Challenges for the maritime industry: environmental requirements... Ralf Plump, PTP lead Environmental Protection, Safety & Environmental Research

Content Challenges for maritime industry - upcoming environmental requirements -the CO 2 gap new building vs. retrofitting: -... is the martime industry prepared? ballast water management: -...the 30 billion US$ deal gas as fuel (LNG): - supply chain & bunkering vision & concept of zero-emission shipping - vision of a zero-emission container feeder vessel - Feasiblity study for Scandlines: zero-emission emission ferry connection Other Environmental drivers Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 2

Overview and timeline for maritime environmental regulations US+CAN ECA active 0.1% S, SECA NO x, Tier III, ECA review 0.5% S, global NO x, T Ballast water * Ship Recycling * Ship Recycling *?? CO 2 market measures??* CO 2 technical measures 3.5% S, global NOx Tier I, global NO x Tier II, global Fuel tank protection 1% S, SECA 0.1% S, EU ports efficiency related *) estimated entry into force NOx regulation refers to ship construction 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 4

Predicted CO 2 -emissions from world container shipping (all available cost-effective measures implemented) 1,400 Total BAU BAU: business as usual 1,200 Total cost-efficient measures mil t 1,000 Possible EU reduction targets CO 2 emi issions in 800 600 400 97 % 200 45 % -20 % of 2005-80 % of 1990 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 Time Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 5

Shipping and environment Ocean-going vessels are the most efficient mode of transport, but Resource consumption * Fuels (HFO, MDO/MGO) * Water Emissions * CO 2 Carbon dioxide *SO 2 Sulphur dioxide id * NO X Nitrogen oxide * Particulate matter (PM): black carbon Garbage and chemicals * Sludge from separators and filters * Garbage * Chemicals Wt Water use * Ballast water: invasive species biofouling management * Sewage * Anti-fouling paint Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 6

The world fleet & recent orders & where they trade September 2011 World fleet Tonnage: 1.1 billion GT # ships : 116,690 World order book Tonnage : 240 million GT # ships : 7,757 >> 6.6% of world fleet... we still have overcapacities in tonnage: smart retrofitting might be the way to cope future requirements! Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 8

ballast water management code: status of BWMC ratification (October 2012) BWM Convention has already been contracted by 36 Flag States (30 required) representing 29,07% of world s gross tonnage (35% required). With ratification of one Flag State with 6% gross tonnage (e.g. Panama), BWM Convention becomes mandatory 12 months later. 29 BWT systems have obtained full IMO type approval. About 45 BWT manufactures are in the certification process. * ) Argentina, Belgium (both below 1%) and Germany (1,4%) due to submit their instruments of ratification in the near future. Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 10

Ballast Water Management: Convention and estimated number of vessels required to install BWMS Estimated number of vessels required to install BWMS (from MEPC 61/2/17, Japan) Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 11 BWM Convention is expected to be in force 2014? (MEPC 65: postponement) p Treatment Standard: D-2 is required for all ships from 2016 on Required for ratification Ratification status Countries % of world tonnage 30 35 30 26.44 Source: www.imo.org

GL experience - installation of BWT systems Little practical experience whether installed BWMS fulfils IMO- requirements is available (see also EMSA-report from 2011). Main reason is that installed systems are not yet in operation due to additional operation costs (energy & service). A trend in Europe is to do the engineering & retrofitting by engineering companies and while ship is in service. Most recent installation of de-oxygenation-based systems showed challenges hll and systems were not readily working as stated ttdby manufacturer of treatment system. Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 12

LNG is available along all most important shipping routes Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 14

The LNG supply chain for gas as ship fuel local LNG production plant small LNG tanker local LNG storage LNG import & export terminal LNG end user LNG bunker vessel Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 15

Relevant LNG terminals A B G D K E F C J H A Rotterdam (import with planned small scale export) B Zeebrugge (import & export ready, small jetty planned) C Nynäshamn (small import & export) planned small scale: D Gothenburg E Swinoujscle F Gävle G Ora H Estonia J Lithuania K - Hamburg (concept) Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 16

LNG bunkering reality and proposals SMTF et al 2010 source: DSME; Gas-fuelled Ships Conference 20 Oct. 2010, Hamburg, Germany Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 17

