Business

Scrubbers: A mature platform for asset futureproofing

Embracing proven technology that can bridge the gap between current and future environmental regulations will enable the industry to move forward confidently, says Scott Oh of Wärtsilä Exhaust Treatment.

Published

1 year ago

August 3, 2023

Admin

Scott Oh, Director, Asia Operations at Wärtsilä Exhaust Treatment, recently shared with Singapore bunkering publication Manifold Times on their success in the current market for scrubbers and recent scrubber sales in Asia as well as elaborates on its CCS-Ready 35MW scrubber:

With the wide and relatively stable spread between high and low sulphur fuels, scrubbers continue to present a favourable economic proposition, and payback time has now reached less than two years for several vessel types.

These technologies’ role in Global Sulphur Cap compliance is well known. But, today, beyond solely tackling SOx, scrubbers have become a platform from which multiple technologies can work together in the stack and throughout the exhaust chain. This includes tackling NOx emissions by adding selective catalytic reduction systems (SCR) or exhaust gas recirculation systems (EGR) to ensure compliance with MARPOL Tier III requirements. In addition, scrubbers can reduce Particulate Matter (PM) 2.5 levels below even standard land-based requirements and a filter can be applied to capture microplastics.

Finally, and most importantly, scrubbers can now also be installed in a way that sees them primed and ready for onboard CO2 capture and storage (CCS), making them a futureproofed investment for achieving marine decarbonisation goals in a short timeframe. This has been particularly recognised in Asia and by Asian shipowners, because it is here where Wärtsilä received its first order for CCS-Ready scrubbers in November 2022. This landmark order includes systems for four 8,200 TEU container vessels which will be fitted with Wärtsilä’s CCS-Ready 35MW scrubber in an open loop configuration.

At its core, CCS-Ready means that Wärtsilä is conducting the requisite engineering and naval architecture at the outset to ensure adequate space for the future installation of a CCS system, as well as incorporating considerations for minimising idle load and optimising utilities, and preparing the control and automation system.

Owners are looking to future-proof their existing fleet and newbuildings while the regulatory environment is still evolving and at a time when yard space is in high demand. Concurrently, they are taking advantage of higher charter rates, particularly in the container ship market, so for retrofits, minimising off-hire time is critical. They need a partner that has the ability, relationships and experience to cooperate with yards and manage the process from sales to installation.

A first 2D layout drawing provides owners with an understanding of the scope of the installation and enables onboard space to be reserved. A full technical feasibility study can then be undertaken before or after contract signing. Owners typically make most decisions within the first four weeks after contract signing. This is when the equipment, piping and possible tanks are modelled, and owners may consider their preferences, such as tank locations, to ensure the design process is straightforward.

This phase also includes considerations on how best to futureproof the installation, leaving room for adaptation to CCS or hybrid functionality. The work required to allow for a CCS add-on is mainly done on the drawings at this stage, but some modifications can be made to the scrubber body. Space will need to be reserved above the scrubber and the funnel may need raising a few metres. In some cases, it makes sense to do this as early as possible.

Shipyard involvement is critical. Generally, shipyards should take the input of suppliers and ‘own’ the detailed designs themselves, ensuring a smooth and fast process that avoids confusion during installation. Co-operation between the basic and detailed designer remains important, and a good scrubber manufacturer will act as a link between all parties. In some cases, it is personal relationships and prudent communication skills more than the contract that can ensure positive, timely outcomes.

Wärtsilä has a strong presence in the Asian scrubber market after receiving Type Approval from the China Classification Society (CCS) in 2020. This was achieved when Dalian Shipbuilding Industry ordered a scrubber for the New Treasure, a newbuild VLCC. The vessel was built for Associated Maritime of Hong Kong, part of the China Merchants Energy Shipping (CMES) group, the largest VLCC owner in China.

Owners’ confidence in scrubbers as a technology platform for compliance with IMO goals and the wider decarbonisation picture has increased with advanced scrubber solutions, and by choosing the right partners, they can be confident they will overcome the engineering challenges and remain competitive.

Photo credit: Wärtsilä
Published: 3 August, 2023

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Winding up

Singapore: Annual general meeting set for Xihe Holdings subsidiary

Annual general meetings will be held on 23 September for Nan Chiau Maritime to receive an update on firm’s liquidation, according to Government Gazette notice.

Published

16 hours ago

September 10, 2024

Admin

A notice was published on the Government Gazette on Monday (10 September) regarding the annual general meetings to be held on 23 September for Xihe Holdings subsidiary Nan Chiau Maritime Pte Ltd.

Annual general meetings for Nan Chiau Maritime are to be held at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

To receive an update on the liquidation.
To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up.

