Energy Efficiency and the Environment Istanbul Captain Stephen Bligh 23rd February 2012
Agenda Introduction Environmental Issues - SOx and Nox (scrubbers/LNG) - CO2 Emissions - Ballast water
Energy Efficiency Break SEEMP EEDI Triple E Nauticus Air E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Key business questions for environmental positioning Will I be regulated, when, and what for? Will I win or lose in a carbon-constrained world? Do I face brand, customer, or other stakeholder risk? How much will compliance cost? Can a positioning strategy manage risks/uncertainties? Am I making the right technology decisions? What are the risks of acting too early or too late? How much risk is there in long-term capital deployment? Can I create competitive advantage for myself, and how?
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Environmental requirements are changing the face of shipping Regulations and stakeholder requirements are becoming stricter – environmental issues are key strategic drivers
The main issues today are emissions to air and ballast water discharge – with grey water, waste handling, ship recycling and noise pollution as runners up E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Demanding regulatory timeline CO2
SOx
NOx
Other
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Ballast
Air emissions
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Regulatory Frame – MARPOL Annex VI, SOx, NOx, CO2 ECA Emissions requirements for existing fleets
ECA Emissions requirements for newbuilds
Requirement
Compliance option
Requirement
Compliance option
2010: SOx < 1,0% 2015: SOx < 0,1%
• HFO + scrubber • Distillate fuels • LNG
2011: NOx Tier 2 2016: NOx Tier 3
• Scrubber + SCR • LNG
SEEMP reqt’s for existing fleet
EEDI eqt’s for newbuilds
Requirement
Requirement
Compliance option
Reporting and documentation EEOI ?
Emission calculation
Match baseline Design, technology, fuel
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Existing Sulphur Emission Control Areas (SECA) Baltic Sea SECA was the first to enter into force as a SECA in 2006 Followed by the North Sea in 2007 1st July 2010 – max. sulphur 1% 1st January 2015 - max. sulphur 0.1% No IMO NOx regulation yet, but expected before 2016. National regulations established
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ECA; Huge implications for shipping to North America IMO Emission Control Areas (ECA) place strict limitations on SOx and NOx emissions From August 2012 and within 200NM of NA, 1.0% max sulphur content - Equivalent measures accepted
From 1 January 2015, and within 200NM of NA, sulphur control options are; - 0.10% max sulphur fuels - Exhaust gas cleaning - Fuel switching / LNG
EPA estimates 6000 – 8000 ships in international trade affected Don’t forget NOx Tier 3 for newbuildings after 1 January 2016
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Future ECAs?
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Regional Regulation and Legislation
Marpol Annex VI ratified
2004
2005
Aug 11th SECA 1, directive into force 1.5% S
May 19th Marpol Annex VI global S limit 4.5%
2006
2007
Aug 11th SECA 2, directive into force 1.5% S
May 19th Marpol Annex VI SECA1, S limit 1.5%
2008
2009
Nov 11th Marpol Annex VI SECA2, S limit 1.5%
2010
July 1st CARB Phase 1, MGO (max 1.5%) or MDO (max 0.5%) use only within 24NM
2011
July 1st ECA limit down to 1.00% S
2012
2013
Jan 1st Global limit down to 3.50%
2014
2015
2016
Jan 1st ECA limit down to 0.10% S
2017
2018
Global S limit down to 0.50% (subject to review)*
2019
2020
2025
Jan 1st CARB Phase 2, Max 0.1% distillate use only within 24NM
Jan 1st Directive S limit of 0.1% at berth
It has been suggested that there should be a review in 2018 to assess fuel availability. Depending on the outcome of the review, the 0.50% sulphur global standard may be delayed to 2025 instead of 2020. E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Shipping CO2 emissions – why the world cares Shipping burns approximately 335 million tons of fuel per year… while transporting 85% of the worlds goods The associated emission of CO2 is around 1 billion tonnes of CO2 per year
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Political bodies shape global efforts to reduce shipping GHG UNFCCC. Arena for international climate negotiations. Considers shipping key source of climate change mitigation and adaptation funding
IMO. Working to reach industry wide, global agreements reducing the amount of CO2 emissions from international shipping.
EU. Proposes to cut shipping CO2 by 40% by 2050 when compared with 2005 levels. Working on regional regulations. E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Regulatory options for shipping Technical / operational measures EEDI SEEMP EEOI
Market Based Measures (MBM) cap and trade system levy system other approaches (several on the table)
Speed limits seeing renewed interest E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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What is the maximum reduction achievable?
Known measures Business as usual scenario
Breakthrough technologies needed
CO2 emission targets
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What does the (GHG) future hold? UNFCCC process will at least in the short term remain less significant than both the IMO and EU processes EEDI/SEEMP amendments entering into force 2013, Despite “developing” Flags deferral clause, EEDI expected to become important commercially IMO MBM debate will remain problematic in 2012, stay on the agenda, but not be resolved without a UNFCCC agreement first Market-based measures will likely be established in the EU by 2015 / 2016 E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Ballast Water
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Status Ratification Entry into force 12 months after signing by: 30 states, representing 35% of world merchant shipping tonnage
Status 31 December 2011: 32 states, representing 26.46% of world merchant shipping tonnage Lebanon is the 32nd state Dec. 2011 Ratification by Panama expected 2012 E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Albania
Kenya
Nigeria
Antigua & Barbuda
Kiribati
Norway
Barbados
Liberia
Palau
Brazil
Lebanon
Republic of Korea
Canada
Malaysia
St Kitts & Nevis
Cook Islands
Maldives
Sierra Leone
Croatia
Marshall Islands
South Africa
Egypt
Mexico
Spain
France
Mongolia
Sweden
Iran
Montenegro
Syria
Netherlands
Tuvalu
Application Applies - Party to the Convention; or - Sailing in waters of a Party
International BWM Certificate Exceptions (Reg. A-3)
Emergency
Accidental
Uptake and discharge in high seas
Does not apply
Exemption (Reg. A-4) Between specified ports
Five years period
Based on risk analysis according to G7
Uptake and discharge in the same location
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Ballast free ships
Local trade (flag and operation only under same party)
Local trade (flag of party and operation under another party only)
Navy ships
Permanent ballast water
Ballast Water Management Convention The Ballast Water Management Convention requires - Ship-specific Ballast Water Management Plan approved by Administration onboard - Ballast water record book onboard - Ballast water exchange (Regulation D-1) - Approved ballast water treatment system (Regulation D-2)
The Convention will require compliance for all ships and offshore structures regardless of age and size
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IMO BWM Convention Implementation Schedule
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Ballast water – looming bottlenecks? Estimated number of vessels required to install ballast water treatment system according to MEPC 61 18000 16000 14000 12000
Vessels constructed from 2009 to 2011 (greater than 5,000 cubic metres） Existing Vessels (less than 1,500 or greater than 5,000 cubic metres）
How to equip ~80000 vessels in less than a decade?
