Environmentally Acceptable Lubricants: safe or a safety hazard16 July 2020 • 09:00-09:45 BST

Part ofMarine Lubricants Webinar Week14-16 July 2020

Presentation documents:Page 2: Kevin Duncan, Croda Europe Page 7: Patrick Galda, PANOLIN INTERNATIONALPage 14: Rob Harrison, Shell Marine

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1

ENERGY TECHNOLOGIES

WHAT MAKES AN EAL STERN TUBE LUBRICANT?

NOW!

Readily biodegradable

Minimum eco-toxicity

Non-bioaccumulating

Preferred bio-sourced

• Regulatory Drivers• Corporate responsibility

2

ENERGY TECHNOLOGIES

“ARE ALL EALS THE SAME?”

HETG HEES HEPG HEPR

* Most commonly used. Huge variation

ISO CLASSIFICATIONS

Hydraulic Environmental Triglycerides

Hydraulic Environmental

Ester oil Synthetic*

Polyalkylene glycol Base

(i.e. polyglycol)

Hydraulic Environmental

PAO and Related product

3

ENERGY TECHNOLOGIES

ISO Class Oil Type Oxidation time (mins)

HETG Vegetable Esters < 30

HEES Oleochemical Unsaturated Esters <30

HEES Oleochemical Saturated Esters > 180

HEES Petrochemical Esters > 200

HEPG Polyalkylene glycols <30

HEPR PAO / ‘New’ PAO > 120

OXIDATION STABILITYUn-additivated

• Rapidoxy – static oxidation tester (ASTM 7545)• Sample ~ 5mls• Pressure vessel charged with O2 at 700 kPa• Temperature maintained at 140°C• Test completed when O2 pressure drops by 10%

4

ENERGY TECHNOLOGIES

0

2

4

6

8

10

12

14

16

18

20

0 2 4 6 8 10 12 14 16

Acid

Val

ue (m

gKO

H/g)

Days

HETG

HEES (unsat)

HEES (Polyol)

HEES (Sat)

HEES HV Ester *

HEPG

HEPR

HYDROLYTIC STABILITYIncludes commercial additive pack, Test method (RR1006)

Triglycerides

HV Non-Biodegradable; Non-bioaccumulating ester

Polyol EstersPAGs, PAOsDiesters

5

ENERGY TECHNOLOGIES

CONCLUSIONS & TALKING POINTS

Film FormingBehaviour

EALs are a viable and effective option

for stern-tubes

Not all EALs are the same!

HETG, HEPG, HEPR, HEES?

If HEES:• Mono, Di or Polyol?• Complex or Polymer?• Bio or Petro based?

BUT THEREFORE

Careful oil selection is paramount

HydrolyticStability

Oxidation

DESIRED EFFECTS

MINIMISE RISK OF STERN TUBE FAILURE

REDUCE OIL DEGREDATION

ELIMINATE ENGINEERING

ISSUES

PANOLIN Performance Lubricants

Environmentally Acceptable Lubricants: safe or a safety hazard ?

Statement PANOLIN:It is NOT appropriate to categorize

“all EALs as the same”

– they are not !

PANOLIN Performance Lubricants

5 base oil types generally accepted in EALs…. Many more base oil blends developed as alternatives to the bench mark:

Mineral oil

Lubricant base oil Positive CharacteristicsMineral oil [ reference ] Low price, world wide availability

Triglyceride (Vegetable oil) Fully renewable resource

Polyglycol Broad operating temperature range

Synthetic Hydrocarbon (PAO) Hydrolytic stability

Synthetic Ester (unsaturated) Lower price than saturated ester

Synthetic Ester (saturated) Good temperature/oxidation stability, proven base for long-life lubricants

Causes……• High temperature:

Oxidation – varnish deposits in systemPolymerization – increase in viscosity

• Low temperature:Crystallization – additive solubility

• Shear instability:Decrease in viscosity – film thickness

• Water ingress:Hydrolysis – base oil decomposingEmulsification - corrosion

• Incompatibility issues: – seals, paints, mixing of oils

EAL failures - oil deterioration

Cases of EALs failing

EAL base fluid type EffectsUnsaturated Ester Polymerizing, sludge (sticky, resin-like)Poly-alpha-olefin Viscosity loss (shear instable), sludge,

equipment wear, seal damage Vegetable Oxidation, thickening,

seal damage: hardening, crackingPolyglycol System corrosion, smelling Emulsifying lubricants Permanent mix with water, corrosion

bacterial growth decomposing

All failures end up with: - damage of the equipment- high drydocking costs- loss of vessel operational availability

and ultimately: - CLIENT DISSATISFACTIONPANOLIN marine products:

Not one reported case of PANOLIN stern tube lubricant failing !