Bunkering LNG Ship to Ship the future Bunkering gas as fuel for ships BunGas release of LNG must be prevented (extremely unlikely) by technical and organizational solutions to establish a reliable technology. Volume limitation of possible gas releases Reduction of failure frequency Training of crew development of bunker vessel and bunker requirements Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 18

wind energy > sustainable energy for shipping: what fit s? indirect usage of wind power surplus of wind energy/electicity it electrolysis hydrogen H 2 LH 2 for short seashipping direct usage of wind power Skysails Enercon E-Ship 1 sustainable shipping Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 20

One solution Hydrogen as fuel The new zero-emission container feeder vessel design concept has fuel cells and tanks to hold liquid Hydrogen for a typical roundtrip. The vessel stops every ten days at an offshore station ti for bunkering. An offshore station produces liquid Hydrogen by using surplus wind energy. The Hydrogen is stored for short periods. Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 21

The Hydrogen-fuelled container feeder vessel The new container feeder vessel targets traditional trades. Full open-top 1000 TEU intake with 150 reefer slots, service speed of 15 knots The new container feeder vessel runs on liquid Hydrogen. 5 MW fuel cell systems, with 3 MWh battery systems to provide peak power Multiple type C tanks with 920 m 3 to hold liquid Hydrogen for a ten-day roundtrip Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 22

Liquid Hydrogen offshore production potential In 2020, about 3GW generation capacity is assumed to be installed in offshore wind energy parks in the German Exclusive Economic Zone. Up to 30% of the generated power may not be put into the grid and could be available for Hydrogen production (up to 3600 GWh/a). A 500 MW wind farm may produce up to 6.000 t liquid Hydrogen (LH2) using its surplus power. This could serve 3 feeder vessels. An intermediate t storage of LH2 for up to 10 days requires insulated tanks of up to 3000 m 3. Costs for LH2 are based on invest for production, liquefaction and storage installations. Offshore wind farms in German EEZ of North Sea source: BSH, http://www.bsh.de/en/marine_uses/industry/contis_maps/index.jsp Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 23

Onshore systems use surplus wind energy today Hydrogen-hybrid power plant in Prenzlau wind energy produces Hydrogen 500 kw electrolysis system intermediate storage in tanks use of Hydrogen in power plant or by cars (at special fuel stations) cooperation of Enertrag, Total, Vattenfall Power to gas plant in Falkenhagen wind energy produces Hydrogen 2 MW electrolysis system Hydrogen is being put into natural gas pipeline system Operated by EON partner is greenpeace energy Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 24

Design concept for a zero-emission ferry H 2 -tanks Flettner rotors 4 double end ferries one departure every 30 minutes very short time in harbour speed between 15 and 21 knots battery system fuel cell system podded propulsors source: Scandlines 2012 Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 25

Zero Emission Scandlines ferry... from operational profils over efficiencies to energy demand 1500 passengers 18,5 knots 2.200 lane meters 140m³ H2-tanks 8300 kw fuel cells 2400 kwh batteries 4 x 3MW pod - propeller energy demand per trip 16,0 kn 16 GJ 18,5 kn 19 GJ Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 26

Zero Emission idea and concept Energy converter / reduced consumption 6 5 fuel cell output 4 [MW] 3 2 power demand power 1 power balance 0-1 1 5 9 13 17 21 25 29 33 37 41 45 fuel cells up to 17kn battery support from 17 to 18,5 kn Time [hours] Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 27

Liquid Hydrogen: from Windpower to Bunker Station basis: 4 vessels, 24h wind energy 4591 MWh 100% grid losses 230MWh 5% electrolyses 1561MWh 34% liquefaction 1722MWh 37,5% transport 46MWh 1% 22,5% Liquified H 2 1033MWh Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 28

Gaseous Hydrogen: from Windpower to Bunker Station basis: 4 vessels, 24h wind energy 3083MWh grid losses 154MWh 5% 100% electrolyses 1048MWh 34% compression 308MWh 10% transport 540MWh 17,5% 33,5% Compressed H 2 1033MWh Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 29

Other Environmental drivers Observations from the Market: Carriers are requesting an emission reporting for their individual transported cargo on ships Global players like DHL, ABX, Ikea, Automotive manufacturers are demanding emission data for their annually sustainability reports Industry associations have been formed to enable carriers emission reporting (like CCWG) ports are beginning to differentiate port fees according to ships environmental impact (CSI, ESI) emission reporting is necessary / required Int. Conference "Grünes Wachstum im Ostseeraum" / Rostock 2013-06-14/15 No. 31

Thank you for your kind attention. ralf.plump@gl-group.com ptp-environmental@gl-group.com