ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
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Cruise Industry News 2019 ZERO EMISSIONS TARGET REPORT Cruise Industry News Zero Emissions Report November 2018 Publishers Angela Reale Mathisen Oivind Mathisen Editor Oivind Mathisen Managing Editor Monty Mathisen monty@cruiseindustrynews.com Design MOVE Design Cruise Industry News 441 Lexington Avenue Suite 809 New York, NY 10017 Phone: 212-986-1025 Fax: 212-986-1033 Copyright 2018 Cruise Industry News www.cruiseindustrynews.com
ZERO EMISSIONS TARGET Table of Contents 4 6 9 2 5 8 Zero Emissions New Carnival ‘Paying Off’ IMO Taking Thinking Target LNG Ships 2020 Initiative Differently to Drive Fuel Efficiency 11 13 18 10 12 16 Energy Industry Is Big Picture Ongoing Class of 2018 Staying Agile Solutions Leading the Way Debate 22 25 27 20 24 26 The Hydrogen LNG vs. Preparing For Building Largest LNG Turbine Power Alternative Liquid Fuels LNG Bunkering Hybrid Vessel ORDERBOOK Cruise Industry News: 2019 Zero Emissions Report 1
ZERO EMISSIONS TARGET Cruise Industry News Zero Emissions Target Z ero emissions is the alternative fuels, including LNG. in port. Norwe- cruise industry’s New ships also have to comply with gian authorities long term ambition, IMO Tier III NOx restrictions in ECA have gone as far as both for water and air, and not only areas and Tier II everywhere else. to declare that their her- at sea, but also in port. Next comes the 2020 and 2025 Energy itage fjords, that are popu- It may have started with wastewater Efficiency Design Index requirements lar with cruise ships, shall be discharge regulations being introduced in that new ships must be 20 percent and emission free by 2025. Alaska and the Baltic some 20 years ago, 30 percent more energy efficient, respec- Longer term, the IMO has set followed by air emissions restrictions in tively, than a 2015 baseline. 2050 as the target date for a 50 percent ports on the West Coast, leading to the New ships are well on their way to reduction in CO2 emissions from a 2008 first installations of shorepower and test- meeting these targets already, resulting baseline and that will require more than ing of scrubbers. from more energy efficient powerplants, low sulfur fuel and scrubbers. Since 2015, so-called SOx Emission HVAC systems, lighting, galleys, hull Thus, the cruise industry is actively Control Areas established by the IMO forms and hull lubrication, and more, in engaged in developing technologies and have restricted the sulfur content in ma- addition to energy management plans fuels to reduce emissions both at sea rine fuels used to 0.1 percent, and by 2020 and more efficient operations. Advanced and in port. So far, the focus is on LNG IMO regulations puts a global sulfur cap wastewater treatment systems clean the as the “next” fuel, but work is also un- at 0.5 percent for marine fuels (outside of discharges into the sea. New develop- derway advancing fuel cell and energy ECAs), compared to a 3.5 percent lim- ments also promise to turn garbage into storage technologies and fuels such as it today, which has been in effect since energy that can be burned as fuel rather hydrogen, methanol and ammonia for 2012; it was 4.5 percent before that. than being incinerated and going up the ship applications, as well as solar and In order to comply, ships will have funnel. wind power. to operate on the low sulfur fuel or, if At the same time, port communities The path to zero emissions ships may running on heavy fuel oil, use exhaust are becoming more concerned about be long, but the technology insiders are gas cleaning equipment (scrubbers), or air emissions from cruise ships when confident the industry will get there. 2 Cruise Industry News: 2019 Zero Emissions Report
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ZERO EMISSIONS TARGET Cruise Industry News The new and innovative LNG-fueled AIDAnova under the lights at Meyer Werft in Papenburg, Germany. New Carnival LNG Ships to Drive Fuel Efficiency W ith 11 LNG-fueled ships on “AIDAnova is also significantly more ships powered order, Carnival Corporation efficient,” said Arnold Donald, CEO, on by LNG both for has the largest orderbook of the company’s third quarter earnings call. our Princess brand green ships in the cruise industry. “In fact, she is over 20% more unit to be delivered in 2023 Later this year, the company’s German cost efficient and over 35% more fuel and 2025, bringing the total brand, AIDA Cruises, will make history efficient than the AIDA fleet average, number of ships on order fully when the new 183,900-ton AIDAnova be- which bodes well for returns in the fu- powered by LNG to 11.” comes the first cruise ship in the world ture,” he said. Orders for LNG ships cover the to be powered by LNG while both at sea During the quarter, we completed AIDA, Princess, Costa, P&O and Car- and in port. contracts for two more next generation nival brands. 4 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET ‘Paying Off’ “T You will see continued growth in our market fueled by oday, about 30 percent of our fuel has had the sulfur increased capacity and the excitement surrounding removed before we buy it and given the success of our AEP (advanced such high profile ships. emission purification – scrubbers) systems, we believe that this 30 percent figure will not change materially even after the 2020 date,” said Richard Fain, chairman of Roy- “Of course, it’s required a massive in- to do to find ways to reduce our energy al Caribbean Cruises, on the company’s vestment in these AEP systems, but that consumption. We already have the lowest second quarter earnings call, commenting investment is paying off in both fuel costs levels in our industry and have partnered on the 2020 IMO regulations. and environmental benefits. with the World Wildlife Fund to improve it “ In fact, for various technical rea- “I shouldn’t leave this topic of fuel with- even further. While AEP systems and other sons, many observers believe that the out mentioning our energy conservation such measures are good, the best way to new regulations could actually reduce efforts because we are enormously proud of reduce our environmental footprint is to use our fuel costs once the regulations come the work our teams have done and continue less energy in the first place.” into force,” he continued. Cruise Industry News: 2019 Zero Emissions Report 5
