Marine engines are prone to emit GHGs. With respect to the Maritime Quarterly published by the Chinese Maritime Research Institute (CMRI), 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 80% of ships in our fleet is better than the industry average at D.
CO2 emissions of proprietary fleets are obtained from fuel oil/diesel consumption x relative coefficient. The 2018 CO2 emissions were 2.6% lower than that of 2017. 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, 75% (70% in 2017) of the 36 proprietary bulk carriers comply
with the IMO tier II NOx emissions standards for marine diesel engines. Estimating at 720-900 rpm (the average speed of diesel engines equipped on proprietary ships), the IMO NOx emissions limit reduces from 12.07g/kWh at tier I to 9.2 g/kWh at tier II (as shown below).
The use of the LSFO (sulfur below 0.5%) or the waste gas purification system is mandatory for marine transport worldwide as of January 1, 2020. 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). In addition, we have taken forward-looking actions to install the waste gas purification system on some Capesize
ships and develop LNG ships (please visit https://bit.ly/2CJZFuW for more about the Green Corridor Project) with partners before the 2020 IMO fuel sulfur regulation taking place, in order to control SOx emissions.