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Monday, 14 July 14
THE END OF THE ERA OF HEAVY FUEL OIL IN MARITIME SHIPPING - ICCT
 KNOWLEDGE TO ELEVATE
Since the 1960s, heavy fuel oil (HFO) has been the king of marine fuels. Viscous, dirty, yet inexpensive and widely available, HFO propelled a long period of robust growth in international shipping, which carries over 90% of intercontinental trade by volume each year. For many, it is the lifeblood of the maritime shipping industry.
But HFO’s low price does not reflect its impacts on the environment and human health. The sulfur content of HFO can be up to 35,000 parts per million. It is the reason that maritime shipping accounts for 8% of global emissions of sulfur dioxide (SO2), making the industry an important source for acid rain as well as respiratory diseases. In some populous port cities, such as Hong Kong, shipping is the largest single source of SO2 emissions as well as emissions of particulate matter (PM), which are directly tied to the sulfur content of fuel. By one estimate, PM emissions from maritime shipping led to 87,000 premature deaths worldwide in 2012.
The International Maritime Organization (IMO), the governing body of international shipping, has made a decisive effort to diversify the industry away from HFO into cleaner fuels with less harmful effects on the environment and human health. Effective in 2015, ships operated within the Emission Control Areas (ECAs) covering the Economic Exclusive Zone of North America, the Baltic Sea, the North Sea, and the English Channel will begin to use Marine Gas Oil (MGO) with allowable sulfur content up to 1,000 ppm. Starting from 2020, ships sailing outside ECAs will switch to Marine Diesel Oil (MDO) with permitted sulfur content up to 5,000 ppm.*
That tectonic shift also creates openings for a variety of new fuels. Liquefied nature gas (LNG), newly abundant and relatively affordable, is attracting the attention of many shipping companies. Although the lack of infrastructure and the uncertainty of future prices have slowed the “dash to gas,” many expect LNG to establish itself as one of major alternatives to HFO in the future. Lloyds Registry, a shipping classification society, expects LNG to take 11% of the market share in 2030.
Meanwhile, Stena Teknik, a Swedish company, is testing methanol, another natural gas product, but one that requires less storage space in a ship and is relatively easier to handle. While natural gas-based fuels may sometimes offer questionable climate benefits, due to methane leakage concerns, the IMO’s low-sulfur regulation may create needed openings for other zero-sulfur, low-carbon marine fuels. Tests using fuel cells on the Viking Lady, an offshore supply ship, demonstrated promising results.
Wind kites and solar panels have already been installed on numerous ships to supplement marine diesel engines. Even HFO will not completely disappear from the menu of marine fuels. Combined with scrubbers that capture more than 99% of the sulfur from the exhaust gas, HFO will continue to play an important role. Lloyds Registry reckons that HFO will represent about 40% of fuel use by 2030.
The shift to cleaner but pricier low-sulfur fuels is likely to heighten interest in the “fifth fuel”: energy efficiency. Historically, the maritime shipping industry, where energy often accounts for over half of operating costs, has responded to escalating fuel prices with innovative energy-saving strategies. To cite a recent example: in 2008, as fuel prices went through the roof, shipping lines cut their operating speeds by as much as 50%, helping many companies stay afloat amid one of the worst downturns in history. In an analysis of satellite data on ship operations, we’ve estimated that the industry can further slash 100 million ton of fuel use by 2030 through wider implementation of energy-saving measures that were adopted by industry leaders in 2011.
This is in addition to savings of 90 million tons of fuel because of the Energy Efficiency Design Index (EEDI), a mandatory program that will require new ships to achieve certain efficiency targets beginning in 2015.
The continued diversification of marine fuels and improvements in energy efficiency have important implications. First and foremost, they may alleviate concerns about the availability of low-sulfur fuels. Figure 1 illustrates one possible scenario, using our forecast on future marine fuel consumption and energy efficiency improvements as well as Lloyds Registry’s estimate of market shares for HFO and LNG. The efficiency improvement of the legacy fleet is the greatest force driving down the need for low-sulfur fuels, equivalent to adding about 110 “negatons” of fuel, or almost 24% of projected demand. HFO combined with scrubbers, EEDI, and distillates (MGO plus MDO) are almost neck and neck, each representing about 20% of fuel use in the chart. LNG is coming of age, with its share doubling between 2020 and 2030. Other fuels, such as renewables, fuel cells, and biofuels, are expected to hold only small market shares in 2030.
Second, the new fuels are on a collision course with IMO safety regulations concerning flashpoint, the temperature at which a fuel can vaporize to form an ignitable mixture in air.
The IMO currently requires marine fuels to have a minimum flashpoint of 60°C. But low-sulfur fuels have a lower flashpoint (50° to 55°C), meaning that they are “off-spec” and cannot be used under the IMO rule. The flashpoint requirement, which went into effect in 1976, was meant to provide a large margin of error to ensure the temperature of the engine room (normally below 45°C) does not exceed the flashpoint in any circumstance. But according to industry heavyweights such as Maersk and BIMCO, modern technologies such as advanced ventilation systems provide an adequate safety margin, and they argue that keeping the flashpoint requirement will cause the industry to miss the opportunity represented by the increased availability of low-sulfur, low-flashpoint fuels. Industry and member states such as the U.S. are urging the IMO to accelerate its consideration of an amendment to the flashpoint requirement.
