maersk pilot fuel switch initiative - west coast collaborative

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2 April 2008 Lee Kindberg Director, Environment Maersk Pilot Fuel Switch Initiative jai

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2 April 2008Lee KindbergDirector, Environment

Maersk Pilot Fuel Switch Initiative

jai

26 Oct 2007NAM HSEQ

PAGE 2

Maersk Pilot Fuel Switch Initiative

From: Bunker 2.5% sulfur To: MDO 0.1% sulfur

California:• Auxiliary - 24nm from coast

• Voluntary to <0.2%• More than complies with

CA aux. engine rule• Main engine - 24nm from port

Vancouver & Tacoma:• Voluntary • MDO while at dock

Mærsk Mc-Kinney Møller stands on the dock at Pier 400 in Los Angeles with the Sine Maersk at berth behind him. The vessel was the first to perform a fuel switch as part of a Maersk Line pilot environmental

initiative in California.

Maersk West Coast Air Quality InitiativeVoluntary program reduces air emissions

26 Oct 2007NAM HSEQ

PAGE 3

Maersk Pilot Fuel Switch Initiative

AgendaWhy Take This Step?Emissions ReductionsProgram Status and StatisticsEngine Types – Maersk Owned Vessels Fuels Carried Onboard and Fuel AvailabiltyProgram Costs Crew TrainingChallengesCurrent Emissions Reduction InitiativesContact Details

26 Oct 2007NAM HSEQ

PAGE 4

Maersk Pilot Fuel Switch Initiative

Applicability

Main & Auxiliary Engines change from ’bunker’ fuel to LSDO with Sulfur content below 0.2%

All Maersk vessels calling CaliforniaIn and outbound

24 NM from arrival port for main engine24NM from California baseline (RCW) for auxiliary engines (may be much farther from port)

In PortPhase-in started with Sine Maersk March 31, 2006

All vessels at dock in Vancouver and TacomaStarted in 2007

26 Oct 2007NAM HSEQ

PAGE 5

Maersk Pilot Fuel Switch Initiative

26 Oct 2007NAM HSEQ

PAGE 6

Maersk Pilot Fuel Switch Initiative

26 Oct 2007NAM HSEQ

PAGE 7

Maersk Pilot Fuel Switch Initiative

ReasonsMaersk Line’s response to increased pressure to install Cold Ironing

Immediate emission reductions for the Ports of Los Angeles & Oakland

Mobile solution, rapid implementation

No expensive shore infrastructure required

Does not shift emissions to other power sources or locations

Part of Maersk’s ongoing evaluation of initiatives for environmentally responsible operation

26 Oct 2007NAM HSEQ

PAGE 8

Maersk Pilot Fuel Switch Initiative

Emissions Reductions

760 tons vessel-related emission reductions annually with over 1100 tons reduced through 31 Dec 07

SOx 95 %PM 86 %NOx 11 %

Data based on Year 2007 Vessel Calls at Los Angeles and Oakland Ports

P e rc e nt E mission R e duc t ionsM a e rsk In it ia t ive

Los Ange le s a nd O a kla nd P ort s

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

SOX NOX PM

P ollut ant s

HFOMaersk Initiative

SOx NOx PM

26 Oct 2007NAM HSEQ

PAGE 9

Maersk Pilot Fuel Switch Initiative

Number of vessels 105 different vessels (through 31 Dec 07)Owned and charter participate.

Number of fuel switchings carried out

577 reported fuel switches (2 Apr 06 - 31 Dec 07)

Consumption of LSDO per Switch – Main &

Auxiliary Engines

27.3 MT (Based on fuel consumption 02 Apr 06 – 31 Dec 07)

Fuel sulfur content averages: HFO 2.50% S LSDO 0.13% S

Reductions Achieved compared to burning

Residual Fuels

Total Emissions: Approx. 1130 tons through December 31, 2007PM: 86%SOx: 95%NOx: 11% (from NOx-Reduction mode in Auxiliary Engines)

Data analysis by ENVIRON .

