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MARINE LOG GLOBAL GREENSHIP CONFERENCE SEPTEMBER 21, 2007

MARINE LOG GLOBAL GREENSHIP CONFERENCE SEPTEMBER 21, 2007. WHAT’S ON IMO’S ENVIRONMENTAL AGENDA JOSEPH ANGELO DIRECTOR, REGULATORY AFFAIRS AND THE AMERICAS. ENVIRONMENT ISSUES. SHIP RECYCLING BALLAST WATER ANTI-FOULING SYSTEMS AIR EMISSIONS NEW WORK ITEMS. SHIP RECYCLING.

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MARINE LOG GLOBAL GREENSHIP CONFERENCE SEPTEMBER 21, 2007

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  1. MARINE LOGGLOBAL GREENSHIP CONFERENCE SEPTEMBER 21, 2007 WHAT’S ON IMO’S ENVIRONMENTALAGENDA JOSEPH ANGELO DIRECTOR, REGULATORY AFFAIRS AND THE AMERICAS

  2. ENVIRONMENT ISSUES • SHIP RECYCLING • BALLAST WATER • ANTI-FOULING SYSTEMS • AIR EMISSIONS • NEW WORK ITEMS

  3. SHIP RECYCLING NOV 2005 IMO AGREES TO DEVELOP NEW TREATY FOR SHIP RECYCLING TO REGULATE: • DESIGN, CONSTRUCTION, OPERATION AND PREPARATION OF SHIP FOR SAFE, ENVIRONMENTALLY SOUND RECYCLING • OPERATION OF RECYCLING FACILITIES IN SAFE, ENVIRONMENTALLY SOUND MANNER • APPROPRIATE ENFORCEMENT OF BOTH THROUGH CERTIFICATION/REPORTING

  4. SHIP RECYCLING • MARINE ENVIRONMENT PROTECTION COMMITTEE (MEPC) OF IMO IS DEVELOPING NEW TREATY • INITIAL DRAFT TREATY HAS BEEN PRPARED AND IS UNDERGOING REVIEW AND REVISION • TARGET IS TO ADOPT NEW TREATY AT INTERNATIONAL CONFERENCE IN 2009 WITH ENTRY INTO FORCE IN 2012(?)

  5. SHIP RECYCLING MAJOR ELEMENTS OF TREATY (SHIP)– • CONTROL OF SHIP’S HAZARDOUS MATERIALS (PROHIBIT OR RESTRICT) • SHIP INVENTORY OF HAZARDOUS MATERIALS • SHIP RECYCLING PLAN • READY FOR RECYCLING • SHIP SURVEYS AND CERTIFICATION • REPORTING (NOTIFY OF INTENT)

  6. SHIP RECYCLING MAJOR ELEMENTS (FACILITY) – • STANDARDS FOR DESIGN/OPERATIONS • DOCUMENT OF AUTHORIZATION • RECYCLING MANAGEMENT PLAN • SAFE AND ENVIRONMENTALLY SOUND OPERATIONAL PROCEDURES • EMERGENCY PREPAREDNESS AND RESPONSE PLAN • WORKER SAFETY AND TRAINING • REPORTING (UPON COMPLETION)

  7. SHIP RECYCLING NEXT STEPS: • JAN 2008 – INTERSESSIONAL WORKING GROUP MEETING IN NANTES, FRANCE • APRIL 2008 – MEPC 57, ARTICLE BY ARTICLE, REGULATION BY REGULATION REVIEW OF TREATY • OCT 2008 – MEPC 58, FINALIZE DRAFT CONVENTION • APRIL 2009 (?) – DIPLOMATIC CONFERENCE

  8. BALLAST WATER • INTERNATIONAL CONVENTION FOR THE CONTROL AND MANAGEMENT OF SHIPS’ BALLAST WATER (BWM CONVENTION) ADOPTED IN 2004 • ENTRY INTO FORCE CONDITIONS – 30 STATES, REPRESENTING 35% OF THE WORLD’S GROSS TONNAGE • CURRENTLY, 10 STATES, 4% OF THE WORLD’S GROSS TONNAGE (NOT USA)

