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China studies shore power to supplement new emissions rules

Jul 14th, 2016
by Editor.
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http://www.joc.com/regulation-policy/transportation-regulations/international-transportation-regulations/china-studies-shore-power-supplement-new-emissions-rules_20160714.html/

Shore power units, like the one pictured, can help ports bring down their emissions, which they are under increasing pressure to do around the globe.

China’s Ministry of Transport is investigating the widespread use of shore power to help address pollution in the country’s port areas as part of a wider push to reduce maritime emissions, but the haphazard nature of that push has created headaches for container lines and shipowners.

The use of shore power is being studied to supplement the set-up of emission control areas at the main commercial shipping centers of the Yangtze and Pearl River Deltas and the northeastern Bohai Rim. Details of the ECAs, including specific requirements and timelines for enforcement, were announced in a directive and follow-up notifications issued by the ministry from the end of last year.

Shore power projects, which the International Council on Clean Transportation says are a highly effective alternative to fuel switching for emissions reduction, were launched at five major ports across the country together with two ship-shore power conversion projects.

“It (shore power) nearly eliminates NOX (nitrogen oxide), PM (particulate matter), and SOX (sulfur oxide) emissions in port areas due to a cleaner electricity generation mix,” the ICCT found in a recent study on the use of shore power at the Port of Shenzhen. However, it also noted that shore power is a much less cost-effective way of reducing emissions.

“Only if a low-sulfur fuel supply cannot be guaranteed or NOX emissions are dominant concerns should onshore power be prioritized.”

The shore power trials are being run at container terminals in Lianyungang, Guangzhou, Shenzhen Yantian, Shanghai and Ningbo-Zhoushan. The ship-shore power conversion projects involve seven China Cosco Shipping container ships with capacities of 10,000 twenty-foot-equivalent units, and four 250,000 deadweight tonnage bulk carriers from Shangdong Shipping.

The new ECA regulations require ships berthing at key ports in the Yangtze River Delta ECA to use fuel with a sulfur content not exceeding 0.5 percent since April 1 of this year. The requirement is extended to ships berthing at key Pearl River Delta and Bohai Rim ports from January of 2017.

From Jan. 1, 2019, ships operating anywhere in the ECAs, not just at berth, must use fuel with a sulfur content of no more than 0.5 percent.

The regulation excludes Hong Kong and Macau, but Hong Kong’s Environmental Protection Department said it will also implement the requirement.

Analysts said the support of China’s national oil companies, which dominate oil and gas upstream and downstream sectors, and the availability of low-sulfur fuel for vessels would be critical to ensure the success of the regulation.

“Because of strong SOE (state-owned enterprise) ownership in energy supplies it is important to have them fully on board. If they aren’t, or if this regulation will reduce their margins, there is a greater risk that business continues as usual,” Richard Brubaker, adjunct professor of management, sustainability and responsible leadership at the China Europe International Business School told JOC.com

Ships that don’t comply with the new ECA regulation are liable for fines of between $1,500 and $15,000 under the Law of the People’s Republic of China on the Prevention and Control of Air Pollution.

The China Maritime Safety Administration has issued guidelines on the implementation and supervision of ECAs that state how compliance will be verified.

For ships using low-sulfur fuel, verification will be made by a check of bunker delivery notes, fuel changeover procedures, engine room logbook records and fuel oil quality and samples. For ships using alternative measures to reduce emissions, such as shore power, liquefied natural gas or exhaust gas scrubbers, checks will center on International Air Pollution Prevention certification and engine room log books.

China’s Regulation of Prevention and Control of Marine Pollution Act requires ships to keep bunker delivery documents on board for three years and a sample of fuel for one year. Fines of up to $1,500 can be imposed on owners that fail to meet the fuel record keeping requirements.

Huatai Insurance Agency, a mainland-based company that specializes in helping the private sector navigate China’s maritime environment, said the ECA requirements are already being enforced in the Yangtze River Delta.

“There have already been a few cases where [the Shanghai Maritime Safety Administration] has issued penalty notice to ships for failing to keep fuel sample and fuel supply documents onboard as required,” Huatai said in a circular to customers published on its website.

Because of challenges that vessel operators may encounter seeking to comply with the new regulation, the Shanghai MSA launched an exemption scheme that allows shipping companies or agencies to apply for an exemption if using low-sulfur fuel is unsafe for the vessel.

With China home to seven of the world’s 10 largest ports, and given the density of population in its port cities and their surroundings, the lack of central direction on emissions control for ports and shipping is a huge concern both globally and domestically.

