INTERNATIONAL MARITIME ORGANIZATION INTERSESSIONAL MEETING OF THE BLG WORKING GROUP ON AIR POLLUTION 1st session Agenda item 2 BLG-WGAP 1/2/XX 17 October 2006 Original: ENGLISH REVISION OF MARPOL ANNEX VI, THE NOx TECHNICAL CODE AND RELEVANT GUIDELINES Submitted by INTERTANKO SUMMARY Executive Summary This paper presents issues that merit further discussion by the Working Group when considering the revision of MARPOL Annex VI. Action to be taken: Paragraph 29 Related documents: MARPOL Annex VI; NOx Technical Code; BLG 10/ 14/2; BLG -WGAP 1& 2 Introduction 1. INTERTANKO recognises that the requirements of Annex VI to control differing sources of air pollution from ships could be improved upon due to technical developments in engines and diverse ancillary equipment. INTERTANKO also believes that the structure and approach in some of the current MARPOL Annex VI provisions could be revised for easier compliance, enforcement and monitoring. 2. Noting that the Organisation has initiated a major revision one year after MARPOL Annex VI entered into force and based on the experience gained so far with the current rule application, INTERTANKO is of the view that any revisions to Annex VI should be based upon the following: ensuring a solid platform of requirements, are realistic and feasible, produce a long term and positive reduction of air emissions from ships, and contribute to a long term and a predictable regulatory regime. 1 3. Based on these principles, INTERTANKO believes that the following issues merit a detailed discussion by the working group: a) The use of distillate fuels, with a global Sulphur content cap introduced using a two tiered programme, as follows: (i) from [2010], a maximum of 1.00% Sulphur content and (ii) for ships’ engines installed on and after [2015], a maximum [0.50]% Sulphur content b) A Global Sulphur Emission Control Area (SECA) c) If the above two issues were considered feasible, then the provisions for checking and monitoring compliance with Regulation 14 and 18 should be revised accordingly. DISCUSSION OF ISSUES 4. Reduction of Emissions resulting from fuel quality control – Regulation 18 - The quality of the fuel used by ships has varying impacts upon the extent of emissions. The emissions from the fuel combustion process can be significantly reduced by the combustion of cleaner fuels such as the distillate fuels as found in Table 1 of ISO 8217. Ships using a distillate fuel would achieve reductions of NOx, SOx and the new parameter/criterion, Particulate Matter (PM). 5. Reasons: The reasons the above issue should be discussed further are summarized as follows: simple and straightforward solution for most of the problems linked to air emissions from ships; this would align shipping with other forms of transport based upon engine power large reduction of SOx, and PM emissions and significant further reduction of NOx and CO2 emissions with no other investment than a higher price for the fuel distillate fuels do not contain significant quantities of absorbed nitrogen and thus any extensive use of these would ensure an immediate and natural reduction of NOx emissions in the region of 10 to 15% on existing levels under all power/load conditions. eliminates the need for bunker treatment plants currently onboard ships thereby avoiding aspects of Regulation 18.1.a.iii.1, e.g. Catalytic Fines reduces the amount of generated fuel waste that needs to be stored, handled and treated onboard; for ships using only a distillate fuel, a significant advantage would be a reduction in the number of tanks and piping arrangements that would otherwise be required for diverse fuel types and qualities requiring segregation. eliminates complex operations related to multi-fuel ships with the associated safety implications, for example as would possibly arise during a change between three grades on a voyage. enhances safety by avoiding potential problems related to human errors, particularly during fuel quality changeovers. residuals fuels with low sulphur content, as the alternative to distillate fuels, require further substantial onboard equipment to reduce PM emissions 2 the use of distillate fuel only would mean that ships would use globally a single and well defined type of fuel; and supporting legislation would simplify the monitoring and regulatory control mechanisms for fuel quality compliance Use of distillate fuel as bunkers would result in an associated reduction of CO2 emissions from ships. the use of distillate fuel would align fuel quality criteria for shipping with those for virtually all other forms of transport, and. there would be no competitive advantage if all ships were to use the same type of fuel 6. If there were a desire to require only distillate fuels, Regulation 18 could be revised as follows: Revised Regulation 18.1 to read: Fuel oil for combustion purposes delivered to and used onboard ships to which this Annex applies shall be distillate fuels of a quality as defined in Appendix VI herewith and shall meet the following requirements. . . . . . 