Alternative Fuels Online Conference

15 October 2020

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Alternative Fuels Online Conference – 15 October 2020 – Session 7

Session 7: Tanker market adapting to future

expectations

Catrine Vestereng
Vice President, Global Segment Director Tankers, DNV GL - Maritime

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 TANKER MARKET ADAPTING TO FUTURE EXPECTATIONS

15 October 2020

Catrine Vestereng
Global Business Director Tankers

October 15th 2020

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 Regulations towards 2030 – the landscape continues to evolve
Norwegian World
IMO GHG strategy EU Recycling EiF
Heritage Fjord regs

Core ports in Chinese All ports in

Chinese DECA 0.5% global sulphur
area Chinese area HFO ban in arctic
0.5% sulphur cap
0.5% sulphur 0.5% sulphur

Ballast Water
New Zealand bio- Baltic / North Sea
Convention - entry into HSFO carriage ban
fouling regulation NECA
force

EU CO2 Monitoring,
Global fuel consumption EEDI phase 3 (2022 for
California shore power Reporting and EEDI phase 2
Data Collection System some ship types)
Verification
Adopted
2017 2018 2019 2020 2021-2024 2025-

Super SEEMP -
In the pipeline, or Regulation of CO2
BC, noise, and VOC
regulation
possible… emissions

IMO Carbon pricing /

EEXI
MBM

Chinese 0.10% and Bio-fouling regulation EEDI Phase 4

ECA application?

HK Recycling
Mediterranean ECA
convention ratified?

EU ETS includes
Plastics regulations?
shipping?
Updated Oct. 2020

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The biggest and most complicated decision
is ahead of us…
…GHG will to a great extent influence the future designs as
well as the existing fleet!

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The IMO has set their ambitions...
...however Financial Institutions, Cargo owners and Charters are increasing the pace...

An example is the latest published

Some of the Signatories

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 THE STATUS OF THE TANKER FLEET

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 The result of IMO 2020
Tankers with scrubbers (in operation and under order)

11% 32%

21%
34%

19%

15%

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 EEXI and SEEMP requirements are subject
to MEPC 74 adoption
Retroactive requirements might be challenging...
...in particular for the bigger vessels...

Attained EEDI For VLCCs Attained Carbon Intensity for VLCC’s

EEXI level from 2022

Most likely remedy: Engine Power Limitation (EPL) Most likely remedy: Operational Efficiency gains,
or Shaft Power Limitation (ShaPoLi) Enhanced Fuel efficiency by technology and
eventually new fuels

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HOW DOES THE REGULATORY
LANDSCAPE INFLUENCE THE TANKER
DESIGNS?

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AET and Altera’s Shuttle Tankers – The WORLDS MOST ADVANCED TANKERS!

 LNG as primary
fuel
 With a possibility
to utilize a mixture
with liquefied
volatile organic
compounds (VOC)
and LNG
 Built at Samsung
Heavy Industries

Annual CO2 Annual NOx Annual SO2 Annual fuel

emissions emissions emissions consumpti
reduced by reduced by reduced by on reduced
by
42 % >80 % >95 % 22 %

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And several owners are following on the LNG Fuelled pathway….

Updated 2020-10-11

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However - it is not solely LNG fuel that are utilized as alternative fuels…
…Worlds first Methanol DF tankers

 12 MR tankers in
operation and further
10 vessels under
order
 Built at Hyundai Mipo
Dockyard

Annual CO2 emissions

depends on the production
of Methanol reduced by

0 % (todays
market)
80 % (biomass) Annual NOx Annual SO2
emissions emissions
100 % (syntetic/electro reduced by reduced by
– methanol from renewables)
>30 % >95 %

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And the combination with other fuel reducing technology is heavily explored….

Optimized lines Hybridization Wind assisted propulsion

Source: Stena Bulk

Reduced ballast Machinery optimization Air Lubrication System

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 HOW TO NAVIGATE IN THE BLURRY
LANDSCAPE?

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 The Newbuilding Considerations

FIT FOR PURPOSE COST EFFECTIVE

Capable of carry the required cargo to Safe and flawless operation with
the desired locations minimum OPEX and down time

FUTURE PROOF

Compliance with future regulatory requirements

AND
the stricter charter requirements

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Newbuilding project planning is important to reach a future proof vessel…

Operational profile
Analysis of fuel options
- Trading areas
- Overview of fuel options
- Speed/power profiles
- Availability of fuel
- Bunkering locations

Outline of future-proof design

Financial performance
- Vessel arrangement
- Financial evaluation of fuel options
- Fuel tanks and bunkering
- CAPEX, OPEX and voyage costs
- Safety

Environmental performance
- Contributions IMO pathway
- Fuels options and EE measures

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 Source: ROADMAP TOWARDS A ZERO-EMISSION VESSEL by

How to go about the difficult decisions…

…An example of calculations for a tanker

Costs of fuel options Total cost of ownership

Fuel and technology options

Environmental performance

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To conclude…

The tankers are developing with technology and environmental

compliance… - slowly… - but the pace seems to be increasing….

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Thank you!

Alternative Fuels Insight platform >> www.dnvgl.com/afi

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