As we look at, and try to understand, all the future fuel options, there is one particular fuel that has caught my attention. It is sulphur free, has low emissions, perhaps three to four times cheaper than marine distillate fuel, probably lower in price than LNG, a more beneficial fuel factor for the EEDI than LNG or diesel, it is non cryogenic and is already in widespread production (~50 million tonnes per annum) for a multitude of uses, including combustion. It has great potential for a much higher production and a distribution infrastructure more easily established than LNG.
IMO MEPC 64 Decisions Summary
The IMO MEPC held its 64th Session at IMO from Monday 1 through Friday 5 October with a high attendance of about 900 delegates. A Review Group on Ballast Water matters was formed together with 3 Working Groups on the subjects of Ship Recycling, Technical Co-Operation and Transfer of Technology, also Air Pollution and Energy Efficiency. In addition, 2 Drafting Groups studied Amendments to the IBC Code and Interpretations/Reports of sub-committees. Finally, an informal Technical Group met out-of-hours to report on the Saba Bank PSSA. The next MEPC meeting is scheduled during May 2013.
North American ECA Related Deficiencies
Last August the North America ECA low sulphur requirements came into force and as a result the sulfur content of the fuel oil used onboard ships operating in this area may not exceed 1.00% m/m (10,000 ppm). This new requirement comes to add further restrictions on the fuels’ sulphur levels and gives the PSCO the ability to examine either the vessel’s SMS or its equipment or relevant records on whether or not they are in line with ECA regulations.
Vessel Detained Due to Incompliant ECA Fuel
The UK P&I released a bulletin today regarding a vessel which was detained for breaching the North Sea SECA regulations despite receiving bunkers which appeared, according to the bunker delivery note, of being within the required limits.
EU Approved Legislation Regarding Low Sulphur Fuel
Stricter limits on the sulphur content of shipping fuels are set to improve air quality along European coastlines and reduce the estimated 50,000 premature deaths caused each year by air pollution from ships. EU parliament today approved legislation agreed with member states, which requires new general limits to be in place by 2020.
Low Sulfur Demand Rises Up in North American ECA
Demand for low sulfur bunkers in the U.S. has risen to as much as 50% of the total U.S. market since the August 1, 2012 introduction of the North American Emissions Control Area (ECA), according to a Platts Podcast. All ships operating within the ECA, effectively a 200 nautical mile zone off the U.S. and Canada coastlines, must use a marine fuel with a sulfur content not exceeding 1.00% by weight.
CARB Marine Notice on OGV Fuel Regulation
Last week CARB released a marine notice regarding upcoming requirements in the Fuel Sulfur Regulation and Other Operational Requirements for Ocean-Going Vessels within California Waters and 24 Nautical Miles of the California Baseline (California OGV Fuel Regulation).