7. Oxides of Sulphur Emissions – Regulation 14 - When reviewing this Regulation in general, some significant aspects must be taken into consideration concurrently. These are: a) The emissions of Oxides of Sulphur (SOx) are a significant proportion of the total of Particulate Matter (PM) generated by the combustion of fuels from ships. Any attempt to limit the extent of PM emissions from ships would mean the installation of an exhaust treatment plant or a requirement for betterment in the quality of fuel used by ships that would include a reduction in the sulphur content of that fuel. b) Any reduction in the regulated Sulphur content of the fuel used by ships would impact all ships of differing ages and, thus, reference should be made to the sophistication of technologies installed onboard capable of combusting such fuel without the necessity to introduce significant modifications to the respective engines. Under the current provisions of MARPOL Annex VI any existing engine subjected to “substantial modifications” would need to meet the standards in the current Regulations. c) In addition to the foregoing and with regard to the ability of refiners to reduce the sulphur content of residual oils during the refining process, a complicated procedure is utilised that would incur significantly increased requirements of energy to enable the process to reach the desired results. This in turn would create increased amounts of CO2 that the international community and IMO (on behalf of shipping) are attempting to reduce. 8. It is also necessary to consider the concept of Sulphur Emission Control Areas (SECAs) and their relevance in the Regulation. The specific observations relating to these areas are: a) The current two SECAs identified within the Regulation are those of the Baltic Sea and the combined English Channel/North Sea areas. These areas have defined geographic limits specified by the Regulation. From an environmental point of view, 3 the concept of a SECA gives an emission control benefit for a small geographical area notwithstanding that air pollution does not respect such “artificial boundaries” and emissions outside of such artificial boundaries can still impact the sea area within the boundary limits thereby reducing the net environmental effect sought by the Regulation. b) Each time a vessel has to enter this artificially defined area, a changeover routine has to be completed before entry conditions in to the SECA are met. Such changeover routines are undertaken approaching the boundary limits of the SECA which, at present, are either close to inshore waters and/or have high shipping activity. c) Although only two specified SECAs currently exist, it is known that work is currently being undertaken to justify applications to IMO for additional SECAs elsewhere. Such Sulphur demarcation zones will increase the demand for low sulphur fuel and add to the safety implications associated with the fuel changeover procedures for entry into these areas. d) The risks involved with the creation of incompatibility between two fuels qualities as a result of blending during the changeover process inducing loss of engine power by blockage of filters are considered possible thereby raising the very real issue of vessel safety. e) Many existing and recently delivered ships are not equipped to handle multi-fuel requirements and any proliferation of SECAs, especially if there is not a consistency in standards, will compound the problems currently being encountered. 9. Based on the above, there would appear to be merit in expanding SECAs to a world wide concept. If this was a desired outcome, Regulation 14 could be revised as follows: (1) Revised Regulation 14.1 to read: The sulphur content of any fuel used on board ships shall not exceed 1.00 % m/m. Should this requirement directly necessitate either a major conversion or substantial modification to a vessel’s engine as referred to in Regulation 13.2 then vessels with engines built before[1 January 2000]/[2010] need not comply with the requirements of Regulation 13.2. (2) Add a new paragraph 14.1 bis to read: The sulphur content of any fuel used onboard ships whose engines are built after [2015] shall not exceed 0.50% m/m. (3) Remove Regulations 14.3, 14.4 14.5, 14.6, and 14.7 10 Reasons: The reasons the above issue should be discussed further are summarized as follows: By stipulating a global Sulphur cap of 1.00% m/m in the first tier (tier II) reductions and a possible requirement for new engines to use [0.50]% Sulphur fuels in [2015] 4 (tier III) should already cover the current provisions covered in regulations by SECA concept. Consequently, the necessity for fuel changeover for entry into a SECA is removed together with any resulting safety implication and with a clearly explained environmental benefit of further SOx emissions reduction. This also has an immediate advantage in a much simpler compliance monitoring system. By stipulating the type of fuel to be used, e.g. distillate fuels, this could achieve a better and cleaner combustion potentially satisfying the expected requirement for the reduction in Particulate Matter in the exhaust gases. With the sole use of distillate fuel, the necessity for additional tanks, piping systems, fuel treatment systems is removed. However any engine modification allowing an existing vessel engine to comply with the proposed requirement should be recognised and relief or dispensation should be given for compliance with the requirements in Regulation 13.2 (the NOx Regulations) given the NOx reduction achieved by the fuel change. 