The Case for Bunker Metering

The Case for Bunker Metering

John Houghton

Business Development Director

November 2010

Micro Motion OIML Metrology Bunker Transfer Package

– What is it?

– Why is it important?

– What is included?

Bunker Industry Needs

Basic needs:

Key industry players hungry for change

Coriolis sensors capable of HFO bunker flowrates

Custody transfer expertise

2 phase flow capability

System uncertainty within 0.5%

A window into the process

Quality and quantity

3rd party accreditation (specifics for aerated HFO)

Exhaustive testing (high viscosity aerated fluid)

Strong 3rd party project support

Potential to be THE global standard

OIML Metrology Bunker Transfer Package: Why does the industry need it?

Today there is a lack of trust in the quantity transferred

The amount of official industry wide global bunkering disputes are over 50,000 in 2009 (source: Bunkerworld)

The complaints on shortfalls amount to between a staggering 540,000 - 900,000 MT

Operating VesselBargeFuel

Storage

Terminal

Consider a Bunker with 5% entrained gas:

– A volume flow measurement will give a batch error of +5%

– Effect on mass measurement is negligible

– Drive Gain can be used to indicate presence of entrained gas

Micro Motion Coriolis meters Indicate presence of entrained gas

OIML Metrology Bunker Transfer Package: What is it?

A global transparent and traceable mass based bunker measurement solution

Operating VesselBargeFuel

Storage

Terminal

The technology is here today that benefits the

complete bunker supply chain

OIML-R117-1

(International Recommendation for dynamic measuring systems for liquids other than water)

Single phase

Dual phase

Competitive advantage – Traceable and transparent solution per OIML R117

Legal measurement referenced to transfer point

Global level playing field to mass based flow meter systems

Increased operational efficiency

Eliminate disputes

Real time, automated, electronic BDN’s

Simple, direct mass based, no conversions

Why is it important to Barge Operators?

M/S Vlaardingen from VTBarge “Antwerp” from Victrol

Mts. Antwerp - Victrol

Barge “Vlaardingen” from VT

Why is it important to vessel owners/operators

Bunker fuel represents 50-70% of total ship operating expense

Example: Large container ship-7,750 TEU

– Summer 2009 bunkers $500/tn*200tn/day*300 days operating = $30M

– Summer 2010 $455/tn*200tn/day*200 days operating = $18.2M

– Next summer ????

What does a 1% measurement improvement mean to you?

– Summer 2009 $300K potential savings

– Summer 2010 $182k potential savings

– Reduced billing discrepancies

The technology is here today that can benefit suppliers, barge operators and shipping companies

Micro Motion Confidential

Slide 13

Marine MID (Module D) Overview

What is OIML and MID?

An overall set of requirements that need to be followed to guarantee:

You get what you are paying for and you can prove it.

You deliver what you are being paid for and you can prove it.

OIML is the global standard and MID is the European standard.

Nmi and Micro Motion worked together to achieve the fulfillment of the MID requirements for the Metrology Bunker Transfer Package, we also fulfill the OIML global standard regarding these requirements.

MID OIML

Closeout

Ede Calibration

Order Completion

Collect Info

Kick Off

Customer Install

Managed through 38 step

controlled and gated process

Certified

Package

Handover

Survey

Pre-Survey

6

Service

Post-Install

Office

Preparation

Meter Build &

Calibration

Start Up

Sealing

Certification

Ede Review

Survey

Pre-Install

Ede Review of

Survey

Quote Equipment

& Service

PO Review by Ede

& Contracts

Micro Motion Metrology Bunker Transfer Package

Delivery Process

Characteristics of bunker approval T10265:

- System uncertainty within 0.5%

- HC3 sensor (today)

- Based on water calibration

- Flow rate 120 – 1200 t/h

- Temperature 30 – 70 ºC

Initial release of bunker approval

Micro Motion Confidential

Slide 17

What’s Included

Complete custody transfer approved measurement system

Product

– HC3 sensor

– Printer

– 3500/3700 electronics w/

• Bunker software

• Custody transfer hardware(lockouts)

Bunkering procedures

System installation drawing

NMi certification

Measurement Instrument Directive (MID/OIML R117) certified technician start-up

Summary

Micro Motion Coriolis meters do not need an initial, or periodic, calibration on the vessel/barge – no need for meter removal

Emerson Process Management is fully committed to serve the bunkering industry with a documented, transparent and traceable measurement package