26 Oct 2007NAM HSEQ

PAGE 10

Maersk Pilot Fuel Switch Initiative

Main Engines – Maersk Owned Vessels

MAN B&W 12K90MC10K90MC-C

Sulzer Wartzila12RTA96C12RT-flex96C9RTA84C

26 Oct 2007NAM HSEQ

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Maersk Pilot Fuel Switch Initiative

Auxiliary Engines – Maersk Owned Vessels

MAN B&WHoleby 7L32/40Holeby 8L28/32Hyundai 8L27/38

Sulzer Wartzila6R32E

Daihatsu6DK-32

MAK Caterpillar6M32C

26 Oct 2007NAM HSEQ

PAGE 12

Maersk Pilot Fuel Switch Initiative

Fuels Carried Onboard

Residual Fuels RMH 380 / 700RMK 380 / 700

Distillate Fuels -DMX – for Emergency Generator & Lifeboat EnginesDMADMB

Vessels equipped with separate service tanks for Residual and Distillate fuels

26 Oct 2007NAM HSEQ

PAGE 13

Maersk Pilot Fuel Switch Initiative

LSDO Availability (as of Oct. 2008)

Sourcing is handled globally by Maersk Bunker US West Coast

Mainly Los Angeles & OaklandNo Problems in sourcingGood Quality – Inland DistillateMain Supplier – Chemoil – Approx. 80% Volume – Price DrivenAverage Stem 200 MT

Far EastJapan – Available – ExpensiveSingapore / Hongkong – Difficult to source

EuropeRotterdam – Difficult to source – Expensive when available

26 Oct 2007NAM HSEQ

PAGE 14

Maersk Pilot Fuel Switch Initiative

Fuel Switching Summary

Summary of Sulfur Content of MDO FuelLos Angeles and Oakland Ports, April 2006 - April 2007

Maersk Inc.

0

20

40

60

80

100

120

140

160

< 0.01% 0.02% 0.05% 0.10% 0.20% 0.30% 2.00%

Sulfur Content of MDO Fuel

Freq

uenc

y of

Ves

sel C

alls

26 Oct 2007NAM HSEQ

PAGE 15

Maersk Pilot Fuel Switch Initiative

Crew Training

Crew advised to follow change over procedure as per engine manufacturer instructions

Change over considered ’Normal Engineering Practice’

No special training provided

Maersk crews are trained to ISO 14001 Environmental Management Systems

26 Oct 2007NAM HSEQ

PAGE 16

Maersk Pilot Fuel Switch Initiative

Challenges

No significant problems encountered to date on vessels due to fuel switch.

Care required in switchingEngines run on LSDO for short periods of timeSome fuel pump issues

In case of longer running, manufacturers suggest change over of cylinder lubrication oil with lower base number.

Timely data collection was especially challenging in the early months, and still represents a challenge.

26 Oct 2007NAM HSEQ

PAGE 17

Maersk Pilot Fuel Switch Initiative

Costs and ImplementationNo capital investment required – vessel or port

Rapid implementation (weeks vs. years)

No personnel safety or training issues

BUT:Fuel cost differential is substantial

Some care needed in switch

26 Oct 2007NAM HSEQ

PAGE 18

Maersk Pilot Fuel Switch Initiative

Current Emission Reduction InitiativesSlide valves

MAN main enginesImproves the combustion processReduces visible smoke and PMLess maintenance(less fuel oil consumption/CO2 emisson)

SIP cylinder lubrication systemReduces cylinder oil consumptionReduces PM emission

Waste Heat Recovery system10% more mechanical energy outputLarge and complex installation10% reduction in all emissions; SOx, PM, NOx & CO2Hot exhaust gas -> steam -> electricity -> electric motors

26 Oct 2007NAM HSEQ

PAGE 19

Maersk Pilot Fuel Switch Initiative

Current Emission Reduction Initiatives

Electronically controlled injection in enginesImproved combustion in low-load conditionNo visible smoke – less PM emissionLess fuel oil consumption due to better combustion

Voyage Efficiency SystemSharing of sea current data between shipsVoyage optimization based on input from MET services, sea current and other sourcesLess fuel oil consumption due to less distance traveled at high speed

Maersk Ship Performance SystemMonitor propeller and hull efficiencyOptimize hull and propeller cleaning intervalsMonitor trim optimizationMonitor engine performance

26 Oct 2007NAM HSEQ

PAGE 20

Maersk Pilot Fuel Switch Initiative

Current Emission Reduction InitiativesSelective Catalytic Reduction

Test installation on one aux. engine in one shipMonitored with regard to efficiency in port areas / low load situationsMixed results in combination with low-sulphur distillate operation

Emission & Energy Saving Project

Identification of areas where fuel can be saved by optimization of processesSignificant savings obtained by monitoring buffer time build up during transit

26 Oct 2007NAM HSEQ

PAGE 21

Maersk Pilot Fuel Switch Initiative

Contact Information

Lee KindbergDirector, Environment

Health, Safety, Environment & QualityMAERSK INC.

6000 Carnegie BoulevardCharlotte NC 28209-4637

e-mail: [email protected]

(704) 571-2693

Jai K. AlimchandaniManager, Regulatory Affairs

Technical OrganisationA.P. Moller – Maersk

50 EsplanadenDK 1098 Copenhagen

Denmark

[email protected]

+1 310 525 9454+45 2361 3919