PANAMA MARITIME IX
Initiatives to reduce toxic gas emissions:
perspective of the shipping companies.
Iniciativas para reducir las emisiones de
gases tóxicos: perspectiva de las navieras
Peter M. Swift, MD, INTERTANKO
TANKERS
US
INTERTANKO – the Voice of the Tanker Industry
International Association of Independent Tanker Owners
INTERTANKO represents approximately 80% of the international oil
and chemical fleet
MISSION
• To provide leadership to the Tanker Industry in serving the world
with safe, environmentally sound and efficient seaborne
transportation of oil, gas and chemical products
VISION FOR THE TANKER INDUSTRY
• A responsible, sustainable, respected Tanker Industry, committed
to continuous improvement and constructively influencing its
future
ONE OF THE ASSOCIATION’S PRIMARY GOALS
• Lead the continuous improvement of the Tanker Industry’s
performance in striving to achieve the goals of:
Zero fatalities, Zero pollution, Zero detentions
Round Table of international shipping associations
BIMCO, ICS, INTERCARGO, INTERTANKO
Congratulate the
Panama Maritime Authority
on
Achieving ISO 9001:2000 certification
and
Successful completion of the
IMO voluntary Flag State Audit
PANAMA MARITIME IX
Industry delivering on the
Environmental Challenges
A GOOD NEWS STORY
TANKER SHIPPING A GOOD NEWS STORY
OIL POLLUTION IN 2008
A RECORD LOW
Since records began in 1970
TANKER SHIPPING A GOOD NEWS STORY
All tanker incidents and accidental pollution
Number of incidents
000 ts spills
1050
600
Misc
Security
Fire/Expl
840
Hull & Machinery
480
Grounded
Coll/Contact
630
Oil pollution
360
420
240
210
120
0
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
0
Upward trend in number of incidents reversed, while trade continues to rise
TANKER SHIPPING A GOOD NEWS STORY
Gasoline price at the pump (Dec08/Jan09)
Dollars per litre
1.50
1.20
Long haul freight rate
Marketing*
0.90
Oil price
Tax
0.60
0.30
0.00
.
USA
Japan
Germany
UK
Sources: IEA/Baltic Exchange
Freight cost remains a fraction of delivered cost of oil
Initiatives to Reduce Air Emissions
The Good News Continues
• IMO MARPOL Annex VI Revisions and NOx
Technical Code adopted in 2008
• Good progress at IMO on measures to reduce
Green House Gas emissions
Annex VI Revisions and
NOx Technical Code 2008
• SOx , and hence also Particulate Matter,
emissions will be lowered progressively:
0.5% fuel limit globally by 2020 (latest 2025)
from current 4.5% and 0.1% in Emission
Control Areas from current 1.5 % by 2015
• New NOx limits on existing engines and
progressively stricter limits on new engines
Marine fuel oil quality will be further improved
Further initiatives – More ECAs (?)
 Planned new ECA for 2013
 Could be extended to entire N. A.
 Up to 200 nm on the West Coast
 Plan to require 0.1% or 0.2% S fuels
Revision of MARPOL Annex VI (Pollutants)
DRIVERS FOR CHANGE
• Driven by governments
– IMO member states “prepared” since Convention adopted
in 1997
– Environmental impact often local/regional rather than
global
– EU Sulphur Directive in 1999 & Thematic studies (2000+)
set unilateral challenge
– California (2005) led US programmes
– Local legislation emerged in Norway et al, and pending in
Japan et al
• Environmental Lobby coordinated and effective
• Shipping Industry support initially very limited
– Only a few pro-active, most reactive, some very negative
• Economic drivers mostly negative
– Extra costs for refiners and owners
AND MORE GOOD NEWS
Reductions in VOC Emissions
• Tanker industry
introduced voluntary
measures to reduce VOC
emissions from cargo on
passage in 2002 – cutting
these by approximately
80%
• MARPOL Annex VI
revisions incorporated
these in 2008, and take
effect in 2010
Initiatives to Reduce
Green House Gas Emissions
Shipping has a head start as the most
energy efficient means of transport
CO2 Emissions per Unit Load
by Transport Mode
Large Tanker
1
Large Containership
3
Railway
6
Coastal Carrier
11
Standard-size
Commercial Truck
49
Small-size
Commercial Truck
226
Airplane
398
0
100
200
300
400
Units Relative
Source: Ministry of Land, Infrastructure and Transport (Japan): The Survey
on Transport Energy 2001/2002 MOL (Japan): Environmental and Social
Report 2004
Shipping energy efficient
15
TANKER SHIPPING A GOOD NEWS STORY
Shipping’s GREEN Credentials
• This car, weighing one tonne, uses 1
litre of fuel to move 20 kms
• This oil tanker uses 1 litre of fuel to
move one tonne of cargo 2,500 kms
– more than twice as far as 20 years ago
One particular challenge for the shipping industry
- i.e. seaborne trade will continue to grow strongly
Trends –
Population, Energy Use, Seaborne trade & CO2 emissions
Index
180
Population
Energy use
Seaborne trade
160
CO2 emission
140
120
100
Source: Fearnleys/INTERTANKO
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
80
There has been strong growth in shipping
Reductions in GHG (CO2) Emissions
DRIVERS FOR CHANGE
• Driven hardest by a limited number of governments
– Supported mostly by EU governments, plus Japan,
Australia, Canada and a few others
– Until recently only limited support in US (mostly
environmental interests)
– Relatively little enthusiasm in much of the developing
world, but now changing ?
