn Shipbuilding framework has seen good implementation

resultsn Yards master technical input; transparent funding will

ensure, benefit stays with the operator (yards and suppliers benefit from accelerated business volume)

n Instrument supports sound cooperation between owner, builder and supplier

n Instrument supports European manufacturers

+++ Thank you for your attention ++++++ Thank you for your attention +++

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