Air Quality Regulation in California Critical Issues in Greenhouse Gases, Stationary Sources & Mobil Source Emissions January 12, 2007 Jim Flanagan 1 Two views of marine transport > Dirtiest mode of transport > Cleanest mode of transport >Uses high sulfur fuel >Efficient use of energy resources >Engines not designed to minimize emissions >Lowest drag on movement 2 How should we measure and track environmental performance? > Reduction from baseline > High baseline reductions appear less meaningful > Per container (TEU) shipped per mile > To track performance and for comparisons > Consider entire environmental footprint Good business planning reduces emissions 3 Air Emissions in Marine Transportation Energy Use Air Emissions Consider the full transportation chain footprint > Ocean going vessels > Main engine emissions > Dockside auxiliary engine emissions > Harbor craft: tugs, pilot vessels, etc. > Container loading and unloading > Movement off-site 4 Pollution Prevention: Increasing Efficiency Reduces Emissions and Costs Best > Pollution prevention and waste minimization – Redesign of processes and practices to reduce or eliminate emissions or waste. > Reuse of materials and converting wastes to new uses. > Recycling. > End-of-pipe treatment (such as catalytic reduction). Worst > Disposal (includes shifting emissions or impacts to other areas) 5 Energy efficiency for container vessels compared with other modes of transport S-Type Rail – container Electric* vessel Rail – Diesel* Heavy Truck* Boeing 747-400* 0.018 0.043 0.067 0.18 2.00 Energy Use kWh/tkm Emissions (g/tkm) CO2 8.36 44.096 17 50 552 PM 0.009 n/a 0.008 0.005 n/a SOx 0.162 0.21768 0.00005 0.00006 0.17 NOx 0.21 0.13 0.35 5.69 0.31 *Source: Network for Transport and the Environment (NTM) 6 Shipping by water is most energy efficient Distance travelled with 1 ton cargo using 1 kWh energy for different transport modes Boeing 747-400 Heavy Truck Rail – Diesel Rail – Electric 0.0 10.0 20.0 30.0 40.0 km 50.0 60.0 70.0 S-Type container vessel PS-Type container (expected) 7 Bigger ships are more efficient 8 Larger vessels are more efficient Medium Container Vessels 2000-3500 TEU - Average service speed 19 knots 140.0 120.0 121.3 100.0 80.0 60.0 40.0 20.0 0.0 CO2 3.19 1.99 NOx SOx g CO2 / TEU.km g CO2 / TEU.km Small Container Vessels < 2000 TEU - Average service speed 16 knots 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 CO2 g CO2 / TEU.km g CO2 / TEU.km 1.99 NOx SOx 100.0 85.8 80.0 60.0 40.0 20.0 3.17 Large Container Vessels - > 5000 TEU - Average service speed 21 knots Medium-Large Container Vessels - 3500-5000 TEU - Average service speed 20 knots 100.0 121.6 2.57 80.0 76.3 60.0 40.0 20.0 1.41 2.03 1.25 NOx SOx 0.0 0.0 CO2 NOx SOx CO2 g CO2/TEU.km = grams carbon dioxide emitted per twenty-foot container unit transported one kilometre. 9 Shipping efficiencies through technology Maersk Line energy optimization initiatives include: > Waste heat recovery systems reduce fuel use 10%. > Slide valves > Computer systems improve cargo, route & speed efficiency > Waste oil clarification decanters separate burnable liquids from waste oil, water, and sludge mixtures > New cylinder lubrication systems use less oil > Efficient hull and propeller maintenance > Hull coatings 10 Shipping Gets More Efficient Average CO2 emissions from A.P. Moller - Maersk owned container vessels 2002-2006* g CO2 / TEU.km Results Our efforts to reduce CO2 emissions have led to a significant 5.6 per cent decrease in fuel consumption and reduction in emissions per tonne of cargo. This corresponds to a total reduction in CO2 emissions of 1.81 million tonnes during the period 2002 to 2006*. 90 89 88 87 86 85 84 83 82 81 89.1 85.6 2002 2003 84.6 84.8 2004 2005 84.1 2006* •*First half of 2006 11 Port area air quality options > Is shore-side power a solution? > Stresses shoreside electrical networks > Significant capital costs and time required > Compatibility issues from port to port > Only reduces emissions while at dock > Safety issues > Other options include > Cleaner fuels while near ports > Cleaner engines > On-board control technologies: SCR, PM filtration, etc. 12 Reduces emissions: Total: over 400 tons/yr SOx: 92% PM: 73% NOx: at least 10% 13 Vessel Loading and Unloading > Minimize container movement > Mathematical models used to minimize moves to load and unload vessels > On-dock rail where feasible > Inland mode choices > Rail for minimum drag and resistance > Trucks for greatest flexibility > Pollution prevention > Potential for electrification for new sites > Minimize sulfur content of fuels > Newest feasible engines 14 Shipper Challenge #1 Uncoordinated Regulation > Different governments want different outcomes > Europe is concerned about GHGs, SOx and fine particulate; whereas California is concerned about diesel particulate and ozone > Different issues Different approaches to solutions > Measurements and models vary >Quality 15 Shipper Challenge #2 The Law of Unintended Consequences > Improvements in one area can lead to problems in other areas > Tests on SCR showed increasing particulates > Restriction of at-sea dumping increases fuel use > Newer vessels result in old-vessel recycling issues > Scrubbing generates acid water > Be careful what you measure > Choice of metric > Data quality > Monitor vs. model 16 The Maersk Challenge > Being a good world-wide corporate citizen > Reducing our GHG footprint reducing overall energy use > Consider world-wide operational impacts > Harmonizing world-wide concerns > Getting cargo where it needs to be on time and at competitive cost 17 Environmental Trends: Air Quality > Increasing focus on health impacts of diesel emissions > SOx, NOx and PM (particles) > Ships, CHE, trucks, rail > Air quality in many ports exceeds standards. > Governments and customers are concerned about “Greenhouse Gases” (CO2) > Regulatory actions will include > Tighter fuel standards world-wide (cost factor) > Need for new technologies: AMP, SCR, PM filters 18 Maersk’s Air Quality Program > Reduce sulfur in fuel where it impacts shoreside air quality > Develop mobile solutions for mobile sources > Replace not retrofit port cargo handling equipment > Implement management systems to ensure consistent evaluation of issues > Use good science and metrics > Test thoroughly before committing > Data-based decisions > Work with shippers, other carriers and governments on metrics, reductions and technologies > Clean Cargo Working Group 19 Thank you 20
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