1. Marine Fuels Where are we? Where are we going? How will we get there?

2. Sulfur content vs. Viscosity Grade -- 2006
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

3. 2006 Fuel Quality by Sulfur Range 0.5% Sulfur Increments
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

4. 2006 Fuel Quality by Sulfur Range 0.5% Sulfur Increments
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

5. Where Are We Going?*
From: “The Impact of Marine Emission Legislation on the Bunker Industry”, by Robin Meech, presented at IPIECA Workshops on Marpol Annex VI Singapore, Washington, Brussels, February 2006
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

6. Residue Properties
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

7. Blending to Low % Sulfur Specs
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

8. Blending to a Low Sulfur Limit
Examples, IFO to 1.5% S
Examples, Residue to 0.5% S
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

9. From: Refining to Meet Low S Bunker Fuel, A
* From: Refining to Meet Low S Bunker Fuel, A. Madden, Exxon Mobil, Marpol Annex VI consultation Meeting, February 23, 2006
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

10. Tanker Case Study* from Well to Hull
SOURCE: Energy Use and Emissions from Marine Vessels: A Total Fuel Life Cycle Approach, J. J. Winebrake, J.J. Corbett and P.E. Meyer, Journal of the Air & Waste Management Association, Vol. 57, January 2007.
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

11. Near Term Practical Considerations
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

12. Changeover Calculations
4.5 MT/hr consumption. Full service and settling tanks at start of change-over 
HFO % Sulfur
LSFO %Sulfur
Change-over time to reach 1.5% S 4
1.5 99 3 92 2 76 1 45 38 27

13. Changeover Calculations
4.5 MT/hr consumption. 25% fill of service and empty settling tank at start of change-over
HFO % Sulfur
LSFO % Sulfur
Change-over time to reach 1.5% S (hours) 4
1.5 22 3 20 2 16 1 8 7 5

14. Possible Quality Problems with Low Sulfur Residual Fuel
Fuel Stability / Compatibility
Ignition / Combustion Quality
Higher Abrasives Content
Unfamiliar Low Sulfur Cutter Stocks
Greater Variability in Physical Properties
Need for Lower TBN Cylinder
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

15. Back-up Slides Section I
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

16. Marine Exhaust Emissions
Air Kg
Fuel Derived
Emissions, g/Kw hr
CO2 555
H2O 163
SOX 9.5
NOX 2.2
Particulates N/A
Nitrogen 6715
Oxygen 1230
Fuel
175 g/Kw hr
Engine
(~ 7 MJ/Kw hr)
8675 g/Kw hr input g/Kw hr output
MEMO: Fuel Composition Ratio’s Ratio’s
% C H/C SO2/SO /5
% H C/S NO/NO /90
% S C/N Air/Fuel /1
% N
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

17. How Does Marine Transport Fit into Global Emissions?
Marine Residual Fuel Consumption _
200 Million MeT/yr ~ 3.5 M B/D*
5.3% (4.2 vol. %) of Global Oil Consumption
1.9% of Global Energy
Global CO2 from marine Fuels MT/yr
Global CO2 from Distillate and Fuel Consumption 9845** MT/yr (3086 MT) =
*based on DNVPS average marine residual fuel density
** BP World Energy Outlook
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

18. Global SOx (PM and Fuel N) A Different Story
Global S from Marine Fuels MT/yr
Global S from Light and Medium distillate 5.2 MT/yr
Global Fuel N from Marine = MT/yr
Global Fuel N from Light / Medium Distillates ≤0.05 MT/yr
Global Particulates not quantified
Assumes: Light Distillate 1500 ppm S
Medium Distillate 2500 ppm S
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

19. Table 6 - Container Ship Case Study
SOURCE: Energy Use and Emissions from Marine Vessels: A Total Fuel Life Cycle Approach, J. J. Winebrake, J.J. Corbett and P.E. Meyer, Journal of the Air & Waste Management Association, Vol. 57, January 2007.
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

20. Typical Fuel Products Flow Plan
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

21. 2 Year Average 216 181 98 148 Source: “BP World Energy Outlook”
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

22. Air Emissions Regulations Scorecard
In Place
IMO Annex VI
4.5% S Global Cap on ISO RM grade fuels
1.5% S (6g SOx Kw hr) cap in SECA area
Engine NOx limits (17g/Kw hr for ≤ 130 rpm
EU 1999/32 and 2005/33
1.5% S SECA Cap
CARB
0.5% S cap on MDO/ISO DMA requirement in 24 nm zone for auxiliary/diesel electric engines
Various Local Area S caps
Intertanko March 26th, 2007
Dr. Rudolph Kassinger

23. Air Emissions Regulations Scorecard
In the offing
IMO
BLG Working Group report
Submission of revised Annex VI to MEPC EU
stated plan for further reduction on % S (0.5%/2g SOx/Kw hr)
EPA
stated plan to apply for ECA designation
Cooperating with Canada and Mexico
CARB/CA “no net increase in emissions” policy
Other jurisdictions eyeing SECA designation
Intertanko proposal to require distillate fuel
Broad action likely on PM
Intertanko March 26th, 2007
Dr. Rudolph Kassinger