COVER STORY This year, an ECA zone around Puerto Rico and U.S. Virgin Islands became effective. According to Chiarello, the Ponce Class ships that operate in the Puerto Rico trade were provided an extension until 2019 to comply with the ECA regulations, “so our discussions were really focused on the Orca Class ships. What were the best options for these 10-yearold assets? Our technical staff at TOTE and ship management group spent a lot of time looking at various options. They came back to leadership of TOTE and Totem with the recommendation that LNG would have the positive potential environmental effects and turn out to be the best option.” Chiarello says the company spent the better part of well over a year working on the retrofits, most of the time consulting with MAN Diesel & Turbo, who supplied the engines currently operating in the Orca Class vessels. He says those discussions centered around engineering and fabricating conversion kits for the engines. “We were going down that path very aggressively when we announced the LNG conversions on the Orcas in August 2012.” But then, explains Chiarello, “MAN had a change of heart relative to its ability to economically and effectively create and engineer the conversion kits for the engines. It was a matter of engineering capacity in their network at the time to meet the timelines that we established, as well as a determination of the number of engines of that specific class and type around the globe that would be candidates for LNG conversions. When they did an analysis, they thought it wasn’t in their best interests to go forward.” At that point, TOTE had to step back and reevaluate its options. “We went out to bid for new engines that would burn LNG as fuel. And we made a decision to go with Wärtsilä. That’s the path that we’re going to go with now.” The change from converting the existing MAN B&W diesel engines to swapping out for Wärtsilä dual fuel engines also meant a switch in strategy on how the conversions would be accomplished. The original intention was that the majority of the work would be done while the vessels were in service. Any other work that needed to be performed would have been done during the ships’ normal dry dock cycle. However, the engine replacement plan is going to require that the ships go into dry dock. “Our intention is to do it over the winter months, which tend to be the slowest time within the Alaska trade from a commercial perspective,” he says. Chiarello estimates that ships will be out of service between eight to 10 weeks for the reengining and conversion. While the ships are out of service, Chiarello expects to supplement with other carriers’ assets, whether barge, ship or over the road options. Totem Ocean’s fleet of two Orca Class Roll-on/Roll-off cargo ships—M.V. Midnight Sun and M.V. North Star—transport about one-third of all the goods required by the inhabitants of Alaska. Cargo includes essential items such as food, household goods, vehicles, construction materials and military supply support. As a result of the conversion to LNG, the Orca vessels will virtually eliminate SOx emissions, reduce particulate matter (PM) by 91 percent, NOx by 90 percent, and carbon dioxide (CO2) by 35 percent. The plan is to install four 12-cylinder Wärtsilä 50DF dual-fuel engines and generator sets. The engines will have the ability to burn either natural gas, light fuel oil or heavy fuel oil. Additionally, Wärtsilä is supplying each ship with two 1,100 m³ LNG fuel storage tanks and the associated automaton and fuel gas handling systems through its LNGPac system. Wärtsilä will also be responsible for the design, engineering and integration of the system, as well as project and site management for its scope of supply. 18 MARINE LOG August 2014
IN THE BAG: Massive 380-ton stainless steel LNG storage tanks were recently delivered to General Dynamics NASSCO
What was also critical for TOTE was the early involvement of the U.S. Coast Guard in the decision-making process. “We knew the Coast Guard and the EPA,” says Chiarello, “would play a very important role if we were going to go forward with the conversions, both from a regulatory perspective and an operational perspective, so they were involved very early in the discussions. They were both very good partners from the beginning. The whole process was transparent. We didn’t want any surprises on anything that we might have forgotten that would fall into the sphere of responsibility of either the EPA or the Coast Guard.” Chiarello points out that the decision to go dual fuel was simple. “In case there was ever a problem with getting supply, we can go with a back up without any service interruptions. Second, being U.S. flag and U.S.-owned company, we could make the ships available to the U.S. government in times of war,” he adds. “One of our Alaska vessels,” relates Chiarello, “recently provided troop support. If that was to ever happen again, having LNG as the only fuel option might make it difficult for the government to get supply. Dual fuel capability provides backup. It’s not only the sheer distance that they would be traveling, but also the ability to get supply around the globe.” Chiarello called estimates of $80 million to $100 million to complete the two conversions “in the ballpark.”
World first: LNG-powered containerships Just months after the announcement of the conversion of the Orca Class ships to LNG, on December 10, 2012 the other shoe dropped—TOTE was going to build what would be the world’s first LNG-powered containerships at General Dynamics-NASSCO. While not the first owner to jump to LNG—New Orleans-based Harvey Gulf International Marine, Inc., had already announced its move to LNG the year prior for a new class of dual fuel Platform Supply Vessels—TOTE’s bold initiative was the first thread of a string of other Jones Act ship operators to order LNG or “LNG-ready” tonnage. There is currently an estimated $3 billion in orders for LNG or LNG-ready newbuilds at North American shipyards. Construction on the first containership is nearly 40 percent complete, with the start of the construction of the second Marlin Class