Erik Thun Our path towards climate smarter shipping Nautiska - - PowerPoint PPT Presentation

Erik Thun – Our path towards climate smarter shipping

Nautiska Föreningen, 27 November 2018

Joakim Lund

CCO, Thun Tankers

Thun Tankers part of Erik Thun AB

Our scope has always been tailor making sustainable business solutions

• Erik Thun is a family business since 1938.
• Business areas: - Shipping – 49 fully owned ships – 12 Ships on order
• Tankers, dry cargo, self unloaders, cement vessels
• Most ships developed and designed in-house and built in Holland and China
• Over time we have continuously developed and tailor made modern

vessels based on customers requirements with the aim to achieve better value for our clients.

• Sustainability has been our focus long before the environmental focus

was top on the agenda. Not using more resources then needed has always been a critical success factor.

• They whole idea about our current business model is to make the

coastal shipping business more effective. This is the main scope in the design process of our vessels. The scope has always been long term.

Our business

Erik Thun AB Tankers Thun Tankers Dry Cargo Self- Unloaders Citadel Cement Carriers JT Cement AS Inland waterways Avatar Port Agencies OP Ship Aviation Meat processing Direkt Chark AB

Thun Tankers

Erik Thun have owned and operated tankers since the fifties Thun Tankers in it´s current form was established 19th of Nov 2012

Present Tanker Fleet

Presence in both the clean and dirty product petroleum products tanker segment

Key success factors – Thun Tankers

Every port call is an important and direct meeting with our clients Many vessels to choose - we can offer reliable logistics with ships in the right position at the requested time. Being a financially strong and with a long term view on shipping we can offer high quality and sustainable logistics. We treat every port call as a direct and important meeting with our clients. With more than 1800 port calls annually our committed and experienced staff onboard as well as ashore plays an important role in ensuring fast, safe and smooth logistics. Our modern and efficient vessels, designed with experience for the intense coastal trade, underlines our ambition to help

• ur customers grow their business.

Business Overview

Thun Tankers in the value chain

• Regional trade – Most shipments in this size is between destinations within the region. Due to

freight economics cargoes in this size with destination outside the region are often shipped on larger parcel carriers.

• From Refinery to end user – A high percentage of shipments in this size are ready made and

sensitive products going from refinery to end user.

• Inter refinery or terminal trade –Frequent shipments of blend stock, such as petrol and diesel

components, to complete the recipe.

• Feeding volume to niche ports – Restricted ports or berths and/or places where consumption is

limited gives the segment an upside.

• Short, intense voyages – A vessel in this size spends most of its time in port.

• Formed in 2013
• Office in Gothenburg
• 9 Members
• 39 Vessels - 6,500 dwt to 37,000 dwt
• 13 Newbuilding's on order
• The fleet will consist of 11 Dual fueled vessels
• In 2017 the GTA fleet

– Transported 13,3 mill tons – Performed 1540 voyages – Called 3200 ports

• Cooperation in the Alliance extends beyond

commercial and members also share knowledge within quality, technical and operational best practices

Thun Tankers – part of Gothia Tanker Alliance

Marketing platform established to widen our client offering

Present Gothia Tanker Alliance fleet

Our path towards climate smarter shipping

We are now tailor making a new generation of tankers based on our clients demand Design based on and exceeding forth coming regulations

• Tightening regulations on bunker fuel

– 2005 EU Sulphur Directive, ECA in the Baltic, max 1,5% sulphur – 2010 Max 0,1% sulphur in EU ports – 2015 SECA in the North Sea, max 0,1% sulphur

• Society and political environment

– Sustainability, climate change and public health issues high on the agenda in Europe – Several public reports shows direct and high cost savings for society

• We strive to help our client to sustain and grow their business

– Permits for refinery expansions conditioned by reduced emissions including from logistics / transportation – Suburban areas closing in on terminals and depots with pressure to reduce emissions, stench and noise – Continued trade to niche ports and densely populated areas where emission restrictions are or will be in place

Why we decided that some of our new building will be dual fueled

The process started in 2012

Why didn´t we go for another emission reducing solution?