Existing Vessels (between 1,500 and 5,000 cubic metres)
10000 8000
Newly constructed vessels (greater than 5,000 cubic metres)
6000 4000
Newly constructed Vessels (less than 5,000 cubic metres)
2000 0 2009
2010
2011
2012
2013
2014
2015
2016
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2017
2018
2019
2020
What happens upon ratification Class Requirements for treatment
Entry into force within 12 months
- Approval:
Ships with a flag party to the Convention: -
-
Approved BWM Plan (Exchange or Treatment) Ballast water record book Initial BWM surveys International Ballast Water Management Certificate
- Surveys (Initial if not done previously): -
Ships sailing in waters of a party to the Convention: - Certificate of Compliance with the Ballast Water Management Convention
Installation surveys Documentation Commissioning New Certificate
Sampling is different between D1 and D2
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Control and instrumentation Piping systems Foundation (if necessary) BWM Plan (only the treatment part if done previously)
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Energy Efficiency Monaco Captain Stephen Bligh 23rd February 2012
Energy efficiency – high on public as well as ship-owners agenda Shipping is responsible for greenhouse emissions of around 1 billion tonnes of CO2 per year – 3,3% of total emissions Improving efficiency have positive effect on - Green house gas emissions - Fuel costs/Energy
Energy efficiency and behaviour changes can give cost savings of 5 – 15% Systematic and dedicated effort is needed to realise the saving potential From the introduction from OCIMF : “…management guidance with the aim of encouraging companies to introduce CO2 reducing practises…” … may be included in the TMSA at future date”.
Oil Majors are asking – what are you doing about SEEMP !! E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Marginal Abatement curves for world fleet 2030 Average marginal CO2 reduction cost per option - World shipping fleet in 2030 220
Cost per ton CO 2 averted ($/ton)
180
140
100
60
20
-20
-60
-100 0
100
200
300
400
500
CO2 reduction (million tons per year)
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600
700
800
How to improve energy efficiency? Principal ways of improving energy efficiency, reducing costs and CO2 emissions: (long term perspective)
More efficient operations, e.g. weather routing, control of energy consumers onboard, speed optimising and trim
The introduction of more efficient technology – in particular related to engines, propeller designs, hull forms and hull coatings
Fuel shift from residual fuel oils, marine gasoil and diesel oil to use of natural gas, and later to biofuel and fuel-cells
Improved infrastructure, including port turn-around times, port capacity and size of ships
Improved cooperation between players, including owners/charterers and contractual issues
E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Sun in the horizon – if you navigate the obstacles
Green
Cost-effective
Opportunities for those who take a proactive approach towards environmental challenges
Opportunities for those who overcome the short term obstacles and focus on long term gain
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Energy Efficiency – what do we cover in our projects Voyage Performance
Main and Aux engines
Fleet planning, route and ship allocation
Steam plant efficiency
Chartering/contracts
Main Engine efficiency
Voyage planning
Aux Engines efficiency & utilization
Speed Management
Aux boilers efficiency and utilization
Weather routing & sea current
Port/harbour operations
Ship Performance
Energy Consumers
Hull condition
Cargo Operations
Propeller condition
Thruster operations
Autopilot & rudder
Trim and draft
Ventilation, HVAC, lights
Hull Appendages & tech. mod.
Insulation and energy losses
Water productions
Incinerating
Management and organisation
Fuel Management
Fuel quality and quantity
Performance Management
Bunkering procedures
Strategy & tactical plans
Fuel sampling
Roles & responsibilities
Culture & awareness
Competence & training
Cooperation & communication
Integrate with environmental profile
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Energy management have strategic, tactical and operational elements Company visions and goals Market trends, regulations and development Fleet characteristics, ship types and size
Strategic
Route layout and frequency Vessel deployment, size, speed
Tactical
Spot market vs. Time Charter Investment in new technology
Operational
Revenue / cost optimisation Minimising specific fuel consumption Performance mgmt and acceptance criteria
E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Energy Management requires cross departmental cooperation CEO / BOD Finance
Commercial / sales
Procurement
Operation
Tech mgt
Projects & NB
Management and org Fuel Management Main and aux engines Voyage Perf
Voyage Perf
Consumers Ship Performance
Paradox - nobody is fully accountable for fuel consumption either on-board or on-shore E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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The focus in the offshore market is changing Companies are more closely monitoring Offshore Companies performance - On energy efficiency - HSE - Downtime
Vessels are compared on fuel consumption - Statistics not presenting full picture - Only total consumption per NM is measured
‘Company’ so far not been able to document energy efficiency within operations There is increasing focus in the market on the environmental footprint on the whole lifecycle of oil production E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
Voyage planning and speed management opportunities
Source: Statoil Transit Port
Opportunities:
Opportunities:
Voyage planning
Plan to arrive at port opening
Speed management Weather routing/optimisation
Minimize time in port to free time for transit
Autopilot
Transit Opportunities: Voyage planning
Waiting for platform
Speed management
Opportunities:
Weather routing/optimisation Autopilot
Minimize waiting time DP operation Opportunities: Optimise DP operation
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Optimise utilization of DP outside 500 m zone
Develop KPI structure for monitoring of vessel performance
2
Establish database for vessel performance data
2
Improve seafarer knowledge and competence to reduce fuel consumption
2
Create procedures for optimal settings for trim and ballast
2
Create procedures for optimal vessel speed in voyage planning
3
Determine optimal antifouling system to be used
3
Determine optimal hull cleaning programme
3
Determine optimal propeller cleaning programme
4
Implement Weather routing reporting on all vessels
4
Include more time in voyage planning to allow for speed reduction
4
Create procedures for engine, hull and propeller monitoring
3
Ensure fully functional sensors and equipment for engine performance monitoring
3
Install system for engine performance monitoring
4
Optimisation of cylinder oil consumption
3
Tune engines that have shown low performance figures
3
Review NB specification to ensure required sensors are installed for performance monitoring
2
The real challenges occur when it comes to implementation and benefit tracking E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Fully implemented
Awaiting implementation
Have tested
Energy efficiency initiative
Done some analysis
Mere idea
Energy efficiency is common knowledge today – most companies have a long track record
Where do we see companies fail to succeed own fuel mgmt? No defined Energy Management vision - Unclear strategy - Embedded organisational barriers
Lack of resources Lack of structured approach - Focus on single initiatives - Difficult to prioritise
Principles of change management not applied in projects - Managing people during change - Performance management
Poor implementation
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Commitment and continuous effort are the only route to sustainable energy efficiency improvements +5% Cost Baseline -5% -10% -20%
Commitment to Energy mgmt Implementation
Further Investments Investments
Time Increasing energy costs
Decreasing energy costs by applying simple energy efficiency initiatives “Housekeeping”
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Further savings due to promotion of energy-efficient practices
Saving energy becomes company culture
The ship energy flow has to be assessed to identify the improvement areas for “ship as a system”
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70 – 95% of total energy consumption is used for propulsion of commercial ships
Baseline: Design curve, sea trial, etc
Fuel Consumption
Measured data
Propulsion efficiency depends on technical condition of: Main Engine Hull and propeller Trim condition and use of autopilot
