New Environmental Regulations

1. New Environmental Regulations Per Holmvang � DNV

2. 2

3. New Environmental Regulations �  New Challenges to the Crew ? Main regulating body: UN: International Maritime Organization (IMO) Environmental regulations: Marine Environmental Protection Committee (MEPC) Last meeting: MEPC/61, October 2010 Other regulating bodies: US: Environmental Protection Agency (EPA) European Union (EU) Flag States & Local regulations Local Incentives 3

4. 4 Environmental Conventions, Regulations & Guidelines Ballast water Recycling � Inventory of Hazardous Material Emissions to Air � SOx, NOx, CO2, PM Abatement Systems Emission Measurements Alternative Fuels Energy Efficient Ships Design Energy Efficient Operations Energy Efiiciency Plan Monitoring & Benchmarking Environmental Rating Schemes Logistics Optimization

5. 5 Ballast Water

6. 6 Ballast water transfer

7. 7 Ballast Water Convention (BWC) � Adopted 2004 Signed by 22.63% (35) of world fleet and 21 (30) member States BWC requirements Ship-specific Ballast Water Management Plan Ballast water record book onboard Ballast water exchange (Reg D-1) Approved ballast water treatment system (Reg D-2)

8. 8 Projected retrofit requirements

9. 9 BWT - several methodologies to meet D2 requirements

10. 7 have received Type Approval - a number in the pipeline

11. 11 Ships Recycling Convention � Hong Kong 2009 Covers: Design, construction, operation and preparation of ships to facilitate safe and environmentally sound recycling Enforcement mechanism for ship recycling, incl. certification and reporting requirements (e.g. Inventory of Hazardous Materials) Safe and environmentally sound operation of ship-recycling facilities Places responsibilities on: Contact person Alfhild Aspelin MNBNA843 .Contact person Alfhild Aspelin MNBNA843 .

12. 12 Air emissions � MARPOL Annex VI

13. 13 IMO Emission Control Areas

14. 14 MARPOL Annex VI - NOx Update IMO MEPC58 - Adopted 9 October 2008 � Entry into force 1 July 2010Update IMO MEPC58 - Adopted 9 October 2008 � Entry into force 1 July 2010

15. 15 Selective Catalytic Reactor

16. 16 MARPOL Annex VI - SOx Update IMO MEPC58 - Adopted 9 October 2008 � Entry into force 1 July 2010 Update IMO MEPC58 - Adopted 9 October 2008 � Entry into force 1 July 2010

17. 17 IMO Guidelines for Exhaust Gas Cleaning Systems adopted at MEPC59, including changes to requirements for monitoring and discharge of wash water (MEPC 59/24/Add.1 Annex 9) IMO - Scrubber discharge regulations

18. 18

19. 19 CO2 Footprint

20. 20 Shipping fuel cost and CO2 emissions Shipping burns some 333 million ton of heavy fuel per year Associated fuel cost is some USD 160 billion per year (USD 500/ton) Represents emission of CO2 around 1 billion ton of CO2 per year

21. 21 Ship Energy Efficiency Management Plan � SEEMP Document Management Plan targeted for Ship Owners Contains a list of measures to make the ship in question more energy efficient There are no efficiency targets associated with the SEEMP, only for reference Shipyards may be asked to contribute to document the performance of specific measures Extremely important to agree on jow to measure , to be able to set target, have quaota mechansim nad pay schemes, do benchmarking You people are engineers, so I can show you formulas Extremely important to agree on jow to measure , to be able to set target, have quaota mechansim nad pay schemes, do benchmarking You people are engineers, so I can show you formulas

22. 22 Energy Efficiency Operational Indicator � EEOI CO2 Indicator targeted for Ship Owners usage Index calculation based on: Total fuel consumption Actual distance traveled (from log book) Cargo mass or alternative cargo unit Extremely important to agree on jow to measure , to be able to set target, have quaota mechansim nad pay schemes, do benchmarking You people are engineers, so I can show you formulas Extremely important to agree on jow to measure , to be able to set target, have quaota mechansim nad pay schemes, do benchmarking You people are engineers, so I can show you formulas

23. 23 Energy Efficiency Design Index � EEDI Extremely important to agree on jow to measure , to be able to set target, have quaota mechansim nad pay schemes, do benchmarking You people are engineers, so I can show you formulas Extremely important to agree on jow to measure , to be able to set target, have quaota mechansim nad pay schemes, do benchmarking You people are engineers, so I can show you formulas

