LNG

Observations from the 4th IMO GHG Study

Background:

In July 2020, the IMO 4th GHG study was released, and the highlights and an executive summary were presented as a submission to IMO’s Marine Environmental Protection Committee for discussion at the upcoming MEPC 75 (virtual meeting scheduled on 16-20 November 2020). The study was conducted by an international group of experts from academia, Class societies, and non-governmental organizations, with data contributions from BIMCO, Maersk, the World Shipping Council, and others. Previous studies published in 2000, 2009, and 2014, have been used by IMO in addressing the GHG emissions from ships. Each subsequent study has improved on the methodologies used to quantify emissions to date and to project future GHG emissions. Previous, current, and future Studies are intended to promote reasoned debate at IMO and to measure the effectiveness of IMO regulations on GHG emissions.


Some Highlights from the 4th GHG Study:

  • Between 2012-2018:

o   GHG emissions from shipping increased 9.6%, but are slightly down from the 2008 ‘baseline’

o   shipping’s share of global GHG emissions increased slightly from 2.76% to 2.89%

o   the carbon intensity (GHG emissions per ton/mile of cargo transported) decreased by about 30%., with most of this reduction happening in the 2012-2015 period mainly attributed to larger and slightly slower ships.  The pace of decrease in emission intensity slowed between 2015-2018.

  • Without additional regulations, BAU – business as usual, the projections are that the emissions will range from flat to a 50% increase by 2050 as compared to 2018, primarily dependent on world trade growth

  • Emissions in 2020 and 2021 will be lower due to the impact of COVID and reductions in shipping volumes, but this is not expected to impact the long-term trends and results

  • LNG as a fuel saw an 87% increase between 2012 and 2018 with new LNG fueled ships coming online

  • Even with ECAs, the SOx and PM emissions from ships increased globally and this is believed to be based on a gradual increase in sulfur content in HFO fuel through 2019

  • This study is the first that claims to distinguish between domestic and international shipping

  • Unsurprisingly, the large ships are 80-100% on international voyages and the smallest category ships are only 20-40% international

Some observation and comments from Herbert Engineering:

IMO efforts to date have made improvements in the overall fleet efficiency due to EEDI for new ships. This combined with the commercially driven general efficiency improvements gained from larger ship sizes, along with somewhat slower ships speeds, has resulted in holding overall maritime GHG emission levels relatively constant since 2012 despite a very significant 40% growth in seaborne trade.

In the future as further efficiency gains become increasingly more difficult to realize, the long-term IMO GHG targets will need to be primarily met by adopting alternative low or zero carbon fuels. Early short-term contributions to overall GHG reductions can still be made for the existing ship fleet, while they remain in service, by further speed reductions. Mid-term contributions can be made by the adoption of bio-diesel fuels or early scrapping of existing ships replaced with newer more efficient designs. There are some worthy, but minimal, additional contributions to be had from further efficiency improvements or adopting hybrid and renewables (wind and solar).

If IMO is to make good on their on their pledge to reduce the GHG emissions from the marine sector to 50% of 2008 values by 2050, then ship owners and operators can expect ever increasing IMO GHG regulations for both new and existing ships. Upcoming regulations for new ships will likely continue the current EEDI pathway with ever increasing GHG reduction phases, eventually requiring alternative low-carbon fuels to comply. Because of the working life of a ship, the target GHG emissions cannot be met without also addressing existing ships. Upcoming regulations for existing ships are likely to incentivize further speed reductions, biofuel adoption, conversion to other low carbon alternatives, or early scraping.

At Herbert Engineering we are closely following the development of all practical low carbon technologies and have recently completed a series of proposed 2030 build, low and zero carbon ship designs of containerships, bulk carriers, tankers, and product carriers for ABS in their low carbon Shipping Outlook. We currently anticipate that the short and mid-term designs will focus on biofuels, LNG, and hybrid designs; but for the mid to long-term solutions we think hydrogen/ammonia powered fuel cells or ammonia powered ICE’s are strong candidates for future deep-sea long-haul cargo transport.

Clean Jacksonville LNG Bunker Barge

HEC/GTT Original Design

HEC/GTT Original Design

It is always interesting to follow the development of our designs through to build and eventual operation. In this case this bunker barge began life in 2013 as a concept design project for GTT.

The GTT Demonstrator Mark III LNG bunker barge was designed to demonstrate the use of the GTT Mark III membrane containment system in an unmanned LNG Bunker barge.  This design demonstrated the feasibility of how the GTT Mark III containment could be used on a small scale, in a compact barge arrangement and meet all the handling requirements in a safe, reliable and cost effective manner.  

It was based on general requirements at the time for the markets for LNG bunkering in near coastal and inland markets.  The capacity is based generally on what these markets may require for refueling multiple smaller vessels (tugs, OSV’s, etc.) and larger ships that serve shorter (Jones Act) voyages.  The barge could operate as a mobile refueling resource (taking the fuel to the vessels) or moored/tied up to serve as a refueling station. 

Features of this concept can be scaled up to other services and vessel types as required by the trade being pursued.

One of the most important features addressed with this Demonstrator LNG bunker barge design is the manner in which boil off gas from the Mark III atmospheric tank is handled to provide safe operation over a market viable voyage profile.  All key regulatory requirements for design and operation were considered, including loading, discharge, transit, and emergency situations.

LNG Bunker Barge.jpg

HEC worked on structure, hull lines, design of the cargo handling system considering initial tank gassing up and cool down, LNG loading, idle mode, LNG offloading, tank warm up and inerting and boil off gas management. Also considered were hazardous area zones, protective location requirements for the LNG tanks, emergency shut down system, fire fighting, docking arrangement, fendering, ballast for trim and heel control, load balance and generating capacity.

ABS granted approval in principle in March 2014, followed by DNVGL in June 2014.

In February 2015, GTT North America received an order for the barge from Wespac Midstream LLC and Clean Marine Energy LLC to be built at Conrad Orange Shipyard, Inc. to serve Tote's new LNG powered container ships. At this point, GTT had added a GTT Reach4 LNG bunker mast as seen below.

Credit: GTT

Credit: GTT

Conrad Industries and their design contractor Bristol Harbor Group proceeded to develop the design, including large service and work spaces for equipment operators and a larger hose handling crane.

Jax LNG, who will be the operator of the barge, received their license to conduct ship to ship LNG bunkering operations in August 2017, and it is understood that the barge was delivered at the end of 2017, to commence bunkering in early 2018.

Credit: LNG World News

Here are some details of our other LNG projects.