Speed E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Specific fuel oil consumption for engines needs to be monitored and follow up by corrective measures Test cylinder pressures and Texh vs. sea trials results (ISO corrected values) 450
140
400
130
350
120
300
110
250
100
200
90
150
80
Exhaust temperature (°C)
Pressure (bar)
Close
150
100
70 8500
50 10500
12500
14500
16500
Break load (kW) Pmax sea trial
Plan
Measure
Analyse
Report
Pcomp sea trial
Pcomp Test
Texh sea trial
Texh Test
Performance
Process, tools & competence Ship name
Pmax Test
Follow up
Identified ME saving %
Ship 1
0.7%
Ship 2
2.7%
Ship 3
1.5%
Ship 4
2.9%
Ship 5
0.9%
Good
Average
Poor
DNV have developed a framework for main and auxiliary engine performance assessment and decision support for recommended actions E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Hull condition and draft are important factors to reduce hull resistance for tank and bulk Ship Types
Viscous resistance
Wave resistance
Air resistance, rudder, etc
Tank / bulk
75-90%
10-20%
2-5%
Container, Ro-Ro, PACC
40-60%
30-50%
5-10%
Small and fast ships
30-50%
40-70%
5-15%
Influence factors (given existing hull and propeller)
Hull Condition
Trim
Surface preparations and selection of anti fouling paint
Draft and speed
Hull above WL Superstructure Cargo distribution Rudder movements
Draft Amount of ballast, bunker and unnecessary “waste” onboard
Propeller efficiency is equally important for all ship types and sizes E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Fuel quality and quantity impact on energy efficiency What We See
Prebunkering
Significant deviations in price, quality and suppliers practices between regions Bunker quantity not optimised for voyages Limited use of statistics to benchmark bunker suppliers
Bunkering process
Bunker short lifting Procedures for taking fuel samples not followed Note of Protest seldom used (NOP)
Postbunkering
Insufficient interpretation of fuel sample analysis Corrective actions not taken Claims handling (e.g. density, H2O out of spec)
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Tactical Routing, vessel deployment and speed set the basis for fleet fuel consumption Given a fleet…
… and a demand for transportation OSL
HKG ROT
LAX BCN PIR SGP
1. Design best routes (services) 2. Deploy ideal vessel to each route 3. Lay up or sell ships that are not economically viable at the time E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Speed management can be a quick win with high impact on fuel consumption Example: Route A – B Distance: 5,000 Nm / Voyage terms: 16 days / Charter speed 13.5 kts
Case 1
A
Sailing time: 15 days, 10 hrs
Normal Speed
B
FOC = 32.5 MT/day Voyage total = 502 MT
13.5 kts
8% Case 2
A
Economical speed
B
Sailing time: 16 days 13.0 kts
FOC = 29.0 MT/day Voyage total = 464 MT
8% savings achieved by optimising speed within charter terms E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Optimal route planning consider weather, currents and shallow water effects Economic effect 5%
Changed route to avoid low pressure
’
Weather routing services give captains more accurate and reliable information to plan voyages E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Two sister ships can have completely different fuel consumption on the same route
Voy no 50W39F 49W42-LPF Diff
Date
ROB SNG Oct-Nov '05 4076 Oct-Nov '05 4276 8,8 % 61
Two sister vessels (4500 teu) sailing from SNG to HAM the same week had 8,8% difference in fuel consumption
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ROB HAM 1725 2115 kUSD
HFO Dist. Days Hrs HFO cons.mt nm mt/day 2351,1 3513 17 407 138,3 2161,6 3493 17 415 127,2 (330 USD/t HFO)
Setting up a KPI structure for engine performance
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Buffer time calculator
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Main phases and objectives for a full scale Energy Efficiency project
Phase 1 Opportunity assessment
Phase 2 Solution development
Phase 3 Implementation
4 – 6 weeks
3 – 6 months
6-12 months
Objective: • High level verification and quantification of improvement opportunities • Benchmark company performance vs. leading practises • Establish a foundation for Phase 2 and 3 • Identify quick wins for possible piloting
Objective: • To prepare tailor made solutions moved forward from phase 1 for piloting or fleet implementation • Swift implementation and realisation of benefits for identified “quick wins”
Objective: • Realise the identified opportunities by efficient implementation of solution elements & training programs
DNV
Customer
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“You get what you measure” – energy efficiency requires measuring and analysis Overall fleet performance
Vessel speed mgt
Hull & propeller
Engine performance Main Engine assessment
Hull & Propeller Propulsion Efficiency Indicator 4,0E-03
Pmax Pcomp FPI Texh
(kn/HPhr)
3,5E-03 3,0E-03
31.12.2007
Warning levels
Result
Yellow
Red
Value
Maximum combustion pressure Compression pressure Fuel Pump Indicator
5
7
%
4 5
5 10
% %
3,4 % 5,1 % 3,2 %
Exhaus gas temperature
7
9
%
5,6 %
5
10
%
5
15
%
20,4 % 13,8 %
Engine efficiency (compared to new building sea trial)
2,5E-03
Pmax Pcomp Texh ∆TTC
2,0E-03 1,5E-03
∆Pscav
1,0E-03 19.12.2006
Test Date
Engine balance (compared to avereage)
08.01.2007
28.01.2007
17.02.2007
09.03.2007
29.03.2007
18.04.2007
a_Pmax Pignition
15
%
15
20 100 280
% % mm
13,8 % 26,7 % 100 % 120
Angle of maximum pressure less than 11,5 or greater than 16° Max pressure rise more than manufacturer's recommendation
11,5
16 30
deg bar
0,0 21
0
0
%
Fuel oil consumption (compared to NB sea trial)
Liberty Eagle Ballast
t/d
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Engine overload
08.05.2007
Date Liberty Eagle Loaded
Corrected comb. press. drop compared to engine ref. Corrected compression pressure drop compred to engine ref. Corrected exhaust gas temp. increase compared to engine ref. Turbo charger differential temp decrease compared to ref. Engine thermal load - MCR achivable Scavenging air cooler air side fouling (mm H2O)
49
FO consumption increase to refence per day @ NCR
[+4,31 (t/d)]
3,8 %
General observations from Energy Efficiency studies Some technical quick-wins normally appear - Propeller polishing and engine performance monitoring
Company culture is the factor with highest influence - A fuel saving program gives excellent results
The companies are set up to run operations – not improvement projects - Dedicated personnel is a prerequisite to get energy efficiency on the agenda
Attention is often low in companies not paying for the fuel - Charterers and owners should sit down together to find a winning formula
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Immediate improvement areas we often see Voyage and speed management DP Policies and practices Chartering and contracts
Trim and draft focus Propeller condition
Performance management
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1,0 7.75 - 8.35m 8.35 - 9.00m 9.00 - 9.70m
Draft
Speed Trim
13,0-15,5 knots 0,5 0,0
-0,5
Avoid
Avoid
Fair
Good
Avoid
Avoid
Avoid
Good
Avoid
Avoid
Avoid
Fair
-1,0
Optimal
1,0
15,5-18,5 knots 0,5 0,0
Good
-0,5
Good
Good
Good
Optimal
Avoid
Avoid
Avoid
Fair
Optimal
Avoid
Fair
Avoid
Good
-1,0
Optimal
1,0
18,5-21 knots 0,5 0,0
-0,5
Good
-1,0
Good
Optimal
Good
Fair
Optimal
Good
Good
Optimal
Good
Good
Optimal
Avoid
Fair
Good
Optimal
Good
What is the “typical” potential within energy efficiency Typical “easy” measures and quick wins should be in the range of 6-12%
Example
- Technical quick wins - Communication and policies on voyage, speed, DP etc.
X M USD Fuel manage ment
• Bunker quantity Surveys • Claiming density differences
Annual savings
Engines
Longer term and more effort required to gain a further 10-15% - Cultural issues and programs - Good collaboration between charterer and owner to maximise joint benefits
• AUX utilisation efficiency
Consume rs
• Engine efficiency
• Hull treatment Ship Performa nce
• Propeller treatment • Trim & draft • Autopilot
Voyage Performa nce
• Voyage planning & execution • Speed management • Weather routing
E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
& Energy
52
Benchmarking performance Organisation & Strategy 5
Fuel Management
Operations / Voyage Performance
2 ,5
0
Energy Consumers
Vessel Performance
Main & Aux Engines
E
Par
Best industry performance
23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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COMPANY
Benefit Case – Energy Efficiency SITUATION AND CRITICAL ISSUE
Management and organisation Unclear roles and responsibilities, missing guidelines and formalized processes characterize a large actor within the seismic segment. They hired DNV to improve organizational and strategic aspects regarding energy efficiency.
