Incorporating propane can help ports support economic growth while safeguarding our environment.

The loading and unloading of container ships at marine terminals requires a variety of cargo handling equipment, historically powered by diesel and gasoline. As the country seeks to reduce emissions and fight climate change, stevedores need reliable, efficient equipment to help them handle growing cargo volumes, as well as an energy source that doesn’t sacrifice environmental impact in the process.

While battery-powered EV equipment is answer for some applications, there are significant challenges to be overcome and it is important to consider other “Near Zero” emissions options with ultra-low NOx, including propane equipment.

Propane offers ultra-low NOx “Near-Zero” emissions for port applications
Recently passed legislation outlining funding availability for ports infrastructure will help ports across the country make the switch to “Near Zero” emissions technologies and enable our ports to be better stewards of the environment today and into the future.

While many port authorities are making the jump to electrification thinking this equipment is the best solution for reducing emissions, they are likely unaware that propane is cleaner, with a reduced carbon footprint than electricity when lifecycle emissions and nominal electricity production emissions are taken into consideration. Using propane produces 43% fewer greenhouse gas emissions than using an equivalent amount of electricity generated from the U.S. grid, according to data from the Propane Education & Research Council (PERC).

Switching to cleaner energy directly impacts the millions of people living near ports. Families can be exposed to air pollution output from diesel engines at ports and be at risk of developing asthma, heart disease, and other serious health problems. Equipment, vehicles, and marine vessels that burn diesel fuel are the primary source of combustion-related emissions at port facilities, according to the Environmental Protection Agency (EPA). Existing propane applications in ports include forklifts and small and medium-duty vehicles that are meeting today’s emissions regulations and sustainability goals.

Near-zero emission propane port tractors produce fewer emissions and cost approximately $200,000 less than electric models, meaning ports can afford to replace more of their diesel-powered fleet and achieve carbon reduction goals faster. Propane powered cargo handling equipment in development includes reach stackers, empty container handlers, and rubber-tired gantry cranes.

Plus, propane can support employees needing to operate equipment both indoors and out, whereas gasoline and diesel equipment aren’t fit for indoor use. Propane forklifts, for example, can safely operate in properly ventilated indoor spaces, thanks to the equipment’s low-emissions profile. Well-maintained propane forklifts meet or exceed nationwide indoor air quality standards, whereas gasoline and diesel can produce higher amounts of carbon monoxide and other harmful emissions.

The Infrastructure Investment and Jobs Act
A new $1.2 trillion law to improve America’s infrastructure creates an unprecedented opportunity for more fleets to take advantage of low emission energy sources, like propane. Propane is recognized in the Act as a clean alternative energy source and its inclusion is a major win for both ports and near-port communities, allowing more ports and dockworkers the opportunity to replace the use of diesel and gasoline on-site.

With funding available as of January 2022, the Infrastructure Investment and Jobs Act provides over $9 billion in funding for refueling infrastructure and clean vehicles and equipment—including $5 billion earmarked for ports. Propane-powered vehicles and refueling infrastructure are eligible for the following funding opportunities under the new law:

• $2.5 billion in grants for emissions reduction at port facilities
• $2.5 billion in grants for charging and refueling infrastructure

Ports interested in taking advantage of this funding can make the switch to propane knowing that it’s a go-to energy solution for their operation. Propane reliably powers on- and off-road vehicles including forklifts, light- and medium-duty vehicles, port and terminal tractors, shuttles, and small marine vessels.

Source: www.marinelink.com

Image: www.pexels.com

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But already there is disagreement about how it will work given the complexities of the shipping industry and how fast it can decarbonize.

Here is what is known so far about the process ahead.

Why should shipping be included in the ETS?
With about 90% of world trade transported by sea, shipping accounts for nearly 3% of the world’s CO2 emissions.

Environmental campaigners say efforts by the industry to cut emissions are too slow and that including shipping in the European Union Emissions Trading System (ETS) will speed up decarbonization.

What are the proposals at the moment?
Launched in 2005, the ETS compels manufacturers, power companies and airlines to buy permits to cover each tonne of carbon dioxide they emit.

Prices for permits in the scheme are nearing 100 euros ($114.44) a tonne, a level analysts say will spur further investment in low-carbon energy sources.

Last July the European Commission proposed adding shipping to the ETS gradually from 2023 until 2026 when shipowners would need to buy permits covering all their emissions inside the EU and 50% of their emissions from international voyages starting and ending in the EU.

