Fuels

Directive 1999/32/EC re the sulphur content of marine fuels The Council adopted yesterday a directive amending directive 1999/32/EC as regards the sulphur content of marine fuels (PE-CONS 31/12). Emissions from shipping due to the combustion of marine fuels with a high sulphur content contribute to air pollution in the form of sulphur dioxide and particulate matter, which harm human health and contribute to acidification. The directive aims therefore to reduce these emissions considerably and to provide a high level of protection for human health and the environment by rendering the most recent International Maritime Organisation (IMO) rules on marine fuel standards mandatory in the EU, thereby amending Directive 1999/32/EC.The key elements of the directive are:- In line with the Annex VI of the MARPOL Convention, the limits for the sulphur content of marine fuels used in designated SO2 Emission Control Areas (SECAs) will be 1% until 31 December 2014 and 0.10% as from 1 January 2015. The IMO standard of 0,50 % for sulphur limits outside SECAs will be mandatory in EU waters by 2020. This will also be valid for passenger ships operating outside SECAs to which the current regime of 1,50 % applies until that date. A general...

The US Coast Guard has issued a policy letter providing guidance to US vessels and to foreign vessels calling in US waters on compliance with the International Convention on the Control of Harmful Anti-Fouling Systems on Ships (AFS Convention).The policy letter addresses domestic vessel inspections and certifications, as well as port state control (PSC) procedures for foreign vessels.The AFS Convection was adopted by the IMO to prohibit the use of harmful organotins in anti- fouling paints used on ships and to establish a mechanish to prevent the potential future use of other harmful substances in anti- fouling systems. Starting on November 21, 2012, US flagged vessels, wherever located, and foreign flagged vessels in the United States, in any port, shipyard, offshore terminal, or other place in the US, lightering in the territorial sea of the US, or anchoring in the territorial sea of the US, must comply with the applicable portions of the AFS Convention as outlined below. The type of anti- fouling systems controlled (prohibited) are specified in Annex 1 of the Convention. The Coast Guard implements the AFS Convention through reference (a), (33 U.S.C. 3801-3857). Compliance verification for US and foreign vessels shall follow the process and scope...

Promoted by CARGILL, Huntsman Corporation and Unipec UK Cargill, one of the world's leading international transporters, producers and marketers of food, agricultural, financial and industrial products, Huntsman Corporation, the global manufacturer and marketer of differentiated chemicals and UNIPEC UK Company Ltd, trader of crude oil and oil products, announced that they will only charter the more efficient vessels operating in the shipping market. This commitment is the first of its kind in the industry to reduce the existing fleet carbon emissions.The announcement, from Cargill, Huntsman Corporation and UNIPEC UK who combined charter over 350 million tonnes of commodities annually, signifies a milestone for the vessel fuel efficiency ratings system, the Existing Vessel Design Index (EVDI), created by ship vetting specialist RightShip and published on ShippingEfficiency.org - an initiative launched by the Carbon War Room and RightShip to increase information flows around international shipping's energy efficiency, as an GHG Emissions Rating (A-G rating) benchmarking system. The efficiency ratings system - containing efficiency information on over 60,000 vessels including container ships, tankers, bulk carriers, cargo ships - enables charterers to instantly see a ship's theoretical greenhouse gas emissions and relative energy efficiency as determined by RightShip's EVDI rated from A (most efficient)...

Switch to Low Sulphur Fuel has Implications for Shore Based Industry Too says ICS The International Chamber of Shipping (ICS), whose member national shipowners' associations represent more than 80% of the world merchant fleet, has expressed disappointment and concern at a decision by the International Maritime Organization (IMO) to reject its call to accelerate a critical study into the global availability of low sulphur fuel for ships.A small majority of IMO Members States, led by the United States, rejected an ICS submission to the IMO Marine Environment Protection Committee (MEPC), which was debated this week in London. Nevertheless, the IMO vote was very close indeed. As well as having the support of major shipping nations such as China and several open registers, ICS was supported by some EU Member States.ICS was pressing for IMO to start work without further delay on a comprehensive fuel availability study that could consider the impact of all the changes required by the new MARPOL Annex VI regime, to reduce atmospheric pollution, before it is too late for the oil refining industry to respond and invest.Shipowners are worried about whether sufficient fuel will be available to allow ships to comply with the strict IMO regulations...

New law confirms that a global limit of 0.5% agreed Environmental groups have today welcomed a European Parliament vote which will help cut back air pollution by significantly decreasing the amount of dirty sulphur allowed in marine fuels. The Directive on Sulphur in Marine Fuels which was tentatively agreed upon before the summer break by the European Parliament negotiators, the Commission and the Council, has just been formally adopted by an overwhelming majority of MEPs.The new law confirms that a global limit of 0.5% agreed in the International Maritime Organisation (IMO) will apply in all EU seas by 2020. This represents a whopping 85% cut compared with today's 3.5% limit. Until this new agreement some uncertainty remained over the entry-into-force date of the IMO global standard in Europe. But the EU has now sent a clear signal that it wants cleaner fuels earlier rather than later while still leaving a very generous eight years for the industry to adapt.It also confirmed an even stricter sulphur limit of 0.1% for 2015 which applies to so-called Sulphur Emissions Control Areas (SECAs) in the Baltic Sea, the North Sea and the English Channel.Green groups welcomed the adoption of the new law as a...