DNV SOLUTION
VALUE DELIVERED
Define clear targets for energy efficiency
Establishment of a new KPI structure
Establish guidelines and procedures supporting the company’s personnel in energy efficiency efforts
Increased focus on cross departmental cooperation Recommendations to improve company awareness from top management
Map and document process maps and define company procedures related to energy efficiency
Development of goals and ambitions to ensure focus on energy efficiency aspects
Roles and responsibility within the organization need to reflect a long term commitment to energy efficiency
E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Benefit Case – Energy Efficiency SITUATION AND CRITICAL ISSUE
Engine and consumers One of the world’s leading maritime groups in the tanker, gas and offshore segment want to improve their operations of engines and secondary consumers. Proposed outcome could be establishment of streamlined and controlled energy performance management processes and tools.
DNV SOLUTION
VALUE DELIVERED
Harmonise the engine reporting system for all fleet segments
Estimated improvement potential of 3 % as indicated from main engine performance analysis
Install flow meter to main consumers to enhance the quality of the consumption measurements
Estimated improvement potential of 5 % as indicated from auxiliary engine performance 10 % reduction of SFOC caused by higher average load
Update the monitoring system to include acceptance criteria and reporting of SFOC
Total savings estimated to be 12 million USD for the fleet
Utilise the reporting tool to follow up onshore where results are communicated back to the vessel
E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Benefit Case – Energy Efficiency SITUATION AND CRITICAL ISSUE
Limited voyage execution An offshore supply company struggles with high fuel costs due to limited focus on voyage planning. There seem to be a potential of reducing significant amount of fuel, but they are not in a position to handle this themselves.
DNV SOLUTION
VALUE DELIVERED
Monitor and adapt speed constantly to take advantage of arrival time and port changes during voyage
Project identified a 20% fuel reduction potential in transit mode for the fleet by improving speed management in transit
Adapt to ETA, pilot berth and canal convoys to ensure minimum waiting time
Expected saving potential for optimised port operations of 2 % of total consumption
Develop simple tools for establish optimal configuration of generator sets during a voyage based on ETA
It is assumed that weather routing will have a positive impact as operation in unfavourable weather
Include energy efficiency discussions in the contract negotiations with charterer
Expected total savings of 2.5 million USD Contact:
[email protected]
E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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DNV has significant experience from around 40 energy efficiency phase 1 projects Examples Owner's location Asia Asia Asia Asia Asia Asia Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe Europe
Ship segment Chemical tankers, Bulk++ Container Container Multi segment Multi segment RoRo Chemical tankers Container Container Container Offshore Offshore Oil tankers Oil tankers Oil tankers Passenger RoRo Seismic Seismic
Most of the projects have included all the six areas described in this scope of work and had deliverables on the suggested format
Fleet 15 ships 70+ ships 100+ ships 90 ships 60+ ships 50 ships 80 ships 100+ ships 30 Ships 100+ ships 20 ships 30+ ships 45 ships 30 ships 20 ships 3 ships 75 ships 20 ships 1 ship
Many of the projects have continued into a Phase 2 (Solutions development) and a Phase 3 (Implementation) The typical saving potential identified (and realised in Phase 2 and 3) is in the range of 5-15%
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Products and services
Ship Energy Audit
Captain Stephen Bligh 23rd February 2012
What is the benefit of conducting a ship energy audit Why perform a Ship Energy Audit - Environment - Economical - Better image towards: - Charterers - Regulatory bodies
-
Public opinion Competitive edge Second-hand market Energy awareness among ships’ crew Tax refund for Norwegian owners
Why survey on-board - From experience, this ensures consistent data collection and analysis - 3rd party verification, impartiality - Verification of ”real-life” operation on-board, not written operational procedures.
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DNV’s Ship Energy Audit (SEA) Scope - Evaluate the performance of machinery in terms of fuel use on board. - The audit does not cover operational matters such as weather routing of the vessel nor factors such as trim, hull cleaning or propeller cleaning.
DNV SEA Methodology - Based on methodology for the Condition Assessment Program (CAP) - Consists of a CAP surveyor experienced in conducting SEAs.
A Ship Energy Audit consists of the following main activities: -
Review of relevant documents, reports and logs Interviews with key staff Witnessing normal operation of the vessel Performance testing of diesel engines and boilers Sampling and evaluation of fuel oil Identification of potential Energy Reduction Areas Issuance of technical report with recommendations regarding fuel savings
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DNV SEA cover the whole ship based on consistent data collection, analysis and verification of real-life operation.
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DNV Ship Energy Audit How is the work performed Sailing with the vessel - Two technical experts follow the vessel for minimum two/three days - Interviews with officers onboard - Reviewing logs and procedures
Perform running test - Test main engine on different loads - Test auxiliary engines on different loads and modes of operation - Witness cargo operations
Perform engine diagnostics - Pressure indications of engines on different loads - Register performance and environmental data - Perform analyses of engines’ condition
Propose improvements
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DNV Ship Energy Audit What is delivered Report showing - Breakdown of energy consumers - Analyses of engines performance - Fuel quality and separator efficiency
Improvement potentials -
Fuel Reduction potential Operational improvement potential Technical improvements Maintenance improvements
Savings - Fuel savings - Lube oil savings
Other recommendations - Minor improvements - Simple modifications - Operational changes
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Charterer requirements are driving Ship Energy Audits Verification of “real-life” operation on board Analysis includes: - Benchmarking against sea trial / shop test data - Comparing performance tests with reference data for: - M/E - D/G - Boiler
- Calculations of SFOC, CO2 - Comparison of electric design load, actual load, discrepancies - Comparison of aux boilers performance with sea trial data
Delivery includes: - Report stating the current energy usage compared to - Design figures and sea trial data - Experience from similar vessels routines
- Suggestions for further optimization, if relevant - Declaration that the ship has undergone a ship energy audit E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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DNV – More Energy Efficiency From Early Design to Daily Operation Captain Stephen Bligh 23rd February 2012
Pre-Contract Phase Design Development & Bid Assessment Optimisation already starts before contract signing Structured approach to develop fit-for-purpose designs - Business case scenario to identify and fine-tune requirements, analyse risks - Define optimal vessel fleet and main dimensions
Technical evaluation - Specification review and benchmarking - Outline and Full building specifications
Performance evaluation - Assess and benchmark available tenders - Comparison to world fleet and/or competitors - Fuel Cost Calculator
Weighted combination of results - Best overall performer tailored to individual requirements
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Pre-Contract Phase Design Development & Bid Assessment Fuel Cost Calculator
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Hullform Optimisation Setting the right main dimensions offers first potential fuel savings Relating to operational profiles - Determine the best performer for realistic operation on intended trade
Applying state-of-the-art numerical methods in order to: - Minimise resistance - Assess and improve propulsion system - Improve seakeeping abilities - Global approach, addressing all design constraints
Initial design
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Improved design
