18th DNVGL Technology Week Alternative Maritime fuels & Air Emission Compliance Anthony Teo 1 DNV GL © SAFER, SMARTER, GREENER Agenda 1. Introduction – The regulatory “game changers” – What are the ship fuels in 2020 – Alternative fuels and technologies 2. Rules for Alternative fuels 3. Some thoughts on – CO2 impact – fuel prices – Fuel availability – SOx, NOx, PM emissions 4. Summary 2 DNV GL © The 0.5 % sulphur limit is a potential “game changer” 3 DNV GL © The Initial Green House Gas (GHG) Strategy (MEPC.304(72)) also is a potential “game changer” 940 Mio t/a 705 Mio t/a -50%=470 Mio t/a 470 Mio t/a 4 DNV GL © How will ship propulsion power look like in the future? Sails Wind supported ship propulsion Coal Heavy Fuel Oil steam engines Heavy Fuel Oil Diesel engines Destillates as ship fuel LNG for LNG Carriers LNG for all ship types Liquid and gas fuels from H2 and CO2 1820 1850 1900 1950 2000 2020 2050 2100 DNV GL ETO: 50% 2020 fossil fuels in 2050 ▪ “Paris Agreement”, 2015-12-12 UN’s climate science panel says net zero emissions must happen by 2070 to avoid dangerous warming.; IMO ambition to reduce GHG emission by 50% within 2050 (April 2018) ▪ Until now there are no taxes on ship fuel. 5 DNV GL © Shipping becomes greener and more complex - Regulatory timeline towards 2030 - Source: ASSESSMENT OF SELECTED ALTERNATIVE FUELS AND TECHNOLOGIES; DNV GL April 2018 6 DNV GL © Some environmental challenges for shipping today and in future ▪ Reduce CO2 footprint – IMO GHG Strategy (MEPC.304(72)) Selected items from regulatory timeline towards 2020 – MRV/IMO DCS start of permanent public monitoring of ship efficiency – EEDI pressure to improve ship efficiency ▪ Reduce SOx, Nox, PM emissions – ECA and ECA like areas pressure to reduce ship emissions – SO2 0.5% limit – Pressure on high sulphur HFO as ship fuel – opens the way for new technologies in shipping ▪ Added values must justify higher investments 7 DNV GL © The 2020 0.5% S effect on global bunker demand 2020 ▪ LNG will not play a major role ▪ Distillates and LSHFO will take the role of LNG high sulphur HFO ▪ High S HFO will drop Distillates dramatically Distillates/blend ▪ Development beyond 2020 is uncertain LSHFO HFO (Scrubber) One possible global bunker demand 8 DNV GL © Are we prepared? ? 9 DNV GL © DNV GL information on alternative fuels in the www - Link to DNV GL AFI platform and alternative fuel white paper - ▪ Alternative Fuels Insight - AFI portal: www.dnvgl.com/afi – The content of the white paper will be provided and maintained on our web platform ▪ White paper alternative fuels and technologies www.dnvgl.com/alternative-fuel ▪ Overview alternative fuels: https://www.dnvgl.com/maritime/alternative-fuels-and- technologies-in-shipping/index.html 10 DNV GL © Alternative Fuels Insight 11 DNV GL © Alternative Fuels Insight (AFI) The maritime industry knowledge hub for alternative fuels ▪ A freely available platform on alternative fuels and technologies ▪ Interactive map and statistics with current status on ship uptake and bunkering infrastructure ▪ Fuel Finder lets ship owners connect with suppliers of alternative fuels for specific projects ▪ Encyclopedia with environmental, technical and financial information on a wide range of fuels and technologies ▪ Alternative fuels benchmarking tool to compare financial performance of alternative fuels for a specific project AFI enables users to navigate a constantly changing landscape on alternative fuels through comprehensive, up to date and objective information 12 DNV GL © What can be realistic alternatives for the years to come ▪ Fuels – Bio Fuels (and PtG, PtL fuels) – Hydrogen – LNG – LPG – Methanol ▪ Technologies – Batteries – Fuel Cells Summary: 12 pages Full paper: 40 pages – Wind assisted propulsion Download: www.dnvgl.com/alternative-fuel Or look at AFI portal: Encyclopaedia 13 DNV GL © 2 pages brief information for discussed fuels and technology in the full version ▪ General ▪ Price ▪ Infrastructure ▪ Regulations ▪ Availability ▪ Environmental impact ▪ Technology ▪ CAPEX ▪ OPEX Common structure of content for all fuels and technologies 14 DNV GL © Total number of ships (in operation and on order) 15 DNV GL © LNG- CH4 16 DNV GL © LNG offers environmental performance superior to any other feasible marine fuel LNG Fuel: ▪ Clean burning engines ▪ No fuel heating NOx: 80 to 90% ▪ No Separators SOx: 100 % ▪ Less filtration ▪ Less oil pollution risk ▪ Lower fuel cost ▪ Attractive payback ▪ Simplicity and proven technology CO2: 20 to 25% PM: 100 % DNV GL © LNG as Fuel 18 DNV GL © There are currently 265 confirmed LNG fuelled ships, and 131 additional LNG ready ships 19 DNV GL © LNG fuelled fleet by vessel type 20 DNV GL © Area of operation for LNG fuelled ships In operation On order 21 DNV GL © All gas engine concepts are in use for ship propulsion In operation On order 22 DNV GL © PERFECt 23 DNV GL © Batteries 24 DNV GL © Total number of ships with batteries DNV GL © Number of ships with batteries by ship type DNV GL © Battery application and area of operation Battery application Area of operation DNV GL © Newbuild or retrofit? DNV GL © Newbuild or retrofit? 