pax solutions · lng and other alternative fuels • clean fuel meets 0.1% sox requirements ......

PAX_SOLUTIONS IMO2020 EMISSIONS MANAGEMENT

November 2018

OUTLINE

IMO2020 BACKGROUND

Effective 1st Jan 2020, IMO will impose a 100% compliance to 0.5% Sulphur emissions globally.

Compliance monitored by port state authorities (USCG etc). Non-compliant vessels to prove they could not secure

compliant fuels. Enforcement methods and penalties (vessel detention, fines or commercial restrictions) are not

finalized. We await Marine Environment Protection Committee (MEPC) 22-26th Oct 2018 for more updates

ECONOMICS

-Availability of low sulphur fuel

-Oil price uncertainty

-Cost of EGCS and EGR/SCR

-Market based measures

EMISSIONS REGULATIONS

-SOx, NOx, CO2, PM

-Emission Control Areas (ECAs)

-Local emissions regulations

• CARB, EU, Chinese

http://www.imo.org/en/MediaCentre/MeetingSummaries/MEPC/Pages/Default.aspx

Economics - Marine Fuel Demand

• Significant change in demand

profile overnight from 1 Jan

2020.

• Approximately 3million

barrel/day (155million

tonnes/year) switch.

• Predominantly met with MGO

and 0.1/0.5% S fuels.

• LNG and other alternative

fuels may play increasing role.

Courtesy: Shell

Economics - Compliance Options

Fuels/Technologies Pros Cons

Low sulphur distillate fuels • Widely used with few limitations• Very low CAPEX and small modifications

• Price difference compared to HFO• Low viscosity and lubricity• Existing vessels may need modifications in FO storage, systems, boiler, etc.

Exhaust Gas Cleaning Systems (EGCS) • Reduces both SOX and PM• Continue using low cost HFO• Pay back period accelerated with high price differential

• High installation costs• Relatively new marine technology• Limitations on washwater discharge• Fuel oil availability after 2020?

LNG and other alternative fuels • Clean fuel meets 0.1% SOX requirements• Potential low fuel costs

• High CAPEX• Limited bunkering infrastructure• Lower energy density -need higher volume tank

Low sulphur ‘hybrid’ fuels • Price expected lower than distillate fuel oil• No modifications required for existing vessels• Low Sulphur content, but behave like conventional fuels

• Limited availability• Not yet categorized in ISO:8217 marine fuel standard• Compatibility/stability issues?

EMISSIONS REGULATIONS – GLOBAL & REGIONAL

Effective & Phase-in Dates

PAX_SOLUTIONS IMO2020 EMISSIONS MANAGEMENT

CUSTOMER PRESENTATION

Corporate Office : No. 1 Kim Seng Promenade

#07-02

Singapore 237994

Tel : (65) 6737 7300

Email : [email protected]

PaxOcean Group

Kuok Group Worldwide

PaxOcean Group Structure

Kuok Singapore Limited

SINGAPORE CHINA CHINA BATAM

Marketing &

Commercial

ProcurementEngineering

& Design

PaxOcean Engineering Pte Ltd

PaxOcean Holdings Pte Ltd

(PHPL)

PaxOcean

BatamPaxOcean

ZhoushanPaxOcean

Zhuhai

PaxOcean

Singapore

Newbuilding

Ship Repairs & Conversion

O&G and Offshore Activities

Legend

SHIPYARDS

INTRODUCTION

PaxOcean Group of Shipyards

PaxOcean Singapore PaxOcean Zhuhai

PaxOcean Graha

Zhoushan, China

Zhuhai, China

Singapore

Batam, Indonesia

PaxOcean Zhoushan

PaxOcean Pertama PaxOcean Nanindah

PaxOcean Singapore Yard

Total Area: 110,000 m2Docking up to Handymax-Sized Vessels

Afloat repairs up to Panamax-Sized Vessels

Floating DockDOCK LENGTH WIDTH TLC

No. 1 122 M 22 M 3,400

No. 2 195 M 34 M 16,000

No. 3 187 M 36 M 16,000

123

PaxOcean Pertama Yard (Batam)

