NOx delay still under contention

Many were surprised that Russia gained the support they needed to delay the introduction of Tier III NOx requirements. Some were disappointed.

The Danish minister of business and growth, Annette Vilhelmsen, says this clearly backward step for the environment won’t be definitely adopted until Autumn. “Denmark will enter close cooperation with the industry and use the time effectively to try and turn the tide, so the requirement for implementation of the new NOx limits will indeed take effect from 2016 as planned.”

The battleground for NOx Emission Control Areas (NECAs) may well be the Baltic. Earlier this year the Russian Federation Ministry of Transport in association with the Russian Federation Ministry of Natural Resources held a conference titled “Ecology of Baltic navigation: in search of rational compromise”. This meeting was held to prepare the Russian position for presentation at a HELCOM conference in March.

In the discussions which included representatives of shipping companies, engine manufacturers and shipbuilders, it was stated that a Baltic Sea NECA would be premature and will not result in actual environmental improvements. The equipment required is currently only manufactured in a small number of Scandinavian countries that have advanced the proposal, so it is mainly a commercial, not an ecological initiative.

Also discussed were the drawbacks of existing selective catalytic reduction (SCR) systems that use ammonia. These systems could degrade operating performance in busy sea lanes, lead to increased CO2 emissions and suffer from the risk of ammonia overdosing when the engines are not operating at full capacity. Additionally, there is no infrastructure for urea filling stations or disposal of used catalyst.

The MEPC65 debate focussed on a submission from Russia and a correspondence group (CG) report. The CG report stated that SCR, exhaust gas recirculation (EGR) and dual fuel LNG have the potential to achieve Tier III NOx limits either alone or in some combination. According to David Tongue, director of regulatory affairs at the International Chamber of Shipping, some of the concerns raised were that there is little compatibility between EGS and SCR, the cost of installation and operation and that safety implications for both the use of SCR and LNG as another NOx abatement solution are not properly considered.

“The sentiment behind the MEPC decision was the suggestion that the technologies required to achieve the necessary reduction were not proven and fit for purpose,” says Juha Kytölä, VP Environmental Solutions at Wärtsilä. “We disagree with the premise of this argument; there is not only technology available and market ready to meet the challenge of Tier III NOx limits, but there is in fact a choice of applicable and effective technologies widely available. These technologies will not only help to ensure compliance but will also generate cost efficiencies – bunker fuel represents up to 70 per cent of operating costs, and today’s prices remain steadily high. By fitting a Wärtsilä scrubber together with an SCR, ship owners can unlock the savings from using cheaper, low-sulphur fuels.

“LNG and SCR technologies are tried, tested and available, while a formal review process carried out by the IMO concluded that no delay was necessary to guarantee a proper implementation of the standards. Even with a 2016 deadline the industry still has two and a half years before it is mandatory for newbuilds to reduce their NOx emissions to the required level. Wärtsilä believe there is ample time and opportunity for owners and operators to comply with IMO NOx legislation and that a delay is both unnecessary and improper when faced with these clear facts.”

Clean Marine of Norway manufactures a SOx and particulate matter scrubber, and CEO Nils Høy-Petersen fears that the potential NOx Tier III delay may legitimise the ‘wait and see’ attitude of many shipowners. “At the same time, it will probably relax the pressure on LNG as a SOx and NOx solution, and the same goes for the combination of a scrubber and EGR system – the most likely abatement combination.” Despite this, there are some 2,000 ships that would see a reasonable pay back by installing a scrubber on board by 2015 as no such delay is expected for SOx regulation delays. “As there is less than two years left before this deadline, and few installations or orders have been made today, it is reasonable to assume a steep increase in enquiries in 2014, but owners will also have to accept installing exhaust gas cleaning systems well into 2016, 2017 and even 2018.”

Regardless of the outcome of further debate anticipated at MEPC66, the US has not stated any intention of delaying the implementation and enforcement of their already agreed NECA.