Fuel Options

There are only three realistic alternatives for the ship owners that allow complying with the SOx regulations. These are:
  1. Use of marine diesel oil also termed as MDO
  2. Installation of scrubber on the ships’ boards

Conversion of ships to run on LNG

There are other options also such as nuclear and dimethyl ether DME but these do not have significant potential required to manage the significant volumes. It is noted by that only LNG solution is capable of complying with the NOx regulations and the ships can reduce NOx by installing systems such as selective catalytic reduction (SCR) if these ships are using marine diesel oil (MDO) or heavy fuel oil (HFO) as fuel.

Apart from the economic issue, MDO is the easiest option for the ship owners. The new build ships after 2016 have to get an SCR installed on board but this is not seen any major hurdle in the operability and design of ship due to technology and feasibility. MDO is used by many ship owners and they understand the market mechanisms as well as variations well that are similar to that of HFO. There is an added advantage of the no amendments in the commercial relations and general contract terms set with the bunker suppliers. The structure is based on indexation, incoterms and product specifications clauses.

There are no issues in the logistics, regulations, and operations in MDO and it is available in most ports. However, in case of rising in the MDO quantities delivered in ports in a significant proportion, then there will be need of accommodating it with existing infrastructure and logistics. It requires extensive conversion and development of oil products in most of the ports although the logistics of oil products are readily available. Investment level needed for this is must lower than for LNG and thus indicates higher feasibility. Additional demand for significant volumes remains another probable challenge that affects refining balance of the region and thus drives the prices. Europe is to be affected by this as it already imports 20 Mt distillates each year.  However, the impacts on the price of distillates and on refining are not within the scope of this paper.

There are a number of benefits of using exhaust gas scrubbers. The use of scrubbers shows that the ship owners can follow current practices to supply. It is best to retrofit that is found to be most feasible for the ships even when technology is not fully proven. Retrofitting is possible when the ship owners include the possibility of installing scrubber in the design of the ship. However, scrubbers cause stability issues for the ships as the treatment given by exhaust gas is installed on top of the exhaust stack. This makes ferries in particular poor candidates for the scrubber. Also, sludge management and water treatment products need additional operations and logistics. Another problem with scrubbers is that they increase the fuel consumption by 1% to 3% while the OPEX and maintenance costs increase. Thus, scrubbers are not feasible in economic terms.

Working on a research paper or dissertation on a similar topic might be difficult, so why don’t you make it easy for you by placing your order with us at www.cheapestwritingservices.com. Our professional writing team can assist you. Place your custom academic writing paper order at an affordable price, written by a professional writer. Read more academic writings by clicking here.