The Ballast Water Management Convention

Status, content and things to be aware of

Kjetil Martinsen
June 2012

BWM-2010-12

Agenda
Status
• Ratification • Application • Entry into force Implementation • Yard capacity • BWM Plan Technologies • Approval status • Considerations
Ballast Water Management Convention March 2011 © Det Norske Veritas AS. All rights reserved. 2

The Ballast Water Management Convention
 Environment & Health  Aims to minimize
- transfer of invasive aquatic species between ecosystems - transfer of bacteria harmful to human health

 Examples
- Great lakes, Canada
- Sea lampreys - Zebra Mussels

- Argentina & Brazil
- Golden mussels

- Pandemic outbreak, South America
- Cholera

Ballast Water Management Convention March 2011 © Det Norske Veritas AS. All rights reserved. 3

Background for the Convention
BBC - UK

Ballast Water Management Convention March 2011 © Det Norske Veritas AS. All rights reserved. 4

Agenda
Status
• Ratification • Entry into force • Application Implementation • Yard capacity • BWM Plan Technologies • Approval status • Considerations
Ballast Water Management Convention March 2011 © Det Norske Veritas AS. All rights reserved. 5

The 2004 Ballast Water Management Convention  The Convention was adopted in 2004  Entry into force 12 months after signing by: . . All rights reserved.30 states. representing .35% of world merchant shipping tonnage  Ratification is likely to happen in 2012 Requirements for ratification: Status as per June 2012: 30 35 Requirements for ratification: Status as per June 2012: 35% 27.95% 6 © Det Norske Veritas AS.

7.01 % 4.05% to ratification… Country Panama Bahamas Hong Kong Singapore Greece Malta China Cyprus Germany % GT 22.95 % 5.56 % 1.09 % 13318 12290 9913 9620 8567 Ratification & local requirements Local requirements Ratification Denmark Antigua & Barbuda India Finland 0. All rights reserved.54 % 1.71 % 4.22 % 1.02 % 3.18 % 1458 © Det Norske Veritas AS.22 % 2.57 % 5.89 % 4. 7 .94 % GT 180868 43927 39509 38576 37138 31649 25358 20033 15282 Italy Japan 1.26 % 1.69 % 1.

Ship-specific Ballast Water Management Plan approved by Administration onboard .Ballast water exchange (Regulation D-1) . All rights reserved. 8 .Ballast water record book onboard .Approved ballast water treatment system (Regulation D-2)  The Convention will require compliance for all ships and offshore structures regardless of age and size © Det Norske Veritas AS.Ballast Water Management Convention  The Ballast Water Management Convention requires .

or 50nm & 200m deep Methods • Sequential • Flow through • Dilution © Det Norske Veritas AS.BW Management Standards Exchange standard (reg. 9 . All rights reserved. D-1) • • • • 95% Exchange 200nm & 200m deep.

10 . D-2) • Organisms >50 microns <10 organisms per m3 • Organisms =>10 microns <50 microns <10 organisms per ml • Vibrio cholerae <1 cfu per 100ml • Escherichia coli <250 cfu per 100ml • Intestinal enterococci <100 cfu per 100ml © Det Norske Veritas AS. All rights reserved.BW Management Standards Treatment standard (reg.

Ships constructed prior to 2009 (Reg. B-3) 2012 2013 2014 2016 <1500 m3 Exchange or treatment Treatment 1500 -5000 m3 Exchange or Treatment Treatment >5000 m3 Exchange or treatment Treatment Ratification Entry into force © Det Norske Veritas AS. All rights reserved. 11 1st Intermediate /renewal survey 1st Intermediate /renewal survey .

Ships constructed between 2009-2011(Reg. 12 1st Intermediate /renewal survey . All rights reserved. B-3) 2012 2013 2016 <1500 m3 Treatment 1500 -5000 m3 Treatment >5000 m3 Exchange or treatment Treatment Ratification Entry into force © Det Norske Veritas AS.