  9. BALLAST WATER REGULATION D-2 BALLAST WATER STANDARD – - 10 VIABLE ORGANISMS PER CUBIC METER GREATER THAN OR EQUAL TO 50 MICROMETERS - 10 VIABLE ORGANISMS PER MILLILITER LESS THAN 50 MICROMETERS AND EQUAL TO OR GREATER THAN 10 MICROMETERS

  10. BALLAST WATER REGULATION B-3 SCHEDULE FOR COMPLIANCE WITH D-2 STANDARD: • 2009 – SHIPS CONSTRUCTED IN OR AFTER 2009 WITH BW CAPACITY LESS THAN 5,000 CM • 2012 – SHIPS CONSTRUCTED IN OR AFTER 2012 WITH BW CAPACITY OF 5,000 CM OR MORE • 2014 – SHIPS CONSTRUCTED BEFORE 2009 WITH BW CAPACITY BETWEEN 1,500 & 5,000 CM • 2016 – SHIPS CONSTRUCTED BEFORE 2009 WITH BW CAPACITY LESS THAN 1,500 OR GREATER THAN 5,000 CM

  11. BALLAST WATER REGULATION D-5 REQUIRES REVIEW OF STANDARD THREE YEARS BEFORE EARLIEST EFFECTIVE DATE (2006) TO DETERMINE IF TECHNOLOGIES ARE AVAILABLE TO MEET STANDARD REVIEW GROUP HAS MET (THREE TIMES) AND CONCLUDED - “A LIMITED NUMBER OF TECHNOLOGIES WILL BE AVAILABLE TO MEET THE FIRST IMPLEMENTATION DATE (2009)”

  12. BALLAST WATER REVIEW GROUP REPORT ON APPROVALS - TYPE APPROVAL NONE - FINAL APPROVAL 1 (PUREBALLAST SYSTEM) - BASIC APPROVAL 6 • UNDER DEVELOPMENT 8 (DO NOT NEED IMO APPROVAL) (SYSTEMS USING “ACTIVE SUBSTANCES” REQUIRE IMO “FINAL” APPROVAL)

  13. BALLAST WATER SHIPOWNERS FACE A CONVENTION REQUIREMENT TO INSTALL EQUIPMENT THAT MEETS A STANDARD BY A CERTAIN DATE,BUT THE UNAVAILABILITY OF BALLAST WATER TREATMENT TECHNOLOGIES PREVENTS THE SHIPOWNER FROM COMPLYING, RESULTING IN THE POSSIBILITY OF BEING PENALIZED

  14. BALLAST WATER MEPC 57 (MARCH /APRIL 2008) EXPECTED TO MAKE FINAL DECISION, HOWEVER LEGAL MECHANISM TO CORRECT ENFORCEMENT PROBLEM REMAINS – - EXPEDITE PROCESS TO AMEND BWM CONVENTION - MEPC RESOLUTION CALLING ON STATES NOT TO ENFORCE FIRST COMPLIANCE DATE - DEVELOP NEW PROTOCOL WITH NEW COMPLIANCE DATES

  15. BALLAST WATER NEXT STEPS BY MEPC: • DECIDE IF TECHNOLOGIES ARE AVAILABLE TO MEET D-2 STANDARD BY B-3 COMPLIANCE DATES; • IF NOT, DECIDE WHAT CHANGES NEED TO BE MADE TO B-3 COMPLIANCE SCHEDULE (OR D-2 STANDARD?); • AGREE ON LEGAL MECHANISM TO IMPLEMENT THESE CHANGES

