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CHEMICAL TANKER COMMITTEE MEETING - page 30 / 37

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One could predict a possible hybrid solution for SOx and PM emissions which may start with an Option 2 model but with a higher sulphur cap SECAs, say 1.00% from say 201[2] which would be transited into an Option 1 like model. Early dates (i.e. 2015/2016) for enforcing Option 1 would be hard to negotiate. INTERTANKO would be determined to avoid an outcome along the lines of Option 3 which may mean use of at least three different fuel types in every voyage.

With regard to Fuel Oil Quality, INTERTANKO would make efforts to seek that the revised MARPOL Annex VI provides a better definition of the quality of the fuels delivered to ships.

Compliance of existing pre-2000 engines with Tier I NOx limits would not be an easy task. As by the INTERTANKO initial proposal for a global use of MDO, the NOx emissions reduction would be 10% to 15% for all engines. However, without a global use of MDO, the penalty on old ships would be too high. Engine manufacturers seem confident they can deliver new engines that would comply with NOx Tier II. NOx Tier III limit implies use of SCRs/abatement technologies. INTERTANKO would advise members to adopt a prudent approach and consider that new ships should ensure compliance with Tier III and install SCRs/abatement technology prior to 2016.  SCRs is the only technology to give an 80% reduction; BUT existing SCR technology is not efficient at low engine loads. The question still to be answered: can compliance be achieved in ECAs irrespective of the engine load (close to port, through estuaries and straits ships slow down)?

Agenda for the CTC #32Page 30 of 39

To be held in Panama City on the 09 April 2008 Issue No. 1

Our Ref.: AGO­­­­-22713­­/1000003Approved by: H.N. Snaith

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