Bunker Fuel Quality Management Today & Tomorrow

VPS – NEP&I: Fuel Quality & 2020 (Oct 2018)

Bunker Fuel Quality Management

Today & Tomorrow

Ian Workman

Account Manager

VPS Testing & Inspection Inc


• Over the past decade evolving Environmental Legislation has had more

impact on fuel quality than any other potential cause or effect.

• Decreasing Sulphur Limits have resulted in “Spikes” of Off-specification fuel

Immediately Before & Immediately After every Legislative Change:

• Decreasing sulphur limits have led to

• The development of new fuel types & grades, new lubricant oils

• Increased blending, greater use of cutter stocks, diluents & additives

• Greater awareness of the need for fuel management and monitoring of fuel

quality,

• Causing increasing-rate of revisions of the Marine Fuel Quality Std (ISO8217)

•May-06

•1.50%

Baltic ECA

•Nov-07

•1.50%

North Sea ECA

•Jul-10

•1.00%ECA Drop

Jan-12

3.50%

Global Cap Drop

Aug-12

1.00%

American ECA

Jan-15

0.10%ECA Drop

Jan-20

0.50%

Global Cap Drop


The Financial Cost of Environmental Change?

• The International Transport Forum at the OECD

stated:

• “The TOTAL increase in container shipping costs

due to the 2015 requirements amounted to USD

500 million.”

• “The 2020 requirements could add annual total

costs up to USD 30 billion for the container

shipping industry.”

• Shipping line OOCL has joined other major

container shipping companies in announcing plans

for a bunker recovery charge as a result of the

2020 sulfur cap which is estimated to cost the

shipping industry $60 billion each year.

• Forecasters are stating the price difference

between Distillate and HFO could rise to $400/mt

in 2020.

• A heavy increase in OPEX for anyone choosing the

Distillate Fuel option!!


Industry Fuel Forecasters:

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4.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

million b

arr

els

/day

Global Marine Fuel Consumption

HFO Distillate

3 million barrel/day switch from HFO to Distillate in 2020

Marine accounted for 45% of global demand for HFO in 2015 & 3% of global distillate demand.

Marine will account for less than 25% of global HFO demand during 2020 & 10% of distillate

demand.


Global Fuel Quality

• Currently 15% of all residual fuels and

9% of all distillates fuels tested exceed

the ISO8217 test specification by at

least one parameter.

• In 2017 VPS released 58 “Bunker Alerts”

of which 36 (62%) were related to

Residual fuel & 22(38%) related to

Distillate fuel quality.

• Which was a 70% increase over 2016

Distillate Bunker Alerts and 30%

increase over 2016 Residual Bunker

Alerts.

• In 2017: There were more fuel issues in

Europe & Americas than AMEA.

• H1-2018: 33 Bunker Alerts

• 18 x Residual (55%), 15 x Distillate (45%)

• 14 x Americas, 13 x Europe, 6 x AMEA

• Key Parameters, Contaminants, Cat-Fines, FP

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No.

of

Ale

rts

VPS Bunker Alerts by Test Parameter - 2017

Residual Distillate

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Residual Distillate Residual Distillate Residual Distillate Residual Distillate

Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4

No.

of

ale

rts

VPS Bunker Alert Volumes by Region - 2017

Americas Europe Middle East Asia


Fuel Choice Decisions?

• The choice of available marine fuels is

now greater than ever and will only

increase:

• ISO8217:2017 – Distillates

• DMA, DFA, DMB, DFB, DMX, DMZ, DFZ

• ISO8217:2017 – Residuals

• RMA10, RMB30, RMD80, RME180, RMG180, RMG380,

RMG500, RMG700, RMK380, RMK500, RMK700

• Other Fuels:

• ULSFOs – Hybrids eg HDME50

• LNG – Methane, Ethane, Propane

• Methanol, Ethanol

• 100% Bio-fuel

• Other Power Sources:

• Solar

• Wind

• Fuel Cells


Residual Fuels

• At present Residual fuels remain the largest volume fuel products used on board. Therefore

generates the largest number of technical issues on ships

• Following the demise of 1.0% m/m Sulphur residual fuels(end of 2014), HFO quality improved

due to reduced blending. But since 2016 there has been a continuing rise in quality issues.

• From 2020, HFO demand will dramatically decrease, but to what level will be influenced by

the degree of Residual/Distillate Blending & take up of “scrubber” technology.

• Whatever the level, the current fuel management issues will still be relevant

• Therefore all ISO8217 Parameters will still require monitoring.

• Currently 15% of Residual Fuels tested exceed the specification of at least one ISO8217 test

parameter

• Fuels may achieve the ISO8217 Specifications, but can still cause operational problems, due

to the presence of materials not specifically covered by ISO8217.