Ships constructed on or after 2012 (Reg. B-3) 2012 2013 <1500 m3 Treatment 1500 -5000 m3 Treatment >5000 m3 Treatment Ratification Entry into force © Det Norske Veritas AS. 13 . All rights reserved.

14 . All rights reserved.Application Applies -Party of the Convention -Sailing in waters of a Party Does not apply International BWM Certificate Excemption Reg A-4 Based on risk analysis according to G7 Ballast free ships Local operation (FlagTrade same) Local operation (Flag of party – operation under other party only) Navy Ships Premanent ballast Exceptions Reg A-3 Between specified ports 5 Years period Emergency Accidents Inn/out in high seas Inn/out at same location Ballast Water Management Convention March 2011 © Det Norske Veritas AS.

All rights reserved. 15 .Ships can be granted exemption from a Party or Parties in waters under their jurisdiction A risk assessment of spreading of invasive organisms via ships ballast water can be undertaken to give exemption from the regulation Ballast Water Management Convention March 2011 © Det Norske Veritas AS.

The US Coast Guard BW Regulations  The new USCG Regulations (33 CFR part 151 & 46 CFR part 162) will enter into force 2012-06-21  All ships calling at US ports and intending to discharge ballast must either do exchange or treatment. 16 . in addition to fouling and sediment management  Treatment must be done by either a USCG Type Approved system or a system Type Approved by another Administration which the USCG has accepted  The treatment discharge standard is the same as the IMO BWM Convention D-2 standard Ballast Water Management Convention 2012-03-29 © Det Norske Veritas AS. All rights reserved.

The US Coast Guard BW regulations  The new USCG regulations follow similar definitions as the IMO  Scaling of BWT systems have requirements similar to those of BWM.33  In cases of emergency or malfunction of the treatment system. All rights reserved. the USCG may allow the use of BW exchange as a contingency  When calling a US port. as required by the USCG regulations Ballast Water Management Convention 2012-03-29 © Det Norske Veritas AS. DNV recommends that ships report all activities related to Ballast water at least 24 hours before arrival.2/Circ. 17 .

18 .Additional requirements in the new regulations  Clean ballast tanks regularly to remove sediments  Rinse anchors and chains when the anchor is retrieved  Remove fouling from the hull. All rights reserved. piping and tanks on a regular basis  Maintain a BWM Plan that includes the above in addition to BW Management (no requirements for approval of the BWM Plan)  Maintain records of ballast and fouling management  Submit a report form 24 hours before calling a US port Ballast Water Management Convention 2012-03-29 © Det Norske Veritas AS.

19 .Implementation schedule of the USCG treatment standard Ballast water capacity New ships All Construction date Compliance date On or after 2013-12-01 On delivery First scheduled drydocking after 2016-01-01 First scheduled drydocking after 2014-01-01 First scheduled drydocking after 2016-01-01 Less than 1500 m3 Before 2013-12-01 Existing ships 1500 m3 to 5000 m3 Before 2013-12-01 Greater than 5000 m3 Before 2013-12-01 Ballast Water Management Convention 2012-03-29 © Det Norske Veritas AS. All rights reserved.

20 . All rights reserved.Agenda Status • Ratification • Application • Entry into force Implementation • Yard capacity • BWM Plan Technologies • Approval status • Considerations Ballast Water Management Convention March 2011 © Det Norske Veritas AS.

the more congested this situation will look Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 21 .There will be a spread of the actual implementation year for all ships built before 2012 The longer it takes for the ratification to take place. All rights reserved.

22 .Agenda Status • Ratification • Application • Entry into force Implementation • Yard capacity • BWM Plan Technologies • Approval status • Considerations Ballast Water Management Convention March 2011 © Det Norske Veritas AS. All rights reserved.

