Master plan CO2-reduction in Dutch shipping sector - Biofuels for shipping Strategic Workshop Port of Rotterdam, Rotterdam, The Netherlands 9 March 2018 Strategy Energy NOT Sustainability FOR PUBLIC USE
DISCLAIMER THIS MATERIAL IS PROVIDED FOR THE SOLE INTENTION OF PREREADING MATERIAL FOR THE PARTICIPANTS OF THE BIOFUELS FOR SHIPPING STRATEGIC WORKSHOP ON 9 MARCH 2018. THIS MATERIAL SHOULD NOT BE DISTRIBUTED FURTHER OR BE USED AS REFERENCE IN ANY WAY. 2
Welcome by the Platform Duurzame Biobrandstoffen 3
Objectives of the workshop & Agenda Update you, the stakeholders, on the progress so far. Validate or challenge the information we have gathered on the use of biofuels in shipping, and identify missing aspects. Gather your opinions about which interventions are needed to realise the potential of biofuels in the Dutch shipping sector. Timing Item Form 09:30-10:00 Welcome & Introduction Presentation (PDB, E4tech) 10:00-11:00 Opportunities & Barriers for Biofuels Session 11:00-11:10 Comfort break Presentation (E4tech) & audience participation 11:10-12:00 Interventions Session Presentation (E4tech) & audience participation 4
E4tech: Strategy Energy Sustainability International consulting firm, offices in UK and Switzerland Focus on sustainable energy Established 1997, always independent Deep expertise in technology, business and strategy, market assessment, techno-economic modelling, policy support Spectrum of clients from start-ups to global corporations Countries E4tech is or has been active in 5
Introduction to the Project Team Dr Ausilio Bauen Project Director overall responsible for the quality of the project outcomes, providing high-level guidance during project execution. Leads E4tech s bioenergy work, highly regarded expert on sustainable biofuels Ralph Ripken Technical Lead lead researcher and analyst for this project. Senior Consultant who has led leading numerous bioenergy projects for E4tech. Very experienced in stakeholder engagement. Hermen Westerbeeke Project Manager day-to-day project management. Managing Consultant who works across all E4tech s sectors. Extensive and diverse project management experience. Native of Rotterdam and grandson of a binnenvaartschipper. Dr Luca Bertuccioli Technical Expert specialised support on engine technologies and engineering aspects. Managing Consultant who led much of E4tech s work on aviation biofuels. Experienced in technoeconomic analyses and complex systems modelling. Chester Lewis Technical Expert researcher and analyst for this project. Consultant with a technical background who has previously investigating pathways to decarbonising the shipping industry. Cees-Willem Koorneef Shipping Sector Expert specialised support on shipping sector aspects. Manager with AddVision and the Binnenvaart Centre of Excellence. Over 30 years experience related to Ports, Maritime and Safety. 6
Rules of Engagement Chatham House Rule Any information disclosed during the workshop may be reported by those present, but the source of that information may not be explicitly or implicitly identified, unless that source has explicitly agreed to it. English please...maar als dat u deelname beperkt, spreek dan gerust Nederlands If we don t get to you...... please talk to us during lunch or get in touch on PDBproject@e4tech.com 7
Methodology Overall research question: What contribution could sustainable biofuels make to the reduction of emissions in the Dutch shipping sector? Context: the reduction of GHG and non-ghg emissions in the shipping sector Scope: inland shipping, short sea shipping; deep sea shipping; ports Timeframe: now to 2050 Outcome: a roadmap of interventions which will enable biofuels to contribute to the reduction of emissions in the Dutch shipping sector, supported by a fact-base Approach: Drivers of emission reduction in shipping Barriers and opportunities for biofuels Interventions Strategic Workshop 8
