Maersk: Global emissions deal is sink or swim for IMO - Business Green Sustainable Thinking

Posted February 24 2011 - Business Green Sustainable Thinking - By Will Nichols

Failure to secure some form of deal to help make new ships more carbon efficient could see the International Maritime Organization (IMO) lose its status as the industry's guiding body, according to a senior executive at one of the world's largest shipping companies.
Jacob Sterling, head of climate and environment at Maersk, told BusinessGreen the UN body has to come away from a meeting in July with agreement on preliminary steps towards cutting shipping's carbon emissions or risk seeing its negotiating role supplanted by the UN's climate change secretariat, the UNFCCC.
"In July [the IMO] is discussing and trying to agree a global efficiency standard for new ships – it's a first step, it's not radical or highly ambitious," he said. "But it is make or break for the IMO if it wants to play a role in the future of shipping."
The IMO has overseen the slow progress of negotiations designed to agree how to reduce emissions from the sector, which account for about four per cent of global emissions and are predicted to increase exponentially as global trade expands.
However, the body denied that the outcome of July talks, known as MEPC 62, would decide its future.
"The Kyoto Protocol says that countries should work through the IMO to address shipping emissions and I don't see that changing," an IMO spokeswomen told BusinessGreen. "We hope to get some sort of agreement in July, but until we have that meeting its impossible to speculate. If nothing is agreed, other organizations may decide to take specific action, but we cannot comment on what they decide to do."

Complete Story at:
http://www.businessgreen.com/bg/news/2028570/maersk-global-emissions-deal-sink-swim-imo

"Emission Trading System Vs A Bunker Levy" - Carbon Postive

February 2011 issue - Helena Athoussaki, CEO, Carbon Positive - Maritech

Carbon Positive believes an emissions trading scheme (ETS) is preferable to a bunker levy for reducing greenhouse-gas (GHG) emissions in shipping. The experience in other industrial sectors over two decades shows that over the long term an ETS offers a number of advantages: (1) a low cost of compliance, (2) more choice and flexibility given to each ship owner in how they cut emissions, and (3) greater certainty that an emissions reduction target is actually reached.
The initial attraction to a bunker levy as a simpler solution to regulation is understandable; ship owners and charterers faced with regulation just want to know what the penalty is, cover it, and get on with business. But many ship-owners don’t recognize that the higher environmental cost of inefficient ships will merely be passed on by charterers who will pay lower rates to their owners. However, a well-designed ETS in close consultation with the maritime sector will enable owners to protect themselves. An ETS will mobilize the engineering talents of the private sector to develop a wide range of emissions-control options, the cheapest of which will win out. In addition, non-ship-based reductions might be used to reduce the pressure on ship-owners to cut their ship-based emissions.

Complete Story at:
http://www.carbonpositive.net/viewarticle.aspx?articleID=2274

Supply chain optimization will reduce shipping emissions and benefit the environment - DNV

Posted February 21, 2011 - DNV - Author: Per Wiggo Richardsen

Oslo: Together with partners in the MARLEN project, DNV recently completed the development of a supply chain performance tool for calculating the environmental impact and energy efficiency of maritime logistics chains. Two case studies used to evaluate the tool demonstrated how increased use of shipping can achieve environmental and financial benefits for the supply chain as a whole.
The Maritime Logistics Chains and the Environment project (MARLEN), established in 2008, has developed tools to map environmental performance of a logistics chain (“As-Is”) and to evaluate the potential consequences of changes in parts of the chain may have for the chain as a whole (“What-If”).
The tools were tested on Höegh Autoliners’ multimodal distribution system for transporting new cars from the production plant to inland distribution centers. A model was developed to optimize the total distribution system on a cost only, environmental performance only, or weighted combination basis changing parameters such as the number and location of ports, type of ships, sailing frequency and the use of rail or road inland. The results showed that costs and total energy consumption could be reduced when the proportion of transportation performed by ships was increased.
A second case study analyzed ...