ZERO EMISSIONS TARGET Cruise Industry News IMO S tarting on January 2020, the International Maritime Or- ganization’s (IMO) new rules for sulfur emissions will come into force worldwide. The limit for sulfur in fuel 2020 oil used onboard ships operating outside designated emission control areas will be reduced to 0.5%. THREE WAYS TO COMPLY: Scrubber installation ready for the Grand 1 Princess. Install a Scrubber – an exhaust gas cleaning sys- tem will reduce emissions from the smokestack, enabling ships to meet IMO 2020 regulations while still burning HFO. Scrubbers are said to cost about $1.5 million each. Installation takes place during drydocking, and on older ships, could cause stability concerns. MGO may be more expensive and in short supply come early 2020. 2 Burn MGO – marine gas oil is a low sulfur fuel al- ready widely used in emissions control areas. MGO costs more than HFO and prices are expected to rise significantly in 2020 as demand spikes. Of 20,000 ocean-going ships, only 3,000 to 4,000 are projected to have scrubbers by 2020, which will change fuel buying dynamics. The 5,200-guest AIDAnova LNG – a handful of cruise ships and con- tainer ships will be LNG-powered by 2020, with the clean burning gas meeting IMO requirements. Supply chain issues remain 3 the biggest challenge 6 Cruise Industry News: 2019 Zero Emissions Report
2018-2019 CRUISE INDUSTRY NEWS ANNUAL REPORT Bought by financial institutions and analysts, cruise lines, ports, shipyards, suppliers and other c-suite execs for future forecasting. This report is the only information resource of its kind - presenting the entire worldwide cruise industry in 400 pages. This report covers everything from new ships on order to growth scenarios from 1987 through 2027. Plus there is a future outlook through 2027, completely independent cruise industry statistics, growth projections for each cruise line, cruise industry market reports, and detailed ship deployment by region and market of all the cruise lines. This report is used by cruise lines, financial institutions and analysts, and suppliers alike for competitive research, budgeting and decision making. There is also a comprehensive directory of cruise lines and their key executives, as well as detailed information on port traffic and more with historical data exclusive to Cruise Industry News' 35 years in the business. If you are looking for a complete future, present and past global briefing on the cruise industry, LOOK NO FURTHER. Order: www.cruiseindustrynews.com/store ORDER FORM PRE-PAYMENT REQUIRED OR CALL IN YOUR ORDER: 212-986-1025 Fax this to 212-986-1033, e-mail it to info2@cruiseindustrynews.com, or send check to Cruise Industry News, 441 Lexington Avenue, Suite 809, New York, New York 10017. You can also Order online at CruiseIndustryNews.com. $995(U.S.); $1049 (International). Print Only. Name: Title: Company: Adress: City, State, Zip: Country: Phone: E-mail: Card Type: American Express | Visa | MasterCard Credit Card Number: Exp. data: Wire Transfers: email info2@cruiseindustrynews.com to arrange.
ZERO EMISSIONS TARGET Cruise Industry News Bellona “Combine this with coverage of overcrowding in some of the most pop- ular destinations, we decided to become more active and encourage the ports, the local communities and the infrastructure providers to get more actively engaged,” continued Strang. “Although we have a very good re- lationship with the ports, from time to time it is clear that our message is not getting out there.” Thus Carnival has forged a rela- tionship with Norway’s Bellona, an environmental group working inter- nationally. “We found that we share many of the same objectives, to pro- mote the use of clean technology, find sustainable ways to reduce emissions, and at the same time maintaining our ability to carry out our business in a clean fashion. “As such we have set some targets together, like zero emissions in port and in pristine areas, which seems to us a good way to kick start and accelerate discussions that are already going on in Norway.” Bellona’s Kalinka sailboat meeting Bellona may also be expected to play the Queen Mary 2 in Stavanger. a role on the public funding side, as most ports do not have the financial resources to pay for installations. Taking Initiative TV Coverage In a TV interview this summer, Stein Kruse, CEO and president of Holland America Line Group, told a Norwegian reporter that the company would be E willing to put money on the table for very summer Norwegian news Enova, a Norwegian government shorepower installations. outlets focus on air pollution from agency providing public funding for Also on Norwegian TV and respond- cruise ships, particularly in ports cold ironing installations, claims that ing to criticism, the port director for where an inversion layer creates a very funding shorepower for cruise ships Oslo, Ingvar Mathisen, said that the port visible ceiling of smoke. is too costly, considering the power was only responsible for 5 percent of Taking a lead industry role to tackle requirement and the limited seasonal the CO2 emissions generated in the the issue has been Carnival Corporation. use. It has instead thrown the challenge city, and that cruise ships in turn are “We have had discussions with a num- back to the cruise industry, with Eno- responsible for only 4 percent of the ber of ports about installing cold iron- va’s CEO stating that it is the cruise port’s emissions. ing equipment, but the recent effort by lines’ responsibility to clean up their While Oslo provides shorepower for Enova to fund shorepower in a number own business. Color Line’s cruise ferries, Strang com- of ports unfortunately does not cover So far Enova has funded installations mented that Carnival has not been suc- cruise ships,” commented Tom Strang, to the tune of nearly half a billion NOK cessful in its discussions with the port. senior vice president of maritime affairs and has issued an invitation for more A more typical TV report from an- for Carnival. applications. other port claimed that one ship can 8 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET Thinking generate the same emissions in a day as 13,000 diesel-powered cars. Slow Start Said Strang: “We have to have dis- cussions, we want to help the ports find ways of solving the issue, and we can share the experience we have from the Differently United States.” So far in Europe only Hamburg “In the longer term, hydrogen may and Kristiansand have shorepower for also be used as a fuel, if we can find cruise ships, while an installation in solutions to transport and store it aboard. Livorno has not been functional due There is research underway to combine to “automation issues,” according to hydrogen with liquids, transforming Strang. hydrogen to a liquid form for transpor- As for Kiel announcing plans to in- tation.” stall shorepower, he said: “That was Hydrogen would most likely be for a result of us telling them we wanted fuel cells, but may also have application shorepower and how can we make that in turbines, according to Ullrich. happen.” He added that some cruise lines are With more than 100 ships running testing small-scale applications of fuel on liquid fuels in the Carnival fleet, he cells to see if the technology is reliable said shorepower will be relevant for Andreas and can deliver what is expected. many years to come. Ullrich, “If somebody starts, it will be a big Thirty-nine ships in the Carnival global market push for the technology. This is what leader, passenger fleet are fitted for shorepower, accord- ships and ferries happened with LNG.” ing to Strang, while more ships have at Bureau Veritas Meanwhile, energy storage systems T the