Drivers of emission reduction in shipping Policy, through legislation and regulation, is the main driver of emission reduction in shipping. Non GHGs (SOx, NOx) regulated through Emission Control Areas globally and the EU Sulphur Directive and the Non-Road Mobile Machinery (NRMM) Emissions Regulations in Europe and The Netherlands. Non GHG reductions have led to higher fuel consumption and thus increased GHG emissions. GHGs (CO2) only indirectly regulated globally through IMO s Energy Efficiency Design Index (EEDI) and Ship Energy Efficiency Management Plan (SEEMP), but reduction targets are expected to be adopted in April 2018. The EU may impose more stringent targets covering Europe. Dutch Maritime Strategy 2015 2025 aspires zero emission for inland shipping by 2050. Technical (ship design, engine development), Economic (market development), and Operational (slow steaming, autonomous shipping) not real drivers, but rather enablers or influences. 9
Emission reduction in shipping is about more than fuels 10
Energy options for shipping Incumbent Fuels HFO (LSHFO, ULSFO) & MGO (MDO) for short sea and deep sea & EN590 for inland & LNG for LNG carriers Hybrid options Diesel-electric; diesel-hydrogen; diesel-wind limited emission reductions LNG limited emission reductions (+ methane slip), but lower price than MGO Electricity Battery electric; fuel cell electric zero emission potential, currently limited to short range, large potential for cold ironing Biofuels CNG Inferior performance to LNG LPG limited emission reductions, price and safety issues Nuclear zero emission potential, but really only an option for the military due to safety and geopolitical aspects 11
Opportunities & Barriers for Biofuels Strategy Energy Sustainability
We have evaluated the following biofuels. Hydrotreated vegetable oil (HVO) Straight vegetable oil (SVO) FAME Ethanol Methanol (and DME) Bio-LNG Fischer-Tropsch Diesel Upgraded pyrolysis oil 13
based on four main criteria, for the three main shipping sectors and for today and 2030 Indicator Readiness of fuel production Compatibility with current engine and vessel (typical to sector type) CO2 reduction potential 1 Established and used widely, readily available and fully developed. No modification to engine or infrastructure - Drop in fuel or low blends >90% GHG savings 2 Commerically available but not in wide use, could be further development. Considerable changes to engine, fuelling system and/or storage/infrastructure 75-90% GHG savings 3 Working demonstration plant New vessel <75% GHG savings Shipping sectors Inland shipping Archetype: EN590 Diesel Short sea shipping Archetype: MGO Deep sea shipping- Archetype: HFO with scrubber 14
Hydrotreated vegetable oil (HVO) is commercially available today and as drop-in compatible in all sectors Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential Produced from conventional or waste-based vegetable oils via hydrotreatment Global commercial capacity is 4.5Mt/a, projected to increase to 7.5Mt/a by 2020 Drop-in fuel, meets EN590 and ISO 8217 specifications, low sulphur GHG emission saving potential depends on the feedstock and ranges from 26-65%, palm oil leads to the lowest emission savings Production cost: 0.8-1.5 /l or 23-44 /GJ 15
FAME production is a well developed process, with relatively low-cost fuel and good compatibility Shipping Readiness of sector fuel production Compatibility Inland Today* 2030* Short sea Today 2030 Today* 2030* Deep sea Today* 2030* CO2 reduction potential FAME (Biodiesel) is produced from transesterification of vegetable oils and fats Well-established commercial process At blend up to 7%, FAME is compatible with diesel engines in all sectors CO2 emission are in the range 14-68 gco2eq/mj and achieve approximately 19-83% GHG reductions Production cost of FAME is in the range of 18-36 /GJ * 7% blend limit 16
SVO is a readily available fuel but does not offer good compatibility and has a lower CO2 reduction potential Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential Straight vegetable oil is unprocessed and requires no conversion technology, hence is fully commercial Vegetable oils and waste oils are used as feedstock The prices of SVOs are traded commodities. For rapeseed the price is 17-24 /GJ, which is cheaper than HVO or FAME Only compatible without modification with Deep-sea shipping using HFO engines as it doesn t meet diesel requirements CO2 emissions are approximately 36 gco2eq/mj (for rapeseed oil) and lead to a reduction of approximately 57%. 17
