Australia and Europe tackle cruise ship sulphur emissions

The Quantum of the Seas is one of the first Royal Caribbean ships to be equipped with exhaust gas scrubbers.

Challenges related to air pollution from cruise ship engines are cropping up elsewhere in the world, even as they’ve been overcome for now in waters around North America.

In Australia, a newly elected government ran in part on a pledge to reduce the amount of sulphur coming from cruise ship smoke stacks to the same low level as in the U.S. and Canada.

Meanwhile in Europe, some regulators are asking whether a popular solution to reducing sulphur emissions — exhaust gas scrubbers — might contribute to water pollution in some areas.

The issues are percolating because of a worldwide effort to cut pollution from ship engines, which rely on oil particularly high in sulphur.

Since Jan. 1, all ships, including cruise vessels, have had to meet a much-reduced standard for sulfur in North America and certain other regions such as the Baltic Sea.

The standard, which remains 3.5% of fuel volume in much of the world, was reduced to 0.1% in so-called Emission Control Areas (ECAs). The change will prevent 14,000 early deaths annually by 2020, according to estimates from the U.S. Environmental Protection Agency (EPA).

Now Australia is seeking parity with the U.S. In late March, voters retained the New South Wales state government led by premier Mike Baird, who campaigned on a pledge to reduce the sulphur content of fuel for cruise ships in Sydney to 0.1% by July 2016.

Such quick action could disrupt Australia’s cruise sector, which has been growing by leaps and bounds.

Bud Darr, senior vice president of technical and regulatory affairs at CLIA, said the industry is “directly and actively engaged” with New South Wales authorities and the Australian EPA on air pollution issues.

“We are exploring a range of possibilities with those authorities,” Darr said in a statement. “We encourage those officials to take into account operational considerations and the results of a science-based study they have commissioned before taking any unilateral actions locally or nationally.”

Globally, the framework for air pollution control is set by the International Maritime Organization (IMO). Sulfur standards are scheduled to drop to 0.5% worldwide in 2020.

Countries can act earlier by setting up ECAs, such as the one formed jointly by the U.S. and Canada. The CLIA statement noted that so far Australia has chosen not to create an ECA.

Because of the expense and time involved in the installation of scrubbers — Carnival Corp. is currently installing scrubbers on 70 of its ships in a three-year project that will cost $400 million — the cruise industry has focused on installing scrubbers for ships with ECA itineraries, not those sailing in non-ECA areas such as Australia.

Darr said that the sulphur content of fuel has been on the decline and in most cases is below 3.5%. He said in Australia, which imports all of its marine fuel, indications are that the content is about 2.5%.

In the past, ships were powered with “residual” fuel left over from distillation of refined products such as gasoline, leaving behind oil with particularly high sulphur levels.

In addition to using more refined fuel, ship owners have turned to exhaust gas scrubbers.  Carnival Corp. and Royal Caribbean Cruises Ltd. are among the companies that have won permission from the EPA to meet lower sulphur standards by scrubbing it from engine exhaust.

The scrubbers generally fit in a ship’s smokestack and use either seawater or fresh water augmented with alkaline to create a chemical reaction that transfers the sulphur from air to water.

The water is then treated and discharged. It can also be recirculated with a smaller discharge amount. The treated water is generally more acidic than seawater, although tests have mostly shown it to fall within parameters set by the EPA.

But some worry that the water, if discharged in certain vulnerable areas such as ports, estuaries and coastal waters, could harm marine life and otherwise disrupt the environment.

Regulators in some European countries have questioned whether discharging scrubber wash water can be reconciled with the European Union’s “Water Framework Directive,” which gives local jurisdictions say over water matters in their areas.

A group of ship owners last year petitioned the EU for clarity, saying the uncertainty over enforcement jeopardizes their investment in scrubbers as a solution to lowering sulfur emissions.

In its statement, CLIA said about one-third of ships operated by its members have either installed scrubbers or committed to do so.

In January, many EU states submitted a plan to the IMO to create an alternate standard for verifying the acidity of washwater. CLIA said it endorsed the proposal, which is set to go before the IMO’s Marine Environmental Protection Committee in May.

CLIA added that the IMO global standards should be the ones used by individual governments to fully encourage development of the new technology.

Major Cruise Companies Set for Significant Growth Through 2022

The major brands will continue to get new megaships into the future. (photo: Sergio Ferreira)

The cruise industry’s growth trek will continue into the future, as current data from the 2015-2016 Cruise Industry News Annual Report shows significant capacity increases occurring over the next seven years.

Carnival Corporation will take its industry-leading position from roughly 10 million passengers this year to an estimated 13 million by 2022.

Royal Caribbean, meanwhile, will grow from over 5 million passengers to at least 7 million, and possibly more with no orders yet on the books for the 2020s.

Norwegian Cruise Line and MSC Cruises will see the most significant percentage growth between now and 2022. Norwegian is set to increase capacity by some 50 percent while MSC could double its 2015 capacity by 2022 based on seven new ship orders from an estimated 1.5 million to 2.9 million passengers

Ship withdrawals will be relatively insignificant as ships leaving fleets will generally be smaller, older vessels, while new tonnage coming in is expected to be of the megaship variety.

About the Annual Report:

The Cruise Industry News Annual Report is the only book of its kind, presenting the worldwide cruise industry through 2025 in 350+ pages. Statistics are independently researched. See a preview of last year’s edition by clicking here.

The report covers everything from new ships on order to supply-and-demand scenarios from 1987 through 2021+. Plus there is a future outlook, complete growth projections for each cruise line, regional market reports, and detailed ship deployment by region and market, covering all the cruise lines.

Carnival Corp. orders 9 ships to be built from 2019 to 2022

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By Johanna Jainchill
Carnival Corp. said Thursday that it would add nine ships to its fleet between 2019 and 2022.

Carnival offered almost no details about the ship order. It did not specify which of its nine brands would get the new vessels or offer any information about their size, design or cost.

In a statement, Carnival said the new ships were expected to serve the North American, European and Chinese cruise markets, would be specifically designed and developed for their particular brands and would be the most efficient ships in Carnival history.

“We’re excited to take this next step in our fleet-enhancement plan with these two new agreements that are consistent with our long-term strategy of measured capacity growth over time,” Carnival Corp. President and CEO Arnold Donald said in a statement.

The order is in line with Donald’s previous statements indicating that the company would restrict its growth to two to three ships per year across its fleet.

Carnival said it had signed memorandums of agreement with Italy’s Fincantieri shipyard to build five of the vessels and with Germany’s Meyer Werft to build four.

Additional information about the ships, such as their design and which brands they will be built for, will be revealed at a later date, Carnival said.

In announcing the new builds, the company indicated that Donald would be offering additional details about the new vessels during Carnival Corp.’s earnings call on Friday.

Carnival Corp. is the parent company of Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, Aida Cruises, Costa Cruises, Cunard, P&O Cruises (Australia) and P&O Cruises (U.K.).

Late last year it ordered one ship each from Fincantieri for Carnival Cruise Line and Holland America Line for delivery in 2018.

The company has added more than 30 ships to its combined fleets since 2007, and it has another nine scheduled to be delivered between 2015 and 2018, which Donald pointed out in December was about one vessel for each of its brands over the next four years.

This year, Carnival is adding two ships to its global fleet and removing four. The new vessels are P&O’s Britannia, which launched earlier this month, and the Aida Prima, set to debut later this year.