cabling in place. are curtailed by high costs and low capac- “We have led the way,” he added, here is no single “best” solution ity, according to Ullrich, who added that “but found it very difficult to get ports for the most energy efficient and if the price goes down and capacity goes to make commitments. Although today green ship going forward, ac- up, they could be an attractive solution. there is a lot more pressure from com- cording to Andreas Ullrich, global mar- New technologies are mostly being munities on local operators and ports ket leader, passenger ships and ferries considered for newbuilds, but older ships to clean up their act.” at Bureau Veritas. Instead, he defined can also be retrofitted to some extent, Each ship needs from 5 MW to 12 medium-term solutions being scrubbers, he said, including scrubbers and SCRs MW in port, depending on the size of catalysts (SCRs) and LNG, and longer to comply with emissions regulations. the vessel. Ship installations tend to term with batteries and fuel cells, possi- “I think the cruise industry is tak- run around $1 million, while the recent bly combined with LNG-fueled engines. ing huge steps forward to become both shoreside installation in Kristiansand “We also have to think differently,” greener and more efficient, but one has was budgeted at about NOK 40 million he said. “Today, powerplants consist of to understand that it takes time to devel- (about $5 million) through EU funding. main engines generating energy in one or op new technologies. We have ships on two spaces, but in the future there may be order now for 2027 deliveries. They are Other solutions more decentralized arrangements, maybe designed with existing technologies, but A second-best solution is to burn smaller energy storage units positioned I think owners would be willing to make LNG while in port; it has significantly around the ship, supplying different con- changes, if new technologies were to be- less emissions than fuel oils. sumers, supported by an excellent energy come available. They want their ships to Strang said Carnival is also looking at management system.” sail for at least 20 years and even more, battery and fuel cell technologies, while Ullrich continued: “LNG is current- and by 2050 IMO regulations call for making sure its ships reduce the hotel ly the best option to reduce emissions, a 50 percent drop in CO2 emissions.” load to a minimum in port, running one but it is a fossil fuel, and eventually we As for a zero emission ship, Ullrich said: instead of two engines, for example. need to change to synthetic fuels, or fuels “I am sure it will happen, but I am not sure He described the efforts as part of the produced from renewables. We can also when. Our over-riding goal must be zero pathway to success: meaning eventually create energy from wind and solar power. emissions for both air and water.” zero emissions. Cruise Industry News: 2019 Zero Emissions Report 9
ZERO EMISSIONS TARGET Cruise Industry News The Viking Sun is powered by MAN engines. MAN has reported a record orderbook for cruise ship engine orders, including the new Ritz-Carlton vessels. fuel tanks become relatively larger the Energy Solutions smaller the vessel becomes. “For that reason, we have had projects that started with LNG but changed to liquid fuel.” Solutions C hanging its name to MAN Energy 51/60 and the 35/44 dual fuel engines for In terms of future powerplant solu- Solutions earlier this year means large and smaller vessels, respectively. tions, Tolgos said cruise lines have that MAN is now strategically “Considering the typical operating different options, including traditional focused on comprehensive powerplant profile of cruise vessels, the application diesel engines running on HFO and using solutions, including exhaust gas treatment of our ECOMAP technology on CR en- scrubbers and catalysts (SCRs) to meet systems, technology for LNG-fueled ap- gines can reduce fuel consumption by an environmental regulations; MGO and plications, and hybrid solutions with en- additional 1 to 2 percent,” Tolgos noted. catalysts; or LNG. However, LNG-fu- ergy conversion and storage systems, and “The 45/60 CR engines are more so- eled ships might still need catalysts as related automation systems, according to phisticated so the capital expense is high- they also carry MGO as back-up fuel, Sokrates Tolgos, head of cruise sales and er, but the payback comes from reduced although the system will not be active tendering, MAN. fuel consumption.” when running on LNG. “We are going from being a pure en- He explained how common rail and In addition, he said that oil companies gine and turbo machinery company to a ECOMAP can be used to adapt each have promised to supply new fuel types systems supplier,” Tolgos said. engine’s performance characteristics, within the 0.5 percent sulfur cap required “We have taken the first steps already optimizing the fuel economy of the globally by 2020, but the question is how with our acquisition of the marine fuel powerplant. much the new fuel will cost. Tolgos’ ex- gas storage and supply systems of former Common rail and ECOMAP are fea- pectation is that a new blended fuel will Cryo of Sweden, and we have entered into tures for liquid fuel engines, while a gas be more like a diesel-fuel than a residual a partnership with Canada’s AKA, which injection system will be used for dual fuel, hence refinery economics will drive is an electric solutions provider.” fuel engines. the cost up to be closer to distillate than residual fuel. Engine Series LNG vs. Liquid Fuels Compatibility of these new fuel types Tolgos said that today MAN is de- Big newbuilds are looking in the LNG with existing engines is another factor livering the whole technology range of direction, Tolgos said, but a large per- that must be considered to safeguard powerplants and systems from heavy fuel centage of smaller ships are still looking reliable operation of the plant. oil to LNG. toward liquid fuel. Meanwhile, he added, many experts are System offerings include the 48 engine He explained: “The feasibility of using expecting to see HFO prices drop signifi- series with common rail (CR) injection LNG as a fuel has much to do with the cantly against diesel/distillate type fuels technology for big cruise ships operating size of the vessel. in 2020 when the sulfur cap is introduced. on oil-based fuels, as well as the 45/60 “When you go from big to small, the Tolgos said that he definitely expects CR, which was announced last year, and power demand does not decrease at the cruise ships to meet Phase 3 of the EEDI the 32/44 CR series for smaller ships. same rate, and the autonomy range does (Energy Efficiency Index) in 2025. “We For LNG-fueled ships MAN offers the not decrease. That means that the LNG have more efficient engines, which in 10 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET Industry Is Leading the Way “T he global shipping fleet can look at the cruise industry to lead the way for more en- ergy efficient ships” said Ginger Garte, environmental and