IBC spelt out the uncertainties facing the bunker and shipping industries
Claimed to be the longest running conference of its type, the 32nd International Bunker Conference (IBC) took place in Copenhagen’s Hotel Scandic from 6-8 April 2011. The 2010 event took place in Oslo and had ‘The roadmap to 2020’ as its theme.
The event’s organiser, BI Norwegian Business School, said: “After last year’s success in Oslo ‘The roadmap to 2020’ we raised a series of questions: Is it a mission impossible? Or mission possible? Have the regulations had any effect so far, can the industry cope with the regulations and last, but not least, is the development of new technology keeping us on track?”
Summing up those questions, IBC 32’s theme was ‘Fuelling 2021 and beyond – are we halfway there?’ From the presentations the answer was: “Probably not.” The 2021 dateline is of course significant as the 0.50% global sulphur limit is due to come into effect in 2020, subject to the 2018 fuel availability review.
This year’s chairman, Tore Morten Wetterhus, DNV Petroleum Services’ managing director, began by outlining the shipowner’s dilemma. The owner has to adapt to changing times and plan for switching bunker fuels, or taking other measures, by 2020. At the same time he has to be aware of pressure on fuel quality.
Bo Cerup-Simonsen, chairman of the Technical Committee, Danish Shipowners Association and vice president, head of Maersk Maritime Technology, AP Moller Maersk, also talked of the problems facing the owner. He said that the shipowner’s dilemma related to energy and emissions through a decade of change and uncertainty. It was difficult to know what fuel newbuildings being ordered now should burn. Should SOx scrubbers or biofuel be used on certain trades as a supplement or alternative? Alternatively, newbuildings could be designed to use LNG as a fuel.
Colin Crooks, general manager Shell Marine Products Europe/ Africa noted: “The path to the future is not straightforward. There are no easy answers and there is no silver bullet.” Gunnar Kjeldsen, regional manager, DNV Petroleum Services asked whether better quality is a real problem. He accepted that cost is an issue but argued that business can be good, even with high prices.
Given that he was speaking against the background of the ongoing crisis at Japan’s Fukushima nuclear power station, Vince Jenkins, Global Marine Risk Advisor for Lloyd Register, had a rather unenviable task in speaking on the topic “Nuclear power – its potential contribution to the marine industry”. Actually, he put effectively the LR view that nuclear power needs looking at in the mix of future fuel options.
Less controversial, though by no means universally accepted, is the idea of powering the merchant with LNG. Martin von Sydow, Wallenius Marine’s vice president Design LNG gave a presentations on the commercial and the technical challenges moving forward.
Not, of course, that the conference proceedings. There was also, as ever, a lot of networking going on during the breaks and in the evenings, helped along by IBC’s social programme, which included a Live Mass Flow Meter Demonstration on the evening before the conference followed by a welcome reception. On the Thursday there was dinner at the magnificent Tycho Brahe Planetarium. This was preceded by a environmental video with the result that the bunker industry is now much better informed on the detrimental effects of logging on coral reefs.
So, once again, IBC’s organisers put together a well-balanced and informative event. No doubt work is already underway on IBC 33, which will be back in Oslo next year.
Among the challenges Mr von Sydow noted were tank arrangements, availability of bunkers, and large investment. On the plus side he mentioned lower fuel costs, no need for heating and/or treating of fuel, and the prospect of a clean engine room.
So how should we tackle shipping’s environmental challenges? Jacob Sterling, head of climate and environment, AP Møller–Maersk, said: “We believe it is easier to deal with change proactively, rather than reactively. As an industry, we should plan for a patchwork of regulations and work for high global, uniform standards. We should proactively develop alternatives to bunker fuels before regulation and supply issues demand it of us”.
At the end of the conference James Corbett, professor, College of Earth, Ocean and Environment, University of Delaware, reflected on how far the process of preparing for 2020 had gone. He talked the optimist’s half-full glass and the pessimist’s half empty one. But whichever way you view it, IBC turned out to be a useful, timely and informative event.
Added 06 June 2011 in the category: Summer 2011
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Tags: Review, shipping industries, International Bunker Conference, IBC, bunker