  16. ANTI-FOULING SYSTEMS • INTERNATIONAL CONVENTION ON THE CONTROL OF HARMFUL ANTI-FOULING SYSTEMS ON SHIPS (AFS CONVENTION) ADOPTED IN 2001 • ENTRY INTO FORCE CONDITIONS – 25 STATES, REPRESENTING 25% OF THE WORLD’S GROSS TONNAGE • CURRENTLY, 24 STATES, 16.63% OF THE WORLD’S GROSS TONNAGE

  17. ANTI-FOULING SYSTEMS • AT MEPC 56 (JULY 2007) PANAMA (21.46%) ANNOUNCED THAT FOLLOWING APPROVAL FROM THEIR PARLIAMENT, THEY WILL ACCEDE “VERY SOON” • CONVENTION WOULD ENTER INTO FORCE ONE YEAR AFTER PANAMA DEPOSITS ITS RATIFICATION • US IS CURRENTLY NOT A PARTY

  18. AIR EMISSIONS • SEPT 1997 – IMO ADOPTS ANNEX VI TO MARPOL, REGS FOR THE PREVENTION OF AIR POLLUTION FROM SHIPS • MAY 2005 – ANNEX VI ENTERS INTO FOR INTERNATIONALLY(USA CURRENTLY NOT PARTY) • JULY 2005 – MEPC 53 DECIDES ANNEX VI SHOULD BE REVISED TO REDUCE AIR EMISSIONS FROM SHIPS

  19. AIR EMISSIONS IMO ANNEX VI REVISION TIMETABLE • MEPC 54 (March 2006) – Proposals for revision. The work is delegated to BLG Sub-Committee • BLG 10 (April 2006) – Initial review of the proposals and documents (over 30 documents) • Two correspondence groups (April – October 2006) • INTERSESSIONAL MEETING OSLO (November 2006) • BLG 11 (April 2007) – consider draft proposals for revised Annex VI, the NOx Code and Guidelines • MEPC 56 (July 2007), BLG 12 (Feb 2008) & MEPC 57 (March 2008) – final rounds for approval

  20. AIR EMISSIONS - US • FEB 2003 - EPA ISSUES REGULATIONS FOR ENGINES INSTALLED ON US SHIPS THAT MIRROR ANNEX VI STANDARDS • PREAMBLE STATES - EPA COMMITTING TO TAKE FURTHER ACTION FOR MARINE DIESEL ENGINES BY APRIL 2007 ON US AND FOREIGN FLAG SHIPS • EPA INDICATES THEY WILL GIVE IMO DISCUSSIONS ON REVISION OF ANNEX VI TIME TO MATURE BEFORE ACTING

  21. AIR EMISSIONS - US APRIL 27 – US EPA ISSUES DIRECT FINAL RULE FOR LARGE MARINE ENGINES • EXTENDS TO DECEMBER 17, 2009 THE DATE FOR ADOPTION OF FINAL RULE TO REGULATE NEW ENGINES AT OR ABOVE 30 LITERS/CYLINDER DISPLACEMENT • STATES EPA IS WORKING THROUGH IMO TO DEVELOP MORE STRINGENT INTERNATIONAL AIR EMISSION STANDARDS ON SHIPS

  22. AIR EMISSIONS • COVERED BY ANNEX VI • Oxides of Nitrogen (NOx) – create Ozone • Sulphur Oxides (SOx) – create acidification • Hydrocarbons (HC) – gas, soot and some particulates • Volatile Organic Compounds (VOC) • Refrigerant Gases • NOT COVERED (CURRENTLY) BY ANNEX VI • Particulate Matter • Carbon Dioxide (CO2) • Carbon Monoxide (CO)

  23. AIR EMISSIONS PROPOSALS FOR AMENDMENTS - Lower limits for SOx & NOx emissions - SECAs with lower S cap (1.0% or 0.5%) - NOx emission limitation on existing engines - NECAs – NOx controlled areas - Restrict Particulate Matters (PM) emissions - Restrict on VOC emissions from cargo oil tanks - Restriction on CO2 emissions