Hong Kong led the way when public pressure over pollution levels in the Special Administrative Region led it to launch a scheme for voluntary switching to low-sulfur fuel.

This was made mandatory for all ocean-going vessels at berth in the port in July of last year.

The Shenzhen port complex has a voluntary low-sulfur fuel switching scheme in place, and several other Chinese ports — including Qingdao in Shandong province, Waigaoqiao in Shanghai and Shekou in Shenzhen — have also installed shore power infrastructure as well as electrified vehicles and port equipment to reduce emissions.

Beijing to switch from coal to natural gas for power; hopes to improve air quality and quiet civil unrest

Oct 11th, 2013
by Editor.
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In recent years, China’s major cities have been regularly hit with smog, severely impacting air quality and the health of its citizens. With Beijing the hardest hit of all cities, the city is now set to replace its coal-fired power plants with new ones that use natural gas. From SCMP/Reuters (Beijing):

China will replace four coal-burning heating plants in the capital Beijing with natural gas fired ones by the end of next year as it steps up efforts to clean up pollution, the official Xinhua news agency reported on Saturday.

The report, citing the city’s Municipal Commission of Development and Reform, said the four plants and some 40 other related projects would cost around 48 billion yuan (HK$60.1 billion) and cut sulphur dioxide emissions by 10,000 tonnes. It did not detail the related projects.

The plan is the latest step by authorities to deal with a persistent smog crisis in China’s big cities that is fuelling public anger. The capital has been shrouded in thick hazardous smog for several days during the ongoing seven-day national holiday.

China has been under pressure to tackle air pollution to douse potential unrest as an increasingly affluent urban populace turns against a growth-at-all-costs economic model that has besmirched much of China’s air, water and soil.

Last month the government announced plans to slash coal consumption and close polluting mills, factories and smelters, though experts said implementing the targets would be a major challenge.

The new plants will replace four coal-fired ones that provide heating for homes in the city’s central urban area as well as generating electricity, Xinhua said.

The four burned 9.2 million tonnes of coal in 2012, or 40 percent of the 23 million tonnes the city consumed in the year, it added.

5 Oct 2013

The project was initially met with objections, since natural gas would be much more expensive to source in coal-rich China. The city is expecting huge financial losses if heat and electricity generated from natural gas plants are charged at current rates. But with pictures of smog-filled Beijing splashing international front pages, as well as increasing unrest over pollution in general, it seems that high-ranking government officials stepped in to ensure the project will go through as proposed. (A more in-depth story on this is available on chinadialogue.net)

A coal-fired power plant in Zhejiang, China. Switching to natural gas may be a luxury only Beijing can afford. (China Guodian Corporation)

No mention is made, though, of other sources of pollution, such as vehicle emissions. Once a city of bicycles, Beijing is now home to more than 5.2million motor vehicles and a road network endemic with chronic jams, making a major contribution to the city’s air pollutants. More work would be needed if the city is serious about improving its air quality.

Ferry operators get assurance on the cost of cleaner diesel

Aug 26th, 2009
by AdminCTA.
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Cheung Chi-fai and Anita Lam – SCMP

The extra cost of using cleaner diesel in Hong Kong’s ferries is likely to be much less than ferry operators have claimed, the environment watchdog says.

Ultra-low-sulphur marine diesel, which went on trial in five ferries yesterday, would cost about 60 HK cents a litre more than conventional diesel, not up to HK$3 as the companies had estimated, the Environmental Protection Department said.

But one of the operators said the cleaner fuel would still push up its operating costs by 10 per cent, increasing pressure for a fare rise.

A department spokesman said clean diesel now cost HK$4.50 a litre, compared with HK$3.90 for conventional marine diesel, subject to oil-price fluctuations.

Hong Kong & Kowloon Ferry said that price difference would lead to a 10 per cent rise in operating costs if all its vessels used the fuel.

“The additional cost would erode our meagre profit and increase pressure for a fare rise,” general manager Nelson Ng Siu-yuen said.

Launching the nine-month trial of the cleaner fuel yesterday, the Environmental Protection Department said it would pay up to HK$10 million in incentives for ferry operators to take part. The money was for fuel subsidies and technical monitoring. The trial would provide data on operating costs, and the impact on maintenance and technical performance to help officials decide whether all ferries should use cleaner fuel.

The fuel, 100 times lower in sulphur, will be supplied to five selected ferries by an oil barge operated by Sinopec (SEHK: 0386) in Cheung Sha Wan.