sustainability director, Americas Marine & Offshore, Lloyd’s The 45/60 CR engines Register. are more sophisticated “The cruise lines are not waiting for regulations, but moving ahead, imple- so the capital expense menting fuel saving technologies and is higher, but the testing new technologies that are prom- payback comes ising efficiencies. Although they can be Monitoring performance ship-wide from small, they all add up.” the advanced engine control room aboard from reduced fuel Garte continued: “The cruise industry the Carnival Vista, which carries LR’s ECO Notation. consumption. recognized more than a decade ago that climate change would be the biggest issue Even casual dining venues contribute by facing maritime industries. And they are eliminating table cloths, that in turn saves combination with other factors, such as tackling it in a multitude of ways, from on water for washing. In addition, the latest more efficient hull design, reduced ener- advancing exhaust gas cleaning systems generation of washing machines use 65 per- gy consumption by various consumers, to looking at alternative fuels that are cent less water, according to Garte, who also like HVAC and lighting, will help cruise effective in meeting sulfur requirements. noted better energy management of galleys, ships comply.” “The biggest cruise companies are more efficient ice makers and dish washers. investing in both scrubbers and LNG. Also critical is how the ships are operated, Lifecycle Cost Although LNG may be a temporary significant fuel savings and reduced emis- “The number of installed engines and measure, restricted by lack of bunkering sions can be gained by just-in-time arrivals, cylinders are not only related to the ves- capabilities around the world, and not trim optimization, weather routing and more. sel size and speed, but also to hotel load reaching the level needed to decarbonize. “All energy efficiency programs are requirements and efficient engine loads, “By 2030, the industry will need a looked at and improved for every new- redundancy and safe return to port,” Tol- heavier lift, like methanol as a fuel, fuel build,” Garte said. gos said. “For ships below 50,000 tons, it cells or other solutions that are not cur- The latest generation of newbuilds are up would be difficult to find space for more rently available.” to 20 percent more efficient than the previ- than four main engines, but larger ships Looking at how the cruise industry has ous generation and thus the cruise lines are tend to have from four to six engines. been performing historically, Garte said well on their way to meet the 2025 Phase 3 Looking at it from a lifecycle cost per- it has been very competitive in terms of requirement of the Energy Efficiency Index spective, I would say that five to six main energy efficiency. stipulating that new ships must be 30 percent engines are the best solution.” Efforts include redesigning vessels for more efficient compared to a 2015 baseline. While offering liquid fuel engines, better hull hydrodynamics including air And in order to reach the IMO target LNG derivatives, and also researching lubrication, welds around sea chests and of 50 percent reduction of CO2 by 2050, energy storage systems, Tolgos said the coatings, as well as better aerodynamics Garte said the first zero emission will have next evolution may be fuel cells, especial- for the superstructure. to enter service around 2030. ly if LNG can be used in fuel cells. This “By reducing the friction between the Meanwhile, Carnival Corporation stated would also offer a completely new per- hull and the water, we have verified that in its 2017 sustainability report that it has spective on how to utilize space in future air lubrication can reduce fuel consump- achieved a 26.3 percent reduction in CO2 ship designs as fuel cells, in principle, tion by up to 5 percent,” she said, “and emissions, three years ahead of its 2020 enable the design of decentralized on- consequently air emissions.” deadline. board generation of energy and power. Cruise Industry News: 2019 Zero Emissions Report 11
ZERO EMISSIONS TARGET Cruise Industry News The Harmony of the Seas Big Picture I ncreasing energy efficiencies and Furthermore, Marttinen said that Wärt- a 50 percent reduction in greenhouse gas- reducing emissions require a com- silä, has been running tests with metha- es by 2050 and eventually going to zero. bination of an optimized powerplant nol, while also doing development work “Meanwhile, LNG is a perfect bridge. and other energy consumers aboard, in with batteries and fuel cells. It is available in multiple locations, and in addition to ship operations, including “The combustion engine itself has the Caribbean, for example, if you look at navigation and itinerary planning, ac- seen huge improvements over the past island energy needs, LNG can also play cording to Vesa Marttinen, director of 100 years,” he added, “and continues to a key role in generating energy ashore.” cruise, ferry and superyachts at Wärtsilä, improve step by step. The question now Hybrid solutions are also entering the a major powerplant and systems supplier becomes how much effort it will take to picture, according to Marttinen, with to the cruise industry. achieve the next steps, and if the end-user powerplant configurations that include He underscored that many variables is willing to pay the price, or if we can batteries or fuel cells. He noted that test- play important roles, starting with the achieve similar gains doing something ing of fuel cells on ships already started propulsion and hotel consumers. else with lower capital costs. In the end, more than 10 years ago. To help minimize fuel consumption the customer must justify the business “Technology, however, is only an en- and consequently emissions, he added case. abler for operations,” he explained. “You that fuel consumption, energy usage and “Yet, it is our role as a technology need to look at both the machinery and other operating data must be shared be- company to continue to push forward.” operations to get the total picture.” tween the vessel, the shoreside marine department and the engine and equipment Powerplants Zero Emissions? suppliers. What is the ideal powerplant today? Will there be a zero emissions ship in “Let me answer this way,” Marttinen said. the future? ”One day,” answered Martti- Fuel Options “From what we have seen in the past, the nen, “and it will be the result of multiple Another aspect is the fuel; and power steam engine was introduced 200 years developments.” generation can use HFO in combination ago, but it took 80 years before steam Meanwhile, new versions of older with scrubbers to meet emission require- surpassed sails, so we can also assume it technologies are also being tried, such ments, or MGO, or LNG. In addition, oil will take some time before LNG surpass- as rotor sails, which he said are 100 years companies are developing low-sulfur HFO es current fuels. Also forcing change and old, but are now being optimized with to meet future emission