1. 1 November 2013 “Shipping ­today, more Efficient & Cleaner” The Royal Institution of Naval Architects ‘13 President's Invitation Lecture “Shipping ­today, more Efficient & Cleaner”

2. 2 Francesco Bellusci Managing Director of Scorpio Ship Management s.a.m. SSM is the technical arm of Scorpio Group responsible for ships in operation, new buildings and new projects. About the Speaker Invitation Lecture | November 2013

3. 3 About Scorpio Group Invitation Lecture | November 2013 Global Footprint (NBs orders concentrated in 1 year time, figures are ever changing) 27 tankers at sea Approximately 100 tankers ordered Approximately 50 dry bulkers ordered Control of larger number of vessels through the commercial pools NBs orders concentrated in 1 year time, figures are ever changing

4. 4 Scorpio’s Key Strength Invitation Lecture | November 2013 Half a century of presence in shipping Interpretation of market opportunities post crisis Use of solid financial instrument Strong management commitment driven by passion Robust industrial plan

5. 5 Key Sections of Discussion Invitation Lecture | November 2013 I. Market Situation II. Shipping opportunities for a more efficient and cleaner environment

6. 6 Financial players High Freight/Fuel cost ratio Weak emission regulatory framework A small propeller coupled with higher speed engine fit the purpose No scope for naval architect’s intervention I. Market Situation : Historical Invitation Lecture | November 2013

7. 7 Finance became selective with interest in solid industrial plans only Low Freight/Fuel cost ratio Strong emission regulatory framework (EEDI, EEOI, ECA, Tier III, SEEMP, MBI knocking at door) Reduced consumption/emission matters Variety of opportunities for naval architects I. Market Situation : Current Invitation Lecture | November 2013

8. 8 Key Sections of Discussion Invitation Lecture | November 2013 I. Market Situation II. Shipping opportunities: For a more efficient and cleaner environment

9. 9 New building costs collapsed at 2002 price level New building yards open to discuss radical changes to specification Investment in fuel efficiency; a necessity for survival and a regulatory requirement, hence cleaner solutions became an opportunity II. Shipping opportunities: Overview Invitation Lecture | November 2013

10. 10 II. Shipping Opportunities: Eco Benefit Invitation Lecture | November 2013 Low cost Higher Revenue Lower Opex Stakeholder’s preference for lower emissions

11. 11 II. Shipping opportunities: Eco Ship Differentiators Invitation Lecture | November 2013 1. Fuel efficiency2. Energy management

12. 12 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices

13. 13 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Reconsideration of main dimensions and service profile Service speed, block coefficient, bulbous bow LCB position/form factor, wave resistance, wake fraction

14. 14 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Rw/Rt % decreases → entrance angle increases, bow volume increases, Lcb moves forward, lower friction resistance, better wake field aft

15. 15 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Va = Vsx (1-w) Lower and stable wake fraction positively influences propeller efficiency and reduce noise and vibration

16. 16 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Higher diameter→ higher efficiency Ae/Ao, improved cavitation design moving out from standard wing profiles Tip rake or winglet for limiting the tip vortex effect Modification of radial pitch/area distribution (skew, 3 blades)

17. 17 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Better distribution of areas where ↑ efficiency increases Tip rake on pressure side → Wing profile fine tuned for improved ← cavitation

18. 18 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Moving along constant ship speed curve toward lower revs/higher propeller D, the power requirements decreases due to overall higher efficiency of the propulsion system

19. 19 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Balance between lower SFOC and lower revs Electronic control (injection timing and injection profile) Engine tuning (ECT, EGB, VTA) and type (gas engine/scrubber) depending by service profile and percentage in ECA

20. 20 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formMain EngineMain engineHull roughnessFuel efficiency devices Selection of proper engine tuning basis service profile including percentage in ballast as opposed to laden might improve SFOC by 5 g*kW/hr (3%)

21. 21 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Silyl acrylate, Biocide free, Low friction post silyl acrylate Friction resistance account for 65% of total resistance for large low speed tankers Target reduction of hull roughness to below 50 microns and the maintenance of it through the 5 years service life

22. 22 II. Shipping opportunities: Eco Ship -> Fuel Efficiency Invitation Lecture | November 2013 Hull formPropellerMain engineHull roughnessFuel efficiency devices Duct Pre/post swirl device Full spade rudder Rudder bulb

23. 23 II. Shipping opportunities: Eco Ship -> Energy Management Invitation Lecture | November 2013 Ship/speed efficiency control Trim adjustment Frequency controllers Waste heat recovery Selection of highly efficient energy process Virtual arrival Weather routing

24. 24 Overall Results and Conclusions Invitation Lecture | November 2013 Global Footprint (NBs orders concentrated in 1 year time, figures are ever changing) NBs orders concentrated in 1 year time, figures are ever changing Efficiency of Transportation CO2 Emission Reduction

25. 25 Overall Results and Conclusions Invitation Lecture | November 2013 Global Footprint (NBs orders concentrated in 1 year time, figures are ever changing) NBs orders concentrated in 1 year time, figures are ever changing EEDI limit Real fuel saving from a 2011 efficient design

26. 26 www.scorpiogroup.net 20 20 (20% emission reduction by 2020) was considered mission impossible For Scorpio it is a job doneThanks