Presentation on theme: "A PRESENTATION TO GREEK SHIPPING COMMUNITY"— Presentation transcript:
1A PRESENTATION TO GREEK SHIPPING COMMUNITY Best Fuel Purchase Practices, Energy Management and Asset Protection – An attempt to quantify benefitsMARPOL ANNEXE VI – AN UPDATE
2BEST FUEL AND LUBE PURCHASE PRACTICES – ENERGY MANAGEMENT AND ASSET PROTECTION- AN ATTEMPT TO QUANTIFY THE BENEFITSBunker Industry Overview and Potential for savingsQuantification of savings through Bunker Quantity Surveys, ROB Surveys and Sludge SurveysHolistic View of Bunker Fuel Performance including Bunker Purchase Efficiency - Saving MillionsAlgorithms to Identify Problem Fuels saving marine machinery from major breakdown expensesSpending less $ through best Fuel and Lube management – Energy Efficiency and Asset ProtectionTotal Lube Management – Quantifying $ BenefitsScrubbers – A new simplified low cost regulations compliant design
3INTRODUCTION TO BUNKER INDUSTRY - GLOBAL AND IN SINGAPORE GLOBAL BUNKERING – 230 MILLION MT HFO AND 70 MILLION MDO VALUE - $240 BILLION ((HFO $700/MT, MDO $1200/MT, AVERAGE TAKEN AS $800/MT) SINGAPORE QUANTITY BUNKERED IN SINGAPORE > 40 MILLION MT THE EFFECT OF WATER WATER CONTENT IS 0.16% AGAINST 0.06% IN JAPAN 0.1% OF WATER = 40,000 MT = $32 MILLION !
4INTRODUCTION TO BUNKER INDUSTRY - GLOBAL AND IN SINGAPORE THE EFFECT OF DENSITY DIFFERENCEEVEN FOR DENSITY DIFFERENCE BETWEEN BDN (SAY 990) AND LAB DENSITY (980), IT IS 10 MT PER 1,000 MT. IN SINGAPORE, THIS COMES TO 400,000 MT = $320 MILLIONTHE EFFECT OF QUANTITY SURVEY SHORTAGEASSUMING 40,000 BUNKERINGS AT 1,000 MT EACHAND 10 MT LOST PER BUNKERING = 400,000 MT LOST DUE TO QUANTITY SUPPLY SHORTAGE = $320 MILLION !!ADD UP THESE LOSES AND IN SINGAPORE ALONE THE LOSS IS NEARLY $672 MILLIONHOW TO REDUCE THESE LOSSES?
5QUANTIFICATION OF SAVINGS FOR BQS, ROB AND SLUDGE SURVEYS #SERVICENATURE OF PROBLEM$700/MTCOST OF SERVICE1BQS - Quantity Shortage30 MT$21,000$1,0002BQS - Density Differential3000 X ( ) = 30 MTincluded in #13BQS - Water Differential3000 X ( ) = 3 MT$2,1004Remaining on Board (ROB)30 days X 2 MT/day = 60 MT$42,0005Sludge Survey (SS)3000 X 0.5% = 15 MT$10,500Savable Loss in 30 day voyage$96,600Total Cost of Serviceabout $3,000Assumptions: 1 Bunkering Stem = 3,000 MT of HFO used up in a 30 day voyage.