requirements. development is that the IMO is requiring new materials and computers. He said 12 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET Wartsila on Ongoing display, powering the 227,625-ton Harmony of the Seas. Debate JENS ERIK WEGNER he can also envision using wind turbines to generate power while in port. “The key is to use technology to improve the assets and the Connecting to operations, and while this usually involves the next generation shorepower in Hamburg. of vessels, much can also be done with existing ships. N “Every time we reduce energy consumption we reduce greenhouse gases. orway’s Kristiansand is the second European port “The trend has been that ferries are usually first to implement to offer shorepower to cruise ships after its 16 MW new technologies and then cruise ships.” installation came on line in September, thanks to an Marttinen also expects to see more actors getting involved EU grant. in terms of port operations and vessel traffic control. The only other European port offering shorepower is Ham- “You can say that sustainable operations start with the equip- burg, at its Altona Terminal, while Livorno expects to be op- ment on the ship, then you have the operation of the ship, the erational by the end of the year. operation of the fleet, and also the operation of ports. Future A spokesperson for the Port of Hamburg said that prepara- ports may also have their own powerplants, using different tions were underway for a feasibility study to install shorepower sources of energy, and selling electricity to the ships. at all the cruise terminals. She also said that the port was in “There are many different avenues moving forward.” discussions with MSC and other cruise lines for shorepower and LNG bunkering. Development In addition, Kiel has announced that it is planning a shore- “We have been sort of vegetating in the marine leisure mar- power installation at its Ostseekai terminal for cruise ships. ket,” Marttinen continued. “We have these assets that go 20 Meanwhile, AIDA Cruises also has a hybrid solution, with knots, but is that needed? What if we could have zero emissions the AIDAperla and AIDAprima running on LNG supplied and go at 10 knots from port to port? Does a ship have to call by truck while in port in Hamburg, Rotterdam, Le Havre, at a port every day? What about every other day? The cruise Southampton and Zeebrugge, as well as in Barcelona for the lines would also generate more onboard revenue. In addition, AIDAprima, and in Madeira during the winter. According to if passengers are sourced in homeports and nearby areas with AIDA, Marseille, Civitavecchia and Kiel are also preparing no flights, the operation would be even more sustainable. to supply LNG for the dual fuel ships, while the line is in the “Developing assets and operations is what it is all about, discussion stage with Palma de Mallorca. and this is where we can give a helping hand.” Cruise Industry News: 2019 Zero Emissions Report 13
ZERO EMISSIONS TARGET Cruise Industry News Exclusive Club The only other operating shorepower in- SERGIO FERREIRA stallations for cruise ships are in the United States and Canada – on the West Coast in Juneau, Long Beach, Los Angeles, San Di- ego, San Francisco, Seattle and Vancouver and on the East Coast in Montreal, Halifax and New York’s Brooklyn terminal. Additional shorepower facilities in North America and Europe are dedicated to ferries, container ships, tugboats, fishing vessels and offshore vessels and rigs. Longer term, Peter Castberg Knudsen of PowerCon, the Danish company that has installed the facility in Kristiansand, said he envisions shorepower to supply hotel con- LNG being sumption aboard when cruise ships are in supplied by truck port throughout Europe and also for charging in Madeira. applications for battery installations. Also on a broad European scale, so- According to MedCruise, Livorno and ects are reported to be underway at Wusong called Trans-European Transportation Varna have shorepower installations for in Shanghai and Qingdao in Shangdong, Network core ports will need to provide cruise ships, and Marseille for ferries. according to Cavotec, a supplier of shore- alternative infrastructure such as shore- Giovanni Spadoni, technical and com- power cable management systems. power before the end of 2025, according mercial director for the Port of Livorno, Down Under, the Ports of Auckland to EU regulations, Castberg Knudsen said, said that its installation has been tested announced last year that they would unless there is no demand and the costs on a naval vessel, and the port is in the pursue plans for shorepower. However, are disproportionate to the benefits. process of verifying whether Holland CLIA Australia countered that a key strat- He added that cruise ports in Europe have America Line ships can plug in. He said egy of the cruise lines is the adoption of so far been reluctant to install shorepower he expects the plant to be fully opera- exhaust gas cleaning technology, which due to the high investment cost combined tional by the end of the year. in combination with cleaner fuels, will with relatively low usage in addition to many In China, Shenzhen has a shorepower in- mean that the usefulness of shorepower ships not having the equipment to connect. stallation for cruise ships, while other proj- will decline over time. 14 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET In Vancouver, the federal and provin- late September deadline, while also an- cial governments funded two-thirds of the nouncing plans for yet another invita- installation, while Holland America Line, tion in January 2019 with a March 2019 Princess Cruises and the port authority deadline. funded the other third. So far, the agency has awarded half A spokesperson said that the original a billion NOK in grants for shorepower $9 million investment made in 2009 will installations. be fully amortized by the end of the year (2018). Pollution Issues In Montreal and Halifax a combination Paulsen said that the issue with cruise of funding from the federal and provincial ships is local pollution when ships are in governments, as well as the port author- port, and that today there is an acute need ities, paid for the installations. to improve the air quality. LNG will help The project costs were estimated at $10 by reducing emissions and so will new Two of eight containers million and $11 million, respectively. ships that have to comply with the latest housing the shorepower IMO requirements, compared to older system, including frequency converters, transformers Cost Effective? ships that may be exempted. and switchgears for Other cruise ports in Norway have ap- Where clean (hydroelectric) power is Kristiansand. plied for grants from Enova, a Norwegian not available, Castberg Knudsen’s ideas government agency working to improve include using wind turbines to compete energy efficiencies and reduce emissions, with fossil fuels in terms of producing but have been turned down, because the electricity at the lowest cost that can even