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SECA Challenge - Containerships

TURKU 19.11.2014/kpl

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SECA is the area in which environmental regulations set by IMO will come into force on the 1st of January 2015 • Vessel operators must

find an energy source that contains not more than 0,1% Sulphur against 1% currently

ENVIRONMENTAL CHALLENGE

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Marine Gas Oil (MGO) Designed for use in all diesel-fuelled engines

Alternative fuels (methanol, biofuels)

Available solutions

Scrubber with Heavy Fuel Oil (HFO)

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Source: Gasum

Share of different vessel fuels in Baltics 2015

Sail

Steam Oil

Gas

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+ –

• Utilize next generation fuels

• Normal diesel oil • 95–98 % of the

vessel operators are expected to use this technology in 2015

• ‘Wash’ SOx emissions from exhaust gases

• Use LNG as a fuel

• Implementation cost: 3–4 M€ / vessel • Can not be fitted on all of the vessels • Limited market capability to install a

sufficient number of scrubbers

• Running cost are 50% more expensive than HFO

• In order to keep the costs down, slow steaming is needed:

• HBG/RTM – St. Petersburg: plus one day

• The LNG supply infrastructure exists only in Rotterdam, but is building up in the North and Baltic Sea

• LNG-engines and tanks are more expensive than traditional vessel engines & HFO tanks

• Can be installed, but on specific vessels only

• Environmentally friendly • Benefit from possible future

emission trading (CO2) • Tackling also future

legislation needs: PM, Noᵪ • A market price is already

existing for natural gas

• No major modifications to the vessels are needed

Heavy Fuel Oil Scrubber (HFO)

Marine Gas Oil (MGO)

Alternative fuels

• ‘Clean’ from an ecological perspective

• Large-scale technology is not yet in place

• Uncertainty about its availability

Most companies are choosing MGO or HFO with scrubber

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2-phased solution

Target is to renew fleet by having a combination of LNG–fuelled vessels and scrubber

equipped vessels Plan for the fleet in 2015 - 2016:

• Vessel 1 scrubber in 2015 • Vessels 2 and 3 scrubber in 2015 • Vessels 4 and 5 scrubber in 2015 • Vessels 6 – 7 LNG equipped in 2016 • Vessels 8 - 9 LNG equipped in 2017 • Vessels 10 – 11 LNG equipped in 2018

2015: Half of the fleet equipped with scubber 2016: Starting to renew the fleet with LNG vessels

We take care

+ –

• Utilize next generation fuels

• Normal diesel oil • 95–98 % of the

vessel operators are expected to use this technology in 2015

• ‘Wash’ SOx emissions from exhaust gases

• Use LNG as a fuel

• Implementation cost: 3–4 M€ / vessel • Can not be fitted on all of the vessels • Limited market capability to install a

sufficient number of scrubbers

• Running cost are 50% more expensive than HFO

• In order to keep the costs down, slow steaming is needed:

• HBG/RTM – St. Petersburg: plus one day

• The LNG supply infrastructure exists only in Rotterdam, but is building up in the North and Baltic Sea

• LNG-engines and tanks are more expensive than traditional vessel engines & HFO tanks

• Can be installed, but on specific vessels only

• Environmentally friendly • Benefit from possible future

emission trading (CO2) • Tackling also future

legislation needs: PM, Noᵪ • A market price is already

existing for natural gas

• No major modifications to the vessels are needed

Heavy Fuel Oil Scrubber (HFO)

Marine Gas Oil (MGO)

Alternative fuels

• ‘Clean’ from an ecological perspective

• Large-scale technology is not yet in place

• Uncertainty about its availability

Containerships approach 2016

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• Lighter than air (when in gas form) • Easy to storage and transport • Only 1/600 of volume of “pipe gas”

WITH LNG REDUCING EMISSION

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TRUCK FLEET POWERED

• In Finland, Russia and the UK • Own refueling station • Pilot phase in process since

Q1/2014

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Environmental comparison Emissions for 33 euro pallets from BE-Brussels to RU-Moscow

Carbon Dioxide (CO2) Methane (CH4) Nitrous oxide (N2O) Total Contribution to Global Warming (kg)

Emissions per journey Greenhouse gases

Multimodal:

technology vessel

Road

2 886,00 0,11

25,79 2 911,90

1 133,57 55,81

9,60 1 198,98

Saving on Contribution to Global Warming 59%

Assumptions in above calculation: ROAD Multimodal LNG Road – Sea – Road (45’ cnt) Using EURO 5 truck LNG vessel with 800 TEU load Brussels to Moscow direct Fuel: LNG with 16% less consumption than HFO - Dual-Fuel engine vessel will burn 99% of LNG and 1% of MGO 2.600 KM road Using EURO 5 truck Brussels to Ghent 58 km Ghent to St. Petersburg 1.200 n. miles St. Petersburg to Moscow 700 km

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Long-term solution LNG as a main fuel for whole end-to-end service

• Target to operate 8 to 10 LNG vessels (Sea) • LNG powered trucks • To improve the vessels’ efficiency in order

to maintain competitiveness • To exceed all known future environmental

regulations

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THANK YOU