The proposal must be negotiated by the European Parliament and EU countries before it becomes law.

However, the European Parliament wants shipping phased into the ETS earlier, by 2025.

It also wants the entity responsible for decisions affecting CO2 emissions such as buying the fuel to pay, meaning they would need to buy carbon permits. That could be the shipowner, or the commercial charterer or operator of a ship.

In contrast, the Commission has said shipowners should always bear CO2 costs.

Parliament wants the EU to consider extending the ETS to cover all shipping emissions to and from Europe, if regulatory efforts to curb emissions by the UN shipping agency, the International Maritime Organization (IMO), fall short.

If IMO measures cut emissions quickly enough to avert disastrous climate change, the EU could roll back its inclusion of shipping in the carbon market, Parliament’s draft proposal said.

The European Commission’s proposal faces months of discussions. The European Parliament and EU countries can ask for changes to the text and agree on a final version.

How does the shipping industry view the proposals?
There are divergent views within the commercial shipping industry, which is made up of different segments including container, oil tanker and dry bulk.

There is disagreement over who will pick up the bill and whether it falls to the shipowner or the party that hires a ship, known as the charterer.

With millions of dollars in fuel costs for every voyage, the stakes are high.

The Union of Greek Shipowners, representing dry bulk, and tanker association INTERTANKO welcomed the inclusion of charterers saying those responsible for and benefiting from transporting cargo are responsible for emissions.

In contrast, the World Shipping Council (WSC) – representing container lines – says shipowners should share responsibility for decarbonization and that the proposed definition of a responsible entity “would corrupt the ETS”.

“Ship greenhouse gas emissions result from the combination of design technology, fuel consumed, and operational practice,” said WSC Chief Executive John Butler.

“A regional EU ETS carbon price must apply to all parties who have a role in GHG reductions – shipowners and operators.”

Pressure is building on the regulatory side too.

The IMO’s goal is to reduce overall GHG emissions from ships by 50% from 2008 levels by 2050, below targets set by countries such as the United States which have pushed for the agency to adopt a zero emissions target by 2050.

The IMO has said concrete progress was made in 2021 to combat climate change including new regulations to improve the energy efficiency of the world fleet, adding that it would work this year on revising its GHG strategy and finalize it in 2023.

The IMO has said regulations should come through the agency and be global in contrast to the EU’s approach, adding that regional legislation would not favor the concerns of developing countries.

Source: www.marinelink.com

Image: www.pexels.com

The post Why Should Shipping Come Under the EU’s Carbon Trading System? appeared first on Cargo News Today.

With about 90% of world trade transported by sea, global shipping accounts for nearly 3% of the world’s CO2 emissions. So far, the industry has avoided the EU’s system of pollution charges.

Under proposals announced in July 2021, shipping would be added to the European Union Emissions Trading System (ETS) from 2023 phased over a three-year period, a move designed to spur emissions cuts from the sector.

A study by environmental group Transport & Environment (T&E) said that the proposals, which will be negotiated in Brussels this year, exclude ships below 5,000 GT (gross tonnage), which include small offshore supply ships that service the oil and gas industries. Fishing and military vessels would also be exempt.

T&E said the loopholes would mean that some 25.8 million tonnes of CO2 would not fall under the ETS, meaning that roughly 20% of the 130 million tonnes emitted annually by shipping in the bloc would be excluded.

Jacob Armstrong, sustainable shipping officer at T&E, said the proposals were “based on arbitrary loopholes” and would let “too many heavily polluting vessels off the hook”.

“The EU must rethink its shipping laws,” he said.

A European Commission official said the 5,000 GT threshold aimed “to minimize administrative burden for companies”, especially for small and medium-sized enterprises, “without jeopardizing the objective to cover the vast majority of greenhouse gas emissions from the sector”.

Peter Liese, the European Parliament’s lead negotiator on the ETS reforms, told Reuters that he was looking at the issue raised by T&E ahead of negotiations on the policy.

The Commission official said its proposal was aligned with the emissions covered by an existing regulation on the monitoring, reporting and verification (MRV) of emissions from maritime transport.

Ships above 5,000 GT accounted for around 55% of the vessels calling into EU ports and around 90% of the related emissions, the 2015 MRV regulation showed.

Ship owners will have to buy permits under the ETS when their ships pollute or face possible bans from EU ports.

Source: www.marinelink.com

Image: www.pexels.com

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