County of Los Angeles

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Marine Fuels Cold IroningSaving Fuel and the
Environment
James A. Fawcett, Ph.D. Sea Grant Program and
Price School of Public Policy University of
Southern California Los Angeles, California June
2013
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Cold Ironing and Green Ports

• Rationale for Green Ports
• Combating worldwide climate change
• Promoting environmental sustainability
• Enhancing public (stakeholder) involvement
• Reducing the impact of the port and its users on
  the environment

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Economics of Green Ports

• Market and Non-Market Principles
• Ports Have an Civic Responsibility to
• Internalize environmental externalities
• Communicate with those affected by port
  operations
• Incorporate interests of near-port citizens
• Seek a favorable balance between jobs and
  environmental stewardship
• Support economic development
• Create high-quality jobs
• Ports have a National Responsibility to
• Continue to move cargo to benefit the regional
  and national economies
• Be competitive while contributing to global
  environmental remediation

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The Port as Environmental Monitor

• Port State Control
• Ships may be registered in many countries, some
  without high environmental standards
• But, all ships must use seaports
• ? Seaports can encourage/enforce compliance with
  safe environmental practices (Paris MoU and
  subsequent including Tokyo MoU and Paris MoU NIR)
• Residents surrounding ports suffer if ports do
  not enforce safe environmental practices

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MARPOL 73/78

• MARPOL establishes an international standard for
  management of seaborne pollution--some of which
  applies to ports
• Annexes
• I Oil
• II Noxious Liquid Substances Carried in Bulk
• III Harmful Substances Carried in Packaged Form
• IV Sewage reception facilities required in port
• V Garbage reception facilities required in
  port
• VI Air Pollution

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MARPOL 73/78

• Port State Control
• Applies to Annexes I, II, III, V and VI
• Implemented by Implemented by IMO Resolution
  A.742 (18), in force 03 March 1996
• Amended by MEPC 53/24/Add.1, Annex 11 (Adopted 25
  July 2005)
• Extends Port State Control to all vessels
  regardless of flag

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MARITIME AIR POLLUTION
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Maritime Air Quality

• Primary air contaminants
• DPM (diesel particulate matter)
• Especially DPM 2.5 microns
• Diesel soot
• Can cause or exacerbate pulmonary
  distress/disease, especially among children
• NOx (oxides of nitrogen)
• Component of smog
• SO2 (sulfur dioxide)
• Component of smog
• Aggravates pulmonary distress

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Maritime Air Quality

• Causes of poor air quality
• Load centering concentration of vessels at a few
  large seaports
• Operation of auxiliary engines in port hotelling
• Diesel engines in general
• Fuel choices (residual fuel oils vs. distillate
  fuels)
• Lack of a workable regulatory regime for
  internationally flagged ships
• MARPOL Annex VI a permissive standard
• Unique meteorological conditions at various ports

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Why is Fuel the Problem?

• Diesel engines using residual fuel
• Usually operating with Intermediate Fuel Oil
  (IFO)
• Can contain up to 35,000 PPM sulfur (m/m)
• Regulated by the IMO through MARPOL Annex VI
• Standards for sulfur component of diesel fuel
• Heavy duty truck/bus standard in U.S.
  (post-2006) 15 PPM (0.15) residual sulfur
• IMO Annex VI standard (2010) 4.5 SOx
• IMO Annex VI standard (2012) 3.5 SOx
• IMO Annex VI standard (2020) 0.5 SOx
• ECA standard (North Sea/Baltic/N. America) 0.1
  Sox (As of 01 January 2015

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Fuel Economics

• IFO 180 (RME 180) 661/tonne (3.5 sulfur, 30 May
  2013 Los Angeles)
• IFO 180 (RME 180) 610.5/tonne (3.5 sulfur, 30
  May 2013 Singapore)
• Low-sulfur Distillate Fuel (Marine Gasoil or
  MGO/DMX) 1010/tonne (0.1 sulfur) (30 May 2013
  Singapore)

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In Port Sources of Diesel Pollution

• Hotelling use of ships auxiliary diesel
  engines
• Diesel powered yard equipment
• Diesel powered locomotives
• Diesel trucks used for cargo drayage in and near
  the port

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Remedies for Air Pollution

• Requiring ships and terminals to use shore power
• In port, ships must shut down auxiliary engines
  and use shore power
• Phase in the practice
• Cost to shipowners US500-1500k per vessel
• Install cables and connections to main shipboard
  electrical supply system
• Cost to ports
• Depends upon availability of power at the dock
• Additional cost to provide adequate power outlets
  at each berth

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Typical Shore Power InstallationLos Angeles
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Typical Shore Power InstallationOakland
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Shore Power (Alternative Maritime Power) in Port
of Los Angeles
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Alternative Maritime Power (AMP)
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Improving Air Quality Diesel-Trucks (USA)

• Retrofit trucks with clean-burning diesel engines
• Require the use of low-sulfur (0.15 or
• 15 ppm) fuels
• Retrofit yard equipment
• Install catalytic converters on diesel engines
• Require emulsified low-sulfur diesel fuel
• Require electric or hybrid diesel power
• Replace yard equipment with clean diesel or
  hybrid power
• Impose a per-container fee to pay for these
  improvements

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Improving Air Quality Diesel Locomotives (USA)

• Retrofit locomotives with clean-burning diesel
  engines
• Convert to electric railways
• Retrofit yard (switching) locomotives to electric
  or hybrid
• Switching does not require the power of line-haul
  locomotives
• Recharge with onboard diesel when idle
• Use diesel power to augment battery when under
  heavy load

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A Fuel Alternative to Low-Sulfur IFO 180 and MGO

• At sea or near coastal areas
• A new option for carriers
• Issues
• Price of alternatives
• Availability of alternatives
• Cost of retrofit for existing vessels
• Ability of engines to use multiple fuels in new
  build

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Dimethyl Ether as a Diesel Fuel

• Produced from methane
• Natural gas
• Biomass (waste and agricultural products
• CH3OCH3
• Produced into methanol, then to DME via catalytic
  process
• Used in Europe as a substitute for propane
• Non-toxic to humans

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• Benefits
• Ultra low emissions
• No particulate emissions
• Very low NOx and SOx (no sulfur)
• Thermal efficiency equivalent to diesel
• Ignition characteristics equivalent to diesel
• Can be generated on-site from methanol
• Costs estimated at -10 compared to conventional
  diesel operations

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California Ports as One Model

• North America ECA requires fuel 1.0 sulfur
  within 200 nm of the coast
• California requires fuel 0.1 sulfur
• Per MARPOL Annex VI
• Ship may use any fitting, material, appliance or
  apparatus or other procedures, alternative fuel
  oils, or compliance methods, which are at least
  as effective in terms of emissions reductions, as
  approved by the Party to MARPOL Annex VI

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Clean Air Action Plan (CAAP)

• Developed by the Port of Los Angeles and Port of
  Long Beach
• Designed to improve air quality in the Los
  Angeles air basin
• Comprehensive air management plan
• Available online in Hangul and English at
• http//www.polb.com/environment/air/caap.asp
• Scroll down to link for version in Hangul

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Conclusions

• Concerns over global climate change will affect
  maritime fuel use
• Cost, energy density, availability and hazard
  profile will influence the choice of fuels for
  carriers
• Public concerns over air quality and climate
  impacts will constrain the use of fuels near
  coastlines
• Carriers should be prepared to plan ahead for new
  rules regarding fuel use