WWF Ballast Water SeminarWWF Ballast Water SeminarNovember 30, 2006November 30, 2006OceanSaver ASOceanSaver ASOceanSaver ASOceanSaver ASStein FossStein Foss

Background of foundersBackground of founders• 4 founders – all from maritime industries• More than 100 years maritime experience • Sailing on shipsSailing on ships• Management of marine supplier companies• Project Management• Newbuilding experience – on siteNewbuilding experience on site• Substantial retrofit experience

Shareholders:Shareholders:

FoundersFounders

Project funding partners:Project funding partners:

Key suppliers:Key suppliers:

Verification bodies:Verification bodies:

O S ASO S ASOceanSaver ASOceanSaver AS• A Norwegian shareholding company.

• Established 2003• Established 2003.

• Substantial national and international supportpp

• Goal: To develop an IMO compliant, non-chemical d ld l di f B ll W Tand world leading system for Ballast Water Treatment.

• Focusing on 3 main issues:• Focusing on 3 main issues:

1. Environment1. Environment1. Environment1. Environment

1. Environment1. Environment1. Environment1. Environment

IMO:”Ballast Water Pollution is one of the four greatest threats to the worlds oceans”O S ® ill bOceanSaver® will be:– Compliant to; “The International Convention for

C t l f Shi B ll t W t d S di t ”Control of Ships Ballast Water and Sediments”

2. Safety2. Safety2. Safety2. SafetyClassification societies:“Corrosion in ballast tanks is the most important cause of loss of ships”important cause of loss of ships

Sinking tanker ”Erika”Sinking tanker Erika

A 25 ld i l h ll t kA 25-year old, single hull tanker

Broken tanker ”Prestige”Broken tanker Prestige

A 26 ld i l h ll t kA 26-year old, single hull tanker

2. Safety2. Safety2. Safety2. SafetyClassification societies:“Corrosion in ballast tanks is the most important cause of loss of ships”

OceanSaver® will be:– Compatible with the new IMO “Coating

Performance Standards” for Protective Coatings (CPS) d t t(CPS) – amendment to: SOLAS regulations II-1/3-2 and XII/6E t i t t d i d t l t A 1 f– Extensive tests designed to comply to Annex 1 of the CPS requirements and DNV B1 test(= standard test for coatings)(= standard test for coatings)

3. Economy3. Economy3. Economy3. EconomyShip owners: p“Maintenance of coating systems in ballast tanks is one of the single most costtanks is one of the single most cost demanding maintenance issue on ships”.

OceanSaver®:– Installation of OceanSaver® will be an investmentInstallation of OceanSaver will be an investment

in coating protection and reduced maintenance.The investment will be paid back within 10 years– The investment will be paid back within 10 years under normal operation and conditions.

d i i t h l d…an award winning technology and a unique combination of: - Ballast Water Treatment - Corrosion control & Coating protectionCorrosion control & Coating protection

IMO – Regulation D1IMO – Regulation D1gBallast Water Exchange standard

gBallast Water Exchange standard

• Ballast Water Exchange; all ships from 2009, required efficiency of at least 95%., q y

• 1. Empty tank and refill

• 2. Pumping through-method; 3 times the l f th b ll t t kvolume of the ballast tanks.

• Min 200 nautical miles off shore and at min• Min. 200 nautical miles off shore and at min. 200 meters depth (B-4, 1.1)

BWE (D1) b f t lBWE (D1) b f t lBWE (D1) can be fatal …BWE (D1) can be fatal …

IMO Regulation D2IMO Regulation D2IMO – Regulation D2Ballast Water Performance standard

IMO – Regulation D2Ballast Water Performance standard

• 1. Discharge of organisms1. Discharge of organisms < 10 viable organisms/m3 ≥ 50 µm< 10 viable organisms/ml < 50 µm ≥ 10 µm< 10 viable organisms/ml < 50 µm, ≥ 10 µm

• 2. Discharge of the indicator microbessc a ge o t e d cato c obes1. < 1 cfu/100 ml Vibrio cholera2. < 250 cfu/100 ml Escherichia coli2. 250 cfu/100 ml Escherichia coli3. < 100 cfu/100 ml Intestinal Enterococci

Timetable D1 / D2Timetable D1 / D2Timetable D1 / D2Timetable D1 / D2

B-3 Ballast Water Management for ships D1: Exchange, D2: Treatment)

