COALspot.com keeps you connected across the coal world
  • MAY 2020 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 61.11 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Thursday, 01 November 18
IMO 2020 - EXPLORING THE OPTION OF SOX SCRUBBERS - SIDDHARTH MAHAJAN, GARD
gardKNOWLEDGE TO ELEVATE

There are four possible methods of compliance:
 
1.use VLSFO (very low Sulphur oil) or blends;
2,use distillates or MGO;
3,use LNG or other alternative fuels; or
4,install EGCS (exhaust gas cleaning systems) and continue using HSFO.
 
Prior to selection of a compliance option shipowners should undertake a proper assessment of the risks involved and should not only consider the cost element but also any other operational and safety issues. For example, in the case of compliant fuels some of the safety issues that need to be considered would be fuel oil stability, compatibility, combustionability, leakage and exposing fractures in pipes which are not apparent when using thicker HFO, whereas some of the operational issues are heating requirements, tank segregation, change in cylinder oil, changing certain engine parts and lower power output. Shipowners who have decided to use compliant fuels or distillates may wish to refer to the provisional guidance document prepared by International Chamber of Shipping. The use of scrubbers also carry certain uncertainties and owners would need to do a thorough risk assessment to understand the challenges they and their crew members are likely to face if this option is selected. Further information can be found in the OCIMF’s Guide for implementation of Sulphur Oxide Exhaust Gas cleaning systems and other sources of information such as advisories of classification societies.
 
In this Insight article we will look at the last of the four available options: SOx scrubbers.
 
Recent reports indicate a surge in the number of vessels having scrubbers installed. The demand is such that some major manufactures are reporting long lead times for the installation of new scrubber units and shipowners are having to turn to other suppliers to ensure compliance by 1 January 2020.
 
Selecting a scrubber system
Whether SOx scrubbers are an attractive option or not depends on the price difference between high sulphur and low sulphur fuel oil.
 
Annex 1 of MEPC.259(68) outlines the IMO’s requirements for complying with MARPOL Annex VI, regulations 14. Approval for the use of scrubbers can be based on either Scheme A or Scheme B. Scheme A involves installing a product with certified parameters and emission checks whilst Scheme B requires continuous measurements of emissions to demonstrate compliance.
 
Various factors need to be taken into consideration before selecting the most suitable scrubber system for a vessel. The installation and operating costs, structural compatibility including the space available for the system, the vessel’s trading pattern, alkalinity of the water, and any requirements for additional substances such as caustic soda or magnesium oxide will determine the system which is most appropriate for the vessel.
 
There are four types of scrubber systems:
 
(a) open loop,
 
(b) fresh water closed loop,
 
(c) hybrid, or
 
(d) dry units.
 
The open loop system uses sea water. Among the limitations of this system, is the need to position the overboard discharge well away from the sea chests, as well as strict domestic wash water discharge regulations and operations in fresh and brackish waters. The closed loop system uses fresh water which requires dosing to scrub and the system requires a separate tank for collecting any residual waste. There could also be logistical problems in obtaining supplies of items such as caustic soda (an alkali) and arranging for the discharge of waste from the collection tank. A hybrid system, which offers maximum flexibility, is a combination of the open and closed loop.
 
Once the decision has been made which of the above systems to fit, shipowners must decide whether to fit a multi-inlet tower, which will handle the exhausts from all engines, or a single line tower, which will handle the exhaust from only one engine. Irrespective of the system selected, scrubbers require a lot of space. It will be necessary for the vessel to go into dry-dock to undertake certain tasks whereas for other tasks in-service installation can be carried out. Depending on the complexity of the scrubber system to be installed, it may be necessary to modify the funnel, engine casing and engine room.
 
Key operation and safety concerns
Owners or their managers may need to carry out an assessment of the vessel’s current power and any additional power needed because the available power must be sufficient to run the various scrubber related installations such as feed water and circulation pumps, dosing units, exhaust fans and monitoring equipment. In addition, there must be sufficient power to counter the back pressure produced by the scrubber unit, which may be considerable, thereby, in theory, marginally increasing GHG emissions. Also, it must be verified that the back pressure limits are not exceeded else the NOx emissions may be adversely affected.
 
Wash water from scrubbers is highly corrosive and acidic, and the effects are aggravated by high temperatures of exhaust gasses. To tackle this, the industry has improved the materials and coatings for scrubber towers, internal piping, valves and the waste storage tanks. However, little can be done to improve the resistance to corrosion in the overboard distance piece which is located between the scrubber overboard discharge valve and ship shell plating, besides increased wall thickness, special coatings and ascertaining the condition of the distance piece through regular thickness measurements (which may be required by certain Classification societies too). Should the overboard distance piece require repairs, then underwater works can be carried out without affecting the vessel’s schedule.
 