BWT System PureBallast 2. Ltd. 23 .0 Ex OceanSaver Optimarin Ballast System (OBS) OceanGuard BWMS Crystal Ballast BWMS KBAL Wartsila BWT MMC BWMS Balclor BWMS BlueSeas NK-O3 Technologies Advanced Oxidization + filtration Cavitation + electrolysis + saturation + filtration UV + filtration Electrocatalysis + filtration + ultrasound UV + filtration Pressure drop + UV UV + filtration UV + filtration Electrolysis + filtration Ozonation Active Substances Yes Yes No Yes No No No No Yes Yes Stage of approval Type Approved Type Approved Type Approved Type Approved Ongoing Ongoing Ongoing Ongoing Final Approval Final Approval Other approval No No No CCS (China) No No No No CCS (China) Korea © Det Norske Veritas AS.Manufacturers – type approval by DNV (1) Manufacturer Alfa Laval OceanSaver Optimarin Headway Marine Technology Auramarine Knutsen OAS Trojan UV MMC Sunrui Company NK Co. All rights reserved.0/2..

UV + filtration No No Fujian BWMS Redox BWMS CleanSeaWay BWMS Seascape BWMS UV + filtration UV + filtration + ozonation Dual frequence control + UV UV + Ultrasound + filtration No Yes No Submitted Ongoing Submitted Submitted No No No No © Det Norske Veritas AS. Redox Marinetech Co. Techcross BWT System GloEn-Patrol Electro-Cleen System PACT BWMS Technologies UV + filtration Electrolysis Active Substances No Yes Stage of approval Submitted Final Approval / Submitted Submitted Other approval Korea Korea PACT Environmental Techonology Ltd. Fujian Newland EnTech Ltd.. Ltd.Co..Manufacturers – type approval by DNV (2) Manufacturer Panasia Co. Elite Marine Ballast Water Treatment Corp. All rights reserved.. Co. 24 .

. 25 . Mahle Chemical injection + filtration Filtration + coagulation + magnetic separation Filtration + electrolysis + electrochlorination UV + filtration UV + ultrasonic + filtration Filtration + electrolysis Cavitation + ozonation Yes Yes Yes No No Yes Yes Type Approved Type Approved Type Approved Type Approved Type Approved Type Approved Type Approved Ocean Protection System OPS Filtration + pre-filtration + filtration No Type Approved Germany © Det Norske Veritas AS. LTD.Manufacturers – approval status by other Administrations (1) Manufacturer BWT System Technologies Active Substances No Stage of approval Type Approved Approval body Marshall Islands Japan Japan Germany China China Germany Japan NEI Ventury Oxygen Stripping JFE BWMS Hitachi BWMS CleanBallast Blue Ocean Shield BWMS BSKY BWMS BalPure FineBallastOZ Deoxygenation JFE Hitachi RWO China Ocean Shipping Company Kosco Severn Trent De Nora Mitsui Engineering and Shipbuilding Co. All rights reserved.

LTD Purimar System Filtration + electrolysis Yes Final Approval Korea © Det Norske Veritas AS.. All rights reserved. 26 .Manufacturers – approval status by other Administrations (2) Manufacturer BWT System Technologies Active Substances Stage of approval Approval body HHI EcoBallast UV + filtration Yes Final Approval South Korea Japanese Association of Marine Safety SP Hybrid Cavitation + ozonation Yes Final Approval Japan Ecochlor Ecochlor BWMS Chemcial injection (ClO2) Yes Final Approval Germany 21st Century Shipbuilding ARA BWMS Filtration + high energy plasma + UV Yes Final Approval South Korea Techwin Eco Co.

All rights reserved. 27 .Technologies – ups & downs Filters Ups Downs • Self cleaning • Efficiency in high sediments waters • Easy installation • Easy maintenance • Flow rate reduction • 316/316L candles • Pressure drop Ballast Water Management Convention March 2011 © Det Norske Veritas AS.

Technologies – ups & downs UV Ups • Efficient • Easy installation • Minimal safety issues • Independent of salinity Downs • High sediments waters • Power consumption • 316/316L chamber • 2-ways treatment Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 28 . All rights reserved.

