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THE ECO FRIENDLY TRANSPORTATION GROUP

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Det Stavangerske Dampskibsselskab AS (DSD) was founded on 12 February 1855. Ryfylke, the paddle steamer that came steaming around Tungenes and into Byfjorden in November 1855, signaled a new age in transport and communications, along with the arrival of the telegraph, modern banking, and the liberalization of trade and commerce. Starting with the paddle steamer, the development of DSD continues throughout Norwegian history: the company that connected the city with rural areas, and became a service provider for both the city and the country through the changing times. Since then, ships have come and gone, and a lot has changed throughout a history of almost 160 years. Technology, work methods, and social relations have transformed, but the tasks are in many ways still the same: To transport passengers and cargo safely, comfortably, and punctually, at the lowest possible cost and burden on the environment.

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Natural Gas powered Cargo Ships Nor Lines builds two natural gas-driven environmental ships

The award-winning “Environship Concept” which won the “Next Generation Ship Award” at NorShipping 2011 is now becoming a reality through the construction of two new Nor Lines ships.

for greater efficiency and capacity-maximization than today's ships. The flexibility to transport bulk cargo, containers, rail material, and frozen cargo is maintained.

The Stavanger-based shipping company Nor Lines has contracted two new natural gas-driven freight ships at Tsuji Heavy Industries (Jiangsu) Co. Ltd. in China, with delivery scheduled for 2013/2014. The company also has the option to build two additional ships.

The building of these ships also triggers large deliveries from Norwegian suppliers. More than 50% of the contractual value is related to deliveries from Norwegian companies, predominantly in new environmental technology.

The new type of ship has been developed in close cooperation with Rolls-Royce. In addition to employing natural gas as fuel, it also incorporates innovations related to hull design, propulsion systems, and onboard power production, all of which together increase energy efficiency.

The use of natural gas (LNG) as fuel brings a considerable improvement to an already eco-friendly ocean transport. We believe that natural gas is the fuel of the future for ocean-going vessels. Compared with oildriven ships, Nor Lines’ two new ships will yield more than 35% lower greenhouse gas emissions. Nitrogen oxide emissions (NOx) will be reduced by 90%, and the sulfur dioxide and particle emissions of the fuel are eliminated.

Each ship will have a capacity equivalent to 200 truckloads of cargo, and includes adaptations which allow

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Gas Buses Tide's environmentally-friendly bus operation Every day, Tide ASA contributes to a more environmentally-friendly public transportation system. The company has 1200 buses and administers 20 tender contracts, most of these with environmental requirements as one of the criteria for award. Tide has more than 50 years of experience operating electric trolley buses, and is today one of only two companies in Scandinavia that still operate these environmentally-friendly buses. The company also has 19 electric cars in operation at its facilities. Tide has had gas buses for more than 10 years, and today, approximately half of the buses in Norway run on natural gas.

The gas buses give a 20% percent reduction in carbon emissions; NOX emissions are cut by half, and SO2 emissions are eliminated. At the same time, external noise is also reduced. The company has participated in a test project related to bio-gas, the mixing of hydrogen into natural gas (hythane), as well as bio-ethanol. Successful testing of a hybrid bus has also been completed. The standard diesel fuel type used contains 7% biodiesel, which is produced in Europe under ethically sound conditions.

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Natural Gas Passenger Ferries The world's first natural gas-driven passenger ferries In the summer of 2009, Norledput the world's first three natural gas-driven passenger ferries into operation between Nesoddtangen and Aker Brygge. This is Norway's busiest commuter connection, with over two million travelers per year.

The ferries are designed by Multi Maritime AS and constructed at the STX shipyard in Lorient, France. ‘Kongen’ (The King), ‘Dronningen’ (The Queen), and ‘Prinsen’ (The Prince) are all 49.9 meters long and 11.1 meters wide. The ferries are of universal design and can take 600 passengers, including 10 wheelchair users.

