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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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Wednesday, 25 June 14
INDONESIAN COAL EXPORTS ON RISE; EARNINGS FALL ON LOWER SELLING PRICES
COALspot.com: Indonesia, one of the world's largest coal producer and the global largest multi grade coal exporter shipped around $1.84* ...
Wednesday, 25 June 14
THE PANAMAX MARKET REACHED FRESH LOWS FOR THE YEAR, SAYS INTERMODAL
COALspot.com: The Dry Bulk market closed off the week noting a slight decrease, but this image of stability is merely representative of freight rat ...
Wednesday, 25 June 14
SHIPPING: MARKET INSIGHT - YANNIS OLZIERSKY
During his recent visit in London, China's Premier, Li Keqiang, announced that China's economy, the world's second largest after the US ...
Tuesday, 24 June 14
INDONESIAN COAL MINER TARGETS RP 313 BILLION IPO
COALspot.com: Indonesian coal miner PT Mitrabara Adiperdana is aiming to raise up to Rp 313 billion to Rp 368 billion (approximately $26.133 millio ...
Monday, 23 June 14
INDONESIAN COAL SWAP FOR Q3 DELIVERY LOST 8.60% Y-O-Y;4.80% M-O-M
COALspot.com: Indonesian coal swaps for average Q3’ 2014 lost on day, week and on month according to AsiaClear OTC coal swap's reports re ...
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- Metalloyd Limited - United Kingdom
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Mintek Dendrill Indonesia
- Singapore Mercantile Exchange
- Tata Chemicals Ltd - India
- Sindya Power Generating Company Private Ltd
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Bhatia International Limited - India
- Grasim Industreis Ltd - India
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Makarim & Taira - Indonesia
- GMR Energy Limited - India
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- Karaikal Port Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Borneo Indobara - Indonesia
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- Renaissance Capital - South Africa
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- Orica Australia Pty. Ltd.
- Electricity Generating Authority of Thailand
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Kartika Selabumi Mining - Indonesia
- Ambuja Cements Ltd - India
- Malabar Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Economic Council, Georgia
- Merrill Lynch Commodities Europe
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Indian Oil Corporation Limited
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Videocon Industries ltd - India
- Salva Resources Pvt Ltd - India
- Siam City Cement - Thailand
- Latin American Coal - Colombia
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- PTC India Limited - India
- Globalindo Alam Lestari - Indonesia
- Marubeni Corporation - India
- Dalmia Cement Bharat India
- Planning Commission, India
- White Energy Company Limited
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Sarangani Energy Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- Agrawal Coal Company - India
- CNBM International Corporation - China
- Global Coal Blending Company Limited - Australia
- Price Waterhouse Coopers - Russia
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Kideco Jaya Agung - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indogreen Group - Indonesia
- SMG Consultants - Indonesia
- The Treasury - Australian Government
- Simpson Spence & Young - Indonesia
- Binh Thuan Hamico - Vietnam
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- Bangladesh Power Developement Board
- Maharashtra Electricity Regulatory Commission - India
- Bhushan Steel Limited - India
- Holcim Trading Pte Ltd - Singapore
- Essar Steel Hazira Ltd - India
- Kaltim Prima Coal - Indonesia
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- Riau Bara Harum - Indonesia
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Therma Luzon, Inc, Philippines
- SN Aboitiz Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- Minerals Council of Australia
- Wood Mackenzie - Singapore
- New Zealand Coal & Carbon
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Sidhee Cement - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Standard Chartered Bank - UAE
- Iligan Light & Power Inc, Philippines
- Oldendorff Carriers - Singapore
- Attock Cement Pakistan Limited
- Xindia Steels Limited - India
- Global Business Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Coal and Oil Company - UAE
- Vizag Seaport Private Limited - India
- Ministry of Finance - Indonesia
- Larsen & Toubro Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Banpu Public Company Limited - Thailand
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Edison Trading Spa - Italy
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- MS Steel International - UAE
- LBH Netherlands Bv - Netherlands
- GAC Shipping (India) Pvt Ltd
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- McConnell Dowell - Australia
- Ministry of Mines - Canada
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- Madhucon Powers Ltd - India
- Maheswari Brothers Coal Limited - India
- Sojitz Corporation - Japan
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Tamil Nadu electricity Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ind-Barath Power Infra Limited - India
- Commonwealth Bank - Australia
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Energy Exchange, India
- Kobexindo Tractors - Indoneisa
- Deloitte Consulting - India
- Asmin Koalindo Tuhup - Indonesia
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- Manunggal Multi Energi - Indonesia
- ASAPP Information Group - India
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- Bharathi Cement Corporation - India
- Port Waratah Coal Services - Australia
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Miang Besar Coal Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Sical Logistics Limited - India
- IHS Mccloskey Coal Group - USA
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Gujarat Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Australian Commodity Traders Exchange
- Rio Tinto Coal - Australia
- Sree Jayajothi Cements Limited - India
- Ministry of Transport, Egypt
- AsiaOL BioFuels Corp., Philippines
- Vijayanagar Sugar Pvt Ltd - India
- VISA Power Limited - India
- Interocean Group of Companies - India
- Pendopo Energi Batubara - Indonesia
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- Medco Energi Mining Internasional
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Toyota Tsusho Corporation, Japan
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