The following are the details of the liquidator:

Ho May Kee
Liquidator
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960

Xihe Holdings Pte Ltd and its subsidiaries are owned by the Lim family, who are also the owners of the embattled Hin Leong Trading.

Manifold Times previously reported several resolutions for the firm were passed by written means, including winding-up the company.

Manifold Times also reported directors of Nan Chiau Maritime declaring the company’s inability to continue business.

Photo credit: Jo_Johnston from Pixabay
Published: 10 September, 2024

Methanol

Methanex to acquire OCI Global international methanol business

Transaction includes OCI’s interest in two methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business and a currently idled methanol facility in Netherlands.

Published

16 hours ago

September 10, 2024

Admin

Methanex to acquire OCI Global international methanol business

Methanex Corporation (Methanex) on Sunday (8 September) announced that it has entered into a definitive agreement to acquire OCI Global’s (OCI) international methanol business for USD 2.05 billion.

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia. The transaction also includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and Chief Executive Officer of Methanex.

“The Beaumont plants benefit from access to North America’s abundant and favourably-priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20 percent.”

“We believe the transaction will provide significant long-term value to Methanex shareholders while aligning with our strategic objectives of industry leadership, operational excellence, and financial resiliency,” said Mr. Sumner.

“From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing.”

Nassef Sawiris, Executive Chairman of OCI, added, “We are pleased with the opportunity to achieve a significant ownership position and are highly confident in Methanex’s ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023.”

As part of the transaction, Methanex will acquire the following:

A methanol facility in Beaumont, Texas with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant was restarted in 2011 and since that time the plant has been upgraded with USD 800 million of capital for full site refurbishment and debottlenecking.
A 50 percent interest in a second methanol facility also in Beaumont, Texas, operated by the joint venture Natgasoline LLC (Natgasoline). The Natgasoline plant was commissioned in 2018 and has an annual capacity of 1.7 million tonnes of methanol, of which Methanex’s share will be 850,000 tonnes.
OCI HyFuels, which produces low-carbon methanol and sells industry-leading volumes with trading and distribution capabilities for renewable natural gas (RNG). With nine years of experience in the low-carbon methanol business and with an array of blue-chip customers, this will enhance Methanex’s existing Low Carbon Solutions function with additional expertise in this developing segment.
A methanol facility in Delfzijl, Netherlands with an annual capacity to produce 1 million tonnes of methanol. This facility is not currently in production due to unfavourable pricing for natural gas feedstock.

Closing of the transaction is expected in the first half of 2025. The transaction has been approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other closing conditions including TSX approval for the issuance of Methanex shares to OCI.

The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction.

Photo credit: OCI Global
Published: 10 September, 2024

Alternative Fuels

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Firm said the system is the first Fuel Cell System designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Published

16 hours ago

September 10, 2024

Admin

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Corvus Energy, supplier of energy storage systems (ESS) for maritime applications, on Wednesday (4 September) announced that the Corvus Pelican Fuel Cell System has received Type Approval from classification society DNV.

The system, which was developed through the three-year-long H2NOR project, is the first Fuel Cell System (FCS) designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Corvus Energy said receiving type approval from DNV confirmed that the Corvus Pelican Fuel Cell System meets the most stringent performance and safety standards required by the maritime industry.

Olaf Drews, Head of Engines & Pressurized Equipment Maritime, said: “It is a special fuel cell system, because the Pelican uses nitrogen for inerting of the fuel cell space.”

“It is the first fuel cell system that uses this technology and this brings it to a very preferred safety level. This is a milestone, and we look forward to the first ship project.”

Despite technology improvements and advancements in battery electric vessels, most vessels cannot achieve zero-emission operations for extended periods of time using batteries alone. For vessels on longer routes and vessels that are unable to charge often enough, we need to add clean fuel and fuel cells to enable extended zero-emission capabilities.

CEO of Corvus Energy, Fredrik Witte, said: “Toyota’s unsurpassed knowledge in developing high-quality and efficient fuel cells, in addition to the strong collaboration and high level of maritime experience among the partners in this development project, has been key.”

“This is a milestone for net zero shipping. We now have a high-quality range extender to add to our existing ESS portfolio with the scalability and the safety needed to be a real driver in the future of marine decarbonization.”

The first Corvus Pelican Fuel Cell System is produced and ready to be installed onboard MS Skulebas, a 35-meter fishing and training vessel owned by Vestland County and operated by Måløy Upper Secondary School in Norway.

The vessel already has a 1 MWh battery system onboard. By adding the Corvus Pelican Fuel Cell System and hydrogen storage, the vessel will be able to operate for four days on zero emission.

Photo credit: Corvus Energy
Published: 10 September, 2024