Another issue of some concern is the fact that vessels with open loop scrubbers may not be able to trade freely as some ports or states may prohibit the discharge of wash water in spite of the discharge meeting international standards (IMO resolution MEPC.259(68)). There are currently only a handful of states with strict scrubber wash water discharge regulations in place but other states could introduce similar rules in the future. Hybrid or closed loop systems may therefore appear to be better options for vessels trading in these areas. One issue which may then arise is where to discharge the contents of the holding tank as many states do not yet have shore reception facilities in place for this type of waste, or where these are available, they may come at a cost.
 
Scrubbers, being a mechanical device, can break down or malfunction for a variety of reasons. For example, vessels can experience problems associated with loss of sea water supply or poor inflow due to clogged sea chests, mechanical failure of pumps, pipe leakages, all of which may lead to the scrubber system shutting down. Should this happen, owners would need to notify both the flag and port states immediately. This will be perceived as a temporary non-compliance and the vessel would not be in immediate breach of the regulations, and provisions of MARPOL Annex VI regulation 3.1.2 would apply. The vessel would, however, be expected to change over to compliant fuel immediately, but if this is not available, the vessel must carry out repairs at next port or use bunker compliant fuel. The Exhaust Gas Cleaning Systems Association (EGCSA) has produced a useful diagram detailing the interaction with the port state in such situations.
 
Difficulty in repairing scrubber units whilst the vessel is located in remote regions should be anticipated. Due diligence and preparedness would require owners and managers to revisit their critical spares list, and in consultation with the manufacturer, add those items which are most likely to break down, including the continuous emissions monitoring system. It is worth mentioning that when selecting scrubber supplier after sales service is an important element. In that regard, manufacturer’s service networks, market reputation and financial standing should form part of the selection process. Similar kind of due diligence would have to be exercised in selection of CEMS (Continuous Emission Monitoring System) supplier too.
 
It is important that the crew is given training in not only operating the scrubber unit, handling sensitive control and monitoring systems and carrying out maintenance, but also safe handling of the chemicals used and scrubber waste. Safety Management procedures may have to be updated accordingly.
 
Conclusion
Despite the high capital expenditure involved, scrubbers seem to be the favoured solution for many owners as this does away with the uncertainties involved in obtaining compliant fuel. We havein certain cases, seen that charterers would be willing to share the initial investment costs to secure a better long term charter deal.
 
Whichever route an owner selects on the road to compliance with IMO 2020, the final selection should only be made following a proper study and full knowledge of the pros and cons of each option. This can be achieved through dialogue with manufacturers, technical experts, charterers, bunker suppliers, and classification societies.
by Siddharth Mahajan
Loss Prevention Eexcutive, Asia, Singapore
GARD


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Friday, 29 May 20
COVID-19: COAL SUPPLY BY CIL TO POWER SECTOR DIPS 22% TO 32 MT IN APRIL DUE TO DEMAND SLUMP - PTI
Over 95% of CIL’s production comes from its 171 open cast mines.   The supply of coal to the power sector by state-owned Coal In ...


Friday, 29 May 20
AUSTRALIA'S NEW HOPE WARNS OF HIT FROM COAL PRICE SLUMP - REUTERS
Australia’s New Hope Corp Ltd said on Thursday that a sudden drop in thermal coal prices and lower output from its Queensland operations woul ...


Friday, 29 May 20
GOVT MAY LAUNCH COAL BLOCKS AUCTION PROCESS UNDER COMMERCIAL MINING ON JUN 11 - PTI
The Centre is likely to launch the process of coal blocks auction under commercial mining on June 11 and around 50 mines are expected to go under t ...


Friday, 29 May 20
KOMIPO ON BEHALF FIVE KOREAN GENCOS INVITED COAL BIDS FOR 5,700 & 4999 NCV COAL FOR AUGUST 2020 LOADING
COALspot.com: South Korea’s Korea Midland Power Co.,Ltd (KOMIPO) on behalf five (5) Korean Gencos has Issued an International Tender for tota ...


Friday, 29 May 20
DRY BULK SHIPPING: NO QUICK RECOVERY FOR THE DRY BULK MARKET AS COVID-19 DIGS DEEPER
The outlook is poor for dry bulk, as the negative demand shock and overcapacity come together to send rates to multi-year lows, even a return to wo ...


