Achieving Sustainable Shipping Is Technology a Panacea?

Konstantinos S. Lourandos Springfield Shipping Co. Panama SA (ONASSIS GROUP)

Key Points New challenges for Shipping Industry Implementing an ECO strategy Energy Saving Measures Pros and Cons Human Factor What will the future bring?

Key challenges

Environmental Regulations • ECAs • EEDI • SEEMP • MRV • MBMs

Market Conditions • Low economic growth • Overcapacity • High Fuel prices • Strong pressure from stakeholders • Rating systems • Limited Financing • ECO Ships

Technology •Driven by regulation and Competition •Expensive/uncertain payback time •To invest or not ? •New and unproven technologies •Difficult to measure effectiveness •Requires cultural change • Lack of capital/no incentives

Emissions Regulation Timeline

IMO Strategy CO2 Emission Mitigation (MARPOL Annex VI)

CO2 emission mitigation

Operational Measures SEEMP

Market Based Measures

(economic incentive)

Technical Measures EEDI

In search of the perfect equilibrium 90% of the world’s trade is carried by sea

2.7% is the proportion of global green house gases caused by the

international shipping.

Shipping has always been a well self regulated industry.

The last 15 years have seen a drop in oil spills (despite a massive

increase in oil cargos), a general reduction in harmful gases such as

nitrogen dioxide and sulphur dioxide, and an uptake in fuel efficient

ship design. That said, the search for perfect equilibrium continues.

Achieving Sustainable Shipping

Adaptation to new challenges

Promoting and Energy Saving Culture

Implementing Technological Solutions

Reducing Emissions

Managing Costs

Implementing an ECO Strategy

• Objectives • KPI’s

• Energy Abatement Measures (filtering, implementing)

• Measuring • Benchmarking

• Monitoring • Reporting • Verification

CHECK ACT

PLAN DO

Food for thought Are we operating efficiently enough? Is there space for improvement ? Yes, because the term energy efficiency

was so far a “neglected” term

Before Investing There are many off-the-self solutions and innovative ideas in the market.(jungle market)

We have to promote an energy saving culture on board.

We have to make sure that we are using the already installed technology to its full potential.

When selecting one of the off-the-self solutions we have to take into account the capital

investment and the payback period.

We don’t want to put additional load on the shoulders of crew.

Our Environmental Policy Adopted from an early stage operating measures (such as slow steaming) We have invested in breakthrough technology after meticulous evaluation of current energy

abatements solutions. We are promoting an energy saving culture on board our vessels, because we strongly

believe that this is the stepping stone for the implementation of an energy saving system. We have identified the great energy saving potential.

We are evaluating our every day activities (either on board or ashore)in an effort to improve our environmental standards and to reduce our energy footprint for the protection of the environment the societies and the sustainability of the shipping industry .

We don’t want to leave any stone unturned.

Operational Measures Slow Steaming procedures Following consultation with Main Engine makers and after adopting required measures and procedures, all vessels’ are now operating, if required, at the Slow Steaming mode down to around 20% of MCR (Maximum Continuous Rating).

Efficient operation of Auxiliary Machinery A review is carried out of ships’ specific Engine Room arrangements in order to assess the possibility to deviate from existing common practices regarding the operational procedures on the use of Steering Gear, Main Engine Lub Oil Pumps and Inert Gas Fans’ motors and adopt new proposals with a view to reducing the energy consumption.

Hull Resistance Reduction Auto Pilot Upgrade By upgrading existing AutoPilot units using software that incorporates the latest adaptive control technologies we achieve better maneuverability and optimum steering and consequently fuel savings in the range of 1.15% Hull Monitoring Performance Ship’s performance is monitored and in cases of deterioration underwater hull cleaning is carried out by divers.

Hull Performance Monitoring

Improving Power Plan Efficiency

Inverter Drives for Engine Room Fans Already installed in a Namura Suezmax. Expected energy savings in the range of 30%-40% (35-45,000 Euros per year).

Upgrading the Alpha Lubrication System Will be applied on Samsung’s VLCCs for more efficient lubrication at low main engine loads and reduced cylinder oil consumption.

Main Engine Stuffing Boxes retrofitting Modification will be carried out to Namura Suezmaxes for reducing Main Engine System oil leakages. Expected savings will be around 100 Liters of System oil per day per vessel.

Improving Power Plan Efficiency

Reducing Main Engine Cylinder Oil Lubrication Feed Rate

The already applied reduction of Main Engine Cylinder Oil Feed Rate has

resulted not only on savings on the cylinder oil consumption, but also on

extending the Main Engine Pistons’ overhauling periods. Performance monitoring Engine Log Abstract in electronic format enabling more efficient monitoring of the overall performance of the ship and the daily consumptions.

Additional Measures

Trim Optimization Potential Fuel Savings in the range of 2% to 4% Turbocharger Cut Off For Samsung VLCC’s which will result in more effective Main Engine operating during Slow Steaming and additional HFO savings. Installation of Inverter units for Engine Room Cooling Sea Water Systems Potential Energy Savings in the range of 30% to 40%.

Weather Routing Voyage optimization based on actual weather conditions. Installation of Inverter units for Engine Room Fans Potential Energy Savings in the range of 40-50%

Installation of Inverter units for Inert Gas Fan Motors. For more efficient thus economical operation of the Inert Gas System. MHI MAP MARK-W Propellers Initially for Namura Suezmaxes. Propeller Efficiency improvement in the range of 5% Waste Heat Recovery Systems (WHRS) For steam production from Diesel Generators Exhaust Gases LED Lighting Technology For reducing the electrical energy consumption .

