The OPS & LNG projectswithin World Ports ClimateInitiative(WPCI)

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1 The OPS & LNG projectswithin World Ports ClimateInitiative(WPCI) Green Energy Ports Conference, Vigo, Spain, Roundtable: OPS and LNG in ports, 12 th July 2013 Susann Dutt, Project Manager of the OPS project within WPCI & Quality Manager & Sustainability Specialist in Port of Gothenburg, Sweden

2 Overview 1. World Ports Climate Initiative (WPCI) 2. The OPS & LNG Projects within WPCI 3. Short remarks related to the subject of OPS & LNG 4. How to get involved?

3 World Ports ClimateInitiative 55 ports adopted the World Ports Climate Declaration from 2008 which addresses: - Reduction of greenhouse gas emissions from ocean-going shipping - Reduction of greenhouse gas emissions from port operations and development - Reduction of greenhouse gas emissions from hinterland transport - Enhancement of the use of renewable energy - Development & availability of CO 2 inventories Spanish ports signing in 2008: Algeciras Bay, Barcelona & Valencia Spanishports signingin 2012: Vigo! And in 2013.?

4 OngoingprojectswithinWPCI Environmental Ship Index Carbon Foot Printing Intermodal Transport Lease Agreement Template Cargo Handling Equipment Onshore Power Supply(OPS) Liquified Natural Gas(LNG)

5 The OPS Project withinwpci Started in 2009 Overall goal Reducelocalair pollutantsand greenhouse gas emissions by stimulating as many ports, terminal operators and shipping lines worldwidetoimplementthe technologyofops, wherepractical and useful. Lead port: Port of Gothenburg, Workinggroup: Ports ofamsterdam, Antwerp, Gothenburg, Hamburg & IAPH Europe

6 Updated version July 2013!

7 Short remarkson OPS OPS: OPS is not onefits all solution!, BUT couldbe an option for somevessel segments and in some ports It s not a magic bullet! The environmentalbenefit calculationscandiffera lotdependingon the emission factors for producing the electricity Best source ofenergy= alternative energylike wind, sun The greatwinnerfrom usingops is the societyas the externalcostis often very high Tax exemptionor at least97% cuthas beenan importantstep in Sweden The port sector can enable, take leadership, facilitate in the area of OPS!

8 The LNG projectwithinwpci Started in May 2012 Harmonization of the approach for LNG as fuel for shipping between Ports is one of the crucial factors for the success of LNG!

9 WPCI LNG Working Group Three working groups: SWG 1: Bunker checklists and guideline for accreditation SWG 2: Risk perimeters SWG 3: LNG Awareness

10 Active & interestedports in the LNG project Active ports Lead Port: Antwerp Amsterdam Bremen/Bremerhaven Brunsbüttle Fujairah Gothenburg Hamburg Le Havre Los Angeles Long Beach Rotterdam Stockholm Zeebrügge Interested ports Broome Dover Flinderports Frederikstadt Gent Gijón Marseille Olso Liverpool Medway San Francisco Singapore Tacoma Taranaki Supported by: All ports are welcome to join! Industry partners will also be invited to join!

11 WPCI LNG Fuelled Vessels Working Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SWG 1: Draft bunker checklists SWG 1: Draft accreditation guideline SWG 2: Report LNG risk perimeters Industry reference group meeting 8th of October in Antwerp SWG 3: Launching LNG website IMO 0,1% Sulfur Regulation within SECA

12 Short remarkson LNG LNG: The fantastic thing regarding the WPCI LNG project is that so many ports all over the world are collaborating! We need to effectively romp the chicken and egg situation, WPCI is actively contributing to this, many committed ports Important: Avoid European technical standards, different from global IMO- ISO standards, WPCI is contributing to this development! A big problem: No bunkering facilities in ports, WPCI is one part of the solution LNG infrastructure offers the bridge over to fossilfree fuels Important to have a close cooperation with EMSA, other LNG related projects, as well as the industry! Important to have an industry perspective on LNG, not just for the vessels! LNG bunkering shouldn t take longer time than conventional bunkering The port sector can enable, take leadership, facilitate in the area of LNG!