6WHY BQS?Disputes on bunker quantity are about 8 times that of disputes on quality.Lot of scope for errors & manipulationsWell known that quantities and their measurements are manipulated by some suppliers through sounding tape, temperature, water addition, ship staff corruption, Cappuccino etc.Quantity surveys do not eliminate, but reduce losses considerably
7WHY DO BQS WITH VISWA?Viswa Lab is the one of few labs to be accredited to ISO by Singapore Accreditation Council for the Bunker Quantity Survey ActivityHighly Experienced, Highly paid and mature surveyors familiar withCappuccino and Line blendingCalibration table and barge track recordProper sampling and dealing with barge captains7 Exclusive employees surveyors in Singapore/Malaysia area, 3 in mainland China/Hong Kong area and many more in US and Europe
8WHY ROB SURVEY? WHY ROB SURVEY - To capture unaccounted and hidden bunker fuels on ships- Sounding all tanks and hidden spaces for the above- Helps in keeping ship staff and supply barge stay above temptation- Helps shore operations to calculate exact fuel consumption- Helps shore operations to order the correct bunker fuel quantity- Savings can be 2 MT/day or $42,000 in a 30 day voyage
9WHY SLUDGE SURVEY? HISTORY - Some sludge is always produced on a ship; this is stored in the sludge tank. It contains some fuel which has valuePRACTICEThe sludge generation can be increased through unethical practices such as- Forced de sludging of heavy oil purifier- Excessive draining of heavy oil settling and service tankForced purifier malfunctioning to extract more sludgeExcess sludge so produced stored in sludge tank and smaller quantity declared. The excess sludge commands premium and payments in some ports
10WHY SLUDGE SURVEY? Viswa Solutions Viswa surveyors will carry out comprehensive sludge survey, calculate the sludge discharge, study the oil record book and identify and quantify malpracticesSavings affected = 0.5% or 15 MT/3000 MT= $10,500 per 30 day voyage
11BUNKER PURCHASE EFFICIENCY (BPE) VL uses three clear parameters to study Bunker Purchase Efficiency (BPE)Density differential,Water content differentialEFN (Engine Friendliness Number)The study reveals that avoiding bunkering in a certain port will improve BPE considerably. Similarly, avoiding purchasing from a certain supplier can show dramatic improvements in BPE.See below Singapore example* There is a difference in the supplier BDN density and the lab determined density. Fuel buyer can claim this difference.** There is a difference supplier BDN water content and the lab determined water content. Fuel buyer can also claim.
12BUNKER PURCHASE EFFICIENCY (BPE) COMPARISON OF PERFORMANCE ON QUALITY SINGAPORE PORT - 4/2010 TO 4/2011ABCD had lowest losses due to density differential (- 0.02%)ABCD purchased fuel with lowest water content (0.13%)Catfines in fuel purchased by ABCD was lowest at ppmVanadium in fuel purchased by ABCD was lowest at ppmABCD purchased fuel had best EFN at 61Quantity loss per 1000 MT by ABCD due to density difference and water content was lowest at 1.43 MT/1000 MT (worst performer lost 3.78 MT/1000 MT). This means that ABCD saved over 2.35 MT/1000 MT or $1.65 per MT over the poorest bunker purchase buyer.
13BUNKER PURCHASE – SHOWING BENEFITS OF FUEL QUALITY INCLUDING IGNITION AND COMBUSTION PROPERTIES TRUE WORTH INDEX – TABLE 1CALCULATING TWI (EFN common as 50) - TABLE 1BUNKER PORTAVERAGE LIFT (MT)AVERAGE DENSITY (Kg/m3)QUANTITY CONSIDERED FOR CALCULATION (KG)AVERAGE WATER (%)AVERAGE WATER (Kg)KG AVAILABLE FOR COMBUSTIONROTTERDAM1000987.70.1414986SINGAPORE988.10.1616984JEDDAH968.60.110990TOKYO9830.066994HOUSTON988.6UAE979.70.099991
14BUNKER PURCHASE – SHOWING BENEFITS OF FUEL QUALITY INCLUDING IGNITION AND COMBUSTION PROPERTIES TRUE WORTH INDEX – TABLE 2CALCULATING TWI with EFN common as 50 (continued)ABCDEFGHBUNKER PORTKG AVAILABLE FOR COMBUSTIONAVG CALORIFIC VALUE (MJ/Kg)MJ in 1000 kg (A X B)TWI (NO EFN) (expressed as %)MJ available for work (C X D)HFO 380 cost$/MJ (F/E)MJ/$ (E/F)ROTTERDAM98640.3844$6440.036827.20SINGAPORE98439.5747$6800.037226.91JEDDAH99040.9361$7030.028435.16TOKYO99441.2360$7070.028834.78HOUSTON40.253960642$6620.039825.13UAE99140.350$6770.033929.50BEST PORTJeddah$/MJ or35.16 MJ/$TRUE PRICE DIFFERENTIAL FROM JEDDAH22.80%( )/0.036823.70%1.40%28.60%16.20%Though Rotterdam price appears to be cheaper at $644 per MT, if you take into account the quality of the fuel, Jeddah fuel is 22.8% less expensive even though the Jeddah fuel costs $703 per MT.
