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Report on the Technological and Economic FINAL REPORT COMMISSION OF THE EUROPEAN COMMUNITIES TECHNOLOGICAL AND ECONOMIC FEASIBILITY STUDY OF SHIP SCRAPPING IN EUROPE REPORT NO. 2000-3527 REVISION NO. 01 DET NORSKE VERITAS – APPLEDORE INTERNATIONAL DET NORSKE VERITAS – APPLEDORE INTERNATIONAL FINAL REPORT Date of first issue: Project No.: DET NORSKE VERITAS 2001-02-13 590 00159 REGION NORGE AS Approved by: Organisational unit: Environmental Advisory Services Environmental Advisory Services Christian L. S. Rafn Veritasveien 1, 1322 HØVIK, Norway Head of Section Tel: +47 67 57 99 00 Fax: +47 67 57 99 11 Client: Client ref.: http://www.dnv.com Commission of the European Magnus Level Org. No: NO 945 748 931 MVA Communities Summary: The study has considered the feasibility of undertaking the procedures associated with the disposal of four vessel categories with respect to technology and economy within Europe, the wider European Economic Area and in neighbouring countries (Eastern Europe and Russia). The four categories are: · Offshore structures · Merchant fleet · Inland waterway vessels · Naval vessels Findings and conclusions are based on assessments including the review of decommissioning and disposal decision factors, type and volume forecast predictions, established procedures, market opportunities, legislative framework and compliance expectations. The report presents disposal forecast results for each vessel category and provides guidance on the potentials and opportunities of undertaking such activity in Europe. Limitations and requirements associated with decommissioning, dismantling and recycling/ re-use in a European context are discussed and recommendations provided. These are supported by background data and details presented in Appendices. Report No.: Subject Group: 2000-3527 Indexing terms Report title: Technological and Economic Feasibility Study Ship decommissioning/ scrapping/ recycling of Ship Scrapping in Europe Decommissioning volumes Merchant/ offshore/ naval/ inland waterways Feasibility in Europe Work carried out by: Aage Bjørn Andersen (DNV), Øyvind Endresen (DNV), Sue No distribution without permission from the Hall (AI), Pam Jose (AI), Raouf Kattan (Safinah), Peter Orrick client or responsible organisational unit, i.e. free (AI), Astrid Rydock (DNV), and Terje Sverud (DNV) distribution within DNV after 3 years Work verified by: Egil Dragsund (DNV) Strictly confidential Date of this revision: Rev. No.: Number of pages: 13.02.2001 01 95 Unrestricted distribution Head Office: Veritasvn. 1, N-1322 HØVIK, Norway Feasibility Study Ship Scrapping Final Report 21feb01.doc DET NORSKE VERITAS – APPLEDORE INTERNATIONAL Report No: 2000-3527, rev. 01 FINAL REPORT Table of Content Page 1 SUMMARY AND CONCLUSIONS........................................................................1 2 INTRODUCTION....................................................................................................4 2.1 Recycling and sustainability 4 2.1.1 Vessel categories 4 2.1.2 European Environmental Context 4 2.1.3 Implications for vessel disposal and scrapping industries 5 2.2 Objectives and scope 6 2.2.1 Methodology 6 2.3 Accomplishment 8 3 END-OF-LIFE DECISION FACTORS .................................................................. 10 3.1 Offshore structures 10 3.2 Merchant world fleet 11 3.3 Navy fleet 12 3.4 Inland fleet 12 4 DECOMMISSIONING VOLUME......................................................................... 14 4.1 The European dimension 14 4.1.1 The Basel Convention impact 15 4.2 Offshore structures 16 4.2.1 World-wide 16 4.2.2 Europe 16 4.2.3 Offshore decommissioning and disposal regulations 17 4.2.4 European scrapping forecast 17 4.2.4.1 Input to the recycling process 18 4.2.5 Conclusion 19 4.3 Merchant world fleet 19 4.3.1 The cargo carrying fleet 20 4.3.1.1 Flag state distribution 20 4.3.2 Scrapping supply, merchant world fleet 20 4.3.3 Europe 1999 22 4.3.4 Vessels sold for scrapping 1992-2000 24 4.3.5 Forecast - world merchant fleet scrapping rate 25 4.3.6 Conclusion 28 4.4 Navy fleet 30 4.4.1 World navy fleet 30 4.4.1.1 Global distribution 31 4.4.2 US navy fleet 31 4.4.3 Europe 32 4.4.4 Conclusion 33 Page i Reference to part of this report which may lead to misinterpretation is not permissible. Feasibility Study Ship Scrapping Final Report 21feb01.doc DET NORSKE VERITAS – APPLEDORE INTERNATIONAL Report No: 2000-3527, rev. 01 FINAL REPORT 4.5 Inland fleet 34 4.5.1 World-wide 34 4.5.2 EU- fleet 35 4.5.2.1 The future of the European waterway fleet 38 4.5.3 Conclusion 39 4.6 Conclusion – all vessel categories 39 5 CURRENT PRACTICE ......................................................................................... 