PAX_SOLUTIONS

IMO2020 EMISSIONS MANAGEMENT

November 2018
 OUTLINE
IMO2020 BACKGROUND

Effective 1st Jan 2020, IMO will impose a 100% compliance to 0.5% Sulphur emissions globally.
Compliance monitored by port state authorities (USCG etc). Non-compliant vessels to prove they could not secure
compliant fuels. Enforcement methods and penalties (vessel detention, fines or commercial restrictions) are not
finalized. We await Marine Environment Protection Committee (MEPC) 22-26th Oct 2018 for more updates

ECONOMICS

-Availability of low sulphur fuel

-Oil price uncertainty
-Cost of EGCS and EGR/SCR
-Market based measures

EMISSIONS REGULATIONS

-SOx, NOx, CO2, PM

-Emission Control Areas (ECAs)
-Local emissions regulations
• CARB, EU, Chinese
 Economics - Marine Fuel Demand
• Significant change in demand
profile overnight from 1 Jan
2020.

• Approximately 3million
barrel/day (155million
tonnes/year) switch.

• Predominantly met with MGO

and 0.1/0.5% S fuels.

• LNG and other alternative

fuels may play increasing role.

Courtesy: Shell
 Economics - Compliance Options
Fuels/Technologies
Low sulphur distillate fuels
Exhaust Gas Cleaning Systems (EGCS)
LNG and other alternative fuels
Low sulphur ‘hybrid’ fuels
Pros
• Widely used with few limitations
• Very low CAPEX and small modifications
• Reduces both SOX and PM
• Continue using low cost HFO
• Pay back period accelerated with high
price differential
• Clean fuel meets 0.1% SOX requirements
• Potential low fuel costs
• Price expected lower than distillate fuel oil
• No modifications required for existing
vessels
• Low Sulphur content, but behave like
conventional fuels
Cons
• Price difference compared to HFO
• Low viscosity and lubricity
• Existing vessels may need modifications in
FO storage, systems, boiler, etc.
• High installation costs
• Relatively new marine technology
• Limitations on washwater discharge
• Fuel oil availability after 2020?
• High CAPEX
• Limited bunkering infrastructure
• Lower energy density -need higher volume
tank
• Limited availability
• Not yet categorized in ISO:8217 marine
fuel standard
• Compatibility/stability issues?
 EMISSIONS REGULATIONS – GLOBAL & REGIONAL

Effective & Phase-in Dates

PAX_SOLUTIONS
IMO2020 EMISSIONS MANAGEMENT

CUSTOMER PRESENTATION

PaxOcean Group
Corporate Office : No. 1 Kim Seng Promenade
#07-02
Singapore 237994

Tel : (65) 6737 7300

Email : marketing@paxocean.com
Kuok Group Worldwide
 PaxOcean Group Structure

Kuok Singapore Limited PaxOcean Engineering Pte Ltd

Legend
Marketing &
Newbuilding Commercial
PaxOcean Holdings Pte Ltd
Ship Repairs & Conversion (PHPL)
Engineering
Procurement
O&G and Offshore Activities & Design

PaxOcean PaxOcean PaxOcean PaxOcean

Singapore Zhuhai Zhoushan Batam

SINGAPORE CHINA CHINA BATAM

 SHIPYARDS
INTRODUCTION
PaxOcean Group of Shipyards

Zhoushan, China
Zhuhai, China PaxOcean Singapore PaxOcean Zhoushan PaxOcean Zhuhai

Singapore

Batam, Indonesia

PaxOcean Pertama PaxOcean Graha PaxOcean Nanindah

PaxOcean Singapore Yard

3 2
1

Floating Dock
Total Area: 110,000 m2 DOCK LENGTH WIDTH TLC
No. 1 122 M 22 M 3,400
Docking up to Handymax-Sized Vessels
Afloat repairs up to Panamax-Sized Vessels No. 2 195 M 34 M 16,000
No. 3 187 M 36 M 16,000
PaxOcean Pertama Yard (Batam)

