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