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Monday, 14 July 14
THE END OF THE ERA OF HEAVY FUEL OIL IN MARITIME SHIPPING - ICCT
 KNOWLEDGE TO ELEVATE
Since the 1960s, heavy fuel oil (HFO) has been the king of marine fuels. Viscous, dirty, yet inexpensive and widely available, HFO propelled a long period of robust growth in international shipping, which carries over 90% of intercontinental trade by volume each year. For many, it is the lifeblood of the maritime shipping industry.
But HFO’s low price does not reflect its impacts on the environment and human health. The sulfur content of HFO can be up to 35,000 parts per million. It is the reason that maritime shipping accounts for 8% of global emissions of sulfur dioxide (SO2), making the industry an important source for acid rain as well as respiratory diseases. In some populous port cities, such as Hong Kong, shipping is the largest single source of SO2 emissions as well as emissions of particulate matter (PM), which are directly tied to the sulfur content of fuel. By one estimate, PM emissions from maritime shipping led to 87,000 premature deaths worldwide in 2012.
The International Maritime Organization (IMO), the governing body of international shipping, has made a decisive effort to diversify the industry away from HFO into cleaner fuels with less harmful effects on the environment and human health. Effective in 2015, ships operated within the Emission Control Areas (ECAs) covering the Economic Exclusive Zone of North America, the Baltic Sea, the North Sea, and the English Channel will begin to use Marine Gas Oil (MGO) with allowable sulfur content up to 1,000 ppm. Starting from 2020, ships sailing outside ECAs will switch to Marine Diesel Oil (MDO) with permitted sulfur content up to 5,000 ppm.*
That tectonic shift also creates openings for a variety of new fuels. Liquefied nature gas (LNG), newly abundant and relatively affordable, is attracting the attention of many shipping companies. Although the lack of infrastructure and the uncertainty of future prices have slowed the “dash to gas,” many expect LNG to establish itself as one of major alternatives to HFO in the future. Lloyds Registry, a shipping classification society, expects LNG to take 11% of the market share in 2030.
Meanwhile, Stena Teknik, a Swedish company, is testing methanol, another natural gas product, but one that requires less storage space in a ship and is relatively easier to handle. While natural gas-based fuels may sometimes offer questionable climate benefits, due to methane leakage concerns, the IMO’s low-sulfur regulation may create needed openings for other zero-sulfur, low-carbon marine fuels. Tests using fuel cells on the Viking Lady, an offshore supply ship, demonstrated promising results.
Wind kites and solar panels have already been installed on numerous ships to supplement marine diesel engines. Even HFO will not completely disappear from the menu of marine fuels. Combined with scrubbers that capture more than 99% of the sulfur from the exhaust gas, HFO will continue to play an important role. Lloyds Registry reckons that HFO will represent about 40% of fuel use by 2030.
The shift to cleaner but pricier low-sulfur fuels is likely to heighten interest in the “fifth fuel”: energy efficiency. Historically, the maritime shipping industry, where energy often accounts for over half of operating costs, has responded to escalating fuel prices with innovative energy-saving strategies. To cite a recent example: in 2008, as fuel prices went through the roof, shipping lines cut their operating speeds by as much as 50%, helping many companies stay afloat amid one of the worst downturns in history. In an analysis of satellite data on ship operations, we’ve estimated that the industry can further slash 100 million ton of fuel use by 2030 through wider implementation of energy-saving measures that were adopted by industry leaders in 2011.
This is in addition to savings of 90 million tons of fuel because of the Energy Efficiency Design Index (EEDI), a mandatory program that will require new ships to achieve certain efficiency targets beginning in 2015.
The continued diversification of marine fuels and improvements in energy efficiency have important implications. First and foremost, they may alleviate concerns about the availability of low-sulfur fuels. Figure 1 illustrates one possible scenario, using our forecast on future marine fuel consumption and energy efficiency improvements as well as Lloyds Registry’s estimate of market shares for HFO and LNG. The efficiency improvement of the legacy fleet is the greatest force driving down the need for low-sulfur fuels, equivalent to adding about 110 “negatons” of fuel, or almost 24% of projected demand. HFO combined with scrubbers, EEDI, and distillates (MGO plus MDO) are almost neck and neck, each representing about 20% of fuel use in the chart. LNG is coming of age, with its share doubling between 2020 and 2030. Other fuels, such as renewables, fuel cells, and biofuels, are expected to hold only small market shares in 2030.
Second, the new fuels are on a collision course with IMO safety regulations concerning flashpoint, the temperature at which a fuel can vaporize to form an ignitable mixture in air.
The IMO currently requires marine fuels to have a minimum flashpoint of 60°C. But low-sulfur fuels have a lower flashpoint (50° to 55°C), meaning that they are “off-spec” and cannot be used under the IMO rule. The flashpoint requirement, which went into effect in 1976, was meant to provide a large margin of error to ensure the temperature of the engine room (normally below 45°C) does not exceed the flashpoint in any circumstance. But according to industry heavyweights such as Maersk and BIMCO, modern technologies such as advanced ventilation systems provide an adequate safety margin, and they argue that keeping the flashpoint requirement will cause the industry to miss the opportunity represented by the increased availability of low-sulfur, low-flashpoint fuels. Industry and member states such as the U.S. are urging the IMO to accelerate its consideration of an amendment to the flashpoint requirement.