Floating Dock
Total Area: 272,000 m2 DOCK

No. 1
LENGTH

97 M
WIDTH

24 M
TLC

3,200
Docking up to Panamax-Sized Vessels No. 2 186 M 36 M 16,000
Afloat repairs up to VLCC-Sized Vessels
Dock V 235 M 40 M 22,000
PaxOcean Graha Yard (Batam)

Building Berths
Building Berths 3 nos. 80 M x 80 M
Total Area: 495,000 m2 Berth
2 nos. 170 M x 50 M
455 M
Equipment Mobile cranes up to 1,250 T
PaxOcean Nanindah Yard (Batam)

Building Berths
Berthing Wharf 2,500 M
Total Area: 546,000 m2 Workshop Area 31,900 M2

Equipment Cranes up to 600 tons SWL

PaxOcean Zhoushan Yard (China)

900T Crane

Graving Dock
DOCK LENGTH WIDTH

Total Area: 800,000 m2 Central

West
400 M
380 M
106 M
80 M
PaxOcean Zhuhai Yard (China)

1 3
2

Covered Launchways
Total Area: 200,000 m2 LAUNCHWAY
No. 1
LENGTH
210 M
WIDTH
27 M
No. 2 210 M 27 M
No. 3 110 M 38 M
Group Achievement

NEWBUILDING
600 Vessels and Barges
+
Across major vessel classes, including
15 Jack up Rigs and Liftboats
Jack-Up Rig L209 CJ46
“Aurora V”
56m RoRo/Passenger Ship

Drilling Jack-Up Barge

“Ocean Swagman”
8,000m2 Livestock Carrier
Group Achievement

CONVERSIONS Successfully delivered

46 Conversions
“Frontier Duchess” “Posh Bawean”
Drillship Upgrading Upgrading to Accommodation Vessel

“Sea Good 101” “Pearl River”

Tanker to FPSO Lengthening of Vessel
 Group Achievement

Repaired over 2000 Vessels

Avg. 370 vessels per year

“Ore Brasil”
400,000 DWT VLOC

“COSL 942”
Jack Up Drilling Rig

REPAIRS

“Rio Illapel”
47,020 DWT Vehicle Carrier “Leiv Eiriksson”
CSAV Heavy Dredger
 PAX_SOLUTIONS – BWTS TRACK RECORD
(RECENT 2 YEARS)
YEAR COMPANY VESSEL TYPE DWT COUNTRY MAKER SHIPYARDS

2017 Solvang ASA LPGC 18,110 Norway Optimarin PaxOcean Singapore

2017 Hartmann Schiffahrts Gmbg & Co LPGC 9,133 Germany Qingdao Headway PaxOcean Singapore
KG Technology
2018 Mediterranean Shipping Company Container 117,247 Italy Alfa Laval PaxOcean Zhoushan

2018 Mediterranean Shipping Company Container 73,355 Italy Alfa Laval PaxOcean Zhoushan

2018 Ahrenkiel Steamship GmbH & Container 55,313 Germany Optimarin PaxOcean Zhoushan
Co.KG

2018 SDSC Ship Management Co., Ltd. Bulk Carrier 94,710 China Sun-Rui PaxOcean Zhoushan

2018 SITC Ships Management Co.,Ltd Bulk Carrier 76,202 China Sun-Rui PaxOcean Zhoushan

2018 John T. Essberger Gmbh & Co. KG Bulk Carrier 34,274 Germany Alfa Laval PaxOcean Singapore

2018 V-Ships Monaco Research Survey 1,506 United Kingdom Alfa Laval PaxOcean Singapore
 PAX_SOLUTIONS – EGCS RETROFIT CAPACITY
SHIPYARDS SINGAPORE BATAM ZHOUSHAN

