Industry Insight: Supporting Regulatory Plans to Curb Black Carbon Through Incentivised Eco Technology

With a black carbon definition secured at MEPC68, the IMO is forging ahead with plans to curb emissions in the Arctic to reduce international shipping's impact on global warming. However with many considerations still to be addressed before new legislation is rubber-stamped, the shipping industry is taking the initiative now to reward black carbon reduction through financial incentives, such as the Port of Antwerp's particulates discount scheme. As a growing number of port communities call for action on emissions, Rod Weinberg, director of SulNOx Fuel Fusions PLC, outlines the key role fuel emulsions can play in reducing black carbon, and the opportunity to reap savings faster through the adoption of emulsions in new incentive schemes.

The International Maritime Organisation's (IMO) bid to introduce black carbon control measures in the Arctic finally left the starting blocks in May 2015 when MEPC68 adopted Bond et al's black carbon definition. While the IMO's persistence in addressing black carbon should be applauded (the issue was first tabled on IMO working agendas four years' ago), two key objectives must still be met before new legislation can be agreed.

Firstly, the IMO must gain an accurate picture of the level of black carbon emitted by international shipping operations in the Arctic, and its associated impact on global warming. Upon collection of this data, the IMO must secondly report back on its findings and use the data gained as leverage to propose necessary control measures on black carbon that will reduce global warming in the Arctic to acceptable levels. The latter objective is a particular challenge when a minority of member states including Russia remain staunchly opposed to black carbon regulation, which they claim will have a negligible impact on climate change.

Against this complex regulatory landscape, there are no guarantees that legislation to curb black carbon will come to fruition and a final verdict from the IMO may be years away. In the interim many respected academics argue that if black carbon continues to be deposited on ice in the Arctic the 'albedo' effect that restricts the sun's impact on ice cap melting will be severely compromised and the effects of global warming will be significantly accelerated.

Outside the Arctic, black carbon poses long-standing environmental and reputational issues particularly for the passenger and cruise sector where black plumes emitted at port offer a stark visual representation of air pollution. The symbolism fostered by these black plumes is so significant that residents in White Bay, near Balmain in Sydney complained of suffering serious health problems since a new cruise ship terminal moved from Barangaroo in 2013. This follows residents at Port Melbourne's Beacon Cove, whose apartments face onto Melbourne's busy Station Pier, airing concerns they are being badly affected by fumes from tourist ships burning what they describe as 'highly toxic bunker fuel'.

Supporting and Rewarding Technology Pioneers

Concerns about black carbon are not isolated to the Arctic and Australia. In Europe, the Port of Antwerp has acknowledged that despite significant efforts to curb emissions, shipping still makes a significant contribution towards local air pollution. In order to address the issue the port announced in May 2015 that it would grant voluntary discounts to seagoing ships that use alternative technology to reduce emissions of particulates, a group of pollutants that includes carbon monoxide (CO), carbon dioxide and black carbon solids (soot).

The new discount, which aims to reward early adopters of green technologies that promote more sustainable shipping, comes on top of the existing Environmental Ship Index (ESI) discount. ESI enables ship owners and operators using the port to gain credits for technology and operational measures that improve a vessel's performance to levels over and above existing NOx, SOx and CO2 regulations. Collectively, those eligible for the two incentive schemes could receive a discount of up to 30% on port fees.

Current plans see the Port of Antwerp offering discounts to vessels that adopt particulate reduction technologies for an initial three-year period, with the amount awarded gradually reduced to support early adopters who make necessary investments to improve environmental performance now.

However based on the considerable concern about black carbon in other regions such as Australia, it would be folly to suggest that other ports will not follow suit with similar financial incentives to clean up the air in their local communities. Currently, the Port of Antwerp scheme only rewards particulates reduction achieved through vessels operating scrubbers in closed loop mode or LNG bunkers used for a period of at least 24 hours before entering port. However, the maritime industry should remain open minded and explore and incentivise all avenues that are proven to support significant reductions in particulates.

Importantly, solutions that require minimal upfront investment and that are pre-combustion technology should not be overlooked, or the industry could lose the opportunity to engage with those ship owners and operators who are environmentally minded but lack the resources or impetus to invest significant capital in eco efficiency upgrades.

Emulsion Application to Curb Black Carbon

An example of a pre-combustion technology that can make a significant impact with minimal upfront investment cost is fuel/water emulsions. SulNOxEco™ Fuels permanently combine standard fuels with water to lower flame temperatures in combustion engines (to reduce NOx) and significantly aid the fuel to burn more efficiently; thereby drastically cutting particulate matter (PM) by over 90% and nitrogen oxide (NOx) by over 60%, while achieving up to an 8% improvement in energy efficiency. Importantly for the cruise and ferry sector, emulsions also have the ability to neutralise black plumes emitted at port and could therefore prove a key tool in negating the reputational impact of the industry within surrounding communities.

Unlike other eco efficiency technologies, SulNOx's technology comes at no cost to the ship owner or operator's bottom-line financials aside from an initial license fee. The ongoing costs of emulsification are recouped from a share in the fuel savings generated by the technology, which can be a significant percentage, depending upon factors including vessel type, speed and age.

Ship owners and operators will be aware that fuel/water emulsions are not a new concept – indeed the concept is over 100 years old. However emulsions have previously suffered notable reputation issues due to an inability to provide economy, efficiency and most importantly, stability i.e. no separation of the fuel and water.

Research and deployment by SulNOx provides compelling evidence of a solution to these previously unresolved issues. The company's environmentalists and entrepreneurs, supported by a team of impartial third party researchers, have been testing SulNOxEco™ Fuels since October 2012 and have found the technology to be entirely stable i.e. no stratification and able to maintain a stable shelf life of more than two years. Indeed specimens statically store since the start of the trial remain safe, usable, homogenised fuels.

Supporting the IMO through Market Driven Measures

As a relatively conservative business, shipping rarely commands the attention of those outside the industry, despite its vast size and role in transporting 90% of the world's goods. However with black carbon concerns making waves outside the industry among port communities and on the wider agendas of environmentalists monitoring changes in the Arctic, the shipping industry faces increasing pressure to take action. 

While the IMO aims to address concerns through regulatory change, the adoption of black carbon controls may be viewed as 'too little, too late' by those already concerned about the impact of emissions. As work progresses at the IMO, interim measures to address outstanding complaints must be found through market based mechanisms that encourage ship owners and operators to pursue environmental improvements.

Initiatives such as the Port of Antwerp's particulates discount scheme form a strong base to build on, but the adoption of widespread black carbon reducing technologies will require the integration of more solutions into reward schemes, providing ship owners with greater choice so that they can tailor environmental improvements to suit the unique needs of their vessel or fleet. Fuel emulsions present one example of a technology that offers significant particulate matter reductions with the added benefit of minimal upfront investment cost.