These are New World First Ferry’s Xin Hui III and VIII between Central and Cheung Chau and Xin Ying running from Central to Mui Wo; Hong Kong & Kowloon Ferry’s Hoi Ming connecting Central and Peng Chau; and a Hong Kong and Yaumati Ferry car-carrier between Kwun Tong and North Point.

The Star Ferry did not join the trial, saying its own trial of cleaner diesel in 2006 resulted in loss of power, higher fuel consumption, and engine corrosion. “We will still keep track of the trial results of other ferry operators,” general manager Johnny Leung Tak-hing said.

The department spokesman said there had been no mechanical problems for government vessels since they started using the cleaner fuel in 2000. He said there were other solutions to resolve the operators’ worries about the lubricating effect of sulphur in the engines.

The spokesman said that if all local passenger ferries switched to the cleaner fuel, the total sulphur emissions from the marine sector could be cut by about 12.5 per cent. Other sulphur emissions come from domestic vessels such as barges and fishing boats, as well as ocean-going vessels and cross-border ferries.

The Marine Department said four local vessel operators were convicted for black-smoke emissions last year, compared with none in 2007

The Port of Hong Kong

Feb 25th, 2009
by AdminCTA.
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http://www.energy-futures.com/ – download the full report here.

Case Study: Hong Kong

The Port of Hong Kong has been a leading Asian seaport for more than a century and a top container port for more than three decades. Between 2001 and 2006, Hong Kong container throughput increased by 32 percent from 17.8 million to 23.5 million TEUs. Containerized cargo in Hong Kong now represents about 74 percent of Hong Kong’s total cargo throughput. In 2006, Hong Kong was the second largest container port in the world, although it is likely that it was surpassed by Shanghai in 2008. The port is served by 80 international shipping lines with over 450 container liner services per week to over 500 destinations worldwide. The port is managed by the Marine Department of the Hong Kong Special Administrative Region (SAR), the local government for the city.

Hong Kong is located in the Pearl River Delta, which includes other cities and container ports, including the Port of Shenzhen, the world’s fourth largest container port. Container traffic at Shenzhen has also steadily risen recently, to 18.5 million TEUs in 2006 compared with 5.0 million TEUs in 2001. Together, in 2006, the Hong Kong and Shenzhen ports accounted for 9.5 percent of global container volume, making the Pearl River Delta the largest container handling region in the world. Cargo throughput is expected to grow. A study commissioned by the Hong Kong Transport and Housing Bureau estimates that, by 2030, Hong Kong will handle between 39 and 43 million TEUs.

Air quality in the Hong Kong is generally poor and levels remain much higher than the World Health Organization’s air quality guidelines. Since 1990, emissions of all air pollutants have risen dramatically.

Sulfur dioxide and nitrogen oxides doubled and particulate matter showed over a 90 percent gain. In 2006, Civic Exchange, a nonprofit public policy research organization based in Hong Kong, published a report, Marine Emission Reduction Options for Hong Kong and the Pearl River Delta Region, which found that local vehicle and marine emissions are the dominant source of air pollution in Hong Kong during prevailing wind conditions that exist about one-third of the year.

Governments and other stakeholders in the maritime sector have already implemented some positive measures including the promotion of low sulfur fuel use by marine vessels and port vehicles, the use of electricity to power port machinery and the reduction of fuel consumption through efficiency measures. These measures in themselves have not been sufficient to reduce port emissions on a scale necessary to protect public health, but pressure to take more ambitious action is growing.

In February and March 2008, Civic Exchange sponsored two workshops for stakeholders involved in port environmental issues. The working group for the workshop included four stakeholder groups: oceangoing vessel operators, port operators, local craft harbor operators and land vessel operators involved in port activities. The stakeholder groups all endorsed government incentives to encourage green technologies and to pay the incremental cost of ultra low sulfur diesel fuel compared to lower grade conventional fuels. They also supported increased research and development of advanced technologies for marine applications, pursuit of shore power use by berthed ships and the creation of a low emission area subject to IMO regulations.

The recommendations of the working group were used by Civic Exchange in the development of its July 2008 report, Green Harbours: Hong and Shenzhen — Reducing Marine and Port Related Pollution. The report’s five key recommendations are as follows:

• In the short term: Foster greater regional collaboration across borders, port and marine sectors
• In the medium term: Develop a comprehensive green ports strategy and related policy measures to create the regulatory and planning framework for implementing green port policies
• Develop cleaner fuels initiatives to encourage the use and availability of cleaner fuels
• Expand training programs for industry employees to encourage proper equipment operation to ensure efficient operation
• Conduct additional port related research to identify new green port projects suitable for Hong Kong

Hong Kong is responding to the increased recognition of the role of port activities in the city’s environmental problems. In June 2008, Hong Kong ratified the MARPOL Annex VI marine fuel quality standards as a Special Administrative Region of China recognized at the IMO separately from the national government in Beijing, which had already ratified the agreement. It plans to go beyond the new IMO regulations by applying fuel quality standards to local shipping as well as international commerce
regulated by the IMO.

