Algoma Central Corporation

Environmental Report 2011
Launching a new era 

in environmental efficiency

Welcome to Algoma Central Corporation’s first formal Environmental Report.

We are pleased to provide this report discussing both our accomplishments and our challenges on 

the environmental front. While our shipboard and office staff have been involved in environmental 

improvement initiatives for a long time, we have increased and formalized our efforts over the last five 

years. There have been many accomplishments along the way, including Green Marine and ISO 14001 

certification, which are highlighted inside. The publication of this report marks another milestone, where 

we share our current performance and improvement initiatives with the public.

The efficiency of marine transportation makes it an environmentally friendly choice by nature. Operating 

on the world’s largest freshwater system, however, presents unique challenges and demands. Algoma 

Central Corporation employees spend considerable time on environmental challenges and collectively we 

take pride in the company’s continual improvements.

We are keenly aware, however, that there is much left to be done. Environmental leadership is one of 

the cornerstones of our strategic plan, and we are investing hundreds of millions of dollars in new ships 

and technologies to achieve this goal. We look forward to reporting significant progress across our entire 

environmental footprint in future editions.

We hope that you find this report interesting. If you have feedback, please let us know. 

Greg Wight Mira Hube

President and CEO Director, Environment
 Table of Contents:

Introduction 1

About Algoma Central Corporation 3

Environmental Management System 4

Algoma Environmental Policy 6

Green Marine 7

Air Pollution Prevention 8

 SOx Emissions 9

 NOx Emissions 11

 Greenhouse Gas Emissions (GHG) 12

Water and Wastewater Management 15

Waste Management 18

The Future New — Equinox Class Vessels 19
1

Introduction

The Great Lakes represent approximately 22% of the world’s fresh water, providing drinking water to tens 

of millions of people. Recreation, fishing, tourism and industry also depend on the health and vitality of the 

Great Lakes system. Operating our fleet of dry and liquid bulk cargo vessels on this beautiful and treasured 

waterway, we at Algoma Central Corporation are constantly mindful of our duty to be responsible stewards 

of the environment on which our business depends. 

Marine transportation is the most economical and environmentally friendly mode of commercial 

transportation available today, consuming significantly less fuel than rail, road or air transport per tonne of 

cargo moved. Marine shipping generates fewer air pollutants and lower greenhouse gas emissions as well 

— about one third of those generated by road transport. 

Despite these clear environmental benefits, our ships do burn fuel and generate wastes. We are therefore 

committed to taking actions to minimize the environmental impacts of these activities. In fact, our 

objective is to be one of the most environmentally sustainable transportation companies operating in our 

region. We have committed to a process of continual improvement in our environmental performance and 

are proud of the accomplishments highlighted in this, our first Environmental Report.

We know there is more to do though. As we move forward, we are constantly focused on innovation and 

creative solutions – including the introduction of more efficient vessels that will bring us to the forefront of 

a new age of environmental responsibility in the Canadian shipping industry. 

What environmental sustainability means to us

Marine shipping transports 90% of global trade, and in the Great Lakes region provides essential 

transportation services for the steel, construction materials, power generation, agriculture, petroleum, salt, 

mining and other industries. Clearly, our economy could not function and the environmental impacts of 

transportation would be significantly greater without marine transportation. A sustainable shipping industry 

is one that minimizes environmental impacts while continuing to provide essential transportation services 

that contribute to our overall prosperity. 
2

Introduction

At Algoma Central Corporation, we view Environmental Sustainability as one of the four main tenets of 

sustainability together with Operational Excellence, Social Responsibility and Corporate Governance. Our 

social license is earned and maintained through acting in an ethical manner, contributing to sustainable 

business development and providing a safe work environment and a high quality of life for our employees, 

their families and the communities in which we operate. 

Our sustainability goals are ambitious. We envision a future fleet of modern, environmentally efficient 

vessels that will provide customers with top-quality service and employees with safe and sustainable jobs, 

while at the same time maintaining the health of our air and waterways for generations to come.

The environmental benefits of marine transportation

Short sea shipping has great potential to help Canada to achieve its sustainable development objectives. 

Studies show that the environmental and social costs of short sea shipping are generally lower than those 

of rail and road transportation modes. Marine shipping also has the lowest environmental impact related 

to spills, noise and traffic congestion, and the lowest incidence of injuries due to accidents. The value of 

marine transportation to the Canadian economy, combined with its excellent environmental performance, 

makes it a vital part of Canada’s sustainability strategy. 

Greenhouse gas emissions (CO2)

Grams per tonne of cargo 

transported one kilometre

Fuel efficiency

Distance one tonne of cargo 

travels on one litre of fuel

Spills — Noise — Congestion

Impact on the environment

0 5 10 15 20 25 30 35

0 50 100 150 200 250 300 350

Ship

Rail

Truck

Ship

Rail

Truck

10

17

33

312

181

75

0 5 10 15 20 25 30 35

0 50 100 150 200 250 300 350

Ship

Rail

Truck

Ship

Rail

Truck

10

17

33

312

181

75

High

Medium

Low

None

 Spills Noise Congestion

Ship

Rail

Trucks

0 5 10 15 20 25 30 35

0 50 100 150 200 250 300 350

Ship

Rail

Truck

Ship

Rail

Truck

10

17

33

312

181

75

High

Medium

Low

None

 Spills Noise Congestion

Ship

Rail

Trucks

Source: Lawson Economics Research Inc., Ottawa, Canada “The Environmental Footprint of Surface Freight Transportation”, June 2007
3

About Algoma Central Corporation

Our operations and activities

Algoma Central Corporation was formed in 1899. Today Algoma owns and operates the largest fleet of 

Canadian flag dry and liquid bulk carriers operating in the Great Lakes-St. Lawrence waterway and Canadian 

east coast regions. Our fleet carries such cargoes as: 

■ Iron ore and coal for the steel industry 

■ Grain and potash for the agricultural industry

■ Aggregate products and gypsum for the construction and road building industries

■ Salt for road safety and commercial use

■ Petroleum products and chemicals for the petroleum industry

■ Coal for power generation

■ Specialty commodities

On average, we transport almost 37 million tonnes of cargo over 1.8 million kilometres per year. In addition, 

Algoma has interests in ocean dry-bulk and product tanker vessels operating in international markets. 