Regulation Keel laying BW Volume 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exist.Ships

B-3.1.2 < 2009 < 1500 D1 / D2 D2

D1 / D2 D2Ships B-3.1.1 < 2009 1500~5000 D1 / D2 D2B-3.1.2 < 2009 > 5000 D1 / D2 D2B 3 3 ≥ 2009 < 5000 D2New

Ships

B-3.3 ≥ 2009 < 5000 D2B-3.4 2009~2011

≥ 5000D1 / D2 D2

B-3.5 ≥ 2012 D2B 3.5 ≥ 2012 D2

Expected available and approved systemsapproved systems

Status of the IMO ConventionStatus of the IMO Convention (October 2006)(October 2006)

• Convention has been signed by:Convention has been signed by:– Argentine, Australia, Brazil, Finland, The Netherlands

• Convention has been ratified by:Convention has been ratified by:– Maldives, Nigeria, Saint Kitts and Nevis, Spain, Syria, Tuvalu– 6 States, approx. 0.6% of world tonnage

N l O t b 27 2006 Will tif ddi– Norway - press release on October 27, 2006: Will ratify – adding 2,4% of world tonnage

• The Convention is not yet in forceThe Convention is not yet in force– The Convention comes into force 12 month after 30 countries

representing over 35% of world tonnage have ratified the Convention

National requirementsqCanada

mandatory from 2006-06-28

United Kingdom

USA

2006-06-28 Israel

mandatory from 2004-09-27 Australia

Victoria,Panama

Canalmandatory from

2004-07-01

Chile

ArgentinaBrazil

mandatory from 2005 10 15 New ZealandArgentina 2005-10-15 New Zealand

USAUSAUSA USA

• D1 from Sept. 27, 2004

• D2 expected as soon as possible –

US – court order (deadline for EPA Sept 2008):US – court order (deadline for EPA Sept 2008):”When technologies are available – no excuse for shipowners to delay installation of equipment for yBallast Water Treatment!”

Wh t i O S ® ?Wh t i O S ® ?What is OceanSaver®…?What is OceanSaver®…?

The main components of the OceanSaver® system are:

FiltrationFiltration –– separation of organismsseparation of organismsp gp gCooperation with leading filter manufacturer: Bollfilterfilter manufacturer: Bollfilter

Klick picture for details.

Feed air compressorFeed air compressorpp- Providing air for N2 generation- Providing air for N2 generationg g

Cooperation with compressor manufacturer:

g g

Cooperation with compressor manufacturer:Cooperation with compressor manufacturer:

Tamrotor Marine Compressors (TMC)

Cooperation with compressor manufacturer:

Tamrotor Marine Compressors (TMC)p ( )p ( )

Klick picture for details

Nitrogen generatorNitrogen generatorS persat ration of BW- Supersaturation of BW

- Controlled Atmosphere (in empty tank).

Cooperation with nitrogen generator manufacturer:manufacturer:

Kli k l f d t ilKlick logo for details.

P/V P/V valvevalve

Controlled atmosphere in the ballast tanks

C3 T DevelopmentC3-T DevelopmentPipe inner diameter: 60 mm each unitPipe inner diameter: 60 mm each unitpp

Torpedo diameter: 57 mmTorpedo diameter: 57 mm

One unit, One unit, capacity 30 mcapacity 30 m33capacity 30 mcapacity 30 m33

C3T prototype – 200 m3/h for IMO G8 approval (land test)

at NIVAat NIVA

3D Solid Model – 6 Sub Units

End View - 6 Sub Units

3D Solid Model 6 Sub Units

30 m30 m33 capacity each unitcapacity each unit

20 units x 30 m20 units x 30 m33 = 600 m= 600 m33

Ø = 150% of BW pipeØ = 150% of BW pipe

C3-T Prototype 600 m3/h for IMO G8 approval (shipboard test)

Pilot I: MV Höegh TrooperPilot I: MV Höegh TrooperDummy pipe, prepared for C3T

Pilot I: MV Höegh TrooperPilot I: MV Höegh Troopery p p p p

Filter

NOTE; N2 generator / compressor mayNOTE; N2 generator / compressor may be fitted independently - anywhere -not necessarily in the engine room

Pilot I: MV Höegh TrooperPilot I: MV Höegh TrooperPilot I: MV Höegh TrooperPilot I: MV Höegh Trooper