• Environmental Lobby growing
– But not yet fully coordinated
• Maritime industries showing considerable support
– Proactive involvement
– Although “hesitant” on market based instruments
• Economic incentives strong
– Fuel savings translate into potentially significant cost
savings; plus incentives for innovation & new technologies
Initiatives underway at the IMO
1998: IMO initiated work on Green House Gas emissions
2003: IMO Assembly adopted Resolution A.963(23):
Policies and Practices Related to the Reduction of GHG
from Ships
Today: Work continues through the MEPC
This year: we can confidently expect MEPC 59 to adopt • Mandatory Design Index for new ships (long term measure)
• Ship Efficiency Management Plan – existing ships:
- Best practices to save energy used by the ship
- Use of voluntary Operational Index (for each voyage &
over a period of time/voyages)
Initiatives underway at the IMO
Ship Performance Index: CO2 / work done
e.g. tonnes of CO2 produced per tonne mile of cargo
• Energy efficiency design index for new ships
incentivises designers and builders.
At the next stage: The ship’s design index should be
less than a maximum limit to be set by regulations.
The maximum value will then be lowered over time.
• Voluntary operating index measures efficiency of
ship in service.
A management tool for owners and charterers to
measure energy efficiency on a voyage. Incentivises
the owner to keep hull and machinery “clean” and
charterer to use the ship efficiently – capacity, routing
and speed.
SEMP: Examples of Best Practices
for tanker emissions & energy efficiency
1.
2.
Programme for Measuring and Monitoring Ship Efficiency
Voyage Optimization Programme
Economy mode:
174
MC/MC-C 100% SMCR optimised
3.
Speed selection optimization
Optimised route planning
Trim Optimization
ME/ME-C Part load optimised
168
162
20
30
40
50
60
70
80
90
Engine shaft power
Propulsion Resistance Management Programme
1.
2.
4.
Hull Resistance
Propeller Resistance
Machinery Optimisation Programme
1.
2.
5.
Main Engine monitoring and optimisation
Optimisation of lubrication as well as other machinery and equipment
Cargo Handling Optimization
1.
2.
6.
Cargo vapours control procedure on all crude tankers (80-90% reduction of
cargo vapours)
Cargo temperature control optimization
Energy Conservation Awareness Plan
1.
2.
3-4g/kWh
ME/ME-C 100% SMCR optimised
3-4g/kWh
SFOC
1.
2.
3.
On board and on shore training and familiarisation of company’s efficiency
programme
Accommodation-specific energy conservation programme
100
110 % SMCR
IMO is also reviewing possible economic
measures to reduce CO2 emissions
• Bunker Levy /Compensation Scheme
• Emissions Trading Scheme
• Other, e.g. differentiated charges
Industry has established Guiding principles and believe
any measure should:
• Be effective in reducing global GHG emissions
• Be binding on and applicable to all ships
• Be cost effective
• Not distort competition
• Support sustainable environmental development without
penalising trade growth
• Promote technical innovation and leading technologies
• Be practical, transparent, fraud-free, easy to administer
Initiatives already under way
- parallel voluntary measures
For most ship types, some form of :
• Speed optimisation
• Voyage optimisation
• Capacity optimisation
is already in hand.
For Tankers:
• Liaison is encouraged between owners
and charterers to optimise vessel speed
and voyage schedules
http://www.ocimf.com/view_document.cfm?id=1147
Other initiatives under discussion
Pending the setting of mandatory upper
limits for the Energy Efficiency Design
Index of new ships, the tanker industry is
discussing:
• The Establishment of a Reference Value for
a New Ship (i.e. a Target)
• Development of a Rating System relative to
the Reference Value
Similar to the performance rating of white goods
Other initiatives already under way
- parallel voluntary measures
Ports / terminals
• Incentivised to improve port efficiency
• Reward environmentally friendly ships with lower port
dues
Industry is currently developing a Port Efficiency Index
A Performance Indicator* of ship-port efficiency
measuring:
Total CO2/ Unit of Cargo handled from arrival to
departure
*i.e. an extension of the IMO New Ship Design Index / Operational
Index [ & similarly for SOx, NOx & VOC emissions]
The Good News continues….
The Shipping Industry is committed to
playing its part in finding solutions to reduce Green
House Gas emissions.
Industry:
• Taking a pro-active approach to reductions in CO2
emissions
• Encouraging innovation to improve performance
• Continues to support global trade
• Encourages modal shift to shipping to reduce overall
emissions
THANK YOU / GRACIAS
“Proud of our people, Proud of our ships”
For more information, please visit:
www.intertanko.com
www.poseidonchallenge.com
www.shippingfacts.com
www.maritimefoundation.com