15FUEL RELATED MACHINERY PROBLEMS – P&I FINDINGS GARD - An International P&I company reported:MAIN AND AUXILARY ENGINE REPORTED CLAIMS - 31% OF TOTAL HULL AND MACHINERY CLAIMSINDUSTRY STATISTICS INDICATE 80% OF ALL ENGINE BREAKDOWNS ARE RELATED TO FUEL OIL OF LUBE OIL.CIMAC USER GROUP IN VIENNA COMPLAINED THAT 40% OF THE VESSELS DEVELOPED MACHINERY PROBLEMS WITHIN THE WARRANTY PERIOD.ENGINE BREAKDOWNS, BLACKOUTS, DRIFTING SHIPS CONSTITUTE MAJOR DANGERS
16FINDINGS OF A SURVEY CONDUCTED ON BUNKER FUELS Asked if they had encountered "any serious off-specification fuel deliveries" last year, 52% said no, while 44% said yes. 4% did not reply. Off spec included items covered by para 5.1 of ISO 8217:200564% reported filter clogging, 48% experienced sludging, 40% said they had fuel pump sticking/seizures, and 19% had piston ring breakages.77% said they had no regulatory problems in emission control areas (ECAs), while 22% said they did.
17MACHINERY PROBLEMS AND ISO 8217 WITH THE REGULATIONS DRIVEN NEED TO DROP SULPHUR CONTENT, MORE AND MORE REFINERY PROCESS CHANGES BEING EMPLOYED – MORE CONTAMINANTS ARE FINDING THEIR WAY INTO THE FUELCOMPLIANCE WITH ISO 8217 NO GUARANTEE THAT CONTAMINANTS WILL NOT BE PRESENTIN OVER 99% OF MACHINERY PROBLEMS, FUEL CONFORMED TO THE ISO 8217 SPECS!!
18SOME QUESTIONSA)Can we identify problem fuels using comprehensive testing and before they cause machinery damage?Yes, thereby you can save machinery from poor performance and fuel related damage.B) Can a problem fuel be treated on board to mitigate damage?Yes. Performance of Purifier/Filters have to be monitored closely. Asset protection of high order can be achieved through proper monitoring of onboard treatmentC) Can the performance of the fuel be maximized using mechanical and chemical manipulations?Yes. Through TFM and TLM, substantial savings can be achieved
20Using the Magic of Algorithms to identify problem fuels and saving millions
21A formula or a set of rules to solve a problem Definition Of Algorithm AlgorithmsA formula or a set of rules to solve a problemDefinition Of AlgorithmIn Layman's terms, play with numbers (data), find patterns and empirical rules.
23Beautification Algorithm Beautification Algorithm uses mathematical formula to alter original form into more attractive versionIsraeli Software takes into account 234 facial parameters. These parameters were arrived at based on likes and dislikes of 68 people who expressed their preference in beauty.
24Algorithms In Bunker Fuel Typically a fuel test yields 29 data pointsWith additional tests, this can be up to 40Yes, we can use data, statistical analysis, pattern recognition studies to identify most of the problem fuelsThe secret to identifying problem fuels is using appropriate AlgorithmsViswa Lab deeply into Algorithms and can claim success in >85%
25PROBLEM – SEVERE M.E PISTON RING BREAKAGE ALGORITHM PFIN (Problem Fuel Identification Number) PISTON RING BREAKAGEPROBLEM – SEVERE M.E PISTON RING BREAKAGEPROBLEM PORTS – SINGAPORE, GREECE, GIBRALTAR, SPAIN, PANAMA, HOUSTONPROBLEM PERIOD – OVER 3 YEARSNUMBER OF REPORTED CASES - OVER 100
27(Problem Fuel Identification Number) WHAT IS PFIN?(Problem Fuel Identification Number)Fuels with high MCR(11.5%), high asphaltene (> 10.5%) and high CCAI (>849) were found to cause main engine piston ring breakage. However, in a few cases even this combination did not cause piston rings to breakThe need for finding other parameters which, in addition to the three above can effectively pin down the problem fuels was clear.VL was able to identify Xylene Equivalent number and Reserve Stability Number as two other parameters which in combination with the three listed above, clearly flagged fuels likely to cause piston ring breakage with over 85% certainty using an algorithm developed for this purpose. Further study continuing.