11. Oxides of Nitrogen Emissions – Regulation 13 - NOx is not only an air pollutant of itself but also a precursor to the generation of tropospheric ozone – a greenhouse gas as recognised by the UNFCCC. Unlike other air emissions from ships, the production of this gas is not primarily related to fuel quality but that relating to the functioning of the engine and its combustion regime. 12. Initial discussions on the issue of Regulatory amendment for this gas have intimated an expectation for a two tier reduction from the existing regulatory levels: an additional 40% from 2010 and a further tier III reduction by 2014 or 2015. From the best advice available provided by engine manufacturers and with the current proven technology available, the 40% further reduction by 2010 may require additional external (to the engine) equipment/technology to achieve this target. 13. It is important to note that the targeted reduction of NOx emissions is more important in coastal zones and harbours. The onboard abatement technology, currently available, is generally most efficient at full load of the ship’s engine but its efficiency drops significantly when the engine load decreases as the ship slows down. Therefore, it is questionable whether onboard abatement technology and/or modified turbo-charger would give any net positive environmental effect, as desired of the Regulation, when the engine is on reduced load during manoeuvring. 14. The use of distillate fuels in any engine, including existing engines, would, however, have an immediate benefit in reducing NOx of approximately 10% to 15% under all load conditions. 15. Reasons: The reasons the above issue should be discussed further are summarized as follows: The NOx Technical Code (paragraph 6.3.11) gives guidance as to the potential for NOx reduction of between 10 and 15%, at least, by use of a cleaner distillate fuel that would contain very much smaller quantities of nitrogen in its molecular structure. Thus, a change in the fuel quality criteria is an immediate solution for a reduction of NOx emissions from all ship’s engines under all engine running conditions. 5 The proposed tier or timed system for the reduction of NOx has merit, but it should be decided only after a professional assessment as to whether the time given for the development and required testing of equipment to meet the Regulatory objectives is adequate. Volatile Organic Compounds (VOC) – Regulation 15 - VOC gas is generated during loading and during the transportation of volatile hydrocarbon cargoes such as crude oil and gasoline on board tankers. The current Regulation 15 only applies when a port or a terminal requires the control of release of this type of gas to the environment and only then is the tanker required to have the ability to transfer the evolved gas from the cargo (vapour return pipeline) back to a shore reception facility for the control of such emissions. The issue of VOC control, as far as air pollution is concerned, may be co-related to NOx emissions in so far as it is a precursor for the generation of stable tropospheric ozone – a recognised Green House Gas. 16. 17. A submission by Norway (ref. DOCUMENT – BLG 10/14/2) proposes that this Regulation is modified such that it requires all tankers to have a VOC Management Plan when loading and transporting volatile hydrocarbon cargoes. This “plan” should be simple to operate and be an operational procedure that is compiled to suit an individual tanker’s ability to undertake the procedure. The ISM manual contains guidance for many operational procedures for tankers but there are other mandatory manuals on board a tanker such as the Crude Oil Washing Manual that supplies guidance in order to perform this mandated task for cargo tank cleaning. An example of such a procedure included in the Norwegian proposal is that of the INTERTANKO VOCON procedure. 18. INTERTANKO comments on VOC emissions: 1. The Norwegian proposal is supported in principle but INTERTANKO suggests that the title to this plan be changed from “VOC Management Plan” to “VOC Operational Control Procedure” that can be compiled and adopted to suit the individual procedures and resources available for each tanker. 