Transcript County of Los Angeles

Marine Fuels &
Cold Ironing:
Saving Fuel and the Environment
James A. Fawcett, Ph.D.
Sea Grant Program and
Price School of Public Policy
University of Southern California
Los Angeles, California
June 2013
Cold Ironing and Green
Ports
• Rationale for Green Ports:
– Combating worldwide climate change
– Promoting environmental sustainability
– Enhancing public (“stakeholder”) involvement
– Reducing the impact of the port and its users on
the environment
Economics of Green Ports
• Market and Non-Market Principles:
– Ports Have an Civic Responsibility to:
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Internalize environmental externalities
Communicate with those affected by port operations
Incorporate interests of near-port citizens
Seek a favorable balance between jobs and environmental
stewardship
• Support economic development
• Create high-quality jobs
– Ports have a National Responsibility to:
• Continue to move cargo to benefit the regional and national
economies
• Be competitive while contributing to global environmental
remediation
The Port as
Environmental Monitor
• Port State Control
• Ships may be registered in many countries, some
without high environmental standards
• But, all ships must use seaports
•  Seaports can encourage/enforce compliance
with safe environmental practices (Paris MoU and
subsequent including Tokyo MoU and Paris MoU
NIR)
• Residents surrounding ports suffer if ports do not
enforce safe environmental practices
MARPOL 73/78
• MARPOL establishes an international standard for
management of seaborne pollution--some of
which applies to ports
• Annexes
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I: Oil
II: Noxious Liquid Substances Carried in Bulk
III: Harmful Substances Carried in Packaged Form
IV: Sewage: reception facilities required in port
V: Garbage: reception facilities required in port
VI: Air Pollution
MARPOL 73/78
• Port State Control
– Applies to Annexes I, II, III, V and VI
• Implemented by Implemented by IMO Resolution
A.742 (18), in force 03 March 1996
• Amended by MEPC 53/24/Add.1, Annex 11 (Adopted
25 July 2005)
– Extends Port State Control to all vessels
regardless of flag
MARITIME AIR
POLLUTION
Maritime Air Quality
• Primary air contaminants
– DPM (diesel particulate matter)
• Especially DPM ≤2.5 microns
• Diesel soot
• Can cause or exacerbate pulmonary distress/disease, especially
among children
– NOx (oxides of nitrogen)
• Component of smog
– SO2 (sulfur dioxide)
• Component of smog
• Aggravates pulmonary distress
Maritime Air Quality
• Causes of poor air quality
– Load centering: concentration of vessels at a few large
seaports
– Operation of auxiliary engines in port: hotelling
– Diesel engines in general
– Fuel choices (residual fuel oils vs. distillate fuels)
– Lack of a workable regulatory regime for
internationally flagged ships
• MARPOL Annex VI: a permissive standard
– Unique meteorological conditions at various ports
Why is Fuel the Problem?
• Diesel engines using residual fuel
• Usually operating with Intermediate Fuel Oil (IFO)
– Can contain up to 35,000 PPM sulfur (m/m)
– Regulated by the IMO through MARPOL Annex VI
• Standards for sulfur component of diesel fuel:
– Heavy duty truck/bus standard in U.S. (post-2006): 15 PPM
(0.15%) residual sulfur
– IMO Annex VI standard (2010): 4.5% SOx
– IMO Annex VI standard (2012): 3.5% SOx
– IMO Annex VI standard (2020): 0.5% SOx
– ECA standard (North Sea/Baltic/N. America): 0.1% Sox (As of 01
January 2015
Fuel Economics
• IFO 180 (RME 180) $661/tonne (3.5% sulfur, 30 May
2013 Los Angeles)
• IFO 180 (RME 180) $610.5/tonne (3.5% sulfur, 30 May
2013 Singapore)
• Low-sulfur Distillate Fuel (Marine Gasoil or MGO/DMX)
$1010/tonne (0.1% sulfur) (30 May 2013 Singapore)
In Port Sources of Diesel
Pollution
• “Hotelling” use of ships’ auxiliary diesel
engines
• Diesel powered yard equipment
• Diesel powered locomotives
• Diesel trucks used for cargo drayage in and
near the port
Remedies for Air Pollution
• Requiring ships and terminals to use shore power
– In port, ships must shut down auxiliary engines and use shore
power
– Phase in the practice
– Cost to shipowners: ~US$500-$1500k per vessel
• Install cables and connections to main shipboard electrical supply
system
– Cost to ports:
• Depends upon availability of power at the dock
• Additional cost to provide adequate power outlets at each berth
Typical Shore Power
Installation—Los Angeles
Typical Shore Power
Installation—Oakland
Shore Power (Alternative
Maritime Power) in Port of Los
Angeles
Alternative Maritime Power (AMP)
Improving Air Quality:
Diesel-Trucks (USA)
• Retrofit trucks with clean-burning diesel engines
• Require the use of low-sulfur (≤0.15% or
15 ppm) fuels
• Retrofit yard equipment
– Install catalytic converters on diesel engines
– Require emulsified low-sulfur diesel fuel
– Require electric or hybrid diesel power
• Replace yard equipment with clean diesel or hybrid power
• Impose a per-container fee to pay for these improvements
Improving Air Quality
Diesel Locomotives (USA)
• Retrofit locomotives with clean-burning diesel
engines
• Convert to electric railways
• Retrofit yard (switching) locomotives to electric or
hybrid
– Switching does not require the power of line-haul
locomotives
– Recharge with onboard diesel when idle
– Use diesel power to augment battery when under heavy
load
A Fuel Alternative to LowSulfur IFO 180 and MGO
• At sea or near coastal areas
• A new option for carriers
• Issues
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Price of alternatives
Availability of alternatives
Cost of retrofit for existing vessels
Ability of engines to use multiple fuels in new
build
Dimethyl Ether as a Diesel
Fuel
• Produced from methane
– Natural gas
– Biomass (waste and agricultural products
– CH3OCH3
• Produced into methanol, then to DME via catalytic
process
• Used in Europe as a substitute for propane
• Non-toxic to humans
• Benefits
– Ultra low emissions
• No particulate emissions
• Very low NOx and SOx (no sulfur)
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Thermal efficiency equivalent to diesel
Ignition characteristics equivalent to diesel
Can be generated on-site from methanol
Costs estimated at -10% compared to
conventional diesel operations
California Ports as
One Model
• North America ECA requires fuel ≤1.0% sulfur
within 200 nm of the coast
• California requires fuel ≤0.1% sulfur
• Per MARPOL Annex VI
– Ship may use any “fitting, material, appliance
or apparatus or other procedures, alternative
fuel oils, or compliance methods”, which are at
least as effective in terms of emissions
reductions, as approved by the Party to
MARPOL Annex VI
Clean Air Action Plan
(CAAP)
• Developed by the Port of Los Angeles and Port of
Long Beach
• Designed to improve air quality in the Los
Angeles air basin
• Comprehensive air management plan
• Available online in Hangul and English at:
– http://www.polb.com/environment/air/caap.asp
– Scroll down to link for version in Hangul
Conclusions
• Concerns over global climate change will affect
maritime fuel use
• Cost, energy density, availability and hazard
profile will influence the choice of fuels for
carriers
• Public concerns over air quality and climate
impacts will constrain the use of fuels near
coastlines
• Carriers should be prepared to plan ahead for new
rules regarding fuel use