Algoma also owns a diversified ship repair and fabricating facility and, through Algoma Central Properties Inc., 

owns and manages commercial real estate properties in Ontario. 

Our self-unloader type vessels discharge their dry-bulk cargo by way of conveyor and boom systems while 

the gearless bulk carriers require shore-based unloading equipment. A typical gearless bulk carrier voyage 

would see grain move eastward through the Seaway system to lower St. Lawrence River ports, balanced 

with a returning iron ore shipment to Great Lakes destinations.

Self-unloaders use conveyor 

systems to discharge their 

cargo in as little as six hours.

All Algoma petroleum/

chemical tankers are doublehulled; no cargo is carried in 

tanks directly adjacent to the 

outer hull.

About Algoma Central Corporation
4

Environmental Management System

Environmental Management at Algoma

Our international recognition

Algoma’s commitment to the protection and stewardship of the waterways in which we operate and to 

the environment is demonstrated by the many actions we are taking, beginning with our comprehensive 

environmental management program. 

In 2008, we achieved certification of the environmental management system on our product tanker fleet to 

the International Organization for Standardization’s ISO 14001:2004 standard. Certification of our dry-bulk 

fleet was achieved in 2010. Our overall Integrated Management System (IMS) is also certified to both the 

ISO 9001:2008 quality management standard and the International Safety Management (ISM) Code of the 

International Maritime Organization (IMO). 

Certification to these internationally recognized standards demonstrates our commitment to the protection 

of the environment, to the safety of our employees and to providing a quality service to our customers. 

An integral part of any effective management system is communication and training. Algoma’s 

environmental responsibilities and procedures are conveyed to ships’ management and crews through 

annual conferences, procedural and maintenance training, and regular shipboard meetings. 

We are continually reviewing our processes with the objective of improvement. Our shore-side and 

shipboard operations and personnel are regularly audited against the ISO standards and the ISM Code by 

both internal and external parties. 

Our operations personnel meet regularly to discuss improvement initiatives, review progress against 

environmental objectives and ensure effective management of the company’s environmental issues. The 

Environmental, Health and Safety Committee of our Board of Directors meets on a semi-annual basis.

Algoma also works in partnership with stakeholders to promote a more environmentally sustainable 

shipping industry. We participate in numerous Canadian and U.S. marine environmental forums, including 

the Canadian Marine Advisory Council with Transport Canada and Environment Canada, and the bi-national 

Great Lakes Ballast Water Collaborative. We also take leadership roles on the Canadian Shipowners 

Association and the Green Marine Program Environmental Committees.

Pivotal to our efforts are several environmental improvement programs, including efforts to reduce energy 

usage, reduce waste generation and conserve resources. We are confident that these programs, along 

with other initiatives currently under way, will help us fulfill our commitments to continually improving in 

environmental performance, to managing safety hazards and to ensuring customer satisfaction – promoting 

excellence in all we do and creating a greener marine industry for years to come.
5

Environmental Management System

Environmental Aspect Improvement Programs Actions

Air Pollutants 

(SOx, NOx, GHGs, 

Particulate Matter)

Conserve Energy Reduce Fuel Use ■ Air pollutants emissions inventory

■ Engine replacements

■ Waste heat recovery (>50% of fleet)

■ Energy management plan

■ Energy conservation measures feasibility study

■ State-of-the-art fuel monitoring systems

Reduce Energy Use 

(Office)

■ Awareness initiatives 

■ Investigate and implement energy conservation 

measures (2011)

Upgrade/Innovate Research Emission 

Abatement Technology

■ Emissions testing (Environment Canada)

■ Investigate scrubbers

Replace Halon ■ All ships halon-free as of 2010

Waste Reduce Waste Reduce ■ Promotion of supplier packaging reduction

■ Elimination of bottled water (office)

■ Awareness initiatives

■ Reusable coffee mugs 

■ Reusable water bottles

Recycle ■ Recycling (shipboard and office)

■ Shipboard organics collection

Oily Discharges Upgrade/Innovate Improve Effluent Quality ■ New Oily Water Separators (OWS) installed 

(12 ships)

■ Remaining OWS upgraded

Lubes Replacement ■ Water-cooled stern tubes 

(1 new installation 2011)

■ Phasing in of biodegradable/environmentally preferable lubricants in underwater and deck equipment

Sewage/Grey Water Upgrade/Innovate Improve Effluent Quality ■ New Marine Sanitation Devices (MSDs) installed 

(5 ships completed)

■ Upgraded all other MSDs

■ Phosphate-free detergents

■ Non-toxic cleaning chemicals

Conserve Water ■ Promotion of low-flow shower heads, front-loading 

washing machines, low-flow or vacuum toilets

Cargo Residues Reduce Waste ■ Annual fleet inventory

■ Promotion of reduction best practices

■ Upgraded dust control equipment

Ballast Water/Aquatic 

Invasive Species

Upgrade/Innovate ■ Investigate feasible treatment options

■ Participate in industry AIS Risk Assessment

All Areas Upgrade/Innovate Fleet Renewal ■ Invested $190 million to modernize product tanker 

fleet including the addition in 2004, 2008 and 

2009 of new double-hull product tankers

■ Commitment to add seven new dry-bulk vessels 

for delivery in 2013-2014

Improvement programs

This table summarizes recent and current initiatives that are in place to improve our environmental performance.
6

Our environmental policy

Declaring our commitment to excellence

The Algoma Safety and Environmental Protection policy is a key component of our Integrated Management 

System. It represents our commitment to the guiding principles of compliance, continual improvement 

and the prevention of pollution, and informs all employees and stakeholders of our dedication to 

environmental stewardship.