29 .Technologies – ups & downs Electrolysis Ups • Onboard disinfection • Efficient • 1-way treatment Downs • Salinity • Power consumption • Hydrogen • Corrosion Ballast Water Management Convention March 2011 © Det Norske Veritas AS. All rights reserved.

Technologies – ups & downs Cavitation Ups • Efficient • Independent of salinity Downs • Pressure drop Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 30 . All rights reserved.

Technologies – ups & downs Chemical injection Ups • Low cost • 1-way treatment • Easy installation Downs • Safety • Storage • Corrosion Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 31 . All rights reserved.

Technologies – ups & downs Ozonation Ups • Efficient • Independent of salinity • 1-way treatment Downs • Corrosion • Safety Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 32 . All rights reserved.

33 . All rights reserved.Technologies – ups & downs De-oxygenation Ups • Corrosion • Easy installation Downs • Efficiency • Maintenance of IG system • Holding time • High fuel cost producing IG Ballast Water Management Convention March 2011 © Det Norske Veritas AS.

Ship types assessment done with the Managers/Owners .DNV Services – Advisory Decision support for owners . All rights reserved.Criteria rating manufacturers and ship types .Results in recommendation on which system is most suitable for an individual ship Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 34 .

DNV feasibility study Ballast Water Management Convention March 2011 © Det Norske Veritas AS. 35 . All rights reserved.

Example – Decision support for owners  Based on the decided weighting criteria the shortlisted systems are rated individually based on the different criteria – thus providing a solid foundation for decisions. 36 . All rights reserved. Ballast Water Management Convention March 2011 © Det Norske Veritas AS.

ECA: Scrubber / LNG / low sulphur diesel ? .

38 .Agenda 1. Selection process and tools © Det Norske Veritas AS. All rights reserved. Background 2. The three main ECA solutions 2.

Demanding regulatory timeline CO2 SOx NOx Ballast 39 © Det Norske Veritas AS. 39 . All rights reserved.

40 . Selection process and tools © Det Norske Veritas AS.The three main ECA solutions 1. The three main ECA solutions 2. All rights reserved. Background 2.

All rights reserved. an expensive ECA solution over time Risk of engine shutdown during switchover. 41 . proven and available solution Reduces SOx.1% the actual quality? © Det Norske Veritas AS. and PM Available globally through current bunkering system Very limited investments needed (pump parts etc) Limited additional crew training required Bunker recording regime already established ~40% OPEX-increase. potential ship adrift and in danger ? Distillate availability/ -Refinery capacity around the globe? Future distillate costs increases even more than oil? Low flash point challenges Increasing concentration of abrasive ‘cat fines’ Does not help meeting new NOx demands 2016 newbuilds Is 0.Low Sulphur Fuel + A safe.

42 .Fuel Switch: areas of challenge The main issues are:  Low viscosity  Lubricity  Acidity  Flashpoint  Ignition and combustion quality (MGO) (MGO/MDO) (MGO/MDO/HFO) (MGO/MDO/HFO) (HFO)*  Increased catalytic fines (HFO)* * May be affected through blending with some “Cutter Stocks” © Det Norske Veritas AS. All rights reserved.

new fuel supply routines etc Easier to refit than LNG Space requirements. structure & stability ? Ability to perform in all operating modes ? Marinification? Corrosion? Capability of operating in series with NOx abatement technology and exhaust gas boilers Sludge production and disposal. long track record No need for new fuel tanks. Port State Controls in this regard How to prove compliance (air/sea) Quite extensive integration with ship Requires operator’s attention and maintenance Fuel penalty Does not help meeting new NOx demands 2016 newbuilds Manufacturer and installation capacity? © Det Norske Veritas AS. 43 .Scrubbers + HFO + Often the most costeffective solution Very efficient SOx (and particulate) removal under right conditions Well established theory. All rights reserved.