Vessel Performance Monitoring & Benchmarking Voyage execution and the related possible savings are often underrated Only what gets measured, gets done - Proper data collection on board (e.g. noon or performance reports) - Easy, uniform and reliable data transfer to shore - Centralised data storage for whole fleet
Follow-up and feedback by shore staff - Data-processing to enable comparison / benchmarking throughout fleet - Efficient KPIs and reporting scheme to management - Initiate competition amongst vessels
What DNV can deliver: Support in setting-up of reporting and benchmarking software Enhancing functionality of existing reporting software Shared workload and commitment to success E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Vessel Performance Monitoring & Benchmarking Speed-Consumption Evaluation What DNV can deliver: Assessment of vessel performance, compared to new ship condition Speed-Power Curves 70000 65000
3% Power deviation from Trial Condition
60000 Delivered Power P D [kW]
Calculation based on stateof-the-art numerical methods Tailored to available data Direct follow-up of vessel’s performance (noon reports or special performance reports) Intuitive reporting of off-spec. performance (traffic-light) Helps to avoid costly discussions around speed/consumption claims
55000 50000 45000 40000 35000 30000 25000 20000 20,0 20,5 21,0 21,5 22,0 22,5 23,0 23,5 24,0 24,5 25,0 25,5 26,0 26,5 27,0 Vessel speed [kn] Ballast
T=11.00m
T=13.00m
T=14.50m
New Predicted ship operating condition point
Current operating point
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Vessel Performance Monitoring Trim Optimisation What DNV can deliver: Easy to use trim optimisation tool (side-product from benchmarking tool)
Calculation based on stateof-the-art numerical methods Using other available data: • model tests, full-scale Easy user interface: • Three input parameters • Integrated plausibility test of input data • Customisable layout Excel-based: • No additional hardware needed on board E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Vessel Performance Monitoring Trim Optimisation What DNV can deliver: Easy to use trim optimisation tool Accumulated Savings Fuel Oil Consumption @ 34 tons/day, 650$/t
Actual project costs depending on scope and available data. Data may also be derived from benchmarking tool
$70.000 1,0% $60.000
1,5% 2,0%
$50.000 Savings [US-$]
Trim tool tailored to customer’s needs: - Vessel-specific (hull form) - Trade (drafts & speeds)
2,5%
Break even – 1 vessel/series
$40.000 $30.000 $20.000 $10.000 $0
10
20
30
40
50
60
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100 110
120
Vessel Performance Monitoring Trim Optimisation What DNV can deliver: Easy to use trim optimisation tool
Trim tool tailored to customer’s needs: - Vessel-specific (hull form) - Trade (drafts & speeds)
Break even – 1 vessel/series Actual project costs depending on scope and available data. Data may also be derived from from benchmarking tool
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Vessel Performance Monitoring Trim Optimisation What DNV can deliver: Easy to use trim optimisation tool
Trim tool tailored to customer’s needs: - Vessel-specific (hull form) - Trade (drafts & speeds)
Break even – 1 vessel/series Actual project costs depending on scope and available data. Data may also be derived from from benchmarking tool
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Fuel Efficiency Opportunities for Bulk Carriers & Tankers
Propeller & Rudder Efficiency:
Loading Condition Optimization:
Bow Optimization:
Hull & propeller interaction optimization + 5%
Ship speed vs. draft, trim + 1 to 2%
Design for actual operating loading conditions + 2 to 3%
Wake stabilization and energy recovering systems + 5 to 10%
Success level on fuel savings depends very much on: - Ship (hull and propulsion system) - Speed - Loading condition E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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SEEMP - Ship Energy Efficiency Management Plan Maritime Advisory Services Preparation of SEEMPs Captain Stephen Bligh 23rd February 2012
Energy efficiency – high on public as well as ship-owners agenda Shipping is responsible for greenhouse emissions of around 1 billion tonnes of CO2 per year – 3,3% of total emissions Improving efficiency have positive effect on - Green house gas emissions - Fuel costs/Energy
Energy efficiency and behaviour changes can give cost savings of 5 – 15% Systematic and dedicated effort is needed to realise the saving potential From the introduction from OCIMF : “…management guidance with the aim of encouraging companies to introduce CO2 reducing practises…” … may be included in the TMSA at future date”.
Oil Majors are asking – what are you doing about SEEMP !! E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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SEEMP – “Ticket to Trade” or “Efficiency Improvement Opportunity” At the IMO MEPC 62 session in July 2011, amid mounting pressure from industry and other authorities, the SEEMP was adopted and will become mandatory for all vessels at their first renewal or intermediary survey after 1 January 2013. - Under the proposed amendments to MARPOL Annex 6, Regulation 22, all ships will have to be issued an International Energy Efficiency Certificate (IEEC). - The IEEC requires, amongst other things, the presence of a SEEMP on board. - The SEEMP may form part of the ship’s Safety Management System (SMS) Main purpose is to establish a mechanism for a company and/or a ship to improve the energy efficiency of a ship’s operation that is preferably linked to a broader corporate energy management policy The SEEMP is to be customized to characteristics and needs of individual companies and ships
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Ship Energy Efficiency Management Plan – SEEMP MEPC.1/Circ.683
“Guidance for the Development of a Ship Energy Efficiency Management Plan” Recognizes that operational efficiencies will make an invaluable contribution to reducing global carbon emissions Main purpose is to establish a mechanism for a company and/or a ship to improve the energy efficiency of a ship’s operation that is preferably linked to a broader corporate energy management policy The SEEMP is to be customized to characteristics and needs of individual companies and ships E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Development of the SEEMP consists of 4 phases Planning
Implementation
Current status of ship energy usage and the expected improvement of ship energy efficiency is determined
Define how the prioritised initiatives are to be implemented on each ship
Gap assessment carried out to prioritise initiatives
Ownership of implementation clarified
Both ship internal processes and operational aspects should be covered
Each improvement initiative should be considered as a project with a defined start and end date
Self-evaluation and improvement Progress of different improvement initiatives regularly followed up
Monitoring
«
Ensure benefit realisation It is recommended the performance monitoring system should be standardised for the whole fleet
When the targets are reached, the project should be closed and the process of identifying new initiatives initiated
The monitoring system must be able to track the benefits prioritised initiative
The DNV SEEMP development builds on the guidelines developed by the IMO MEPC E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Establishing baseline is the first step Ship energy profile The energy flow within a ship can be described with a Sankey diagram as illustrated to the right Baselines can be typically found in ship and equipment design documentation and sea trial data: -
Engines: Shop or sea trial Electrical consumption: Design electric load calculations Boiler efficiency: Equipment specification and test of steam system
Operational profile -
The operational profile refers to how the ship is managed and how the equipment and the systems are operated, such as -
Route planning Passage speed management Weather routing Cargo operations
Baselines for operations are typically described/embedded in internal operational procedures.
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Ship trim Electric power management Use of autopilot Thruster operation
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Secondly, an assessment to prioritise implementation Assess energy losses (gap assessment)
Prioritise improvement initatives
The gap assessment can be carried out by performance data analysis and / or a ship energy audit
It is vital to be realistic when it comes to implementation of identified initiatives.
Data analysis might be sufficient if the company has reliable data available for each ship, while an energy audit of the ship will be necessary if this is not the case
Ranking the initiatives according to energy efficiency impact and implementation complexity is useful to prioritize the different solutions.
