PAX_SOLUTIONS IMO2020 EMISSIONS MANAGEMENT October 2018 OUTLINE - - PowerPoint PPT Presentation

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PAX_SOLUTIONS IMO2020 EMISSIONS MANAGEMENT October 2018 OUTLINE - - PowerPoint PPT Presentation

PAX_SOLUTIONS IMO2020 EMISSIONS MANAGEMENT October 2018 OUTLINE IMO2020 BACKGROUND Effective 1st Jan 2020, IMO will impose a 100% compliance to 0.5% Sulphur emissions globally. Compliance monitored by port state authorities (USCG etc).


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SLIDE 1

PAX_SOLUTIONS

IMO2020 EMISSIONS MANAGEMENT

October 2018

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SLIDE 2

OUTLINE

IMO2020 BACKGROUND

Effective 1st Jan 2020, IMO will impose a 100% compliance to 0.5% Sulphur emissions globally. Compliance monitored by port state authorities (USCG etc). Non-compliant vessels to prove they could not secure compliant fuels. Enforcement methods and penalties (vessel detention, fines or commercial restrictions) are not

  • finalized. We await Marine Environment Protection Committee (MEPC) 22-26th Oct 2018 for more updates

ECONOMICS

  • Availability of low sulphur fuel
  • Oil price uncertainty
  • Cost of EGCS and EGR/SCR
  • Market based measures

EMISSIONS REGULATIONS

  • SOx, NOx, CO2, PM
  • Emission Control Areas (ECAs)
  • Local emissions regulations
  • CARB, EU, Chinese
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SLIDE 3

Economics - Marine Fuel Demand

  • Significant change in demand

profile overnight from 1 Jan 2020.

  • Approximately 3million

barrel/day (155million tonnes/year) switch.

  • Predominantly met with MGO

and 0.1/0.5% S fuels.

  • LNG and other alternative

fuels may play increasing role.

Courtesy: Shell

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SLIDE 4

Economics - Compliance Options

Fuels/Technologies Pros Cons Low sulphur distillate fuels

  • Widely used with few limitations
  • Very low CAPEX and small modifications
  • Price difference compared to HFO
  • Low viscosity and lubricity
  • Existing vessels may need modifications in

FO storage, systems, boiler, etc. Exhaust Gas Cleaning Systems (EGCS)

  • Reduces both SOX and PM
  • Continue using low cost HFO
  • Pay back period accelerated with high

price differential

  • High installation costs
  • Relatively new marine technology
  • Limitations on washwater discharge
  • Fuel oil availability after 2020?

LNG and other alternative fuels

  • Clean fuel meets 0.1% SOX requirements
  • Potential low fuel costs
  • High CAPEX
  • Limited bunkering infrastructure
  • Lower energy density -need higher volume

tank Low sulphur ‘hybrid’ fuels

  • Price expected lower than distillate fuel oil
  • No modifications required for existing

vessels

  • Low Sulphur content, but behave like

conventional fuels

  • Limited availability
  • Not yet categorized in ISO:8217 marine

fuel standard

  • Compatibility/stability issues?
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SLIDE 5

EMISSIONS REGULATIONS – GLOBAL & REGIONAL

Effective & Phase-in Dates

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SLIDE 6

EMISSIONS REGULATIONS - On the Horizon?

  • Possible ban on carriage of fuels over 0.5%S
  • “… Given the challenges related to detecting violations … the

most effective way … ban the carriage of fuel exceeding 0.5%S …”

  • Carriage ban agreed at IMO PPR 5 and forwarded to MEPC as

urgent item Courtesy: ABS

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SLIDE 7

PAX_SOLUTIONS

IMO2020 EMISSIONS MANAGEMENT CUSTOMER PRESENTATION

Corporate Office : No. 1 Kim Seng Promenade #07-02 Singapore 237994 Tel : (65) 6737 7300 Email : marketing@paxocean.com

PaxOcean Group

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SLIDE 8

Kuok Group Worldwide

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SLIDE 9

PaxOcean Group Structure

Kuok Singapore Limited

SINGAPORE CHINA CHINA BATAM

Marketing & Commercial Procurement Engineering & Design

PaxOcean Engineering Pte Ltd

PaxOcean Holdings Pte Ltd (PHPL) PaxOcean Batam PaxOcean Zhoushan PaxOcean Zhuhai PaxOcean Singapore

