3/15/06 tripartite agreements and bio fuels maurice gordon, p.e. maritime systems engineering, inc....

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3/15/06 3/15/06 Tripartite Tripartite Agreements Agreements and and Bio Fuels Bio Fuels Maurice Gordon, P.E. Maurice Gordon, P.E. Maritime Systems Maritime Systems Engineering, Engineering, Inc. Inc.

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3/15/063/15/06

Tripartite Tripartite AgreementsAgreementsandand

Bio FuelsBio Fuels

Maurice Gordon, P.E.Maurice Gordon, P.E.

Maritime SystemsMaritime Systems

Engineering, Inc.Engineering, Inc.

3/15/063/15/06

IntroductionIntroduction

• MARPOL Annex II and IBC Code Revisions MARPOL Annex II and IBC Code Revisions •Effective 1 January 2007Effective 1 January 2007

• Re-classification for all chemicalsRe-classification for all chemicals• IBC Code Chapters 17 & 18IBC Code Chapters 17 & 18

•MEPC.2 CircularMEPC.2 Circular

• Insufficient time to reclassify all productsInsufficient time to reclassify all products

Maritime Systems Engineering, Inc.

3/15/063/15/06

GESAMPGESAMP

• GGlobal lobal EExperts on the xperts on the SScientific cientific AAspects of spects of MMarine arine PPollutionollution

• Technical committee sponsored by 8 Technical committee sponsored by 8 UN agencies including IMOUN agencies including IMO

Prepares Hazard Profile (GHP) for Prepares Hazard Profile (GHP) for productproduct

Maritime Systems Engineering, Inc.

3/15/063/15/06

ESPHESPH

• EEvaluation of valuation of SSafety and afety and PPollution ollution HHazards Working Groupazards Working Group

• Part of IMO Subcommittee on Part of IMO Subcommittee on BBulk ulk LLiquids and iquids and GGasses (BLG)asses (BLG)

Pollution CategoryPollution CategoryShip TypeShip TypeConditions of CarriageConditions of Carriage

Maritime Systems Engineering, Inc.

3/15/063/15/06

Current Approval StatusCurrent Approval Status

• 120 products not approved due to 120 products not approved due to missing datamissing data

• Mixtures and trade name products Mixtures and trade name products from MSC.2 Circular not approvedfrom MSC.2 Circular not approved

Maritime Systems Engineering, Inc.

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Parties to TripartiteParties to Tripartite

• Source State – Shipping or producing Source State – Shipping or producing countrycountry

• Destination State – Country receiving Destination State – Country receiving the productthe product

• Flag State – Ship’s country of registryFlag State – Ship’s country of registry

Maritime Systems Engineering, Inc.

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Product EvaluationProduct Evaluation

• Initiated by Source StateInitiated by Source State

• Required before initiating Tripartite Required before initiating Tripartite AgreementAgreement

Maritime Systems Engineering, Inc.

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What is the Product?What is the Product?

Is VaporPressure >.28MPa

@37.8ºC?

Is ProductAn Oil?

Liquefied Gas(Gas Carrier

Code)

MARPOLANNEX I

MARPOLAnnex IIIBC Code

Yes

No

No

Yes

Maritime Systems Engineering, Inc.

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Existing ApprovalsExisting Approvals

• Review IBC CodeReview IBC Code•Chapter 17 – Substances governed by IBC Chapter 17 – Substances governed by IBC

CodeCode

•Chapter 18 – Substances not governed by IBCChapter 18 – Substances not governed by IBC

•Chapter 19 – Index of Products Carried In BulkChapter 19 – Index of Products Carried In Bulk– Includes cross-reference of synonymsIncludes cross-reference of synonyms

• Review MEPC.2 CircularReview MEPC.2 Circular•Recent ApprovalsRecent Approvals

•Products with Tripartite AgreementsProducts with Tripartite Agreements

Maritime Systems Engineering, Inc.