Algoma strives to be an exemplary leader in safety and environmental management, and 

is committed to the protection of the environment, particularly the marine environment, the 

prevention of human injury and loss of life, and the protection of property.

To achieve and sustain these goals our operations are guided by the following seven basic 

principles:

■ Management, operating, maintenance, health, safety, environmental, and emergency response 

practices will be conducted in accordance with documented procedures that meet the 

requirements of the International Environmental Management System Standard ISO 14001 and 

the International Maritime Organization’s International Safety Management Code, and ensure 

compliance with all applicable regulations and legislation.

■ Risks to the safety of ships, health of employees and preservation of the environment will be 

constantly evaluated and managed.

■ Specific resources will be dedicated to the continual management of safety, health and 

environmental protection programs, and to communication and co-operation with government 

agencies, customers and industry associations. 

■ All management systems are subject to periodic internal and external audits, with specific 

emphasis on health, safety and environmental protection.

■ New projects will be evaluated for potential risks to employees, customers, the general public 

and the environment.

■ Education and training will ensure that personnel familiarize themselves with all applicable 

procedures and conduct themselves conscientiously with respect to health, safety and 

environmental protection.

■ Safety and environmental management will be subject to regular review by the Environmental 

Health & Safety Committee of Algoma Central Corporation.

The pledges in our environmental policy are more than just words. Our commitment to lead is, we believe, 

demonstrated on a daily basis by our programs targeting waste reduction, energy management, and 

equipment upgrades, and challenges us to implement leading-edge technological improvements where 

feasible. Pollution prevention is fostered through ongoing awareness and environmental training, and 

adherence to instructions outlined in the company’s Integrated Management System.

Algoma Environmental Policy
7

Green Marine

Algoma’s Green Marine 

Results

Green Marine

An industry-led environmental program

Algoma was one of the founding members of Green Marine, a voluntary, industry-led program of the 

St. Lawrence and Great Lakes marine industry founded in 2008. This program is designed to encourage 

improvement in environmental performance by all member shipping companies, ports and terminals, and 

to encourage members to adhere to the following guiding principles:

■ Demonstrate leadership in the search for best environmental practices and the promotion of voluntary 

protection measures.

■ Minimize environmental impact and continually improve environmental performance.

■ Integrate sustainable development practices that are technically and economically achievable.

■ Collaborate with governments, citizens’ groups and other stakeholders in the furtherance of the Green 

Marine action plan.

At Algoma, we assess and report our performance annually against the Green Marine Program criteria 

and set targets for improvement in each key area. These targets form part of our yearly strategic goals 

and environmental improvement plans. Our 2009 performance compared to the industry average is shown 

below. Scores are based on a 1 to 5 scale, with 1 representing compliance with regulations and 

5 representing excellence.

Priority Issue Algoma Dry-Bulk 

Score 2009*

Algoma Tankers 

Score 2009*

Average Industry 

Score 2009

Aquatic 

Invasive Species

3 3 2.7

Air Emissions – SOx 4 4 3.7

Air Emissions - NOx 3 3 2.6

Greenhouse Gases 3 3 2.9

Cargo Residues 3 N/A 3.1

Oily Waters 3 4 2.7

* Results verified by external agency

An important feature of the Green Marine Program is the biannual external verification of participant 

results to ensure an independent audit of progress.

Algoma continues to be committed to the Green Marine improvement program and maintains active 

involvement in its maintenance and development through participation in Green Marine committees including 

the Steering Committee, the Great Lakes Environment Committee and the Shipowners Technical Committee.
8

Air Pollution Prevention

Air pollution prevention

Protecting the air we breathe

Air pollution and climate change caused by fossil fuel emissions are among the most pressing issues 

facing all sectors of the transportation industry today. At Algoma we understand the critical importance of 

these issues and are taking strong steps to ensure that we reduce our impact on the air we all breathe.

Understanding marine emissions

The main emissions from marine engines are sulphur oxides (SOx), nitrogen oxides (NOx), particulate 

matter (PM) and greenhouse gases (CO2 equivalent), all of which are generated from fuel combustion. 

These emissions negatively impact air quality and, in the case of CO2, are linked to climate change. 

Methods to reduce these exhaust gas emissions are being actively pursued by the shipping community, 

the International Maritime Organization (IMO) and regulatory bodies.

Internationally, air emissions from marine vessels are regulated by Annex VI of the International Maritime 

Convention for the Prevention of Pollution from Ships (MARPOL Convention). In 2010, IMO’s revised 

and strengthened regulations, including a progressive reduction in emissions of SOx, NOx and PM, and 

introduction of emission control areas (ECAs), came into force. 

Also in 2010, IMO approved the Canada/U.S. application to designate the coastal waters of North America 

as an ECA. Under the terms of this designation, beginning in August 2012, all vessels operating within 

200 nautical miles of the North American coast will be required to reduce their SOx emissions. As well, any 

engines installed after 2016 must meet the strictest NOx standards (Tier III) when operating in the ECA.

Regulations for operations in internal waters, including the Great Lakes, are being implemented as well 

by Canadian and U.S. authorities. The U.S. Environmental Protection Agency has introduced new rules 

enforcing the ECA within the Great Lakes, and Transport Canada will finalize new Canadian regulations in 

the near future to implement the IMO standards. 