To ensure a practical approach, ship energy audits could be carried out for reference ships (one or two ships per sister ship class)
1st Priority
2nd Priority
INITIATIVE 2
The audit should cover both ship internal processes and operational aspects: -
-
INITIATIVE 4
Ship internal processes - Performance test of engines - Insulation of piping and steam traps - Review of engine log books Operational aspects - Electric power management - Review of the route planning process - Review in the use of bridge equipment - Review of cargo operations
INITIATIVE 3
INITIATIVE 1
LOW
HIGH
EFFORT REQUIRED
DNV’s extensive experience related to energy efficiency provides a benchmarking and prioritisation tool for the SEEMP development. Some aspects to cover and case examples are highlighted in subsequent slides. E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Thirdly, implement and monitor performance Whilst Information Technology is a great enabler in many business and operational areas, beware of falling into the trap of ‘implementing by email’
Selection of Performance Indicators - Choice of the most relevant and appropriate performance indicators is important to ensure actual realization of efficiency benefits - Performance indicators (PIs) should be a mix of company-wide and ship-specific to ensure that those chosen are aligned with the operational and strategic environment - PI choice should:
Establishment of monitoring framework -
Performance monitoring system should be standardized for the whole fleet Tracking performance and translating ‘effect’ into ‘benefit’ – for example, money saved, emissions reduced, company profit increase Use as much of existing systems as possible to reduce the burden on personnel
-
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Encourage the desired behavior Be quantifiable Be balanced Be set at the “controlling” organization level
Finally the improvement must be evaluated The progress within the different improvement initiatives should be regularly (minimum monthly) followed up by the responsible persons / department Assessment of performance should be used to modify future goals and implementation tactics A forum for sharing experience from the different initiatives should be established When the targets are reached, the item should be closed and the process of identifying new measures initiated
«
Evaluation against corporate energy management policy and integration into formal company procedures is recommended Consideration of reporting publicly to results of actions implemented should be considered as a means to demonstrate commitment to improving energy efficiency and minimising environmental impacts
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Establishing the SEEMP with DNV assistance provides rapid, simple and to the point solutions aiming at reducing fuel costs and improve environmental footprint A 3 step approach 1. Information gathering Governing manuals and procedures Vessel type, trade, configuration etc Relevant environmental plans, certifications etc SHIPOWNER
2. Validation of current status and future ambitions Interviews with key stakeholders Verification of accessible operations data Workshop for validation of current status and future ambitions
3. Preparing the SEEMP
VESSEL
Preparing the SEEMP based on available information and defined ambition Identifying opportunities for improvement to the SEEMP for future development Identifying the elements in the SEEMP that can be used fleet wide and which elements that are vessel specific and how to deal with them
IMO No. …..
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DNV assistance to shipowners OPTION 1: Establishing the client’s SEEMPs with DNV leading
OPTION 2: 2 day workshop with a high level assessment of improvement areas by DNV and client
OPTION 3: 1 day Induction/Training workshop
OPTION 4: Remote assistance to aid the client to establish the SEEMP internally
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Option 1: Establishing the SEEMP - DNV leading the process Step 1 - Information gathering Governing manuals and procedures Including management systems, communication plan
Step 2 - Validation of current status and future ambitions
Relevant environmental management, certifications, strategic plans
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Based in IMO template
Identifying opportunities for improvement to the SEEMP for future development
Using DNV-compiled industry benchmarks through related projects
Identifying the elements in the SEEMP that can be used fleet wide and which elements that are vessel specific and how to deal with them
Workshop for validation of current status and future ambitions Using DNV best practise model (as per previous slides) as a framework
© Det Norske Veritas AS. All rights reserved.
Preparing the SEEMP based on available information and defined ambition
Analysis / opinion of accessible operations data Determination of ‘quality’ in relation to relevant SEEMP measures
Including established goals, targets
Interviews with key stakeholders Based on nominated ‘responsible’ people for each SEEMP measure
Vessel type, trade, configuration etc
Step 3 - Preparing the SEEMP
Facilitating replication of format to other vessels in fleet
Option 2: Two days workshop – DNV supporting the process Project Objective: - To establish a SEEMP for the client, with targeted improvement areas based on a high level assessment of current performance against DNV’s capability established on the experience gained from energy management projects delivered world-wide and complementary work conducted by the entire DNV organisation in the areas of fuel management, ship design, statutory and class services.
Deliverables: - Ship Energy Efficiency Management Plan customised to the characteristics and needs of the client
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Option 3: One day Induction/Training workshop – DNV outline assistance Project Overview: - To Support and train the client in establishing targeted improvement areas based on the knowledge and experience of DNV so as to allow the client to produce individual SEEMP plans. - The capability ruler tool would form the basis of prioritising potential improvement areas, however these would be based on clients experience and knowledge, with DNV’s assessment.
Deliverables: -
Greater understanding of the requirements Facilitated workshop/brainstorming on energy efficiency potential Elementary prioritisation of potential efficiencies Data to allow the client to complete SEEMP customised to the characteristics and needs of the client
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Option 4: Remote assistance – DNV support Project Overview: - To establish a SEEMP for the client, with guidance through the planning and implementation phase by DNV and a review of the SEEMP. - DNV will distribute a template and guide the client through the planning and implementation of the SEEMP including a thorough review and comments on the final SEEMP, ensuring it meets the IMO guidelines and the activities are SMART
Deliverables: - On going support and summary review of the final SEEMP produced by the client
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Further information on SEEMP OCIMF has a more extensive guideline
Visit www.dnv.com/SEEMP Free DNV download Conctact Maritime Service Centre, Greece at
[email protected]
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EEDI - Energy Efficiency Design Index
Captain Stephen Bligh 23rd February 2012
New requirements to energy efficiency from 2013 The EEDI requirements will apply to new ships above 400 GT: - for which the building contract is placed on or after 1 January 2013; or - in the absence of a building contract, the keel of which is laid or which is at a similar stage of construction on or after 1 July 2013; or - the delivery of which is on or after 1 July 2015 Attained EEDI to be calculated for all ship types defined in regulation, compliance with required EEDI mandatory for a subset A SEEMP will have to be present onboard all vessels at the first IAPP certificate renewal or intermediate survey after 1 January 2013, when an International Energy Efficiency Certificate will be issued.
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The EEDI - what is it? Clear parallel to the mileage standard in the automotive industry, but taking the “benefit to society” (i.e. transport capacity) into account;
Environmental cost Attained design CO2 index = Benefit for society In more specific terms….
C F SFC P Attained design CO2 index = Capacity Vref The index is defined as: grams CO2 / capacity * nautical mile
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The evolution of an index The principle:
This image cannot currently be display ed.
This image cannot currently be display ed.
Japan: MEPC 57/4/12 This image cannot currently be display ed.
Denmark: GHG-WG 1/2/1 This image cannot currently be display ed.
MEPC 58/4 This image cannot currently be display ed.
USA: MEPC 58/4/35 This image cannot currently be display ed.
MEPC 58/23
MEPC.1/Circ.681 This image cannot currently be display ed.
