ESG emissions reporting and compliance1 April 2021 • 09:00-09:45 BST

#ESG

Part ofMaritime Environmental, Social and Governance

Webinar Week30 March-1 April 2021

Presentation documents:Page 2: Lotten Kronudd, ADS Insight Belgium / ScandinaviaPage 10: Allan Skouboe, Danfoss IXAPage 17: Simon Brown, EMSYSPage 24: Nick Makar, IRI / The Marshall Islands Registry

HOW THE EU IS INCENTIVISING SUSTAINABLE FUELS

LOTTEN KRONUDD

Riviera webinar: ESG emissions reporting and compliance

1 April 2021

• Next MFF (2021-2027):

• Climate: 30%

• Biodiversity: 10%

• Digitalisation

• Recovery and Resilience Facility (RRF):

• Temporary projects, end by 31 December 2024.

• National Recovery and Resilience Plans by 30 April

2021.

• Drafts: the greening of ports (France) and “strengthen,

modernise and digitise shipping as a climate-

friendly means of transport” (Germany).

WHERE WILL THE MONEY GO?

• Horizon Europe - R&I

• Connecting Europe Facility (CEF) –Transport, Energy,

Digital

• Regional funds - Addressing imbalances

• LIFE – Environment and climate action

• Just Transition Fund – For fossil fuel dependent

countries and regions.

• Innovation Fund – Innovative projects close to market

SHOW US THE MONEY!

• Taxonomy: an EU classification system for sustainable

activities

• European Investment Bank (EIB) – the EU’s climate

bank

• New laws:

• FuelEU maritime April 2021

• Alternative Fuels Directive first half of 2021

• “Fit for 55” package due in June 2021

• Revision of TEN-T due end 2021

IS THAT IT?

THANKS

Maintain Ship Emission Compliance and Overview

Presented by Allan Skouboe

CTO, Chief Technical Officer

Riviera Webinar on ESG Emissions Reporting and Compliance, 1st April 2021

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Regulations and how to manage Compliance

MARPOL Annex VI

• Regulation for Air Pollution of Ships

NTC2008 NOx Technical Code

• General Regulation related to NOx

• Current situation:

The maritime air emission regulations are

focusing on what is coming out of the stack of

the ships

• Consequence:

Ship owners and operators need to be in

control of their emissions

• What to do…?

“Measure

emissions”

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CEMS Product Portfolio

MES 1001

NOx and NH3 sensor

MES 1002

SO2/CO2 sensor

EmViz

Emission Visualization

Software

MES1002 - Scrubber application

MES1001 - SCR application

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SCR Application – MES 1001

SCR

NOx NH3

SCR Control

Urea pump

SCR

Urea tank

NOx NH3

Open loop controlled SCR

with emission sensor

Closed loop controlled SCR

with emission sensor

Open loop/closed loop

• Monitor SCR performance

• Monitor ammonia slip/early warning of SCR

maintenance

• Avoid build-up of ABS (Ammonium BiSulfate)

which eventually can foul the stack/boiler

Closed loop

• All of the above + …

• Optimize urea dosing

• Optimize NOx output

• Better transient load response

Note

• NOx Technical Code does not offer on-site

threshold-based compliance monitoring – yet…

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Scrubber Application – MES 1002 (Scrubber CEMS)

Scrubber installation with

MES 1002 Continuous Emission Monitoring

• Sensor measures SO2/CO2 ratio in accordance with

MEPC.259(68)

• Emission must stay below a certain threshold

• Sensor quality and performance is key, as the ship is not

allowed to operate the scrubber without correct readings

• Data must be recorded and stored for at least 18 months

Seawater Inlet

CEMS SO2/CO2MES1002

Scrubber

Seawater Discharge

Relationship between equivalent suplhur content in fuel

and SO2/CO2 ratio

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EmViz – Maintain overview of Compliance

I/F 1

I/F 2

I/F n

On-board computer with interfaces Data CenterGeneral

• Data is collected on board from various sensors

• Satellite link for transfer of data

• Data is stored in a data center on shore

• Data can be accessed from “everywhere”

System features:

• Emission overview per ship or across your fleet

• User defined reports

• Pre-defined ECA zones

• Special overview panel for the crew on board

Interesting fact

• Despite having advocated for EmViz over the past

years market interest has just now picked up

ESG emissions reporting and compliance

What a fit-for-purpose emissions reporting scheme looks like

Simon Brown – Managing Director, Emsys Maritime Ltd

What are the primary reasons to monitor emissions rather than provide estimates based around fuel consumption?

