Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow

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Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Sustainable shipping
Innovation day and Baltic Business Meeting Point, Karlskrona
                                             May 4th, 2018
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Our story started in 1939

…when a young Sten A. Olsson left    A few years later he bought his   In 1962 ferry services began between
    the island of Donsö, to start    first ship – and named it after   Gothenburg and Skagen in Denmark.
trading scrap metal in Gothenburg.             his son, Dan.

    Stena AB and Stena Metall            In the 1980s Stena AB             Today, almost half of Stena’s
     AB were separated 1972.           expanded into areas such              business is land based.
                                       as offshore and property.
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Stena Line route network

                           Stena Line
                           Stena Line (Slot charter)
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Stena Line at a glance

 5,500              21           38             300
EMPLOYEES       FERRY ROUTES    VESSELS     ENERGY SAVING
                                          PROJECTS INITIATED
                                               (since 2005)

    1,3              2           1,5          7
BILLION EURO       MILLION      MILLION     MILLION
IN TURNOVER     FREIGHT UNITS    CARS     PASSENGERS
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Shipping facilitates trade and prosperity

                                                                    180
                                                                     %
        135
         %

Increase in world GDP in                              Increase in world seaborne
  the last two decades                                trade over the same period

                     abt. 90% of world trade travels by sea
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Global shipping - opportunitites

• Backbone of global trade
• Contributes to better living
  standards
• Unlimited capacity on the oceans
• Low cost infrastructure
• Energy efficient
• Safe
• Punctual
• Releave road congestion
• Tourism and travel
• Employ abt 1.5 mill seafarers
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
50,000 merchant ships
but many differences in age, cost, trade and size
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Deep sea commodity shipping
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Short sea liner shipping
Sustainable shipping Innovation day and Baltic Business Meeting Point, Karlskrona May 4th, 2018 - Webflow
Global shipping – risks and challenges

Industry challenge              Mitigations
• Emissions to air              • Global rules and regulations
• Major Accident                • Law enforcement
• Pollution/spills              • Transparency
• Sabotage                      • Awareness in business decision
• Piracy                        • Readiness and training
• Transparency                  • Systems and procedures
• Dedicated employees           • Safety and environment polices
• Equality                      • Dialogue with customers, NGO
• Ship recycling                  and society
• Partners/Subcontractors CSR   • Goodwill and Strong brand
• Corruption and other crimes   • Commitment
The single biggest challenge of today

Muscles    Wind     Coal      Oil
Maintaining shipping as the ‘greenest’ mode of transport

                                 10000

                                                                Aviation
                                       1000
               EEOI in gCO2 per t.km

                                       100
                                                       Road
                                                                                                     Shipping
                                                                        Rail

                                        10

                                         1
                                              1   10          100            1000            10000    100000    1000000
                                                                    Average payload tonnes

                  Graph stolen from Tristan Smith UCL Energy Institute
CO2 from shipping

                                                               CO2 from shipping (Gt)
Representing abt             1000
                                                                                                     42
                                               36                               39
2,5% of global CO2           900
                                                                                78                  78
emissions                    800
                                               73

                             700

                             600
Slow growth
                             500
2013    910 (Gt)             400               801                              813                 812

2014    930                  300

2015    932                  200

                             100

                                0
                                              2013                             2014                 2015

                                                               International   Domestic   Fishing

 SOURCES: ICCT, 2017. Greenhouse gas emissions from global shipping, 2013–2015
Regulations are increaseing

                                                                                                                                 IMO ambition
                                                                                                                 IMO ambition      to reduce
                                                                                 IMO carriage       North Sea      to reduce       total GHG
EEDI &                                      EU HAZMAT           IMO 4th          ban on non-        and Baltic   CO2/transport     emissions
SEEMP           EU MRV          BWMC          in place         GHG study        compliant fuels    NECA (-80%)   work with 40%      by 50%
2013            2018            2019             2020            2020                2020             2021           2030           2050