Newbuilding Ship Repairs & Conversion O&G and Offshore Activities Legend

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SLIDE 10

SHIPYARDS INTRODUCTION

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SLIDE 11

PaxOcean Group of Shipyards

PaxOcean Singapore PaxOcean Zhuhai PaxOcean Graha

Zhoushan, China Zhuhai, China Singapore Batam, Indonesia

PaxOcean Zhoushan PaxOcean Pertama PaxOcean Nanindah

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SLIDE 12

PaxOcean Singapore Yard

Total Area: 110,000 m2

Docking up to Handymax-Sized Vessels Afloat repairs up to Panamax-Sized Vessels

Floating Dock

DOCK LENGTH WIDTH TLC

  • No. 1

122 M 22 M 3,400

  • No. 2

195 M 34 M 16,000

  • No. 3

187 M 36 M 16,000

1 2 3

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SLIDE 13

PaxOcean Pertama Yard (Batam)

Total Area: 272,000 m2 Floating Dock

DOCK LENGTH WIDTH TLC

  • No. 1

97 M 24 M 3,200

  • No. 2

186 M 36 M 16,000 Dock V 235 M 40 M 22,000

Docking up to Panamax-Sized Vessels Afloat repairs up to VLCC-Sized Vessels

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SLIDE 14

PaxOcean Graha Yard (Batam)

Total Area: 495,000 m2

Building Berths 3 nos. 80 M x 80 M 2 nos. 170 M x 50 M Berth 455 M Equipment Mobile cranes up to 1,250 T

Building Berths

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SLIDE 15

PaxOcean Nanindah Yard (Batam)

Total Area: 546,000 m2

Berthing Wharf 2,500 M Workshop Area 31,900 M2 Equipment Cranes up to 600 tons SWL

Building Berths

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SLIDE 16

PaxOcean Zhoushan Yard (China)

Total Area: 800,000 m2 Graving Dock

DOCK LENGTH WIDTH Central 400 M 106 M West 380 M 80 M

900T Crane

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SLIDE 17

PaxOcean Zhuhai Yard (China)

Total Area: 200,000 m2 Covered Launchways

LAUNCHWAY LENGTH WIDTH

  • No. 1

210 M 27 M

  • No. 2

210 M 27 M

  • No. 3

110 M 38 M

3 1 2

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SLIDE 18

Group Achievement

NEWBUILDING

600+ Vessels and Barges

Across major vessel classes, including

15 Jack up Rigs and Liftboats

“Aurora V” 56m RoRo/Passenger Ship “Ocean Swagman” 8,000m2 Livestock Carrier Jack-Up Rig L209 CJ46 Drilling Jack-Up Barge

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SLIDE 19

Group Achievement

CONVERSIONS

Successfully delivered

46 Conversions

“Posh Bawean” Upgrading to Accommodation Vessel “Sea Good 101” Tanker to FPSO “Pearl River” Lengthening of Vessel “Frontier Duchess” Drillship Upgrading

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SLIDE 20

Group Achievement

REPAIRS

Repaired over 2000 Vessels

“COSL 942” Jack Up Drilling Rig “Ore Brasil” 400,000 DWT VLOC “Leiv Eiriksson” Heavy Dredger

  • Avg. 370 vessels per year

“Rio Illapel” 47,020 DWT Vehicle Carrier CSAV

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SLIDE 21

PAX_SOLUTIONS – BWTS TRACK RECORD (RECENT 2 YEARS)

YEAR COMPANY VESSEL TYPE DWT COUNTRY MAKER SHIPYARDS

2017 Solvang ASA LPGC 18,110 Norway Optimarin PaxOcean Singapore 2017 Hartmann Schiffahrts Gmbg & Co KG LPGC 9,133 Germany Qingdao Headway Technology PaxOcean Singapore 2018 Mediterranean Shipping Company Container 117,247 Italy Alfa Lava PaxOcean Zhoushan 2018 Mediterranean Shipping Company Container 73,355 Italy Alfa Lava PaxOcean Zhoushan 2018 Ahrenkiel Steamship GmbH & Co.KG Container 55,313 Germany Optimarin PaxOcean Zhoushan 2018 SDSC Ship Management Co., Ltd. Bulk Carrier 94,710 China Sun-Rui PaxOcean Zhoushan 2018 SITC Ships Management Co.,Ltd Bulk Carrier 76,202 China Sun-Rui PaxOcean Zhoushan 2018 John T. Essberger Gmbh & Co. KG Bulk Carrier 34,274 Germany Alfa Lava PaxOcean Singapore 2018 V-Ships Monaco Research Survey 1,506 United Kingdom Alfa Lava PaxOcean Singapore

