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IMO Update by DNV: Marine Environment Protection Committee – MEPC 78

An extended exchange of views took place on the scheduled revision of the IMO GHG Strategy but with no new decisions being made, says DNV.

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Vessels berthing at Singapore DNV

Classification society DNV on Saturday (11 June) published ‘IMO UPDATE: MARINE ENVIRONMENT PROTECTION COMMITTEE – MEPC 78’.

It focuses on highlights of the 78th session of the IMO’s Marine Environment Protection Committee (MEPC 78) that was held remotely from 6 to 10 June 2022 including approval of a proposal for a sulphur emission control area (SECA) in the Mediterranean Sea, reporting of flashpoint in the Bunker Delivery Note and discussions on market-based measures. 

The following are extracts from the full document: 

Meeting highlights

  • Finalization of guidelines for the EEXI, CII and SEEMP
  • Consideration of revisions to the IMO GHG Strategy and future technical and market-based measures
  • Approval of a new sulphur emission control area (SECA) expected to take effect from 1 July 2025, subject to final adoption at MEPC 79 in December 2022
  • Adoption of amendments to MARPOL Annex I and the IBC Code on watertight doors
  • Adoption of amendments to MARPOL Annex II on the Hazard
  • Evaluation Procedure for chemical tanker products
  • Extension of the ballast water experience building phase

Reporting of flashpoint in the Bunker Delivery Note (BDN)

Following the approval of amendments to SOLAS Chapter II-2 by MSC 105 in relation to the flashpoint of oil fuel, amendments to Appendix V of MARPOL Annex VI (Information to be included in the BDN) were approved subject to adoption at MEPC 79. The following new item has been added to the BDN: “Flashpoint (°C) or a statement that flashpoint has been measured at or above 70°C”.

Unified interpretations

MEPC approved a unified interpretation of Regulation 18.3 of MARPOL Annex VI with regard to the use of biofuels. The amendment clarifies that fuels with a biofuel content up to 30% in principle fall under the definition of marine fuel oil derived from petroleum refining (Regulation 18.3.1) and no further NOx testing is required. For fuels with a biofuel content of more than 30%, it needs to be verified that the engine is not altered beyond the approved parts and settings of the NOx Technical File (Regulation 18.3.2) in order to not require NOx testing.

Revision of the IMO GHG Strategy

There was an extended exchange of views on the scheduled revision of the IMO GHG Strategy, but with no new decisions being made. The main divergence in views between countries is the split between those calling for full decarbonization by 2050, and those calling for further assessments on feasibility and impacts on states before such a decision can be made. 

The MEPC will adhere to the established workplan on this matter and make its decision at MEPC 80 in July 2023. Further discussions will take place at an intersessional meeting agreed to be held back-to-back with MEPC 79 in December 2022. There is also the expectation that an intersessional meeting will be held in the spring of 2023 dedicated to this matter. 

Mid and long-term measures to reduce GHG emissions

There was an extensive discussion on potential mid and long-term measures at the intersessional meeting held two weeks prior to MEPC 78. At this meeting, proposals for various market-based measures were discussed: 

  • A levy system based on absolute well-to-wake GHG emissions. The GHG price is determined by the IMO. 
  • A levy system based on CII performance, where ships with CII performance below a benchmark pay a contribution per tonne CO2, and ships with performance above the benchmark receive a reward. The contribution is determined by the IMO, while the reward depends on the level of achievement of the fleet.
  • A levy system based on absolute tank-to-wake CO2 emissions where the revenues are partly used to provide a direct rebate to zero-emission vessels. The CO2 price and rebate are determined by the IMO. 
  • An emissions cap-and-trade system, similar to the EU ETS, where the well-to-wake GHG emission level is set by the IMO and allowances are auctioned out. The carbon price is then determined by the market. 

Additionally, there were discussions on a proposed technical measure in the form of a well-to-wake GHG intensity fuel standard. 

MEPC 78 did not develop these proposals further, and discussions will continue at an intersessional meeting prior to MEPC 79 and following meetings. The decision on which measures to develop into regulations will be made at MEPC 80 in July 2023

On-board CO2 capture

Due to time constraints, only a very brief discussion was held on provisions for taking into account on-board CO2 capture in instruments such as the EEDI and CII. The topic will be discussed further at future meetings.

Lifecycle GHG/carbon intensity for marine fuels

An intersessional working group prior to MEPC 78 developed draft guidelines on lifecycle GHG/carbon intensity for marine fuels. The work will continue through a correspondence group reporting to MEPC 80 in July 2023.

Identification and protection of special areas, ECAs and PSSAs

MEPC 78 considered and approved a proposal for a Sulphur Emission Control Area (SECA) to be established in the Mediterranean Sea. The proposal is subject for adoption at MEPC 79 in December of this year, and is expected to take effect from 1 July 2025. The requirement will be the same as for other SECAs, mandating the use of fuel oil with a sulphur content of 0.10% or of an EGCS.

Recommendations

DNV recommends that our customers evaluate possible technical and operational modifications to comply with the upcoming GHG requirements and, when applicable, to prepare and submit an EEXI

Technical File and a SEEMP Part III for verification.

