EMEA News
Baltic ECA Report: LNG and Scrubbers are "Secondary Solutions" to Distillates
The Baltic Ports Organization's (BPO's) Friday announced the release of its latest report on the implementation of the region's emission control area (ECA), which says that liquefied natural gas (LNG) and scrubbers are considered "secondary solutions" for compliance compared to distillate fuels, with 86 percent of vessels utilising distillates.
BPO's report, titled "EU Sulphur Directive – one year after its entry into force" analyses the impact the region's sulfur ECA regulation has had on the Baltic shipping sector, focusing specifically on shipowners' compliance measures, as well as structures and surcharge levels implemented by shipping lines operating within the Baltic ECA.
From both a technical and financial standpoint, the report suggests that distillates is currently considered the "easiest compliance method."
"A radical drop in the oil prices in 2015 and the following changes to the bunkering market made the distillates attractive to shipping operators," stated BPO.
"The costs of bunkering, after switching to MDO, did not increase during the first year of SECA implementation."
BPO notes that an estimated 160 vessels have been equipped with scrubbers worldwide, 83 of which operate within the European ECA.
63 of those 83 vessels are classified under the Ro-Ro and ferry fleet, making the segment a "key target" for implementing scrubber technology, said BPO.
In terms of compliance, the report shows that a high rate of compliance was observed during the first year of the ECA's implementation.
Although a "quite significant" number of non-compliance results during the period were associated with the bunkers used by ship operators, BPO adds that a large portion of non-compliance cases involved false ship log book entries that detailed erroneous fuel changeover procedures, as well as bunker delivery notes (BDNs).
"The North and Baltic Seas are some of world’s busiest shipping areas. The implementation of the SECA regulation was a complex process in need of careful analysis," explained BPO.
In April, BPO announced that it received approval from the EU's Strategy for the Baltic Sea Region (EUSBSR) Seed Money Facility, as well as a €46,140 ($52,547) grant from the EU, for its Green InfraPort project, which will see the development of LNG bunkering infrastructure and scrubber waste reception facilities at Baltic ports.