Funding agency considers cruise ship usage to be make a shore system profitable, he said, Kristiansand has been able to install seasonal and not cost effective. without external funding. shorepower thanks to a 4 million euro This is partially because of the rela- Paulsen added that even with coal- grant from the EU. tively low investment for supplying 1 to fired powerplants, it makes sense to move Hamburg’s installation was financed 2 MW of power compared to a system the emissions away from the populated partially by the EU and the City of Ham- for a cruise ship at 16 MW. port area, and that it is easier to clean the burg. The Kristiansand installation is 16 MW, emissions from one powerplant rather In North America, Los Angeles paid 6.6 – 11 kV, 50-60 Hz. It was originally in- than several ships. for its own installation. A spokesperson tended for Copenhagen, but for unknown said that the port is recovering the invest- reasons, that city pulled out of the project. Public Reaction ment through a passenger head tax and Ferries, coastal vessel traffic, fishing Meanwhile, some cruise ports are fac- that the cruise lines pay for the electricity vessels and oil rigs in port for mainte- ing negative public reaction on heavy they use. nance have been favored, said Jan Kjetil traffic days due to the visible exhaust that For San Diego, a spokesperson said Paulsen, senior adviser on shipping at the can literally “cover” a town or a fjord. the system was paid for by a combina- Bellona Foundation, an environmental In Norway, one local politician even tion of grant funding and money from organization based in Norway. exposed himself to passengers as a form the port’s capital improvement program. Hurtigruten commented that it needs to of protest. Carnival Corporation funded the in- stay in port for more than 45 minutes for The Norwegian government has re- stallation cost in Seattle. a shore connection to make sense, which cently announced that it will make its San Francisco, which completed its would eliminate many of its ports of call. World Heritage fjords zero emissions installation in 2010, was able to take It also noted that Bergen is the only port zones by 2026, including Geiranger, a advantage of state grants that were no where it can presently use shorepower. popular cruise destination. longer available once California made Not all of its ships can plug in yet, how- That may mean that these fjords will shorepower mandatory in 2014. ever, with shipboard installations to be be off limits to large cruise ships unless For the Brooklyn Cruise Terminal, completed by 2021 or earlier, according they can come up with new power solu- a spokesperson for the New York City to a spokesperson. tions very quickly, according to Bellona’s Economic Development Corporation said Enova recently awarded NOK 51 Paulsen. the $15 million spend on the onshore in- million in grants to 11 Norwegian ports, He added that it is in the interest frastructure was funded with about $12 financing up to 75 percent of the instal- of the industry and the ports to reduce million from the port authority and nearly lation cost of shorepower. emissions. What tourist would pay to $3 million from the Environmental Pro- The agency has since issued another visit destinations covered by clouds of tection Agency. invitation for grant applications with a exhaust, he asked. Cruise Industry News: 2019 Zero Emissions Report 15
ZERO EMISSIONS TARGET Cruise Industry News Cruise Line: CARNIVAL Ship: HORIZON Tonnage: 135,000 Capacity: 4,000 Yard: FINCANTIERI Cruise Line: ROYAL CARIBBEAN Ship: SYMPHONY Tonnage: 227,625 Capacity: 5,400 Yard: CHANTIERS Cruise Line: NORWEGIAN Ship: BLISS Tonnage: 164,600 Capacity: 5,200 Yard: MEYER Class of 2018 Cruise Line: SEABOURN Ship: OVATION Tonnage: 40,350 Capacity: 604 Yard: FINCANTIERI Cruise Line: MSC CRUISES Ship: SEAVIEW Tonnage: 154,000 Capacity: 4,140 Yard: FINCANTIERI Cruise Line: TUI Ship: MEIN SCHIFF 1 Tonnage: 110,000 Capacity: 2,900 Yard: MEYER TURKU 16 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET Cruise Line: PONANT Ship: LE LAPEROUSE Tonnage: 10,000 Capacity: 180 Yard: VARD Cruise Line: VIKING OCEAN Ship: VIKING ORION Tonnage: 47,000 Capacity: 930 Yard: FINCANTIERI Cruise Line: PONANT Ship: LE CHAMPLAIN Tonnage: 10,000 Capacity: 180 Yard: VARD Cruise Line: CELEBRITY Ship: EDGE Tonnage: 129,500 Capacity: 2,900 Yard: CHANTIERS Cruise Line: HOLLAND AMERICA Ship: NIEUW STATENDAM Tonnage: 99,000 Capacity: 2,660 Yard: FINCANTIERI Cruise Line: MYSTIC Ship: WORLD EXPLORER Tonnage: 9,300 Capacity: 200 Yard: WEST SEA Cruise Line: AIDA Ship: AIDANOVA Tonnage: 183,900 Capacity: 5,200 Yard: MEYER Cruise Industry News: 2019 Zero Emissions Report 17
ZERO EMISSIONS TARGET Cruise Industry News Another Mein built, the yard will have capacity to con- Schiff under construction struct 190,000 tons every eight months, in Finland with 17,000 employees pitching in. The obvious hitch to hiring all these people is not only do they need to be skilled, they also need to speak the yard’s operating language, Finnish – one of the world’s less common tongues. To meet these goals the yard has undertaken a massing staffing outreach, retraining internal workers displaced by robotics, as well as attracting new talent. The yard has an agreement with the government to re-educate the unem- ployed to be welders. After a six-month training course, there is a standing job offer from the yard. Staying Agile The school also has transfer-of-skills trainings where architects and engineers from the residential home construction sec- tor can be retrained to design and build ships. The training extends to suppliers and and find ways to improve things. We can- subcontractors wanting to train their people. not sit still, because our competitors – our The staffing uptick is part of the yard’s state-owned competitors in France, Italy 200 million euro investment in infrastruc- and China – are certainly not sitting still.” ture improvements, new technologies, The Meyer pledge – to improve the and an expanded design team that will family business for the next generation reduce reliance on outside contractors. to inherit – requires long-term planning: That said, Meyer praised his supplier and Grow when the climate is right and be contractor network. ready for harsher conditions. A new 120-meter crane went online this Reliability summer. The monstrous blue staple-shaped About 800 subcontractor companies B Jan Meyer, tower on wheels can lift 1,200 tons – twice work on each ship, so many that the city of CEO lue and orange cov- that of the yard’s previous crane. Turku is considering zoning an industrial eralls and bright park outside the shipyard for them. If it’s yellow hardhats Ramp Up built, Meyer would see his subcontractors strolled across Meyer Turku’s The plan for Meyer Turku is aggres- each day when bicycling in to work from vast campus one recent afternoon. sive and somewhat audacious. When the city center. An abnormal string of sunny days had Meyer Werft took control in 2014, the “We are a big economic