  24. AIR EMISSIONS • INITIAL PROPOSALS FOCUSED ON AIR EMISSIONS STANDARDS AND ABATEMENT EQUIPMENT • FUEL STANDARD WAS NOT BEING CONSIDERED • MAIN PURPOSE OF INTERTANKO SUBMISSION WAS TO “PRESENT ISSUES THAT MERIT FURTHER DISCUSSION BY IMO WORKING GROUP WHEN CONSIDERING REVSION OF ANNEX VI OF MARPOL”

  25. AIR EMISSIONS INTERTANKO SUBMISSION • DISTILLATE FUELS WITH SULPHUR CAP: - FROM [2010], MAXIMUM OF 1% SULPHUR - FOR ENGINES INSTALLED AFTER [2015], MAXIMUM OF 0.5% SULPHUR • GLOBAL SULPHUR EMISSION CONTROL AREA • REVISION OF CHECKING AND MONITORING OF COMPLIANCE

  26. AIR EMISSIONS IMO WORKING GROUP PROPOSALS – SOX A. Status Quo - No change B. Sulphur Emissions Control Area (SECA): • A global sulphur cap (unchanged or lower value) • SECA sulphur cap lowered in two tiers: • 1.0% in [2010] • 0.5% in [2015] C1. Change to distillate fuels (ref. INTERTANKO): • Use of distillate fuels for all ships • A global sulphur cap in two tiers: • 1.0% in [2012] • 0.5% in [2015] • Include in MARPOL Annex VI the specification for the distillate fuel to be used by ships C2. Global cap – As C1 but allows use of residual fuel + scrubbers

  27. AIR EMISSIONS • IMO BULK LIQUID & GASES (BLG) SUBCOMMITTEE MET APRIL 16-20 TO CONSIDER THE OUTCOME OF ITS NOVEMBER WG MEETING • ADDITIONAL SUBMISSIONS MADE BY THE US, NORWAY, SWEDEN, ICS, OCIMF, BIMCO, FOEI AND OTHERS

  28. AIR EMISSIONS USA PROPOSAL • SOx & PM – globally, consider INTERTANKO proposal for MDO [with 0.5% S cap] • SOx & PM – emission limits at [200] nm from shore as from 2011 [0.1% S cap] • NOx standards for existing (pre-2000) engines - 20% reduction • NOx for new engines: • Tier II - 15% – 25% as from 2011 • Tier III - 80% only in defined areas (NECAs) as from 2016

  29. AIR EMISSIONS BIMCO PROPOSAL RETAIN THE CURRENT ANNEX VI STRUCTURE, BUT LOWER EMISSION LIMITS GLOBALLY AND IN SECAs GLOBALLY - 3% SULPHUR CAP IN 2012 - 1.5% SULPHUR CAP IN 2016 - USE TREATMENT TECHNOLOGIES IN SECAs SHIPS SHOULD USE MDO ONLY - 1% SULPHUR CAP IN 2011 - 0.5% SULPHUR CAP IN 2015 - ALSO USE TREATMENT TECHNOLOGIES

  30. AIR EMISSIONS OUTCOME FROM BLG MEETING: • RETAIN 6 OPTIONS, 4 FROM WG MTG PLUS US AND BIMCO OPTIONS; AND • IMO SECRETARY GENERAL WILL PROPOSE STUDY TO DETERMINE THE EFFECTS OF THE OPTIONS

  31. AIR EMISSIONS MEPC 56 MET IN JULY 9 – 13 “NOTES” OUTCOME OF BLG 11 NEXT STEPS AT IMO: • IMO SG INITIATES STUDY • BLG WORKING GROUP MEETING IN OCTOBER IN GERMANY • BLG MEETS FEBRUARY 2008 • MEPC 57 MEETS MARCH/APRIL 2008