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SLIDE 22

PAX_SOLUTIONS – EGCS RETROFIT CAPACITY

SHIPYARDS SINGAPORE BATAM ZHOUSHAN CAPACITY 20 SCRUBBERS A YEAR 20 SCRUBBERS A YEAR 30 SCRUBBERS A YEAR AVAILABILITY FROM IMMEDIATE IMMEDIATE IMMEDIATE ON-SITE SCRUBBER FABRICATION/ ASSEMBLY YES YES YES RETROFITTING (Max. Size) BERTH – PANAMAX DOCK – SUPRAMAX BERTH – VLCC DOCK – PANAMAX BERTH – ULOC DOCK – ULOC CLASS (APPROVAL) ABS, DNV, LR, NK ABS, DNV, LR, NK ABS, DNV, LR, NK CURRENT ORDERS 5 5 10

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SLIDE 23

PAX_SOLUTIONS – 3D SCANNING FOR SCRUBBER RETROFIT TRACK RECORD

YEAR VESSEL VESSEL TYPE DWT

Jun-2018 Pac Schedar General Cargo 26,406 Jul-2018 Ikan Bawal Bulk Carrier 83,476 Aug-2018 Jubilant Devotion Bulk Carrier 117,549 Aug-2018 Ikan Pulas Bulk Carrier 63,590 Aug-2018 Pac Suhail General Cargo 27,230 Sept-2018 Ikan Parang Bulk Carrier 56,618

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SLIDE 24

EGCS (Exhaust Gas Cleaning System)

INTRODUCTION | PROCESS & SOLUTION

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SLIDE 25

EGCS Pros Cons Application

Open Loop

  • Uses seawater for scrubbing; does not

usually involve storage or handling of hazardous chemical (caustic soda)

  • Comparatively simple system; less

equipment/system compared to closed loop

  • CAPEX and OPEX relatively low
  • Not suitable for low alkalinity water
  • Restriction of washwater discharge in certain

coastal/port areas

  • Large washwater demand
  • Vessels operating most
  • f the time in the
  • cean/open sea.
  • Vessels not entering

areas with washwater discharge restriction.

Closed Loop

  • Independent of operation location –

in low alkalinity water; in discharge restricted coastal/port areas

  • Effluent is stored onboard for the

duration that the tank volumes will permit

  • Complex washwater system
  • Additional equipment/system for water treatment
  • More space required
  • Special care for handling and storage of NaOH

solution, a hazardous substance.

  • Operation duration limited by effluent tank

size

  • Relatively higher CAPEX
  • Relatively higher OPEX due to use of NaOH and

residue handling

  • Vessels trading

constantly in areas with discharge restriction or low alkalinity Water

Hybrid

  • Significant flexibility for operating in

all regions regardless of seawater alkalinity or temperature

  • Effluent may be stored onboard for

the duration that the tank volumes will permit

  • Complicated system with more components
  • More space required
  • Handling and storage of NaOH, and residue

disposal for closed mode operation

  • Highest CAPEX
  • Higher OPEX due to use of NaOH and residue

handling

  • Both in ocean/ open

sea and discharge/

  • peration restricted

areas

EGCS - INTRODUCTION

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SLIDE 26

EGCS - INTRODUCTION

OPEN LOOP EGC SYSTEM CLOSE LOOP EGC SYSTEM HYBRID EGC SYSTEM

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SLIDE 27

EGCS - INTRODUCTION

Courtesy: ABS

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SLIDE 28

EGCS - INTRODUCTION

MANUFACTURERS A B C D INTRODUCTION U-Type U-Type L_SH type, U-Type PROS Customized product is more compact. Long reference list. Customized product is more compact. Long reference list. Short Lead time Customized product is more compact. CONS Longer lead time due to customize and long order book Longer lead time due to customize and long order book Standard Product, heavy, and no flexible for sizing No long reference list PRICE RANGES (LR / Panamax) USD 1.4mil – USD 1.8mil USD 1.4mil – USD 1.8mil USD 1.0mil – USD 1.2mil USD 800k– USD 1.0mil (Conditions applies) DELIVERY SCHEDULES 18 – 20 Months 16 – 18 Months 12 – 15 Months 6 to 8 Months

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SLIDE 29

EGCS (Exhaust Gas Cleaning System)

