GREEN INFRAPORT PROJECT

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1 PRF-Workshop, Kiel, Germany 1 July 2016 GREEN INFRAPORT PROJECT Emil Arolski, Project Manager Baltic Ports Organization

2 Baltic Ports Organization The BPO's mission is to contribute to sustainable development of maritime transport and the port industry in the Baltic Sea Region, thereby strengthening its global competitiveness. An active regional ports organisation and supporting its members while cooperating pro-actively with relevant partners established on October 10, 1991, in Copenhagen 45 members of the most significant ports in the nine countries surrounding the Baltic Sea well-recognized within the BSR, in EU bodies and other European regions registered in Estonia (Port of Tallinn headquarter) and operates according to the Estonian Law on Non-profit Associations.

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4 GREEN INFRAPORT PROJECT The initiative addresses a few environmental developments and challenges within Baltic Sea region within maritime transport: Port reception facilities for sewage from passenger ships Liquefied Natural Gas (LNG) bunkering infrastructure Port reception facilities for waste from scrubbers in ports Onshore power supply Energy management in ports and terminals.

5 GREEN INFRAPORT PROJECT PROJECT SET-UP Partners: Baltic Ports Organization SSPA Sweden MOTUS Foundation Project duration: April end of April 2017

6 MAIN OBJECTIVE: REDUCING IMPACT OF SHIPPING AND PORTS ON THE ENVIRONMENT Specific objectives are: Planning and construction of waste water reception facilities in ports; Facilitating the reception of waste from scrubbers in ports; Optimizing the energy use in ports and onshore power supply; Using LNG as an alternative fuel for ships and source of energy for terminal vehicles.

7 POLICY AND REGULATION CONTEXT: PORT RECEPTION FACILITIES FOR SEWAGE FROM PASSENGER SHIPS IMO resolution amending the Annex IV of the MARPOL Convention. All passenger ships (cruises, ferries) sailing in the Baltic Sea will be obliged to treat the waste water on-board or discharge the waste in the ports. 1 st July 2019 prohibited discharge from new passenger ships 1 st July prohibited discharge from existing passenger ships.

8 POLICY AND REGULATION CONTEXT: LIQUEFIED NATURAL GAS (LNG) BUNKERING INFRASTRUCTURE & WASTE FROM SCRUBBERS IN PORTS Annex VI of MARPOL Convention 73/78 and Sulphur Directive (Directive 33/2012/EU). January, 1 st 2015 the stricter limits of sulphur content in marine fuels within SECA are in force Directive on the deployment of alternative fuels infrastructure (Directive 2014/94/EU).

9 POLICY AND REGULATION CONTEXT: ON-SHORE POWER SUPPLY Directive on the deployment of alternative fuels infrastructure (Directive 2014/94/EU). According to the directive shore-side electricity supply shall be installed as a priority in ports of the TEN-T Core Network, and in other ports, by 31 st December 2025, unless there is no demand and the costs are disproportionate to the benefits. Power installation in ports would allow ships conection to onshore power and significantly contribute to reducing the emissions from auxiliary engines whilst berthed.

10 POLICY AND REGULATION CONTEXT: ENERGY MANAGEMENT IN PORTS AND TERMINALS EU energy and climate change policy. According to the ESPO Port Environmental Review 2013 the interest in environmental issues has increased and the topic of energy consumption has moved to the top priorities of European ports. The effective management of efficient energy consumption and emission reduction is becoming an increasingly relevant competitive factor also for Baltic Sea ports and terminals.

11 POLICY CONTEXT: EU STRATEGY FOR BSR The project is on line with the EU Strategy for Baltic Sea Region (COM 2012, 128 final). In particular the project meets the objectives Save the Sea (sub-objective Clean and safe shipping). Furthermore, the project by decreasing GHG emission is coherent with the Strategy s objective Prosperity of the Region (subobjective: Climate change adaptation, risk prevention and management). In addition, by constructing a modern port infrastructure, the project is consistent with the objective Connect the region (sub-objective: Good transport conditions)

12 PROJECT OUTPUTS: Output 1: State of play in the field addressed by the project including an overview of complementary projects Output 2: Assessment of investment needs/interest and plan for the main stage project Output 3: Report on funding possibilities, inputs for applications for main project(s).

13 PROJECT ACTIVITIES: STATE OF PLAY IN THE FIELD ADDRESSED BY THE PROJECT INCLUDING AN OVERVIEW OF COMPLEMENTARY PROJECTS Analizing of existing information and knowledge from reports, literature, studies and other documents, Surveying the information about the currently available technologies, facilities in ports, Reviewing on-going and earlier projects dealing with issues addressed by this project, Consulting, meetings, seminars, interviews, Creating new networks for collecting information, experiences, know-how of various relevant stakeholders and experts about in the field of issues addressed by this project.

14 EXAMPLES OF CHALLENGES FOR THE GREEN INFRAPROJECT AND DEPLOYMENT OF GREEN INFRASTRUCTURE IN PORTS Seeking an effective and economic solution for sewage PRF In some countries the sewage from passenger ships is considered to be an industry wastes (quality of sewage questioned) and thus can not be discharged directly to the municipal sewage system. In such cases, ports are pushing for construction of waste water treatment plants in port territory dedicated to treat the sewage from passenger ships. Such investments are very expensive and for sure are not sustainable. Dialogue with local sewage companies necessary Role of national ministries as facilitator of the process

15 EXAMPLES OF CHALLENGES FOR THE GREEN INFRAPROJECT AND DEPLOYMENT OF GREEN INFRASTRUCTURE IN PORTS Seeking an effective and economic solution for OPS Very high investments costs, Business cases not feasible, Lack of incentives, Soft policy framework.

16 POTENTIAL PARTNERS OF THE MAIN STAGE PROJECT Baltic ports Waste companies Utility companies Terminal operators Technology providers Maritime administrations Research institutes, universities BPO and other port organisations Other organisations closely related to ports and port authorities

17 FUNDING PROGRAMMES Connecting Europe Facility Up to 85% - Cohesion countries Up to 30% - Other EU states (up to 50% for studies) South Baltic Programme 85% - Polish, Lithuanian, Latvian, Estonian, German beneficiaries 75% - Swedish, Danish beneficiaries INTERREG Baltic Sea Region 85% - Polish, Lithuanian, Latvian and Estonian beneficiaries 75% - German, Swedish, Danish, Finnish beneficiaries

18 FUNDING PROGRAMMES INTERREG Europe 85% - Public bodies and bodies governed by public law 75% - Private non-profit bodies HORIZON 2020 Financing rate: 100% Research and Innovation Action (expected project budget: 3-5 mln EUR) Co-ordination Action (expected project budget: 1 mln EUR)

19 Thank you! Emil Arolski Project Manager, Baltic Ports Organization