Complete story at:
http://www.dnv.com/press_area/press_releases/2011/supplychainoptimizationwillreduceshipemissionsandbenefittheenvironment.asp

Crucial IMO vote on cutting shipping emissions needs EU action now - European Federation for Transport and Environment AISBL

Posted - Thursday, February 17, 2011 - Transport and Environment

The Clean Shipping Coalition (CSC) is calling on six European countries to ratify a crucial piece of marine environmental legislation, in order to enable their participation at a crucial vote on energy efficiency standards for ships at a meeting of the International Maritime Organization (IMO) this Summer.
In July, the IMO will vote on the Energy Efficiency Design Index (EEDI) – an amendment to MARPOL Annex VI, the IMO’s shipping pollution legislation. The EEDI could lead to newly-built ocean ships becoming progressively more efficient by 2030, with associated reductions in CO2 emissions of up to 20% as the fleet is renewed. If adopted, the EEDI would represent the world’s first global mandatory climate instrument for any sector.
But the vote is likely to be very tight as there is opposition from countries such as China and Saudi Arabia who object in principal to global measures that treat all countries equally. In the EU, Hungary, current holders of the EU presidency, as well as the Czech Republic, Austria, Slovakia, Malta and Monaco are yet to ratify MARPOL Annex VI, so are not eligible to vote on the EEDI. For that reason, the Clean Shipping Coalition (CSC) and the EEB have written to the Hungarian Minister of Rural Development, Sándor Fazekas, to call on Hungary to ratify MARPOL Annex VI and, as current holders of the EU presidency, to urge the other non-ratifying EU countries to do the same.

Complete story at:
http://www.transportenvironment.org/News/2011/2/Crucial-IMO-vote-on-cutting-shipping-emissions-needs-EU-action-now/

Black carbon a new headache for IMO - Carbon Positive

Posted - Wednesday, 16 February 2011 - Carbon Positive

The International Maritime Organization (IMO) continues to grapple with the emerging shipping emissions problem of black carbon. An IMO sub-committee of the MEPC working on the problem has been unable to agree measures to the reduce the pollutant in a meeting in early February. Some member states have raised procedural objections to the way the matter is being handled, halting further progress.
Black carbon is soot or smoke that consists of small particles of burnt material, in pollution jargon they are one form of what is termed particulate matter (PM). While there has not been great environmental concern over emissions of black carbon from ships falling on the open ocean, scientific research suggests that in polar regions it can have a significant negative impact.
The polar ice caps reflect a very high percentage of solar radiation back out into space, acting as an important planet-cooling mechanism. Scientists say the shrinkage of ice caps is already undermining this process and contributing to global warming. They further warn that emissions of black carbon PM in the Arctic that settle on the ice floes will reduce the reflective capacity of the ice that remains. A particle of surface ice will reflect almost all radiation that strikes it, while black matter will absorb almost all.
Recent years have seen global warming increase the rate of Arctic summer thaw to the point where new shipping lanes are opening up that have not previously been considered commercially viable. Shipping lines are eyeing new and shorter intercontinental routes across the Arctic Ocean north of Russia and through the Canadian Arctic.
The issue of black carbon....

Complete Story at:
http://www.carbonpositive.net/viewarticle.aspx?articleID=2266

Leading academic confirms fluoropolymer foul release hull coating saves an average 9% CO2 - Hellenic Shipping News