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Natural Gas Car Ferries The world's first 100% natural gas-driven ferries On 28 February 2012, Rogaland County Council gave the green light for Norled's environmental proposal for natural gasdriven ferries for the Tau commuter connection. Norled's board of directors ratified the construction of the ferries the following day. Natural gas-driven ferries will provide significant environmental rewards and will replace an annual consumption of approximately 5 million liters of diesel with environmentally-friendly natural gas (LNG). This is equivalent to the annual fuel consumption of approximately 5000 cars. The NOXreduction has been measured at about 90% compared with today's diesel-driven ferries.

The new gas ferries will be the first in the world to have only natural gas available as fuel on board. Norled is investing approximately NOK 400 million in natural gas ferries for the Tau commuter connection. Delivery of the new constructions is expected in the autumn of 2013.

Carbon Fiber Express boats Low weight and high power protect the environment Ten of Norled's 26 express boats are built using the light and durable material, carbon fiber. Low weight and proper hull shape allows for low energy consumption despite high speeds. Norled (previously known as Tide Sjø) won the 2011 innovation prize in the Transport category (www.norskdesign.no/innovasjonsprisen ) for their three universal design carbon express boats used in Rogaland.

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Battery Run 120-Car Ferry The world's first Zero emission car ferry The shipping company Norled AS has developed the world's first zero emission car-ferry in cooperation with the shipyard Fjellstrand! The ferry is designed specifically for operation on the route between E39 Lavik-Oppedal in Sogn og Fjordane County, starting from 2015. The ferry runs on electric power and is charged every time it docks to load and unload cars. Clean power charges the ultra-modern batteries through a specially-made charging plug located at each ferry dock. This ferry will thus be a completely clean car ferry which does not release any gases into the environment – no CO2, no methane, and no NOX. No other car ferry in the world can measure up when

it comes to its positive impact on the environment. To store the energy on board, highly efficient lithiumion / lithium-polymer batteries will be used. Exciting growth in battery development in recent years has made such an operation possible. To reduce emissions and energy consumption, the entire ship is optimized when it comes to weight and hull shape. Aluminum is used for the entire craft, which reduces the craft's weight considerably, as well as the power needed for maneuvering. The low weight, combined with an optimal hull shape (catamaran type), yields a resistance reduction of approx. 30% compared to what is possible with a ferry built from steel. The ferry also contains solar panels, heat pumps, heat recovery units, and LED lighting in order to further optimize the energy-friendly operation.

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The Eco-friendly transportation group DSD wants to be a front-runner in innovation for environmental sustainability. The group’s activities are to be carried out in a manner which limits, as much as possible, the burden on the environment in ship operations and public transportation on land. We have a strong focus on designing hulls for energy optimization, as well as devising operation models that ensure low energy consumption. This is based on an understanding that energy consumption either directly or indirectly leads to pollution. Furthermore, we want to use energy which in itself emits low pollution.

Tide has as many as 265 gas buses in operation. This represents more than 60% of registered gas buses nationally..

In the last ten years, Norwegian domestic ferries have been the world's largest testing laboratory for use of liquid natural gas (LNG) as fuel for vessels. The authorities have shown a willingness to fund new technological solutions, and as a result, have enabled the growth of an expert-filled environment in LNG technologies. This has been beneficial for the DSD business group as we have gained knowledge and experience in the use of natural gas as fuel. We are currently seeing a development where more and more large ships are being built for use with LNG, and in addition, we see that the necessary infrastructures, factories, bunker stations, etc. are being built.

Nor Lines has begun its renewal of the coast fleet by contracting two natural gas-driven freight ships. These have been developed in close cooperation with RollsRoyce, and won the “Next Generation Ship Award” during Nor-Shipping in 2011.

Norled has three passenger ferries which are powered by natural gas, and has two new gas-driven car ferries under construction.

DSD Shipping works in close cooperation with other parties to develop a concept for LNG-driven product tankers which will yield a considerable environmental advantage and reduced fuel costs. Energy-efficient transportation in all segments gives a competitive advantage, and at the same time is good for the environment. Want to learn more? Visit: dsd.no, tide.no, norlines.no, norled.no and dsd-shipping.no

Kongsgårdbakken. PO.Box 40, N-4001 Stavanger. Norway Tel: +47 51 84 56 11. Fax: +47 51 84 56 03. e-mail: [email protected] www.dsd.no