   1 2 3 4 5   
Showing 11 to 15 news of total 5937
News by Category
Popular News
 
Total Members : 26,914
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Medco Energi Mining Internasional
  • Salva Resources Pvt Ltd - India
  • TGV SRAAC LIMITED, India
  • Trasteel International SA, Italy
  • GN Power Mariveles Coal Plant, Philippines
  • The India Cements Ltd
  • Economic Council, Georgia
  • KPMG - USA
  • Britmindo - Indonesia
  • Petron Corporation, Philippines
  • Gresik Semen - Indonesia
  • GB Group - China
  • Tamil Nadu electricity Board
  • Coalindo Energy - Indonesia
  • Platou - Singapore
  • Ambuja Cements Ltd - India
  • Coal and Oil Company - UAE
  • Indonesia Power. PT
  • PowerSource Philippines DevCo
  • Inspectorate - India
  • Coaltrans Conferences
  • bp singapore
  • Ernst & Young Pvt. Ltd.
  • TeaM Sual Corporation - Philippines
  • Essar Steel Hazira Ltd - India
  • Meralco Power Generation, Philippines
  • The Treasury - Australian Government
  • Inco-Indonesia
  • NALCO India
  • VISA Power Limited - India
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Edison Trading Spa - Italy
  • Bukit Baiduri Energy - Indonesia
  • Petrochimia International Co. Ltd.- Taiwan
  • SMC Global Power, Philippines
  • Georgia Ports Authority, United States
  • Therma Luzon, Inc, Philippines
  • Agrawal Coal Company - India
  • White Energy Company Limited
  • EIA - United States
  • Cargill India Pvt Ltd
  • KPCL - India
  • Maersk Broker
  • Parry Sugars Refinery, India
  • Kartika Selabumi Mining - Indonesia
  • Binh Thuan Hamico - Vietnam
  • PLN - Indonesia
  • Siam City Cement - Thailand
  • Power Finance Corporation Ltd., India
  • Malabar Cements Ltd - India
  • Ceylon Electricity Board - Sri Lanka
  • San Jose City I Power Corp, Philippines
  • Cemex - Philippines
  • Planning Commission, India
  • European Bulk Services B.V. - Netherlands
  • Madhucon Powers Ltd - India
  • Africa Commodities Group - South Africa
  • CoalTek, United States
  • Directorate General of MIneral and Coal - Indonesia
  • Rashtriya Ispat Nigam Limited - India
  • Latin American Coal - Colombia
  • Wilmar Investment Holdings
  • Runge Indonesia
  • Malco - India
  • Independent Power Producers Association of India
  • Thomson Reuters GRC
  • KOWEPO - South Korea
  • Straits Asia Resources Limited - Singapore
  • Grasim Industreis Ltd - India
  • Ministry of Transport, Egypt
  • Vedanta Resources Plc - India
  • Standard Chartered Bank - UAE
  • Core Mineral Indonesia
  • Sojitz Corporation - Japan
  • TANGEDCO India
  • Mercuria Energy - Indonesia
  • MS Steel International - UAE
  • Vijayanagar Sugar Pvt Ltd - India
  • Aditya Birla Group - India
  • Pinang Coal Indonesia
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Noble Europe Ltd - UK
  • Semirara Mining and Power Corporation, Philippines
  • Bukit Asam (Persero) Tbk - Indonesia
  • Neyveli Lignite Corporation Ltd, - India
  • Panama Canal Authority
  • Minerals Council of Australia
  • Ministry of Finance - Indonesia
  • Thermax Limited - India
  • IBC Asia (S) Pte Ltd
  • OCBC - Singapore
  • CESC Limited - India
  • Coastal Gujarat Power Limited - India
  • Permata Bank - Indonesia
  • Kalimantan Lumbung Energi - Indonesia
  • IOL Indonesia
  • Shenhua Group - China
  • Australian Coal Association
  • SMG Consultants - Indonesia
  • Timah Investasi Mineral - Indoneisa
  • Chettinad Cement Corporation Ltd - India
  • Rudhra Energy - India
  • GAC Shipping (India) Pvt Ltd
  • Eastern Coal Council - USA
  • Banpu Public Company Limited - Thailand
  • Toyota Tsusho Corporation, Japan
  • LBH Netherlands Bv - Netherlands
  • Gujarat Mineral Development Corp Ltd - India
  • Attock Cement Pakistan Limited
  • Reliance Power - India
  • Leighton Contractors Pty Ltd - Australia
  • Oldendorff Carriers - Singapore
  • GVK Power & Infra Limited - India
