Multiple approval barriers to free trade in environmental protection systems

As a product development manager, I used to think that the supply of industrial instrumentation equipment was made particularly difficult by the plethora of International, European, American and specific industry (and country) specifications and requirements. In an age of International co-operation it seemed these approvals were designed to act as protective barriers for home industries. But these seem trivial compared to the problems faced by suppliers to the World shipping industry, in particular in relation to environmental protection.

Readers of this column over the years will have been aware that I reported enthusiastically on the Alfa Laval PureBallast treatment system for purifying ballast water discharges from ships, launched back in 2007, at Greenwich. This enthusiasm was because of both the professionalism of the launch, as well as the laudable product objective and aspiration: it was one of the best such events I had attended, despite atrocious windy weather, freak waves and thunderstorms on the boat cruise taking the Editors down to Greenwich! With slightly bigger waves there might have been no Editors left to report on the event!

BWT – Ballast Water Treatment systems

In the Alfa Laval system, light energy, from a broad spectrum source, acts on a Titanium catalyst in the flow, to produce hydroxyl ions, which oxidise and kill any organic material in the ballast discharge. This was developed in co-operation with Wallenius Water, who had done the shipboard tests on some of their ships over the previous three years. Alfa Laval launched this product in January 2007, to make it available for ship-owners in time to meet the IMO regulations that would require such equipment to be installed on all new build ships after 2009, in participating countries.

Another Scandinavian company, Optimarin from Norway, was at the same time addressing the ballast water treatment market, using Ultra-Violet light from high power UV sources (35kW) to kill any potentially harmful invasive organisms straight away. Optimarin was established in 1994 to develop this system, and supplied the first ever BWT system installed in 2000 on the Princess Cruise Line ‘Regal Princess’.

Extended approval timescales

It is significant that it is now 2016, over 20 years since Optimarin was founded, and at least 12 years after the first Alfa Laval systems were installed for sea trials on Wallenius ships. It is also 7 years after the first of the IMO regulations came into force – these did allow several years grace for older ships still operating from prior to 2009. All this makes for a very long lead time for any new product development to grow and become commercial!

Yet only in December last year did the US Coast Guard finally confirm that it would not type approve BWT systems if they failed to totally kill potentially invasive marine organisms transported in ballast water. This will exclude many ‘conventional’ UV purification systems which use lower power lamps as sources, since these render the organisms “unviable” (ie they are still alive but cannot reproduce). The approval tests carried out by DNV to prove performance to the USCG criteria (applying the CMFDA staining test method) takes up to a year, and Optimarin suggests that the testing – due for completion this year – will cost them around US$3m.

Alfa Laval also expresses confidence that their PureBallast system will meet the current USCG test criteria, and their tests will also be completed this year: at the moment, Alfa Laval points out that although US ballast water regulations took effect in 2012, no systems of any technology have yet been type approved by the USCG.

IMO, the World shipping legislative body

Indeed the IMO regulations themselves are not universally applied as yet: the “International Convention for the Control and Management of Ship’s Ballast Water & Sediments” is legislated to enter into force one year after being ratified by 30 states, representing 35% of the world’s tonnage. At present, March 2016, 46 states have ratified, representing 34.8% of the world’s tonnage – almost at the action stage! So the product is on the point of what should be a worldwide legislated requirement…..one more country to ratify the IMO proposal, with one more tanker, and a year later the market will be confirmed. Its only taken nearly 20 years for these products to become a market requirement!

The USCG requirements will have no effect on shipping using previously approved UV BWT systems in the seas and oceans outside US territorial waters.

Individual ship approvals, Insurers, and Ex regulations

The problems for the suppliers are not yet finished: for shipboard use the equipment also requires certification by a whole further range of classification organisations, like DNV GL, Lloyd’s, Bureau Veritas, MLIT Japan, and American Bureau of Shipping. Some tanker operators also require hazardous area approvals, i.e. to Zone 1 ATEX standards in Europe: Optimarin have supplied 10 such systems for the Turkish tanker fleet of Atlantis Tankers, which are designed for the transport of IMO II classified chemical cargoes.

Suppliers and users

Optimarin publish their existing major customers as comprising Saga Shipholding, MOL, Grieg Shipping Group, Gulf Offshore, Farstad Shipping, NYK, Nor Line and Evergreen Marine Corp. Since that initial installation in 2000, Optimarin have sold over 350 units, with 270 already installed. Optimarin in March announced a fleet agreement with UK shipowner and management company Carisbrook, which has the potential to cover retrofits across their entire fleet of 46 bulk and multi-purpose vessels.

Alfa Laval do not publish a customer list nor figures for the total number of their systems installed, but a PR from September 2015 discussed an Asian based shipping line placing an order for 33 systems. Another user has been quoted as MSC Containers.

Ballast water treatment retrofit work has been a major activity for Goltens Green Technologies (www.Goltens.com), a marine engineering contractor, who have already installed over 100 systems, from a current order book of 163. They supply systems from many manufacturers, listed as Optimarin, Bio-UV, Headway, Severn Trent DeNora, Alfa Laval, Auramarine, NK, Hyde Marine and Wärtsilä. Like Alfa Laval, Goltens are also involved in the supply and installation of other shipborne equipment required by and subject to environmental legislation, like SOx and NOx effluent control.

Whilst the retrofit market is important, the new build market is more significant, and obviously supplier attention is concentrated on the shipbuilders of South Korea.

© Nick Denbow, Processingtalk.info

@ProcessingTalk

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