BW pump capacity: 2 x 600 m3/hBW pump capacity: 2 x 600 m3/h

Pilot II: MV Federal WellandPilot II: MV Federal WellandPilot II: MV Federal WellandPilot II: MV Federal Welland

BW pump capacity: 2 x 690 m3/hBW pump capacity: 2 x 690 m3/h

LNG vesselsLNG vesselsLNG vesselsLNG vessels

BW pump capacity: 2 x 3000 m3/hBW pump capacity: 2 x 3000 m3/h

OceanSaver® treatment sequenceOceanSaver® treatment sequence… ballast intake

Ba

Air compressor

N2

allast tannk

CavitationC3-T

Air FilterBW Pump

Sea chest

N2 generator

Disposal (separated organisms) Sea

OceanSaver® treatment sequenceOceanSaver® treatment sequence… ballast discharge

BaAir

Air compressor

allast tannk

CavitationC3-T

FilterBW Pump

Sea chest

N2 generator

Sea Discharge overboard

OceanSaver® treatment sequenceOceanSaver® treatment sequenceTanks are inerted

… inerting BW tanks

Ba

Ba

Air compressor

allast tanallast tanN2 nk nk

CavitationC3-T

FilterBW Pump Air

Sea chest

N2 generator

Sea

Corrosion & Coating protectionCorrosion & Coating protectionCorrosion & Coating protectionCorrosion & Coating protection

• Corrosion assessment MV Höegh Trooper – DNV

• Coating assessment MV Federal Welland S fi h Ltd– Safinah Ltd

I iti l l i fi d d i• Initial conclusion confirms reduced corrosion

• Final conclusion and test report – Q1 2007

Corrosion & Coating protectionCorrosion & Coating protectionCorrosion & Coating protectionCorrosion & Coating protection

Test coupons (coated steel plates):

April 2005

Coating protectionCoating protectionCoating protection(Test coupons from Höegh Trooper)Coating protection

(Test coupons from Höegh Trooper)

August 2006August 2006

Coating protectionCoating protectionCoating protection(Test coupons from Höegh Trooper)Coating protection

(Test coupons from Höegh Trooper)

Untreated tanks – Several mm creep corrosion

Untreated tanks – Several mm creep corrosionpp

Coating protectionCoating protectionCoating protection(Test coupons from Höegh Trooper)Coating protection

(Test coupons from Höegh Trooper)

Treated tanks – Substantially reduced creep corrosion

Treated tanks – Substantially reduced creep corrosion

– increased adhesion– increased adhesion

Summary of the…Summary of the…

Main features: - Compliant Ballast Water Treatment (D2) - Efficient Corrosion Control & Coating Protection g

(CPS Compatible)EXTENDED LIFETIME OF SHIPS

- Saving potentialNo chemicals / additives- No chemicals / additives

- Low operational & maintenance cost- Worldwide service network

Awards Awards • DnB NOR Innovation price 2003 – 2. price• Winner of Seatrade Awards 2006• Winner of Glassbjørnen 2006 (NorwegianWinner of Glassbjørnen 2006 (Norwegian

Environmental price)• Nominated for EEP Awards 2006

(European Environmental Press)( p )

BWT List of manufacturesBWT – List of manufactures

• The list gives in alphabetic order names of manufacturers of treatment systems• No system/manufacturer is promoted nor put backy p p

BWT Making use of “active substance”BWT – Making use of active substance

nonoOceanSaverOceanSaver

• Systems that make use of an “active substance” are subject to an additional certification which includes Basic Approval and Final Approval by IMO

Approval of BWT systemsApproval of BWT systems

BW T t t t h ll b t d• BW Treatment systems shall be type approved• Certification by Flag State (or authorized Classification Society)• Acc to Guideline Res MEPC 125(53)• Acc. to Guideline Res.MEPC.125(53)

“GUIDELINES FOR APPROVAL OF BALLAST WATER MANAGEMENT SYSTEMS (G8)”

• Systems that make use of an “active substance” have to carry out an additional approval procedure

A l b IMO• Approval by IMO• Acc. to Guideline Res.MEPC.126(53)

“PROCEDURE FOR APPROVAL OF BALLAST WATER PROCEDURE FOR APPROVAL OF BALLAST WATER MANAGEMENT SYSTEMS THAT MAKE USE OF ACTIVE SUBSTANCES (G9)”