2. The selected procedure can either be included in the vessel’s ISM Manual or produced as a separate manual – such as the Crude Oil Washing Manual – but in the latter event guidelines will have to be generated by the Organisation as to its content and form. 3. A minimum vapour pressure will have to be selected by the Organisation as to when such a procedure should be activated for a specific cargo and the proposal for such a value would be a Reid Vapour Pressure of more than 6.0 psia or 41 kPa. 4. A maximum vapour pressure should be selected for all cargoes to be carried by a tanker in order to control the extent of VOC emissions. A proposal for this value would be a Reid Vapour Pressure of [10 psia or 70 kPa]. 19. Reasons: The reasons the above issue should be discussed further are summarized as follows: . The control of VOC emission is primarily an operation procedure undertaken onboard either during loading or its subsequent transportation. Certain procedures adopted utilise equipment and technology as installed onboard a tanker (e.g. the KVOC system and procedure) whereas others rely upon the control of vapour pressures within the cargo tank vapour system. Thus it is deemed more suitable to apply the term “Operational Procedure” rather than a “Management Plan” given the individual 6 resources available to individual tankers and dependent upon the physical nature of the oil which is to be supplied to the tanker by reference to the required Material Safety Data Sheet (MSDS). There are very many differing grades and qualities of crude oil with a wide variety of concentrations of volatile components in the crude oil. Some crude oils have a high Pour Point temperature characteristic necessitating cargo heating and a high temperature environment causing a lot of the volatile components to have “boiled off” prior to loading. Other types of oil have very limited gaseous content upon loading whilst others are stabilised to varying degrees prior to loading. Thus, with regard to the minimum vapour pressure requirement for the activation of a VOC Operational Control Procedure, empirical research and data has shown that, for values less than the pressure proposed by INTERTANKO, the extent of VOC emission is reduced with the likelihood of releases during transportation to be minimal. Onboard measurements and other relevant data have shown that, over the recent decades, the volatility of crude oil has, in general, increased. Tankers, however, are designed to load and transport cargoes of relatively low volatility with the more volatile hydrocarbon types being designated for transportation on Gas carriers. In order to avoid the consequences of loading and transporting cargoes of high volatility, a maximum volatility criterion should be set for the volatility of acceptable cargoes for loading and transportation on traditional tankers. The value proposed by INTERTANKO is based on direct observations and measurements and would indicate the demarcation/maximum Reid Vapour pressure of cargoes to be offered for transportation at sea. That would imply pre-treatment of cargo prior to loading but in return will assist in avoiding excessive VOC emissions and improve the safe transportation of the cargo. 20. Particulate Matter (PM) - As a result of submissions regarding the revision of the Regulations in the current version of Annex VI proposals have been put forward to control the emissions of Particulate Matter in the exhaust gas stream from the engines onboard a ship. Particulate matter in engine exhausts consists of a mixture of particles of differing types and sizes. Primarily these particles are mainly of micron size with a criteria selection for any Regulation of either 2.5 micron or 10 micron. 21. The particles consist of: Sulphates – oxidised Sulphur Dioxide from the combustion process of fuels containing sulphur Nitrates – oxidised Oxides of Nitrogen from the combustion process Uncombusted hydrocarbons - stemming from the quality of fuel oil and the efficiency of the combustion process Soot – carbonised hydrocarbon from the combustion of certain components in residual fuels Heavy Metals – such as, but not limited to, Aluminium, Silica, Vanadium, Nickel and Iron – all these elements are to be found in residual fuel oils in differing concentrations and quantity 22. Given that these particles are all in the form of (near) solids then additional onboard technology would be needed to remove these particles from the exhaust gas stream. At 7 present, the requirements and definitions for any proposed Regulation are not yet agreed, nor the limiting control. With this in mind, the technology required for the removal of any defined particulate matter that would meet the demands of any Regulation have yet to be developed. If such a Regulation is constructed for particulate matter then it is possible that it would come into force on the proposed date for the totality of the revision in 2010. A simple and immediate solution to a significant reduction of PM would be the use of distillate fuels only. 23. Reasons: The reasons the above issue should be further discussed are summarized as follows: By changing the fuel type to a distillate then the production of PM will be significantly reduced. Distillate fuels such as Marine Diesel Oil are capable of being produced with lower sulphur content; with better combustion properties thereby reducing both the extent