24. 24 Clear parallel to the mileage standard in the automotive industry, but also taking the �benefit to society� (i.e. useful work capacity) into account. In more specific terms�. The Principles Behind the EEDI CF is a non-dimensional conversion factor between fuel consumption measured in g and CO2 emission also measured in g based on carbon content. The subscripts MEi and AEi refer to the main and auxiliary engine respectively. Vref is the ship speed through the water in the design condition measured in km/h at the output of the main engine as defined in this regulation and assuming the weather is calm with no wind and no waves. DWT (Deadweight) means the difference in tonnes between the displacement of a ship in water of relative density of 1.025 at the load waterline corresponding to the assigned summer freeboard and the lightweight of the ship. fj and fk are corrections to account for ship specific design elements such as, e.g., ice strengthening, cargo gear or reefer containers. fj and fk refer to main and auxiliary engine respectively. SFC is the specific fuel consumption of the engines in the design condition measured in g/kWh. The subscripts MEi and AEi refer to the main and auxiliary engine respectively. P is the installed power of the main and auxiliary engines in the design condition at a load of 100 % of the Maximum Continuous Rating (MCR) measured in kW. The subscripts ME and AE refer to main and auxiliary engine, respectively. The summation on i is for all engines with NME the number of main engines and NAE the number of auxiliary engines. Capacity: For dry cargo, tankers, container ships and general cargo ships the capacity is the deadweight which is the difference in tonnes between the displacement of a ship in water of relative density of 1.025 at the load waterline corresponding to the assigned summer freeboard and the lightweight of the ship as defined in MARPOL Annex I, Regulation 1.23. For gas carriers the capacity is the tank-volume is the volume of gas carriers cargo tanks measured in cubic metres. For passenger ships, ro-ro passenger ships and ro-ro cargo ships the capacity is the gross tonnage in accordance with the International Convention on Tonnage measurement of ships 1969, Annex 1, regulation 3. CF is a non-dimensional conversion factor between fuel consumption measured in g and CO2 emission also measured in g based on carbon content. The subscripts MEi and AEi refer to the main and auxiliary engine respectively. Vref is the ship speed through the water in the design condition measured in km/h at the output of the main engine as defined in this regulation and assuming the weather is calm with no wind and no waves. DWT (Deadweight) means the difference in tonnes between the displacement of a ship in water of relative density of 1.025 at the load waterline corresponding to the assigned summer freeboard and the lightweight of the ship. fj and fk are corrections to account for ship specific design elements such as, e.g., ice strengthening, cargo gear or reefer containers. fj and fk refer to main and auxiliary engine respectively. SFC is the specific fuel consumption of the engines in the design condition measured in g/kWh. The subscripts MEi and AEi refer to the main and auxiliary engine respectively. P is the installed power of the main and auxiliary engines in the design condition at a load of 100 % of the Maximum Continuous Rating (MCR) measured in kW. The subscripts ME and AE refer to main and auxiliary engine, respectively. The summation on i is for all engines with NME the number of main engines and NAE the number of auxiliary engines. Capacity: For dry cargo, tankers, container ships and general cargo ships the capacity is the deadweight which is the difference in tonnes between the displacement of a ship in water of relative density of 1.025 at the load waterline corresponding to the assigned summer freeboard and the lightweight of the ship as defined in MARPOL Annex I, Regulation 1.23. For gas carriers the capacity is the tank-volume is the volume of gas carriers cargo tanks measured in cubic metres. For passenger ships, ro-ro passenger ships and ro-ro cargo ships the capacity is the gross tonnage in accordance with the International Convention on Tonnage measurement of ships 1969, Annex 1, regulation 3.

25. 25 The evolution of an index The principle: Japan: MEPC 57/4/12 Denmark: GHG-WG 1/2/1 MEPC 58/4 USA: MEPC 58/4/35 MEPC 58/23 MEPC.1/Circ.681

26. 26 The Formula - Explained The basic principle is retained but complexity increased Minor adjustments can be expected but no major changes No discussion on application and requirements yet The aux engine power on diesel-electric systems to be further explored. No guidelines on weather factor fw at present

27. 27 Reference lines (Baselines)

28. 28 Energy flow to be assessed to identify improvements for �ship as a system� The ship energy flow has to be assessed to identify the improvement areas for ships Energy flow means mapping the purchased energy through all process to desired output. The energy flow for a whole ship is presented in a sankey diagram. You have probably seen similar diagrams and know that same illustration can be used for single process, e.g. engines. Desired output for ships are thrust to propel the ship, el power and steam. The major losses are����� The ship energy flow has to be assessed to identify the improvement areas for ships Energy flow means mapping the purchased energy through all process to desired output. The energy flow for a whole ship is presented in a sankey diagram. You have probably seen similar diagrams and know that same illustration can be used for single process, e.g. engines. Desired output for ships are thrust to propel the ship, el power and steam. The major losses are�����

29. 29 Energy Management & Fuel efficiency

30. 30 Shipping is an innovative industry�

31. 31 Novel designs�with visions and technologies Emphasise that the intent is not to build the Orcelle as such, but rather to include those innovative technology solutions represented there that are relevant. Emphasise that the intent is not to build the Orcelle as such, but rather to include those innovative technology solutions represented there that are relevant.

32. 32 Drive for efficiency, cost reduction, improved energy efficiency & reduced CO2 emissions The intention behind this illustration is the fact that c CNG/PNG vessel will make gas fields that has been uneconomical available for commercial development. Gas is a clean energy that can be used for propulsion. Linked to the small LNG carrier a few slides in front of this. The intention behind this illustration is the fact that c CNG/PNG vessel will make gas fields that has been uneconomical available for commercial development. Gas is a clean energy that can be used for propulsion. Linked to the small LNG carrier a few slides in front of this.

33. 33 Hybrid propulsion systems

34. 34 Is Bio-fuel an Option? "The use of vegetable oils for engine fuels may seem insignificant today, but such oils may become in the course of time as important as the petroleum and coal tar products of the present time" Rudolph Diesel, 1912

35. 35 Fuel Oil Consumption Measurement

36. 36 Environmental performance becomes business critical

37. 37 Example of bulk carrier data

38. 38 Rating to be carried out per individual ship Objective assessment of the ship�s environmental performance � irrespective of age, flag and technical standard The ship owner company�s management systems apply to all ships in the company�s fleet even if the ship is e.g. on a long term charter contract Rating to be carried out per individual ship Objective assessment of the ship�s environmental performance � irrespective of age, flag and technical standard The ship owner company�s management systems apply to all ships in the company�s fleet even if the ship is e.g. on a long term charter contract

39. 39

40. 40