AIR EMISSIONS from OCEANGOING VESSELS INTERTANKO Houston Tanker Event 2007 AIR EMISSIONS from OCEANGOING VESSELS INTERTANKO Houston Tanker Event 2007 Keith Michel Herbert Engineering Corp.

Transport Mode Efficiency (assumes Aframax Tanker burning 2.6% Sulfur Fuel with return voyage in ballast) Shipping is the most efficient mode for moving cargo Shipping is the most efficient mode for moving cargo

Air Emissions from Cargo Ships Over 90% of world trade is moved by the international commercial shipping industry. Over 90% of world trade is moved by the international commercial shipping industry. Oceangoing ships are responsible for a significant percentage of total worldwide emissions: 18-30% of NOx, 6-10% of SOx, 3-5% of CO 2. Oceangoing ships are responsible for a significant percentage of total worldwide emissions: 18-30% of NOx, 6-10% of SOx, 3-5% of CO 2. Studies clearly demonstrate the health hazards of NOx and PM pollutants. Studies clearly demonstrate the health hazards of NOx and PM pollutants. Anthropogenic input now widely accepted as a major contributor to global warming. Anthropogenic input now widely accepted as a major contributor to global warming.

Regulations: ANNEX VI Maximum 4.5% sulfur content. Maximum 4.5% sulfur content. Established limits for NOx (example: 17 g/kW h applicable to slow speed diesel engines) Established limits for NOx (example: 17 g/kW h applicable to slow speed diesel engines) Established concept of SECA’s Initially in Baltic; North Sea in Aug 2007 (max. 1.5% sulfur or equivalent) Established concept of SECA’s Initially in Baltic; North Sea in Aug 2007 (max. 1.5% sulfur or equivalent)

Proposal for Revision of Annex VI INTERTANKO (BLG-WGAP 1/2/5) A Global Sulfur Emission Control Area (applicable worldwide) A Global Sulfur Emission Control Area (applicable worldwide) From 2010, distillate fuels with a 1.0% sulfur cap. From 2010, distillate fuels with a 1.0% sulfur cap. For ship engines installed from 2015, a maximum 0.5% sulfur cap. For ship engines installed from 2015, a maximum 0.5% sulfur cap.

Proposal for Revision of Annex VI United States (BLG 11/5/15) Sulfur Emission Control Area (applicable within 200 nm of coastlines) --Use distillate with 0.1% sulfur cap or comply with SOx and PM limits Sulfur Emission Control Area (applicable within 200 nm of coastlines) --Use distillate with 0.1% sulfur cap or comply with SOx and PM limits For new engines > 30 liters / cylinder: Tier II: 15-25% NOx reduction in 2011 Tier III: 80% NOx reduction in 2016 For new engines > 30 liters / cylinder: Tier II: 15-25% NOx reduction in 2011 Tier III: 80% NOx reduction in % reduction in NOx for certain existing engines by % reduction in NOx for certain existing engines by 2012.

Proposal for Revision of Annex VI NORWAY ( BLG 11/5/22, 11/5/23, 11/5/24 ) Global sulfur emission area -- a 0.5% sulfur cap by 2015 applicable to all ships Global sulfur emission area -- a 0.5% sulfur cap by 2015 applicable to all ships NOx reduction for new ships Tier II: 20% reduction in 2010 Tier III: 40% reduction in 2015 NOx reduction for new ships Tier II: 20% reduction in 2010 Tier III: 40% reduction in 2015 NOx reduction for existing S/S diesel ships Tier I: in 2010 for ships built (to ANNEX VI limit of 17 g/kW h) NOx reduction for existing S/S diesel ships Tier I: in 2010 for ships built (to ANNEX VI limit of 17 g/kW h)

California (CARB) Regulation for Auxiliary Engines Applicable to vessels operating within 24nm of coast of California Applicable to vessels operating within 24nm of coast of California As of Jan. 1, 2007, requires burning of MGO or MDO with a maximum sulfur content of 0.5%. As of Jan. 1, 2007, requires burning of MGO or MDO with a maximum sulfur content of 0.5%. As of Jan. 1, 2010, requires burning of MGO with a maximum sulfur content of 0.1%. (subject to review in 2008) As of Jan. 1, 2010, requires burning of MGO with a maximum sulfur content of 0.1%. (subject to review in 2008)

