Working together for a safer world Spotlight on Marine Fuel Issues An overview Sophia Themelarou Lloyd’s Register, Fuel Oil Bunker Analysis and Advisory.

Working togetherfor a safer world

Spotlight on Marine Fuel IssuesAn overview

Sophia Themelarou Lloyd’s Register, Fuel Oil Bunker Analysis and Advisory Service (FOBAS)

ELINA PROJECT – 5th FORUM, APRIL 25TH 2014

Lloyd’s Register Marine FOBAS

Overview

PART 1 Fuel Quality

Lloyd’s Register Marine FOBAS

Introduction

• Bunker fuel is NOT a uniform product or product stream in itself

• Various streams of heavy residues and lighter cutter stocks are used to make the final blend

• Product in bunker tanks on board the ship is the result of optimization between production costs and compliance with specifications

• Composition of fuel delivered to ships has changed over the last few decades

• Rising costs and fluctuations in feedstock quality as well as optimized refining techniques make fuels more complex in nature

Lloyd’s Register Marine FOBAS

Marine Fuel Oils

Residual fuel oils

Blended from:

Atmospheric residues

Vacuum residues

Visbroken residue

Process residues+ distillate

Distillates

Blends usually for DMB/ DMC grades only

- FAME?

Grades (ISO 8217:2010):

RMA10, RMB30, RMD80

RME180

RMG180, RMG380, RMG500

RMG700, RMK380, RMK500, RMK700

Grades (ISO 8217:2010): DMX, DMA, DMZ and DMB

Lloyd’s Register Marine FOBAS

Changing Landscape of Blending

Lloyd’s Register Marine FOBAS

Main target blend specification

Lloyd’s Register Marine FOBAS

From Fuel Compatibility to Stability

Unit sheets

Asphaltene stacks

Start of agglomerate formation

Asphaltene deposits

Lloyd’s Register Marine FOBAS

Two-Component Model (Shell, 1952)

• Fuel oil system consists of two pseudo components:

• Asphaltenes : largest, most polar molecules with a tendency to form a separate phaseAssigned value: FR max (insolubility number)

• Maltenes : the rest of the solution which acts as a solvent for the asphaltenesAssigned value: Po (solubility number)

Fuel is stable as long as Po > FR max (or Po/FR max >1)

Lloyd’s Register Marine FOBAS

Fuel Quality Key Issues

Lloyd’s Register Marine FOBAS

Is sludge generation a problem?

• 26% of the total investigation cases of FOBAS (2013) were sludge/ filter clogging based

PART 2 Future development

Lloyd’s Register Marine FOBAS

Emissions regulations drivers

• SOX

• NOX

• CO2

• Particulate Matter

Lloyd’s Register Marine FOBAS

Marine Exhaust Emission Controls

Lloyd’s Register Marine FOBAS

Sulphur Emissions Regulatory Framework

4.50%

3.50%

1.50%

1.1.2012

1.1.2020* 1.1.2025

1.00%

0.10%

1.7.20101.1.2015

Outside ECA-SOx

ECA-SOx0.50%

4.50%

3.50%

1.50%

1.1.2012

1.1.2020* 1.1.2025

1.00%

0.10%

1.7.20101.1.2015

Outside ECA-SOx

ECA-SOx0.50%

Lloyd’s Register Marine FOBAS

Current Emission Control Areas (ECA-SOx)

Lloyd’s Register Marine FOBAS

Reducing Emissions ~ The Refineries Perspective

• Currently shipping is a wide residual fuel market - low value by product- but significant investment required to deliver <0.50 & <0.10% S fuel – 2015/20

Will abatement technologies or Alt – fuels ease demand on refineries? Will emissions technology evolve resulting in more stranded refinery

investment risk?

Lloyd’s Register Marine FOBAS

Alternative Fuels?

Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates.Copyright © Lloyd’s Register [Entity]. 2013. A member of the Lloyd’s Register group.

Sophia ThemelarouFOBAS Assistant Specialist, Marine Fuels & EnvironmentFuel Oil Bunker Analysis and Advisory Service (FOBAS) T +30 210 4580 874 E [email protected]

Hellenic Lloyd’s SA 87, Akti Miaouli StreetPiraeus, 185 38

Working togetherfor a safer world