As a consequence of these requirements, IMO estimates that by 2020, global emissions of sulphur oxides 

and nitrogen oxides from vessels will be reduced by 85% to 99%. These measures will also significantly 

reduce particulate matter emissions.
9

Sulphur dioxide emissions 

The quantity of sulphur dioxide (SO2) emitted by a marine engine from combustion of fossil fuel is 

proportional to both the level of sulphur contained in the fuel and the amount of fuel used. The “heavy” 

fuels that have traditionally been used in the marine industry contain higher levels of sulphur than the more 

refined marine diesel and gasoline fuels. 

The current allowable sulphur content of marine fuel, as regulated globally by IMO for areas outside of 

emission control areas (ECAs) is 4.5% sulphur, by mass. This will be progressively reduced to 3.5% in 

2012, and to 0.5% by 2020 (or 2025). For ECAs, the sulphur content is now capped at 1% until 2015, at 

which time it will be further reduced to 0.1%. This will require ships to either switch to using marine diesel 

or to install exhaust gas scrubbing equipment designed to remove sulphur dioxide and other contaminants. 

Canadian SOx emissions by sector

Marine emissions accounted for 4.7% of nationwide SOx emissions in 2008. While this represents the largest 

proportion of transportation emissions, abatement technologies are being actively developed to address this 

issue. Emissions from the marine industry will be dramatically reduced over the next 5 to 10 years. 

Residential &

Commercial 4%

Pulp & Paper 2%

Petroleum 23%

Other Industrial 6%

Electric Power 

Generation 11%

Transportation 54%

Transportation 5.4%

Off-road 20%

Rail 5%

Cars & Trucks 

Air 3%

Marine 5%

Non-Ferrous

Smelting & Refining 33%

Pulp & Paper 2%

Petroleum 22%

Other Industrial 10%

Electric Power 

Generation 25%

Off-road 0.2%

Rail 0.1%

Cars & Trucks 0.1%

Air 0.3%

Marine 4.7%

NOx by sector

SOx by sector

Industrial 

Non-Industrial

Non-Industrial

Industrial 

Residential &

Commercial 3%

Sulphur content of fuel used by Algoma

The sulphur content of the fuels used by Algoma vessels is tracked and inventoried by ship and for the fleet in 

total. In 2009 and 2010, the overall average sulphur content of fuels used by all vessels was just 1.36% and 

1.46%, respectively. In fact, more than 20% of the fuel consumed by the fleet’s dry-bulk vessels is marine 

diesel fuel, which contains less than 0.05% (500 parts per million) sulphur.

Air Pollution Prevention — SOx Emissions

Global

Maximum

Current

Global

Maximum

2012

Algoma

2009/10 Average

North

American 

ECA

Aug 2012

ECA 

2015

1.4%

1.0%

0.1%

3.5%

4.5%

The average sulphur 

content of fuel used by 

Algoma is well below the 

current allowable global limit 

of 4.5% sulphur by mass. 

Source: Environment Canada
10

SOx emissions

SOx emissions are measured on both a total emissions basis and on an intensity basis, defined as the 

amount of emissions for every tonne of cargo carried one kilometre. Algoma’s SOx emissions for the years 

2008 through 2010 are shown below. Business reductions caused by the economic downturn along with 

the retirement of older, non-economic capacity primarily accounted for the decrease in total emissions in 

2009 and 2010 from 2008. Emissions intensity has, however, remained relatively constant, with a slight 

increase in 2010 primarily as a consequence of the retirement of several diesel (lower sulphur content 

fuel) burning vessels. 

SOx Emissions 2008 2009 2010

Total (Tonnes) 4,770 3,313 3,872

Intensity (g/T-km) 0.11 0.11 0.12

Algoma is committed to reducing SOx emissions by: 

■ Building new, more fuel-efficient vessels to reduce the amount of fuel required to move cargo.

■ Installing new, more fuel-efficient engines.

■ Installing exhaust gas scrubbers to remove SOx, when the technology is available, and/or burning lowersulphur fuels. 

■ Promoting energy conservation and reduced fuel usage.

Exhaust gas scrubbers

Reducing SOx emissions by running engine exhaust gases through a “scrubber” system prior to release 

to the atmosphere is a technology that is under active investigation by Algoma. These systems operate 

utilizing either an “open loop” configuration that continuously introduces water, or with a “closed loop” 

system that requires the use of chemicals. 

Scrubbers are a proven technology and have long been successfully used in land-based facilities, such 

as power generation. Current marine scrubber technology is 95% effective. However, it predominantly 

uses salt water in the treatment process. The challenge for the domestic marine industry is to develop 

technology that can operate as effectively in the fresh water Great Lakes - St. Lawrence Waterway. 

Air Pollution Prevention — SOx Emissions
11

Nitrogen oxide (NOx) emissions

The quantity of NOx emitted from marine vessels is directly related to the amount of fuel used and the 

engine specifications, including age, design, maintenance and combustion temperature. Maintaining 

engines in optimum operating condition is a key factor in reducing emissions. 

Canadian NOx emissions by sector

According to Environment Canada data the transportation sector accounted for 54% of NOx emissions in 

2008. Marine transportation’s contribution to nation-wide emissions was 5%.

Residential &

Commercial 4%

Pulp & Paper 2%

Petroleum 23%

Other Industrial 6%

Electric Power 

Generation 11%

Transportation 54%

Transportation 5.4%

Off-road 20%

Rail 5%

Cars & Trucks 

Air 3%

Marine 5%

Non-Ferrous

Smelting & Refining 33%

Pulp & Paper 2%

Petroleum 22%

Other Industrial 10%

Electric Power 

Generation 25%

Off-road 0.2%

Rail 0.1%

Cars & Trucks 0.1%

Air 0.3%

Marine 4.7%

NOx by sector

SOx by sector

Industrial 

Non-Industrial

Non-Industrial

Industrial 

Residential &

Commercial 3%

NOx emissions

NOx exhaust emissions generated by the Algoma fleet are inventoried on an annual basis (total emissions and 

emissions per tonne-km). As with SOx emissions, NOx declined significantly in 2009 and 2010 as a result of 

decreased business activity. When evaluated in terms of intensity (g/T-km), emissions have increased slightly 

since 2005.