EPA Regulations for U.S. Flag Vessels - Tier 2 For newbuildings after Jan 1, 2007, Tier 2 requirements for Category 1 & 2 engines (<30 liters per cylinder). For newbuildings after Jan 1, 2007, Tier 2 requirements for Category 1 & 2 engines (<30 liters per cylinder). Tier 2 levels add particulate (PM) limits, and includes hydrocarbon (HC) in the allowable NOx levels that are lower than Annex VI requirements. Tier 2 levels add particulate (PM) limits, and includes hydrocarbon (HC) in the allowable NOx levels that are lower than Annex VI requirements. Tier 2 PM + NOx limits have been obtained only by burning MGO. Native ash + sulfur in MDO are higher than allowed in exhaust. Engine modifications to meet NOx requirements are needed (or equivalent after-treatment) Tier 2 PM + NOx limits have been obtained only by burning MGO. Native ash + sulfur in MDO are higher than allowed in exhaust. Engine modifications to meet NOx requirements are needed (or equivalent after-treatment) Applicable to new US Flag vessels worldwide. Applicable to new US Flag vessels worldwide. Over the next 10 years, reduction from U.S. flag oceangoing vessels will impact total emissions of Sox, PM, and NOx within U.S. coastal waters by less the 0.25%. Over the next 10 years, reduction from U.S. flag oceangoing vessels will impact total emissions of Sox, PM, and NOx within U.S. coastal waters by less the 0.25%.

EPA Regulations for U.S. Flag Vessels - Tier 3 For newbuildings beginning in , EPA has proposed Tier 3 requirements for Category 1 & 2 engines. For newbuildings beginning in , EPA has proposed Tier 3 requirements for Category 1 & 2 engines. Tier 3 further reduces PM by 50% and NOx by 20% and returns to separate HC and NOx limits. Tier 3 further reduces PM by 50% and NOx by 20% and returns to separate HC and NOx limits. Tier 3 limits are expected to be made by engine modifications and low sulfur distillate fuel. Tier 3 limits are expected to be made by engine modifications and low sulfur distillate fuel.

EPA Regulations for U.S. Flag Vessels – Basis For newbuildings beginning in , EPA proposes Tier IV requirements for Category 1 & 2 engines. Tier 4 reduces PM, and lowers all NOx to 1.8 g/kW-hr and all HC to 0.19 g/kW-hr. (NOx by 80% and PM by 90%). For newbuildings beginning in , EPA proposes Tier IV requirements for Category 1 & 2 engines. Tier 4 reduces PM, and lowers all NOx to 1.8 g/kW-hr and all HC to 0.19 g/kW-hr. (NOx by 80% and PM by 90%). Tier 4 limits are based on % S distillate and after treatment of exhaust. Tier 4 limits are based on % S distillate and after treatment of exhaust. Proposed rules for Category 3 engines (>30 liters) originally expected in April, 2007 have been delayed. Conjecture is that these will resemble the proposal to IMO (BLG 11/5/15) Proposed rules for Category 3 engines (>30 liters) originally expected in April, 2007 have been delayed. Conjecture is that these will resemble the proposal to IMO (BLG 11/5/15)

Scrubbers Seawater is the scrubbing medium Seawater is the scrubbing medium SOx reduction to 99% SOx reduction to 99% NOx reduction to 5% NOx reduction to 5% Particulate reduction to 80% Particulate reduction to 80% Currently have designs to 9MW; designs for range 25MW to 50MW under development Currently have designs to 9MW; designs for range 25MW to 50MW under development Web based emissions monitoring Web based emissions monitoring In stack exhaust gas monitoring for NO NO2 CO2 & SO2…… SWS HC Funnel Space Discharge water monitor pH 7.0 Oil <0.5ppm CCS 50t/hr 1 MW Exhaust Dry gas <80%RH 10 kg dry sludge/day Engine Room KRYSTALLON SCRUBBING SYSTEM

