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Traditional time charters are expected to be most impacted however this does not mean that voyage charters will not be significantly affected. COAs and bareboat charters may also be impacted.


BIMCO has already published a clause which addresses compliance with EEXI and allocates responsibility and costs for implementing modifications and is suitable for both existing and future time charter parties. This clause, the EEXI Transition Clause For Time Charter


Parties 2021, may also be used to address other energy saving technical measures that may be implemented to achieve compliance. However, such use of other energy saving measures is subject to agreement between the parties. BIMCO is also currently working on charterparty clauses addressing the EU Emissions Trading Scheme and carbon intensity indicator (CII) regulations.


As the number of LNG fuelled ships is growing BIMCO has also drafted three LNG clauses covering matters


Energy efficiency technologies (EETs) continued


Hydrogen fuel cells


Hydrogen fuel cells work in a similar manner to an electric battery, i.e., they convert chemical energy into electrical energy using the movement of charged hydrogen ions across an electrolyte membrane to generate current. There they recombine with oxygen to produce water – a fuel cell’s only emission, alongside hot air. They do not deplete or need charging and have a higher power density and lower weight than batteries.


However, they are expensive and any leakage, if not handled properly, may cause hydrogen accumulation and explosion. Therefore, the hydrogen storage place and fuel cell cabin require appropriate measures to ensure safe integrity levels.


Shore to ship power (cold ironing)


This is the process of providing shoreside electrical power to a ship at berth while its main and auxiliary engines are turned off. When a ship is in port, auxiliary engines (generators) are commonly used to provide power for cargo operations, emergency equipment, cooling, heating, lighting as well as for domestic use. By simply turning off generators and plugging in to an electrical supply point in the ports, fuel consumption saving and subsequently reduction of noise and air emission may be achieved.


Smaller vessels with low power requirements can make use of normal grid voltage and frequency. However, for larger vessels with high power requirements only limited ports may be able to provide cold ironing.


Waste heat recovery systems


A waste-heat recovery system (WHRS) recovers the thermal energy from the exhaust gas and converts it into electrical energy, while the residual heat can further be used for ship services (such as hot water and steam). The system may consist of an exhaust gas boiler (or combined with oil fired boiler), a power turbine and/or a steam turbine with alternator. Redesigning the ship layout can efficiently accommodate the boilers on the ship. There is potential for a reduction in main engine fuel consumption estimated at 3% to 8% which will contribute to overall emissions reductions.


Waste heat recovery is well proven onboard ships, but the potential is variable depending on the size, numbers, usage and efficiency of the engines on board. Furthermore, these measures are usually not relevant for retrofitting, due to large costs and efforts related to redesign, steel work, extra weight, etc.


Carbon capture and storage


This technology is at the very early development stage for ships. It involves the isolation and capturing of carbon emissions from the ship’s exhaust and preventing them from entering the atmosphere. However, suitable cryogenic storage tanks are needed to collect liquid cargo until the ship reaches port. Thereafter, the carbon can either be stored permanently underground in geological formations or utilised in carbon-consuming industries.


Solar panels


Solar panels are devices that convert light from the sun into electricity. Solar panels on ships are not common at present, but some installations have been installed on certain types of ships including car carriers, bulkers, passenger ferries and smaller domestic vessels by using marine grade solar panels. This solution may not suit container vessels because of the space required.


The technology is in its infancy and is expected to become less expensive over time, but the panels are unlikely to become much more efficient or less space consuming.


Wind assisted propulsion systems


Wind-assisted propulsion systems (e.g., sail, kite, fixed-wing, Flettner rotors) utilise an old concept with a modern edge. The IMO has recognized this technology and included the effects of wind propulsion in MEPC.1/Circ. 815. However, it is considered as an auxiliary propulsion system that augments the primary propulsion system. In fact, most wind-assisted propulsion systems require a secondary source of energy to be operated. For example, Flettner rotors need to be started up by motors to develop their aerodynamic thrust forces.


Clearly, the availability of wind is the most relevant factor for these systems to work well. Operational costs (maintenance, spare parts, replacement of components, etc.) need to be considered in addition to the fuel saving potential.


The Report • September 2022 • Issue 101 | 65


related to LNG fuel quality, fuel delivery/redelivery, gas- freeing and cooling down and an operational clause. The following clauses have now been published:


a) LNG Bunker Operational Clause for Time Charter Parties


b) LNG Fuel Delivery Clause For Time Charter Parties


c) LNG Fuel Gas freeing and Cool down Clause


d) LNG Fuel Quality Clause


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