Infrastructure and prospects of LNG bunkering in the European Union

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1 Infrastructure and prospects of LNG bunkering in the European Union Panayiotis Mitrou Marine Technology & Innovation Manager Business Development Hellenic Lloyd s S.A. GREENER SHIPPING SUMMIT 10 November 2015, Athens Ledra Hotel Working together for a safer world

2 A taste of history The success of the sea trials was very marked, and there is every reason to expect that the engines will give equal satisfaction in regular running, and if this anticipation is realised there is no doubt that many oil engined vessels will be built for trading in parts where fuel oil can be regularly obtained. February 1912, extract from the survey report of Lloyd s Register s Chief Engineer Surveyor J T Milton onboard the Selandia, the first merchant ship to be fitted with diesel engines.

3 European Union Legislative Activity Sulphur in % EU GLOBAL the MED gap Ø Sulphur Directive Ø MRV and MBMs Ø NOx?

4 2012 /33/EU Directive / Articles 22, 23, 24 extracts The costs of the new requirements to reduce sulphur dioxide emissions could result in modal shift from sea to land-based transport and could have negative effects on the competitiveness of the industries. The Commission should make full use of instruments such as Marco Polo and the trans-european transport network to provide targeted assistance so as to minimise the risk of modal shift. Member States may provide State aid in favour of operators affected by this Directive, including aid for retrofitting operations of existing vessels Access to emission abatement methods should be facilitated. Those methods can provide emission reductions at least equivalent to, or even greater than, those achievable using low sulphur fuel,

5 The European Union case

6 The European Union case v v v v EU owned fleet 48% of Global fleet More than 40% of global marine equipment manufacturers Transportation 94% Dependant on oil Bill = 1 billion Euro/day Sulphur Directives Alternative Fuels Directive Energy security Reduction of GHG emissions Competitiveness of Transportation sector Interconnection with remote areas in Europe Macro regional Strategies (Adriatic-Ionian)

7 EU Financing Prospects Connecting Europe Facility CEF / TEN-T European Regional Development Fund ERDF (INTERREG) European Maritime and Fisheries Fund EMFF Risk Sharing Instruments European Investment Bank Horizon 2020 SME Instrument National Schemes (e.g. 50% grants for LNG retrofits)

8 LNG lacks infrastructure?!

9 LNG Infrastructure Ports Alternative Fuels Directive 2014/94/EU LNG available in EU Core ports by 2025 LNG currently available as a bunker fuel Ø Ø Ø Ø Ø Ø Antwerp Amsterdam Rotterdam Zeebrugge Stockholm Several Norwegian Ports Under Development: Several North Europe Ports Under Study Several West and Med Europe Ports

10 LNG Small Scale Global Fleet - Lack of Ships

11 LNG Fuelled and Small Scale Ships

12 European Expertise

13 Initiatives showing the way Zero Vision Tool A collaboration method and project platform for a safer, more environmentally and energy efficient transport by sea. More than 15 projects (EU and non EU funded) exploring synergies MARIKO LNG-Initiative Nordwest 30 network partners, Extensive expertise on LNG Two indicative sub projects Ø Reducing Type C tank manufacturing cost by 75% Ø Injecting LNG directly to Gas Turbines (No coldbox)

14 So what do we do Poseidon Med Vessels : Approval in Principal, for 6 lead Vessels Gas Readiness Level (Basic) for 2 Pilot cases Ports : LNG bunkering in port, finalisation of layout arrangement review and HAZID Ø Piraeus Ø Limassol Regulatory Framework : Ø Work on International Standards and Guidelines Ø Integration in the Greek Framework/ Reality Stakeholders Conference Zappeio Megaro 19 November 2015

15 LNG as Fuel infrastructure, key Remarks LNG Large scale infrastructure is there Synergy with Small scale LNG and the shore energy sector key to Success Significant EU investment in the sector fully justified and needed, Excellent potential for EU Shipping, Shipbuilding, Manufacturing Need to intensify our effort in order to Ø Develop demand, robust concepts for retrofit and new construction Ø Mature technology, render shift to gas more feasible Ø Avail Small Scale LNG Ships, barges

16 Panayiotis Mitrou Marine Technology & Innovation Manager Hellenic Lloyd s S.A. T Ε panayiotis.mitrou@lr.org Working together for a safer world Lloyd s Register and variants of it are trading names of Lloyd s Register Group Limited, its subsidiaries and affiliates. Copyright Lloyd s Register EMEA A member of the Lloyd s Register group.