• VPS are pioneers and leaders of additional testing services from both a pre & post-burn

perspective.

• Such additional testing and operational advice, provides ship owners and operators with more

detailed information regarding their fuel allowing them to take the necessary fuel

management actions required to protect their assets.


Forensic Detection of Fuel Contaminants

• The increase in Number & Types of Fuel in 2020 will see a wider

use of Diluents, Cutter Stocks, Additives, Blending.

• All the above can alter the fuels chemistry, and have a potential

destabilising effect, or damaging side-effects.

• Original Fuel source and refining also influences fuel quality:

• Eg Crude type and region, Shale Oil, Tall Oil

• There will be an increase in fuel quality issues.

• Estimated Average Cost of each fuel Mgmt issue = $300K

• Laboratories are now using many high-end analytical techniques

and methods to identify the cause of fuel problems:

• Gas Chromatography- Mass Spectrometry (GCMS): Chemical Screening,

Extended Head-Space, Acid Extraction, Vacuum distillation, DI.

• Fourier Transform Infrared – (FTIR), Solids contamination, Polymers

• Microscopy – Solids and polymer identification

• Separability No., Reserve Stability No. (RSN) – Compliment TSP/TSA/TSE

• CHNO Analysis (Carbon, Hydrogen, Nitrogen, Oxygen)

• Steel Corrosion


Where Do Contaminants Come From?

• Fuel Blending• Cutter Stocks to achieve Sulphur

specifications

• Shale Oil

• FAME

• Bio-Materials• Automotive fuels

• Heating Fuels

• FAME

• Bio-Waste

• Cross-contamination• Fuel Supply Chain

• Adulteration• Waste Chemical Disposal


Potential Fuel ContaminantsChemical Group Comment

CHLORINATED

HYDROCARBONS

Chlorinated hydrocarbons do not originate from any refinery processes and are therefore an indication

that the fuel is possibly contaminated. Based on VPS experience, these contaminants may result in

damages to fuel injection equipment.

ALDEHYDEAldehydes do not originate from normal petroleum refining and are therefore an indication that the

fuel is possibly contaminated. Based on VPS experience, these contaminants may result in damages to

fuel injection equipment.

ALCOHOLAlcohol does not originate from normal petroleum refining. Based on VPS experience, these

contaminants may result in increased sludge formation and possibly laquering and/or deposit

formation.

STYRENESStyrenes do not originate from normal petroleum refining but are known to be present in some blend

stocks for fuel oils. Based on VPS experience, these contaminants may result in increased sludge

formation and possibly laquering and/or deposit formation.

TERPENESTerpenes do not originate from any refinery processes and are therefore an indication that the fuel is

possibly contaminated. Based on VPS experience, these contaminants may result in increased sludge

formation and /or damages to fuel injection equipment.

CYCLOPENTADIENEDCPD does not originate from normal petroleum refining but are known to be present in some blend

stocks for fuel oils. Based on VPS experience, these contaminants may result in increased sludge

formation and possibly laquering and/or deposit formation.

PHENOLSPhenols do not originate from normal petroleum refining. Based on VPS experience, these

contaminants

may result in increased sludge formation and /or damages to fuel injection equipment.

KETONESKetones do not originate from any refinery processes and are therefore an indication that the

fuel is possibly contaminated. Based on VPS experience, these contaminants may result in

damages to fuel injection equipment.


Quality Issues - HOUSTON

• Jan-May of this year saw over 100 vessels suffered fuel pump failure issues from

fuel supplied in Houston

• VPS investigated fuel-pump failures for 50 vessels on our testing programme!!

• VPS Bunker Alerts were released, 26th April, 29th May, 25th June.

• The contaminated fuel is not single supplier specific.

• 10 suppliers

• 20 Delivery Barges

• Indications suggest Upstream somewhere between Refinery but before final supplier?

• VPS: the first testing company to identify the cause.

• 4-Cumyl Phenol found in over 40 samples from Houston bunkered fuel.

Concentration range 300-1000ppm.

• It was detected by VPS “In-house” proprietary method utilising Acid Extraction/Gas

Chromatography Mass Spectrometry.

• Findings were Verified in two VPS laboratories (Singapore & Fujairah)

• Verified 4-cumyl phenol only seen in Houston fuels.

• 4-cumyl phenol is used to manufacture resins and emulsifiers due to its “sticky”

properties.

• Phenolic compounds have been found in fuel since 2007. All resulted in sticking fuel

pumps.


Other Quality Issues

• Gulf of Mexico

• Corpus Christi

• Sludging of Fuel/filter blocking

• 4 vessels with Petroleum Coke contamination

• Panama

• Poly-methacrylate found in fuel via solids contamination analysis, causing

sticking fuel pumps.

