A Clean Approach to Oil Discharge Compliance

Presented by:Scott Groves, Business Development Manager

PosidoniaJune 9, 2016

Overview

• Problems with oil/sea interfaces in propeller shaft lines

• Regulations impacting ship owners� US EPA – Vessel General Permit

� Polar Code� Polar Code

• Options to meet new regulations

� Air Seals

� Oil-based EAL’s

� Seawater lubricated propeller shaft lines

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Propeller Shafts Lubricated With Oil

• Typical stern tube system has 1500 to 3000 litres of mineral oil

OIL

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Oil to seainterface

Oil Lubricated Propeller ShaftsTailshaft and pod seals do not

operate in a perfect environment• Pollution risk

� Seal must leak to lubricate its sealing lip

� Oil pollution from leaking shaft or pod seal• Rope and fishing line damage seals• Rope and fishing line damage seals

� Escalating detection and enforcement• MARPOL Annex I

• Satellite tracking

• Criminal fines

• Jail terms

� Increased expectation of corporate

responsibility• Damage to corporate brand and image

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Oil discharges from commercial ships… a serious problem

• Approximately 95% of commercial ships use oil lubricated metal propeller shaft bearings.1

• Total worldwide use of lubricants from operational leaks and discharges estimated to be about 130 million to 244 million litres annually. Equivalent to 5 Exxon Valdez oil million litres annually. Equivalent to 5 Exxon Valdez oil spills.2

• U.S.A. fined Greek ship owner (in 2010) $700,000 for stern tube oil discharges to US Waters

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1 Data related to Propulsion systems, IHS Fairplay database

2 Etkin, Dagmar Schmidt. Environmental Research Consulting “Worldwide Analysis of In-Port Vessel Operational Lubricant ,” Arctic and Marine Oilspill Program

Technical Seminar of Environment Canada, 8 June 2010, Halifax, Canada

DNV Report – Operational Oil Discharges Not Effectively Regulated

• Prepared for Norwegian Maritime Directorate• Discharges from shipping during regular

operation in polar areas • Presented at IMO DE 54 (Aug. 2010)

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•

As a potentially relative large source of operational oil discharge, however still not effectively regulated and of unknown exact magnitude, stern tube leakage should be addressed as a particular environmental aspect in the polar environment as well as in other areas. Of particular importance under ice operation is the potential for especially high leakage rates, and the proximity to ice with regards to deposition of oil.

Oil Slick Detectionsvia Satellite

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European Maritime Safety Agency Bulletin 2009 CleanSeaNet: Satellite-based monitoring service for marine oil spill detection and surveillance in European waters, pp 48-51

New Polar Code

• Development of a Polar Code for ships operating in polar waters

• Polar waters will be “zero discharge” areas under MARPOL Annexes 1 and 2 (oil and noxious liquids).

• The Code states: “Any discharge into the sea of oil or oily mixtures from any ship shall be prohibited.”

• Polar Code enters into force:

January 1, 2017

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Trading in US Waters?

• 2013 Vessel General Permit (VGP) regulates discharges from commercial vessels in ‘US waters’ effective Dec. 19, 2013

• Section 2.2.9: All vessels must use an EAL

“Environmentally acceptable lubricant” in all oil to “Environmentally acceptable lubricant” in all oil to

sea interfaces, unless technically infeasible

• EPA recommends that all new build vessel

operators endeavor to use seawater-based

systems for their stern tube lubrication to

eliminate the discharge of oil from these

interfaces to the aquatic environment.9 http://www.epa.gov/npdes/vessels

Compliance with the VGPSolutions for Ship Owners

For Oil/Sea Interfaces (stern tubes)

• Use of oil EAL’s

� Synthetic, PAG’s, oil or vegetable based

• Complex air shaft seals• Complex air shaft seals

• Use of seawater as an EAL; no aft seal required as no oil/sea interface

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PAG’s, Synthetics and vegetable-based EAL’s…

Still considered a pollutant� Oil-based EAL’s are still considered a pollutant under the

Oil Pollution Act of 1990 (OPA ‘90) and US Clean Water Act (if there is a sheen)

� Any discharges of oil-based EAL’s still require reporting of the discharge to the U.S. Coast Guard, as well as , as well as having clean-up and remediation costs, if required.

� Even though biodegradable lubricants may be deemed non-toxic by OECD testing, their presence on the water surface is a threat to seabirds

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Accidental Oil LeakageLloyd’s Register reports on shaftline defect statistics over the last 20 years: “interestingly,

aft stern seal and forward stern seal represent

43% and 24% of shaftline failures respectively.”