Total Area: 272,000 m2Floating Dock

DOCK LENGTH WIDTH TLC

No. 1 97 M 24 M 3,200

No. 2 186 M 36 M 16,000

Dock V 235 M 40 M 22,000

Docking up to Panamax-Sized Vessels

Afloat repairs up to VLCC-Sized Vessels

PaxOcean Graha Yard (Batam)

Total Area: 495,000 m2Building Berths 3 nos. 80 M x 80 M

2 nos. 170 M x 50 M

Berth 455 M

Equipment Mobile cranes up to 1,250 T

Building Berths

PaxOcean Nanindah Yard (Batam)

Total Area: 546,000 m2Berthing Wharf 2,500 M

Workshop Area 31,900 M2

Equipment Cranes up to 600 tons SWL

Building Berths

PaxOcean Zhoushan Yard (China)

Total Area: 800,000 m2

Graving Dock

DOCK LENGTH WIDTH

Central 400 M 106 M

West 380 M 80 M

900T Crane

PaxOcean Zhuhai Yard (China)

Total Area: 200,000 m2Covered Launchways

LAUNCHWAY LENGTH WIDTH

No. 1 210 M 27 M

No. 2 210 M 27 M

No. 3 110 M 38 M

312

Group Achievement

NEWBUILDING600+ Vessels and Barges

Across major vessel classes, including

15 Jack up Rigs and Liftboats

“Aurora V”

56m RoRo/Passenger Ship

“Ocean Swagman”

8,000m2 Livestock Carrier

Jack-Up Rig L209 CJ46

Drilling Jack-Up Barge

Group Achievement

CONVERSIONS Successfully delivered

46 Conversions

“Posh Bawean”

Upgrading to Accommodation Vessel

“Sea Good 101”

Tanker to FPSO

“Pearl River”

Lengthening of Vessel

“Frontier Duchess”

Drillship Upgrading

Group Achievement

REPAIRS

Repaired over 2000 Vessels

“COSL 942”

Jack Up Drilling Rig

“Ore Brasil”

400,000 DWT VLOC

“Leiv Eiriksson”

Heavy Dredger

Avg. 370 vessels per year

“Rio Illapel”

47,020 DWT Vehicle Carrier

CSAV

PAX_SOLUTIONS – BWTS TRACK RECORD (RECENT 2 YEARS)

YEAR COMPANY VESSEL TYPE DWT COUNTRY MAKER SHIPYARDS

2017 Solvang ASA LPGC 18,110 Norway Optimarin PaxOcean Singapore

2017 Hartmann Schiffahrts Gmbg & Co KG

LPGC 9,133 Germany Qingdao Headway Technology

PaxOcean Singapore

2018 Mediterranean Shipping Company Container 117,247 Italy Alfa Laval PaxOcean Zhoushan

2018 Mediterranean Shipping Company Container 73,355 Italy Alfa Laval PaxOcean Zhoushan

2018 Ahrenkiel Steamship GmbH & Co.KG

Container 55,313 Germany Optimarin PaxOcean Zhoushan

2018 SDSC Ship Management Co., Ltd. Bulk Carrier 94,710 China Sun-Rui PaxOcean Zhoushan

2018 SITC Ships Management Co.,Ltd Bulk Carrier 76,202 China Sun-Rui PaxOcean Zhoushan

2018 John T. Essberger Gmbh & Co. KG Bulk Carrier 34,274 Germany Alfa Laval PaxOcean Singapore

2018 V-Ships Monaco Research Survey 1,506 United Kingdom Alfa Laval PaxOcean Singapore

PAX_SOLUTIONS – EGCS RETROFIT CAPACITY

SHIPYARDS SINGAPORE BATAM ZHOUSHAN

CAPACITY 20 SCRUBBERS A YEAR 20 SCRUBBERS A YEAR 50 SCRUBBERS A YEAR

AVAILABILITY FROM IMMEDIATE IMMEDIATE IMMEDIATE

ON-SITE SCRUBBERFABRICATION/ ASSEMBLY

YES YES YES

RETROFITTING(Max. Size)

