Nexnergy Pte. Ltd. Registered Office: 138, Cecil Street, #18-00, Cecil Court, Singapore 06953 Operations Office: 316, The Great Eastern Galleria, Plot-20, Sector-4, Nerul, Navimumbai, 400706. Maharastra India www.nexnergy.com

Energy Efficiency Design Index (EEDI) & Ship Energy Efficiency Management Plan (SEEMP) for Yachts and OSVs A Guide An important characteristic for Yachts and OSVs is that they spend a significant amount of time at rest; either within a port, marina, working with a rig or at anchor. The operating profile of these vessels dictates that auxiliary systems far outweigh the propulsion system in terms of contribution to the operational environmental footprint. Defining the operating profile for these vessels is very difficult as the usage depends solely on an unpredictable pattern of movement. However it is possible, given the right data, to make some broad assumptions. It is the purpose of this note to provide further information concerning the recently launched Energy Efficiency Design Index (EEDI) & Ship Energy Efficiency Management Plan (SEEMP) and its application to Yachts and OSVs. Application

EEDI applies to all new build Yachts/OSVs of 400 gross tonnage and greater with effect from the 1st January, 2013.

SEEMP applies to all Yachts/OSVs of 400 gross tonnage and greater with effect from the 1st January, 2013.

Background

At the 63rd session of the International Maritime Organizations (IMO) Marine Environmental Protection Committee (MEPC) held in London in the latter part of 2012 an important series of measures were adopted.

The measures are designed to support the uniform implementation of mandatory measures to increase energy efficiency and reduce emissions of greenhouse gases (GHGs) from international shipping.

The MEPC adopted four sets of guidelines intended to assist in the implementation of the mandatory Regulations on Energy Efficiency for Ships in MARPOL Annex VI.

These regulations enter into force on January 1, 2013. The guidelines are:

2012 guidelines on the method of calculation of the attained EEDI for new ships;

Nexnergy Pte. Ltd. Registered Office: 138, Cecil Street, #18-00, Cecil Court, Singapore 06953 Operations Office: 316, The Great Eastern Galleria, Plot-20, Sector-4, Nerul, Navimumbai, 400706. Maharastra India www.nexnergy.com

2012 guidelines for the development of SEEMP;

2012 guidelines on survey and certification of the EEDI; and

Guidelines for calculation of reference lines for use with the EEDI.

EEDI

The EEDI aims to promote the use of more energy efficient (less polluting) equipment and engines.

The EEDI is a non-prescriptive, performance-based mechanism that leaves the choice of technologies to use in a specific yacht design to the industry. As long as the required energy efficiency level is attained, designers and builders are free to use the most cost-efficient solutions for the vessel to comply with the regulations. The EEDI provides a specific figure for an individual design, expressed in grams of carbon dioxide (CO2) per vessels capacity-mile (the smaller the EEDI the more energy efficient ship design) and is calculated by a formula based on the technical design parameters.

SEEMP

The SEEMP is intended to be a management tool to assist these vessels in managing the on-going environmental performance of its operations. It is recommended that the vessel or its management company develop procedures for implementing the plan in a manner, which limits the on-board administrative burden to a minimum.

The SEEMP seeks to improve a yacht/osvs energy efficiency through four steps: Planning, Implementation, Monitoring, Self-evaluation and improvement.

These components play a critical role in the continuous cycle to improve energy management. Achieving these goals can be done through a combination of structural and operations actions. These may include improved voyage planning, weather routing, optimized speed, consistent shaft power, enhanced use of rudder and heading control systems (autopilots), and hull maintenance.

Nexnergy Pte. Ltd. Registered Office: 138, Cecil Street, #18-00, Cecil Court, Singapore 06953 Operations Office: 316, The Great Eastern Galleria, Plot-20, Sector-4, Nerul, Navimumbai, 400706. Maharastra India www.nexnergy.com

SEEMP also provides an approach for the vessel owners to manage vessel efficiency performance over time using, for example, the Energy Efficiency Operational Indicator (EEOI), as a monitoring tool. The guidance on the development of the SEEMP for new and existing vessels incorporates best practices for fuel efficient operation, as well as guidelines for voluntary use of the EEOI for new and existing ships.

The EEOI enables these vessel owners to measure the fuel efficiency of their vessel in operation and to gauge the effect of any changes in operation, e.g. improved voyage planning or more frequent propeller cleaning, or introduction of technical measures such as waste heat recovery systems or a new propeller. The SEEMP urges the yacht owner at each stage of the plan to consider new technologies and practices when seeking to optimise the performance of a ship.

Documentation

To verify compliance with these new rules, yachts and OSVs must carry a new statutory certificate called the International Energy Efficiency (IEE) Certificate. The required survey will be conduct by the flag-state or classification society appointed on their behalf.