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The Formula - Explained Main Engine
Aux. Engine
Waste heat and shaft motors
Efficient design options
neff nPTI M neff M nME ∏ f j ∑ PME (i ) ⋅ C FME ( i ) ⋅ SFCME (i ) + (PAE ⋅ C FAE ⋅ SFC AE *) + ∏ f j ⋅ ∑ PPTI ( i ) −∑ f eff (i ) ⋅ PAEeff (i ) ⋅ C FAE ⋅ SFC AE − ∑ f eff (i ) ⋅ Peff (i ) ⋅ C FME (i ) ⋅ SFCME (i ) j =1 i =1 i =1 i =1 j =1 i =1 Capacity ⋅ Vref ⋅ f w
Ice strengthening factor
Transport work capacity
Weather factor
The basic principle is retained but complexity increased Minor adjustments can be expected but no major changes Calculation methods for diesel-electric and hybrid propulsion systems to be further explored, expected finalized in 2014 No guidelines on weather factor fw at present Guidelines on CO2 abatement technologies (Peff) to be developed E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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The Formula - Explained neff nPTI M neff M nME ∏ f j ∑ PME ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) + (PAE ⋅ C FAE ⋅ SFC AE *) + ∏ f j ⋅ ∑ PPTI ( i ) − ∑ f eff ( i ) ⋅ PAEeff ( i ) ⋅ C FAE ⋅ SFC AE − ∑ f eff ( i ) ⋅ Peff ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) j =1 i =1 i =1 i =1 j =1 i =1 Capacity ⋅ Vref ⋅ f w
nME ∑ PME ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) i =1
75% of ME MCR
ME Specific Fuel Consumption at 75% MCR
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The Formula - Explained neff nPTI M neff M nME ∏ f j ∑ PME ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) + (PAE ⋅ C FAE ⋅ SFC AE *) + ∏ f j ⋅ ∑ PPTI ( i ) − ∑ f eff ( i ) ⋅ PAEeff ( i ) ⋅ C FAE ⋅ SFC AE − ∑ f eff ( i ) ⋅ Peff ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) j =1 i =1 i =1 i =1 j =1 i =1 Capacity ⋅ Vref ⋅ f w
(PAE ⋅ C FAE ⋅ SFC AE *)
Power AE - Function of ME power
AE Specific Fuel Consumption at 50% MCR
1200
AE Power
1000 800 600 400 200 0 0
5,000
10,000 15,000 20,000 25,000 30,000
ME Power
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The Formula - Explained neff nPTI M neff M nME ∏ f j ∑ PME ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) + (PAE ⋅ C FAE ⋅ SFC AE *) + ∏ f j ⋅ ∑ PPTI ( i ) − ∑ f eff ( i ) ⋅ PAEeff ( i ) ⋅ C FAE ⋅ SFC AE − ∑ f eff ( i ) ⋅ Peff ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) j =1 i =1 i =1 i =1 j =1 i =1 Capacity ⋅ Vref ⋅ f w
Effect of fuel reduction devices for propulsion power
Effect of shaft electrical motors and fuel reduction devices for electrical consumption like
- No updates yet, to be updated
- WHR - More to come
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The Formula - Explained neff nPTI M neff M nME ∏ f j ∑ PME ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) + (PAE ⋅ C FAE ⋅ SFC AE *) + ∏ f j ⋅ ∑ PPTI ( i ) − ∑ f eff ( i ) ⋅ PAEeff ( i ) ⋅ C FAE ⋅ SFC AE − ∑ f eff ( i ) ⋅ Peff ( i ) ⋅ C FME ( i ) ⋅ SFC ME ( i ) j =1 i =1 i =1 i =1 j =1 i =1 Capacity ⋅ Vref ⋅ f w
Capacity – DWT or GT depending on ship type Vref is design speed at Tmax and 75% MCR fw is weather factor
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Reference line with data points
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Ship types included in EEDI
General reduction in EEDI %
0% -10% -20% -30%
In addition roro and passenger vessels are scheduled to be included as soon as calculation methods and reference lines are ready Ship with diesel-electric, turbine or hybrid propulsion system will not be included before calculation methods are developed The reduction factor for small ships will be reviewed in 2013 E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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DWT/GT
Example – VLCC not meeting 2013 requirements Energy Efficiency Design Index 25.000
Tanker VLCC IMO No.: Attained EEDI
2,520
Phase 0: 1 Jan 2013 – 31 Dec 2014
20.000
Required EEDI
2,509 Compliance Index 100,4 Calculation
753303
Attained EEDI New ships from New ships from New ships from New ships from Reference line
EEDI
15.000
10.000
1.1.2013 1.1.2015 1.1.2020 1.1.2025
5.000
0.000 0
50,000
100,000
150,000
200,000
250,000
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300,000
350,000
400,000
450,000
Source: BIMCO
Ship types covered by EEDI requirements
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EEDI – timeline for implementation and entry into force July 2011 – Adoption at MEPC 62 March 2012 - MEPC 63 - Guidelines for minimum propulsion power
October 2012 - MEPC 64 - Guidelines on voluntary structural enhancement
January 2013 – Entry into force, Phase 0 July 2013 - MEPC 65 - Guidelines for CO2 abatement technologies - Review of requirements for small ships and large tankers and bulker
March 2014 - MEPC 66 - Roro, passenger, diesel-electric and hybrid propulsion
January 2015 – Phase 1 and review point E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Triple-ETM DNV’s Environmental & Energy Efficiency Rating Scheme Captain Stephen Bligh 23rd February 2012
In addition to cost and legislative challenges, stakeholder pressure, influence and demands are increasing
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The business case
Producers of goods and services are demanding green supply chains
Shipping companies have a need to show that their ships are environmentally superior
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Ships documenting good environmental performance will stand out in the market
Triple-ETM Voluntary environmental performance rating scheme for new and existing ships
1
Has four levels with ‘1’ as the best Key elements: - Environmental management - Fuel efficient operation - Energy efficient design - Verifiable systems for monitoring, measurements and documentation
2 3 4
Successfully used by tanker, container and ro-ro ship operators
Sustained
Systemized
Heightened awareness
Independent of class, age and flag Designed to demonstrate active environmental management and energy efficient transportation E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Leading
Triple-ETM levels
1 2 3 4
• • • •
• • • •
Environmental risk assessment Minimized discharge to sea Sulphur content in fuel < IMO average Verified EEDI for new ships
Certified EMS SEEMP implemented EEOI trended over time Verifiable fuel oil measurements
Implemented Environmental Management System SEEMP established with clear targets Calculation of EEOI Environmental awareness survey completed
• Environmental policy and targets in place • Verified compliance with current environmental rules and regulations • Quality testing of all fuel used
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• • • •
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Triple-ETM rating Rating accomplished through: 1. Self-assessment 2. DNV verification 3. Triple-E rating declaration
Published on www.dnv.com/triple-e Valid for 15 months Can be renewed or upgraded any time Issued for individual ship only
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Triple-ETM requirements
Ship specific
Company specific
Level 4 An environmental policy in place Current environmental regulations within emissions to air and discharge to sea complied with
Bunker fuel records kept and maintained including fuel log books and bunker delivery notes Quality testing of all bunker deliveries by internationally recognised fuel testing service
Level 3
Level 2
An Environmental Management System incl. clearly defined policies, KPIs and targets implemented
A Certified Environmental Management System implemented
Calculation and monitoring of Energy Efficiency Operational Indicator (EEOI) Calculation of annual average sulphur content (%) of fuel used
An environmental risk assessment carried out Environmental training of crew and management implemented, based on findings from awareness survey
An environmental awareness survey completed with training needs and improvement areas identified
A Ship Energy Efficiency Management Plan (SEEMP) established and targets set
Level 1
A Ship Energy Efficiency Management Plan (SEEMP) with targets has been implemented, monitored and followed up
No discharge to sea from harmful substances
Energy Efficiency Operational Indicator (EEOI) used to document energy efficient performance
Exhaust gas measurements to document efficiency of installed exhaust gas cleaning systems, when operating in areas with specific emission regulations
Verifiable fuel oil consumption measurements An Inventory of Hazardous Materials
A type approved Ballast Water Treatment System
Sulphur content of fuel used < IMO average (%) EEDI to be calculated and verified for new ships according to IMO Guidelines
E
A detailed specification of all Triple-ETM requirements will be provided to clients entering the rating scheme. Triple-ETM requirements may be amended according to emerging regulations.
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Triple-ETM tools 1) Triple-E Guideline 2) Self assessment tool
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Value of a TripleE rating E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Reference clients
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“Seaspan sees the Triple-ETM as a good way to support our efforts in reducing our impact on the environment and at the same time preparing ourselves for the uncertainty of upcoming regulations.” “The Triple-ETM will enable Seaspan to determine the energy efficiency and environmental status of our ships.” “We will measure our energy consumption and take steps to manage and reduce it, thereby improving the overall efficiency of our entire fleet.”
