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2020 Low Sulphur Regulation: the Underlying Potential to Improve the ‘Energy Efficiency Design Index’ of Ships

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2020 Low Sulphur Regulation: the Underlying Potential to Improve the ‘Energy Efficiency Design Index’ of Ships World Maritime University The Maritime Commons: Digital Repository of the World Maritime University World Maritime University Dissertations Dissertations 11-4-2018 2020 low sulphur regulation: the underlying potential to improve the ‘energy efficiency design index’ of ships Nawin Ranjan Sharma Follow this and additional works at: https://commons.wmu.se/all_dissertations Part of the Energy Systems Commons Recommended Citation Sharma, Nawin Ranjan, "2020 low sulphur regulation: the underlying potential to improve the ‘energy efficiency design index’ of ships" (2018). World Maritime University Dissertations. 640. https://commons.wmu.se/all_dissertations/640 This Dissertation is brought to you courtesy of Maritime Commons. Open Access items may be downloaded for non-commercial, fair use academic purposes. No items may be hosted on another server or web site without express written permission from the World Maritime University. For more information, please contact [email protected]. WORLD MARITIME UNIVERSITY Malmö, Sweden 2020: LOW SULPHUR FUEL REGULATION – THE UNDERLYING POTENTIAL TO IMPROVE THE ‘ENERGY EFFICIENCY DESIGN INDEX’ OF SHIPS By NAWIN RANJAN SHARMA India A dissertation submitted to the World Maritime University in partial Fulfilment of the requirements for the award of the degree of MASTER OF SCIENCE In MARITIME AFFAIRS (MARITIME SAFETY & ENVIRONMENTAL ADMINISTRATION) 2018 Copyright Nawin Ranjan Sharma, 2018 DECLARATION I certify that all the material in this dissertation that is not my own work has been identified and that no material is included for which a degree has previously been conferred on me. The contents of this dissertation reflect my own personal views and are not necessarily endorsed by the University. ii ACKNOWLEDGEMENTS Sarasvati Namastubhyam Varade Kaama-Ruupinni | Vidya[a-A]arambham Karissyaami Siddhir-Bhavatu Me Sadaa || Salutations to Goddess Saraswati, the giver of boons and fulfiller of wishes; O goddess, please bestow on me the capacity of right understanding, always. With the auspicious blessings of goddess Saraswati, this dissertation is created and dedicated to the eternal love of my parents, my wife, and my children. First, I would like to thank IMO for establishing WMU and providing a quality and informative professional course at world level. I thank all my revered teachers and professors of WMU for bestowing their pristine knowledge, which has mellowed and blossomed as this work. I would also like to thank all my treasured batch-mates for their perpetual support during my research. My gratitude to Sweden, for providing special status to WMU and to the people of Malmo for accepting us as a student in one of the best city and the benevolent society. I am grateful to my employer Mitsui OSK Lines, for providing me with an opportunity to learn and grow with various challenging assignments during our eighteen years of strong professional bonding. This dissertation is a reflection of my educational and professional learning. My dedicated love to alma mater MERI (formerly DMET), the nursery of my marine engineering profession and all the professors of the college for providing me support during my studies at WMU. The most important, my supervisor Mr D. Dalaklis, your precise guidance and ceaseless inspiration during the research, has created an invaluable space for me and develop myself as an overall proficient researcher. I sincerely appreciate the freedom you provided me to extend my research beyond the word limitations and the encouragement you proffered when needed. Finally, my sincere thanks to every concerned person who have directly or indirectly supported me to complete this research work. Nawin Ranjan Sharma iii ABSTRACT Title of Dissertation: 2020: Low Sulphur Regulation – The Underlying Potential to Improve the ‘Energy Efficiency Design Index’ of Ships. Degree: Master of Science This dissertation is providing a theoretical analysis of the potential benefits with the sulphur-free fuel and identifies the comparative disadvantages associated with the prevalent marine fuels containing sulphur with a regulatory limit of 3.5%. In addition, it analyses the need and development of sulphur regulation, followed by a safety analysis of compliant fuel i.e., Liquefied Natural Gas (LNG). A brief analysis based on chemical formulae presents chemical characteristics of sulphur-contaminated fuel that generates corrosive sulphuric acid during combustion and thus limits the lower working temperature at 160C and in effect reduces the thermal efficiency. To overcome this technical limitation, LNG is proposed as a solution fuel and the advantage is calculated based on