28PORTS PFIN TESTS REQUIRED PORTS PFIN TESTS NOT REQUIRED PFIN GLOBAL COVERAGEPORTS PFIN TESTS REQUIREDPORTS PFIN TESTS NOT REQUIREDSingaporeHong KongMaltaBrazilGibraltarAfricaPanamaArgentinaHoustonAustraliaSpainRussiaARAJapanChinaKoreaUAESaudi Arabia
29Quantification of Fuel Quality-EFN Engine Friendliness Number (EFN) - Already famous Benchmark of fuel quality.Quantification helps evaluation of engine maintenance cost.18 years, hundred’s of thousands of samples afterEFN < Fuel usually has problemEFN > generally there is no problem
30TRUE WORTH INDEX OF BUNKER FUEL –TWI (PUBLISHED AT BUNKERWORLD.COM) The Selection of Bunker fuel – Importance of TWITrue worth of a fuel is the energy transformable to useful work with minimal machinery wearWhat constitutes the True Worth of a Fuel?Calorific Value (CV) – the energy contentEngine Friendliness Number (EFN)Equivalent Cetane Number (ECN) or the ability of the fuel to combust on time to maximize fuel energy usage
31Determination FBT Of Problem Fuel Oils ProcedureFuel oil is pumped with target viscosity of 35 cst at flow rate (20mL/min) through 10µm mesh filter paper using a piston type metering pump.Back pressure of filter is recorded continuously.Test is designed to record pressure until 100kPa or the volume of the oil pumped reaches 300 mL.FBT is pressure differential/volume pumped
32Determination Of FBTN Of Problem Fuel Oils Test parameters of fuel oilSample IDAAABBBCCCDDDVessel NameMorning ExpressANTWERPENCARDONIAAU ARIESDensity (kg/m3)987.8974.3942.3988.150°C (cst)330.3310.3407.1330Temperature to attain 15 cst viscosity ( °C)124.5129.7125.7Al+Si (ppm)1435843TSP (%,mass)0.020.060.03Iron (ppm)103622Water (%,vol)0.100.700.20FBT number (obtained by ASTM formula)1.0415.092.023.53
33Energy Management – Not only saves energy… but also reduces emissions (ENERGY = FUEL = $$)but also reduces emissions
34VISWA ENERGY INITIATIVES Energy and Emission improvements – Driven by regulationsVISWA Contributes through :TOTAL LUBE MANAGEMENTTOTAL FUEL MANAGEMENTCHOOSING THE FUELS WITH BEST VALUE (TWI) – SAVINGS IN COST, EMISSIONS AND ENERGYENERGY MONITORING – SEEMP & EEOISCRUBBERS
35VISWA LAB TOTAL LUBE MANAGEMENT LUBE SELECTION BASED ON ENERGY EFFICIENCYLubricants provide a barrier between rubbing surfaces and prevent metallic wearLubricants consume 5% to 15% of the energy transmitted in order to provide this lubrication. This energy loss is used for overcoming churning losses and friction losses which are load, viscosity and chemistry dependent.Viscosity behavior under high temperature and high shear mainly determines oil energy efficiency.Many base oils to meet many viscosity requirement.
36VISWA LAB TOTAL LUBE MANAGEMENT LUBE SELECTION BASED ON ENERGY EFFICIENCYIn selecting the right lubricant for the right function, energy aspect has not received due weightage. Energy efficiency can be improved by selecting the right viscosity (lower the better but must avoid boundary conditions)Energy efficiency can also be improved by right selection and quantity of the additives.The savings in energy far outweighs the cost of the lubricant itself.