BERTH – PANAMAXDOCK – SUPRAMAX

BERTH – VLCCDOCK – PANAMAX

BERTH – ULOCDOCK – ULOC

CLASS (APPROVAL) ABS, DNV, LR, NK ABS, DNV, LR, NK ABS, DNV, LR, NK

CURRENT ORDERS 4 10 29

PAX_SOLUTIONS – 3D SCANNING FOR SCRUBBER RETROFIT TRACK RECORD YEAR VESSEL VESSEL TYPE DWT

Jun-2018 Pac Schedar General Cargo 26,406

Jul-2018 Ikan Bawal Bulk Carrier 83,476

Aug-2018 Jubilant Devotion Bulk Carrier 117,549

Aug-2018 Ikan Pulas Bulk Carrier 63,590

Aug-2018 Pac Suhail General Cargo 27,230

Sept-2018 Ikan Parang Bulk Carrier 56,618

EGCS (Exhaust Gas Cleaning System)INTRODUCTION | PROCESS & SOLUTION

EGCS Pros Cons Application

Open

Loop

• Uses seawater for scrubbing; does not usually involve storage or handling of hazardous chemical (caustic soda)

• Comparatively simple system; less equipment/system compared to closed loop

• CAPEX and OPEX relatively low

• Not suitable for low alkalinity water

• Restriction of washwater discharge in certain coastal/port areas

• Large washwater demand

• Vessels operating most of the time in the ocean/open sea.

• Vessels not entering areas with washwaterdischarge restriction.

Closed

Loop

• Independent of operation location –in low alkalinity water; in discharge restricted coastal/port areas

• Effluent is stored onboard for the duration that the tank volumes will permit

• Complex washwater system

• Additional equipment/system for water treatment

• More space required

• Special care for handling and storage of NaOHsolution, a hazardous substance.

• Operation duration limited by effluent tank size

• Relatively higher CAPEX

• Relatively higher OPEX due to use of NaOH and residue handling

• Vessels trading constantly in areas with discharge restriction or low alkalinity Water

Hybrid • Significant flexibility for operating in all regions regardless of seawater alkalinity or temperature

• Effluent may be stored onboard for the duration that the tank volumes will permit

• Complicated system with more components

• More space required

• Handling and storage of NaOH, and residue disposal for closed mode operation

• Highest CAPEX

• Higher OPEX due to use of NaOH and residue handling

• Both in ocean/ open sea and discharge/ operation restricted areas

EGCS - INTRODUCTION

EGCS - INTRODUCTION

OPEN LOOP EGC SYSTEM CLOSE LOOP EGC SYSTEM HYBRID EGC SYSTEM

EGCS - INTRODUCTION

Courtesy: ABS

EGCS - INTRODUCTION

MANUFACTURERS A B C D

INTRODUCTION U-Type U-Type L_SH type, U-Type

PROS Customized product is more compact.Long reference list.

Customized product is more compact.Long reference list.

Short Lead time Customized product is more compact.

CONS Longer lead time due to customize and long order book

Longer lead time due to customize and long order book

Standard Product, heavy, and no flexible for sizing

No long reference list

PRICE RANGES (LR / Panamax)

USD 1.4mil – USD 1.8mil



USD 800k– USD 1.0mil (Conditions applies)

DELIVERY SCHEDULES

18 – 20 Months 16 – 18 Months 12 – 15 Months 6 to 8 Months

EGCS (Exhaust Gas Cleaning System)INTRODUCTION | PROCESS & SOLUTION

EGCS – PAX_SOLUTIONS ENGAGEMENT PROCESS

Select Candidate Vessel

Economic/feasibility Study

Select EGCS Manufacturer

Engineering Design

Contract for EGCS Design & Fabrication

Class Approval

EGCS installation

Commissioning/Testing

After Sale Support

Pax_Solutions3D Scanning / Pre-engineering

EGCS – PAX_SOLUTIONS RETROFIT SCHEDULE

Task/ Schedule (week) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Pre-Study