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Rope and fishing line damage aft seals.3 Smith, Andrew, Lloyd’s Register Global Technology Leader-Engineering Systems .,

“Shaft Alignment Problems Analyzed,” Marine Engineers Review April 2009, pp. 16

Accidental Oil Leakage

• Typical causes of increased oil leakage from stern tube seal damage:

� Fishing nets or rope caught in the propeller

� Propeller shaft misalignment

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� Propeller shaft misalignment

� Aged or worn lip seals

� Propeller contact

with ice or striking bottom

Stern Tube Lubricants

€1.12/L

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€9.41/L

€0/L

Seawater Lubrication

• Seawater as a lubricant dates back to earliest days of shaft driven propellers

• Today’s seawater lubricated propeller shaft lines quite different than those of 1940’s

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Today’s Seawater Lubricated Propeller Shaft Bearing System

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ElastomericPolymer Alloy Bearings

• Toughness, abrasion resistance, shock loading

• Typically, 2:1 L/D ratio for AFT bearing and 1:1 L/D ratio for FWD position

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Water Quality Package

• Designed to provide a clean supply of water to the water lubricated bearings

� Controlled environment

• Flow is monitored and low flow alarms provided

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� Removes abrasives

� Improves bearing wear life

� Self contained unit

� Several configurations available

New Lloyd’s Register Rulesfor Water Lubricated

Propeller Shaft Bearings

• New SCM (Screwshaft Conditioning Monitoring) Notation

� For water lubricated propeller shaft bearings� For water lubricated propeller shaft bearings

� Effective Jan. 2013

• If vessel is compliant, no shaft withdrawal until 18 years from newbuild

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New Bureau Veritas Rulesfor Water Lubricated

Propeller Shaft Bearings

• Revised MON-SHAFT Notation

� For water (and oil) lubricated propeller shaft bearings

� Effective Jan. 1, 2014� Effective Jan. 1, 2014

• The tailshaft need not be withdrawn provided that all condition monitoring data are found to be within the permissible limits and remaining surveys are complied with

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New DNV-GL Rulesfor Water Lubricated

Propeller Shaft Bearings

• Revised T-MON OL Notation

� For open loop water lubricated propeller shaft bearings

� Effective January 2016.� Effective January 2016.

• The tailshaft need not be withdrawn provided that all condition monitoring data are found to be within the permissible limits and remaining surveys are complied with

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Who Uses Seawater Lubricated Propeller Shaft Bearings?

Over 600 commercial ships including…• COSCO (China) - 12 bulk carriers, 3 car carriers, 20 On order

• ConocoPhillips (U.S.A.)- 5 oil tankers

• Flinter Group (Netherlands) – 24 dry cargo ships

• Disney Cruise Lines (U.S.A.) – 4 cruise ships

• BC Ferries (Canada) - 10 ferries

• Carisbrooke Shipping (U.K.) - 8 dry cargo ships

• CSL (Canada) - 9 bulk carriers

• Staten Island Ferries (U.S.A) - 3 ferries

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Grand Princess has used seawater lubricated propeller shaft lines since 1998

Long Predictable Bearing Wear Life

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Carnival Corp. (U.S.A.) – 17 Cruise ships (108,000 to 115,000grt) equipped with seawater lubricated propeller shaft lines. Two more on order.

Recent Orders for Seawater Lubricated Propeller Shaft Bearings

• Matson Navigation (U.S.A.): 2 (3600TEU) container ships

• State of Alaska Ferries (U.S.A.) – 2 ferries

• MSC Cruises (Italy): 2 (154,000gt) Seaside • MSC Cruises (Italy): 2 (154,000gt) Seaside Class ships

• Regent Seven Seas (U.S.A.): 1 (56,000gt) ship

• Meriaura Group (Finland): 2 (4,700dwt) dry cargo vessels

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Lower Life Cycle Costs

Life Cycle Cost Analysis

Seawater Lubricated

COMPAC Propeller

Shaft Bearing System

Oil Lubricated White

Metal Propeller Shaft

Bearing System

Bearings and Related Shaft Line

Equipment € 257,106 € 173,496

Cost of Acquisition & Installation € 257,106 € 173,496

Cost of Ownership (25 Years) € 120,147 € 480,445

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� Newbuild Aframax tanker (640mm shaft diameter)

� 25 year vessel life

Cost of Ownership (25 Years) € 120,147 € 480,445

TOTAL € 377,253 € 653,941

Operational & Performance Benefits

• Zero Pollution Risk

� Eliminate oil from the stern tube

• Controlled Bearing Environment

� Water Quality Package� Water Quality Package

� Allows for SCM & MON-SHAFT Notation– No shaft withdrawal for 18 years with monitoring

• Technical equivalence

� Viable alternative to oil lubricated white metal propeller shaft bearings

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Operational & Performance Benefits

• Reduced Operating Costs• No Aft seal to maintain as there is no Aft seal

(water lubricated FWD seal only)

• Eliminate oil or oil-based EAL’s from the stern tubetube� no purchase of oil; no storage of oil

� no sampling of oil; no disposal of oil

� no labour required to top up header tanks

� no complaints about bad odour

• Maintenance of seawater lubricated propeller shaft bearing system is very low

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The Future

• Environmental compliance for a ship owner is a constantly moving line and it is not going backwards.

• A seawater lubricated propeller shaft bearing system is the only system that guarantees compliance and has ZERO impact on environment.

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Questions?

As of today, vessels equipped with Thordon COMPAC systems have

saved:

60,693,000 litres of potential stern tube oil pollution.tube oil pollution.

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