factor,” he said all of Finland in a jolly mood. With TUI yard could complete a single 100,000- of the relationship with the city. Cruises’ new 111,500-ton Mein Schiff ton ship every year, with about 5,000 The Meyer family, who started their 2 about to touch water for the first time employees working. In 2016 and 2017 shipbuilding dynasty in 1795, found and Costa’s Smeralda laying in semi-con- that increased to 7,000 employees able something of a kindred spirit in the Finn- structed sections nearby, Meyer Turku to build 150,000 tons a year. ish yard. Founded in 1737 as Fithie/Åbo CEO Jan Meyer had to be smiling too. Currently, the 2018 and 2019 capacity Gamla Skeppswarf, the Turku shipyard While an orderbook stretching into projects 9,000 employees able to com- consolidated, merged, or changed own- 2024 is good news, the seventh-genera- plete 180,000 tons a year. Moving for- ership at least 25 times before Meyer tion shipbuilder sees it as a call to action, ward, Meyer Turku wants to add 6,000 Werft’s purchase. The roots are deep and not a time to get comfortable. more employees by 2021, so 15,000 wide, encompassing a broad network and “We have good times now and some workers could build a 190,000-ton ship impressive longevity. stability, but we really need to use these every 10 months. “When we came to Turku we found good times to prepare for the future,” The ultimate goal is that by 2022, a very unique way of working together Meyer said. “We have to look at ourselves when Royal Caribbean’s first Icon ship is as a cluster has been developed,” Mey- 18 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET ing and building a ship is all about find- ing the best compromise for contradictory requirements,” Meyer said. “Cruise-ship building is a lot about collaboration. So we have cooperation with our customer’s architects. The customer has a concept for a restaurant. What they want to serve there. How they want to utilize the space. And of course they don’t want to see any The pillars whatsoever. For us, pillars are very 110,000- good for the steel structure, but not very ton Mein good for internal visibility. So we need to Schiff 2 under find a good compromise between these construction in Turku, slated for a contradictory aims.” spring 2019 delivery He gave the example of Mein Schiff’s 50-meter wide diamond-shaped window structure. The glass wall at the aft of the The LNG- ship needed to be stable but without cum- powered Costa bersome, view-blocking support pieces. Smeralda will be delivered Furthermore, the ship will twist ever so from the yard slightly because of propulsion and waves. next autumn. “Even if there was a shift of just a few mil- limeters the stress on the windows would be enormous.” Meyer’s design team had to perform an We have to look at ourselves and find ways to improve engineering feat. Through rigorous com- puter modeling and testing they were able things. We cannot sit still because our competitors – our to predict vibrations. They were able to state-owned competitors in France, Italy, and China – are remove most of the pillars, allow for stress certainly not sitting still. reduction on the windows, and at the same time keep the room quiet and scenic. “The ability to predict it allows us to er recalled. “Sometimes I get questions, tainability, visually pleasing spaces, etc. tell the architect, ‘Okay, we can remove like, why did you choose Finland to help a While these things are important, so too is that pillar.’ And so it’s visually appealing shipyard, why did you not choose Norway reliability. If, late in the process of building and still serves as a quiet space. And, of or Denmark or Sweden or somewhere. a ship, there is uncertainty that a design course, we need to do it together with a Actually, that’s not the point. The point is or concept will work, the customer has turn-key outfitter that’s working in the here we have a heritage of 200 years we every right to be disappointed. “This kind aft part of the ship and is actually build- can build on. We cannot sleep on it but of thing is unacceptable,” Meyer said. ing it. And then it all needs to fit on the we can build on it. And that’s important. “What’s often overlooked is the aspect timeline,” Meyer said. Building the same That’s the kind of starting advantage that of reliability. That is something we should class of ship several times gives Meyer’s is unique to us and not our competitors. maybe focus more on in cruise-ship build- team a chance to experiment and perfect We can use it. And also, we are permitted ing. That is a real value,” Meyer said. “This designs. “It allows us to try out our com- to improve this collaboration and really reliability, aside from our ability to offer a puter models. The computer helps a lot, bring this supplier collaboration to the next competitive package, innovation and a rea- but does it reflect reality? That’s the im- level. We also need to try as best we can sonable price, is an important factor in why portant question.” to get long-term visibility. We want to get we have an orderbook going into 2024.” Revamping the shipyard by ramping up the orders ready so they can plan from the staffing and tonnage building capabilities, supplier side. Also, with this sort of long- Meyer said it’s difficult to discuss all while remaining innovative and price term visibility we can develop processes innovations because his cruise line cus- competitive – all in a five-year window – and build teams.” tomers almost always want to be the first is similar to how Meyer described Mein The cruise industry is always excited to reveal what’s new. It’s easier to discuss Schiff’s giant glass diamond windows. about innovation: efficiency, maneuver- the process. “It looks simple. That’s how it should be. ability, amenities, environmental sus- “It’s about finding solutions. Design- But it’s actually difficult to implement.” Cruise Industry News: 2019 Zero Emissions Report 19
ZERO EMISSIONS TARGET Cruise Industry News The Hydrogen Alternative I Future ships may be n order to reach IMO’s 2050 Hyon is a joint venture between Nel goal of 50 percent CO2 re- Hydrogen, Hexagon Composites and duction in emissions from larger because they Powercell of Sweden, thus offering a shipping, Tomas Tronstad, managing di- will need bigger tanks one-stop hydrogen and fuel cell solution, rector at Hyon, said he sees two solutions: to accommodate targeting marine industries, including Batteries for ferries and short-sea oper- cruise lines. ators; fuel cells and hydrogen for larger new fuels, such as powerplant installations, like cruise ships. hydrogen, methanol Green Potential “I expect the shipping fleet to look and perhaps ammonia, There are generally two ways to pro- very different in 2050,” he said, “and duce hydrogen today, Tronstad explained, I don’t expect to see the ships that are NH3, which has no with water (HO2) or natural gas (CH4) sailing today. carbon content. being the raw materials. “Future ships may be larger because While using natural gas will mean they will need bigger tanks