Mon 15 Jun 2009, 12:28 GMT

Chemoil gets ready for emissions regulations


Supplier says it is 'well-positioned' to meet the increase in demand for low sulphur products in North America.



Leading bunker supplier Chemoil has stated that it will continue to pioneer the provision of sustainable marine fuel solutions to help ship operators meet the emissions reductions requirements proposed for enforcement across the coastlines of the United States and Canada.

This follows a joint application to the IMO by both the USA and Canada at the end of March 2009 to create an Emissions Control Area (ECA) that would stretch across more than 200 nautical miles of coastal waters to help lower emissions from vessels traveling to and from ports in the region.

Current ECA regulations limit sulfur levels to 1.5% and will be further reduced to 1.00% in March 2010 and 0.1% by early 2015, thereby creating concerns amongst shipping companies about the potential operational and commercial implications of meeting these requirements in a North American zone. This has been compounded by further pending restrictions on emissions of NOx and particulate matter.

In addition, July 1st 2009 will mark the application of first substantial ruling for a reduction in sulfur from marine fuel in North America. The California Air Resources Board (CARB) regulation will require shipowners operating within 24 miles of the California coastline to burn either marine gas oil (MGO), with a maximum of 1.5% sulfur, or marine diesel oil (MDO), with a maximum of 0.50% sulfur in their main engines, auxiliary engines or boilers.

Thereafter, beginning January 1, 2012, vessel operators will be required to use MGO or MDO with a maximum 0.10% sulphur in their main and auxiliary engines. Operators who fail to comply with the rules would be subject to fines, penalties and potential exclusions from the ports of California.

"With proven experience of supplying low emission marine fuels in Europe and the US respectively, Chemoil is well-positioned to meet increased demand for such products as the legislative process gains pace internationally," the company said in a statement.

In addition to its extensive and diversified global sourcing capabilities, the company has recently completed the expansion of its Carson Terminal in Los Angeles to provide additional storage for cleaner products and continues with its plans to increase storage capacity to support this business at its Long Beach Marine Terminal.

Adrian Tolson, Vice President, Sales and Marketing, Chemoil said: “The US has proven that it is serious about accelerating its efforts to reduce shipping emissions and understandably this poses a challenge to all members of the shipping community. Collectively we must rise to this and find solutions that are both operationally and commercially sustainable.

“Due to our longstanding experience of supplying lower emission products, Chemoil is in a position where we can reassure customers that during this transitional period, between now and 2015, every effort is being made to source and supply low sulfur marine fuels at US ports where we have a physical presence. The company is also taking proactive measures to explore solutions that will enable vessels to meet the more stringent requirements from 2015 onwards.

"In keeping with our commitment to innovation, we are encouraging the industry to tackle the issue practically yet creatively. Fully investigating the feasibility of new abatement technologies, alternative fuel sources or could not only reduce sulfur without resorting to a solitary switch to distillates, but could also potentially tackle the incoming limitations on particulate matter and NOx emissions.”


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