         2015            2018           2019            2020               2020             2021             2023            2050
    SECA North       IMO initial       IMO DCS     Global sulphur       IMO action       Baltic Sewage     IMO final     IMO ambition
    Europe 0,1%     GHG strategy                      cap 0,5%            plan on                         GHG strategy     to reduce
                                                                        plastic litter                                   CO2/transport
                                                                                                                         work with 70%
The main elements of the Initial GHG Strategy
• Vision to phase-out of GHG emissions as soon as possible in this century consistent with the Paris
  Agreement temperature goal;
• Ambition introduces an emission cap by at least 50% by 2050 compared to 2008;
• Requires that CO2 emissions per transport work reduce by at least 40% by 2030, pursuing efforts
  towards 70% by 2050;
• Levels of ambition should take into account update emission estimates of the IPCC (UN climate
  body);
• All measures will apply equally to all ships of all flags;
• Recognises the principle of common but differentiated responsibilities and respective capabilities;
• Determines the timelines for finalisation and agreement of measures:
  • short term (2018-2023)
  • mid-term (2023-2030)
  • long-term (beyond 2030);
• Notes that technology innovation and the global introduction of alternative fuels and/or energy
  sources for international shipping will be needed to achieve the overall ambition;
• Allows emissions to peak as soon as possible.
• 4th IMO GHG study in 2020. Final strategy 2023
• Working group on GHG suggest follow up programme/action to MEPC73 in October.
Example from an operator : Stena Line’s approach
Through care for each-
                            Focus areas   We shall relentlessly
other and an absolute                     strive to improve in
commitment to safety,                     energy efficiency on
Stena Line shall actively                 shore and at sea - and
promote the well being                    actively stimulate the
of our guests and staff.                  usage of cleaner energy
                                          sources.
   Health & Well-being                    Clean Energy

       Life below water                   Responsible Consumption
We rely on the ocean for                  We care for resources by
of our company’s                          responsible purchasing
existence and as such                     and by every year
shall have minimal                        reducing waste and
impact on marine life                     increasing recycling.
from our operations.
Result targets and selected initiatives 2017
Area                                               Target                    Status                                  Action
                                                                                                  Methanol project finalized. ESP celebrated 300th
                                                                            -2.1% 2017
Reduce CO2 emission per nm                   -2,5% per year
                                                                              (Sox -15%)
                                                                                                 completed project. 6 month punctuality campaign.
                                                                                                         New battery project, MRV reporting
Terminals offering ships green                                                                               Trelleborg connected 2017.
                                              25% in 2020                   17% in 2017
electricity connections (OPS)                                                                   Oslo to be connected in 2018. Fredrikshavn/Kiel TBA.
Reduction of plastic bags and           Phase out to sustainable        Bags from renewable Paper bags launched Q1 -18. New bins and waste signage
disposables on-board.                         alternatives                material in place               available for ships/terminals.
                                             +2,5% recycled             72,8% recycled 2017 Improving monthly reporting through a new share-point.
Recycle all waste                                                          68% recycled 2016
                                             waste per year               (material and energy) New ISO14001:2015 certification Q4 incl. 7 core ports.
                                                                                              New Last minute risk assessment, Stop the job policy and
LTIF – lost time injury frequency              1,2 in 2017                  0,6 in 2017                Personal Safety Handbook launched.
                                                                                                        BRM training for officers 2017/18.
                                                                         New measurement
Accidents per 100,000 guests          Below relevant competition                                          NMF Passenger Safety Campaign
                                                                            2,1 in 2017

Use of eco-label chemicals                  Min 50% in 2017             Abt 60% end Q1 2018              Upgrade of OSS products ongoing

                                                                                                               Five small spills in 2017.
Spills to water                                      0                       5 in 2017
                                                                                                        All scrubber sludge pumped ashore.

                                     RESPONSIBLE         GOOD HEALTH
                        CLEAN                                                  LIFE
                                    CONSUMPTION          & WELL-BEING
                       ENERGY                                              BELOW WATER
Stena Line CO2 emissions trend
          CO2
        ton/nm
0,600

                                                                                                                             Total gross CO2 emissions 1,35
0,550                                                                                                                                 mill mt + 5,8%
                                                                                                 Less 2,1% per nm                (Nautical
                                                                                                                                      MT CO2miles +7,9%)
                                                                                                                                               gross
                        0,539
                                                                                                       2017
                                                                                                                       1600000
                                                                                                                       1550000
             0,520                                                                                                     1500000
                                    0,509                                                                              1450000
                                                                                                                                   1372470
                                                0,505                                                                  1400000
                                                                                                                                                                      1 347 837
0,500                                                                                                                  1350000
                                                           0,495                                                       1300000
                                                                                                                       1250000                 1295628
                                                                       0,484                                           1200000
                                                                                                                                                            1274376
                                                                                  0,478                                1150000
                                                                                                                       1100000
                                                                                            0,470                                2014        2015        2016     2017
0,450

