Sustainable Shipping How To Do It!

Bengt Ramne ScandiNAOS AB

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

The Emergency Challenge

g NOx/kWh
16

IMO NOx Technical code

NOx Tier II - 2011 (Global)

14

12

NOx Tier III - 2016 (NOx emission control areas)

10

0
0 100 200 300 400 500 600 700 800 900

rpm

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000

The Emergency Challenge

MARPOL 73/78 amended with 1997 Protocol
includes Annex VI titled

Regulations for the Prevention of Air Pollution from Ships. Possibility to define emission control areas

Baltic Sea (SOx, adopted: 1997 / entered into force: 2005) North Sea (SOx, 2005/2006) North American ECA, including most of US and Canadian coast (NOx & SOx, 2010/2012). US Caribbean ECA, including Puerto Rico and the US Virgin Islands (NOx & SOx, 2011/2014).

MEPC 57 April 2008 Amendments to the MARPOL Annex VI regulations 0.1% sulphur from 2015 in Baltic Sea and North Sea ECA areas EU legislation
European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

2,50%

Sulphur levels
2,00% 3,50%
Marine fuel in SECA area
0.1% = 1000 ppm

1,50%
1,00%

Euro IV
Max 50 ppm

Euro V, City diesel

Max 10 ppm

1,00%

0,50% 0,10% 0,00% 0,005% 0,001%

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

North Europe SECA

(Baltic Sea, North Sea and English Channel)

Without SECA rules HFO 18 000 000 7 200 000

With SECA rules Assuming 40% of the ships will fit a scrubber Assuming 30% of the ships will change to 0.1% MGO Assuming 30% of the ships will change to a clean fuel that is cheaper than MGO

MDO/MGO

2 000 000

7 400 000

Alternative fuel (LNG, Methanol)

5 400 000

Metric Tons fuel oil equivalents

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

The Great Challenge

Established targets
2C
Target of global temperature increase COP 15 meeting December 2009 in Copenhagen organized by United Nations Framework on Climate Change UNFCCC

50-85%
Global GHG emission level in 2050 of todays level in order to reach 2C target according to Intergovernmental Panel On Climate Change IPCC 2007

80-95%
EU target for CO2 emission reduction by 2050

Complication
All scenarios from IPCC (Intergovernmental Panel on Climate Change)

shows that GHG emission will increase not decrease

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

The Great Challenge

IPCC CO2 concentration
1200 40 35 atmospheric co2 concentration ppmv 1000 30 800 Total CO2 GtC 2C target 0 1960 0 1980 2000 2020 2040 Year 2060 2080 2100 1980 2000 2020 2040 2060 2080 2100 Year 25 20 15 10 200 5

IPCC CO2 emission

600

400

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

The Great Challenge

Shipping today accounts for approx 3% of global CO2

emissions With increased trade CO2 emission from shipping is expected to double by 2050 (assuming todays shipping pattern) Within a few years CO2 from shipping will be regulated IMO are considering technical, operational and market based instruments

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Sustainable shipping
Is it only a worn out buzz word, or do we have an idea

how to fill it with meaning?

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

EffShip
Efficient Shipping with low emissions
Work packages
WP1 Project Management WP2 Present and Future Maritime Fuels WP3 Exhaust Gas Cleaning WP4 Energy Efficiency and Heat Recovery WP5 Energy Transformers WP6 System Impact when Using Wind, Wave and Solar Energy WP7 Logistic system analysis WP8 Demonstration of Findings WP9 Final Reporting, Dissemination and Future Projects

Funding Vinnova 60%, Partners 40% Duration Dec 2009 May 2013

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

16000 14000

Reduce Speed More ships on routes Shorter time in port

Power PB [kW]

12000 10000 8000 6000 4000 2000 0 12 14 16 Speed [kN] 18 20

Increase Size

Increase density in voyage

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

15% reduction in speed 50% reduction in power

Recovery Energy
ORC 1 Turbine Generator

EGB

Thermal oil

Evaporator Condense r

500-1000 kW

Air intake ORC 2

Jacket cooling out Jacket cooling in
Compressed air Air cooling HT out
Evaporator Condense r

