Pathways. SMTF 18 th September 2019 Our heritage - It started with a - PowerPoint PPT Presentation

Decarbonisation Transition Pathways. SMTF 18 th September 2019

Our heritage - It started with a cup of coffee… Lloyd’s Register was set up in 1760 by customers of Edward Lloyd’s coffee house in London and it maintains a happy relationship between tradition and foresight. 2

Our heritage - It started with a cup of coffee… 3

Who we are - Safety, Quality & Performance The Lloyd’s Register group is a global organisation with a mission to protect life and property and advance transportation and engineering education and research. We offer services to the marine, energy and management systems services across a wide range of sectors – focused on improving safety, quality and performance. Our Values Our vision ➢ Trustworthy Year by year we will continuously ➢ Accountable improve in helping our clients ➢ Courageous ensure supply chains are safe, ➢ Open minded responsible and sustainable. ➢ Spirited 4

Objective. To identify the potential future fuels, indicate their relevance to decarbonisation, and highlight the potential pathways to their integration in the shipping industry. Lloyd's Register 5

Key Messages. • Decarbonisation requires transition away from fossil- based fuels • Efficiency gains and renewables energy use onboard are available now • Research and development, pilots and prototypes are critical • Compound knowledge by achieving small goals • Novelty and complexity in fuels and technology Lloyd's Register 6

Why are zero-carbon fuels needed for full decarbonisation? Pathways for international shipping’s CO 2 emissions To achieve an absolute 1400 reduction in GHG 1200 of at least 50% by 2050. 1000 Million tonnes of CO 2 800 • This equates to around 85% reduction in carbon intensity 600 • Efficiency and renewables are not enough 400 to reach the goal IF POSSIBLE 200 • Zero-emission vessels need to be entering 0 the fleet from 2030 2008 2018 2028 2038 2048 2058 2068 2078 50% reduction by 2050 (85% Business as usual 100% reduction by 2050 reduction in carbon intensity) Lloyd's Register 7

ZERO-EMISSION VESSELS: THE STORY SO FAR. Developing new knowledge and tools to help the industry understand the complexities of the challenge. Low carbon pathways 2050: how might shipping be required • to change? Zero-Emission Vessels 2030: what is the economic viability? • Zero-Emission Vessels: Transition Pathways: • What conditions are required to achieve the goal? Safety considerations: How do we safely use • zero-carbon fuels? Fuel Production cost estimates & assumptions: • What are the relative production costs? Lloyd's Register 8

COLLABORATION. How we play our part? Lloyd's Register 9

What do we mean by zero-carbon fuels? Transition to zero emission vessels means phasing out fossil based fuels. Zero-carbon fuels Energy source Methanol Gas oil Hydrogen Ammonia Electricity Natural gas with CCS NG-H 2 NG-NH 3 Biomass bio-methanol bio-gas oil Renewable e-methanol e-gas oil e-H 2 e-NH 3 batteries electricity Lloyd's Register 10

Fuel pathways for transitioning to zero-carbon fuels. Enabler Fuel Relative cost Limitations Hydrogen & Ammonia Their price may vary between: Availability of cheap natural gas Projected limitation of fossil- produced from natural gas fuel and CCS energy capacity 50 to 105 $/MWh under the 1.5 o C pathway Biofuels Their price may vary between: Technology known Sustainability (non-complex, non-novel) 25 to 95 $/MWh Production volume Can be used as blends Electro fuels Their price may vary between: Flexible and distributed Electro-fuel producers need infrastructure to enter the marine market 20 to 130 $/MWh Supply Lloyd's Register 11

Common elements of the three pathways. Supply & bunkering Civil society Safety infrastructure Price Policy-makers Financiers Propulsion Environmental Ports Fuel production Design / operation consumer groups Actors Market factors Propulsion Non-market & Landscape & Policies & Institutions environmental factors external factors Lloyd's Register 12

EFFICIENCY GAINS AND ONBOARD RENEWABLE ENERGY. How to integrate alternative energy generators? How to reduce the energy demand on board? Wind Propulsion Propulsion efficiency Systems Hull Air optimisation lubrication Lloyd's Register 13

Delivered efficiency gains and onboard renewable energy. First installation of Flettner rotor in a product tanker LR performance monitoring - 2018 Lloyd's Register 14

Delivered efficiency gains and onboard renewable energy. Air lubrication system on Carnival Diamond Princess fuel savings verified by LR - 2018 Lloyd's Register 15