  • Chamber of Mines of South Africa
  • India Bulls Power Limited - India
  • Energy Link Ltd, New Zealand
  • IEA Clean Coal Centre - UK
  • Intertek Mineral Services - Indonesia
  • Maharashtra Electricity Regulatory Commission - India
  • Adani Power Ltd - India
  • Orica Mining Services - Indonesia
  • Surastha Cement
  • McConnell Dowell - Australia
  • Clarksons - UK
  • Asmin Koalindo Tuhup - Indonesia
  • Videocon Industries ltd - India
  • Central Java Power - Indonesia
  • Cebu Energy, Philippines
  • World Bank
  • Glencore India Pvt. Ltd
  • Star Paper Mills Limited - India
  • J M Baxi & Co - India
  • Sree Jayajothi Cements Limited - India
  • Port Waratah Coal Services - Australia
  • Thriveni
  • New Zealand Coal & Carbon
  • Jatenergy - Australia
  • Singapore Mercantile Exchange
  • Larsen & Toubro Limited - India
  • Xstrata Coal
  • Borneo Indobara - Indonesia
  • MEC Coal - Indonesia
  • PLN Batubara - Indonesia
  • Vizag Seaport Private Limited - India
  • Idemitsu - Japan
  • Sical Logistics Limited - India
  • Sinarmas Energy and Mining - Indonesia
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • BNP Paribas - Singapore
  • Infraline Energy - India
  • Tata Chemicals Ltd - India
  • KEPCO - South Korea
  • Commonwealth Bank - Australia
  • JPMorgan - India
  • International Coal Ventures Pvt Ltd - India
  • Maybank - Singapore
  • Ministry of Mines - Canada
  • Coal India Limited
  • Freeport Indonesia
  • Kobe Steel Ltd - Japan
  • Bangladesh Power Developement Board
  • Semirara Mining Corp, Philippines
  • Manunggal Multi Energi - Indonesia
  • CCIC - Indonesia
  • Merrill Lynch Commodities Europe
  • Deloitte Consulting - India
  • Metalloyd Limited - United Kingdom
  • Thailand Anthracite
  • Bhoruka Overseas - Indonesia
  • Carbofer General Trading SA - India
  • Ince & co LLP
  • AsiaOL BioFuels Corp., Philippines
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • TNPL - India
  • Australian Commodity Traders Exchange
  • Makarim & Taira - Indonesia
  • Xindia Steels Limited - India
  • ETA - Dubai
  • Enel Italy
  • Bangkok Bank PCL
  • Asian Development Bank
  • IMC Shipping - Singapore
  • Pendopo Energi Batubara - Indonesia
  • Mitsui
  • SGS (Thailand) Limited
  • Antam Resourcindo - Indonesia
  • ASAPP Information Group - India
  • Energy Development Corp, Philippines
  • Merrill Lynch Bank
  • Russian Coal LLC
  • Interocean Group of Companies - India
  • Deutsche Bank - India
  • Price Waterhouse Coopers - Russia
  • Uttam Galva Steels Limited - India
  • Central Electricity Authority - India
  • Indo Tambangraya Megah - Indonesia
  • Siam City Cement PLC, Thailand
  • Lanco Infratech Ltd - India
  • Directorate Of Revenue Intelligence - India
  • Indian Oil Corporation Limited
  • Mjunction Services Limited - India
  • Bahari Cakrawala Sebuku - Indonesia
  • WorleyParsons
  • Samsung - South Korea
  • Vitol - Bahrain
  • Cigading International Bulk Terminal - Indonesia
  • Savvy Resources Ltd - HongKong
  • Bhushan Steel Limited - India
  • Jaiprakash Power Ventures ltd
  • IHS Mccloskey Coal Group - USA
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Tata Power - India
  • PTC India Limited - India
  • Indonesian Coal Mining Association
  • Credit Suisse - India
  • HSBC - Hong Kong
  • Kobexindo Tractors - Indoneisa
  • Kohat Cement Company Ltd. - Pakistan
  • Wood Mackenzie - Singapore
  • Cosco
  • Bhatia International Limited - India
  • Global Coal Blending Company Limited - Australia
  • Gupta Coal India Ltd
  • London Commodity Brokers - England
  • Ind-Barath Power Infra Limited - India
  • The State Trading Corporation of India Ltd
  • CNBM International Corporation - China
  • Indorama - Singapore
  • Heidelberg Cement - Germany
  • APGENCO India
  • Mitsubishi Corporation
  • Altura Mining Limited, Indonesia