Design changes • Slow steaming (lower shaft rpm) • Heavier propeller• Single aft stern tube bearing• Resin bonding of stern tube bearings – reduction of heat sink • AFT seal: small oil volume - overworked oil

Transient Conditions –• New Building sea trials – new shaft : bearing roughness, hard turns• Cold starts – High Viscosity Index oil = low cold oil viscosity• Heavy seas – shaft impacts• Un-laden vessel conditions - propeller slapping

DNV GL study: effect of reduction in viscosity at higher bearing pressure

Cases of EALs failing

The void space seal (or Air Seal):• A very environmentally ‘friendly’ sealing system

But….• Requires trained personnel to operate/monitor it• Potential damage (e.g. wire wrapping around propeller) oil leakage,

in case of mineral oil – violation of VIDA/VGP2013• EPA statement (April 22, 2015):

“EPA cannot provide any type approval or "clean" endorsement that an alternative seal system [Void Space seal]would eliminate the discharge”

Is the void space seal an option?

PANOLIN Performance Lubricants

5 base oil types generally accepted in EALs as alternatives to mineral oil

EAL failures often linked to weak performance of base oils EAL failures are not linked to base fluid and film thickness, only;

good lubricant performance:optimized combination of base fluid and additives

PANOLIN Saturated Synthetic Esters exhibit performance characteristics closer to those of mineral oil than other base oils

– including Pressure-Viscosity Relationship

It is NOT appropriate to categorize “all EALs as the same” – they are not!

Your Vessel lubricants are assetsSelect them carefully - Look after them !

Copyright of Shell International B.V. CO NFIDENTIAL 1

Environmentally Acceptable LubricantsSafe or a safety hazard?

Rob HarrisonTechnical Services ManagerShell Marine

July 2020

Copyright of Shell International B.V. CO NFIDENTIAL

Cautionary Note

The compa nies in which Roya l Dutch Shell plc directly a nd indirectly owns investments a re sepa ra te lega l entities. In this presenta tion “Shell”, “Shell Group” a nd “Roya l Dutch Shell” a re sometimes used for convenience where re ferences a re ma de to Roya l Dutch Shell plc a nd its subsidia ries in genera l. Likewise , the words “we”, “us” a nd “our” a re a lso used to re fer to Roya l Dutch Shell plc a nd its subsidia ries in genera l or to those who work for them. These te rms a re a lso used where no useful purpose is se rved by identifying the pa rticula r entity or entities. ‘‘Subsidia ries’’, “Shell subsidia ries” a nd “Shell compa nies” a s used in this presenta tion re fer to entities over which Roya l Dutch Shell plc e ither directly or indirectly ha s control. Entities a nd unincorpora ted a rra ngements over which Shell ha s joint control a re genera lly re ferred to a s “joint ventures” a nd “joint opera tions”, respective ly. Entities over which Shell ha s significa nt influence but ne ither control nor joint control a re re ferred to a s “a ssocia tes”. The te rm “Shell inte rest” is used for convenience to indica te the direct a nd/ or indirect ownership inte rest he ld by Shell in a n entity or unincorpora ted joint a rra ngement, a fte r exclusion of a ll third-pa rty inte rest.

