Greening shipping, regulatory elements

Panayiotis MitrouTechnology & Innovation Manager, South Europe,Marine & Offshore Business DevelopmentLloyd’s Register

Air Quality (emissions) measurement in Ports16th January 2018, Piraeus

Forces Driving Change

Policies TechnologySocietal Needs

Societal Challenges NOx

EUR

O VI

Marine Engines NOx Emission limits 30-40 times greater than EURO VI (Cars)

Societal Challenges PM-Noise

(Source: “Shore Power for Vessels Calling at U.S. Ports: Benefits and Costs“ Parth Vaishnav*†, Paul S.Fischbeck†‡, M. Granger Morgan†, and James J. Corbett, Department of Engineering and Public Policy and‡Department of Social and Decision Sciences, Carnegie Mellon)

90% of the Societal Impact comes from NOx and PMs

Alternative fuel options

Today

Distillates 0.10%

“ULSFO” 0.10% Residual blends

0.50% VLSFO

HSFO + EGCS

LNG

Methanol

Short to Medium term

To 2030

Methanol, Ethanol,

Ethane, LPG, DME

GTL, CTL - Fossil

BTL,HVO non fossil

Wind / solar

Hybrid solutions

Electric – battery

Fuel cells

Longer Term 2030 years

Zero fossil carbon, renewable –liquid

Hydrogen / Ammonia

Nuclear

ApprovedCOST driven

In service and/or trial /retrofit possibilities / most

rules in place / someinfrastructure to develop

Already being trialled

Vessels berthing more than 2h have to switch to low sulphur fuel or use shore power

All ships in an ECA must use fuel <0.1%S as of 2015

All passengers ships outside of an ECA must use fuel <1.5% S (<0.5% as of 2020)

Directive 2005/33/EC

Regulatory Drivers

Tax exemption for energy products supplied for use as fuel for the purposes of navigation within Community waters

Directive 2003/96/EC

Membership countries to promote shoresideelectricity facilities.

Recommendation 2006/339/EG

Directive 2014/94/EC: Alternative Fuels

A minimum infrastructure to be implemented throughnational policy frameworks along the TEN-T corridor for:

• Electricity

• Liquefied Natural Gas (LNG)

• Compressed Natural Gas (CNG)

• Hydrogen

Directive 2014/94/EC: LNG

Use of LNG for Maritime transport

– Install appropriate number of refuelling points for LNG by 31 December 2025

– Ensure appropriate LNG distribution system

– Development of technical specifications for LNG refuelling points / LNG bunkering

– Adopt a national policy framework for the development of the market as regards the use of alternative fuels in the transport sector

National initiatives for alternative fuels

• National Policy framework for alternative fuels promoting use of LNG in maritime transport

• Reference to Poseidon Med II regulatory work

• Presidential decree for safe LNG bunkering operations

Addressing Environmental Regulations

LNG & Methane slip

References:•IMO: Studies On The Feasibility And Use Of LNG As A Fuel For Shipping•U.S. MARAD; Methane Emissions from Natural Gas Bunkering Operations in the Marine Sector: A Total Fuel Cycle Approach•Danish EPA, 2010

Methane Slip

• No problem for Diesel Engines

• Improving Otto under progress

Mitigation measures

• Enhanced engine design

• Integration of methane related controls

• Methane targeted Oxidation Catalysts

0

10

g/k

Wh

ou

t

Engine type

Typical engine emissions factors

Methane slip

(CH4)

New Fuels Status quo and scrubbers

97 LNG fuelled shipsnot including LNG carriers

400-600 HSFO + Scrubber inst

8+ methanol installations

35+ battery ships installations

Conventional option

Numbers approximate

87,000 + Ships (Excludes Navy fishing…)58,000 + Ships Cargo international trade

91 LNG fuelled ships on order 70 LNG-ready ships in service / on order

LNG as marine fuel today

3

Projects100

Partners

125 million

Euro

Decarbonisation – Try not to Panic

Source: IEA

• COP21 stabilising temperature wellbelow 2 °C and aiming for 1.5 °C

• 66% 2 °C Scenario • Electricity 95% Low Carbon

- Cars 70% electric- Buildings 80% of existing stock retrofitted-Industrial sector CO2 intensity 80%

decrease

New Policies Scenario – Nationally Determined Contributions under COP21

Key question, Where do we see shipping fitting in the Decarbonisation Story

Decarbonisation and Shipping

• Carbon Premium 2023 – EU ETS

• LNG offering a 20% carbon reduction

• Blend of Offsetting, Efficiency and Low Carbon Renewables or Bio Fuel may be the answer

• The latter the GHG policy starting, the greater the rate of decarbonisation

• Careful planning and seismic investment needed for infrastructure development for non-fossil fuel switch

• Schemes to support the shortsea sector allow it become the platform for technology trial and development

COP21 target in shipping can be achieved through a pathway moving away from fossil fuels

0

200

400

600

800

1000

1200

1400

20

10

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

Mill

ion

to

ns

of

CO

2CO2 operational emissions & CO2

offsets

Business As UsualHigh Offsetting

Source: LR Carbon Pathways

LR Carbon Pathways

Cold-ironing / Zero impact on Air quality

• Power is supplied to ships berthed via a direct connection to the port electrical network

• Ship power load is transferred to the shore side supply without interrupting the onboard services.

• 1st shore power installation in East Med at Killini port

ConclusionsAir Emissions

Local pollution

Decarbonisation

LNG MarketShale Gas

East Med case

Between traditional fossil fuels & carbon

neutral solutions,

LNG could be the bridge to

decarbonisation efficiency

Thank You!

Panayiotis Mitrou, Technology & Innovation Manager, South Europe, Marine & Offshore, Business Development