Finish 3D Scanning

Basic & Detail Design

Basic Design Approval

Production Design

Order EGCS, Design

EGCS Sytem Fabrication

Bulk Material Purchase

Yard Pre-Fabrication

Retrofit - Installation

Commissioning / Test

EGCS Retrofit Work Schedule

Note: above schedule was based on Package D. The schedule subject time place order

3D Scan---Ideal for retrofitting work on existing ship

EGCS - Pre-Engineering

3D scan can be conducted prior to vessel arrival in shipyard

A team of engineers are readily deployable to the ship anywhere in the world

3D scan can be conducted without affecting the normal ship routine

3D scan results can be incorporated into 3D Design for subsequent engineering works

Engineering can work on the proposals or solutions while vessel is underway or working with

Customer head office, or

Technical office, or

Ship crew

No downtime required from the vessel for engineering

Pre-Study to Design ApprovalProcurement to

Delivery of Scrubber

Pre-Fabrication at Yard to Complete

Installation & Testing

Arrange the Scrubber components into the existing ship systems

EGCS - Pre-Engineering to Engineering





EGCS – Retrofit Experience and Engineering





Exhaust Gas System Sea Water System

• Revised piping diagram to be reflected suitable valve and instrument for Scrubber system.

• Below revised exhaust gas system and sea water system are shown for retrofitting Post Panamax vessel.

EGCS - Managing Class Approval

Approval requirements, managed by Pax_Solutions.

1 Exhaust gas cleaning system diagram

2 General arrangement

3 Engine room arrangement plan(Including funnel)

4 Piping diagram related to the EGCS

5 New added room/tanks construction and arrangement plan

6 Electrical system, electrical power balance chart, circuit current calculation, Ex-proof grade

7 Wiring diagram for main circuit of power supply

8 Test procedure for the EGCS on board

9 Others (if class consider it’s necessary)

10 EGCS Vendor will supply these documents:SECP -- Sox Emissions Compliance PlanETM-B -- EGC system - Technical Manual for Scheme BOMM -- Onboard Monitoring ManualEGC Record Book





EGC System Fabrication

Order placed, monitoring of fabrication process and inspection of components before Vessel arrival

Open loop Scrubber for MR tanker

Open loop Scrubber for VLCC – Main Engine & Boiler





EGCS - Pre-Retrofitting work in Yard

All class approval drawings to be released to PaxOcean facilities for

• Production drawings, • Material procurement• Pre-Fabrication of work before vessel arrival.





EGCS – Execution from Design to Implementation

• Housing of Scrubber to be prefabricated.

• This shall include support structure, scrubber, exhaust

gas pipes, sea water pipes and other necessary accessories.

• Exhaust pipes might have interference with lifeboat

platform.





PROPOSAL AND NEXT STEPS

EGCS – NEXT STEPS

SUBMIT LETTER OF INTEREST & COMPLETE LIST OF INTENDED VESSEL

PAXOCEAN TO PROVIDE ENGINEERING OFFER AND HIGH LEVEL TURNKEY PAX_SOLUTIONS QUOTATIONS

CONTRACT SIGNING

(ENGINEERING SERVICES)

3D SCANNING & SELECTION OF MAKER

PLACED ORDER TO BOOK FACILTIIES SLOT OF SHIPYARD AND SCRUBBER MAKER

WEEK 1 – WEEK 2

WEEK 1 – WEEK 2

WEEK 3

WEEK 3 – WEEK 4

WEEK 3 – WEEK 8

Thank Youwww.paxocean.com

Corporate Office : No. 1 Kim Seng Promenade

#07-02

Singapore 237994

Tel : (65) 6737 7300

Email : [email protected]

PaxOcean Group

pax solutions · lng and other alternative fuels • clean fuel meets 0.1% sox requirements ......

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