37VISWA LAB TOTAL LUBE MANAGEMENT LUBE SELECTION BASED ON ASSET PROTECTIONAsset protection simply means reduced wear and tear in the machinery. Wear and tear can be reduced by correct selection of additives and their quantityWear and tear can be reduced by monitoring the oil condition and taking preventive actionWear and tear reduced by the correct filtration, particle count, temperature and every operational aspect of the oilAsset protection should extend even to the surface finish condition of the rubbing parts.The machinery life can be extended 3-4 times by investing in the above points
38VISWA LAB TOTAL LUBE MANAGEMENT LUBE CONDITION MONITORING INCLUDING AFTERMARKET ADDITIVES.Detergents to keep spaces clean which will have the effect of clean combustion which could add to the fuel efficiency.Detergents prevent scale formation which impedes heat transfer (0.1 mm layer of soot/sludge can affect heat transfer to the effect of 50 to 100 degC). Higher the temp of the piston, greater the wear on the liner and piston ring.Identifying and purchasing After Market Additives - This is based on knowledge and functionality and how the additives work. This can provide valuable asset protection, higher energy efficiency, lower wear and particles generation and longer life for the lubricating oil.
39VISWA LAB TOTAL LUBE MANAGEMENT LUBE AND MACHINERY DATA COLLECTION AND ANALYSIS
41Viswa Total Fuel Management A concept in fuel management introduced by Viswa in 2001How to get the best out of the fuel – Maximize Thermal EfficiencyObtain the ignition and combustion characteristics.Carry out complete analysis and forensic studies to identify chemical contaminants.Based on analysis results and EFN and TWI values of the fuel, mechanical manipulation of machinery controls to obtain maximum thermal efficiencyAlso chemical manipulation by using additives or lighter fractions such as distillate fuels
42Percentage Fuel Savings per day after TFM Savings over 30 day voyage TFM Benefit – As Computed For APL/NOL SHIPPING Calculations Over Several VoyagesLocationHong KongSan PedroSingaporeQuantity (MT)32003307.236005600Viscosity324.8295.8491302.6444.7Consumption before TFM (MT/day)210.84217.47206.4204.62207.66Percentage Fuel Savings per day after TFM2.80%1.98%4.79%1.82%1.80%Actual fuel savings per day after TFM3.7994.3064.3093.7253.744Cost of Fuel$452.00$500.00$520.00$600.00Savings over 30 day voyage$51,517.15$58,383.94$64,635.00$58,106.88$67,392.00Cost of Test and Advisory service$3,000 to $4,000
43Tests Performed On Fuel For TFM Routine AnalysisTAN/SANGC-MSAsphalteneStabilityReserve stability numberXylene equivalent numberFuel Tech Ignition and CombustionPurifier Efficiency - Before & After - Spectroscopic And Particle CountAnalyze Ship Machinery Condition With Logged DataMonitor Results After Corrections Are Implemented
44How Does It Work Output: Parameters derived from Combustion Pressure Trace and Rate of Heat Release (ROHR)
45Case: Problem Fuel Fuel Properties According to ISO 8217 Caused extensive problems for main engineReduced engine outputHeavy knocking at part loadCylinder components needed replacementFIA testing at Fueltech shows:Bad ignition and combustion propertiesIndication of dumb-bell fuelNormal fuelProblem fuelNormal fuelProblem fuel
48ENERGY MANAGEMENT MODULES FUEL MANAGEMENTSHIP ENERGY EFFICIENCY MANAGEMENTCREATING AWARENESS AND MOTIVATION AND TRAINING IN THE IMPLEMENTATION OF THE PLANVOYAGE PLANNINGOPTIMIZED SHIP HANDLINGHULL MAINTENANCE
49ONBOARD ENERGY MONITOR MEASURES THE FOLLOWING EEOI - Energy Efficiency Operational IndexTonHFO/Ton nm - Mass of HFO per nautical mileTonLFO/Ton nm - Mass of LFO per nautical mileTonCO2/nm - CO2 per nautical milekWh/nm - Energy used per nautical milekWh/Shaft Kw - ME efficiencyTonCO2/shaft kWh - CO2 per shaft energykn/shaft kWh - Velocity per shaft energyTon CO2 / kWh - Generators emissionsGEffi. - % Generator and efficiencyTon CO2 / kWh - Boiler emissions
50SOME OTHER FUEL SAVING OPTIONS TECHNOLOGYPOSSIBLE SAVINGOptimized Hull design and formupto 10%Weather and Voyage Routing4%Propeller Mewis Duct4% to 6%Fins on propeller boss nut1%Propeller - 3 bladesupto 3%Trim Adjustment3% to 5%Wind Energyupto 50%LFC Paintupto 9%Emulsion FuelChoosing the right lubricants5% to 15%해운산업에서 잠재적인 감축가능성은신선에 대하여는개념 설계선체 개선기관 및 추진연료유 및 신재생에너지 등으로 10에서 50%(감속 전제)까지효율적인 운항관리를 통하여 10에서 50%(감속 전제)까지총 25에서 75%(감속 전제)까지 온실가스배출을 감축할 수 있다고 국제적으로 인식하고 있습니다.
