COALspot.com keeps you connected across the coal world
  • SEPTEMBER 2019 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 65.79 A TON
  • SHARE YOUR CORPORATE COAL & SHIPPING NEWS WITH US - NEWS@COALSPOT.COM
  • WE WELCOME ARTICLE SUBMISSIONS FROM EXPERTS IN THE AREAS OF COAL, MINING, SHIPPING, ETC.

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

Wednesday, 11 September 19
SHIPPING MARKET INSIGHT - INTERMODAL
We are going through one of the rare instances where we see optimism building in the dry bulk industry and, as the momentum is still going, the bel ...


Monday, 09 September 19
INDIAN COMPANIES READY TO INVEST IN DEVELOPMENT OF NEW COAL DEPOSITS IN RUSSIA'S YAKUTIA - TASS
Indian metallurgical companies, which received trial batches of coal from Kolmar mining company, are satisfied with the quality of the products and ...


Monday, 09 September 19
COLOMBIA COAL OUTPUT DOWN YEAR-ON-YEAR IN 2ND QUARTER - REUTERS
Colombia, the world’s fifth-largest exporter of coal, produced 18.9 million tonnes of the fuel in the second quarter, down 4.5% from the same ...


Monday, 09 September 19
ULTRAMAX: ASIA A 58,000-TONNER FIXED DELIVERY FUZHOU, VIA INDONESIA, REDELIVERY CHINA, AT $12,800
Capesize 0px The market reached new heights this week as the 5TC topped $38,014, a level not seen in the sector since 2013. Fridays 5TC closed ...


Wednesday, 04 September 19
SHIPPING MARKET INSIGHT - INTERMODAL
For yet another time, the market seems to have its own drivers. After a very disappointing first half, the recent recovery in the shipping market i ...


   1 2 3 4 5   
Showing 11 to 15 news of total 5538
News by Category
Popular News
 
Total Members : 26,487
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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