CAPACITY 20 SCRUBBERS A YEAR 20 SCRUBBERS A YEAR 50 SCRUBBERS A YEAR

AVAILABILITY FROM IMMEDIATE IMMEDIATE IMMEDIATE

ON-SITE SCRUBBER YES YES YES

FABRICATION/ ASSEMBLY

RETROFITTING BERTH – PANAMAX BERTH – VLCC BERTH – ULOC

(Max. Size) DOCK – SUPRAMAX DOCK – PANAMAX DOCK – ULOC

CLASS (APPROVAL) ABS, DNV, LR, NK ABS, DNV, LR, NK ABS, DNV, LR, NK

CURRENT ORDERS 4 10 29
PAX_SOLUTIONS – 3D SCANNING FOR SCRUBBER
RETROFIT TRACK RECORD
YEAR VESSEL VESSEL TYPE DWT

Jun-2018 Pac Schedar General Cargo 26,406

Jul-2018 Ikan Bawal Bulk Carrier 83,476

Aug-2018 Jubilant Devotion Bulk Carrier 117,549

Aug-2018 Ikan Pulas Bulk Carrier 63,590

Aug-2018 Pac Suhail General Cargo 27,230

Sept-2018 Ikan Parang Bulk Carrier 56,618

 EGCS (Exhaust Gas Cleaning System)
INTRODUCTION | PROCESS & SOLUTION
EGCS - INTRODUCTION
EGCS Pros Cons Application

Open • Uses seawater for scrubbing; does not • Not suitable for low alkalinity water • Vessels operating most
usually involve storage or handling of • Restriction of washwater discharge in certain of the time in the
Loop hazardous chemical (caustic soda) coastal/port areas ocean/open sea.
• Comparatively simple system; less • Large washwater demand • Vessels not entering
equipment/system compared to areas with washwater
closed loop discharge restriction.
• CAPEX and OPEX relatively low

Closed • Independent of operation location – • Complex washwater system • Vessels trading

in low alkalinity water; in discharge
Loop restricted coastal/port areas
• Effluent is stored onboard for the
duration that the tank volumes will
permit
• Additional equipment/system for water treatment constantly in areas
with discharge
• More space required restriction or low
• Special care for handling and storage of NaOH alkalinity Water
solution, a hazardous substance.
• Operation duration limited by effluent tank
size
• Relatively higher CAPEX
• Relatively higher OPEX due to use of NaOH and
residue handling

Hybrid • Significant flexibility for operating in
all regions regardless of seawater
alkalinity or temperature
• Effluent may be stored onboard for
the duration that the tank volumes
will permit
• Complicated system with more components • Both in ocean/ open
• More space required sea and discharge/
operation restricted
• Handling and storage of NaOH, and residue areas
disposal for closed mode operation
• Highest CAPEX
• Higher OPEX due to use of NaOH and residue
handling
 EGCS - INTRODUCTION

OPEN LOOP EGC SYSTEM CLOSE LOOP EGC SYSTEM HYBRID EGC SYSTEM
EGCS - INTRODUCTION

Courtesy: ABS
EGCS - INTRODUCTION
MANUFACTURERS A B C D

INTRODUCTION U-Type U-Type L_SH type, U-Type

PROS Customized Customized Short Lead time Customized
product is more product is more product is more
compact. compact. compact.
Long reference list. Long reference list.

CONS Longer lead time Longer lead time Standard Product, No long reference
due to customize due to customize heavy, and no list
and long order and long order flexible for sizing
book book
PRICE RANGES USD 1.4mil – USD USD 1.4mil – USD USD 1.0mil – USD USD 800k– USD
(LR / Panamax) 1.8mil 1.8mil 1.2mil 1.0mil
(Conditions applies)

DELIVERY 18 – 20 Months 16 – 18 Months 12 – 15 Months 6 to 8 Months

SCHEDULES
EGCS (Exhaust Gas Cleaning System)
INTRODUCTION | PROCESS & SOLUTION
EGCS – PAX_SOLUTIONS ENGAGEMENT PROCESS
Select Candidate Vessel

