Sulphur 2020:

from contracting
to final
combustion
 INDUSTRY EXPECTATIONS

The majority of the

industry is expected
to adopt the compliant 96%
Compliant fuel

fuels option. 3%
Scrubber (EGCS)

<1%
>58k
Ships on international trade
Alternative fuels

Lloyd's Register 4
Presenters
Richard McLoughlin
Richard currently works within the innovation
sales and marketing department at Lloyd’s
Register. He is based at the Southampton
Global Technology Centre and delivers
portfolio management for the in-life service
portfolio, particularly Sulphur 2020 and IMO DCS.
Tim Wilson
Tim Wilson is Lloyd’s Register's FOBAS Principal
Specialist (Technical Manager) on Marine Fuels
and Exhaust Emissions. After spending twenty
years at sea, leaving with the experience of 3 years
as Chief Engineer in 1994 and gaining Chartered
Engineer status in 1995, he then joined Lloyd’s Register’s marine
consulting Fuel Oil Bunker and Advisory Service and is currently its
Principal Specialist and Technical Manager on all matters related
to fuels from the bunker manifold to the exhaust stack.
Lloyd's Register
Grant Hunter
Contracts & Clauses at BIMCO, responsible for
the development, revision and promotion of
BIMCO’s wide range of standard contracts and
clauses. He has worked for BIMCO since 1997.
Previous careers include five years at sea with
the Ben Line and eight years working ashore in the commercial
and operations department of P&O Bulk Shipping in London.
Grant has a Master’s in Maritime Policy and Law from the London
School of Economics.
Douglas Raitt
Douglas has a strong background - spanning
over 20 years - in marine fuels and ship’s
propulsion machinery. He has managed a
variety of laboratories and inspection offices
prior to joining Lloyd’s Register in 2005 to lead its Fuel Oil
Bunkering Advisory Services’ business through to 2013. From
2013 onwards he has held the post of Regional Consultancy
Manager Asia dealing with the non-Class services Lloyd’s Register
offers the marine industry.
5
More information:
Sulphur 2020
To find out more about how we can help you
prepare and manage change, please contact your
account manager or visit www.lr.org/sulphur2020
to find out more.

Lloyd's Register 6
S2020 poll results
What is your biggest challenge for implementing S2020 onboard?

Understanding fuel availability

Fuel stability/compatibility

Documentation and compliance

System modifications

Storage and system flexibility

Compliant fuel procurement

0 10 20 30 40 50 60

Lloyd's Register 7
Sulphur 2020: from
contracting to final
combustion
Tim Wilson
Principal Specialist Fuels, Lubes and Emissions
MARPOL Annex VI Regulation 14 – final step 2020
Global Outside ECA SOX Control Emission Control Areas (ECA)
Step change from 3.5% to 0.50% from 1 Jan 2020 Max. fuel oil Sulphur content for ECAs-SOx: 0.10%

Emission Control Areas (ECA)

Max. fuel oil Sulphur content for ECAs-SOx: 0.10%

Confirmed ECA:
China ECAs-SOx (0.50%, 12 nautical miles from coast, from 1 Jan 2019)
Baltic & North Sea ECAs-SOx (and new ECAs-NOx from 1 Jan 2021)
N. America & US Caribbean ECAs-SOx and ECAs-NOx

Possible future ECA -

NOx control within ECA:

NOx Tier III requirement for ECA-NOx: Newbuilding keel laid from 1 Jan 2016.
NOx Tier III requirement for new ECA-NOx (Baltic and North Sea including English Channel):
Newbuilding keel laid from 1 Jan 2021.

Lloyd's Register 9
Main implementation concerns of 0.50% S marine fuels

Availability? Quality – Adaptability?

VLSO and HSFO safety? ship and crew

Enforcement /
Cost ?
consistency ?

Lloyd's Register 10
 Availability of 0.50% S fuels
Demand will drive supply: Expected mid-2019

Speed: Ability of refiners and supply networks

to respond to demand

Lack of 0.50 S % m/m residual: – Use distillates

Insufficient 0.50% S: Trade will not stop! FONAR

Some ports/suppliers may not hold HSFO

When
When do
Non-compliance: Strong possibility can you
you
supply
(intended or unintended) it?
want it?

