Ballast Water Management Current situation and challenges Oslo, September 25 th 2012 Erik Ranheim

1. Ballast Water Management Current situation and challenges • Oslo, September 25th 2012 • Erik Ranheim • Senior Manager Research & Projects INTERTANKO

2. IMO Ballast Water Management Convention Adopted internationally in 2004 All ships =>400 GT will need to undergo an initial survey and be issued an International Ballast Water Management Certificate, valid 5 years Entry into force requires ratification by 30 countries - 35% world’s GT status 36 countries - 29% world’s GT ratified The US Coast Guard's final rule, published 23-03-2012, effective 21-06-2012 Standard same as IMO) with review in 4 years; Compliance schedule similar to IMO Accepts of “alternative” BWMS for 5 years

3. Regulatory requirements BWM Plan and Record Book BWM System performance standard Compliance schedule to install BWMS Survey and certification requirements Port State Control procedures US allows states to impose additional requirements EPA regulates vessel discharges with the Vessel General Permit (VGP to be renewed within 5 years ).

4. Regulatory schedule - IMO Enforcement 12 months after ratification i.e. - earliest October 2012 if ratified now - Installation at first Intermediate or Periodical Survey

5. Regulatory schedule - USCG

6. Possible BWM standard that is 100x and 1000x greater than IMO Considerable lobbying by industry coalition EPA Science Advisory Board report – standard not possible with current BWM technology Reason prevails, for the time being It all depends on California as NY clearly follow California’s lead. Unilateral Regulations New York, California?

7. Different technology/solution • Solid-liquid separation/Filtration+ • Hydrocyclone • Filtration • Coagulation • Chemical disinfection and dechlorination • Ozone • Clorine • El/EC • Chem/Biocidal • Res • Peracetic acid • Physical disinfection • UV • Deoxygenation • Heat agitation • Cavitation • Ultra Sonic

8. June 2012 25 BWMS approved(2 withdrawn) Owner not able to make decision based on type approval Several type approval certificates have been provided based on theoretical extrapolations as opposed to actual physical tests Problems experienced in brackish or fresh water (electro-lysis/chlorination) or high-sediment-load waters (UV systems and sediment rich, muddy waters (filtration) BWMS not always fit for purpose Corrosion, coating Robustness Filters Revision of Guidelines for BWMS approval needed

9. The Challenges and Uncertainty Insufficient facilities to produce and install BWMS BWM Convention dates progressively surpassed, the number of ships that must have BWMS 12 ms after ratification increases Yards, BWMS manufacturers and owners under increasing pressure to install systems within the time frame Pressure to change schedules BWM Convention cannot legally be amended until convention enters into force Too many ships need to be surveyed/certified within a short time period- phase in needed Standard operating procedure for sampling and analysis of ballast water by Port State Control needed - key impediment to further ratification

10. Current Estimated Installation Schedule Dates MEPC 61/2/17 by Japan

11. The Challenges and Uncertainty INTERTANKO Guidance on the Selection and Installation of Ballast Water Management Systems for Tankers Physical Installation Pumping Control – system approval and certification Treatment type Operating practicalities Released January 2012

12. The Challenges and Uncertainty Finding, installing and operating systems on tankers?

13. BWM Summary • Complexity • Many different systems, more on the way • Often complicated installations, in particular on existing ships • Safety • Uncertainty • Ratification • Will the BWMS work on your ship where you trade? • Certification, does the BWMS work as it was approved to work? • Will the BWMS meet the discharge standards? • Will it pass PSC? • Uncertainty reduced after MEPC 64 primo Oct-12 • Economy • Installation and operation