Posted February 18, 2011 - Hellenic Shipping News

A report from one of the shipping industryʼs leading research bodies, Professor James Corbettʼs Energy and Environmental Research Associates, has proven that the eco-efficiency benefits of Fluoropolymer Foul Release Technology when applied to tanker,

bulk cargo and other vessel types can reduce GHG (greenhouse gas) and other emissions by an average of 9%. The report, which was today welcomed by the United Kingdomʼs leading environmentalist Jonathon Porritt and Julian Brazier TD MP, chairman of the All Party Maritime and Ports Group underlines the savings achieved using Fluoropolymer non stick technology that has excellent resistant to marine fouling.
Over 400 vessels in the commercial fleet currently use Fluoropolymer Foul Release technology for marine applications, patented by International Paint, making it one of the most widely used eco-efficiency technologies in the shipping market.
The report, on products manufactured by International Paint, the worldʼs largest marine coatings supplier and part of AkzoNobel, analysed the latest fuel consumption data of three vessel types when coated with Fluoropolymer Foul Release technology; Prem Divya, a single engine 21,126 horsepower (HP) tanker, Ikuna, a twin engine 3,400 HP bulker and five identical post panamax container vessels, three of which were coated with TBT free polishing antifoulings and two with Fluoropolymer Foul Release technology.

Complete Story at:
http://www.hellenicshippingnews.com/index.php?option=com_content&view=article&id=8668:leading-academic-confirms-fluoropolymer-foul-release-hull-coating-saves-an-average-9-co2&catid=46:top-story-b&Itemid=151

FTA carbon reduction agenda goes global - Materials Handling World Magazine

Posted - 15 February 2011 - Materials Handling World Magazine

A significant step forward in reducing carbon emissions in the global maritime supply chain was taken today when the Freight Transport Association (FTA) joined forces with Heriot-Watt University (HWU) to begin developing definitive best-practice guidance on reducing cargo emissions in global maritime supply chains.
Chris Welsh, FTA's General Manager Global & European Policy, said:
"Although shipping is regarded as a relatively low-energy and environmentally sound way of transporting goods, it is estimated that maritime carbon emissions are likely to grow by three or four times over current rates by 2050. Clearly, this will have to be curbed, but mandatory regulation is not always the fairest or most efficient way of seeing results.

Complete Story at:
http://www.mhwmagazine.co.uk/LatestNews/FTA_carbon_reduction_agenda_goes_global_-8502.html

EPA and U.S. Coast Guard Step Up Efforts to Protect U.S. Waters / Memorandum of understanding outlines enhanced coordination of enforcement and compliance activities - EPA

Posted - February 11, 2011 - US EPA

Contact Information: Stacy Kika, kika.stacy@epa.gov, 202-564-0906, 202-564-4355

WASHINGTON — The U.S. Environmental Protection Agency (EPA) and U.S. Coast Guard (USCG) today signed a memorandum of understanding (MOU) to work together to protect people’s health and the environment. The MOU outlines steps the agencies will take to better coordinate efforts to prevent and enforce against illegal discharges of pollutants from vessels, such as cruise ships and oil tankers.
"Protecting America’s waters is one of EPA’s top priorities, and our compliance and enforcement work is critical to meeting this challenge,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “By building on our partnership with the Coast Guard, we are working to improve the health of our nation’s treasured rivers, bays, harbors and estuaries.”

Complete Release at:
http://yosemite.epa.gov/opa/admpress.nsf/0/a6a997621f1c1281852578340059f6ff?OpenDocument