• Plus 20 vessels affected by Houston-type contaminants

• Singapore

• 10 vessels affected by Houston-type contaminants

• Are these cases a sign of quality issues to come before and after 2020?


ME HP Pump Suction DG NO3, UNIT NO2

ME HP PUMP PISTON


Distillate Fuel Quality

• Fuel Change-over issues• Low viscosity issues • Hydro-desulphurisation Decreased Lubricity Reduced Stability• Wax Precipitation due to Cold-flow properties• Low Flash Point • FAME• Microbial contamination• Distillate quality problems are becoming much

more common with increased demand.

The perception has been, Distillates are

“Problem Free”???

Not All Distillates are Low in Sulphur and require some

degree of treatment.

Currently 9% of all distillates fuels tested exceed the

ISO8217 test specification for at least one parameter.


ULSFO/Hybrids

• The principle purpose of these new grades was to provide a fuel that met the

ECA sulfur limit but had a relatively high viscosity, overcoming the potential

risks associated with very low viscosity gas oils

• A significant characteristic of some of these new ECA fuels is that the cold

flow properties, stability and compatibility, could present a challenge on

some ships.

• Like New ECA fuels these could be Blended products (ULS distillates + LS

residues)

• Hydro treated vacuum gas oils

• Hydrocracker fractionator bottoms

• Blending residual components with proportions of distillates could result in

Reserve Stability issues and sludging.

• Possible Operational Issues: Avoid mixing with any other fuel in storage tanks /

Use empty tanks or ensure tanks are drained as much as possible before loading a new

fuel/ Ensure heating requirements are feasible for the vessel / New fuel should not be

used before analysis results are known.


Testing Recommendations

• Residual Fuels

• ISO8217:2010/12,17

• Chemical Screening (GCMS-HS)

• Separability Number (RSN)

• TSA/TSE

• Asphaltenes

• Fuel System Checks

• Distillate Fuels

• ISO8217:2010/12,17

• Cold-Flow (CP, CFPP)

• Lubricity (Sulphur<500ppm)

• FTIR – Bio/FAME

• Emergency Equipment Testing

• VLSFO’s/ULSFO’s

• Since 2015 tested to RMD80 spec.

• Depends upon constituent make-up of fuel.

• Can be a mix of the Residual & Distillate tests

• Compatibility & stability always a concern.

• No ISO8217 Specification at present


ISO-8217:2017 Edition

5.2 The fuel shall be free from any material at a concentration that causes the

fuel to be unacceptable for use in accordance with Clause 1 (i.e. material not at

a concentration that is harmful to personnel, jeopardizes the safety of the ship,

or adversely affects the performance of the machinery).

Your shield against chemically contaminated

fuels.

Review Your Purchasing Contract Terms and

Language


2020-Lubricant Oil Considerations• Two fluids go into an engine: Fuel & Lubricating oil

• Therefore its important to monitor the quality and condition of both to avoid “Damage”

• S in fuel can form SO2 & SO3 during combustion. H2O within the scavenging air and

the combustion process reacts to form H2SO4.

• Important to monitor/control any damaging effects of acidity and alkalinity.

• Most modern 2-stroke engines designed for operation on HSFO.

• Cylinder oil used must have a high enough base number to neutralize the acidity.

• If the acid is not neutralised, corrosion of iron will occur and this is the primary cause of corrosive

wear for liners and piston rings.

• Conversely using ULSFO produces less H2SO4 during the combustion process.

• If BN of cylinder oil is too high, the oil could be too alkaline

• then compounds can be formed which may also cause damage.

• Alkaline deposits on piston crowns can damage oil film between the piston ring and

liner, leading to scuffing and seizures. Also deposits form between the piston rings &

pistons, preventing free movement of piston rings and increased liner wear.


Summary• So…Heading towards 2020 & Beyond…

• Fuel Management Challenges will increase and become more complex.

• We are already seeing a major rise in fuel quality issues, which will only continue.

• Wider range/choice of fuels available with many technical considerations.

• The choice of fuel will have many financial implications and considerations.

• Key factors will be Availability & Price, Supply & Demand

• Lubricating Oil choice will also affect operations.

• Fuel and Lubricant quality & condition should be monitored in parallel.

• Every fuel type has its pro’s & con’s

• Work with a Fuel & Oil Management Partner to effectively measure and monitor

fuel & lube quality, to improve operational efficiency, protect your assets, comply

with legislation and ultimately save money!!


YOUR FUEL MANAGEMENT PARTNER

Thank you for your attention!

+1 914 705 3762

[email protected]

www.v-p-s.com

Questions?? Please drop me an e-mail

http://www.v-p-s.com/

Bunker Fuel Quality Management Today & Tomorrow

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