                                                                                                            Yearly ton CO2/nm
0,400                                                                                                        Linear -2,5% yearly reduction target
          2010       2011        2012       2013        2014       2015        2016       2017

        CO2/nm        - 2.1 %           Close to target in spite higher utilization, 4 scrubbers and more trips.
                                        Punctuality on positive trend, continued focus on efficiency and ESP
        NOx/nm        + 3,0 %           Maintenance of SCR’s on Stena Jutlandica/Germanica/Scandinavica
        SOx/nm        - 15,3 %          Mainly due to low-sulphur bunker used on Irish Sea North’s RoRo ships
Clean energy initiatives
• Efficiency
   • Technical - Energy Saving
       Program
   • Operational – Digital &
       Behaviour
                                   On-shore power supply
• OPS – Shore side electricity     • First installation 1990 - today 13 out of 38
• Alternative fuel/power                vessels and 5 terminals equipped.
   • Methanol / LNG                • Digital
                                       Energy      &
                                                   Savings
                                        Allows shuttingBehaviourProgram
                                                              down           (ESP)while in
                                                                      Aux engine
   • Electricity                 WorldsStarted
                                       Increasing
                                        port,       in 2005
                                           firstreducing
                                                  vessel use   of digital
                                                             noice,       totoolstofor
                                                                     emissions
                                                            conversion                air and if
                                       5green
                                       better
                                          dedicated
                                 methanol/diesel  analysis staff
                                                 electricity   and decision
                                                               reduce
                                                          propulsion    CO2 making –
                                   • ETAInstallation
                                       300
                                 Upgraded     pilot,
                                              completed  cost on
                                                       Fuel
                                               2015 during      sixthe shipby
                                                               Management
                                                                projects
                                                                     weeks,  abt.
                                                                                2017€ 400-500
                                                                                   System,
                                                                              conversion
                                        k. On
                                 finalized
                                       Small
                                       Sea      shore
                                            inTraffic
                                                 2017.
                                                 and largeabt. €700
                                                          Management  – 1,000
                                                                – LED-lights    k.to and
                                                                             project
                                   • Mandatory
                                 Budget                  in someEU
                                           abt €11 million.         ports, not possible in
                                                                      support.
                                       propellers.
                                       Punctuality         measurments.
                                        most.operation reduce SOx, particles (PM)
                                 Methanol
                                       Strong
                                   • about
                                        Electricity
                                                   contributor       to - 2,5%     /nm
                                 with            90%prices
                                                       and NOx andwith
                                                                     tax vary
                                                                         about greatly
                                                                                  60%. inCan
                                       yearly
                                       Bridge
                                        Europe    emission
                                                  Resource
                                                  -  bunker     target.
                                                                 Management
                                                               prices  are  the  same andall over.
                                 be renewably produced.
                                   • various
                                        Using OPS
                                 Infrastructure     training
                                                     isreduce   for
                                                                 CO2
                                                        relatively    safety asand
                                                                       emissions
                                                                     simple          with 13 is
                                                                                 methanol
                                       efficiency.
                                        000fuel.
                                 a liquid    tons/year.
                                 Currently operating both diesel and methanol.
Important steps in the methanol project

   SPIRETH – evaluation        EU support                 Supply              Regulatory work          Bunkering station       Big interest and
     of two methanol           granted for            agreement with           IMO IGF–code            built on quayside      recognition from
         concepts                                        Methanex                and Class              in Gothenburg          marine industry
                              PILOT Methanol
              2012                                         2014                      2014                   2015                   2016
                                   2013

  2009                 2013                    2014                    2014                     2015                   2016                       2017
  EffShip            Conversion           Conversion kit          Risk analyses in          Q1 shipyard          Engines converted          4 engines
Alternative           candidate           developed by               the Ports                upgrade              to methanol              converted
   fuels              identified            Wärtsilä                                        Remontowa              one at a time
compared,
methanol a
candidate
Next: electricity – not new to shipping
Some 130 years ago on the
Spree River in Berlin,
Siemens tested its first
electric boat, which was
intended to operate as a
kind of water taxi back in
1886.

