6th Bunkernet Bunker Conference, 6 April 2017

A multi-fuel future: the impact of the

IMO sulphur cap

David Squirrell B.Eng, C.Eng, MIMechE, MBA

Chief Engineer UK, Cyprus, and Middle East

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New IMO emission limit

The International Maritime The new global sulphur limit will be

Organization (IMO) has set a 0.5% adopted in 2020
sulphur cap on marine fuel sulphur
content

2
Enforcement & implications
•  Upon implementation fuels with
sulphur content >0.5% will no
longer be allowed without a
scrubber

•  Enforcement will be handled by

IMO member states

•  The fuel supply chain, including

many refineries, will need to be
reconfigured

3
 Refining converts oil into many products
LPG/Propane

Chemicals feed

Gasoline

Aviation fuels
Refinery
Diesel

Crude Oil Input

Fuel oil

Lubes/Other

Wax/Asphalt

Link between crude oil production and products demand

Source: U.S. Department of Labor
Compliance options
•  Low sulphur distillates i.e. marine
gas oil (MGO)

•  New low sulphur fuels

•  Low sulphur fuel blends

•  Premium ECA category fuels

•  Liquefied natural gas (LNG)

•  High sulphur fuel (HFO) + a

scrubber
5
 Sulphur distribution for residual fuel
Average sulphur content 2.45% m/m

30
28.05
26.18
25 24.68

20
% of quantities

15

10
8.42

6.12
5 4.07

1.95
0.54 0.00 0.00 0.00
0
0 - 0.5 0.5 - 1.0 1.0 - 1.5 1.5 - 2.0 2.0 - 2.5 2.5 - 3.0 3.0 - 3.5 3.5 - 4.0 4.0 - 4.5 4.5 - 5.0 5.0 - 6.0

Sulphur content % m/m

Source: International Marine Organization

6
ExxonMobil’s response
•  Multi-fuel future

•  Working with customers

•  Research and innovation

•  Technical leadership

•  Leveraging LNG expertise

•  Working with our refineries

7
Compliance challenges
Bunker quality

•  ISO 8217

•  Delivery

•  Fuels management

•  Engine maintenance

•  Technical support
Fuel quality concerns
Potential challenges:

•  Stability
•  Compatibility
•  Flash point
•  Cat fines

Owners should be aware of these

problems and ensure they are prepared

ExxonMobil ECA Insight video series

10
Fuel compatibility issues

Mixing fuel types can result in:

•  Sludge

•  Blocked filters/purifiers

•  Avoidable maintenance

11
Fuel compatibility testing

ExxonMobil always recommends This can be an on-board spot test

testing a sample mix to check for [example below] or remotely via a
compatibility issues. specialist lab.

12
Best practice guidelines

Avoid Store Test Avoid mixing

mixing fuels fuels for dissimilar
fuels separately compatibility densities

13
Catalytic fines

Some compliant fuels will have high

levels of cat fines. These can cause
significant engine damage

ExxonMobil recommends vessel

operators use lab tests to identify
potential fuel issues

14
Compliance options
A multi fuel future

LNG Abatement ECA Fuels

Blends HFO Distillates

16
Marine demand
Fuel efficiency improvements vs 2010 Marine demand by fuel
Percent MBDOE
3030 1010

Engine
improvements
LNG

Distillate
2020
Vessel design

5
5 Fuel oil

Operations
1010

Slow steaming
Other
00 0
0
2015
2015 2025
2025 2040 2015
2015 2025
2025 2040
2040 2040
Source: Energy Outlook 2017
Outlook for scrubbers

Scrubbers are offered by a number of

manufacturers and already installed
on several hundred ships

Economic feasibility is dependent on

individual vessels

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High sulphur HFO
availability
High sulphur HFO is likely to be
available up to and beyond 2020 but
limited to specific locations

Term contracts should be in place

before late 2019

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Cylinder oil choices

Vessel operators should use

lubricants designed to work with
specific sulphur fuel levels:

•  Low sulphur fuels - low BN oil

•  High sulphur fuels with scrubbers -

high BN oil

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IMO decision: summary

•  Global sulphur cap of 0.5% •  No change to 0.1% ECA limit

•  To be adopted in 2020 •  Substantial fines for noncompliance

IMO decision: implications

•  Not one fuel solution •  Fuel compatibility will be an issue

•  Scrubbers will be part of the mix •  Presence of cat fines could increase

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Resources
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Questions