Meeting the Challenge: Ballast Water Management

1. Meeting the Challenge:Ballast Water Management Jim Mackey Hyde Marine, Inc. NAMEPA Sustainable Maritime Development Conference 30 October 2013

2. Introduction - Hyde Marine • Subsidiary of Calgon Carbon Corp. • Hyde Marine maritime equipment supplier since 1865 • Experience in ballast water management since 1996 • First technology accepted into USCG STEP in 2008. • One of 1st IMO Type Approved BWTS (April 2009) by MCA (UK Flag) • One of first to get USCG Alternative Managment System (AMS) Approval (April 2013) • Currently 280 units sold, including 30 retrofit projects 6 GUARDIAN Systems for Royal Navy CVF Carriers USCG STEP Approval Coral Princess USCG AMS Approval First BWTS installed M/S Regal Princess First Hyde GUARDIAN M/S Coral Princess CCC acquisition Hyde Marine & Univ. Michigan BW Study 1996 1998 2000 2002 2004 2006 2008 2010 2012 2013 GUARDIAN Modular System M/S Celebrity Mercury >200 units sold BWTS Installed on 4 commercial ships IMO Type Approval Great Lakes BWT Demo Project

3. The issue To stop the spread of aquatic invasive species through the management of ships’ ballast water. • 3 to 5 BILLION tons of ballast water annually. • Thousands of species of plants and animals found in ballast water. • It is estimated that a new species • is introduced somewhere in the world every 9 weeks. • Invasions likely irreversible.

4. Regulations U.S. Coast Guard • Implemented June 23, 2012 • All commercial ships >1600 GT discharging ballast in U.S. waters • BWTS must have AMS approval or full USCG approval • New Builds starting 1 Dec 2013, Retrofit starting 1 Jan 2014 • Ratification pending • D2 standards enforced 1yr after ratification • Applies to all vessels above 400 GT excluding military vessels • Retroactive for new builds built after 2009 with <5000 m3 ballast capacity and all new builds built after 2012 • Vessels built before 2009 with ballast capacities 1500-5000m3 starting 2014 and with capacities <1500m3 and >5000m3 starting 2016 International Maritime Organization (IMO) • e.g. Great Lakes, Malaysia, Australia, etc. • Varies from ballast water exchange to full D2 standard; investigate port destinations Local Regulations

5. Why haven’t ship owners rushed out to buy Ballast Water Treatment systems? • Depressed global shipping market. • Delayed IMO BWMC ratification. • Uncertainty caused by US State and Federal regulations • Lack of harmonization between IMO and USCG • Confusion about US EPA/USCG Regulations • Evolving USCG Type Approval/ETV testing process • USCG Alternative Management System (AMS) is no guarantee of USCG Type Approval  Risk to owner. • Potential higher standards in future  Risk to owner

6. BWTS are expensive and difficult to install, increase cost and complexity of ship operations, and offer no ROI. • MANY questions remain for the owner: • Class/Flag requirements. Plan Approval. Risk Assessment. • Port State Control requirements and expectations. • Sampling and compliance testing challenges. • Equipment performance and reliability. Limited data in all operating conditions and in continuous operation.

7. Time for a reality check • US EPA and USCG Regulations are coming into force starting in January 2014. Ship owners who visit US ports face rapidly approaching compliance deadlines. The train is coming!

8. Retrofit challenge • Deciding when to start and how to proceed... USCG/EPA IMO? ? Start Now. Gain experience.

9. Retrofit Timeline • System Selection • Pre-Engineering • Ship Visit / Walkthrough • Negotiation and purchase • Site-specific engineering • Submittals • System Delivery • Pre-Fabrication / Prep • Installation • Commissioning Base Timeline for Installation: 270 Days

10. Equipment Selection • Equipment selection is a complex issue. • Choose a reliable BWTS Manufacturer. Experience, reputation, financial strength, service network. • Approvals and Certifications. Test results, and transparency of data. • CAPEX and OPEX. • Choose appropriate Technology for the type and crew • Choose appropriate Technology for the expected operating environment route of vessel. • Safety of vessel and crew.

11. Filters – efficiency and reliability. UV - Low or medium pressure Electrochlorination Advanced Oxydation Chemical Ozone Deoxygenation Others Treatment Process

12. Installation Challenges • Limited installation resources in the marine engineering and installation sectors. • Need to develop the people and skills • Need to continue to develop new tools and techniques • Considerations • Ballast pump flow rate and pressure • Available electrical power • Available space for equipment • Optimal piping arrangement • Access into the machinery space • Is a dry-docking needed or install by riding crew • Communication with vessel automation system • If chemicals are required where to install tanks

13. New Tools – Laser Scanning and 3D Modeling

14. Operational Challenges • Considerations • Effect on vessel operation & turn-around • Maintenance intervals and downtime • Specialized training of crew and officers • Water salinity and cold temperature • Managing Extreme conditions - high sediment, algea blooms, etc. • Holding time for chemical treatment. • Ensure active substance are fully neutralized and no chemical is discharged • Special safety and logistical considerations • Unique operations

15. Avoid the Train Wreck • Establish a project team with as much experience as possible. • Project Manager • Engineering partner • Installation partner • Equipment supplier • Begin early. • Make a plan and stick to it!

16. Thank you. sales@hydemarine.com