Founding Director, LNG Marine Fuel Institute
P & H Marine Australasia
Founder and CEO
16:00 - 16:25
Wednesday, 18 September 2019
S1.6 MARPOL 2020 Compliance Made Easy with Blockchain
The MARPOL legislative changes being introduced on 1 January 2020 mean that ships operating outside of current IMO designated Emission Control Areas (ECAs) will have three options to achieve compliance:
- Use exhaust gas abatement technology (‘scrubbers’).
- Burn fuel with maximum Sulphur content of 0.50% mass
- Burn LNG.
To meet continuing legislation inside IMO designated ECAs, ships will either burn fuel with maximum Sulphur content of 0.10% mass or LNG.
MARPOL 2020 will re-shape the marine fuels landscape and will introduce operational challenges and opportunities. Compliance with MARPOL 2020 presents a significant challenge to industry participants who manufacture, supply, or who use marine fuel.
Noncompliance could result in fines, increased inspections in port and restrictions to operations for vessels, flag states and port authorities. Furthermore, the IMO is developing guidelines for enforcement to make non-compliant bunkering operations traceable for several years.
Today, industry uses various tools, technologies, and software packages to support their bunkering operations along with a healthy dose of paperwork and manual process.
Information about the manufacture, distribution, sourcing, procurement, and consumption of marine fuel is created, stored, managed and maintained across multiple systems, in multiple locations and by multiple stakeholders creating a fragmented record.
Identifying, collecting, analyzing and reporting this information to monitor and track MARPOL compliance will require processes, controls, and technologies that will introduce additional compliance cost.
Scope and Objectives
Using intelligent contracts and blockchain technology DNV-GL, in partnership with QuayChain Pte. Ltd. are using blockchain technology to write an intelligent Hydrocarbon Custody and Title Transfer Contract (iCaTT). The objectives of iCaTT are to demonstrate:
- Use of blockchain technology to automate a commercial bunkering transaction from sourcing through to contract close.
- The ability for multiple stakeholders to safely and securely, contribute to, and read from a common iCaTT
- IoT enabled devices (the Mass Flow Meter) can be party to the iCaTT to eliminate human error, reduce waste, reprocessing and disputes.
- Significant reduction in transactions costs
Agile software development principles and SCRUM project management methodology.
- Design-driven software development. Work closely with the product users to inform the intuitive design and reduce barriers to adoption.
- Agile software development informed by the design outcomes
- iCaTT reduces transaction (friction costs) by 80% or more (Stakeholder dependent)
- Automated compliance reporting of a higher quality zero cost.
- Potential to deliver hydrocarbon provenance by replicating the iCaTT upstream
- IoT enabled devices (MFM) have the ability to execute a pre-authorized financial transaction once all conditions of the iCaTT have been met.
The intelligent contract functionality has many applications beyond bunkering. Broadly it allows 2 or more entities to interact and transact against a pre-authorized criteria. Blockchain technology could provide the information technology infrastructure required for asset independence and autonomous shipping.
Considerate, methodical application of this technology to appropriate use cases with immediate business case drivers, will over time result in the information management infrastructure required to support an autonomous shipping future.