thermodynamic laws. The result is validated for its application to steam-based and diesel engine based propulsion system. Two suitable technologies Organic Rankine Cycle (ORC) and Steam Rankine Cycle (SRC) and its application to ships are discussed as case studies. The economic aspects are examined with a case study performed by ‘Maschinenfabrik- Augsburg-Numberg’ (MAN) and ‘Germanischer Lloyd’ (GL) that provided a maximum payback period of 84 months. The result is further supported by a joint evaluation report presented by ‘Committed to the environment’ (CE) Delft and ‘Toegepast Natuurwetenschappelijk Onderzoek’ (TNO) to the European Commission; the Cost-Based Analysis (CBA) based on the drivers and barriers to ‘LNG as marine fuel’, scores positive ‘Net Positive Value’ (NPV) of less than 11 years in most of the cases considered. The overall result takes a ‘proof test’ as ‘Strengths Weaknesses Opportunities and Threats’ (SWOT) analysis, that provides an inclination towards LNG’s strength and opportunities compared to other fuel options. Based on IMO regulations and MEPC guidelines, the gain in efficiency is quantified for a presumed ship and linked to the improvement in Energy Efficiency Design Index (EEDI) of a ship. The conclusion of the dissertation endorses the viability of proposal and establishes a positive underlying link between the two regulations i.e., MARPOL Annex-VI, regulation-14, and regulation-21, with the use of LNG or other sulphur-free fuel. Keywords: Sulphur, Acidic-corrosion, Technical limitation, LNG, Low-sulphur regulations, ORC, SRC, Positive NPV, Favourable CBA, Gain in EEDI. iv TABLE OF CONTENTS DECLARATION ............................................................................................................................... II ACKNOWLEDGEMENTS ................................................................................................................ III ABSTRACT .................................................................................................................................... IV TABLE OF CONTENTS ..................................................................................................................... V LIST OF TABLES .......................................................................................................................... VIII LIST OF FIGURES ........................................................................................................................... IX LIST OF ABBREVIATIONS............................................................................................................... XI CHAPTER 1. INTRODUCTION .......................................................................................................... 1 1.1 THE DISSERTATION ............................................................................................................................. 2 1.2 DISSERTATION OBJECTIVE .................................................................................................................... 4 1.3 METHODOLOGY ................................................................................................................................ 4 1.4 DISSERTATION OUTLINE ...................................................................................................................... 6 CHAPTER 2. BACKGROUND ............................................................................................................ 7 2.1 THE DEVELOPMENT OF SULPHUR REGULATIONS IN SHIPPING ....................................................................... 7 2.1.1 The United Nations Convention on the Law of the Sea (UNCLOS) framework ..................... 9 2.1.2 The ‘Clean Air Act - 1970’ USA .............................................................................................. 9 2.1.3 The European region .......................................................................................................... 11 2.1.4 MARPOL regulations and MEPC work on Sulphur Control ................................................. 12 2.1.5 Regional regulation for sulphur control in shipping ........................................................... 15 2.2 THE NEED-BASED EVOLUTION OF LNG IN SHIPPING ............................................................................... 19 2.2.1 Need for Economy: price control of gas .............................................................................. 19 2.2.2 Need for Environment: LNG as a cargo for shore industry ................................................. 19 2.2.3 Need for Efficiency: commercialization of LNG transportation .......................................... 20 2.2.4 Need for Existence: the sustainability factor ...................................................................... 20 2.2.5 Need for Energy: LNG as a marine fuel..............................................................................
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