By: Haifeng Wang / The International Council of Clean Transportation
*Implementation of the requirement is subject to a review of fuel availability to be completed by 2016.
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Thursday, 10 July 14
SGX EXPANDS ACROSS THE BULKS WITH NEW COAL PRODUCTS
COALspot.com: Singapore Exchange (SGX) is expanding its bulk commodity derivatives offering by launching new coking and thermal coal products on 4 ...
Thursday, 10 July 14
HANDY: SMALL INCREASE; PANAMAX: POSITIVE TONE; CAPESIZE: PAPER VALUES REMAIN WEEK
Handy
It is a general increase in activity in both hemispheres whereas rates have just experienced a small increase. In the Feast we see stable a ...
Wednesday, 09 July 14
SHIP INVESTMENTS ARE TRENDING LOWER
Most ship owners are deeming current ship prices on the high side, refraining from making serious commitments in new acquisitions or newbuilding or ...
Wednesday, 09 July 14
INDIAN GOVERNMENT ADVISED POWER UTILITIES TO INCREASE COAL IMPORTS
COALspot.com: The government of India has advised power utilities to increase coal imports to meet fuel shortages and those that have fuel supply p ...
Wednesday, 09 July 14
PANAMAX MARKET FINALLY CORRECTING UPWARDS; AVERAGE TC MORE THAN DOUBLING WEEK ON WEEK - INTERMODAL
The Dry Bulk market has closed off on Friday on a more positive note, with most segments noting weekly gains and the Panamax market finally correct ...
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Showing 3611 to 3615 news of total 6871 |
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- Mjunction Services Limited - India
- Bharathi Cement Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- Thiess Contractors Indonesia
- Renaissance Capital - South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indika Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- VISA Power Limited - India
- Bhatia International Limited - India
- Tamil Nadu electricity Board
- Leighton Contractors Pty Ltd - Australia
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Energy Development Corp, Philippines
- Salva Resources Pvt Ltd - India
- Planning Commission, India
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Baramulti Group, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Energy Link Ltd, New Zealand
- PNOC Exploration Corporation - Philippines
- Tata Chemicals Ltd - India
- Riau Bara Harum - Indonesia
- CNBM International Corporation - China
- Aditya Birla Group - India
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Latin American Coal - Colombia
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- Uttam Galva Steels Limited - India
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Madhucon Powers Ltd - India
- Savvy Resources Ltd - HongKong
- PowerSource Philippines DevCo
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
- Price Waterhouse Coopers - Russia
- Oldendorff Carriers - Singapore
- Timah Investasi Mineral - Indoneisa
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
- Siam City Cement - Thailand
- Kepco SPC Power Corporation, Philippines
- Videocon Industries ltd - India
- McConnell Dowell - Australia
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMC Global Power, Philippines
- Electricity Generating Authority of Thailand
- Deloitte Consulting - India
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- Posco Energy - South Korea
- Rashtriya Ispat Nigam Limited - India
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
- TeaM Sual Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Anglo American - United Kingdom
- White Energy Company Limited
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Karaikal Port Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhoruka Overseas - Indonesia
- Binh Thuan Hamico - Vietnam
- Semirara Mining Corp, Philippines
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- Australian Coal Association
- Indian Energy Exchange, India
- PetroVietnam Power Coal Import and Supply Company
- Bulk Trading Sa - Switzerland
- Cigading International Bulk Terminal - Indonesia
- Carbofer General Trading SA - India
- Xindia Steels Limited - India
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- IEA Clean Coal Centre - UK
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Coalindo Energy - Indonesia
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Vizag Seaport Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Mintek Dendrill Indonesia
- GVK Power & Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- Siam City Cement PLC, Thailand
- The University of Queensland
- Cement Manufacturers Association - India
- Wilmar Investment Holdings
- Coal and Oil Company - UAE
- Trasteel International SA, Italy
- Edison Trading Spa - Italy
- Jaiprakash Power Ventures ltd
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- London Commodity Brokers - England
- Kalimantan Lumbung Energi - Indonesia
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- Alfred C Toepfer International GmbH - Germany
- Kobexindo Tractors - Indoneisa
- Interocean Group of Companies - India
- Makarim & Taira - Indonesia
- The State Trading Corporation of India Ltd
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Africa Commodities Group - South Africa
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- European Bulk Services B.V. - Netherlands
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Ambuja Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- ASAPP Information Group - India
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Barasentosa Lestari - Indonesia
- Economic Council, Georgia
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Thai Mozambique Logistica
- SN Aboitiz Power Inc, Philippines
- Standard Chartered Bank - UAE
- Bayan Resources Tbk. - Indonesia
- GAC Shipping (India) Pvt Ltd
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
- Therma Luzon, Inc, Philippines
- Simpson Spence & Young - Indonesia
- Meenaskhi Energy Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vedanta Resources Plc - India
- Petron Corporation, Philippines
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Medco Energi Mining Internasional
- Rio Tinto Coal - Australia
- Kumho Petrochemical, South Korea
- Orica Australia Pty. Ltd.
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Eastern Energy - Thailand
- Semirara Mining and Power Corporation, Philippines
- Mercator Lines Limited - India
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- Independent Power Producers Association of India
- Bukit Baiduri Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Ceylon Electricity Board - Sri Lanka
- OPG Power Generation Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- Aboitiz Power Corporation - Philippines
- Orica Mining Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Kideco Jaya Agung - Indonesia
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