51OTHER ENERGY SAVING OPTIONS STARISTINDGriegStarShippingfirstvesselwithMDinfullscaleSeptember2009Cost around USD 200,000.Fitting time 2 days in Dry DockRetrofitting Possible. Currently 140 on orderUpto 6% energy savings4
54MARPOL ANNEXE VI LIMITS ON SULPHUR GLOBAL (Jan 1st)EMMISSION CONTROL AREASENTRY INTO FORCE DATE>= TO /25*>= 2020/25*>= 1 Jul 2010TO < 1 Jan 2015>= 1 Jan 2015LIMITS3.5% +0.5% +1.0% +0.10% +* EFFECTIVE YEAR (2020 OR 2025) WILL BE DECIDED IN 2018+ ALTERNATE TECHNOLOGIES ALSO ACCEPTABLE INCLUDING EXHAUST GAS CLEANING SYSTEM
55LIMITS ON SULPHUR - European Union (eu) REQUIREMENTS and carb 0.1 % SULPHUR LIMIT(m/m) FOR MARINE FUEL INTRODUCEDEFFECTIVE DATE: JANUARY 1, 2010APPLIES TO ALL TYPES OF MACHINERYCALIFORNIA – 0.1% FROM 01 JANUARY 2014
56Why Scrubbers? CASE 1Consider a ship of 35,000 DWT consuming 25 MT per day. Based on detailed working, it is reasonable to assume that a ship will be in ECA area for at least 100 days in a year.Take the example of a ship coming from Japan/China to US West Coast.Voyage takes 30 days. In a year, at least 11 voyages. This will involve:Port stay of 11 voyages X 2 x 3 days stay = 66 days.Maneuvering time of 0.5 day X 22 times = 11 daysUS West Coast ECA entry will be 1 X 22 = 22 days.Total ECA time = approximately 100 days
57Why Scrubbers? Consider the following benefits for Case 1 As ECA area increases, this 100 days can become much more thereby increasing the savings.Post 2015, the differential cost between HFO and MDO can be much more than $300 per MT.After 2020, there will be substantial benefit when the sulfur content is capped at 0.5%. Assuming the ship will be around for another 10 years, the savings will be:265 (days) X 25 (consumption) X $220 +34 (days) X 20 (consumption) X $220 +66 (days) X 5 (port consumption) X $220 = $1,680,000 per yearSo from 2012 to 2020, savings are $ 630,000 andFrom 2020 to 2030, savings are $18,500,000Up to 2030, the savings will come to $19 million
58Why Scrubbers? Other benefits are: Not having to have more tanks and pipelines for LS fuel,The freedom to buy any sulphur fuel,Not having to go to ports with added delay and bunkering small quantities of low sulphur fuel all of which are expensive and time consuming.