Total NOx Emissions (thousands of tonnes) NOx Emissions Intensity (g/T-km)

A planned maintenance program has been developed and employed to ensure all our engines continually 

operate in peak condition. Several engine replacement projects implemented since 2007 have also 

resulted in improved engine performance on those vessels. 

Planned new vessels, with even more efficient engines, promise a dramatic reduction in NOx emissions 

estimated at 45% compared to existing vessels.

 Source: Environment Canada

2005 to 2007 data for dry bulk fleet only; 2008 to 2010 data for dry bulk & tanker fleets.

Global

Maximum

Current

Global

Maximum

2012

Algoma

2009/10 Average

North

American 

ECA

Aug 2012

ECA 

2020

1.4%

1.0%

0.1%

3.5%

4.5%

 2005 2006 2007 2008 2009 2010

12.6 13.0 12.5 13.6 10.1 10.5

 2005 2006 2007 2008 2009 2010

 0.31 0.31 0.31 0.32 0.34 0.32

Global

Maximum

Current

Global

Maximum

2012

Algoma

2009/10 Average

North

American 

ECA

Aug 2012

ECA 

2020

1.4%

1.0%

0.1%

3.5%

4.5%

 2005 2006 2007 2008 2009 2010

12.6 13.0 12.5 13.6 10.1 10.5

 2005 2006 2007 2008 2009 2010

 0.31 0.31 0.31 0.32 0.34 0.32

Air Pollution Prevention — NOx Emissions
12

Air Pollution Prevention — GHG

Greenhouse gas emissions (GHG)

Although marine shipping is the most energy-efficient mode of dry-bulk transport, it is estimated that 

international shipping emitted 870 million tonnes, or about 2.7%, of the global man-made emissions of 

greenhouse gases (CO2) in 2007 due to the sheer volume of global marine traffic. 

In addition, GHG emissions from shipping are projected to increase in the future with the growth of world 

trade. In response, IMO has developed specific measures to help reduce emissions from marine vessels 

by up to 25% to 75% from their current level. Algoma is actively assessing each of these measures for 

applicability to our fleet. 

Other Energy

Industries 4.6%

Other 15.3%

Manufacturing

Industries & 

Construction

18.2%

International

Aviation 1.9%

International

Shipping

2.7%

Other

Transport (Road) 21.3%

Rail 0.5%

Domestic 

Shipping & Fishing 0.6%

Electricity &

Heat Production 35.0%

l CO2

sions

ector Residential &

Commercial 14%

Pulp & Paper 1%

21% Petroleum

Other Industrial 21%

Electric Power 

Generation 16%

Transportation 27%

Off-road 5.6%

Rail 1.0%

Cars & Trucks 18.4%

Air 1.2%

Marine 0.8%

Industrial

Non-Industrial

In 2008 in Canada the transportation sector accounted for 27% of nationwide GHG emissions. Cars, 

trucks and off-road vehicles contributed the bulk of transportation emissions at 24%. In contrast, marine 

shipping accounted for only 0.8% of total GHG emissions in 2008.

Other Energy

Industries 4.6%

Other 15.3%

Manufacturing

Industries & 

Construction

18.2%

International

Aviation 1.9%

International

Shipping

2.7%

Other

Transport (Road) 21.3%

Rail 0.5%

Domestic 

Shipping & Fishing 0.6%

Electricity &

Heat Production 35.0%

al CO2

ssions

sector Residential &

Commercial 14%

Pulp & Paper 1%

21% Petroleum

Other Industrial 21%

Electric Power 

Generation 16%

Transportation 27%

Off-road 5.6%

Rail 1.0%

Cars & Trucks 18.4%

Air 1.2%

Marine 0.8%

Industrial

Non-Industrial

2007 Global 

CO2 Emissions

2008 Canadian 

GHG Emissions by Sector

Source: Second IMO GHG Study 2009

 Source: Environment Canada
13

GHG inventory

Algoma maintains and monitors an annual inventory of GHG emissions. Fleet total CO2 emissions were 

lowest in 2009 and 2010, primarily as a consequence of reduced economic activity and the retirement 

of older vessels from the fleet. Emissions intensity has shown a slight upward trend since 2005, believed 

to have resulted from a change in trading patterns and an increase in the number of return voyages 

conducted without cargo (i.e., less backhauls).

Algoma Total CO2 Emissions 

(thousands of tonnes)

Algoma CO2 Emissions Intensity 

(g/T-km)

Algoma is committed to reducing GHG emissions and is focused on finding new ways to reduce our 

vessels’ fuel usage. We are currently implementing energy-conserving operational and technical measures 

in our fleet. For example, over 60% of the vessels in the fleet employ waste heat recovery systems, such 

as exhaust gas economizers. Comprehensive fuel management systems will be installed in early 2011 on 

selected vessels for potential implementation throughout the fleet. 

Further significant reductions will be achieved with the introduction of new vessels to our fleet in 2013/14, 

which will emit about 40% less GHG emissions per tonne of cargo carried than our existing vessels.

Air Pollution Prevention — GHG

2005 to 2007 data for dry bulk fleet only; 2008 to 2010 data for dry bulk & tanker fleets.