  32. AIR EMISSIONS TWO BASIC ALTERNATIVES • “CLEAN” FUELS - Low sulfur residual fuel oils (LSRFO) - Distillate fuels (MDO) And/Or • SHIPBOARD TECHNOLOGY

  33. AIR EMISSIONS LSRFO FUELS • Increase storage capacity for LSRFO • Segregation of HSFO and LSF/MDO tanks • Requires fuel switching • Additional storage for lower BN number lube/cylinder oil • Manifolds modifications for bunkering & fuel sampling • Requires the use of exhaust gas scrubbers • Availability (?) • Cost (?)

  34. AIR EMISSIONS DISTILLATE FUELS (MDO) • Applies to ALL existing ships/engines • With no other measure, immediately reduces: • SOx emissions by 80% to 90% • PM emissions by 90% • NOx emissions by 10% to 15% • Reduces fuel consumption by some 4% for ALL Ships • Facilitates further NOx reductions by in-engine modifications for IMO’s Tier II & III • Eliminates the need of retrofitting of additional bunker storage capacity and associated piping • Eliminates current onboard fuel treatment plants - additional cargo volume

  35. AIR EMISSIONS OTHER ENVIRONMENTAL BENEFITS OF MDO • SIGNIFICANTLY REDUCES ONBOARD ENGINEROOM GENERATED WASTE • “CLEANER” WASTE, FREE OF HAZARDOUS ELEMENTS FOUND IN RESIDUAL FUELS • NEGATES NEED FOR ABATEMENT TECHNOLOGY AND ASSOCIATED WASTES AND DISPOSAL OF SUCH WASTE • POTENTIAL BUNKER SPILLS SIGNIFICANTLY LESS HARMFUL

  36. AIR EMISSIONS SAFETY BENEFITS OF MDO • LESS INCIDENTS WITH ENGINE BREAKDOWNS DUE TO POOR QUALITY FUELS • NO NEED FOR COMPLEX FUEL CHANGE OVER OPERATIONS • NO RISK OF INCOMPATIBILITY OF BLENDED FUELS • SAFER WORKING ENVIRONMENT FOR SHIPS CREW

  37. AIR EMISSIONS UNRESOLVED ISSUESRELATED TO MDO • AVAILABILITY • COST • CO2

  38. AIR EMISSIONS SHIPBOARD TECHNOLOGIES • Scrubber technologies are not yet proven and have their own environmental as well as economic and availability challenges • “Cold ironing” - with associated problems like lack of international standards for • voltage/frequency of power • shore/ship connection systems and • compatibility with shipboard requirements for power supply for hydraulic power sources (compressors needing up to several MW)

  39. AIR EMISSIONS EXHAUST GAS SCRUBBERS Filters for PM Storage tank for solid waste Water waste treatment plant

  40. AIR EMISSIONS - For a main engine of 20 MW, seawater up to 22,000 t/day needs to be processed(45 t/hr/MW*) (supplemented with some 6,500 t/day to lower pH) - Up to 100 kg/day of hazardous sludge (5kg/day/MW*) * data supplied by Krystallon

  41. AIR EMISSIONS SCRUBBERS • EXTREMELY LARGE IN SIZE TAKING CONSIDERABLE SPACE ON SHIP • MORE THAN ONE NEEDED FOR MOST SHIPS, UP TO FOUR FOR LARGER SHIPS • MASSIVE AMOUNTS OF WATER NEEDED ON A CONTINUAL BASIS • NEW WASTE STREAM FROM SHIP THAT MUST BE DISPOSED AT SEA OR ASHORE • ADDITIONAL SHIP OPERATIONAL PROCESSES AND PROCEDURES FOR ALREADY OVERWORKED CREW