59Introducing VISWA Scrubbers Forefront of Technological Excellence. Fully automated trouble free operationA product developed by three IIT (Indian Institute of Technology) Engineers with combined experience of over 100 years30 years of experience, supplying pollution control equipment including scrubbersExpertise in all aspects of Ships and Marine industry through the Viswa Group
60Features and Options VISWA Scrubbers Single scrubber can treat exhaust gas streams from ALL combustion sourcesIncludes main engine, auxiliary boilers and generatorsScrubber capacities up to 20 MWHigher capacity scrubbers availableOptions for exhaust gas treatment in ports
61A LOGICAL alternative to WET SCRUBBERS - An exclusive from Viswa Scrubbers A new simplified low cost regulations compliant designNew Design Dry scrubbersSpray Dried AbsorbersUses lime for SO2 captureSafe to handleNo CentrifugesNo wash water to be discharged
62Schematic Diagram of SDA Inlet exhaust gasFrom main engine, auxiliary engine and boilersAir toAtomizerSpray DryerLime& WaterFabric FilterStackWaste solids(CaSO3 &CaSO4)
63Advantages of SDA. Ca(OH)2 + SO2 > CaSO3 + H2O Advantages of SDA Ca(OH)2 + SO2 > CaSO3 + H2O CaSO3 + ½ O2 > CaSO4Removes SOx as well as particulates (upto 70%)Sox removal 98% +, Some Nox removalLow water consumptionCan use waste water or lake waterNo wash water generationNo sludge treatmentLower power consumptionSafe; no corrosive materials to handleInexpensive material selection
64CONCLUSIONSubstantial savings are possible through bunker quantity managementAsset protection and long term savings are possible through a Holistic Management of Bunker fuelsEnergy Efficiency can be augmented through fuel savings and Total Fuel Management and Energy saving in Total Lube Management. Lube Management also enhances asset protectionLow cost new design scrubbers help in conforming to emission regulations with maximum savings and minimum complicationsAdditional Energy Savings ideasViswa Lab will continuously partner, participate and contribute in realizing these goals
65MARPOL ANNEXE VI REGULATIRY UPDATES * MEPC 62 EEDI – 01 JAN 2013 – NEW SHIPS SEEMP 01 JAN 2013 – ALL SHIPS EEOI ( Voluntary ) MARKET BASED MEASURES DISCUSSED *MEPC 63 LARGELY UNEVENTFUL Clarifications on EEDI Discussions on ECA compliant fuels Market Based Measures Discussed
66MEPC 62Chapter 4 Enters into Force on 01Jan 2013All ships 400 GT and Above (Some exceptions )Attained EEDI not to exceed Required EEDIBuilding Contract on or after 01 Jan 2013No Building Contract - Keel Laid or Similar stage of constructionIrrespective of above dates delivery on or after 01Jan 2015All ships to be provided with SEEMP30% reduction in three phases by 2025
67Energy Efficiency Design Index Cost: Emissions of CO2Benefit: Cargo capacity & transport workComplex formula to accommodate most ship types and sizesThe Energy Efficiency Design Index (EEDI) provides a figure, expressed in grams of CO2 per tonne mile, that measures the attainable energy efficiency of a specific ship design. It enables the designer to optimize the various parameters at his disposal and provides an energy rating for the ship before it is built. The Index will, therefore, stimulate technical development of all the components influencing fuel efficiency. Through the application of this Index, ships in the near future will have to be designed and constructed intrinsically energy-efficient.The formulation of the Index is rather complex, in that it tries to accommodate a wide range of ship types and sizes. The formula, which I cannot show in the slide because of size and complex structure, may still suffer some modifications before it is agreed by the MEPC in July.6767
68Attained Index Cost: Emission of CO2 Benefit: Cargo capacity transported a certain distanceRelates to seagoing maximum condition – maximum capacity transported using maximum engine power
69Attained Index CF: Conversion between fuel and CO2 SFC: Specific fuel consumptionP, Vref and Capacity: A consistent set of engine power required to sail at a certain speed when the ship is carrying its capacity in calm weatherfw: Speed reduction factor in wind and wavesfi: Correction factor for any regulatory limitation on capacity
71Benchmark Against Baseline Different Benchmarks for different types
72Benchmark against a baseline From public databases (LRFP*) a baseline for the ship types in the current MEPC discussion is derived forBulkerTankerGas carrierContainer shipsGeneral cargo shipsRo-ro passenger ships, etc.The “Required EEDI” of a new ship shall be below the BaselineEEDIRequired < EEDIBaseline
73EEDI base line vs. required EEDI EEDI base line = a x DWT–cTo be determined according to “Guidelines”Reduction of EEDI (MEPC61)Required EEDI = base line x (1-(X/100))X = reduction ratio of EEDI(%)YY DWT : Ship Size requiring attained EEDI to be less than required EEDI73
74Baseline Establishment EEDI New Baseline formula agreed at MEPC 60
75Baseline Establishment Ship typeabc[Passenger ships[ ]]Dry Cargo CarriersDWTGas tankersTankersContainer Ships[Ro-Ro ShipsGeneral Cargo Ships[Ro-ro Passenger ShipsRefrigerated Cargo ShipsIf the design of a ship makes it possible to fall into more than one of the above ship type definitionsthe required energy efficiency design index for the ship the most stringent energy efficiency design index.