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MEPC.2 Circular ListsMEPC.2 Circular Lists

• List 1 – Pure productsList 1 – Pure products• Fully evaluated and approved for next IBC CodeFully evaluated and approved for next IBC Code

• Products with Tripartite AgreementsProducts with Tripartite Agreements

• List 2 – Pollutant-only mixturesList 2 – Pollutant-only mixtures• Many listed by trade nameMany listed by trade name

• List 3 – Trade name products with safety List 3 – Trade name products with safety hazardshazards

• List 4 – Pollutant-only mixtures with >1% List 4 – Pollutant-only mixtures with >1% unassessed componentsunassessed components

Maritime Systems Engineering, Inc.

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Is There a Hazard Is There a Hazard Profile?Profile?

Listed in IBCCode?

Apply IBC orMEPC.2

Amendment

InitiateProvisional Assessment

Yes

No

No

Yes

Listed inMEPC.2

Circular?

Pure Product or Aqueous Solution

Does EntryHave

Expiration?

ReviewAssessment;

Join Agreement

Yes

No

Maritime Systems Engineering, Inc.

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Provisional AssessmentProvisional Assessment

New GESAMPProfile?

EvaluateAvailable

Data

Derive PollutionCategory and

Ship Type

Yes

No

Yes

Pure Product or Aqueous Solution

SufficientFor Provisional

HazardProfile?

Classify byAnalogy

No

Assign CarriageRequirements

InitiateTripartite

Agreement

Maritime Systems Engineering, Inc.

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Mixtures Mixtures ≥99% Listed ≥99% Listed ProductsProducts

SafetyHazards?

NotifyDestination State

& Flag State

CalculatePollution

Category andShip Type

Yes

Mixtures

Assign (n.o.s.)Code Entry

No

Assign CarriageRequirements

InitiateTripartite

Agreement

Product ≥99%IMO Listed

Components

Maritime Systems Engineering, Inc.

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Mixtures Mixtures <99% Listed <99% Listed ProductsProducts

Assess MixtureAs A Whole?

CalculatePollution

Category andShip Type

Yes

Mixtures

Assess EachComponent

No

Use Process forPure Products

InitiateTripartite

Agreement

Product <99%IMO Listed

Components

Assign CarriageRequirements

Maritime Systems Engineering, Inc.

3/15/063/15/06

Tripartite ProcessTripartite Process

Response within14 Days?

Provisional AssessmentBy

Tripartite Agreement

Yes

ProposalDeemedAccepted

No

AssignMost SevereConditions

InitiateTripartite

Agreement

PositiveResponse?

No

Yes

Maritime Systems Engineering, Inc.

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Tripartite Follow-upTripartite Follow-up

• Flag State – Amend Vessel Flag State – Amend Vessel CertificatesCertificates

• Source State – Advise IMO within 30 Source State – Advise IMO within 30 daysdays

• IMO – Updates MEPC.2 CircularIMO – Updates MEPC.2 Circular

Maritime Systems Engineering, Inc.

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Assessment CompletionAssessment Completion

• Provisional Assessment valid for 3 yearsProvisional Assessment valid for 3 years

• Manufacturer submits data to GESAMPManufacturer submits data to GESAMP

• GESAMP issues Hazard ProfileGESAMP issues Hazard Profile

• Manufacturer (via Source State) submits Manufacturer (via Source State) submits

proposal for IBC Entry to IMOproposal for IBC Entry to IMO

Maritime Systems Engineering, Inc.

3/15/063/15/06

What is Biodiesel?What is Biodiesel?

• FFatty atty AAcid cid MMethyl ethyl EEster (FAME) of ster (FAME) of Vegetable Oil or Animal FatVegetable Oil or Animal Fat

• Variations in feedstock sourceVariations in feedstock source

• Commodity Exchanges govern Commodity Exchanges govern feedstockfeedstock

Maritime Systems Engineering, Inc.