Emissions from ships in Hong Kong harbor are regulated by the Marine Department. Ships in the harbor now use 5,000 ppm sulfur fuel. The ferry system will start running a trial using 50 ppm sulfur fuel early next year. Assuming the results are positive, political leaders seem committed to continue its use in ferries, but not to expand it to other craft without the cooperation of other cities in the Pearl River Delta mooring local marine craft.

The Hong Kong Shipowners Association (HKSOA) was very active during the few years of debate before the MARPOL Annex VI Amendments were adopted in October 2008, says Arthur Bowring, Managing Director of the group. The HKSOA represents more than 100 shipping companies that own more than 1,100 ships. “Environment is our biggest single challenge,” adds Bowring, referring to shipowners.

The Environmental Protection Department (EPD) is the chief air pollution regulatory agency in Hong Kong for landside emission sources, including all types of motorized vehicles. “Marine emissions are a new issue for us,” notes W.C. Mok, Principal Environmental Protection Officer.206 There are currently no regulatory standards that apply to offroad cargo handling equipment at ports. Onroad trucks fueling in Hong Kong are required to buy diesel fuel containing only 10 ppm sulfur, but when refueling takes place across the border with mainland China, they are subject only to a 500 ppm sulfur cap. Since most trucks delivering containers to Hong Kong pick up their cargo at mainland factories, most diesel fuel burned in Hong Kong is the higher sulfur content grade.

The 10 ppm fuel is much more expensive, even with an exemption from sales taxes offered by Hong Kong. The EPD is currently studying the technical feasibility of using compressed or liquefied natural gas in heavy duty vehicles. It will examine the results in 2009. The EPD is also studying options to reduce air pollution from cargo handling equipment at container ports.

As government agencies assess regulatory options, several private container terminal operators are moving ahead to deploy hybrid electric rubber tire gantries (RTGs). Seventeen hybrid electric RTGs were deployed at Container Terminal 4 owned by Hong Kong International Terminals (HIT) in 2008. They are the first step in a $18 million (U.S. dollars) program to equip 81 RTGs with hybrid electric drivetrains, about 70 percent of HITs total fleet. The hybrid RTGs are fitted with lithium ion batteries that provide power to help lift containers. The batteries are recharged by regenerative braking energy generated during the lowering of containers and from a generator powered by the onboard diesel engine.

In October 2008, Modern Terminals Ltd. signed a contract with Kawatoyo Electric Company Ltd., the sole agent for Yaskawa Group Port Crane System, to convert 44 RTGs with hybrid electric drivetrains at its terminal in Hong Kong by mid-2009. The drivetrains are being developed by Yaskawa Electric Corporation. They use ultracapacitors as the onboard energy storage technology.

The Modern Terminals Da Chen Bay Terminal 1 at Shenzhen already uses hybrid electric RTGs. The terminal is the first to convert its entire RTG fleet to hybrid electric drivetrains. Modern Terminals associate company, Taicang International Container Terminal, is currently converting its fleet at the Port of Shanghai to hybrid electric RTGs.

In other programs at Shenzhen, Shekou Container Terminal (SCT) is installing auxiliary generators onboard its entire fleet of 78 RTGs by the end of 2010 at the port of Shekou. It is also installing rail mounted gantry cranes (RMGs), which are quieter, last longer, and are 20 percent more efficient than conventional RTGs. By the end of 2008, SCT plans to install 16 RMGs. Another initiative is studying the use of using hybrid technology or LNG yard tractors.

Yantian International Container Terminals (YICT) is the largest port in Shenzhen, handling 10 million TEUs in 2007. YICT has converted 12 of its 200 RTGs from conventional to hybrid electric drivetrains, and plans to switch another 60. The RTGs are equipped with supercapacitors, which are yielding a 25 percent energy savings by capturing and reusing energy released as containers are lowered to the ground. Anticipating shoreside power, YICT has started installing infrastructure works and is studying power converter technology before implementing this new technology. It is also promoting rail transportation from the port on its dedicated rail line. Each train can transport 50 containers in one journey, making them more efficient and cleaner than trucks.