to accom- CO2 emissions from the production; us- modate new fuels, such as hydrogen, a way of stimulating the development ing power from renewable sources to split methanol and perhaps ammonia, NH3, of the hydrogen industry in the country. water in an electrolysis process means no which has no carbon content.” Hydrogen-run fuel cells are common CO2 and the resulting hydrogen can be on buses and trucks, he said, with the considered renewable. Ferries First hydrogen stored in pressurized tanks. “NEL, only participates in projects Based in Norway, Tronstad said there Since hydrogen is very light, the tanks based on renewable energy sources,” are many hydrogen-fueled ferry projects are pressurized at 700 bar containing 5 Tronstad added. as the Norwegian authorities have begun kilos of gas giving an average car a range He said hydrogen can be considered a to stipulate zero emission vessels in cer- of some 500 km. He said the tank size “difficult” gas, as it is very light and has tain areas, and are requiring hydrogen as was comparable to a standard gas tank. very small molecules, but taking that into 20 Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News ZERO EMISSIONS TARGET Fuel cells should not be a showstopper for large hydrogen cruise vessels. When you pay for power, you are also paying for the grid, for the infrastructure. We will produce hydrogen using renewable energy, but not from the grid. We will produce the hydrogen where the power is being generated, and then transport the hydrogen to where it will be used. This will reduce costs significantly. account, it is not difficult to design safe PEM Fuel Cells Explained Tronstad: “When systems. He said that hydrogen is very Tronstad explained that PEM fuel cells you pay for power, you are also predictable gas and does not pose any are the standard already used in motor paying for the grid, for the infrastruc- greater risks than gasoline or diesel fuel. vehicles. He described them as very dy- ture. We will produce hydrogen using Thus, Hyon has received approv- namic, operating effectively at different renewable energy, but not from the grid. al-in-principle from DNV-GL for its mod- loads. We will produce the hydrogen where the ule-based fuel cell solutions, adapted for “At PowerCell/Hyon we have devel- power is being generated, and then trans- maritime use. The approval builds on the oped the world’s lightest and most com- port the hydrogen to where it will be used. MS-100 hydrogen PEM (Proton Exchange pact marine fuel cell solutions,” he said. This will reduce costs significantly.” Membrane) fuel cell system from Power- “So the fuel cells should not be a show- Meanwhile, in the United States Nikola Cell for general application in ships. stopper for large hydrogen cruise vessels.” Motor Company is rolling out infrastruc- The approval covers smaller mod- What needs to be done next is to pro- ture for hydrogen production and filling ules of just a few hundred kilowatts to vide bunkering opportunities and to bring stations (from Nel) for trucks. Maritime multi-megawatt units. down costs. bunkering stations may be next. Cruise Industry News: 2019 Zero Emissions Report 21
ZERO EMISSIONS TARGET Cruise Industry News The AIDAnova will be powered by dual-fuel powerplants from Caterpillar Mak. LNG vs. Liquid Fuels “Every cruise operator is hyper-fo- cused on every aspect of the environ- mental impact of their operation from I bilge water to wastewater, air emissions.” deal powerplant solu- Every cruise operator tions depend on op- Data Analytics erational profiles and is hyper-focused on Caterpillar Mak is also focused on the areas of operation, according to every aspect of the digital realm, according to Shock. “Our John Shock, responsible for the cruise environmental impact of data analytics system captures data that and ferry market for Caterpillar Mak. allows the shipowner to operate the en- “LNG is a very good solution,” he their operation from bilge gines more efficiently, minimizing fuel continued, “and we are seeing both the water to wastewater, air consumption, making sure that energy is cruise and ferry markets moving faster to emissions. being produced efficiently as well, and LNG than other shipping segments. The schedule optimized, condition-based progress has been huge, but gas is still maintenance. not universally available, it carries higher ther gains would most likely be small and “We also have an advisory power man- capital costs and has some different per- incremental, and that more efficiencies agement system, which is a multi-engine formance characteristics that shipowners would come from systems and operating optimizer, managing different loading on nevertheless are able to offset against bet- procedures. several engines at the same time. ter environmental performance.” “The diesel engine can be more effi- “It (environmental regulations and When the first LNG-fueled cruise cient,” he said, “but we are restrained by technology development) is not going to ship, the AIDAnova, enters service later emissions. Most of the modifications we stop,” Shock said. “By 2050, the IMO is this fall, she will have Caterpillar Mak do to the engines to reduce emissions, requiring a 50 percent reduction in green- engines and related systems, as will a make them less efficient. house emissions.” sister ship slated for 2021 delivery, in “We have been able to run our high- As to whether a powerplant can become addition to two LNG-fueled ships for speed engines more efficiently at a higher totally carbon neutral, he said: “As long Costa Crociere. emission level because the SCRs are so as we operate on carbon-based fuels, I do effective that we meet the IMO III re- not see how we can become carbon neu- Proven Engines quirement at the stack. The engine is 2 to tral. Today, LNG and methanol start out “The most proven powerplants re- 3 percent more efficient and by increasing as natural gas, and if you are consuming mains the diesel engine running on MGO the efficiency we are offsetting the cost energy to create fuels, even though the or with catalysts (SCRs) with HFO, of the urea (in the SCR system).” emission properties may be substantially Shock continued. As for scrubbers, Shock described the better, you cannot get to zero emissions. When Holland America Line’s Nieuw technology as transitional. “Scrubbers are “It may eventually take new alter- Statendam enters service in November, improving and maturing,” he said, “but native fuels, energy storage or energy she will feature a diesel electric Cater- many operators I talk to are not yet sold conversion systems and different tech- pillar Mak powerplant. that they are reliable, cost effective and nologies like fuel cells. To get to zero Shock said today’s generation of diesel long-term viable. One issue is how to deal emissions, we are going to have to go engines are very efficient and that fur- with the waste of closed-loop systems. the way of renewables.” 22 Cruise Industry News: 2019 Zero Emissions Report
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