Application of Exhaust Gas Cleaning

Technology for the Great Lakes

Green Marine Green Tech Conference

May 31, 2013

Regulatory framework

Scrubber overview

Great Lakes considerations

Application to Algoma Equinox Class vessels

Agenda

Marbulk Canada

Inc.

/ Marbulk

Shipping

4 foreign flag

self-unloaders

(50% owned)

Algoma

Central

Properties

Inc.

Properties in

Sault Ste.

Marie, St.

Catharines,

Waterloo

Algoma

Shipping Ltd.

2 foreign flag

self-unloaders &

3 bulkers (on

Bareboat

Charter to Dry-

bulk)

Algoma

Ship Repair

Vessel

refurbishm

ent and

steel

fabrication

Algoma

Tankers

Limited

7

domestic

tankers

Algoma Dry-

Bulk

26 vessels

plus 6

Equinox

Class & 2

CWB Equinox

Class on

order

Algoma Central

Corporation

3

Domestic

Dry-Bulk

Product

Tankers

Ocean

Shipping

Real

Estate

Algoma

Tankers

International

Inc.

1 foreign

flag tanker

Coastal Emission Control Area (ECA) August 1, 2012

Great Lakes regulated as an ECA under Canadian & US rules

Domestic Fleets

US rule contains waivers and exemptions

Canadian regulation contains an alternative compliance method, Fleet Averaging.

Regulatory Framework

Available to Canadian vessels operating exclusively in

the GLSLR

Annual average fuel sulphur limit for a fleet

Declines from 1.5% in 2012 to 0.1% in 2020

Elements:

Fuel sulphur management

Efficiency adjustments (new vessels and engines)

Scrubbers or other technology

Cumulative averaging

Fleet Averaging

Preparing to install 25MW

Hybrid Scrubber –

Sembawang April 2013

Factors in Choosing A

Scrubber System for The

Great Lakes

Sulphur reduction versus water pH

10 03 June 2013

SO

2 r

ed

ucti

on

100%

0% pH

50%

14

8

Chemistry:

Alkalinity is typically less than half that

of typical sea water (130mg/l)

Chlorides are at very low levels,

reducing system corrosion problems

Containerships VII SOx measurements •Fuel sulphur content 1.84 %.

•Measurement by ackredited third party 2.12.2011.

13 © Wärtsilä This document is the property of Wärtsilä Corporation and shall not be copied or reproduced without the consent of the owner.

EGCS EQUINOX

Vessel equipped with exhaust gas scrubber which allows the use of cheaper HFO

Scrubbers remove 97% of sulphur & 65% of particulate matter.

Scrubber is a “Closed” type and designed for use in fresh water.

The only visible emission will be steam.

Exhaust gases from Main Engine, Auxiliary Engines and Thermal Oil Heater will be cleaned by scrubber

Lake water make-up for bleed and evaporation

Effluent is treated

Sludge disposed to shore

EGCS EQUINOX

1. Alkali

2. System water

3. Exhaust stream

4. Scrubber Unit

5. Effluent Control

EGCS - EQUINOX

ALKALI

Sodium Hydroxide - 50% solution available.

Corrosive and reactive.

Can be stored in carbon steel tank.

Storage is ship specific.

Specific gravity 1.52

Freezing is an issue

Exothermic reaction

Bunkering precautions

EGCS - EQUINOX

System Water

Temperature Control required

Bleed-off and top-up

Monitoring system

EGCS - EQUINOX

Exhaust gas stream

Main and auxiliary sources

Temperature effect

Pressure control

Pipe routing

EGCS - EQUINOX

Scrubber Unit

- Corrosive resistant material

- Dimensioned to suit usage

- Internal arrangement

EGCS - EQUINOX

EGCS - EQUINOX

Effluent control

Buffer tank

Water treatment

Monitoring

Discharge overboard