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The Energy Edition: Exploration, Production & Transportation

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Insights 200-mile ECA is not the most effective or effi cient compli- ance option allowed under the regulations.” In the cruise in- dustry, therefore, a more creative solution is emerging.

Roger Frizzell, Carnival Corporation’s Chief Communica- tions Offi cer, told MarPro in February, “We are tremendously excited about the progress we are making with our new and innovative scrubber technology.” Mr. Frizzell also pointed to plans for Carnival’s European brands, adding , “… we are also looking to expand this breakthrough technology to our other brands that are based outside the United States,” mentioning

Aida and Costa. He also noted, “Aida, for instance, is one of the early adopters of the scrubbers, with plans to install the technology across its fl eet.” Aida, where shorter voyages mean more port time, had announced a €100 million invest- ment program in the summer of 2013. That technology was described as a new, comprehensive fi lter system that would be deployed on existing and newbuild vessels.

Slimming Bunker Buys with a

Heavy Helping of Technology

For 2014, Carnival estimates its overall fuel spending to be a staggering $2.1 billion, based on 3.2 million metric tonnes at an average price of $650/tonne. In regulatory fi lings from 2013, Carnival had estimated that extra fuel costs, because of

ECA’s, would be $265 million in 2015. From the perspective of payback on its scrubber investment, Carnival’s Chief Fi- nancial Offi cer, Mr. David Bernstein, said, on Carnival’s latest investor call, “At this point, it’s fair to say that more than the majority of that $265 million will disappear, so the number will be less than half.” These economics are impressive by any criterion: annual benefi ts of as much as $130 million on an in- vestment of around $180 million. Moreover, Carnival claims in its latest 10K fi ling (tied to its 2013 Annual Report), “As a result of installing these scrubbers, we believe the cost of complying with the 2015 ECA sulfur emission requirement will not be signifi cant to our results of operations.” Published reports suggest that Carnival has gained an extra year, to 2016, to achieve implementation. During port calls, the vessels will switch over to shore power, or burn low sulfur fuel. Particu- lates, trapped in a fi lter, will be disposed of in port.

Bud Darr, CLIA’s Senior Vice President of Technical and

Regulatory Affairs, spoke at length with Maritime Profession- al about the cruise industry’s proactive and forward-thinking posture regarding emissions. He explained how CLIA’s ap- proach has evolved over the past few years, at a time that the technologies for emissions reduction are evolving rapidly, saying “both operational and technical equivalencies (which could incorporate the use of scrubbers, shore power and al- ternative fuels, he points out) are of great importance” in considering all viable mechanisms that will achieve emission reduction requirements and goals. He noted that MARPOL

ANNEX VI Regulation 4 provides for broad equivalencies.

Specifi cally, the existing text provides that the requirements can be met by any fi tting, material, appliance, or apparatus to be fi tted in a ship or other procedures, alternative fuel oils, or compliance methods used as an alternative if they are “at least as effective in terms of emission reductions.”

Carnival isn’t alone in the quest for alternative solutions to the emissions quandary. Others have embraced scrubber tech- nology. At RCCL, scrubber technology from Wärtsilä will be deployed on two newbuilds from the Meyer Werft’s Papenburg yard. The 4,200 passenger Quantum of the Seas will debut in

November 2014 followed by her sister-ship Anthem of the

Seas in April 2015. NCL initially dipped its toe in the water, going with Green Tech Marine’s “GTM-R” equipment on its

Pride of America (based in Hawaii) and on its two “Breakaway

Plus” newbuilds; the Norwegian Escape and Norwegian Bliss, also with a 4,200 passenger count, coming out of the same

Meyer Werft yard, in Q4 2015 and Q2 2017. In mid February, the line also announced that it would be retrofi tting six vessels with GTM-R equipment, including Norwegian Breakaway and

Norwegian Getaway. NCL explains that: “The GTM-R scrub- bers are compact, making it possible for the builds to avoid the loss of cabin space or other service areas. GTM uses one smaller scrubber for each engine instead of a large multi inlet scrubber serving several engines, and the scrubber also replac- es the silencer, which is very suitable for cruise ships.”

Distinct Advantages for Early Adaptors

CLIA’s Bud Darr also explained that designers of new builds where scrubbers will be deployed have far more fl ex- ibility than those seeking to retrofi t scrubbers. He noted that “Cruise ships normally employ medium speed diesel engines that are vertically short in height to fi t the allocated machinery space. Space is at a premium, so typically the scrubber will be placed in the stack area,” adding that “sometimes the scrubber can be fi tted in the footprint of the silencer.”

In embracing scrubbers, the cruise industry has moved ahead of the overall curve. In DNV GL’s rigorous study “Shipping 2020,” the Class society expresses a view that industry up- take of scrubbers will not be widespread prior to 2020. The possible usage of scrubbers is predicated on the advent of the 0.5% worldwide restrictions on vessels’ sulfur emissions against a backdrop of high fuel prices. And yet, the cruise in- dustry has moved ahead aggressively, nevertheless. News re- leased by AIDA, the brand within Carnival serving Europe, provides clues as to the technologies that might be deployed in the cruise giant’s company-wide initiative. AIDA explains: “With this as yet unrivaled exhaust treatment technology, we are able to fi lter and thus reduce by between 90 and 99 percent, 18 | Maritime Professional | 1Q 2014

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Maritime Logistics Professional magazine is published six times annually.