SECA 1st of January 2015

Heading comes hereGrenaa-Varberg

The ”local route”

Exhausts from shipping

IMO MARPOL and Annex IV

2005

IMO MARPOL Annex VI comes to force, SECA Areas are defined.

Annex VI is revised with a significant and progressive Reduction of sulphur limits both globally and within SECA’s

Annex VI comes into force< 1% Sulphur in SECA’sEU also sets new sulphur limits in EU ports

New limitations for Sulphur < 0.1 % In SECA Zones

New limitations for Sulphur globally < 0.5%

2008 2010 2015 2020 or 2025*

SECA and ECA a global matter

NEW SLIDE

Alternative What Compliance Cost increase Ship application Challenges

Switch over to Marine Gas Oil (MGO)

SOxNOx?PM?

Yes(bunker)

Can and will be done day 1

Uncertain supply => future price levels?

Install exhaust gas cleaning equipment

Scrubbers SOxNOx?PM?

Yes(investment)

Conversions only possible on part of fleet

Maritime application still under development

Switch over to new types of fuel

LNG SOxNOxPM

Yes(investment)

Primairly new builds, but conversions may be possible

Supply & distribution ashore

Methanol SOxNOxPM

Yes(investment and bunker ?)

Both new builds and conversions

Stena project is running.

Summary of alternatives for Stena Line

Latest developmentStena Scanrail:

•Test with methanol in auxilary engine stopped Questionmark on DME technique.

Stena Germanica:

•Methanol as fuel based on dual fuel direct injection (10% MGO). Planned start is 1st qtr 2015

LNG

•Most suitable for newbuildings. Stena follows the development.

Scrubbers:

•Does not solve the issues arround particals and Nox.

•At the moment no possibilty to collect waste water (diluted sulphur acid) from scrubbers in ports facility.

Stena Lines environmental efforts

Energy SavingProgramme

Sun filmson cabin windows

Eco-driving

ISO 14001Certified

Shore connectionsin ports

ReducedCO2 and NOx emissions

Reducedemission to water

How do we get the SECA effect to the cargo ?

1,5% IF380 1,0% LS380 0,1% MGO

BAF per lm Stena Line model

Fixed LSS per lm

Current BAF per lm Additional BAF per lm

Price increase per lm related to spread

New BAF per lm

2015 spread

+

+

2004

Introduction of BAF Introduction of LSS

2010

Spread included in BAF model

2015

How will we apply this into a new BAF model?

Historic development of 1,0% LSFO last 5y

Avererage last 12m: 612

Historic development of 0,1% MGO last 5y

Average last 12m: 915

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