De-rating of Main Engine and Propeller (potential energy savings 15%) Retrofitting of Flow meters For more accurate measurement of bunkered and consumed fuels HFO Homogenizers One before the HFO purifier for reducing the quantity of sludge and the other before Main Engine Inlet for homogenizing the hydrocarbon particles.

Waste Heat Recovery Economizer After Auxiliary Engines

The amount of the wasted thermal energy contained in A/E’s exhaust gases is capable of producing a considerable amount of steam which can contribute to the steam requirements when : 1. In port or in anchorage 2. Slow steaming

PROPULSION EFFICIENCY The aim is to improve the propulsion

efficiency by installing energy saving

devices in way of the stern, in order to

reduce the turbulence induced by the

propeller, accelerate the hull wake and

produce a net head thrust

Propulsion Efficiency Solutions Becker Duct will be installed in a Hyundai VLCC. Potential Fuel savings are in the range of 4%

Propeller Boss Cap Fins will be installed in a Hyundai VLCC . Potential Fuel savings are in the range of 2%

Stern Fins installed in a Sumitomo Aframax. Fuel Savings under evaluation

Is technology a panacea? We are getting overwhelmed by the breakthrough technology measures and we tend to underestimate the most important factor.

Promoting an Energy Saving Culture

Every energy efficient measure is bound to fail if we don’t promote an energy saving culture on board and in the office.

Energy Saving Culture (Key Points)

Persuade

Inspire

Motivate Training

Reward

Promoting an energy saving culture on board.

Prudent use of Aux. Machinery Steering Gear Motors

Main Engine L.O Pump Motor

Inert Gas Fans 100% and 50%

Cooling Sea Water Pump Motor

Additional Energy Saving Measures

1. Boiler and Steam Load 2. Exhaust Gas Economizer 3. Windlasses and Mooring Winches (hydraulic motors) 4. Optimized use of Ballast Pumps (Gravity Principle,Eductors) 5. Cargo Cranes 6. Conserve Energy in Galley

What will the future bring? The European Commission has signaled its intention to introduce a monitoring and reporting

system to tackle emissions from shipping vessels in the EU.

The statement says: “Shipping is a global industry and needs global solutions to address its

environmental footprint. As a result, we are all working towards an internationally agreed

global solution to decrease greenhouse gas emissions from ships.”

We believe the optimum system would be based on real-time, automated and high-

frequency data collection and monitoring throughout the service life of the vessel allowing

transparent and independent access by all stakeholders to hull performance data.”

Measuring and understanding the true carbon footprint is the stepping stone for establishing an energy management strategy. An independent service provider is required to monitor and asses the data by using a transparent and straightforward procedure.

Monitoring Reporting and Verification

Monitoring and Reporting / What do we want? Scope (voyages in EU/non EU, port consumption) Monitored Data (EPIs) Monitoring method (EEOI, speed, CO2 emissions, etc) Reporting procedure & format Set bench markings - Evaluate efficiency Transparent and accurate Cost-effective Minimum administrative burden / simple to implement Expertise required

Data Collection and Evaluation

1. Is not an easy task 2. We have to decide which are the parameters that we

want to monitor. 3. Data Collection method (Automatic or Manual) 4. There is no point transferring all engine room data

ashore. 5. Ship is not a space rocket.

Better Monitoring Systems Engine Room: the philosophy of the architecture of the existing engine room

alarm and monitoring systems is mainly focused on safety (alarming).

In the future we will see energy managing software that will advise chief

engineer to switch off unnecessary aux. machinery, depending on the

operation of the vessel ( load analysis table).

Emission monitoring software, engine efficiency software.

Wheel house: navigation data, meteorological info ( wind, waves etc)

Need For Speed All this data that is already available on board will have to be transported

ashore to the head office, charterers or to port authorities at high speeds. The need for real time monitoring of critical parameters for the energy

saving will become more and more demanding.

IT departments will have the opportunity to play a more essential role.

Conclusion The implementation of an Energy Management System that will identify the prominent role of establishing an energy saving culture on board, is the answer for achieving sustainable shipping .

Thank you for your attention

Achieving Sustainable Shipping�Is Technology a Panacea? �������Key PointsKey challenges�������Emissions Regulation TimelineIMO Strategy CO2 Emission Mitigation �(MARPOL Annex VI)In search of the perfect equilibriumAchieving Sustainable ShippingImplementing an ECO StrategyFood for thoughtBefore InvestingOur Environmental Policy Operational MeasuresHull Resistance ReductionHull Performance Monitoring Improving Power Plan EfficiencyImproving Power Plan EfficiencyAdditional MeasuresSlide Number 18Slide Number 19Waste Heat Recovery Economizer After Auxiliary EnginesPropulsion efficiencyPropulsion Efficiency SolutionsIs technology a panacea?Promoting an Energy Saving CultureEnergy Saving Culture (Key Points) �Promoting an energy saving culture on board. Prudent use of Aux. MachineryAdditional Energy Saving MeasuresWhat will the future bring?Measuring and understanding the true carbon footprint is the stepping stone for establishing an energy management strategy. ��An independent service provider is required to monitor and asses the data by using a transparent and straightforward procedure.Monitoring and Reporting / What do we want?Data Collection and Evaluation Better Monitoring SystemsNeed For SpeedConclusionThank you for your attention