Research presented at American Chemical Society meeting Scientists described development of a new fuel mixture to ease the major air pollution and cost problems facing cruise ships, oil tankers and container ships. These vessels tend to burn the cheapest and most highly polluting form of diesel fuel. Their report was part of the 244th National Meeting & Exposition of the American Chemical Society, the world's largest scientific society, being held here this week.George N. Harakas, Ph.D., explained that large ships have slow-speed engines designed to burn inexpensive, thick "bunker fuels" that literally are the bottom-of-the-barrel from the petroleum refining process. Bunker fuels are high in substances (such as sulfur) that produce air pollution, which creates a serious health and environmental problem when ships cruise along the shore or drop anchor in ports of heavily populated urban areas.Harakas and colleagues from the Maine Maritime Academy and SeaChange Group LLC developed a fuel by adding two ingredients to low-sulfur diesel to produce "Bunker GreenTM" fuel, a member of the Eco-HybridTM family of fuels. One ingredient was glycerol, a thick, colorless liquid widely used in foods, medicines and other products. Glycerol is a byproduct of biodiesel production, making it a cost-effective, carbon-neutral and...

Fuel oil dilemma A European crackdown on pollution from ships will require billions of dollars worth of investment by shipping firms on filter technology and by refineries on upgrades to produce cleaner fuels - burdens they can ill afford.The shipping industry is already struggling due to poor global demand and overcapacity, which have pushed freight rates to unprofitable levels for many operators. European refineries are under pressure from high crude costs, cheap refined product imports and weak demand.To comply with new European Union laws, shipping companies now face extra costs of 2.6 billion to 11 billion euros ($3.2-$13.6 billion) to switch fuels or to fit exhaust filters that would scrub out the sulphur in marine fuel oil.The new rules require that the sulphur content in shipping fuels fall to 0.1 percent from 1 percent by 2015 in "sulphur emission control areas" in the Baltic, North Sea and English Channel. In other EU waters, they will be limited to 0.5 percent sulphur by 2020, in line with global International Maritime Organization rules.EU rules have already forced ships to cut sulphur emissions in harbors.FUEL OIL DILEMMABurning cleaner marine diesel would be a quick fix that would meet the requirements, but it currently...

Final report The project on the establishment of an infrastructure for liquefied natural gas in Northern Europe has published its results.Liquefied natural gas (LNG) is a climate- and environmentally friendly fuel that is to be made competitive through an effective infrastructure and good framework conditions. This has been the aim of a major project in which, inter alia, the Scandinavian countries and several large energy companies participate. The Danish Maritime Authority is the co-ordinating partner of the project.The main project purpose has been to make recommendations for the best way in which to establish an infrastructure facilitating the use of LNG as a ships' fuel. However, other important areas have also been identified.The report's recommendations concentrate on five main areas: Bunkering of ships with LNG Economic and financial conditions Safety Technical and operational conditions Permits for an infrastructure ashoreNew regulations making natural gas competitiveThe background for the project is the fact that, as of 2015, only fuel oil with a maximum sulphur content of 0.1 per cent will be permitted in the English Channel, the North Sea and the Baltic. This limitation creates a possibility of making it economically profitable to use LNG that is, at the same time, more...

Maritime emissions cause an estimated 50,000 premature deaths in the EU each year Shipping fuels should be subject to stricter sulphur limits to protect public health and the environment, according to MEPs voting on draft legislation in committee this morning. Maritime emissions cause an estimated 50,000 premature deaths in the EU each year."Today's vote brings us a step closer to tougher EU rules on sulphur pollution from ships. Highly polluting shipping fuels have a serious impact on the environment but also on public health", said Satu Hassi (Greens/EFA, Finland) after her legislative report was adopted with 48 votes in favour, 15 against and 0 abstentions.Air qualityShipping emissions are a recognised hazard to the environment and public health, with respiratory diseases and acid rain among the negative impacts. Maritime sulphur dioxide and nitrogen oxides are projected to overtake emissions from land-based sources by the end of this decade. The Commission estimates stricter sulphur limits would save 15-32 billion thanks to improved health.New sulphur limitsThe legislative update should go further than new sulphur standards agreed at the International Maritime Organisation (IMO) in 2008, recommends the Environment Committee. The current sulphur limit of 3.5%, in force in European seas since 1 January 2012,...

Liquefied natural gas is entering a golden age Liquefied natural gas (LNG) is entering a golden age supported by a fleet of modern day floating mega ships. Ian McInnes reports on a new generation of LNG leviathans, including Shell's massive Prelude floating liquefied natural gas facility (FLNG), the largest floating structure ever conceived.While the scale of damage resulting from the major earthquake in Japan in March 2011 and the resulting tsunami almost lead to a nuclear crisis which could not have been foreseen, often good business is simply about being lucky enough to be in the right place at the right time.With fuel-for-power hungry Japan's imports of LNG surging nearly 18% to more than six million metric tons in October 2011, compared to the same period in 2010, and other nations, especially in the Asia Pacific region demanding the fuel too, Shell's decision to go ahead with the world's first floating liquefied natural gas facility (FLNG), the Prelude FLNG, looks to be timed almost perfectly.A Prelude to the golden age of LNG"Shell's decision to go ahead with the world's first floating liquefied natural gas facility (FLNG), Prelude, looks to be timed perfectly."Of course, projects such as Shell's Prelude FLNG take...