SEAaT Sulphur Emissions Offsetting Pilot Project

SEAaT has co-ordinated a Sulphur Emissions Offsetting Pilot Project, exploring the application of emissions trading for reducing sulphur emissions from shipping activities.

By exploring the simplest form of emissions trading, offsetting, SEAaT hopes to learn and inform the industry about the most appropriate emissions trading scheme for shipping.

SEAaT has brought together a group of ship owners to participate in a Pilot Project with the following aims:

  • To understand the benefits and challenges of emissions trading
  • To assess the economic and environmental impact of sulphur offsetting
  • To allow participants to develop their own strategies for complying with emissions reduction legislation

The Pilot commenced in April 2005, and data was gathered for a period of 1 year. See the home page where you can download the final report.

Over 50 ships representing a range of vessels types and routes participated in the Pilot Project, recording emissions of SOx in the proposed North Sea SECA.

Participants included:
Teekay Shipping
Stena Line
BP
P&O Ferries
OOCL

British Maritime Technology Limited were engaged by SEAaT to conduct project management and independent reporting on the Pilot.

Pilot Project overview

Real ships provided fuel consumption and position data, from which sulphur emissions were calculated
Ships were tagged as either “credit generators” or “credit purchasers”

Credit generators achieved significantly lower emissions by:

  • Actually using 0.2% sulphur fuel
  • Virtually using 0.2% sulphur fuel
  • Virtually operating abatement equipment, reducing emissions to 0.2% sulphur equivalent
  • The reductions below 1.5% equivalent were used to offset higher emissions by other ships in the group
  • The group in total have met or better the legislative requirement of 1.5% sulphur equivalent emissions
  • The group have experimented with attaching a cash value to the emissions reductions achieved, and explored how trading between ships and fleets could have economic and environmental benefits

Using the established database of actual emissions data, a wide range of scenarios have been created and analysed, giving guidance for the future establishment of emissions trading schemes.

The Pilot is exploring some of the key concerns and practicalities of offsetting for shipping. SEAaT aims to report the results of this Pilot Project to a broad stakeholder group.

For more information on the Demo Project, use the following links:
Offsetting Pilot Project Presentation - 1.3Mb PDF File
Latest updates and reports - Sulphur Emissions Offsetting Pilot Report August 2006

bmt project.netParticipant login – members only - BMT Project website