 2005 2006 2007 2008 2009 2010

 494 518 500 561 416 436

 2005 2006 2007 2008 2009 2010

 12.2 12.4 12.5 13.3 13.9 13.3

 2005 2006 2007 2008 2009 2010

 494 518 500 561 416 436

 2005 2006 2007 2008 2009 2010

 12.2 12.4 12.5 13.3 13.9 13.3
14

Air Pollution Prevention

What we are doing to reduce air emissions

■ Total emissions are inventoried on an annual basis in accordance with Green Marine requirements.

■ An Energy Management Plan has been implemented, including assessment of conservation measures 

and setting of GHG reduction targets. 

■ Vessel performance is optimized through voyage planning and long-term preventative and predictive 

maintenance systems. 

■ Main and auxiliary engine replacements have provided air emission reductions due to new engine 

design technology and cleaner burning engines. Main engines on two ships and auxiliary engines on 

five ships have been replaced since 2007. All of these engines meet the latest emissions regulations 

and are upgradable to Tier II requirements. In addition, our newest full-size self-unloader (to be delivered 

in summer 2011) will be fitted with a new engine.

■ Our Technical Department is actively researching solutions and improvements to meet our air emission 

reduction strategy, including scrubbers and engine-based technologies. 

■ We are currently working with Environment Canada to better understand shipboard emissions. 

Case Study: The Algobay

In 2009, new engines were installed on the re-newed M/V Algobay, significantly reducing its exhaust 

gas emissions. A new thermal oil heating system with an exhaust gas economizer, new propulsion 

controls, and a comprehensive alarm and monitoring system were also added. Along with the new main 

engines, three new diesel generator sets were installed with electronic power management controls. 

The main engines and generators meet current Tier I emission standards and are upgradable to 

Tier II standards. In addition, an entire new forebody was designed and built to match the original 

Algobay’s stern hull structure.

These engines are significantly more fuel-efficient than those of existing vessels, with 30% lower NOx 

and GHG intensity and 10% lower SOx intensity in 2010 compared to the 2009 fleet average.

In 2010, Algoma provided an operating 

vessel as a testing platform for 

Environment Canada’s scientists to 

sample emissions generated by different 

fuels and engines at varying operating 

modes.
15

Water and Wastewater Management

New state-of-the-art Oily 

Water Separator installation 

on an Algoma ship. 

Water and wastewater management

Protecting our greatest natural resource

Ships generate several wastewater streams as part of normal operations. These include engine room 

bilge water, ballast water, black water (sewage), grey water (from showers, sinks and laundry), cargo 

hold wash water and cooling water. While these wastewaters cannot be entirely eliminated, Algoma 

vessels manage them according to all regulatory requirements and industry best practices, and we work 

to minimize their generation wherever possible. 

Wastewater discharges

The Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals, enacted 

under the Canada Shipping Act, prohibit the discharge of pollutants to water and specify discharge 

standards for treated bilge water and sewage. When in U.S. waters, Algoma vessels are also subject to 

requirements under the Clean Water Act and the U.S. Vessel General Permit. Compliance with these and 

all applicable regulations is guided by operational procedures that are verified during audits conducted on 

board annually by qualified personnel from both Algoma and external classification societies. In addition, 

treatment systems are inspected routinely by both Canadian and U.S. regulatory authorities.

Bilge water management

Bilge water accumulates in the lowest compartment of all vessels as part of routine engine room and ship 

operations. As a consequence, it typically contains a small percentage of oil. All bilge water is processed 

through an approved Oily Water Separator to meet strict regulatory standards before being discharged. The 

International Standard for oil content in treated bilge water effluent is 15 parts per million. While operating in 

the Great Lakes, however, vessels must comply with the more stringent standard of 5 parts per million of oil, 

a standard stricter than many municipal wastewater treatment plants.

Algoma’s bilge water management plan includes implementation of procedures and best practices to 

minimize this wastewater, and requires stringent record-keeping, maintenance of bilge water inventories 

and preventative maintenance for bilge water treatment equipment. The majority of our tankers are 

equipped with an integrated bilge water management system.

In addition, Algoma has invested in significant improvements in bilge water management and treatment 

technology on our older vessels. New state-of-the-art bilge water treatment systems have been installed 

on 12 of our fleet’s dry bulk vessels since 2008. Vessels that have not been fitted with new separators 

were furnished with polishing filters and other measures to improve performance. We are committed to 

eliminating any amount of oil entering the water from our vessels, through the implementation of new 

technologies and processes.
16

Water and Wastewater Management

Algoma has participated in various 

Department of Fisheries and Oceans Canada 

AIS studies, including sampling of ballast 

water from tanks for biological testing.

In 2009, a vessel was provided as a testing platform for a DFO Dye Dispersion Study, 

aimed at understanding the dispersion rates 

of biological species in enclosed waters.

Ballast water 

An essential part of vessel operations is to carry ballast water on vessels in light condition (when not 

carrying cargo) as a means to provide vessel stability when sailing. The discharge of ballast water 

sourced in another area can introduce water-borne species that are not indigenous to the discharge 

area and that may upset the local ecological balance. 

Ocean-going ships entering the Great Lakes from foreign ports have been the primary ship-mediated 

conduit for aquatic invasive species (AIS). However, the introduction in 2004 of mandatory salt water 

(ocean) exchange of ballast water and ballast tank inspections at the Port of Montreal for ships entering 

the Great Lakes has slowed or even stopped new AIS. Scientists report that no new AIS have been 

detected in the Great Lakes since 2006. 

Algoma’s Canadian flag dry and liquid bulk vessels operate almost exclusively within the waters of the 

Great Lakes — St. Lawrence Waterway and therefore are not thought to introduce AIS, but may transfer 

these species from port to port. All Algoma vessels manage ballast water according to regulatory 

requirements, maintaining ship-specific Ballast Water Management Plans and following the industry 

Voluntary Ballast Water Management Practices to Reduce the Transfer of Aquatic Nuisance Species 

within the Great Lakes. 