2011: Emissions challenges squeeze shipping - Carbon Positive

Posted February 9 2011 - Carbon Positive

It's looking like a big year for sulphur and greenhouse-gas (GHG) control in shipping, with regulatory, technological and fuel-supply issues providing the industry with plenty to think about. Against the backdrop of recessed global trade conditions which sees the Baltic Dry Index back to 2008’s GFC lows early in 2011, the environmental screws are tightening on ship-owners and charterers.
As global regulation of shipping emissions inches forward under the International Maritime Organization (IMO) MARPOL Annex VI convention on air pollution, European regulators are taking the initiative – designing regional responses that will impact heavily on international shipping. 2010 saw a ‘reality check’ in the industry over the looming impact of the Northern Europe emission control areas (ECAs). With Brussels so far standing firm on the implementation of its next-stage sulphur oxides (SOx) fuel content reductions in 2015, the industry now enters 2011 with just four years to take steps to comply with a 0.1 per cent limit in the North and Baltic seas. The same limit and timetable applies along the vast North American coastlines too while new ECAs appear likely for Hong Kong, Singapore and the Persian Gulf in coming years. Globally, the limit is set to reduce to 3.5 per cent in 2012 and to 0.5 per cent by 2020 or 2025.
Forward planning for tough SOx rules must begin yet there is no easy option for meeting such stringent requirements. For those affected, it will mean fuel switching to clean fuels, such as LNG or marine gas oil, or the installation of exhaust-scrubbing technology, both of which will require in most cases ship or engine modifications, or outright replacement. Even assuming all those options become widely available, the choices are going to be different from ship to ship and fleet to fleet as a complex assessment based on ship size, class, route and port-visit factors will have to be carried out. Complicating matters, there are serious doubts that complying low-sulphur fuels will be available in enough quantities to meet demand. Already there is the prospect of rising price premiums on cleaner distillate fuels as refiners drag their heels on upgrades needed to expand supply.

Complete Story at:
http://www.carbonpositive.net/viewarticle.aspx?articleID=2255

EU offers IMO helping hand on GHG emissions - Carbon Positive

Posted February 9 2011 - Carbon Positive

The European Union has held out a conciliatory hand to the International Maritime Organisation (IMO) over the regulation of maritime greenhouse emissions. A high level meeting of MEPs, experts and government officials hosted by the European Commissioners for transport and environment last week resolved that the EU should do all it can to help the IMO deliver a global regulation capping greenhouse-gas emissions in shipping this year. But the meeting stood firm on an EU commitment to act alone if the IMO cannot.
After the February 3 meeting, European Commission vice-president Siim Kallas, responsible for transport, and climate commissioner Connie Hedegaard said in a joint statement: "We are convinced that the shipping sector must deliver on the fight against climate change. We discussed how Europe can best progress in order for the maritime sector to contribute to cutting greenhouse gas emissions if there is no international agreement. But there should be no doubt: Europe must make every effort to help the IMO agree this year on global measures to curb greenhouse gas emissions from ships – now and in the long term."
The meeting conceded that “that in a global sector such as maritime transport, measures which are the most environmentally effective and make economic sense can best be achieved at global level, through the IMO.”

Complete Story at:
http://www.carbonpositive.net/viewarticle.aspx?articleID=2259

California air resources board (CARB) public workshop and proposed changes to the California oceangoing vessel fuel regulation - BIMCO

Posted - CSA round-up for January 2011 - BIMCO


CARB has recently announced its intent to host a public workshop on 17 February 2011 to discuss proposed changes to the CA Oceangoing Vessel (OGV) Fuel Regulation. The relevant sections of the meeting notice explain that the proposed changes are based on the need to further extend the low sulfur fuel requirements to “capture” vessels that previously transited through the Santa Barbara Channel (pre implementation of the CARB regulations) but now transit to the South side of the Channel Islands through an area that is outside the area covered by the OGV low sulfur fuel regulations. CARB further expresses their concern that with the movement of these vessels south of the Channel Islands, the potential for interference with military operations in the Pt. Mugu Sea Range is also increased. It is noted that the sudden concern by CARB about military operations in the area dovetails nicely with their intent to further expand the low sulfur fuel areas under the CARB regulations.

CSA has been in contact with our colleagues from the Pacific Merchant Shipping Association and they will be monitoring these developments, including attendance at this public workshop. It has been noted that it will be interesting to see how CARB intends to address the public health impacts of the proposed changes, since CARB looked at this issue prior to issuance of the final regulation and concluded that the public health impacts of vessels rerouting were “minimal”. It is also worth noting that the pendency of the litigation in the 9th Circuit Court of Appeals may make these new proposals moot if the court decides in favor of the industry. However, if the court decides otherwise, it is expected that the extension of the low sulfur fuel requirements to include the alternate route further offshore would go into effect before the end of 2011.

