World Bunkering > News > Winter 2009 > ECA comes to America

Tough regulations on emissions have long been a fact of life for shipowners calling at certain ports in the US. Now, however, it looks as if unified regulations are on the way. Speaking at the International Chamber of Shipping (ICS) meeting in London, Jock Whittlesey, environment counsellor at the US embassy to the UK, outlined plans for proposed emission reductions from shipping and ports in the USA.

Shipping is in fact one of the last areas to be addressed in this respect. “It makes sense to first address the largest sources of pollution,” he said. As a result, regulations for road, rail and plant emissions are already in place. Shipping and port operation are the last remaining sector to be unaddressed, he says. Whittlesey expects that the adoption of an ECA covering much of the navigable coast of Canada and the USA (the North, from the Aleutian islands to the Hudson Strait, does not appear to be covered by the ECA), including Hawaii will be proposed in March 2010, to enter force in August 2012. He points out that the proposed NOx and SOx limitations have been harmonised with IMO requirements.

As a result of these changes, US predictions foresee a 30 to 1 benefit/cost ratio, with estimated benefits between $110 and $280 billion by 2030, in terms of both increased work days and reduced deaths and medical bills, against costs of some $3.1 billion. The US government has estimated that this will raise operating costs by some 20% – or an additional cost of $18 per teu for a container vessel making a Singapore-Vancouver-Los Angeles-Singapore round trip, including a passage of some 1,700 nm within ECA waters. The availability of sufficient low-sulphur fuel to meet demand is not likely to be a difficulty, Whittlesey said, given that “ECA volume will increase global distillate demand less than 0.9%”. According to the ENsys WORLD model of fuel pricing, US authorities expect a price spread of some $145 per tonne between residual and distillate fuels.

Timely approval of an ACA will provide certainty for refiners and allow them to plan for the future by installing appropriate technology to meet the demands imposed by the ECA, Whittlesey said. Arthur Bowring underlined the significance of moves to set country-wide emissions standards in the US, saying that any regime imposed by the US could eventually set global industry standards.

US Navy tests algae-based biofuel

US based renewable oil production company Solazyme has been selected by the US Department of Defense (DoD) to research, develop, and demonstrate commercial scale production of algae-derived advanced biofuel that meets the US Navy’s rigorous specifications for military tactical platforms. Solazyme says it will utilise its innovative large-scale algal oil production process to provide renewable F-76 Naval distillate fuel for testing and fuel certification to demonstrate it meets all military specifications and functional requirements.

The contract will further advance research and development on large-scale advanced biofuel production from algae. It includes both R&D and fuel delivery components and calls for delivery of over 20,000 gallons of Soladiesel F-76 renewable naval distillate fuel to the Navy for compatibility testing over the next year. F-76 naval distillate is similar to diesel fuel and is the primary shipboard fuel used by the Navy. “The fuels made with our algal technology reduce greenhouse gas emissions by over 85% versus standard petroleum based fuels,” said Jonathan Wolfson, Solazyme’s ceo.

Solazyme claims that its technology will help the DoD reduce its carbon footprint, combat global climate change and lead in the development of clean and renewable energy sources. Reducing our dependence on foreign oil is a national security imperative, and Solazyme’s technology focuses on producing an abundant, domestic and renewable source for oil and fuels. Solazyme has already produced Soladiesel F-76 fuel that has been delivered to the Department of Defense for initial testing and has met the Navy’s F-76 specification. This program will lead to the eventual certification of Soladiesel F-76 naval distillate for commercial sale to the US military.