To further address AIS transfer risks, we participate in the Canadian Shipowners Association Ballast 

Water Working Group and take an active role in the Great Lakes Ballast Water Collaborative, a group that 

brings key stakeholders in the region together to discuss specific strategies for AIS mitigation. 

The treatment of ballast water is a rapidly expanding technology sector that Algoma is continually 

monitoring. Most commercial systems have been engineered to meet the environmental conditions and 

design parameters of ocean-going vessels. They are not yet able to meet the unique operational and 

technical characteristics of Great Lakes vessels. We continue, however, to assess treatment options and 

other measures with a view to reducing the risk of potential AIS transfer.
17

Sewage systems and treatment

Sewage and grey water generated on Algoma vessels is treated prior to discharge in approved sewage 

treatment units (Marine Sanitation Devices) in compliance with both Canadian and U.S. regulations. Algoma 

vessels comply with regulatory requirements governing wastewater discharges, including U.S. sewage “No 

Discharge Zones”, where for commercial vessels even the discharge of treated sewage is prohibited. 

Algoma recently installed new sewage treatment units on five vessels, enabling these vessels to achieve 

effluent test results well below regulated levels. These new units employ the latest membrane technology 

as part of the final treatment process, producing the lowest effluent test results of any marine sewage 

unit in operation today. The remaining vessels received significant improvements to their existing units to 

enhance performance and reliability.

Water conservation efforts to minimize the volume of wastewater generated on board the ships are 

underway, including using front-loading washing machines, low-flow shower heads and vacuum or lowflow toilets designed to reduce water use. To improve treatment systems’ performance and effluent quality, 

only phosphate-free detergents and non-toxic cleaning chemicals are allowed on board.

Dry-bulk cargo residues

Cargo residues are often generated during cargo loading or unloading operations, and from washing of 

cargo holds on dry-bulk vessels. Regulations allow the discharge of these cargo residues subject to a strict 

set of conditions, depending on the type of material and the location of discharge.

Algoma follows all regulatory requirements for cargo residues, including record-keeping and regular 

government reporting. Our crews also make every effort to minimize cargo residues and have developed 

handling and management practices to promote shore-based transfer.

Oil pollution prevention and response

Algoma’s product tanker fleet carries oil as cargo and all of our vessels carry oil as fuel. Our crews are 

well trained and skilled in the prevention of any and all oil spills. Emergency preparedness is provided 

through our Marine Emergency Response Plan and our Shipboard Oil Pollution Emergency Plans, as well as 

regularly scheduled shipboard drills and exercises. 

Shipboard equipment further supports our commitment to oil pollution prevention. The majority of 

stern-tube systems, a potential source of pollution, are either water-cooled or use environmentally 

friendly biodegradable products. In addition, hydraulic deck equipment systems are being transitioned to 

environmentally preferable lubricants.

Water and Wastewater Management
18

Waste Management

Waste management

Reducing and recycling programs

Waste generated by ships can include anything from food waste and general garbage to oily sludge, 

cargo residues and incinerator ash. All waste on Algoma vessels is managed according to legal 

requirements. The discharge of ANY materials whatsoever overboard is strictly prohibited. 

Algoma crews follow procedures set out in the ship-board Garbage Management Plans. General garbage 

is either incinerated on board in approved incinerators or recycled or disposed at land-based facilities. 

Complete recycling programs are available to Algoma’s dry-bulk fleet, including programs for paper, 

glass, metal and plastics. In 2010, an estimated 10 tonnes of mixed cardboard and paper and 25 tonnes 

of mixed plastic, cans and glass were removed from the vessels and recycled.

No industrial or hazardous wastes are incinerated on the ships. All of these types of wastes are properly 

collected and segregated for disposal at fully licensed land-based waste management facilities. For 

instance, oil and oil filters, batteries, fluorescent lamps, and electronic waste (or e-waste) are removed 

from the vessels by licensed waste transporters and recycled at approved sites. Over 2 tonnes of 

fluorescent light tubes and batteries were recycled in 2010, diverting mercury, lead and other hazardous 

substances from landfill sites where they could leach into groundwater. 

We continue to look for ways to produce less waste. We have implemented a formal waste-reduction 

program, including initiatives to further promote recycling on the ships, to work with suppliers to identify 

packaging reduction opportunities, and to reduce the use of disposable materials. To support this, all 

employees have been provided with thermos coffee mugs to discourage use of disposable cups. In 

addition, bottled water has been eliminated from the office and employees provided with refillable water 

bottles, avoiding an estimated 15,000 disposable plastic water bottles annually.
19

The Future - New 

Equinox Class Vessels

Launching a new era in environmental efficiency

Consistent with our commitment to environmental sustainability, Algoma will be 

introducing a series of new vessels to our existing dry-bulk fleet starting in 2013. 

The new vessels – called the Equinox Class – will include both self-unloaders and 

gearless bulk carriers. Developed by Algoma together with a team of world class 

vessel designers, architects, engineers and researchers, these state-of-the-art vessels 

represent the next generation of Great Lakes bulk carriers. 

These new vessels will significantly reduce the environmental footprint of our 

Great Lakes dry-bulk fleet. 

CLASS
20

Future New Vessels 

Energy-Efficient Ships

3

Exhaust Scrubbers

4

Optimized Hull Form

1

Advanced Electronic 

Engines

2

Residue Minimizing Cargo Holds

6

Ballast Water 

Treatment Solutions

5

 Optimized hull form 

The optimized high displacement hull form minimizes 

resistance and ensures maximum efficiency and performance 

of the optimized propeller. Combined with an energy-recovering 

rudder, these features produce more speed with less power, 

which translates into superior fuel efficiency and reduced 

emissions.