70 60 50 40 30 Retrofit Number Number of ships 20 Newbuild 10 0 DNV GL © Technology Propulsion Other NB! Figure indicative as not all projects state if they are plug-in or not DNV GL © Which batteries are being used? DNV GL © AIS-positions of ships with batteries 32 DNV GL © Fuel Cells 34 DNV GL © Fuel Cell Technology Output: ▪ Electricity ▪ Water ▪ Heat ▪ CO2 (only with fuels having C atoms) DNV GL © Technology Overview Complexity of Fuel Cell SYSTEMS Exhaust Fuel Storage Air / O 2 Consumer Heat Battery Fuel Processing (Reformation) Consumer Electricity To be integrated onboard 36 DNV GL © Technology overview- Fuel Cells types Electro-galvanic fuel cell (EgFC) Alkaline fuel cell (AFC) Molten carbonate fuel cell (MCFC) Regenerative fuel cell (RegFC) Enzymatic Biofuel Cells (EnzFC) Direct borohydride fuel cell Phosphoric acid fuel cell (PAFC) RFC – Redox Magnesium-Air Fuel Cell (Mg- (DBFC) Solid oxide fuel cell (SOFC) Solid acid fuel cell (SAFC) AFC) Direct carbon fuel cell (DCFC) PEMFC Upflow microbial fuel cell (UMFC) Metal hydride fuel cell (MHFC) Direct formic acid fuel High Temperature PEM Zinc-air battery Protonic ceramic fuel cell (PCFC) cell (DFAFC) Reformed methanol FC (R-MFC) Microbial fuel cell (MFC) Direct methanol fuel cell (DMFC) Direct-ethanol fuel cell (DEFC)Maturity and Relevance Molten Solid Oxide Phosphoric HT PEM Alkaline PEM fuel Direct Carbonate Fuel Cell Acid FC fuel cell fuel cell cell Methanol FC FC Tolerance for cycling Lifetime Safety aspects Physical size Flexibility towards type of fuel Efficiency Emissions Sensitivity for fuel impurities Relative cost Modular power levels (kW) Technological maturity 37 DNV GL © Maritime FC- Developments ▪ Start with first maritime FC applications in the early 2000 ▪ Mostly based on European and US development programmes ▪ Technology readiness was proven: Maritime Fuel Cell Project Time table SOFC and PEMFC Technology are most promising for maritime ▪ Recent development projects focusing on a common rule frame work for maritime Fuel Cells 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 38 DNV GL © Maritime FC- Noteable Projects Zero/V - Hydrogen Fuel-Cell Coastal Research Vessel Sandia partnered with the Scripps Institution of Oceanography, the naval architect firm Glosten and the class society DNV GL to assess the technical, regulatory and economic feasibility of a hydrogen fuel-cell coastal research vessel. Report published on 7th May- http://energy.sandia.gov/transportation- energy/hydrogen/market-transformation/maritime-fuel-cells/ 39 DNV GL © e4ships-Fuel cells for Marine Applications The Pa-X-ell project is developing a fuel cell ( methanol) module which is to be tested on a cruise ship, where it will provide decentralised generation of heat and power. The SchIBZ (which stands for ‘ship integration fuel cell’ in German) is developing a seagoing fuel cell system with onboard diesel reformer, which will be tested in everyday operation on the high seas. 50 kW demonstrator plant built up Aggregate layout 40 DNV GL © DNV GL internal use only Benefits and Efficiency ▪ At optimal load, the fuel cell stacks have an electric efficiency of 50-55 % ▪ Compared with state-of-the-art marine diesel generators are just above 40 %. New ones claim 45%. ▪ Reduced noise and vibrations, improving comfort for crew and passengers ▪ Fewer moving parts lead to a reduction in maintenance ▪ Cleaner Emissions (Zero when H2 is used) DNV GL © Methanol- CH3OH 42 DNV GL © Methanol CH3OH - Properties ▪ Low flash point liquid = 12 degree C (LNG = -188 degree C) – Liquid at room temperature but has tendency to evaporate above flash point. Methanol vapour is more dense than air ▪ Self ignition point = + 465 degree C (LNG = 595 degree C) ▪ Toxic when it comes into contact with the skin or when inhaled or ingested ▪ Density about 0.78 t/m3 ▪ Low risk IMO class III chemical, can be carried on easiest chemical carriers/ no need for double hull (at present). ▪ Heat value about 50% of LNG = need twice as much volume! 43 DNV GL © Alternative fuels - parameters Fuel type LNG Ethane Methanol LPG Heat capacity 49200 kJ/kg 47500 kJ/kg 20000 kJ/kg 46000 kJ/kg Specific Gravity 0.42 0.55 0.80 0.58 Volume factor (ref. MDO) 1.83 1.47 2.40 1.44 FGSS cost 2.5 mill.USD 2.8 mill.USD 0.41 mill.USD 0.90 mill.USD 15 MW Availability + - + +++ Engine price +20 % + 20% +30% +30% Fuel Price ++ +++ + ++ (ref. MGO) Source: MAN DNV GL © Methanol: Engine technology ▪ Fuel – Methanol is an excellent fuel for internal combustion engines – Methanol burns very cleanly with low NOx and particulate (soot) emissions and contributes to reduced emissions when mixed with typical fuels.