Source -
https://www.bimco.org/en/Members/News/2011/2011/02/07_CSA_round-up.aspx

IMO BLG 15 pre-brief - Hellenicshippingnews.com

Posted --Monday, 07 February 2011 00:00 - Hellenicshippingnews.com

The governing body of the IMO Sub-Committee on Bulk Liquid and Gasses (BLG) is the Marine Environment Protection Committee (MEPC).

BLG primarily deals with carriage requirements and properties of bulk chemicals and gasses as well as matters related to the NOx Technical Code under MARPOL Annex VI. The BLG further currently host two working groups respectively dealing with Air Emissions and Ballast Water Management related issues.
BIMCO will attend BLG 15 from 7-11 February 2011, where the following important items are on the agenda:
• Development of guidelines and other documents for uniform implementation of the 2004 BWM Convention;
• Development of international measures for minimising the transfer of invasive aquatic species through bio-fouling of ships;
• Review of relevant non-mandatory instruments as a consequence of the amended MARPOL Annex VI and the NOx Technical Code;
• Application of the requirements for the carriage of bio-fuels and bio-fuel blends.
BIMCO is co-sponsoring one submission, primarily commenting on a submission from Norway/INTERTANKO that attempts to suggest means for ensuring that the fuel delivered to ships is of a constant quality. The danger with such proposed initiatives is that it could result in more monitoring of ships, as there is no means of implementing legislation applicable to ports or bunker suppliers. BIMCO, even though agreeing that the present fuel testing and controlling procedures are not ideal, does not support the proposal for pre-testing and purifying fuel before delivery to ships, as these measures will add substantial cost to the bunker supply chain without any real guarantee for improvement in the quality and MARPOL Annex VI compliance of the fuel bunkered.
The BLG 15 meeting arrangement includes 3 Working Groups (WG) and 2 Drafting Groups (DG) as follows:
• WG1 - Evaluation of safety and pollution hazards of chemicals and preparation of consequential amendments and application of the requirements for the carriage of bio-fuels and bio-fuel blends;
• WG2 - Development of guidelines and other documents for uniform implementation of the 2004 BWM Convention and international measures for minimizing the transfer of invasive aquatic species through bio-fouling of ships;
• WG3 - Code of safety for ships using gas or other low-flash point fuels with properties similar to liquefied natural gas;
• DG1 - Review of relevant non-mandatory instruments as a consequence of the amended MARPOL Annex VI and the NOx Technical Code;
• DG2 - Revision of the IGC Code.
Members will be kept updated on the progress and outcome of BLG 15 via the BIMCO News.

Source at:
http://www.hellenicshippingnews.com/index.php?option=com_content&view=article&id=6718:imo-blg-15-pre-brief&catid=46:top-story-b&Itemid=151

IMO: FLAG STATE IMPLEMENTATION SUB-COMMITTEE - REPORT OF THE 16TH SESSION, LONDON, 2 - 6 JUNE 2008. 1. - Passed to the Telegraph by WikiLeaks 9:00PM GMT 04 Feb 2011

Passed to the Telegraph by WikiLeaks 9:00PM GMT 04 Feb 2011

Ref ID: 08LONDON2035
Date: 8/5/2008 11:52
Origin: Embassy London
Classification: UNCLASSIFIED