Economic/feasibility Study
Pax_Solutions
3D Scanning / Pre-engineering

Select EGCS Manufacturer

Engineering Design

Contract for EGCS Design & Fabrication

Class Approval

EGCS installation

Commissioning/Testing

After Sale Support

EGCS – PAX_SOLUTIONS RETROFIT SCHEDULE
EGCS Retrofit Work Schedule

Task/ Schedule (week) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Pre-Study
Finish 3D Scanning
Basic & Detail Design
Basic Design Approval
Production Design
Order EGCS, Design
EGCS Sytem Fabrication
Bulk Material Purchase
Yard Pre-Fabrication
Retrofit - Installation
Commissioning / Test

Note: above schedule was based on Package D. The schedule subject time place order
 EGCS - Pre-Engineering
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

3D Scan---Ideal for retrofitting work on existing ship

 3D scan can be conducted prior to vessel arrival in shipyard
 A team of engineers are readily deployable to the ship
anywhere in the world
 3D scan can be conducted without affecting the normal
ship routine
 3D scan results can be incorporated into 3D Design for
subsequent engineering works
 Engineering can work on the proposals or solutions while
vessel is underway or working with
 Customer head office, or
 Technical office, or
 Ship crew
 No downtime required from the vessel for engineering
EGCS - Pre-Engineering to Engineering
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

Arrange the Scrubber components into the existing ship systems

EGCS – Retrofit Experience and Engineering
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

• Revised piping diagram to be reflected suitable valve and instrument for Scrubber system.
• Below revised exhaust gas system and sea water system are shown for retrofitting Post Panamax vessel.

Exhaust Gas System Sea Water System

EGCS - Managing Class Approval
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

Approval requirements, managed by Pax_Solutions.

1 Exhaust gas cleaning system diagram
2 General arrangement
3 Engine room arrangement plan(Including funnel)
4 Piping diagram related to the EGCS
5 New added room/tanks construction and arrangement plan
6 Electrical system, electrical power balance chart, circuit current calculation,
Ex-proof grade
7 Wiring diagram for main circuit of power supply
8 Test procedure for the EGCS on board
9 Others (if class consider it’s necessary)
10 EGCS Vendor will supply these documents:
SECP -- Sox Emissions Compliance Plan
ETM-B -- EGC system - Technical Manual for Scheme B
OMM -- Onboard Monitoring Manual
EGC Record Book
EGC System Fabrication
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

Order placed, monitoring of fabrication process and inspection of components before Vessel arrival

Open loop Scrubber for VLCC – Main Engine & Boiler

Open loop Scrubber for MR tanker

 EGCS - Pre-Retrofitting work in Yard
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

All class approval drawings to be released to PaxOcean facilities for

• Production drawings,
• Material procurement
• Pre-Fabrication of work before vessel arrival.
 EGCS – Execution from Design to Implementation
Pre-Fabrication at
Procurement to
Pre-Study to Design Approval Yard to Complete
Delivery of Scrubber
Installation & Testing

• Exhaust pipes might have interference with lifeboat

• Housing of Scrubber to be prefabricated.
platform.
• This shall include support structure, scrubber, exhaust
gas pipes, sea water pipes and other necessary
accessories.
PROPOSAL AND NEXT STEPS
EGCS – NEXT STEPS
SUBMIT LETTER OF INTEREST & COMPLETE LIST OF WEEK 1 – WEEK 2
INTENDED VESSEL

PAXOCEAN TO PROVIDE ENGINEERING OFFER AND

WEEK 1 – WEEK 2
HIGH LEVEL TURNKEY PAX_SOLUTIONS QUOTATIONS

CONTRACT SIGNING
WEEK 3
(ENGINEERING SERVICES)

3D SCANNING & SELECTION OF MAKER WEEK 3 – WEEK 4

PLACED ORDER TO BOOK FACILTIIES SLOT OF

SHIPYARD AND SCRUBBER MAKER WEEK 3 – WEEK 8
Thank You
www.paxocean.com

PaxOcean Group
Corporate Office : No. 1 Kim Seng Promenade
#07-02
Singapore 237994

Tel : (65) 6737 7300

Email : marketing@paxocean.com