Vincent Wee Business Times 23 Mar 11;
THE green aspects of shipping affect not only shipping companies but port operators and regulators as well. Singapore, being a major transshipment port and global hub, is keenly aware of these elements and is doing its part to be part of the solution.
The port's regulatory body, the Maritime and Port Authority of Singapore (MPA), says: 'As a major hub port and a coastal state along a very busy waterway, Singapore has substantive interests in protecting the marine environment and ensuring that shipping is environmentally responsible.'
MPA recognises that over the years there have been an increased general awareness on sustainable development and the need to be environmentally-friendly. Singapore is a firm supporter of the International Maritime Organisation (IMO), and participates actively in its work to develop a wide range of measures to prevent and control pollution from ships. For instance, Singapore and the other IMO member states have been working together to address the burning issue of greenhouse gas emissions from ships.
'Singapore's support of IMO's work on the environment is underscored by Singapore being party to many of the IMO Conventions on environmental protection, including all six Annexes of the MARPOL Convention, the primary IMO instrument for the prevention of pollution from ships,' says MPA.
Among other regulatory moves adopted by the IMO are the Anti-Fouling Systems (AFS) Convention, which Singapore became a party to in 2010, and the Ballast Water Management Convention, which Singapore is actively looking into acceding to.
But the job of balancing all the diverse interests in the industry is not an easy one. 'To effectively address the complex environmental challenges, there is a need for all stakeholders in the maritime industry to play an active role,' says MPA. To bring this about, the agency has adopted a multi-pronged approach to provide a conducive environment for the maritime industry to adopt more environmentally-friendly practices and operations, both in port and at sea.
MPA has also established several clean energy and research programmes, including the Maritime Clean Energy Research Programme with the Nanyang Technological University, MPA-DNV Maritime Environment & Clean Energy Technologies Programme and MPA-Temasek Polytechnic Maritime Fuel Cell Research Initiative.
Going green makes business sense
Business Times 23 Mar 11;
Efforts are on to make ship owners adopt environment-friendly rules early in Asia, which is a laggard in this area, reports VINCENT WEE
THE demands to become more environmentally conscious are reaching the maritime industry and while adoption is still hesitant from industry players, many new technologies are being made available to make shipping greener. In this sense, Europe and North America are leading the way forward with the implementation of emissions control areas (ECAs), early ratification of the ballast water convention and adoption of green technologies. Asia has been much slower but will ultimately have to follow the international conventions.
The ballast water convention for example is expected to be ratified by next year while the implementation of the North American ECAs will have a direct impact on much of Asian shipping which carries the region's exports there. The issues surrounding green shipping are complex and they will be discussed at a panel discussion on sustainable approaches to technology at Sea Asia 2011.
Wait-and-see attitude
'Shipping will have to comply with international regulations, also when it comes to environmental requirements,' says DNV COO and Asia-Pacific and Middle East division head Remi Eriksen. 'Regional regulations in Asia will not drive the development,' he adds. And the problem remains that there are relatively few shipping companies in Asia that are pushing ahead with environmental innovation, with most adopting a wait-and-see attitude to just stay in line with the rest of the industry.
DNV, however, believes that the best way to speed up innovation and investments in greener technologies in Asian shipping is by demonstrating that it represents a sound business case. To this end, they established DNV's Clean Tech Centre (CTC) in Singapore just under a year ago. CTC has since delivered more than 100 projects in the area of greener shipping, which suggests that some in the Asian market are willing to test new ways of making shipping cleaner.
The centre also produces research helping owners to make more informed decisions regarding investments in these technologies. For example the centre recently put out a report by senior consultant Sofia Furstenberg clearly identifying the issues and challenges shipowners and operators will face when the ballast water convention is implemented.
Ms Furstenberg highlights the fact that during the most critical period of the implementation process between 2017 and 2019, over 40,000 ships need to have installed an approved treatment system for ballast water amounting to an average daily installation rate of over 40 systems. DNV recommends early negotiation with yards to ease the retrofit pain.
In terms of ECAs, DNV believes that they 'will gradually cover more and more of global shipping and effect Asian owners trading both in Europe and the US'. Mr Eriksen, who will be chairing the session on green shipping at Sea Asia, also points to Hong Kong and Singapore as good examples of new areas that might include ECAs, although admitting that regional trade in Asia and Africa might be able to avoid being affected for some years yet. 'Knowing that this development will continue, there is no way for global shipping companies to avoid being affected by the ECAs,' he reiterates.
Another bright spot on the horizon is the rise of new technologies that will meet the new demands. Rolls-Royce, for example, sees green technologies becoming increasingly more widespread and commercially viable as regulations become more stringent. Although some of the building costs can be slightly more expensive, the through-life benefits and reduced costs due to increase in efficiency, safety and operability make economic sense.
'For companies who are in shipping long term, it is vital to consider the total cost throughout the vessel's life time. In many cases, new technologies represent added investment in the building phase, but with clear potentials for savings throughout the operational phase,' says Mr Eriksen.
Benefits of gas fuel
Some innovations include gas engines, coupled with innovative hull forms and energy efficient propulsion systems, according to Rolls-Royce. For example, the company has come up with several designs for a variety of short sea and coastal vessels and is working with owners on various concepts for using LNG as fuel.
'Vessel owners are also seeing the benefits of gas fuel and Rolls-Royce is there to meet their requirements, having expanded its capability from providing engines to designing, engineering and supplying complete ship systems,' the company says. 'LNG is a marine fuel of the future. The cost as well as the improved efficiency it provides makes it an attractive option for ship owners and operators, and the environmental benefits are obvious. Highly specialised ships operating on short sea routes - like ferries and cargo vessels in Norway as an example - have been at the forefront of pioneering LNG for marine applications. As bunker networks grow, and as improvements in hull design and power and propulsion efficiency continue to grow, the application of LNG as a fuel source for larger intercontinental vessels will become more viable,' says Lars Eikeland, Rolls-Royce executive vice-president of business development and strategy.
'Based on the findings from the Joint Industry Project on LNG, it seems clear that there is a large potential for use of LNG both as fuel for vessels in South-east Asia and for power generation in island regions with no pipeline connection. We are convinced that LNG has clear advantages both when it comes to environmental footprint and price compared to traditional fuel oil,' says Mr Eriksen, adding that 'the new LNG terminal in Singapore will represent an important building block in a future infrastructure of bunkering facilities, supporting an increased use of LNG'.
