1. MARPOL Annex VI TRIPARTITE TOKYO 20th SEPTEMBER 2007

2. IMO & UNILATERAL LEGISLATION ON LOW SULPHUR MARINE FUELS DATESHIP TYPEWHEREmax. % SREG. 19.05.2005AllEverywhere4.5IMO 19.05.2006AllBaltic Sea1.5IMO & EU 11.08.2006AllAll EU Ports MGO (DMA and DMX) MDO (DMB and DMC) 0.2 1.5 EU 11.08.2006Passenger shipsEU1.5EU 1.01.2007All aux. & diesel-electric main engines on all ships 24 miles off California shore MGO (DMA grade) MDO (DMB grade) - 0.5 CARB 11.08.2007AllNorth Sea & English Channel1.5EU 22.11.2007AllNorth Sea & English Channel1.5IMO 1.01.2010AllAll EU ports0.1EU 1.01.2010Inland waterway shipsAll EU inland waterways0.1EU 1.01.2010All aux. & diesel-electric main engines on all ships 24 miles off California shore MGO (DMA grade)0.1 CARB 1.01.201216 Greek ferriesGreek ports0.1EU

3. ALTERNATIVES on SOx & PM A. Base Line - No change in SOx regulations B. Global + Regional (SECA) + port (mini SECAs) different S cap values: – (possible lower) Global S cap & lower S cap in SECAs –USA – [0.1%] S cap up to [200] nm from shore –BIMCO proposal – 3% global S cap; 1% 0.5% MDO in SECAs or scrubbers C. GLOBAL S CAP (no SECA) : –Mandate 1% 0.5% MDO for all ships –Global S cap or emissions limit but leave the industry to choose compliance method

4. EXPERIENCE WITH SECA So far, complinace by LSFO Switch from HFO to LSFO depends on the ships bunker storage capacity and lay-out Standard designs (1 settling & 1 service tanks) provide little flexibility Depending on initial S % of the HFO, fuel switch in at least 48 hrs 60 hours from HFO with 4.04% S to LSFO with 1.3% S

5. SWITCH SEQUENCE IN BASIC DESINGS Stop HFO transfer from storage to settling tanks (1 to 3 days prior to entry into SECA) Settling tank empty – start transfer of LSFO to the settling tank Service tanks almost empty of HFO – start feeding LSFO from settling tank (some 6 hours before entry into SECA) Cylinder oil feeding rate adjusted or switch to a lower BN cylinder oil Continuous crew attendance/monitoring

6. Wärtsila – Low Sulphur Guidelines, 9 January 2006

7. FUEL SWITCH OVER BETTER SOLUTIONS Simpler for ships with 2 settling & 2 service tanks (few hours) Complete segregation between HFO & LSFO systems reduces the fuel switch over to matter of minutes and permits automatic control Complete segregation = no risk of incompatibility between HFO & LSFO blends

8. Wärtsila – Low Sulphur Guidelines, 9 January 2006

9. SECAs & CHANGE OVER AREAS AUGUST 2007 MAY 2006 Source: http://maps.google.com / Changeover Area

10. SECAs & CHANGE OVER AREAS New Changeover Area Source: http://maps.google.com/

11. 2012? ??? HOW MANY MORE SECAs? IMPACT ON A LARGE NUMBER OF SHIPS 2012?

12. Wärtsila – Low Sulphur Guidelines, 9 January 2006

14. SCRUBBERS - large space required in the ships funnel; - - for a main engine of 20 MW, sea water up to 22,000 t/day need to be processed (45t/hr/MW*) - up to 100 kg/day of hazardous sludge (5kg/day/MW*) Scrubbers for Pride of Kent * data supplied by Krystallon

16. CONCLUSIONS Alternative solutions may require new installations and new operations Design standardisation for safe & simpler operation Expected contributions from: –Ship operators –Ship designers –Classification Soceities Future Tripartite cooperation