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Shipping industry sails into unknown with new pollution rules

The rate of pollution observed at Valero Energy’s St. Charles refinery in Norco, Louisiana, based on EPA standards, is the highest among the 50 largest U.S.
refineries, according to the Reuters examination of stack test results.

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SINGAPORE, Jan 23 (Reuters) – The global shipping market is set for a recovery, benefiting from new global rules on marine fuels that came into effect at the beginning of the year after more than a decade of tough market conditions, according to IHS Markit.

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“We are in prayer mode,” Reali told Reuters.
Because of the bad air, the EPA is expected to rule on a recommendation by Missouri regulators to designate the perimeter of the smelter and power plant as a “nonattainment” area under the 2010 National Ambient Air Quality Standards.

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Khalid Hashim, managing director of one of Thailand´s largest dry cargo ship owners, Precious Shipping, said it had not allowed co-mingling of marine fuel, also known as bunker fuel, for over five years and required all of it to be sample tested.

While retrofits were slow last year and delayed by technical difficulties and a lack of key parts, “scrubber adoption is expected to continue and a second wave of installations is expected this year”, said IHS, adding that it expected more than 3,500 units to be equipped with scrubbers by January 2021.

Charles´ peak was 69 pounds per hour, or an equivalent of 302 tons per year, during the August pollution test. With a few exceptions, even larger refineries than St. Charles produce lower rates and volumes of soot pollution, according to test results reviewed by Reuters.

The August tests at St. Charles showed emissions peaked at 1.2 pounds per 1,000 pounds of coke burned. The average pollution rate under three test conditions, each using different liquid-to-gas ratios in the refinery´s pollution scrubber, was slightly above the EPA limit at 1.02 to 1.04 pounds.

In a sign the poor air quality may be harming local residents, death rates in the county from chronic obstructive pulmonary disease (COPD) are 87% higher than in the rest of the state, according to the Missouri Department of Health and Senior Services.

The soot pouring out of its smokestacks last year consistently produced the dirtiest air recorded in America, according to a Reuters review of pollution monitor data from the U.S. Environmental Protection Agency. (For a graphic on the pollution from the smelter’s smokestacks, see website )

The Magnitude 7 Metals facility and the power plant next door that supplies its electricity together emitted about 30,000 tons of sulfur dioxide and nitrogen oxide pollution in 2019, according to the EPA data.

Charles, which can process up to 215,000 barrels of crude oil every day, exceeded the federal limit during August pollution tests, sometimes by as much as 10% to 20%. Soot at that refinery has escalated since 2017, according to results from stack tests, used to measure fine particle pollution. Valero did not return messages seeking comment.

The tests were conducted by an engineering firm Valero hired to demonstrate its regulatory compliance.
The results were filed with The Louisiana Department of Environmental Quality (LDEQ) in October and have not previously been reported.

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“There are low-income African-American community members living on the fence line of the Valero Norco Refinery and are being negatively impacted by the cumulative impacts of emissions being released by the Valero refinery,” Subra said.
Regulators should require the refinery to cut those emissions to “improve the quality of life for the fence-line community members.” (Reporting By Tim McLaughlin in Boston; Editing by Andrea Ricci)

But things haven´t worked out as planned, said Reali, the Magnitude 7 Metals executive. The price per ton has dropped to about $1,500 due to soft demand and high global stockpiles, about $1,000 below the plant´s business plan.

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