  • Adaro Indonesia
  • Pipit Mutiara Jaya. PT, Indonesia
  • Indogreen Group - Indonesia
  • Aboitiz Power Corporation - Philippines
  • Coeclerici Indonesia
  • Coal Orbis AG
  • ING Bank NV - Singapore
  • Miang Besar Coal Terminal - Indonesia
  • Mintek Dendrill Indonesia
  • Alfred C Toepfer International GmbH - Germany
  • Arch Coal - USA
  • Thai Mozambique Logistica
  • Karbindo Abesyapradhi - Indoneisa
  • Global Green Power PLC Corporation, Philippines
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • BRS Brokers - Singapore
  • Marubeni Corporation - India
  • Indian School of Mines
  • Holcim Trading Pte Ltd - Singapore
  • TRAFIGURA, South Korea
  • SUEK AG - Indonesia
  • Petrosea - Indonesia
  • Dalmia Cement Bharat India
  • Simpson Spence & Young - Indonesia
  • Fearnleys - India
  • Parliament of New Zealand
  • Qatrana Cement - Jordan
  • Samtan Co., Ltd - South Korea
  • South Luzon Thermal Energy Corporation
  • Kumho Petrochemical, South Korea
  • GHCL Limited - India
  • Peabody Energy - USA
  • GNFC Limited - India
  • Rio Tinto Coal - Australia
  • Barasentosa Lestari - Indonesia
  • Shree Cement - India
  • U S Energy Resources
  • Meenaskhi Energy Private Limited - India
  • Maruti Cements - India
  • Karaikal Port Pvt Ltd - India
  • Renaissance Capital - South Africa
  • OPG Power Generation Pvt Ltd - India
  • PetroVietnam Power Coal Import and Supply Company
  • UOB Asia (HK) Ltd
  • PNOC Exploration Corporation - Philippines
  • Vale Mozambique
  • Sarangani Energy Corporation, Philippines
  • Bulk Trading Sa - Switzerland
  • SN Aboitiz Power Inc, Philippines
  • McKinsey & Co - India
  • The University of Queensland
  • Kideco Jaya Agung - Indonesia
  • Kaltim Prima Coal - Indonesia
  • Gujarat Electricity Regulatory Commission - India
  • Maheswari Brothers Coal Limited - India
  • Krishnapatnam Port Company Ltd. - India
  • Lafarge - France
  • Arutmin Indonesia
  • EMO - The Netherlands
  • Eastern Energy - Thailand
  • Sakthi Sugars Limited - India
  • Indika Energy - Indonesia
  • Riau Bara Harum - Indonesia
  • World Coal - UK
  • Orica Australia Pty. Ltd.
  • Jorong Barutama Greston.PT - Indonesia
  • Humpuss - Indonesia
  • Moodys - Singapore
  • Bayan Resources Tbk. - Indonesia
  • Asia Cement - Taiwan
  • Thiess Contractors Indonesia
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • RBS Sempra - UK
  • ICICI Bank Limited - India
  • Bharathi Cement Corporation - India
  • Jindal Steel & Power Ltd - India
  • Mercator Lines Limited - India
  • Mechel - Russia
  • Sucofindo - Indonesia
  • Berau Coal - Indonesia
  • Cardiff University - UK
  • TNB Fuel Sdn Bhd - Malaysia
  • Sindya Power Generating Company Private Ltd
  • Total Coal South Africa
  • Global Business Power Corporation, Philippines
  • Cement Manufacturers Association - India
  • UBS Singapore
  • Goldman Sachs - Singapore
  • Anglo American - United Kingdom
  • Bukit Makmur.PT - Indonesia
  • Gujarat Sidhee Cement - India
  • Geoservices-GeoAssay Lab
  • Iligan Light & Power Inc, Philippines
  • JPower - Japan
  • DBS Bank - Singapore
  • GMR Energy Limited - India
  • Mitra SK Pvt Ltd - India
  • SRK Consulting
  • Romanian Commodities Exchange
  • ANZ Bank - Australia
  • SASOL - South Africa
  • Tanito Harum - Indonesia
  • Barclays Capital - USA
  • globalCOAL - UK
  • Baramulti Group, Indonesia
  • Platts
  • Globalindo Alam Lestari - Indonesia
  • Electricity Generating Authority of Thailand
  • ACC Limited - India
  • Posco Energy - South Korea
  • PetroVietnam
  • Bank of China, Malaysia
  • Kepco SPC Power Corporation, Philippines
  • Formosa Plastics Group - Taiwan
  • Bank of America
  • Japan Coal Energy Center
  • NTPC Limited - India
  • Billiton Holdings Pty Ltd - Australia
  • Argus Media - Singapore
  • Kapuas Tunggal Persada - Indonesia
  • CIMB Investment Bank - Malaysia