1G Ethanol is a widely available fuel that requires engine system alterations to be compatible with current fleets Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential Produced through fermentation of food-crop based sugars and starches Commercially available, Production capacity 2x that of FAME Feedstocks include sugar cane, corn, wheat and sugar beet Compatible with current diesel engines by adapting injection, fuelling system and storage CO2 emissions are in the range of 24-43 gco2eq/mj that results in approximately 49-71% emissions savings Production cost is the range of 15-27 /GJ 18
2G Ethanol offers larger emission reduction potential and is expected to become widely available in 2030 Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 Production through hydrolysis of lignocellulosic feedstocks and fermentation of derived sugars Technology at early-commercial stage Feedstocks include non-food crops such as wheat straw and miscanthus, as well as farmed and waste wood. Compatibility is the same as for 1G Ethanol CO2 emissions are in the range of 13-25 gco2eq/mj that results in approximately 70-85% emissions savings Production costs through are in the range of 26-46 /GJ, reducing to 20-37 /GJ in 2030 CO2 reduction potential 19
Bio-Methanol requires engine alterations, but emission reduction potential and availability make it attractive Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential Compatible with current diesel engines by adapting injection, fuelling system and storage A few successful tests, for example Stena Germanica vessel CO2 emissions are in the range of 5-36gCO2eq/MJ (thermochemical route) and 8.5gCO2eq/MJ (RFNBO route), leading to GHG emission savings of 53-94% Early commercial scale (Enerkem, BioMCN, CRI) 20
Bio-LNG depends on the growth of LNG vessels Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential Two main production routes exist: Anaerobic Digestion (AD) with methanation and gasification with catalytic synthesis to methane, both followed by liquefaction AD with methanation is fully commercial, the gasification route is at demo-scale Feedstocks include manure, food waste or maize for AD and biomass or MSW for the gasification route Requires a new vessel due to the specific LNG storage GHG emissions for bio-lng via AD from manure are 26.1gCOeq/MJ leading to emissions savings of 69% 21
FT-Diesel is attractive as a drop-in and it is projected to develop to early commercial by 2030 Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential FT-Diesel is a drop-in fuel and fully compatible in all sectors CO2 emissions are in the range of 4-6gCO2eq/MJ, leading to emission savings of 93-95% when using farmed or waste wood Production cost: 23-40 /GJ in 2020, and 23-31 /GJ in 2030 TRL 5-6 (demo scale, planned 1 st commercial) 22
Upgraded pyrolysis oil is currently only at demo scale, but its drop-in characteristics make it attractive for 2030+ Shipping Readiness of sector fuel production Compatibility Inland Today 2030 Short sea Today 2030 Today 2030 Deep sea Today 2030 CO2 reduction potential Non-upgraded: corrosive/acid; Upgraded: Drop-in Compatibility of less strongly upgraded pyrolysis oil not tested yet CO2 emissions are expected similar to FT-Diesel Production cost: 22-32 /GJ in 2030 TRL 5-6: Short blending campaigns in refineries 23
Compatibility For compatibility HVO and FAME are currently most attractive, but in time the picture becomes more diverse 2030 UPO FT 2030 HVO FAME DME Bio- MeoH EtoH 2G 2030 EtoH 1G Inland and short-sea shipping bio LNG Readiness of fuel production 24
Compatibility The picture in deep-sea shipping looks similar, SVO is more attractive, but the low HFO price makes it less viable 2030 UPO FT 2030 SVO HVO FAME DME Bio- MeoH EtoH 2G 2030 EtoH 1G Deep-sea shipping bio LNG Readiness of fuel production 25
Comfort break 10 minutes max Strategy Energy Sustainability
Interventions Strategy Energy Sustainability
How can sustainable biofuels contribution be realised? Main objective: assess what you think needs to be done Intervention = what needs to be done by who and when in order to achieve which result? Dimensions: Time: now 2030 2050 Societal Sector: policy-makers ship technology developers shipping operators port operators fuel distributors fuel providers etc. Shipping types: deep sea shipping short sea shipping - inland shipping Sub-sessions on: Ports Policy Innovation 28
Ports Your suggestions go here 29
Policy Your suggestions go here 30
Innovation (technical, commercial, operational) Your suggestions go here 31