Approval procedure for Treatment Systemspp p f y

Laboratory test by manufacturer BASIC approval procedure for “active substance”

Application to the Administration

Report by IMO Technical Group

Application to the Flag State Administration

Report by IMO Technical Group

BASIC approval of substance by IMO

Land based test:• defined influent water

Shipboard test:• functional test

FINAL approval procedure for systemsmaking use of an “active substance”defined influent water

• number of test cyclesfunctional test

• biological efficacy test

T A l / C tifi t

Application to the Administration

O GType Approval / Certificate Report by IMO Technical Group

FINAL approval of system incl. active substance by IMOReady for on-board installation

Anticipated time line for type approvalAnticipated time line for type approval

Systems that do not use active substances (G id li G8)Systems that do not use active substances (Guideline G8)

earliest type approval first possible dateearliest type approval(June 2007)

Review 2007 2008

pthat BWM Convention

comes into force

2009time line(July

2005)

land-based test

2007 2008 2009

earliest type approval (July 2007)“Basic approval” obtained in March 2006

type approval (March 2008)“Basic approval” obtained in Oct. 2006

land based test facilities available

(Oct. 2006)

Systems that do use active substances (Guidelines G8 + G9)

Main goals for OceanSaverMain goals for OceanSaver• Complete the development – 2006

C G8 t l d i• Commence G8 type approval procedure in January 2007 (land based) at NIVA

• Install prototype system on Höegh Trooper within February 2007 (depending on ship y ( p g pschedule)

• Type approval (G8) within August 2007 – firstType approval (G8) within August 2007 first system?

• Sale of commercial systems in 2007

Response from the marketResponse from the market

• Several inquiries• Mostly for newbuildings• Last one received recently LNG carriers to be• Last one received recently – LNG carriers to be

built at Samsung, Korea– delivery 2011!!!• Retrofit – owners will wait as long as

possible???possible???• National legislation will speed up the process...

Challenges for retrofitChallenges for retrofit

• Requirements for pre-engineering - time-consuming• Nobody knows where a ship will dry-dock until shortly

before • Difficult to involve installation company / yard?

– several months before dry-dockingy g• Installation in yards vs while ship is in operation• Many installations required within a short time• Many installations required within a short time…

BWT Retrofit marketBWT Retrofit market• Current merchant Fleet: 44 000 vessels• By 2016: 50% scrapped• Of remaining 50%: Half (~25%) too old for BWT• Remaining # vessels for BWT: 11 000• + new ships 2006 – 2016: 7-11 000• Total BWT retrofit market: 20 000 vessels• Conservative cut: 50%• Result, BWT retrofit market: Min. 10 000 vessels• Timeframe: 2006 – 2020: • Average: 650-700 vessels annually

Retrofit activity - worst case scenarioRetrofit activity - worst case scenario

2500

3000Ideal?Ideal?

A vision or A vision or ibl lit ?ibl lit ?

2000possible reality?possible reality?

1000

1500 # vessels

500

1000

02006 2008 2010 2012 2014 2016 2018 2020

Note that this graph is made on the pure assumption that owners want to postpone installation as long Note that this graph is made on the pure assumption that owners want to postpone installation as long as possible. This must be considered a real worstas possible. This must be considered a real worst--case scenario. There is hardly capacity in the world case scenario. There is hardly capacity in the world –– as BWT suppliers or repair yards / companies as BWT suppliers or repair yards / companies -- to cope with a demand close to what is simulated in to cope with a demand close to what is simulated in the peak.the peak.pp

Contract FinancingContract Financing• OceanSaver can offer financing through

Eksportfinans (Norwegian Government export bank)Eksportfinans (Norwegian Government export bank)• Subsidized OECD terms – CIRR (Commercial

Interest Reference Rate)Interest Reference Rate)• Up to 8 years financing

G t f GIEK (Th N i G t• Guarantee from GIEK (The Norwegian Guarantee Institute for Export Credits) - based on financial recordsrecords

• Financing up to 85%15% h• 15% cash

Th illi $ tiThe million $ question(to shipowners):( p )

Do you want a BWT system with an active b t i ki b ll t t ksubstance – risking your ballast tank

coatings…?…or would you prefer OceanSaver® - the only non-active substance BWT system thatonly non active substance BWT system that actually protects your coatings…?

…because you need it – sooner rather than later!

End of presentation.

Thank you for your attention!

More details?More details?Any questions?