78Energy Efficiency Operational Indicator (EEOI) An efficiency indicator for all ships (new and existing) obtained from fuel consumption, voyage (miles) and cargo data (tonnes)Cargo Onboard x (Distance traveled)Fuel Consumption in Operation=Actual FuelConsumptionIndexThe Energy Efficiency Operational Indicator (EEOI) enables operators to measure the fuel efficiency of a ship in operation. Expressed in grams of CO2 per tonne mile, the indicator enables comparison between individual ships and thereby facilitates adoption of appropriate measures to reduce energy consumption. More importantly, the Indicator makes it possible for operators and crews to monitor the effectiveness of any new measures applied in accordance with the Ship Energy Management Plan.The Energy Efficiency Operational Indicator has been implemented on a trial basis since 2005 and the outcome and experience obtained from hundreds of trials will enable the MEPC in July to adopt a mature and robust tool to gage the operational efficiency of individual ships.7878
79Objective of the EEOI Measuring energy-efficiency of existing ships Evaluation of operational performance by owners or operatorsContinued monitoring of individual shipEvaluation of any changes made to the ship or its operationCurrently voluntary in natureMEPC has developed Guidelines for voluntary use of the ship Energy Efficiency Operational Indicator (MEPC.1/Circ.684) to establish a consistent approach for measuring ships energy-efficiency at each voyage or over a certain period of time, which will assist shipowners and ship operators in the evaluation of the operational performance of their fleet. As the amount of CO2 emitted from ships is directly related to the consumption of bunker fuel oil, the EEOI can also provide useful information on a ship’s performance with regard to fuel efficiency.The EEOI enables continued monitoring of individual ships in operation and thereby the results of any changes made to the ship or its operation. The effect of retrofitting a new and more efficient propeller would be reflected in the EEOI value and the emissions reduction could be quantified. The effect on emissions by changes in operations, such as introduction of just in time planning or a sophisticated weather routing system, will also be shown in the EEOI value.
80Market Based Instruments Should MBIs be included?Reasons for MBIsLong life of shipsGrowth of international shippingCO2 reductions due to EEDI (new ships) = long term measureMeasures on existing ships = not sufficient to meet reductions of 20% or more in the short terms (up to 2020)Which MBI?- Bunker Levy (Denmark/Japan)- Emission Trading Scheme (ETS) (Norway, Germany, U.K. & France)- US alternative – based upon EEDI- World Shipping Council (WSC) – modified US alternative- IUCN Proposal of Levy on Imported Goods- Bahama proposal of doing nothing other than Technical and Operational Measures.
81Work Being Done At IMOEEDI and SEEMP will come into force as a part of MARPOL Annex VI by under tacit acceptance.Many leading maritime nations (European and Asian) are testing EEDI Formula and EEDI Base formula and carrying out impact assessment and reporting back to IMO for development of regulations that are equitable and implementable.
82MEPC 63 SESSION 27 FEB TO 02 MARCH 2012 EEDI Formula Correction Factors AGREEDBulk carriers and Tankers built to CSRShip Specific Structural EnhancementsContainerships – 70% DeadweigthtChemical carriers Cubic correction factorICE Class shipsALL SHIPS - Weather correction factor optionMinimum Power and Mimnimum Speed – No AGREEMENT reached – defer to MEPC 64
83Epilogue – Crisis ; Danger or Opportunity ? 선진국 및 대형 조선소들은현재의 논의 과정을 위기로 생각하지 않고기회로 생각하고 있습니다.DangerClimate ChangeOpportunityGreen Growth83
84Coming together is a beginning, Staying together is progress & Working together is a success - Henry Ford Viswa Lab will be happy to be your partner in these endeavors and to achieve these goals together THANK YOU