The Elektra could carry 25
passengers at a speed of 8
knots.

                       HH Ferries   Ampere
Step 1 : Containerized Energy Storage System
• First step in company long term battery plan.
• Installation Q2 2018 of Energy Storage System of about 1
  MWh capacity and 3MW power.
• This solution could fit any ship. No limit of deck area.
• Charging by green electricity in port (30 mins) and by ships
  aux engines.                                                   Stena Jutlandica - Built 1996 (RoPax)
                                                                 Passenger capacity 1,500
• The ESS system to be used as                                   Lanemeters 2,750
                                                                 182,5 m LOA 28 m beam
  • Replace two aux engines to power bow thrusters during
                                                                 About 1,400 voyages / year
    maneuvering                                                  Aux engines 4*1,540 kW
  • Peak shaver for aux engines at normal seagoing operation
  • Safety back-up to prevent black-outs in narrow waters
• It will lower emission, noise and maintenance + add
  goodwill.
• Total investment €2,5 mill. Supported by EU and Swedish
  Swedish Transport Administration.
• Suppliers Corvus + Callenberg Technology Group.
• Potential saving of 1,500 mt CO2/year.
Step 2: ME Plug-in hybrid
• Conversion of existing diesel-mechanical vessel Stena
  Jutlandica.
• Battery operation replacing 2/4 main engines.
• For operation in port area and coastal areas up to 10 nm.
• Optimise use of main engines under operation (Peak
  shaving), reduce noise and emissions to air – especially in   Stena Jutlandica - Built 1996 (RoPax)
  urban areas.                                                  Passengers 1,500 Lanemeters 2,750
• Battery capacity about 20 MWh (Lithium jon) with 8MW          Main engines 4*MAN 9L48/54 tot. 25,920 kW.
  power.
• Remove existing 50% of the diesel power and add 8 MW
  electric drive - or keep existing arrangement and add 8
  MW electric drive to the propeller shaft.
• Charging in abt. one hour with 10MW shore side
  electricity (currently max 2,5 MW).
• Budget estimated €25 mill. Can save up to 50% of
  emissions.
• Potential start 2020/2022
Step 3 : Full electric

•   Full electric short-sea RoPax.
•   Conversion or more likely N/B.
•   Battery capacity of 50 MWh, charging in 2-3 hours with 10 MW.
•   Operation range of about 50 nautical miles.
•   Ambition for 2030 - a fossil free route Göteborg-Fredrikshavn.
•   When a capacity and range of about 60 nm is achieved about 5-6
    of Stena Lines 21 routes can potentially be electrified.

• Supporting initiatives:
  • Minor stakeholder in future battery producer “Northvolt”         Short routes with potential in falling order
  • R&D on battery recycling through Stena Recycling                 Cairnryan – Belfast           40nm     2 ship
  • Participation in Swedish Electric Mobility Lab                   Gothenburg – Fredrikshavn     52nm     2 ship
                                                                     Fishguard – Rosslare          58nm     1 ship
                                                                     Trelleborg – Sassnitz         62nm     1 ship
                                                                     Holyhead – Dublin             62nm     2 ship
                                                                     Varberg – Grenå               65nm     1 ship

                                                                     9 out of 38 ships – 24%
So - energy savings OK but new type of fuels are necessary
A multifuel future
Stena’s view is that we have to face a fuel mosaic as different ship types need
different solutions depending on size, age and trade. There will also be
increased competition with other transportations segments.

• In a 10-15 year perspective HFO with scrubber and Marine Gas Oil will still
  be the most used fuels for ships due to their cost effectiveness.
• LNG will be a suitable bridge fuel for new built ships in areas were fuel
  logistics are well developed.
• Methanol/ethanol can be developed as a step towards fossil free shipping.
• Wind, electric hybrids and other contributors to lower emissions will
  increase sharply in the near term.
• Fully battery powered ships will be an attractive alternative for short sea
  shipping 10-15 years from now. Distances less than 100nm (?).
• In a longer perspective bio fuels, ammonia and fuel cells will enter the
  market.
What is needed to get the change started ?
Thank you for listening
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