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Title: Is the shipping industry ready for 0.5% global sulphur emission by 2020? – shipowners’ perspective
Authors: Lim, Pei Si
Keywords: DRNTU::Engineering::Maritime studies
Issue Date: 2018
Abstract: Shipping is essential in the transportation of goods globally. However, it emits harmful pollutants, including carbon dioxide, sulphur oxides and nitrogen oxides, into the environment that are responsible for premature deaths. Due to the plethora of sulphur emissions from ships today, International Maritime Organization (IMO) has decided to implement 0.5% sulphur emission by 2020 under the Marine Pollution (MARPOL 73/78) regulations. This project aims to provide a holistic analysis of the readiness of shipowners in adhering to the 2020 sulphur regulations. It explores the top three proposed solutions, namely the Exhaust Gas Cleaning System (EGCS), Liquefied Natural Gas (LNG), and Low Sulphur Fuel Oil (LSFO), for the shipowners to comply to the new regulations. In each of the mentioned technological solutions, this report will discuss their technical and commercial aspects, which covers the functionality of each solutions and investment cost needed respectively. Among the three technological solutions, LSFO is the most favourable compliant method through the analysis of the research findings and surveys instruments such as questionnaires and interviews. It is mainly due to lowest investment cost which does not require huge modifications to the vessel. The report also highlights each of the technical aspect implications that a shipowner may face when adapting to these solutions. The use of the technological solutions towards sustainability are further discussed. EGCS is a short to medium term solution as it creates environmental issues due to the discharge of effluent water. LSFO is a medium to long-term solution as it meets the regulations through reducing the sulphur content in the fuel and least costly method among the solutions. LNG is a long-term solution as it contains negligible sulphur content and benefits to the environment in a long run. As cost is the main consideration for many shipowners, four recommendations are provided. It is suggested that the government could provide monetary incentives to the refiners and maritime technology researchers, to lower fuel output cost and improve on the technological solutions. Additionally, the port authorities could give rewards such as priority in berthing and further waiver in port dues. These will help the shipowners to lower their cost and increase efficiency. Lastly, it will conclude on the readiness of shipowners in adapting to the new regulations and provide an overall conclusion of all the industry players, including the refiners and port authorities, towards the 0.5% sulphur emission regulations by 2020.
Schools: School of Civil and Environmental Engineering 
Rights: Nanyang Technological University
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:CEE Student Reports (FYP/IA/PA/PI)

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