1. Accuracy – Estimation vs. Measurement?

2. Real-World influences – Fuel Types – LNG, NH3, LSHFO

3. GHG’s vs. Pollutants. CO2 and CH4 are greenhouse gases. NOx, SOx, CO and PM are pollutants

A fit for purpose reporting scheme will provide an accurate, reliable and expansive data capture capability which will meet the requirements of both International Regulations (IMO) and Charterers

Corporate reporting needs

Technology

Hardware

There are many types of existing technology that can measure emissions from engines /boilers / incinerators etc…

Decisions regarding technology would be based around reporting requirements, budget, space available, vessel type etc…

Software

Determining required data, specific emissions, mass emissions, external source inputs, plus the possibility of harmonised requirements in the future meaning technology would need to be future-proof

Emissions DataNOx, SOx, CO2, CO,

CH4, PM

Calculated / Manipulated / Normalised Data

Operational DataCargo Onboard

Fuel Type

Regulatory Data Reporting

Charterers/Stakeholder Data Reporting

Performance DataOperational Feedback

Performance DataSpeed, weather, trim

etc

Basic Components of a fit-for purpose ESG reporting system

What are the benefits of real-time emissions measurement?

1. Real-time data – Online optimisation can reduce fuel costs etc…

2. All ships, including sisters are different. Improvements that will be necessary for EEXI and CII can be optimised to meet that specific vessels operational profile

3. Transparency – Charterers CSR requirements will become more detailed, will charter rates be affected?

4. For LNG fuelled vessels, Methane slip may become a negative side-effect, monitoring and correcting engine performance

5. PM and Black Carbon will be next .. Systems must be expandable to cope with new regulations and requirements

1. Totalised emissions reporting – kg’s and tonnes of each pollutant. NOx, SOx, CH4, CO, CO2. Reported into an SQL database and can be exported as a report or as data for inclusion within a separate reporting program

2. Methane slip reporting –instantaneous to allow engine correction if required

3. PM / Smoke Density – Allows reporting of PM for non-IMO regulatory requirements and allows correction of operation when emitting Black-Smoke

4. Specific pollutants – g/kWh – This measurement is particularly useful to optimise and reduce total pollutants and is available for each gas

What technology is currently available & in use?

Thank You!

EMISSIONS

REPORTING AND

COMPLIANCE

Maritime Environmental, Social and Governance Webinar Week – 1 April 2021

Presented by:

Nick MakarSenior Vice President, Maritime Administration / Regulatory Affairs

INTERNATIONAL MARITIME ORGANIZATION (IMO) DATA COLLECTION SCHEME (DCS)

2

• MARPOL Annex VI, Regulation 22A “Collection and Reporting of Fuel

Oil Consumption Data:”

• First reporting period began on 1 January 2019

• Fuel Oil Consumption (by Fuel Oil Type) / Distance Travelled /

Hours Underway

• Statement of Compliance – Fuel Oil Consumption Reporting

• Data anonymized / inform revision of the IMO Initial Strategy

(roadmap)

• Initial observations on compliance:

• Delays with issuing Statements of Compliance (COVID-19)

• Confusion with change of company / change of flag requirements

• Incorrect ship type categorizations

• Report of fuel oil consumption data submitted to the IMO Ship

Fuel Oil Consumption Database for 2019 – MEPC 76/6/1

CARBON INTENSITY INDICATOR (CII)

3

• Part of combined short-term measure

• CII regime:

• Annual operational CII calculated and reported /

mandatory Ship Energy Efficiency Management

Plan (SEEMP) verification – Regulation 22

• Carbon Intensity Rating to improve over time /

incentive and review provision – new Regulation

22B

• Implementation mechanisms (incorporation into

existing International Energy Efficiency certification

framework, coupled with IMO DCS reporting) –

revisions to Chapter 2

• Enforcement mechanisms

• Article 4 of MARPOL (basis for universal

regulation)