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SOx and NOx Emissions Abatement, Technology and Experience

Niklas Rönnberg

Marine Client Manager for Finland and the Baltic States

SOx and NOx Emissions Abatement, Technology and Experience

Air Emissions – Industry Perception

• Industry hasn’t been given enough time

• The technology isn’t there

• The technology is unproven

• Too expensive

• Ships are different

Fact or Fiction?

SOx and NOx Emissions Abatement, Technology and Experience

Emissions – Fuel Choice Landscape 2014

Now

Heavy Fuel Oil + Exhaust Gas Cleaning System

Marine Gas Oil 0.1%

1st Generation Biodiesel (availability limited – 22 Mt / year global)

Short to Medium term up to 10 / 15 years

Heavy Fuel Oil + Exhaust Gas Cleaning System

LNG / Methanol / Ethane, LPG / Other gases

Other Equivalents

Hybrid niche (Batteries)

Longer Term 15 – 30 years

2nd and 3rd generation Bio Fuels synthetic fuels – (2020- 2030)

Other Hybrid solutions

Hydrogen

Nuclear (2030-2040?)

Abatement Technologies and Solutions

SOx and NOx Emissions Abatement, Technology and Experience

Air Emissions – Regulation 14 for SOx

SOx and NOx Emissions Abatement, Technology and Experience

SOx Emissions – What are the Costs for compliance?

Indicative example of increased annual costs, based on assumption that ship is in service 300 days per Year with a spread of US$290/T consuming example quantities per day in service

0

1

2

3

4

5

6

7

8

9

10

11

12

10% 25% 50% 75% 100%

Millio

ns

US$

Time Spent Operating in ECA

120T/d

60T/d

30T/d

10T/d

SOx and NOx Emissions Abatement, Technology and Experience

Air Emissions – Regulation 13 for NOx

SOx and NOx Emissions Abatement, Technology and Experience

Technology Status for SOx and NOx abatement systems:

technologies are generally mature and established

SOx and NOx Emissions Abatement, Technology and Experience

Technology Status for SOx and NOx abatement systems:

application in Marine environment is different but not new

• Commercial Application of wet scrubbing – 1930’s

• Commercial application of dry scrubbing -1960’s

• Commercial application of automotive EGR – 1970’s

• Commercial application of non-thermal plasma in power plant – 1990’s

• Commercial application of large SCR in power plant – 1970’s

SCR has been in marine use since 1980’s, marine wet scrubbing has been in development since early 2000’s

Technologies are mature and proven, whilst the marine environment is

different the treatment of exhaust gas to remove pollutants is not new

SOx and NOx Emissions Abatement, Technology and Experience

That the technologies are mature does not mean there are

no challenges

Technical Regulatory Contractual

SOx and NOx Emissions Abatement, Technology and Experience

Technical Challenges

• Integration of de-sulphurising and de-

nitrification techniques

• Back pressure management (particularly for multi-stream installations)

• Efficient installation

• Corrosion

• Automation

• Use of noxious chemicals/substances

• Wash water conditioning and monitoring

• SCR fouling, plugging, poisoning

• Transient load operation

SOx and NOx Emissions Abatement, Technology and Experience

Regulatory Challenges

• IMO vs. Regional Controls

• pH plume verification

• Wash water discharge acceptability

• The nature of using simple emission limits

rather than time weighted averaging

• Micro-deviations, transient compliance

• Commissioning, Trials

• Waste disposal

• Grandfathering rights

• Societal concerns over pollution shift

• Poor understanding of NOx Technical Code

SOx and NOx Emissions Abatement, Technology and Experience

Contractual Challenges

• Contract specification

• Acceptability criteria

• System integration

• Performance

• Automation

• Training

• Installation

As a class society some of the disputes we observe stem from the operator believing they

have agreed to buy “X” and signing a contract

to purchase “Y”

SOx and NOx Emissions Abatement, Technology and Experience

NOx Tier II

SCR EGR Emulsification Advanced

fuel injection

Extreme Miller cycle + charge air

humidification + water in fuel

Tier II dual fuel engine

Pure gas engine

SOx

Wet scrubber

Dry scrubber

Onboard fuel Sulphur

removal

Clean fuel (i.e. LS)

How well SOx and NOx emission control methods work together

Proven Approval needed Possible future Not applicable With conditions

SOx and NOx Emissions Abatement, Technology and Experience

Questions for SOx

Are techniques that have been successfully applied since the 1930’s really new and unproven?

What is the cost of operation on distillate relative to retrofitting or installation from new of SOx abatement?

Is fitting an LNG or methanol fuel package and securing class and stat approval for gas or methanol engines more or less challenging than fitting a scrubber?

SOx and NOx Emissions Abatement, Technology and Experience

Sample Cost

Scenario: a Ro-Pax operating entirely within the Baltic/North Sea ECA

Fuel consumption = 20,500T/yr (22 MW Power)

Fuel Cost IFO 180cSt = US$ 8.876m (at US$433/T)

Fuel Cost MGO = US$13.981m (at US$682/T)

Difference = US$5.105m pa

Minus additional electrical load assumed at 1.5% of power + NaOH (assumed

closed loop operation) = US$4.795m pa saving

Sample EGCS retrofit price range US$5.5 – 7.5m

ROI < 2 years

SOx and NOx Emissions Abatement, Technology and Experience

Questions for NOx

Is it planned to use wet scrubbing and continue to utilise HFO?

What is the operating profile of their vessels?

Is fitting an LNG or methanol fuel package and securing class and stat approval for gas or methanol engines more or less challenging than fitting EGR or SCR or applying techniques such as emulsification?

SOx and NOx Emissions Abatement, Technology and Experience

So, what is the answer to SOx and NOx compliance?

• no one size fits all solution… need to

consider:

• operating patterns,

• financial modelling and

• asset status

This may mean multiple emissions

compliance strategies within a fleet including both clean fuels and

abatement devices.

Lloyd’s Register can assist with developing tailored solutions

and ensuring successful application of emissions abatement!

SOx and NOx Emissions Abatement, Technology and Experience

Summary

• The technology exists, it is mature and it works, Shipping has had over six

years to prepare.

• The price differential between residual fuels and low sulphur oil (c.$300/T)

make flue gas de-sulphurisation economically attractive.

• There are challenges, these are neither insurmountable nor unduly difficult in

the context of complex engineering systems.

• The regulations which govern emissions are being tuned and the regulatory challenges are being addressed.

• All marine diesel engines are designed for MGO.

Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates. Copyright © Lloyd’s Register EMEA. 2014. A member of the Lloyd’s Register group.

Niklas Rönnberg Marine Client Manager M +358 50 440 8630 E niklas.ronnberg@lr.org Lloyd’s Register EMEA Aleksanterinkatu 48 A, 00100 Helsinki, Finland

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