Emissions reduction is another way of GHG control. Marine engines are prone to emit GHGs. CO2 is main type of GHG emitted by marine transport, accounting for 96%, while NOx and SOx are the secondary types. We disclose our GHG emission intensity based on the grading of third-party ship assessment organization Right-Ship. According to the RightShip, the relative performance of a ship is graded from A to G, where grade A represents is the highest (A+ means better than A) performance with the least emissions, while grade G the lowest performance with the highest impacts on the environment. Currently, over 86% of ships in our fleet is better than the industry average at D, advancing by 6% compared to 2018.
CO2 emissions of proprietary fleets are obtained from fuel oil/diesel consumption x relative coefficient. The 2019 CO2 emissions were 2.6% lower than that of 2018. Our goal is to reduce CO2 emissions by 30% after 2025.
In marine transport, NOx is mainly produced by fuel burning in the main engines and generators. With respect to IMO, ships shall restrict NOx emissions of ships in three tiers to effectively reduce NOx emissions. With continuous ship renewal and new marine diesel machines, 80% (75% in 2018) of the 35 proprietary bulk carriers comply with the IMO tier II NOx emissions standards for marine diesel engines. This year, when calculating the fleet’s NOx emissions based on the emissions calculation model of fuel consumption, we found that the average unit transportation emissions rate of Cement carriers is higher than that of other types of ships. This is because the cement carrier still uses the tier 1 diesel engine and has a lower DWT.
Since January 1, 2020, the global marine industry requests the use of <0.5% LSFO or the installation of exhaust gas cleaning systems (scrubbers). At present, our ships will change HFO into LSFO with sulfur below 0.1% (verified collectively by Veritas Petroleum Services, VPS) one hour before entering an Emission Control Area (ECA). This year, when calculating the fleet’s SO2 emissions (SOx contains about 90% of SO2) based on the emissions calculation model of fuel consumption, we found that the SO2 volume correlates with the sulfur content in fuel oil and maximization of ships can reduce SO2 emissions. In addition, in response to the IMO 2020 under the MARPOL, apart from installing the scrubber on three ships in 2019 and scheduling scrubber installation on four more ships in 2020, we have used <0.5% LSFO on all other ships. In the future, we will choose the optimal strategy based on the fuel market condition and the direction of MARPOL amendments. Furthermore, we will also develop LNG ships (please visit here for more about the Green Corridor Project) with partners in order to control SOx emissions.