  42. AIR EMISSIONS • SCRUBBER INSTALLATION • 4 scrubbers/ship • time to retroift – at least 30 days/ship • 100 shipyards (ships over 30,000 dwt) • RETROFIT ( 1 ship/shipyard every day): • for 10,00O ships: 8+ years • for 15,000 ships: 12.5 years • RETROFIT ( 2 ships/shipyard every day): • for 10,00O ships: 4 years • for 15,000 ships: 6+ years

  43. AIR EMISSIONS UNRESOLVED ISSUESRELATED TO SCRUBBERS • AVAILABILITY • COST • CO2

  44. AIR EMISSIONS FOR THOSE THAT ADVOCATE A CHOICE FOR COMPLIANCE, ARE THEY CERTAIN THEY WILL HAVE A CHOICE?? WILL THE FUEL PRODUCERS ENSURE ADEQUATE SUPPLIES OF MDO WORLDWIDE FOR THOSE SHIPOWNERS THAT DO NOT WISH TO USE SCRUBBERS?? OR WILL ALL SHIPOWNERS HAVE TO INSTALL AND USE SCRUBBERS IN CASE MDO IS NOT AVAILABLE WORLDWIDE??

  45. AIR EMISSIONS WHO SHOULD BE RESPONSIBLE FOR VERIFICATION AND COMPLIANCE? • SHIPOWNER for: • Cost and installation of technology • Combustion process • Exhaust gas emission standards • Disposal of by-products OR • FUEL SUPPLIER for: • Quality of fuel supplied AND • ENGINE MANUFACTURERS • Facilitate engine design that copes with a predictable rule development on lowering emissions

  46. AIR EMISSIONS Marine Diesel Oil ADDRESSES THE ROOT CAUSE OF AIR POLLUTION FROM SHIPS RATHER THAN THE EFFECTS OF CLEANING UP THE AIR POLLUTION ON THE SHIP AFTER IT HAS BEEN CREATED

  47. AIR EMISSIONS HOPEFULLY THE IMO SECRETARY GENERAL’S “EXPERTS” STUDY GROUP WILL RESOLVE THESE ISSUES SO MEPC 57 CAN MAKE A DECISION ON THE REVISION OF ANNEX VI

  48. NEW WORK ITEMS • DEVELOPMENT OF MEASURES FOR MINIMIZING THE TRANSLOCATION OF INVASIVE AQUATIC SPECIES THROUGH BIFOULING OF SHIPS • ELECTRONIC MEANS TO CONTROL OIL DISCHARGE FROM SHIPS • NEAR MISS REPORTING

  49. NEW WORK ITEMS • AUSTRALIA, NEW ZEALAND AND THE UK PROPOSE THE DEVELOPMENT OF INTERNATIONAL MEASURES TO MINIMIZE THE TRANSLOCATION OF INVASIVE AQUATIC SPECIES THROUGH BIOFOULING OF SHIPS • MEASURES COULD INCLUDE GUIDELINES, NEW CONVENTION OR LINKS TO EXISTING CONVENTIONS (AFS or BWM CONVENTIONS) • ISSUES INCLUDE PAINT APPLICATION, IN WATER CLEANING, MINIMIZING BIOFOULING AND STANDARDS FOR MAINTENANCE • HIGH PRIORITY ITEM ADDED TO BULK LIQUIDS AND GASES (BLG) SUBCOMMITTEE AGENDA

  50. NEW WORK ITEMS • DOMINICA PROPOSES ELECTRONIC OIL DISCHARGE MONITORING SYSTEM TO SUPPLEMENT/REPLACE OIL RECORD BOOK • SYSTEM WOULD ELECTRONICALLY RECORD ALL DISCHARGES OVERBOARD OR TO A RECEPTION FACILITY • ELECTRONIC ALARMS FOR MONITORING VALVES, DETECT TAMPERING AND FAILURE OF OIL DISCHARGE SYSTEM • HIGH PRIORITY ITEM ADDED TO SHIP DESIGN AND EQUIPMENT (DE) SUBCOMMITTEE AGENDA

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