Senior Vice Prisedent of BV -Mr. Didior CHALEAT

8/7/2019 Senior Vice Prisedent of BV -Mr. Didior CHALEAT

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© - Copyright Bureau Veritas

MARE FORUM Amsterdam

The costs and profits of investments in clean air

Didier Chaléat SVP Bureau Veritas

03rd of November 2010



205/11/2010

Despite being most efficient transport mode

Source CIMAC - Tanker burning 2.6% sulphur fuel with return voyage on ballast



329/09/2010

Despite not being by far most polluting activity



429/09/2010

Despite real efforts already achieved

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1910 1930 1950 1970 1990 2010

First ocean going diesel ship - MS Selandia

Oil crises 1973

Engine BSFC assumed constant for years 2000-

Source:LR

g per kWhg per kWh

Fuel efficiency in shipping has improved



529/09/2010

SHIPPING STILL « BADLY » PERCEIVED

Due to :

•Image associated with oil pollution

•Quick development of Seaborn trade due to globalisation

•Spread of actors

•World fleet: 70 000

•>25 years: 25 000

•Orderbook: 10 000

•Number ofshipowners: 10 000



629/09/2010

CONSEQUENTLY SHIPPING FOCUSES ATTENTION

Air Emissions: CO2, NOX, SOX, VOC

Ballast Water

management

Waste water

discharge Hull paint Ship recycling



729/09/2010

IMO/MARPOL and EU REQUIREMENTSAir emissions cap on NOx SOx in place:

•*IMO

GeneralIMO ECAEU ECA

EU At berth

01/01/2012 01/01/202001/03/2015

1% 0.1%

0.5%3.5%

1.5%

4.5%

0.5% ?1.5%

0.1%1%01/01/2010

01/03/2010

01/01/2000 01/01/2011 01/01/2016

Tier I Tier II 80% T I Tier III 20% TI ECA

Tier II World

NOX Regulations

SOX Regulations

•*subject t o feasability re-analysis in 2018

•No Way to escape :

• And next, CO2 reduction regulations to come:

• EEDI, EEOI, SEEMP, ….under study at IMO, EU Commission , USA lobbies « pushing ».



805/11/2010

HOW TO COMPLY WITH THE NEW NOx/SOx REGULATIONS ?

Reducing NOx emissions:►Modification of the engine and / or water or steam injection into the engine -> today

not possible to reach Tier III►Addition of other equipment for after treatment of the exhaust gases (SCR,EGR

systems)

►Cost, place, consumption.Reduction of SOx:

►Use of fuels with reduced SOx: No investment from refineries for desulf HFO;►MDO much more expensive than HFO

►Addition of other large equipment for after treatment of the exhaust gases (Scrubbers)

► Cost, place, consumption.►Reduction of CO2 = reduction of Energy used

►Optimised sailing ->already operational concern►Reduction of speed ->economical limits,

if too low speed design lack of flexibility;►New hulls, propellers,-> limited effects and increase of costs



905/11/2010

HOW TO COMPLY WITH THE NEW NOx/SOx REGULATIONS ?

Reducing NOx emissions:►Modification of the engine and / or water or steam injection into the engine -> today

not possible to reach Tier III►Addition of other equipment for after treatment of the exhaust gases (SCR,EGR

systems)

►Cost, place, consumption.Reduction of SOx:

►Use of fuels with reduced SOx►No investment from refineries for HFO

►Focus on MDO, much more expensive than HFO

►Addition of other large after treatment of the exhaust gases (Scrubbers)► Cost, place, consumption.

The Gas (LNG) alternative►NOx emissions are reduced by 80-90% (lean burn engines)

►SOx emissions (and most Particulate) are eliminated►CO2 emissions are reduced by 20-25%

►Cost of Gas seems “attractive” including on long term due to abundant resources world wide

► If modification or addition of Gas installation not too costly , solution to be really

analysed, even more interesting if flexible with dual fuel (HFO/LNG) solutions



1029/09/2010

THE BEGININGUSE OF NATURAL GAS AS FUEL FOR SHIPS already in place

First LNG carrier with dual fuel engines delivered in 2004 with BV class. Since 50additional LNG carriers

Also within BV experience: LPG carriers where cargo vapours used as fuel (inconjunction with FO) for diesel generators or LNG smaller size like “Coral Methane”

from Anthony Veder with dedicated gas fuelled engine

Now: Gas burning engines envisaged for a broader range of ships - BV involved in

many projects with owners/yards/ design cies/ engine and equipment makers:

“short sea shipping”involved vessels: roro/ropax, small container ships, supply,

bunker tkers,…. But also cruise vessels for port and ECA and large container vessels for wider range



1129/09/2010

USE OF NATURAL GAS AS FUEL FOR SHIPS - MAIN CHALLENGES

► Technical solutions are available:

►IMO regulations and new guidance, Class rules existing to cover mostissues; risk analysis (FMEA/HAZOP) under going fro many projects

►Design must take into consideration:►sufficient space for the LNG storage (2 times more than equivalent FO)

► including possibility to use easily containers already used by onshore trucks for

shorter duration or voyage

► with proper protection against spillages / leakages and segregation of spaces►with necessary heating / cooling arrangements

►Depending on solution choosen, cost seems not too high versus usual

►From first calculation, real benefit seems possible with “top green” impact

►Favorable to charterers, investors, financers, ….and to owners!



1229/09/2010

USE OF NATURAL GAS AS FUEL FOR SHIPS - MAIN CHALLENGES

►Main questions coming in discussion are :

►Logistic to find LNG, in Europe, in the world, at which costs?

►Approval by harbours to get access to LNG without disturbance tooperation?



1329/09/2010

Thank you !

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Senior Vice Prisedent of BV -Mr. Didior CHALEAT