Are Tankers Green Maritime Outlook Middle East Abu Dhabi 7 April 2009. Erik.Ranheim@INTERTANKO.com Manager Research and Projects. Tanker shipping serving some of the world’s biggest companies.
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AreTankersGreenMaritime Outlook Middle EastAbu Dhabi 7 April 2009
Manager Research and Projects
BP’s approach to managing the environmental impact of its operations is underpinned by the goal of continuous performance improvement
We strive to conduct business in a manner that is protective of the environment, and that is compatible with the environmental and economic needs of the communities in which we operate.
Meeting the world’s growing energy needs and protecting the environment requires new technology, new partnerships and new ways of operating.
How to produce energy in environmentally responsible ways
VOC = Volatile
ODS = Ozone
NOx, SOx, PMAnnex VI
Shipping energy efficient
Source:Ministry of Land, Infrastructure and Transport (Japan): The Survey on Transport Energy 2001/2002 MOL (Japan): Environmental and Social Report 2004
g per kWh
Source: Lloyd’s Register
Fuel efficiency in shipping has has improved
There has been strong growth in shipping
1000 million tonnes oil equivalents
* Ships not punished if required fuel not available
**Guidelines to asses compliance if BDN data is challenged by PSC or lab test results
Source: INTERTANKO/BP Review
We are involved in transportation – not waste treatment
Emission Control Area (ECA)1.0% limit
Global 3.5% limit
Global 0.5% limit
No measures against ships that do not receive adequate supply
Current regulation Tier I: existing ships built after 2000, base line
Tier II:15.5% - 21.8%reductionships built on, after 1 Jan 2011
Tier II: 80%reduction ships built on, after 1 Jan 2016Power output > 750 kW
In Emission Control Areas (ECAs) ONLY
Tier I: ships built 1990s engine>5000 kWh, cylinders = >90 ltrs
Many preconditions: engine rating, fuel consumption, durability, cost/benefit, availability of efficient upgrading system , upgrading at the ship’s first renewal survey
Cleaner, Simpler and more Efficient ships
No general agreement on how to regulate GHG emission from shipping
40 - 80 % increase if
World Fleet Energy Consumption
20 - 30 % absolute reduction onshore
Later the situation is said to be much more serious that outlined in The Stern Report
Lord Stern of Brentford
Sea trial Esther Spirit
To be based on, installed power, specific fuel consumption, correction factors to account for specific design elements, speed, dwt, the contribution from auxiliary machinery
*Wants “common but differentiated responsibilities” agreed under UNFCCC and the Kyoto Protocol.
*smallest planes excluded
** Reduction target based of average emissions 2004-06
Europe basis for shore based ETS - decided aviation ETS - shipping?
On the "Cap and Trade" system was easy to implement for major sources of emissions, but harder to implement for the multitude of small sources. It is also giving rise to distortions and transactions costs. A key issue is how to allocate emission rights, which are a valuable asset, worth perhaps $2 trillion annually (or 5% of global GDP). This issue has become a major stumbling block in reaching a global agreement, and the attempt to avoid taking on full implications of this issue is one of the reasons for distortionary policies (or for carbon in different uses being priced differently).
Joseph StiglitzNobel prize economics
Professor at Columbia University (United States) Formerly Chief Economist at the World Bank
The quotas system has already contributed with investments in the non-Annex I countries which will reduce of CO2 emission by 1,800 m tonnes (1.2% annually) for the period 2008-12
Word emission 2004 27,000 m ts, today some 30,000 m ts
The 400% increase in bunker prices over the last 4 years untilAug 2008 provided the shipping industry with a significant economic driver to improve its energy efficiency and thus reduce CO2 emission
Prices HFO 380 CST, Fujairah
Dollar per litre
’000 ts pollution
Source: INTERTANKO, based on data from LMIU, ITOPF + others
’000 ts pollution
Source: ITOPF + others
Or have necessary measure been implemented to ensure that catastrophes do not repeat themselves?
Lack of good incident data prevent us from doing accurate analysis.
Let’s look at some indications
Segregated Ballast Tank Coated Areas
260,000 ton VLCC
HULL TYPE Square Meters
Double Hull 225,000
On March 24, 1989, the tanker Exxon Valdez, en route from Valdez, Alaska to Los Angeles, California, ran aground on Bligh Reef in Prince William Sound, Alaska spilling 35,000 tonnes of Prudhoe Bay crude oil.
Failure of navigation, deviation from separation zones (got permission to use inbound lane), inexperienced and tired officer on the Bridge, Captain who was in his cabin had been drinking alcohol.
People do not work in a vacuum and the company culture, training, systems, procedures and technology has to be take into account that mistakes will be made.
Kashmir due Jebel Ali after collision
Ballast Water Management
Ms Littlefield (IUMI president)said there were strong signs that the safety culture at sea was taking root. But she warned Ship operators are being buffeted from all sides in the growing economic crisis. But to cut corners on maintenance or training can only have one result in the long term: more casualties, higher claims on insurers, and higher premium and deductible levels for shipowners.
IUMI, in its first snapshot of 2008
The sea get sick, but it never dies
Healing is a matter of time,
But also of opportunity