1.SUMMARY: The International Maritime Organization (IMO) 16th Session of the Flag State Implementation Sub- Committee (FSI 16) met at IMO Headquarters, London, UK. Mrs. Tatjana Krilic of Croatia chaired the meeting. The meeting was attended by eighty members, three associate members, one state not a member of the IMO, one United Nations specialized agency, eight intergovernmental organizations and seventeen nongovernmental organizations. FSI 16 agreed to:
The draft amendments to the Survey Guidelines under the Harmonized System of Survey and Certification (HSSC) resolution A.997(25) and the identification of amendments to mandatory instruments that would affect the HSSC and the status of their adoption or entry into force.
The text of the draft Maritime Safety Committee (MSC) circular on the meaning of "First Survey" to supersede MSC/Circ.1141 to be submitted to MSC 85 (November 26 - December 5, 2008) for approval
The text of the draft MSC circular on unified interpretation of the application of regulations governed by the building contract date, the keel laying date and the delivery date for the requirements of the Safety of Life at Sea (SOLAS) and the Maritime Pollution Prevention (MARPOL) Conventions to be submitted to Marine Environmental Protection Committee MEPC 58 (October 6-10, 2008) and MSC 85 for approval.
The draft MSC/MEPC circular on blanking (sealing) of bilge discharge piping system in port.
FSC 16 prepared a draft amendment to MSC-MEPC.3/Circ.1 based on the revision of the IMO Damage Card. END SUMMARY

Complete Text at:
http://www.telegraph.co.uk/news/wikileaks-files/london-wikileaks/8304705/IMO-FLAG-STATE-IMPLEMENTATION-SUB-COMMITTEE-REPORT-OF-THE-16TH-SESSION-LONDON-2-6-JUNE-2008.-1..html

IMO: LONDON CONVENTION REPORT ON MARINE ENVIRONMENT ISSUES 1. - Passed to the Telegraph by WikiLeaks 9:02PM GMT 04 Feb 2011

Passed to the Telegraph by WikiLeaks 9:02PM GMT 04 Feb 2011

Ref ID: 08LONDON3181
Date: 12/19/2008 16:22
Origin: Embassy London
Classification: UNCLASSIFIED

1.SUMMARY: The International Maritime Organization's (IMO) annual meetings for both the 1972 London Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (the "London Convention") and the 1996 Protocol to the London Convention (the "London Protocol") made progress on several marine environment issues. They achieved a strong (but non-binding) resolution on the controversial issue of ocean fertilization for climate change that will allow scientific research while restricting commercial ventures. The meetings made progress on new guidelines for placement of artificial reefs, a reporting format for sub-seabed carbon sequestration projects, and establishing a technical cooperation trust fund. The meetings also adopted guidance on managing spoilt cargo and removal of anti-fouling coatings, and agreed to forward these to the IMO's Marine Environment Protection Committee (MEPC) for consideration and adoption. Other parties were pleased to hear that the London Protocol is currently before the U.S. Senate, awaiting the Senate's advice and consent to ratification. END SUMMARY

Complete Text at:
http://www.telegraph.co.uk/news/wikileaks-files/london-wikileaks/8304827/IMO-LONDON-CONVENTION-REPORT-ON-MARINE-ENVIRONMENT-ISSUES-1..html

Commission poised to push for success at International Maritime Organization CO2 talks - EUROPA Press Release

Posted - Brussels, 3 February 2011

After meeting with a group of high-level experts, European Commission Vice-President Siim Kallas, responsible for transport, and Commissioner Connie Hedegaard, responsible for climate action, said: "We are convinced that the shipping sector must deliver on the fight against climate change. We discussed how Europe can best progress in order for the maritime sector to contribute to cutting greenhouse gas emissions if there is no international agreement. But there should be no doubt: Europe must make every effort to help the IMO agree this year on global measures to curb greenhouse gas emissions from ships – now and in the long term."
International maritime transport accounts for close to 3% of global CO2 emissions. Emissions from ships are expected to more than double by 2050. A UN specialized agency, the International Maritime Organization (IMO), started looking at climate issues in the mid-1990s. However, a comprehensive agreement on reduction measures has until now proven impossible to reach.
The two Commissioners today met a group of MEPs, government representatives and high-level advisors from different backgrounds to take stock of the situation and discuss the EU's strategic options in both the IMO and the parallel United Nations Framework Convention on Climate Change (UNFCCC) negotiations. The meeting has shown that in a global sector such as maritime transport, measures which are the most environmentally effective and make economic sense can best be achieved at global level, through the IMO. The EU will continue its efforts to help achieve an international solution in the UN.
The group is expected to meet twice again in 2011 in order to assess and accompany critical global maritime emissions negotiations during this year.