INTRODUCTION | PROCESS & SOLUTION

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SLIDE 30

EGCS – PAX_SOLUTIONS ENGAGEMENT PROCESS

Select Candidate Vessel Economic/feasibility Study Select EGCS Manufacturer Engineering Design Contract for EGCS Design & Fabrication Class Approval EGCS installation Commissioning/Testing After Sale Support

Pax_Solutions

3D Scanning / Pre-engineering

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SLIDE 31

EGCS – PAX_SOLUTIONS RETROFIT SCHEDULE

Task/ Schedule (week)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Pre-Study Finish 3D Scanning Basic & Detail Design Basic Design Approval Production Design Order EGCS, Design EGCS Sytem Fabrication Bulk Material Purchase Yard Pre-Fabrication Retrofit - Installation Commissioning / Test

EGCS Retrofit Work Schedule

Note: above schedule was based on Package D. The schedule subject time place order

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SLIDE 32

3D Scan---Ideal for retrofitting work on existing ship

EGCS - Pre-Engineering

 3D scan can be conducted prior to vessel arrival in shipyard  A team of engineers are readily deployable to the ship anywhere in the world  3D scan can be conducted without affecting the normal ship routine  3D scan results can be incorporated into 3D Design for subsequent engineering works  Engineering can work on the proposals or solutions while vessel is underway or working with  Customer head office, or  Technical office, or  Ship crew  No downtime required from the vessel for engineering

Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

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SLIDE 33

Arrange the Scrubber components into the existing ship systems

EGCS - Pre-Engineering to Engineering

Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

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SLIDE 34

EGCS – Retrofit Experience and Engineering

Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

Exhaust Gas System Sea Water System

  • Revised piping diagram to be reflected suitable valve and instrument for Scrubber system.
  • Below revised exhaust gas system and sea water system are shown for retrofitting Post Panamax vessel.
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SLIDE 35

EGCS - Managing Class Approval

Approval requirements, managed by Pax_Solutions.

1 Exhaust gas cleaning system diagram 2 General arrangement 3 Engine room arrangement plan(Including funnel) 4 Piping diagram related to the EGCS 5 New added room/tanks construction and arrangement plan 6 Electrical system, electrical power balance chart, circuit current calculation, Ex-proof grade 7 Wiring diagram for main circuit of power supply 8 Test procedure for the EGCS on board 9 Others (if class consider it’s necessary) 10 EGCS Vendor will supply these documents: SECP -- Sox Emissions Compliance Plan ETM-B -- EGC system - Technical Manual for Scheme B OMM -- Onboard Monitoring Manual EGC Record Book

Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

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SLIDE 36

EGC System Fabrication

Order placed, monitoring of fabrication process and inspection of components before Vessel arrival

Open loop Scrubber for MR tanker Open loop Scrubber for VLCC – Main Engine & Boiler

Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

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SLIDE 37

EGCS - Pre-Retrofitting work in Yard

All class approval drawings to be released to PaxOcean facilities for

  • Production drawings,
  • Material procurement
  • Pre-Fabrication of work before vessel arrival.

Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

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SLIDE 38

EGCS – Execution from Design to Implementation

  • Housing of Scrubber to be prefabricated.
  • This shall include support structure, scrubber, exhaust

gas pipes, sea water pipes and other necessary accessories.

  • Exhaust pipes might have interference with lifeboat

platform. Pre-Study to Design Approval Procurement to Delivery of Scrubber Pre-Fabrication at Yard to Complete Installation & Testing

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SLIDE 39

PROPOSAL AND NEXT STEPS

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SLIDE 40

EGCS – NEXT STEPS

SUBMIT LETTER OF INTEREST & COMPLETE LIST OF INTENDED VESSEL PAXOCEAN TO PROVIDE ENGINEERING OFFER AND HIGH LEVEL TURNKEY PAX_SOLUTIONS QUOTATIONS CONTRACT SIGNING (ENGINEERING SERVICES) 3D SCANNING & SELECTION OF MAKER PLACED ORDER TO BOOK FACILTIIES SLOT OF SHIPYARD AND SCRUBBER MAKER

WEEK 1 – WEEK 2 WEEK 1 – WEEK 2 WEEK 3 WEEK 3 – WEEK 4 WEEK 3 – WEEK 8

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SLIDE 41

Thank You

www.paxocean.com

Corporate Office : No. 1 Kim Seng Promenade #07-02 Singapore 237994 Tel : (65) 6737 7300 Email : marketing@paxocean.com

PaxOcean Group