This presenta tion conta ins forwa rd-looking sta tements (within the mea ning of the U.S. Priva te Securities Litiga tion Reform Act of 1995) concerning the fina ncia l condition, results of opera tions a nd businesses of Roya l Dutch Shell. All sta tements other tha n sta tements of historica l fa ct a re , or ma y be deemed to be , forwa rd-looking sta tements. Forwa rd-looking sta tements a re sta tements of future expecta tions tha t a re ba sed on ma na gement’s current expecta tions a nd a ssumptions a nd involve known a nd unknown risks a nd uncerta inties tha t could ca use a ctua l results, performa nce or events to diffe r ma teria lly from those expressed or implied in these sta tements. Forwa rd-looking sta tements include , a mong other things, sta tements concerning the potentia l exposure of Roya l Dutch Shell to ma rket risks a nd sta tements expressing ma na gement’s expecta tions, be lie fs, estima tes, foreca sts, projections a nd a ssumptions. These forwa rd-looking sta tements a re identified by the ir use of te rms a nd phra ses such a s “a im”, “a mbition”, ‘‘a nticipa te’’, ‘‘be lieve’’, ‘‘could’’, ‘‘estima te’’, ‘‘expect’’, ‘‘goa ls’’, ‘‘intend’’, ‘‘ma y’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘pla n’’, ‘‘proba bly’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘ta rge t’’, ‘‘will’’ a nd simila r te rms a nd phra ses. There a re a number of fa ctors tha t could a ffect the future opera tions of Roya l Dutch Shell a nd could ca use those results to diffe r ma teria lly from those expressed in the forwa rd-looking sta tements included in this presenta tion, including (without limita tion): (a ) price fluctua tions in crude oil a nd na tura l ga s; (b) cha nges in dema nd for Shell’s products; (c) currency fluctua tions; (d) drilling a nd production results; (e ) reserves estima tes; (f) loss of ma rke t sha re a nd industry competition; (g) environmenta l a nd physica l risks; (h) risks a ssocia ted with the identifica tion of suita ble potentia l a cquisition properties a nd ta rge ts, a nd successful negotia tion a nd comple tion of such tra nsa ctions; (i) the risk of doing business in developing countries a nd countries subject to inte rna tiona l sa nctions; (j) legisla tive , fisca l a nd regula tory developments including regula tory mea sures a ddressing clima te cha nge; (k) economic a nd fina ncia l ma rke t conditions in va rious countries a nd regions; (l) politica l risks, including the risks of expropria tion a nd renegotia tion of the te rms of contra cts with governmenta l entities, de la ys or a dva ncements in the a pprova l of projects a nd de la ys in the re imbursement for sha red costs; a nd (m) cha nges in tra ding conditions. No a ssura nce is provided tha t future dividend pa yments will ma tch or exceed previous dividend pa yments. All forwa rd-looking sta tements conta ined in this presenta tion a re expressly qua lified in the ir entire ty by the ca utiona ry sta tements conta ined or re ferred to in this section. Rea ders should not pla ce undue re lia nce on forwa rd-looking sta tements. Additiona l risk fa ctors tha t ma y a ffect future results a re conta ined in Roya l Dutch Shell’s Form 20 -F for the yea r ended December 31, 20 18 (a va ila ble a t www.shell.com/ investor a nd www.sec.gov). These risk fa ctors a lso expressly qua lify a ll forwa rd-looking sta tements conta ined in this presenta tion a nd should be considered by the rea der. Ea ch forwa rd-looking sta tement spea ks only a s of the da te of this presenta tion, 16 July 20 20 . Neither Roya l Dutch Shell plc nor a ny of its subsidia ries underta ke a ny obliga tion to publicly upda te or revise a ny forwa rd-looking sta tement a s a result of new informa tion, future events or other informa tion. In light of these risks, results could diffe r ma teria lly from those sta ted, implied or inferred from the forwa rd-looking sta tements conta ined in this presenta tion.

We ma y ha ve used certa in te rms, such a s resources, in this presenta tion tha t the United Sta tes Securities a nd Excha nge Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. investors a re urged to consider close ly the disclosure in our Form 20 -F, File No 1-3257 5 , a va ila ble on the SEC website www.sec.gov.

Copyright of Shell International B.V. CO NFIDENTIAL

OIL -LUBRICATED STERN TUBE FAILURES: Why they happen & what you can do.

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July 20 20 3

Stribeck curve illustra tes tha t rota tiona l speed is required to crea te a lubrica nt film

Viscosity pla ys a la rge pa rt of the oil film thickness in conjunction with the pressure/ viscosity coefficient

Bea ring design, clea ra nces a nd ma teria ls a long with the vessel design ca n a ll influence the life-time of a stern tube

Copyright of Shell International B.V. CO NFIDENTIAL

WHY TRANSIENT CONDITIONS NEED TO BE FACTORED IN

July 2020 4

The harshest stern tube conditions are seen with;− ha rd ma noeuvring a t high ship speeds− during mooring tria ls− opera ting with a pa rtly submerged propeller

All these conditions involve hydrodyna mic lubrica tion but very close to mixed lubrica tion

During norma l vessel opera tion these conditions a re unlikely

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IS THE VOID SPACE SEAL OPTION A VIABLE ALTERNATIVE?

July 2020 5

The air gap causes an “oil – air - sea” configuration hence no “oil – sea” interface

Air gap stern tube bearings still require a lubricant but are exempt from using EAL’s

Alternatives are water lubricated stern tube bearings

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WHAT MAKES FOR AN ACCEPTABLE STERN TUBE LUBRICANT?

Ultimately the stern tube lubricant must last a 5 year Dry Dock period.

Ability to remove water

Resistance to hydrolysis

Range of viscosities to suit various OEM requirements

July 2020 6

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IS IT FAIR TO CHARACTERISE ALL EALs AS THE SAME?

July 2020 7

NO

There are many types of EAL products besides it being an oil or a grease.

Non-emulsifying vs. emulsifying hence water removal or not is one example.

Base oil used;− Vegeta ble oil, Ester, Polya lkylene Glycol – a ll lubrica nts will biodegra de

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WHAT RECENT TESTING ON THERMAL STABILITY, OXIDATION AND EFFECT OF WATER, WILL REVEAL ABOUT THE PERFORMANCES OF DIFFERENT EALs

July 2020 8

Thermal stability and oxidation occur a higher temperatures− Sa tura ted a nd un-sa tura ted esters will

perform differently

The a bility to remove wa ter will extend the lubrica nt life by;− reducing hydrolysis− reducing a cid forma tion− extend sea l life− ma inta in viscosity− prevent equipment

corrosion

Copyright of Shell International B.V. CO NFIDENTIAL July 20 20 9