Turbine Generator

250-500 kW

Air cooling HT in
LO COOLER

LO cool LO cool

Compressed and cooled air

Air cooling LT out Air cooling LT in

10 MW
Lube oil

Central cooler

ORC (Organic Rankine Cycle)

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Use the wind

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Alternative Marine Fuel - Feedstock and products

Crude oil Refining Natural gas Cooling -163C Bio Gas Anaerobic digestion Reformation CH4 + H2O CO + 3 H2 CO + H2O CO2 + H2 Residuals HFO Distillates MGO LNG Coal Biomass Gasification C + O2 CO C + H2O CO + H2 CO + H2O CO2 + H2 CO2 + C 2CO Municipal waste Solar Hydro Wind Geothermal Nuclear Electrolysis of water H2O H2 + O2 Carbon capture CO2 Syngas Hydrogen + Carbon monoxide (H2 + CO) Methanol CO + 2H2 CH3OH CO2 + 3H2 CH3OH +H2O CO2 + H2 CO +H2O DME Dehydration of methanol 2CH3OH CH3OCH3 + H2O DME to liquid Mobile process HFO ICE Fuel Diesel fuel MGO ICE Fuel LNG ICE/FC Fuel Methanol ICE/FC Fuel Synthetic petrol DME ICE Fuel Paraffin Naptha Diesel Hydrogen as ICE/FC Fuel DME Direct synthesis, using a dual catalyst system Fixed bed reactor process (Haldor Tops) Slurry bed reactor process (JFE, Air Products and Chemicals) Gas to liquid - GTL Fischer Tropsch Cracking Paraffin Naptha Diesel

Diesel fuel

Otto fuel

Otto fuel

Otto fuel

Diesel fuel

Requires spark Requires spark ignition or ignition ,dual dual fuel fuel or methanol diesel engine

ScandiNAOS/BR 2012-05-20

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Do not shift from ship to truck!!

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

The Great Challenge

IPCC Scenarios CO2 concentration
1200 40 35 atmospheric co2 concentration ppmv 1000 A1B A1T 800 A1FI Total CO2 GtC 2000 A2 600 B1 B2 A1p 400 A2p B1p 200 B2p IS92a 0 1950 2C target 2000 Year 2050 2100 10 5 0 1980 15 25 20 30

IPCC CO2 emission scenarios

2020

2040 Year

2060

2080

2100

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Drivers
CO2 tax on transportation A level playing field for all transportation modes Allow commercial incentives to develop sustainable

technical solutions

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

2050 - How to get there?

Applying existing technology might take us half the way Pushing the boundries of emerging technology will be

necessary to get us there? 3H2 + CO2 CH3OH

H
C H H O H

+
O H

H2O
H

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Thank you

European Maritime Day 22 May 2012 Gothenburg- bengt.ramne@scandinaos.com

Methanol produced from forest products 0.072 Natural gas well head price 0.010 183 /kWh $/ton Crude eqv. Methanol cost ex works 0.025 432 /kWh $/ton MGO eqv. 1244 /kWh $/ton MGO eqv. Methanol along side Gteborg 0.044 805 /kWh $/ton MGO eqv.

Natural gas well head price 0.010 183 /kWh $/ton Crude eqv.

LNG cost ex works 0.02 345 /kWh $/ton MGO eqv.

LNG FOB Zeebrugge 0.03 518 /kWh $/ton MGO eqv.

LNG along side Gteborg 0.046 845 /kWh $/ton MGO eqv.

Crude oil well head price 115 843 $/bbl $/ton

Crude landed (WTI/Brent approx) 119 0.051 872 $/bbl /kWh $/ton

MGO port price 0.062 1070 /kWh $/ton

HFO port price 0.041 698 /kWh $/ton

SPIRETH 2012-01-26

SPIRETH - Stena Scanrail

SPIRETH 2012-01-26