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/11/126&format=HTML&aged=0&language=EN&guiLanguage=en

2011: Emissions challenges squeeze shipping = Carbon Positive

Posted - Wednesday, 2 February 2011 - CarbonPositive

It's looking like a big year for sulphur and greenhouse-gas (GHG) control in shipping, with regulatory, technological and fuel-supply issues providing the industry with plenty to think about. Against the backdrop of recessed global trade conditions which sees the Baltic Dry Index back to 2008’s GFC lows early in 2011, the environmental screws are tightening on ship-owners and charterers.
As global regulation of shipping emissions inches forward under the International Maritime Organization (IMO) MARPOL Annex VI convention on air pollution, European regulators are taking the initiative – designing regional responses that will impact heavily on international shipping. 2010 saw a ‘reality check’ in the industry over the looming impact of the Northern Europe emission control areas (ECAs). With Brussels so far standing firm on the implementation of its next-stage sulphur oxides (SOx) fuel content reductions in 2015, the industry now enters 2011 with just four years to take steps to comply with a 0.1 per cent limit in the North and Baltic seas. The same limit and timetable applies along the vast North American coastlines too while new ECAs appear likely for Hong Kong, Singapore and the Persian Gulf in coming years. Globally, the limit is set to reduce to 3.5 per cent in 2012 and to 0.5 per cent by 2020 or 2025.
Forward planning for tough SOx rules must begin yet there is no easy option for meeting such stringent requirements. For those affected, it will mean fuel switching to clean fuels, such as LNG or marine gas oil, or the installation of exhaust-scrubbing technology, both of which will require in most cases ship or engine modifications, or outright replacement. Even assuming all those options become widely available, the choices are going to be different from ship to ship and fleet to fleet as a complex assessment based on ship size, class, route and port-visit factors will have to be carried out. Complicating matters, there are serious doubts that complying low-sulphur fuels will be available in enough quantities to meet demand. Already there is the prospect of rising price premiums on cleaner distillate fuels as refiners drag their heels on upgrades needed to expand supply.

Complete story at:
http://www.carbonpositive.net/viewarticle.aspx?articleID=2255

Ship fuel – time for ship owners and refiners to decide - Hellenic Shipping News International

Posted February 1, 2011 - Hellenic Shipping News International

The revised MARPOL Annex VI regime governing ship atmospheric pollution has been with us for two years now. Over that time the maritime and oil refining industries have had a chance to weigh up its robust requirements. Although compliance with the regime’s ultimate regulation will not be required for the best part of a decade,possibly longer, several of the provisions have already started to bite. Some pre-emptive regional requirements which also impose controls on ship emissions – such as those in California and the European Union – have added immediacy to the debate.
All the possible solutions for Annex VI compliance involve considerable cost and technology challenges and, in the context of meeting these challenges, a decade is not a very long time. Whether refinery upgrades, complex shipboard emission abatement technologies, a new network of LNG bunkering facilities or a combination of these is chosen, long lead times will be required.
When the original MARPOL Annex VI entered into force in 2005, the regime’s global sulphur cap of 4.5% was acknowledged to be decidedly undemanding. Effectively a compromise to facilitate adoption of the instrument by the required number of maritime nations, the upper limit was easily complied with because all but the highest sulphur content heavy fuel oils were within the 4.5% threshold.

Complete Story at:
http://www.hellenicshippingnews.com/index.php?option=com_content&view=article&id=5767:feature-ship-fuel--time-for-ship-owners-and-refiners-to-decide&catid=46:top-story-b&Itemid=151