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IMO AssessmentIMO Assessment

• Biodiesel assessed individually by sourceBiodiesel assessed individually by source

• Current ApprovalsCurrent Approvals

•Palm Oil FAME (IBC Chapter 18)Palm Oil FAME (IBC Chapter 18)

•Coconut Oil FAME (IBC Chapter 18)Coconut Oil FAME (IBC Chapter 18)

•Rapeseed (Canola) Oil FAME (MEPC.2/Circ. List 1)Rapeseed (Canola) Oil FAME (MEPC.2/Circ. List 1)

• None Approved under new IBC CodeNone Approved under new IBC Code

Maritime Systems Engineering, Inc.

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US Coast Guard ActionUS Coast Guard Action

• Tripartite Agreement for Biodiesel: Tripartite Agreement for Biodiesel: Soy, rapeseed or tallow methyl estersSoy, rapeseed or tallow methyl esters

• Between U.S. ports in U.S. flag vesselBetween U.S. ports in U.S. flag vessel

• Assessment under old IBC by analogyAssessment under old IBC by analogy• Valid through 31 December 2006Valid through 31 December 2006

• Currently working on Tripartite for Currently working on Tripartite for international carriageinternational carriage

Maritime Systems Engineering, Inc.

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Biodiesel ClassificationBiodiesel Classification

• Generic approachGeneric approach

• Pollutant only productPollutant only product

• Suggested listingSuggested listing

Biodiesel, animal or vegetable Biodiesel, animal or vegetable

Fatty acid methyl ester (n.o.s.)Fatty acid methyl ester (n.o.s.)

Maritime Systems Engineering, Inc.

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Biodiesel UsesBiodiesel Uses

•Pure Biodiesel (B100) as fuel Pure Biodiesel (B100) as fuel additiveadditive

•Blended Biodiesel – 15%-20% in Blended Biodiesel – 15%-20% in petroleum diesel fuel (B15 or petroleum diesel fuel (B15 or B20)B20)

•B100 for use as unblended fuelB100 for use as unblended fuel

Maritime Systems Engineering, Inc.

3/15/063/15/06

Biodiesel VolumesBiodiesel Volumes

•B100 fuel additive: low volume B100 fuel additive: low volume increasing as market maturesincreasing as market matures

•B15 or B20 blend or B100 fuel: B15 or B20 blend or B100 fuel: Volume comparable to current Volume comparable to current diesel oil requirementsdiesel oil requirements

•Volumes likely to exceed Volumes likely to exceed chemical tanker capacitychemical tanker capacity

Maritime Systems Engineering, Inc.

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U.K. & Sweden GuidanceU.K. & Sweden Guidance

• Interim Guidance pending MEPC Interim Guidance pending MEPC considerationconsideration

•Applies to bio-fuels, bio-alcohol Applies to bio-fuels, bio-alcohol and various FAMEsand various FAMEs

Maritime Systems Engineering, Inc.

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U.K. & Sweden GuidanceU.K. & Sweden Guidance

• Bio-fuels in pure state – Annex IIBio-fuels in pure state – Annex II

• Bio-fuels blended with petroleum up Bio-fuels blended with petroleum up to 15% – Annex Ito 15% – Annex I

• Construction materials compatible Construction materials compatible with cargowith cargo

• Bio-fuel concentrations over 15% Bio-fuel concentrations over 15% require Administration reviewrequire Administration review

Maritime Systems Engineering, Inc.

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Annex I TreatmentAnnex I Treatment

•Biodiesel can be used in any Biodiesel can be used in any concentrationconcentration

•Demand likely to growDemand likely to grow

•Volume will become more Volume will become more consistent with product tanker consistent with product tanker capacitycapacity

Maritime Systems Engineering, Inc.

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Annex I TreatmentAnnex I Treatment

•Limit to double hull tankers Limit to double hull tankers meeting Annex I Regulation 13Fmeeting Annex I Regulation 13F

•Overboard discharge limited as Overboard discharge limited as oiloil

– Decanted water onlyDecanted water only

– ODMEs may require re-certificationODMEs may require re-certification

Maritime Systems Engineering, Inc.