By: Haifeng Wang / The International Council of Clean Transportation
*Implementation of the requirement is subject to a review of fuel availability to be completed by 2016.
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Tuesday, 08 April 14
PORT OF NEWCASTLE SHIPPED 2.90 MMT OF POWER PLANT AND SEMI-SOFT COKING COAL IN A WEEK
COALspot.com: In the week ended 07:00 hours 7 April 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensla ...
Tuesday, 08 April 14
RBCT SHIPPED 53.79% MORE COAL IN MARCH 2014
COALspot.com: South Africa's Richards Bay Coal Terminal (RBCT) the single largest export coal terminal in the world, shipped 6.90 million to ...
Tuesday, 08 April 14
APRIL 2014 INDONESIAN COAL PRICE REFERENCE DROPS TO LOWEST SINCE JANUARY 2010
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia has revised down again the coal bench mark price by US$ 2.20 / MT to ...
Tuesday, 08 April 14
TALKING ABOUT A ONE-HORSE RACE - GEORGE LAZARIDIS
Ever since the onslaught of the financial crisis, China along with the other BRIICs, have played a pivotal role in supporting global economic gr ...
Monday, 07 April 14
WEEKLY SUB-BIT FOB INDONESIA COAL SWAP CLAIMS EDGE FALL; TREND NEGATIVE
COALspot.com: Indonesian coal swaps for average Q4’ 2014 lost on month, day and on week according to AsiaClear OTC coal swap's reports ...
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- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Iligan Light & Power Inc, Philippines
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- Electricity Authority, New Zealand
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Bhatia International Limited - India
- Indo Tambangraya Megah - Indonesia
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- PowerSource Philippines DevCo
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- Bank of Tokyo Mitsubishi UFJ Ltd
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- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Finance - Indonesia
- Tamil Nadu electricity Board
- Directorate General of MIneral and Coal - Indonesia
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- Mercuria Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Orica Mining Services - Indonesia
- Parry Sugars Refinery, India
- Jindal Steel & Power Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- Australian Commodity Traders Exchange
- Mjunction Services Limited - India
- White Energy Company Limited
- Baramulti Group, Indonesia
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- CNBM International Corporation - China
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- GMR Energy Limited - India
- Goldman Sachs - Singapore
- Chettinad Cement Corporation Ltd - India
- Indian Oil Corporation Limited
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Interocean Group of Companies - India
- Ministry of Mines - Canada
- Romanian Commodities Exchange
- LBH Netherlands Bv - Netherlands
- Ceylon Electricity Board - Sri Lanka
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- Maheswari Brothers Coal Limited - India
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- Minerals Council of Australia
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- New Zealand Coal & Carbon
- Medco Energi Mining Internasional
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parliament of New Zealand
- Bayan Resources Tbk. - Indonesia
- The State Trading Corporation of India Ltd
- Larsen & Toubro Limited - India
- Leighton Contractors Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Standard Chartered Bank - UAE
- Madhucon Powers Ltd - India
- Indogreen Group - Indonesia
- Economic Council, Georgia
- ASAPP Information Group - India
- India Bulls Power Limited - India
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- Vedanta Resources Plc - India
- Deloitte Consulting - India
- Indian Energy Exchange, India
- Australian Coal Association
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Latin American Coal - Colombia
- Kapuas Tunggal Persada - Indonesia
- Salva Resources Pvt Ltd - India
- Siam City Cement - Thailand
- Riau Bara Harum - Indonesia
- Agrawal Coal Company - India
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Chamber of Mines of South Africa
- Gujarat Sidhee Cement - India
- Makarim & Taira - Indonesia
- PTC India Limited - India
- CIMB Investment Bank - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Renaissance Capital - South Africa
- Orica Australia Pty. Ltd.
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Bhoruka Overseas - Indonesia
- The University of Queensland
- Mercator Lines Limited - India
- Indonesian Coal Mining Association
- Central Java Power - Indonesia
- Sakthi Sugars Limited - India
- Ministry of Transport, Egypt
- Kaltim Prima Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
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- Samtan Co., Ltd - South Korea
- Antam Resourcindo - Indonesia
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- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Planning Commission, India
- Attock Cement Pakistan Limited
- European Bulk Services B.V. - Netherlands
- Bhushan Steel Limited - India
- Marubeni Corporation - India
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- GAC Shipping (India) Pvt Ltd
- Ind-Barath Power Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- Coastal Gujarat Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- Heidelberg Cement - Germany
- Edison Trading Spa - Italy
- London Commodity Brokers - England
- McConnell Dowell - Australia
- TeaM Sual Corporation - Philippines
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Global Business Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
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- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- Wilmar Investment Holdings
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- TNB Fuel Sdn Bhd - Malaysia
- Trasteel International SA, Italy
- Kobexindo Tractors - Indoneisa
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Therma Luzon, Inc, Philippines
- Mintek Dendrill Indonesia
- Bangladesh Power Developement Board
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Siam City Cement PLC, Thailand
- Gujarat Mineral Development Corp Ltd - India
- Anglo American - United Kingdom
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Petron Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Holcim Trading Pte Ltd - Singapore
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