Delivered efficiency gains and onboard renewable energy. Viking Grace - first wind – assist passenger ship in the world, LR approved - 2018 Lloyd's Register 16

Delivered efficiency gains and onboard renewable energy. Viking Grace - first wind – assist Air lubrication passenger ship in the world, LR system on Amalienborg fuel savings verified approved - 2018 by LR - 2016 Lloyd's Register 17

Ammonia (NH 3 ): fuel characteristics. • Ammonia is a colourless, flammable, highly toxic and corrosive gas • Flame speed is low (0.07 m/s) • Formation of NOx during consumption • Highly soluble in water • Ammonia has a low flammability (15-28%) • Latent heat of evaporation is high meaning no reliquification would be required Lloyd's Register 18

BIOFUELS: FUEL CHARACTERISTICS Functionally they are equivalent to petroleum-derived fuels and compatible with existing machinery and infrastructure. Biodiesels have Compatibility a lower energy Can be used and on-board fuel density typically as blends with management 38 MJ/kg compare conventional fuels is essential to d to 48 MJ/kg manage any risks Lloyd's Register 19

Delivered biofuel project. Project deliverables: • Establish FAME and blend interaction with marine environment over time. • Establish impact on Fuel delivery system and engine when used in an unmodified Engine • Establish emission impact of FAME and blends when used in an unmodified Engine 3.5 MW Auxiliary engine to provide Project partners: FAME (Fatty Ester electric power Maersk, Shell 4000 l lubrication Methyl Ester) Trial and Lloyd’s Register oil 0.4 m 3 /h fuel consumption Maersk Kalmar Lloyd's Register 20

Methanol (Me-OH): Fuel characteristics. • Not a zero-carbon fuel • Boiling point 64.7 °C at atmospheric pressure • It is a neutrally buoyant fuel • Burns outside in the visible range • Requires specialized fire detection and fire extinguishing equipment Lloyd's Register 21

Delivered Vessel: Methanol. Lloyd’s Register’s Deliverables: • Classification of the ship with methanol propulsion system • Facilitation of the risk studies, controlling the risk register, and verifying recommendation closures • Providing advice on fire fighting, witnessing sea trails, supporting client with regulators and developing the bunkering procedures. Project Partners: Convert a 1,500 passenger, First ship methanol Stena 240 m long ferry Wartsila to methanol powered vessel! Methanex propulsion Lloyd’s Register by early 2015 Stena Germanica Lloyd's Register 22

Hydrogen (H 2 ) : fuel characteristics. • Zero carbon fuel • High pressure containment (900 bar) or low temperature at -253 °C • Wide flammability limit (04 - 75%) and low ignition energy (0.0011 mJ) • High flame speed • Permeability combined with LEL and ignition energy requires careful consideration • High positive buoyancy – ventilation arrangements • Boiling point of oxygen is -183 ° C and nitrogen −195.79 °C • Ideal reliquification of hydrogen is ~x12 greater than that of LNG Lloyd's Register 23

BATTERIES: TECHNOLOGY CHARACTERISTICS. Batteries have an important role in energy load/ demand management onboard. Variation Performance in chemistry, degradation design and at adverse construction temperatures Venting Thermal of toxic runway is flammable a prominent gas, fire and failure mode explosion risks Lloyd's Register 24

Delivered hybrid Li-ion battery systems. KOTUG’s hybrid tugs, CalMac’s hybrid ferries, Scandlines ’ RT Adriaan, RT Evolution MV Hallaig and MV Lochinvar hybrid ferries (x4) and RT Emotion Four hybrid yachts An Ice Class Ferry, operating ForSea Ferries (for various builders on LNG, batteries & solar hybrid ferries (x2) and owners) auxiliary power, or on diesel Lloyd's Register 25

Comparative energy equivalence. 16 LNG Methanol Ammonia Mass 14 Mass ~x0.8 Mass ~x1.8 Mass ~x1.8 12 Volume ~x2 Volume ~x2.4 Volume ~x2.9 10 8 6 Hydrogen Hydrogen Hydrogen 350 bar -253 °C 4 900 bar Mass ~x0.3 Mass ~x0.3 Mass ~x0.3 2 Volume ~x15.5 Volume ~x6.7 Volume ~x3.3 0 HFO and LNG Methanol Ammonia Hydrogen - Hydrogen Hydrogen MGO 253oC 900 bar 350 bar 350 bar 900 bar Lloyd's Register 26