13 Howtoget involved? Follow port of Vigoand sign the WPCI declaration from 2008! Contact person: Mr Fer Van de Laar, OPS project: Join the LinkedIn group Onshore Power Supply: share experience, studies, questions & comments Explore the OPS experience at Make your own feasibility study! Share info about the website to your network LNG project: For questions/comments or to join the project contact:

14 Muchasgraciaspor la attención! Susann Dutt, Project Manager of the OPS project within WPCI & Quality Manager & Sustainability Specialist in Port of Gothenburg, Sweden

15 Extra slides

16 WHY investin OPS & LNG? Local air quality Climatechange Noise Dust Future generations The environmental challenges Stakeholder expectations Customers Employees Authorities Local citizens Current& future legislation Commitment& leadership SECA, NECA License to operate WPCI Green Guide, 5 E s Green growth Green image

17 Howis the interestin OPS? Ports with OPS Source of PPT-slide: Port of Gothenburg

18 Howis the interestin OPS? Ports with OPS -for all typesof vessels Gothenburg Antwerp Helsingborg Juneau Karlskrona Kemi Kotka Long Beach Los Angeles Lübeck Osaka Oslo Oulu Piteå Pittsburg Prince Rupert Rotterdam San Diego San Francisco Seattle Shanghai Schenzen Stockholm Trelleborg Ystad Vancouver Zeebrügge ArethereanySpanishports? Pleaseletmeknow! Source of PPT-slide: Port of Gothenburg

19 Howis the interestin OPS? Ports considering OPS Source of PPT-slide: Port of Gothenburg

20 Howis the interestin OPS? Ports considering OPS Amsterdam Barcelona Bergen Civitavecchia Georgia Genoa Helsinki Hong Kong Houston Kaohsiung Le Havre Livorno Marseille Nagoya Oakland Richmond Riga Rome South Carolina Tacoma Tallinn Tokyo Yokohama Are there more Spanish ports? Please let me know! Source of PPT-slide: Port of Gothenburg

21 MoreaboutOPS & LNG In Port ofgothenburg OPS: LNG: Our sustainability report:

22 Example: Investment cost to adapt vessels for OPS Typeofship Power requirement Tonnage (GT) Total investment* (KSEK) Ro/ro 1.5 MVA 25,000 4, Container 7 MVA 75,000 5, Tanker 7 MVA 75,000 5, Cruise 15 MVA 80,000 7, Annual investment cost* (KSEK) * Converted from to SEK (rate 1 = 9 SEK), according to Calculation Model OPS, 10 year depreciation period, 6% interest. The investment costcanvarya lotand thisis just an example. Source of information: Preconditions for connecting ships to Onshore Power Supply in the Port of Gothenburg, 2012

23 Running costs with OPS - container Option Annual cost with 10 berthingsand 20 hours at each berthing Electricity generation with dieselpowered auxiliary engine SEK 762,000 Onshore electricity SEK 296,000 Annual saving with onshore power supply SEK 466,000 With an annual investment cost to provide the ship with onshore power equipment of SEK 680,000, a conversion to OPS is economically beneficial if the ship berths 15 times or more (20 hours lay-days) Assumptions: Electricity price: 59 öre kwh Heavy fuel oil price: 1,045 USD/tonne= 6,792 SEK/tonne(1 USD= SEK 6.50) Main engine output 20,000 kw

24 External cost* SEK per average call in the Port of Gothenburg External cost Container Ro/ro* Car Carbon dioxide 33,000 28,000 34,000 Nitrogen oxides Particulate matter Sulphur dioxide Total external costper segment 42,000 35,000 43,000 53,000 44,000 55,000 5,000 4,000 5, , , ,000 Assumptions: The external cost from not using OPS at the quaysideduringa year. SEK 4 has beenusedfor the calculationofthe external cost. NOx87 SEK/kg, PM 3564 SEK/kg, SO SEK/kg, CO SEK/kg. * A negative externality (also called "external cost") is an action of a product on consumers that imposes a negative effect on a third party; it is a "social cost".

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