Urea carried as 40% solution Urea carried as 40% solution Injection rate 5% to 8% by weight of the fuel Injection rate 5% to 8% by weight of the fuel NOx reduction % NOx reduction % With additional oxidation catalyst HC reduction % With additional oxidation catalyst HC reduction % Exhaust gas temperature must be maintained between 320 and 500 o C for reaction Exhaust gas temperature must be maintained between 320 and 500 o C for reaction Not tolerant of high sulfur. As sulfur increases, temperature must increase. Not tolerant of high sulfur. As sulfur increases, temperature must increase. Not tolerant of used lube oil mixed into fuel. Not tolerant of used lube oil mixed into fuel. Catalyst life is 10,000 to 40,000 hours with max of 100,000 hours Catalyst life is 10,000 to 40,000 hours with max of 100,000 hours Selective Catalytic Reduction (SCR) Urea Injection Urea Tank Urea Pump SCR MUNTERS –SCR CONVERTER

SCR Retrofit on Matson Containership Mokihana SCR Connection to Injection Pipe Injection Pipe Connection to Turbocharger

Emulsified Fuel Oil Sea to Sky Emulsifier unit 5 to 25% fresh water (by weight) added to fuel 5 to 25% fresh water (by weight) added to fuel Fuel water emulsion has higher viscosity than fuel alone Fuel water emulsion has higher viscosity than fuel alone Higher fuel delivery temperature is required to achieve proper viscosity Higher fuel delivery temperature is required to achieve proper viscosity Fuel pressure must be higher than the saturation pressure of the water at delivery temperature Fuel pressure must be higher than the saturation pressure of the water at delivery temperature Addition of water without increasing pump sizes limits maximum power output Addition of water without increasing pump sizes limits maximum power output NOx reduction of 20% expected with 20% fresh water injection NOx reduction of 20% expected with 20% fresh water injection Manufacture claims PM reduction of 40% to 60% Manufacture claims PM reduction of 40% to 60% No affect on SOx and CO 2 No affect on SOx and CO 2

Comparison of Emission Control Methods Emission Control Method NOxSOxPMCO2HC MDO (1.0% S) 5%65% 5% MGO (0.5% S) 5%85% 5% SCR * 80%---15%---70% Scrubber 5%95%80%---- Emulsification 20%---40%--- Reductions for MDO & MGO based on comparison to 2.7% S HFO * assumes SCR arranged with oxidation catalyst stage ** assumes 20% water injection (reduction estimates per manufacturer literature)

Expected Emission Reductions A global SECA with MDO (1% S Cap) will lower overall oceangoing vessel SOx and PM emissions by approx. 45%. With MGO (0.5% S Cap), reduction in Sox and PM will be approximately 65%. A global SECA with MDO (1% S Cap) will lower overall oceangoing vessel SOx and PM emissions by approx. 45%. With MGO (0.5% S Cap), reduction in Sox and PM will be approximately 65%. A 200nm worldwide SECA with 0.1% S fuel will reduce SOx and PM in SECA’s by about 75%. Overall, reductions of about 40% can be expected. A 200nm worldwide SECA with 0.1% S fuel will reduce SOx and PM in SECA’s by about 75%. Overall, reductions of about 40% can be expected.

Open Questions Should low sulfur fuel caps be mandated, or should emission limits be set and alternative technologies permitted? Should low sulfur fuel caps be mandated, or should emission limits be set and alternative technologies permitted? Should a global SECA be established, or should emission standards be applied for defined regions? Should a global SECA be established, or should emission standards be applied for defined regions?

Need for Comparative Study There is a need for a comparative study that: Considers all pollutants of concern (SOx, NOx, PM, GHG, effluent into water, disposal of waste, …). Considers all pollutants of concern (SOx, NOx, PM, GHG, effluent into water, disposal of waste, …). Considers emissions over the complete chain from manufacture of equipment and refinement of crude through recyling & disposal. Considers emissions over the complete chain from manufacture of equipment and refinement of crude through recyling & disposal. Accounts for all relevant costs (capital, operating, M&R, etc.) Accounts for all relevant costs (capital, operating, M&R, etc.) Account for the relative safety and performance risk of the different technologies. Account for the relative safety and performance risk of the different technologies. Also, further research is needed on the fate and transport of emissions from ships. Also, further research is needed on the fate and transport of emissions from ships.