Environment and Reduction of Emissions The Application in Ships BMT TITRON Environment and Reduction of Emissions The Application in Ships V1 1

IMO Emission Standards – Annex VI Tier III 2 IMO Emission Standards – Annex VI Tier III Global Requirements: NOX – Nitrogen Oxides, Regulation 13 from 1st January 2011 – Tier II, 14.4g/kWh low speed engine and less for medium speed engines, according to operating speed SOX – Sulphur Oxides, Regulation 14 from 1st January 2012 - 3.5% by weight from 1st January 2020 – 0.5% by weight Inside Established ECA (SECA) Areas: NOX – Nitrogen Oxides, Regulation 13 from 1st January 2016 – Tier III, maximum permitted 3.4g/kWh from 1st January 2015 - 0.1% by weight BMT TITRON 雅橋德隆 1

Emission Control Areas 3 Emission Control Areas BMT TITRON 雅橋德隆 1

Reduction in Emissions – The Options 4 Reduction in Emissions – The Options Existing Vessels: Upgrades and Conversions Recent diesel engines can, in some cases, be upgraded to operate on gas as a fuel. However, this is only an option if the engine builder has made the necessary provisions in the base engine SCR / Scrubbers NOX can be reduced by the application of exhaust gas treatment using SCRs or exhaust gas recirculation and scrubbing. However, each of these treatments have by-products which have to be catered for BMT TITRON 雅橋德隆 1

Reduction in Emissions – The Options 5 Reduction in Emissions – The Options Vessel Fuels: LNG as a Fuel - LNG Bunkering LNG (liquefied natural gas) is natural gas that has been cooled down to -162oC In this condition, at ambient pressure, membrane storage or similar is required Type C storage allows for bunker capacities of up to 500m3 and 7 bar pressure Natural gas is a fossil fuel that emits about 25% less carbon dioxide during combustion than oil The gas burns with a clean flame, emitting neither dust nor soot and is sulphur-free, low in nitrogen oxide emissions LNG is relatively difficult to ignite Regulations for vessels stipulate that LNG must be at least as safe a fuel as oil LNG bunkering of vessels is becoming available at rates up to 1,250m3/hr BMT TITRON 雅橋德隆 1

Reduction in Emissions – The Options 6 Reduction in Emissions – The Options Vessel Fuels: Low Sulphur Fuels Low Sulphur fuels are currently available at 0.1% sulphur for use in SECAs. Operationally, care must be taken with the transfer from heavy oil to low sulphur diesel to ensure that waxing contamination of the fuel system does not occur Oil majors are currently developing and producing a series of refined fuel oils with the aim of reducing emissions to satisfy the requirements of Tier III. However, these fuels are significantly higher priced than LNG and normal fuel oils BMT TITRON 雅橋德隆 1

Reduction in Emissions – The Options 7 Reduction in Emissions – The Options Costs / Savings: The cost of a two stroke, slow speed engine is approximately twice that of an equivalent diesel unit, whereas the cost of a medium speed, four stroke engine carries about a 20% surcharge over the equivalent diesel unit. It follows, therefore, that the repayment of the initial investment takes longer for the higher powered, two stroke engines. If we consider the current costs of low sulphur fuel oil, marine gas oils, and LNG there is a cost advantage to using LNG over marine gas oil. However, low sulphur fuel oil is currently about the same price as LNG. How long this will continue is a guess, but the consensus of opinion seems to indicate that crude oil costs will rise to circa $80 per barrel by the end of 2015. At this level, LNG is then competitive on a world-wide scale. LNG loaded in the US/Canada is advantageous even at current fuel prices. However, the driver of emissions requirements in ECAs make LNG an obvious alternative for new tonnage. BMT TITRON 雅橋德隆 1

Overall Emissions Profile 8 Overall Emissions Profile Comparison LP vs HP engine emissions CO2 and SOx reduced in gas operation due to fuel composition NOx very low with LP technology due to lower peak temperature PM further reduced by the DF technology with lean-burn Otto combustion with pre-chamber ignition Methane slip on LP dual fuel reduces equivalent CO2 reduction from -25% to -15%. However, all other emissions are Tier III compliant Data provided by Wartsila Tier3! -25% -37% -99% -96% -98% -85% BMT TITRON 雅橋德隆 1

LNG Powered Mama Vessel 9 LNG Powered Mama Vessel BMT TITRON 雅橋德隆 1

BMT TITRON – LNG Bunker Vessel 10 BMT TITRON – LNG Bunker Vessel Bunker vessels capable of transporting 3,750m3 to 13,000m3 LNG and delivering at up to 1,250m3/hr and able to recover and process the vapour return stream from the receiving vessel are being developed by BMT TITRON The bunker vessel will be able to provide all required inerting and control equipment to make the process as safe as it possible BMT TITRON has developed a bunker procedure using best practice from the LNG industry, which can be merged with the receiving company’s vessel SMS to ensure the LNG transfer is carried out in a manner that will mitigate any risks associated with the process BMT TITRON 雅橋德隆 1

BMT TITRON – Capability 11 BMT TITRON – Capability BMT TITRON has its roots in the UK and Hong Kong and operates world-wide developing partnerships with leading companies using its extensive international experience of corporate development to explore commercial opportunities It incorporates a multi-disciplinary capability based on our extensive knowledge and practical based know how in delivering innovative approaches to design, based upon the needs and the requirements of the commercial opportunities   BMT TITRON (UK) Limited (BTUK) operates globally from its Ship Design Centre, close to the River Tyne, a traditional maritime centre. BTUK focuses upon the design and development of specialist ships and marine transport which require application of new technologies and innovation in design to deliver high efficiency and effectiveness in cargo carrying capacity and operating costs BTUK has extensive experience of developing fuel efficient vessels to meet the highest environmental standards and optimise fuel consumption as well as vessel conversion projects BMT TITRON 雅橋德隆 1

Environment and Reduction of Emissions The Application in Ships BMT TITRON Environment and Reduction of Emissions The Application in Ships V1 1