Page 17 - European Energy Innovation - autumn 2019 publication
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Autumn 2019 European Energy Innovation   17

                                                SUSTAINABLE SHIPPING

of low sulphur distillates and fuel      the question remains as to why early     feasibility. Conversely, increases in
oil, the so-called Low Sulphur Heavy     worldwide adaptation plans and           refining capacity over the past decade
Fuel Oil (LSHF). Nobody really knows     investment in refining techniques        have slowly decreased the annual
if blended fuels will work properly,     have not been implemented – there        global availability of HFO, which could
or if they might ruin engines: a lot of  might as a consequence be local or       in turn lead to insufficient availability
testing and training is still required,  regional differences in availability,    for a huge fleet of ships equipped
especially since different engine        even though experts suggest that         with scrubbers. Such a situation
sizes, ages and types of use mean        there will be enough compliant fuel      would cause massive economic
that only heavy duty-only operation      for all.                                 disadvantages among those who
will prove their suitability. There is                                            install scrubbers. Currently less
an argument for opting out of the        Scrubbed away by reality?                than five per cent of the global
risk altogether, as it is not yet fully  Scrubber technology removes              fleet of 100,000 ships is equipped
known whether the fuel supplier or       sulphur from the exhaust from the        with scrubbers. This technology
the shipping company will ultimately     combustion of regular heavy fuel         might therefore be thought of as a
be responsible for any consequent        oil, and is therefore an option for      niche product.
damage. Fear of a shortage of a          compliance with the 2020 Global
compliant fuel is creeping down the      Sulphur Cap. Could a major increase      New emission control areas at
aisles of some headquarters, but an      in scrubber installations reduce or      the horizon
estimated 600 refineries globally are    absorb the potential effects of fuel     The designation of new emission
most probably capable of producing       shortages? They might have taken         control areas with a maximum
either a compliant distillate fuel or    some pressure out of the market, but     sulphur limit of 0.1 percent is
LSHF-blends in sufficient quantities     after a steep growth in installations    currently being prepared by China
and, hopefully, quality. Nevertheless,   (especially in 2018), there now seems    and Mexico for their waters, and by
                                         to be limited interest among ship        France for the Mediterranean Sea.
                                         owners. One reason appears to be         It remains to be seen if and when
                                         the unpredictable impacts upon           nitrogen oxides are also addressed.
                                         the marine environment of open           A further consideration is that HFO is
                                         loop scrubbers, which drain a toxic      not usually compatible with the use
                                         mixture of sulphur, heavy metals and     of new selective catalytic reduction
                                         particles into open water. Scientists,   systems (SCR). Furthermore, NOx-
                                         producers, NGOs and authorities          reduction will become mandatory
                                         are debating the short- and long-        for new-built ships in the North and
                                         term consequences of this, while         Baltic seas from 2022, which will
                                         various studies commissioned by          most probably decrease further the
                                         the IMO, national maritime authorities   production of HFO, so making the
                                         in several states, NGOs, as well         installation of scrubbers even less
                                         as the scrubber producers have           interesting for shipping companies.
                                         together indicated wide availability of
                                         adequate discharge facilities for close  Future Fuels
                                         loop or hybrid scrubber systems in       Some major companies consider LNG
                                         many ports throughout the world.         (liquefied natural gas) as a bridge fuel.
                                         Ship owners currently seem to be         Container shipping company MSC
                                         hesitating because of uncertainty        has already ordered eight large ocean
                                         over where and how the final political   going vessels (OGV) ready for dual
                                         decisions are to be made, and what       fuel, and Hapag Lloyd has recently
                                         regulatory framework might be            retrofitted one of its larger ship as
                                         implemented. Indeed, ports or nation     an experiment. More might follow.
                                         states, the EU, or even the IMO might    Some cruise companies such as
                                         even ban scrubbers altogether. Just      AIDA, Costa, MSC and others already
                                         recently, China announced that it is to  have LNG-ships in operation or are
                                         ban the use of open loop scrubbers       awaiting delivery from shipyards.
                                         within its 12 mile zone (DECA) from      More than 30 will be sailing by 2025.
                                         2020 onwards. Additional energy
                                         demand and operation supervision         However, the overall climate impacts
                                         might also affect the economics          of LNG are difficult to assess because
                                         of scrubbers and so their business       of the methane emissions that arise

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