of uncombusted hydrocarbons and soot; extremely low heavy metal content; and considerably lower nitrogen content. The use of a fuel compliant with a specification could be included in MARPOL Annex VI (such as shown in the proposed Appendix VI attached to this paper and which is similar to the ISO 8217 DMB Specification) which could result in a 98% reduction in carbon residues and a 93% reduction in ash content as a result of the fuel’s combustion Changing the fuel quality to a marine distillate and creating less Particulate Matter may lessen the need for regulatory controls and requirements for this type of emission, thereby avoiding the necessity for fitting of emission control technology and the storage onboard of diverse Particulate Matter as itemised above for subsequent disposal ashore. 24. Fuel Specification for proposed Appendix VI to Annex VI – INTERTANKO believes that in order to strictly regulate emissions from ships, MARPOL Annex VI should include a Fuel Specification. INTERTANKO has made reference to and introduced the concept of a Fuel Standard in paragraph 6 above, regarding a possible Amendment to Regulation 18.1. The Fuel Specification should be added to MARPOL Annex VI as Appendix VI. As referred to in paragraph 6 above regarding a possible amendment to Regulation 18.1, a Fuel Standard is given on the last page of this document. 26. Reasons: The reasons for further discussion of the above issue are summarized as follows: Given that the fuel specification is probably the most important element for emissions control, it seems advisable the Organisation develops its own Marine Fuel Standard even though this might be close to the standard given in ISO 8217. The fuel standard proposed is adopted from the current ISO 8217 standard for distillate grade fuels and can thereafter be updated by the Organisation as the regulatory body when deemed necessary. Monitoring and checking compliance 27. INTERTANKO has no specific comments to amend the current provisions for monitoring and checking compliance of the provisions in Regulations 14 and 18 at this time for two basic reasons: (1) such amendments would be under the purview of the MEPC or 8 BLG and (2) the formulation of possible changes need to be addressed after the intersessional working group have had a chance to discuss our proposals for amendments presented on this paper. Pending future developments, INTERTANKO will submit specific proposals on this matter to the next sessions of either MEPC or BLG as appropriate.. Conclusions 28.. INTERTANKO outlines a number of issues that merit further discussion that would assist the working group to find an efficient and simple approach for revision of MARPOL Annex VI and a significant reduction of exhaust emissions. The issues put forward are reviewed mainly from an environmental perspective and do not take into account additional features where positive operational advancement or gains can be achieved. From an operational perspective, the proposals provide simplicity in operations and allow for further investigations for optimising fuel consumption by energy maximisation and an associated reduction in air emissions. Action requested of the Working Group on Air Pollution 29. The Intersessional Working Group is invited to further discuss the issues raised in this paper in its consideration of the revision of MARPOL Annex VI and the NOx Technical Code and take action as appropriate. 9 Appendix VI (similar to ISO 8217: DMB) Quality Specification for Marine Fuel Oil For the purposes of application to Regulation 18.1 the following specification will apply to all Marine Fuel Oil supplied to ships Characteristic Unit Limit Specification kg/m3 mm2/s o C o C % m/m % m/m % m/m max max min max max min max max Total Sediment, existent % m/m Water % v/v max max 900.0 11.0 60 0 1.00 40 0.30 0.01 Clear and Bright 0.10 0.3 Density at 15 o C Viscosity at 40 o C Flash Point Pour Point (upper) Sulphur Cetane Index Carbon Residue Ash Appearance Test Method Reference ISO 12185 ISO 3104 ISO 2719 ISO 3016 ISO 8754 ISO 4264 ISO 10370 ISO 6245 Visual inspection ISO 10307-1 ISO 3733 The values recorded for each individual parameter are considered a maximum or minimum, as appropriate, and thus any value found outside of the stipulated limits by testing in accordance with the reference test method procedure i is deemed not to comply with the requirements of Regulation 18. The fuel will not contain any detectable concentrations of metals, by use of the reference test method IP 501, that could damage the engine or adversely impact the exhaust from the engine under combustion of the fuel. Upon visual inspection, if the sample of the fuel, taken in compliance with the guidelines for the sampling procedure, is found to be “clear and bright” then it will be deemed to also satisfy the specification limit parameters for water concentration and total sediment existent. i Reference to the reference test method procedure specifically excludes reference to the relevant procedures repeatability and reproducibility limits 10