41 5.1 Industry Characteristics 41 5.2 Non-compliance in Current Practice 42 5.2.1 Adopted practices 42 5.2.2 Safety, Health and the Environment 43 5.2.3 Compliance mismatch 46 5.2.4 New Initiatives 46 5.3 Adopting Current Practice in Europe 47 6 MATERIAL COMPOSITION AND RETURN TO MARKET............................... 49 6.1 Background 49 6.1.1 Changes in resource management and policies 49 6.1.2 Changing provisions for ship scrapping 49 6.1.3 Minimising waste – maximising recycling 50 6.2 Material composition and waste streams 50 6.2.1 Material composition complexity 51 6.2.2 Waste streams 52 6.2.3 Material stream – quantities and qualities 53 6.2.3.1 Ferrous scrap metal – Non-ferrous scrap metal 54 6.2.3.2 Machinery 55 6.2.3.3 Electrical and electronic equipment 55 6.2.3.4 Minerals 55 6.2.3.5 Plastics 55 6.2.3.6 Liquids, chemicals and gases 56 6.2.3.7 Joinery related products 57 6.2.3.8 Miscellaneous 57 6.2.4 Waste streams and SHE aspects 59 6.2.4.1 Asbestos 59 6.2.4.2 PCBs 60 6.2.4.3 Radiation sources 61 6.2.4.4 Mercury 61 6.2.4.5 Isocyanates 62 6.2.4.6 Tributyl tin (TBT) 62 6.2.4.7 Lead (Pb) 62 6.2.4.8 Marine growth 62 6.2.4.9 Other waste streams 62 6.2.4.10 Extraction procedures, hazardous substances and SHE-exposure 63 6.2.5 Waste stream summary 67 Page ii Reference to part of this report which may lead to misinterpretation is not permissible. Feasibility Study Ship Scrapping Final Report 21feb01.doc DET NORSKE VERITAS – APPLEDORE INTERNATIONAL Report No: 2000-3527, rev. 01 FINAL REPORT 6.3 Market for product categories from scrapping processes in Europe 68 6.3.1 Re-use, recycling and disposal options 68 6.3.2 Products 69 6.3.3 Markets 69 6.3.3.1 Offshore installations 70 6.3.3.2 Vessels 71 6.3.4 Potential barriers 71 7 SCRAPPING CAPACITY AND FUTURE VOLUMES......................................... 73 7.1 Scrapping Capacity 73 7.2 Future Scrapping Volumes 75 7.3 Vessel Sizes 76 8 SHIP DISPOSAL WITHIN EUROPE .................................................................... 77 8.1 Pre-processing 77 8.2 Ship Dismantling Facility 78 8.2.1 Functionality 79 8.2.2 Operation 81 8.2.3 Description of the Model Facility 83 8.2.4 Production Equipment 84 8.3 Greenfield/ Brownfield Site Alternatives 85 8.3.1 Brownfield Site Development 85 8.3.2 Greenfield Site Development 86 9 ECONOMIC AND COMMERCIAL FACTORS.................................................... 88 9.1 Revenue Streams 88 9.2 Cost Base 89 9.2.1 Dismantling Operational Labour Costs 89 9.2.2 Other Operational Costs 90 9.2.3 Facility Costs 91 9.3 Economics of Ship Dismantling Facility 91 9.4 Ship End-of-Life Value 92 10 REFERENCES....................................................................................................... 93 Appendix A Decommissioning volume - support Appendix B Material and waste stream quantification - support Page iii Reference to part of this report which may lead to misinterpretation is not permissible. Feasibility Study Ship Scrapping Final Report 21feb01.doc DET NORSKE VERITAS – APPLEDORE INTERNATIONAL Report No: 2000-3527, rev. 01 FINAL REPORT 1 SUMMARY AND CONCLUSIONS The study has considered the feasibility of undertaking the procedures associated with the disposal of four vessel categories with respect to technology and economy within Europe, the wider European Economic Area and in neighbouring countries (Eastern Europe and Russia). The four categories are: Offshore structures Merchant global fleet Inland waterway vessels Naval vessels Findings and conclusions are based on assessments including the review of decommissioning and disposal decision factors, type and volume forecast predictions, established procedures, market opportunities, legislative framework and compliance expectations. The report presents disposal forecast results for each vessel category and provides guidance on the potentials and opportunities of undertaking such activity in Europe. Limitations and requirements associated with decommissioning, dismantling and recycling/ re-use in a European context are discussed and recommendations provided. These are supported by background data and details presented in Appendices. Technical constraints and opportunities; From initial findings and volume forecast predictions, it has been shown that: · Disposal policies differ widely between the categories · The majority of vessel scrapping activity relates to merchant vessels (conventional ship scrapping) · Currently this is undertaken almost exclusively outside of Europe · The main scrapping activities take place in India, Bangladesh, Pakistan and increasingly in China · Many aspects of current principles and methods adopted and in use are non-compliant with EU health, safety and environmental legislation and objectives · A considerable scrapping volume (capacity) is processed at non-facilitated sites on beaches rather than at dedicated facilities · An increase in no./ tonnage of vessels
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