EIA to Study ECA Impact on Bunker Demand

by Ship & Bunker News Team
Wednesday June 17, 2015

The U.S. Energy Information Administration (EIA) says it has contracted with Leidos Corporation (Leidos) to analyse the impact of Emissions Control Areas (ECAs) in North America and the Caribbean on ocean-going vessel fuel usage.

EIA says Leidos has developed a new methodology for calculating fuel consumption by ocean-going maritime vessels within ECAs in the U.S. for several ship types, and energy and non-energy commodities.

Leidos has also created a methodology for projecting ocean-going vessel travel demand by commodity and ship type, ship efficiency, and fuel choice by various compliance choices, including exhaust scrubber controls, fuel switching, and engine-based controls

As a product of the study, the EIA reportedly plans to update the upcoming Annual Energy Outlook 2016 to include a new methodology for calculating the amount of fuel consumption by ocean-going vessels traveling though North American and Caribbean ECAs, including the impact of the various compliance strategies.

The EIA says it also plans to update the methodology for calculating ocean going vessel energy demand to include estimation of fuel consumption by ship type and the commodity being moved.

The new methodology will also estimate energy consumption within and outside ECAs.

In addition, the EIA says it will also explore the interplay between refinery operation, refined product slates, and marine fuels in light of the impact of emission regulations.

Leidos is said to have recommended the study of additional issues for future model improvements as more data becomes available, including expanding the scope of the marine fuel estimates to include travel beyond North American and Caribbean ECAs, and inland waterway transit, as well as fuel usage estimates tied to U.S. ports for tugs, barges, and lightering vessels, fishing vessels, cruise ships, and other commercial vessels

Leidos reportedly also recommended the future study of fractioning the fuel purchases made in the U.S. versus abroad, as well as improvements the future projections of fuel usage, including slow steaming and auxiliary power needs, and technology adoption.

Since January 1, 2015 all vessels travelling within the North American ECA must either burn a marine fuel with a sulfur content not exceeding 0.10 percent, or use an approved equivalent method of compliance.

In January, the U.S. Environmental Protection Agency (EPA) issued its penalty policy for violations by ships of ECA rules.