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ABS Advisory on Marine Fuel

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ABS Advisory on Marine Fuel MARINE FUEL OIL ADVISORY AUGUST 2021 ABS | MARINE FUEL OIL ADVISORY 2021 | i © Alex Kolokythas/Shutterstock —— TABLE OF CONTENTS INTRODUCTION ..........................................................................................................................................................................................................................................................................................1 TERMINOLOGY ............................................................................................................................................................................................................................................................................................2 BACKGROUND .............................................................................................................................................................................................................................................................................................3 SECTION 1 – INTERNATIONAL REQUIREMENTS ............................................................................................................................................................................................4 SECAs and ECAs ...............................................................................................................................................................................................................................................................................5 Bunker Delivery Notes and Sampling ..................................................................................................................................................................................................................6 SECTION 2 – REGIONAL, NATIONAL AND LOCAL REQUIREMENTS ..............................................................................................................................10 EU In-port Regulations ........................................................................................................................................................................................................................................................10 EU Commission Decision on LNG Carriers .................................................................................................................................................................................................10 United States Regulations ................................................................................................................................................................................................................................................10 California Air Resources Board (CARB) Regulations ........................................................................................................................................................................11 California At-Berth Ocean-Going Vessels Regulation ....................................................................................................................................................................13 The People’s Republic of China Regulations ..............................................................................................................................................................................................14 Hong Kong Special Administrative Region of the PRC Regulations ............................................................................................................................15 SECTION 3 – MARINE FUELS ..................................................................................................................................................................................................................................................16 Fuel Standards .................................................................................................................................................................................................................................................................................16 Fuel Types ..............................................................................................................................................................................................................................................................................................17 Distillate Type Ultra-Low Sulfur Fuel Oil (ULSFO-DM) And Distillate Type Very Low Sulfur Fuel Oil (VLSFO-DM) ........................................................................................................................................................................................18 Residual Type Ultra-Low Sulfur Fuel Oil (ULSFO-RM) ...........................................................................................................................................................18 Residual Type Very Low Sulfur Fuel Oil (VLSFO-RM) ..............................................................................................................................................................19 Biofuels ..............................................................................................................................................................................................................................................................................................19 SECTION 4 – 2020 FUEL CONSIDERATIONS AND IMPACT ON OPERATIONS ...................................................................................................19 Compliance Options .................................................................................................................................................................................................................................................................19 Key Considerations Of Very Low Sulfur Fuel Oil (VLSFO-RM) ..........................................................................................................................................20 Operational Challenges of 2020 Sulfur Cap ...............................................................................................................................................................................................23 Owner and Operator Preparations for 2020 ...............................................................................................................................................................................................24 Impact on Ship Design .........................................................................................................................................................................................................................................................25 Lessons Learned from Using VLSFO/ULSFO Since 2020 .............................................................................................................................................................26 Recommendations .....................................................................................................................................................................................................................................................................29 SECTION 5 – FUEL SWITCHING ........................................................................................................................................................................................................................................30 Fuel Switching Considerations ..................................................................................................................................................................................................................................30 Fuel Switching Requirements .....................................................................................................................................................................................................................................32 Fuel Switching Procedures .............................................................................................................................................................................................................................................32 Diesel Engines .................................................................................................................................................................................................................................................................................34 Boilers .......................................................................................................................................................................................................................................................................................................38 APPENDIX 1 – FUEL OIL MANAGEMENT PLAN ..............................................................................................................................................................................................41 LIST OF ACRONYMS ..........................................................................................................................................................................................................................................................................41 Disclaimer: While ABS uses reasonable efforts to accurately describe and update
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