 Advanced Tier II compliant engines

The state-of-the-art electronically controlled engines will generate 

significantly lower levels of exhaust emissions. Combined with 

other efficiency gains, air emissions will be reduced by about 

40% per tonne-km compared to existing vessels.

 Energy-efficient ships

Heat from exhaust gas emissions will be recovered, reducing 

the requirement for thermal oil heating. Energy-efficient lighting 

will be installed wherever possible. The heated fuel oil tanks 

are grouped together and separated from the ship’s hull for 

safety and to avoid heat loss. Underwater “hard coatings” 

on the hull will reduce friction and power requirements, 

maximizing efficiency. 

 Exhaust scrubbers

The new engines will be capable of burning low-sulphur 

fuels but are designed to use residual fuels in combination 

with scrubbers. Scrubbers remove almost 100% of the 

sulphur content from the exhaust and 80% of particulatematter emissions. However, marine engine exhaust scrubber 

technology is still in development. Once available, we will have 

the necessary room to install scrubber equipment.

 Ballast water 

The design allows space for the installation of future 

ballast water treatment solutions. Tank design and coatings 

maximize ballast flow and minimize the build-up of sediment in 

the tanks. 

 Residue minimizing cargo holds

The cargo holds are designed to minimize cargo accumulation and 

facilitate cleaning. All hopper slopes are lined and any exposed steel 

is coated with impact and abrasion-resistant epoxy.

1

2

3

4

5

6

New vessel environmental features The new vessels will 

use about 25% less 

fuel than existing bulk 

carriers.

Smoother surfaces could 

reduce power requirements 

by an additional 5%.

Automated cargo hold 

washing equipment will 

minimize water use.
21

The new face of 

responsible marine 

transportation

7

8

9

 Advanced Wastewater 

Management Technology

9

Dedicated Wash Water Holding Tanks

8

Cargo Spillage Control

7

The Equinox Class design balances hull form, power 

and speed with cargo-carrying capability for optimal 

performance and environmental efficiency. The new ships 

will emit an average of 40% less air emissions per tonnekilometre of cargo carried.

 Cargo spillage control

An enclosed self-unloading boom and variable-speed discharge 

belt system will help to control cargo spillage and residues on 

the ship and minimize discharges to the environment. 

 Dedicated wash water holding tanks

All ships have dedicated wash water holding tanks to control wash 

water discharges in environmentally sensitive areas. Even deck 

run-off can be captured and directed to these wash water tanks.

 Advanced wastewater management technology

■ Integrated bilge water management system

 The bilge water management system is designed to reduce 

oily residues at source. It features mechanical seals on all 

pumps and engineered drainage systems to capture potential 

leakage. Any oily residues that do occur will be treated with a 

high-efficiency Oily Water Separator.

■ Water-lubricated stern and rudder bearings 

 Stern and rudder bearings are lubricated with water to 

eliminate oil leakage from these sources. 

■ Water-saving sewage systems

 State-of-the-art sewage treatment units treat both black 

and grey water to the latest standards with minimal water 

consumption. Vacuum toilets consume 90% less water than 

conventional flushing toilets. Storage tanks for treated wastes 

are available for use in environmentally sensitive areas.
22

Future New Vessels 

Freefall Lifeboat

 12

Habitability and Comfort

 11

 10

Ergonomic Bridge Design

The new vessels will be 

able to carry more cargo 

at increased speeds while 

using less energy.

Safety and habitability

The new vessels feature an ergonomically designed bridge 

layout and enhanced visibility from all points. All bridge 

systems can be monitored by one person. Monitors are capable 

of multiple displays. Low-light and thermal-imaging cameras 

will be used to improve safety in low visibility situations. 

Noise and vibration levels are substantially less than those 

of today’s typical Great Lakes vessel. To further enhance 

the comfort of crew members, individual cabins will have 

broadband internet access and satellite television. 

Other features: 

■ Double-hull construction, with oil storage tanks separated 

from the shell by cofferdams.

■ Land-based remote monitoring of vessel position and 

conditions, and equipment performance.

■ Mooring winches located on both sides of the unloading 

boom slewing trunnion, for operational control on either side 

of the vessel to improve visibility and safety.

■ Fully enclosed freefall lifeboat system allowing safer 

evacuation for the crew regardless of list and sea condition.

Official Green Passport 

The Green Passport for ships is a document that lists all 

materials known to be potentially hazardous used in the 

construction of the ship, its equipment and systems. A Green 

Passport will be prepared for each ship and will accompany it 

throughout its operating life. This will help ensure the safety of 

all workers on the vessels and those involved in dismantling 

the vessel at the end of its life. 

Algoma Central Corporation is currently planning 

the integration of these next-generation vessels 

into our fleet beginning in 2013.

 10

 11

 12
23

Our Earth Day Contribution

Employees marked Earth Day on April 22nd this last year by 

volunteering at Malcolmson Eco-Park, a 36-acre natural ecological 

park located adjacent to Lock 1 of the Welland Canal in St. Catharines, 

Ontario. The park is noted for migrating bird species and is home to 

many rare Carolinian species of trees. It also boasts several walking 

and cycling trails for the public’s enjoyment. Our team, led by the 

park’s forestry expert, worked hard to clear an area in the park of a 

highly invasive shrub known as buckthorn, which crowds out native 

plants. It was a worthwhile effort and a good day was had by all. 

Earth Day Contribution
24

“When one tugs at a single thing 

in nature, he finds it attached to 

the rest of the world.” 

– John Muir
Algoma Central Corporation 

63 Church Street, 

St. Catharines, Ontario L2R 3C4 

905.687.7888

www.algonet.com