© ZEF Ltd

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ZEM FUEL SYSTEMS LTD.

Fleet life extension: Fuel Cell: Zero emissions

John Irvine, Vinay Mulgundmath , Keith Millican

OVERVIEW

• Clean Shipping – MARPOL73/78

• Marine Fuels

• Bridging Solution

• Heavy Diesel Reforming

• Fuel Cell Solutions

• Conclusion

1

MARPOL 73/78 Annex VI

• Regulations for the prevention of marine ship air pollution from marine diesel engines with a power output of more than 130 kW

SOx + PM, NOx and CO2 Legislative Timeline

2

MARPOL regulations came into force on 19 May 2005 however legislation will be subject to review in 2018

EEDI: Energy Efficiency Design Index

SEEMP: Ship Energy Efficiency Management Plan

1. US Environmental Protection Agency

Technology to meet Emission Regulation

HFO can meet (Average Sulphur content in HFO is 2.7%)

Duel fuel can meet

Scrubber can meet

LNG can meet

NOx reduction technology require

Emission

Category

Current 2020

Global ECA Global ECA

SOx + PM 3.5% Global SOx

limit

0.1% ECA SOx

limit

<0.1% in

California

0.5% Global SOx

limit subject to

review in 2018

(May delay till

2025)

0.1% ECA SOx

limit

NOx

NOx tier II for NB’s

NOx tier III in ECA’s for NB’s

CO2

EEDI and SEEMP into

force (NB’s)

EU Market-Based Measures fully

implemented

• Since the regulation was introduced, little had been done in terms of enforcement until very recently

• In January 2015, the EPA1 released a

penalty policy for violations of the sulphur emissions limit for ships operating in the North American and US Caribbean Sea Emission Control Areas

- EPA may impose a fine of $25,000 per violation, per day

- Burning compliant fuel, maintaining written procedures, recording the fuel change-over in the log book, and retaining bunker delivery notes and samples of the fuel oil are all considered separate obligations and, thus, separate violations if breached

• In the EU, ports are able to fine ships that are non-compliant however this is not carried out consistently across the European Emission Control Area

- Fines vary from port to port

- The UK is taking a more ‘pragmatic’ approach to enforcement, ensuring the country remains competitive

Global Maritime Transport

3

o Maritime transport accounts for nearly 94% of global trade

o Emission Control Areas and MARPOL 73/78 Annex VI framework

Upto 200 nautical miles from mainland

153 nations representing 98.5% of shipping tonnage

Restrictions on Fuel emissions – NOx, SOx, PM, CO2

Global

Marine

Market Size

and Value

Total Market Volume: 50,000

Total Market Value*: >£30bn

Source: CERA, Lloyds Register

Fairplay, Marisec.org

Market Overview

£30b market within the marine emissions abatement industry being driven by legislation

Why Now?

5

• MARPOL is being enforced now, due to the 2020

Sulphur cap on marine fuels

• IMO 2030/2050 GHG commitment, agreed

last year in London.

• Penalty on MARPOL violations range from USD

25,000 to USD 250,000 per vessel per day (

depending on size) and it is STRICTLY being enforced

in US territorial waters.

Baltic Sea (SOx: adopted 1997 / entered into force 2005; NOx:

2016/2021)

North Sea (SOx: 2005/2006; NOx: 2016/2021)

North American ECA, including most of US and Canadian

coast (NOx & SOx: 2010/2012).

US Caribbean ECA, including Puerto Rico and the US Virgin

Islands (NOx & SOx: 2011/2014).

Greenhouse Gas Emissions. 2011 Amendments to MARPOL

Annex VI introduced mandatory measures to reduce emissions

of greenhouse gases (GHG).

Emission Control Areas (ECAs)

“The global Sulphur cap in 2020 may cost the shipping industry as much as 50+

billion USD – per year, based on the presently very low oil prices “– Maersk

Maritime Technology.

“IMO designates North Sea, Baltic Sea as NOx Emission Control Areas”

(www.shipsandports.com.ng)

“We made significant progress in the 2014-15 reporting period, particularly in terms

of our self-imposed environmental target to lower CO2e emissions by 45 percent by

2020,” Dr. Ottmar Gas, Chairman of the Executive Board of Hamburg Süd.

“There are still many uncertainties on how ship owners and operators are expected

to comply with the 2020 IMO regulatory framework”- Shell.

“The shipping industry must prepare for a future with lower transport emissions”-

Shell.

“It’s very very tricky,” says Lars Robert Pedersen, deputy secretary-general at the

Baltic and International Maritime Council (Bimco), representing about 60 per cent of

the world’s ship owners regarding compliance requirements for IMO regulations.

Commercial Quotes

Ferguson Marine to develop renewables-powered hydrogen ferry – HySeas III

• Martin Smith

Alternative fuels : Biogas, Biofuels and Synfuels

• Ammonia

• Methane / Methanol

• Hydrocarbons

• Diesel

Fuel Cells

• Electrochemically combust fuels

– high efficiency

• 70% chemical to electrical

– Highly scalable

• Decentralised - renewables

– Fuel flexibility

– silent

– clean

– quality power

50 kW Module

• Demonstrated integrated manifold assembly, nominally four 96-cell stack blocks, but components designed for full (2X) tower flows

• Fully self contained and thermally self sustaining

• Successfully validated many completely new components developed under the SECA contract

• Will be the basis for future (commercial) SOFC module designs

Stack Current 187.4 A

Cell Voltage 819 mV

Stack Voltage 78.64 V

Gross Module Power 58.96 kW

Fuel Utilization - System 81%

Module Efficiency (LHV) 65%

11

Versa Power / Fuel Cell Energy

Bloom Energy

• SOFCs running on Natural Gas and Biogas

• 100kW units

• Electrons not Fuel Cells

• Selling kWh not kW

Scrappage is not so environmentally friendly

Proposed Scheme for Near-shore Ship Propulsion

Diesel Fuel

Hydrogen/Reformate

Fuel Cell

Fuel Cell Stack

Fuel Cell System

Ship installation

Diesel Reforming

Diesel + Steam Hydrogen + CO ? Hydrogen

𝐶𝑛𝐻2𝑛+2 + 𝑛𝐻2𝑂 → 𝑛𝐶𝑂 + (2𝑛 + 1)𝐻2

Requires New Reforming Catalyst

• Good coking resistance

• Low Cost

• Sustainable elements

• High Activity

• Durability

IAA Preliminary project

Steam Reforming of Diesel with Exsolution Materials

Best Perovskite

-0.00005

0

0.00005

0.0001

0.00015

0.0002

0.00025

0.0003

0.00035

0.0004

0 50 100 150 200

Reforming Products (mol per min)

H2 CO CH4 C2H4 CO2

-0.0005

0

0.0005

0.001

0.0015

0.002

0.0025

0.003

0.0035

-50 0 50 100 150 200

C H O amounts (mole per min)

C H O

0

20

40

60

80

100

120

0 50 100 150 200

Coking ratio/%

2

2.05

2.1

2.15

2.2

2.25

2.3

2.35

2.4

2.45

0 50 100 150 200

H/O ratio

Steam Reforming of Diesel with Exsolution Materials

Conclusions

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High Value opportunities in the marine emissions regulation market

Legislation Driving Market

Key Success Factors

MARPOL Annex VI regulation dictating SOx, NOx, CO2 &

PM emissions limits from ships creating market

opportunity

Recommendation is to develop, demonstrate a multifuel

reformer technology for the retrofit and new build marine

market sectors.

2 Key requirements to play in this market are

demonstration of proven technology and flexibility

towards customers needs

Strategic Recommenda

tion

20

THANK YOU