Note: The full version of this news can be downloaded here

 

Photo credit and source: DNV
Published: 13 June, 2022

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Newbuilding

Singapore: EPS orders ammonia, LNG dual-fuel vessels from China

EPS signed one contract for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International.

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Singapore-based Eastern Pacific Shipping (EPS) on Wednesday (28 February) said it signed two new contract orders in a signing ceremony in Shanghai, one for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International. 

The contracts signed cover four 210,000 dwt ammonia dual-fuel bulk carriers and two 111,000 dwt LNG dual-fuel LR2 oil tankers, expanding our fleet of green vessels on water. 

“These are pivotal for EPS, testament to our continued commitment towards the decarbonisation of shipping,” EPS said in a social media post.

Manifold Times recently reported EPS signing a contract for its first ever wind-assisted propulsion system, partnering with bound4blue to install three 22-metre eSAILs® onboard the Pacific Sentinel

The turnkey ‘suction sail’ technology, which drags air across an aerodynamic surface to generate exceptional propulsive efficiency, will be fitted later this year, helping the 183-metre, 50,000 DWT oil and chemical tanker reduce overall energy consumption by approximately 10%, depending on vessel routing.

Related: Singapore: EPS orders its first wind-assisted propulsion system for tanker

 

Photo credit: Eastern Pacific Shipping
Published: 1 March 2024

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LNG Bunkering

Malaysia: Port of Tanjung Pelepas completes first LNG bunkering operation

Landmark event involved the CMA CGM Monaco, a 14,024 TEUs containership operated by French shipping giant CMA CGM.

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Port of Tanjung Pelepas Sdn Bhd (PTP), a joint venture between MMC Group and APM Terminals, on Wednesday (28 February) announced a significant milestone with the successful completion of its first Liquefied Natural Gas (LNG) bunkering operation. 

The landmark event involved the CMA CGM Monaco, a 14,024 TEUs (Twenty-foot Equivalent Units) capacity containership operated by French shipping giant, CMA CGM.

Tan Sri Che Khalib Mohamad Noh, Chairman of PTP in a statement remarked this latest milestone demonstrates PTP’s commitment to continuously enhance its competitive advantages in an increasingly competitive global market.

“The successful completion of our first LNG bunkering operation also underscores our unwavering commitment to sustainability and environmental leadership. We are proud to partner with Petronas Trading Corporation Sendirian Berhad (PETCO) and CMA CGM on this initiative and showcase PTP’s capabilities as a leading facilitator of clean and efficient maritime operations.”

“This milestone paves the way for further growth in LNG bunkering at PTP, contributing significantly to the decarbonisation of the maritime industry.”

Commenting on this achievement, Mark Hardiman, Chief Executive Officer of PTP stated this latest milestone further highlights PTP’s position as the largest transshipment hub terminal in Malaysia.

“In preparation for the LNG bunkering operation, PTP worked closely since March 2022 with PETCO and CMA CGM, as well as with various other related government agencies to organise table-top exercises (TTX) and workshops, before carrying out the deployment exercise.”

“The success of the bunkering operation is a result of the seamless collaboration and preparations involving rigorous safety procedures through in-depth operational and risk assessments, modelling, and validation. We thank PETCO, CMA CGM all other involved parties for their joint efforts in operationalising the bunkering capability and we welcome partners to work with us to accelerate maritime decarbonisation,” said Hardiman.

Port of Tanjung Pelepas (PTP) is Malaysia’s largest transshipment hub with the capacity to handle 13 million TEUs annually. The port delivers reliable, efficient, and advanced services to major shipping lines and box operators, providing shippers in Malaysia and abroad with extensive connectivity to the global market. PTP is currently ranked 15th among the world top container ports.

 

Photo credit: Port of Tanjung Pelepas
Published: 1 March 2024

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Alternative Fuels

Wallenius Wilhelmsen to order four additional methanol DF PCTCs

Newbuilds will also be ammonia-ready and able to be converted as soon as ammonia becomes available in a safe and secure way.

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Wallenius Wilhelmsen PCTC order

Roll-on/roll-off (Ro-Ro) shipping company Wallenius Wilhelmsen on Tuesday (27 February) declared options to build four additional next-generation Shaper Class pure car and truck carrier (PCTC) vessels.

The 9,300 CEU methanol dual fuel vessels can utilise alternative fuel sources, such as methanol, upon delivery. They will also be ammonia-ready and able to be converted as soon as ammonia becomes available in a safe and secure way.

“Together with our customers we are committed to further shaping our industry and accelerating towards net zero. These new vessels are a vital part of that journey,” says Xavier Leroi, EVP & COO Shipping Services.

This latest commitment brings the total number of Shaper Class vessels currently on order with Jinling Shipyard (Jiangsu) to eight. Wallenius Wilhelmsen also retains further options.

The first of the Shaper Class vessels already ordered are expected to be delivered in the second half of 2026. The four additional vessels under the declared options will be delivered between May and November 2027.

 

Photo credit: Wallenius Wilhelmsen
Published: 1 March 2024

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