Lloyd's Register
 Wide variability of 0.50% formulations expected

A ship ordering an RMG 380 0.50

can expect to meet RMG quality
2020 VLSFO 0.50% Blend range ? parameters across the full viscosity/
density spectrum

ULSFO

Lloyd's Register
% Bunker samples on global samples received (LR FOBAS)
Availability will be met by wide range of grades - Fuel scenarios
Scenario 1 3.5% replaced with VLSFO 0.50% with RM specs
(no shortages)
Scenario 2 VLSFO (RM) non availability requiring use of DM spec fuel
(cost low viscosity usage)
Scenario 3 ULSFO (0.10%) (RM or DM) potential wide variance in viscosity
(cost)
Scenario 4 No ULSFO or VLSFO, must load HSFO (DM or RM) FONAR
required– (risk of contaminating 0.50 tanks for net compliant fuel)
FONAR Ship procedure is key –only an application requesting use of a non
non compliant fuel
RM – Residual Marine – Requires some heating - HSFO- Sulphur >0.50%
DM – Distillate Marine – does not require heating but might require warming for high cold flow properties
Lloyd's Register
Specific fuel characteristics to watch
Fuel stability & Compatibility Cold flow Viscosity &
flashpoint onboard properties density

Know your Segregation Ambient ˚C Conditioning

blend stock best policy heating combustion

With care in supply blending and pro-active fuel management these risks can be mitigated.
We do it with today’s blended fuels
Lloyd's Register 15
 Compatibility (ship) and stability (supplier)
• Resistance of a single fuel oil to break down and form insoluble
Stability sticky sludge deposit

• Inability of residual fuel to stay homogeneous without deposition

Instability of asphaltenic type of deposits

• Ability of two or more fuels when mixed to form a stable and

Compatibility homogenous product

• Inability of two or more blend components to co-exist together

Incompatibility without breaking down and precipitating sludge

Two or more stable fuels,

• when blended together will form an unstable product
if incompatible,
• Heavy sludge deposits fuel system – blocked filters - low flow
CONSEQUENCES • Damage to purifiers and irregular combustion profile

Segregation of bunkers Compatibility checks Commingling plan

Lloyd's Register
Changing operating environment - Technical / operational
Requires complete review of machinery plant to adapt to wide variability of viscosity grades

CLO
2020 adaptability
Engine fuel pumps condition
Boiler fuel system
Filters
Purifiers
FO transfer pumps
Viscorator
Heaters
Coolers
CLO tanks
Storage tanks
SEA TRIALS
Contracts & Clauses
2020 | COMPLIANCE AND TRANSITION

Grant Hunter, Head of Contracts and Clauses

BIMCO clauses for 2020

01 02 03
BIMCO Suite of Bunker Clauses for BIMCO Marine Fuel Sulphur BIMCO Fuel Transition Clause for
Time Charter Parties: Content Clause for Time Charter Time Charter Parties
Parties
Bunkering operations &
sampling
Bunker quality & liability
Types & quantities of bunkers
on redelivery
Scrubber
clause
 Buying Marine Fuels

BIMCO Bunker Terms 2018

BIMCO LNG Bunker Contract

Sulphur 2020: from
contracting to final
combustion

Douglas Raitt
Regional Consultancy Manager
0.50% S potential impact
LR guidance and support
● Impact of 0.50% fuels on systems
● On-board management

Lloyd's Register 25
Compliant fuels
What do I need to consider? 01/2020

Initial risk Preparation Transition Compliance

assessment
Fuel management Ship implementation plan Fuel testing (FOBAS)
• Diverse fuel
spectrum ● Fuel quality and availability ● SIP development ● Testing
• Vulnerable ● Storage and handling ● SIP review ● Analytical support
supply chain
● Treatment and best practice ● Vessel trials ● Mixing guidance
• Fuel quality
● Training - crew competence ● Demonstrating best practice ● Contamination investigations
• Compatibility
● Regular inspection and advice
• Fuel stability Ship assessment
• Equipment Operations
● Tank arrangement
reliability
● Scenario planning ● Fuel management audits
• Onboard
arrangements ● Equipment adaptability and flexibility ● Supply chain variations
• Operating ● Changes/modifications ● Non-availability (FONAR)
procedures ● Non- compliance response
People management ● System changes

approval
● In-life maintenance and survey

Class
● Stakeholder engagement ● Structural modifications
● Rule & Regulatory compliance
● Training and awareness ● Statutory compliance

Ongoing risk assessment

Lloyd's Register 26
Ship implementation plan (SIP)
Not mandatory but HIGHLY RECOMMENDED – IMO expects
Fuel change management plan • Understood 2020 variables and impact
• Demonstration to 3rd parties
Risk and adaptability assessment

System modification and tank cleaning

Capacity and segregation

C/O plan – initial loadings and trials

Documentation and reporting

Crew awareness

Lloyd's Register 27
Sulphur 2020: from
contracting to final
combustion
Any questions?
Sulphur 2020: from
contracting to final
combustion

Thank you for your participation