Categorisation of EGCS systems and main suppliers Manufacturers Dry systems Couple Systems Exhaust Gas Scrubbers for Marine Use Wet systems Open loop Marine Exh. 44 . Sol. Hamworthy Ecospec Hybrid (Open/Closed) Clean Marine Belco Clean Air Aalborg industries Hamworthy Green Tech Marine Closed loop Wartsila © Det Norske Veritas AS. All rights reserved.

PM. proven and available solution Reduces NOx. All rights reserved. CO2 Particularly suitable for fixed trading routes Boosting CSR profile Additional CAPEX needs No worldwide bunkering and fuel standards Inadequate LNG bunkering grid LNG tank steals space onboard Lagging 2-stroke market No experience from industrial shipping ? LNG fuel prices De-coupling of LNG price from oil price? Price pressure from land based LNG consumers? Rate of bunker grid expansion Development of spaceefficient LNG tanks Dual fuel vs mono fuel engines? Can give supreme NPV Additional training and certificates © Det Norske Veritas AS. 45 .LNG as fuel + A safe. SOx.

All rights reserved. now in 20 ships. ~ 100% Reduced SOx and Particulates 46 85–90% Reduced NOx . OPEX highly dependent on the LNG market price  To consider LNG availability and future price Government incentive schemes Infrastructure development pace Retrofit. IMO regulations in the pipeline  Relatively high CAPEX. safe in operation  40 years of LNG tanker operation  Used as marine fuel since 2001. or newbuildings only Safety record due to higher than normal safety focus ~ 15% Reduced CO2 / GHG © Det Norske Veritas AS.LNG: Technically proven. and growing  Class rules in place.

Ship to Ship bunkering is a more permanent solution and seems viable in the Baltic Sea . © Det Norske Veritas AS. All rights reserved.The European LNG bunkering grid Bodø Existing bunkering facilities Planned bunkering facilities Proposed bunkering facilities Florø Porvoo Mongstad Øra CCB Halhjem Lysekil Nynäshamn Paldiski and Tallin Snurrevarden Göteborg Risavika Hirtshals Klapeida Teesside Hamburg Swinoujscie Rostock Rotterdam Zeebrügge Dunkerque LNG bunker can be delivered by truck for small volumes of LNG supply to any remote area. 47 However. This is done in the Oslofjord. Boknafjord etc.

All rights reserved. Selection process and tools © Det Norske Veritas AS. 48 .Agenda 1. The three main ECA solutions 2. Background 2.

49 .DNV Approaches New Technology by Risk Methodology Failure mode and criticality analysis Hazard studies of Installation and operation © Det Norske Veritas AS. All rights reserved.

Economic Calculations Model data Scenario data Fuel. 50 . Scrubbers SOx LNG User selection Measure combination Fuel price scenarios Time in ECA Operational profile SCR NOx Ship parameters Model analysis Fuel Switch Cost effective Solution © Det Norske Veritas AS. All rights reserved. sailing patterns etc. interest rate.

Additional cost for meeting SOX requirements in ECA for newbuild with 7000kW installed. 51 . 100% ECA operation Compliance conditions: Assumptions Abatement technology Retrofit / New-build Gas price Diesel price SOX New-build European level European level Ship type Installed power Reefer ca. 7000 kW 100% Time in ECA Base Case HFO © Det Norske Veritas AS. All rights reserved.

Getting an overview of your various exposures to ECA . All rights reserved. involve your top management  ECA adaption can give competitive advantages!  Inadequate ECA performance can give: .Summary  ECA poses a threat to traditional ship operation .The risk picture is complex since many solutions are based on novel technologies.EU.High OPEX.Start planning now.Manage your risk exposure and reduce where your ECA consequences are highest . 52 . media coverage. But upcoming positive developments!  The overall risk exposure can be reduced and managed by: . . Off-hire.USCG regs. reduced second hand value. market exclusion © Det Norske Veritas AS. break of IMO.Port detention.

dnv. All rights reserved.com © Det Norske Veritas AS. 53 . property and the environment www.Safeguarding life.

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