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Peter Curtis, Vice President and responsible for the overall operations and commercial management at Seaspan Ship Management Ltd
Triple-E rating 3: Environmental management system in place Environmental awareness survey Ship Energy Efficiency Management Plan (SEEMP) Energy Efficiency Operational Indicator (EEOI) Calculation of annual average sulphur content of fuel used Compliance with current environmental regulations within emissions to air and discharge to sea Quality testing of all bunkers E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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© Seaspan Corporation
Value of a rating Select the environmental ‘best performers’ for charter Optimal fuel efficiency of chartered in ships
Basis for incentive schemes
Meet customers green expectations
Improve green image Rated vessels have a verified green performance
Stay in the forefront of green rules and regulations Energy efficient operation and fuel saving Branding of ships’ performance Benchmarking of fleet
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Links to international rules and regulations E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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International Maritime Organization United Nations agency with responsibility for the safety and security of shipping and the prevention of marine pollution by ships Has developed technical and operational energy efficiency measures to reduce the amount of CO2 emissions from shipping New requirements adopted during last MEPC meeting July 2011: EEDI (from 1 Jan. 2013) SEEMP (from 1 Jan. 2013) EEOI voluntary guideline
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Industry drivers
“Climate change is a serious issue requiring immediate and meaningful
action across government, industry, consumers and society “ “Nike has set clear goals to reduce our own environmental footprint and we continue to act to uphold those goals in our supply chain “ Quoted from www.nike.com E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Triple-E vs. international rules and regulations Triple-E rating is voluntary and not an industry requirement Triple-E requirements based on current and emerging international environmental rules, regulations and industry trends Makes use of and provide practical guidance to relevant IMO environmental indicators – SEEMP, EEOI, EEDI Triple-E verifies SEEMP
implementation Triple-E verifies that EEOI is calculated over time
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A Triple-E rating verifies: Emissions to air SEEMP Verified implementation and follow-up of Ship Energy Efficiency Management Plan (SEEMP)
Optimal fuel efficiency from implemented SEEMP with clear targets monitored and followed up
Environmental Management Vessel part of company Environmental Management system (ISO 14001 or equivalent)
Fuel consumption -Verifiable fuel oil consumption measurement system -Sulphur content of fuel used < IMO average (%)
Environmental risk Environmental risk an integrated part of management system
EEOI Energy Efficiency Operational Indicator (EEOI) or equivalent, used to document energy efficient operation
Inventory of hazardous materials Compliance with IMO Convention for the Safe and Environmentally Sound Recycling of Ships 2009
Fuel quality Quality testing of all bunkers
Sufficient on-board storage facilities for delivery ashore
EEDI EEDI calculated and verified for new ships
Discharge to sea Oily water < 5 ppm No discharge of untreated sewage or grey water
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Garbage
Environmental awareness and competence Enhanced environmental competence and awareness for crew and shore staff
IMO Rules and regulations Ballast Water Treatment No discharge of harmful species from ballast water
Verified compliance with current rules and regulations (MARPOL Annex VI)
EEOI – Energy Efficiency Operational Indicator EEDI – Energy Efficiency Design Index SEEMP – Ship Energy Efficiency Management Plan
Triple-ETM rating Voluntary rating from 4 to 1 Transparent system based on reliable data Tool to prepare for new green rules and regulations Branding of ships environmental performance Verification by independent 3rd party Ship operator can govern his own rating Facilitates continuous improvement An opportunity, not a threat E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Rated ships listed on www.dnv.com/triple-e
Triple-E contract for 8 vessels Triple-E contract for 1 vessel
Contract for renewal of rating for 4 vessels
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Success story
Polarcus (Dubai):
Energy efficiency + SEEMP + Triple-E rating (8 vessels) -
an example of how DNV’s maritime services bundled together create added value for our clients
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www.dnv.com/triple-e
[email protected]
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‘Nauticus Air’
Captain Stephen Bligh 23rd February 2012
DNV ’Nauticus Air’ The tool: ‘Nauticus Air’ is an environmental accounting tool for monitoring of the energy efficiency and environmental performance of ships in operation based on IMO guidelines. ‘Nauticus Air’ uses the daily registration of operational data through ‘noon reports’ from the vessel. The data is transferred to and hosted in the DNV data ware house where further processing is carried out by means of the Cognos report generator. Aggregated data is available for the customer through a web access solution. Captured data is treated confidentially and will only be presented in aggregated and anonomised form. ‘Nauticus Air’ supports: - development of Ship Energy Efficiency Management Plans (SEEMP) - benchmarking of individual vessel’s performance against comparable ships in similar trade - establishing of performance baselines for setting targets and KPIs and thereby document continuous improvement - documentation of energy efficiency performance versus authorities and in connection with rating/incentive schemes
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DNV ’Nauticus Air’ Aggregated/calculated values reported: Energy Efficiency Operational Indicator (EEOI) – as rolling average (actually a CO2 index) Heavy Fuel Oil consumption – daily report NOx emission statistics can be established provided that ship specific NOx emission factors in terms of kg NOx per ton fuel consumed are available from the vessel’s EIAPP Technical File. Alternatively, Specific Fuel Oil Consumption (SFOC) can be used to establish appropriate NOx emission factors. SOx emission curves can be established based on reported values for the average sulphur content of the fuel in use.
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EEOI - Energy Efficiency Operational Indicator IMO initiative for monitoring of fuel consumption and CO2 emissions (CO2-Index) MEPC.1/Circ.684
“Guidance for Voluntary Use of the Ship Energy Efficiency Operational Indicator (EEOI)” Based on ‘noon report’ data: - Total fuel consumption (FOC) - Actual distance traveled (D) - Cargo mass or cargo unit (m, TEU) - Fuel Carbon Content (CF)
FOC * CF ---------------- = g CO2/ton,mile Mcargo * D
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Report Example 1
In ballast
Consistent fuel consumption
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Report Example 2
No data/report received
In ballast
Generally stable fuel consumption with almost same level when in ballast. Some days reported low consumption (probably in port – loading/unloading?)
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Example (real) – including a critical question…. EEOI g CO2/tons,nmile
Validation ?
EEOI calculation not possible since no transported cargo mass during ballast leg
Fuel Oil Consumption (MT/day)
Ballast Date
Question: Why higher fuel consumption in ballast compared to loaded condition ? E 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
Loaded
‘Nauticus Air’ – Price Structure Number of vessels in contract 1 2 3 4 5 6-9 10-19 20-29 > 30
Volume discount (%) 0 30 40 45 50 55 60 65 70
Price (€/vessel/yr) 1000 700 600 550 500 450 400 350 300
Includes (according to written contract): • The use of the ‘Nauticus Air’ daily report tool (in pdf format) • Support to implement the tool on board (ref. also ‘user instruction’) • Web access to results for the fleet in question covering: - Fuel Oil Consumption - Calculated EEOI values - SOx emissions, provided that the sulphur content of the fuel in use has been reported by the vessel - NOx emissions, provided that the NOx emission factor for the actual vessel/engine is available in terms of kg NOx per ton fuel consumed (ref. EIAPP Technical File) E• Any additional advisory services based on the reported results will be charged according separate agreement. 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Noon Report form - in PDF format
The PDF form contains a ‘SUBMIT’ button which – when ready to send the the filled in noon report – converts it into an XML format attached to a pre-addressed DNV email for easy data transfer (small size document). E (Mandatory report fields are marked in red) 23rd February 2012 © Det Norske Veritas AS. All rights reserved.
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Operational parameters - Optional
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Safeguarding life, property and the environment www.dnv.com
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