European law regarding the sulphur content of marine fuels is to be brought into line with the stricter limits set down by the International Maritime Organisation.
So, what are the limits and what does this mean for the cruise industry?
Under the revised rules, the global sulphur cap is to be reduced to 3.5%, effective from 1 January 2012; and then progressively to 0.5% by 1 January 2020. The sulphur cap in specially designated Emission Control Areas was reduced from to 1% on 1 July 2010 and will be further reduced to 0.1% effective from 1 January 2015.
The changes have been met with criticism from within the cruise community amid concerns over the practicalities of compliance. Low-sulphur fuel is more expensive than regular marine fuel and switching will mean a huge rise in costs for cruise operators. In addition, there are concerns that the demand for low-sulphur fuel will be unpredictable and that the oil refining industry may be unable to meet any sharp increase in demand.
What should operators be thinking about?
There are no easy answers and the most beneficial and compliant solution may come down to financial forecasting. However, three main options for operators include:
- installing new low-sulphur emission engines or modifying existing ones;
- investing in scrubbing technology; and
- switching to Liquefied Natural Gas which is widely considered to be a clean and sustainable choice of fuel and is already in use in other areas of the shipping industry.
All of the above options are costly, which in challenging financial times may be difficult to justify. Consequently some operators are taking a wider 'energy-efficient design' approach believing exhaust emissions are best controlled through the optimisation of ship design and operation as a whole. As well as looking at fuel and propulsion, these operators are also looking for efficiencies in other areas such as hull design, scheduling and the general operation of the ship. This includes everything from reducing speed between ports to implementing rigorous recycling programmes, installing energy efficient appliances and even tinting windows to keep the ship cooler thereby reducing the load on air conditioning.
In a sea of uncertainty, one thing is clear; change is coming and it is coming at a price. Whilst plenty of small measures can undoubtedly make a big difference; such measures can only go so far. Ultimately, cruise operators are in the entertainment business and customers are there to be spoilt.
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