We have found LNG to be the best suited, future fuel for our type of trade SOx NOx CO2 Particles MGO Yes

• Scrubber

Yes

• SCA

(catalyst)

• Yes
• Methanol

Yes Yes

• 40%

Yes LNG Yes Yes

• 50%

Yes Emission reduction when sailing on LNG: CO2 50 % *) NOx 85 % SOx 99 % Particels 99 %

Scrubbers

• Scrubber and SCA hard to combine.
• Only solves one environmental issue
• Not financially good alternative for coastal vessels with high % port

in port

• Loss of cargo intake – big impact for smaller vessels
• Open loop solution not an option when trading in restricted areas
• Difficulties to get rid of sludge / rest products

Methanol

• Low energy content
• We consider it dangerous in an engine room with wide flash point

and heavier than air

• Toxic fuel, not good for a safe working environment

We have found LNG to be the only existing fuel that complies with all new regulations needed for our trade. The EU-politicians are very clear that they want regional shipping to go forward in this direction.

Emission reducing

*) 0% CO2 if Biogas

What has happened since we decided to invest in dual fueled vessel

• Regulations
• IMO max 0,5% sulphur bunker by 2020
• IMO agenda to reduce vessels GHG with 50% by 2050
• Focus on public health risks due to NOX emissions and

particulates

• Baltic Sea to become NECA-Area incl. TIER III requirements for

new vessels by 01.01.2021

• EU have set a roadmap to gradually reduce the GHG emission.

To be reduced by 80-90% by 2050 compared to 1990 levels

• Ports
• Vast increase of ports in the EU implementing discounts for

climate smart vessels

• Clients
• A majority of all dual fuelled new-buildings have secured long

term contracts as a result of increased client demand/benefits

• Bunkering
• Infrastructure for LNG bunkering in Europe have matured with

several strategic and fast places for LNG bunkering

• Several new bunker boats in operation
• Availability of LNG increasing

LNG bunkering has become every day operation Our partner Furetank bunkering Biogas in Gothenburg

Emissions to air and external costs to society

Swedish IVL estimates that one LNG propulled tanker saves society approx 2 million Euro/year

• Study done in Gothenburg

Focus on energy saving

LNG is one way to meet the future…

…but several other measures have been taken on all our new buildings to reduce our environmental footprint and meet the future requirements

We started our path by building the worlds first dry cargo ships using LNG as a fuel

With a maturing infrastructure for LNG we are now building dual fueled tankers

Hull / Type DWT Yard Delivery date Thun Venern - LNG 18000 Avic Delivered Thun L-Class 17500 Avic 2019-04-08 Thun L-Class 17500 Avic 2019-06-11 Thun L-Class 17500 Avic 2019-10-15 Thun L-Class 17500 Avic 2019-12-17 Thun L-Class 17500 Avic 2020-02-28 Thun Eos -LNG 7999 FS 2018-12-15 Thun E-Class - LNG 7999 FS 2019-03 Thun E-Class - LNG 7999 FS 2021-01 Thun E-Class - LNG 7999 FS 2021-04 Cement carrier -LNG 7000 FS 2019-11

Current order book – Erik Thun

Largest orderbook in the history of the company - All vessels ordered for specific industrial projects Building ongoing both in China and in the Netherlands - More projects in the pipeline

E-Class

Evolved design of our existing tankers with focus on efficiency and environment Four dual fueled tankers on order with delivery 2018-2021

The E-Class

Built to meet and exceed all forthcoming and using all the knowledge from previous vessels

”Thun Venern”

Technically and commercially managed by Furetank to gain synergies Delivered 27th September – Now in trade in Europe

L-Class – Five energy efficent sisters on order

Delivery from April 2019 until April 2020 First L-Class was launched 24th November

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