1. Environmental Landscape A burden or opportunity? Tony Field South East Europe Marine Business Manager

2. Environmental landscape – Burden / Opportunity? Increasingly demanding environmental regulations Political decisions not always supported by strong technical / scientific evidence Continued pressure on emissions reduction Range of innovative environmental solutions Sustainability and remaining competitive Cost saving due to efficiency

4. Environmental Landscape - Technical Challenges Air emissions SOx, NOx, VOC Energy Management and CO2 Transfer of invasive species Ballast water, Biofouling Fuel choice HFO MGO LNG Waste /garbage New build material choices and anti fouling paint /anti corrosion paint Recycling issues

5. 2011 2010 SECA North Sea & Baltic Sea S<1.5% Global cap S<3.5% IMO Global cap All engines All fuels S<4.5% IMO North Sea & Baltic Sea S 0.1% All engines/All fuels EU ports & inland waterways S 0.1% All engines All fuels S < 0.1% within 24nm off California 01Jan 2012 2012 01 Jan 2010 20152020 Global cap S<0.5% IMO 01Jan 2020 SECA and ECA S<0.1% IMO 01Jan 2015 SECA North Sea & Baltic Sea S< 1% IMO 01 July 2010 S = Sulphur content in fuel SECA = Sulphur oxide ECA ECA = Emission Control Area MGO = Marine Gas Oil MDO =Marine Diesel Oil ECA US/Canada S<1% within 200 nm off US/Canada coast IMO 1 August 2012 Current IMO Main engine rule: MGO S<1.5% ; MDO S< 0.5% Auxiliary engine rule: MGO or MDO S<0.5% within 24nm off California 01 Jan 2012 Regulation timeline: Sulphur in Marine Fuels 2025 Pending 2018 review

6. Energy Management to Improve Efficiency Effective management of energy efficiency needs to be driven at all levels within the organisation It will involve identifying the drivers of energy efficiency and a cultural change in the understanding of those who can influence it Different objectives will govern how a management programme is implemented Regulatory requirements, Charter-party Environmentally ‘attractive’, competitive through efficiency Implementing ‘best practice’, maintaining quality Driving continuous improvement thru’ efficiency Improving operations

7. Work Together – Not Alone ……….. Designers Shipyards Manufacturers Charterers Port Authorities Regulators

8. What on board can you make more efficient? Hardware: Hull Optimised hull form for reduced resistance Appendages optimisation Advanced hull coatings Increased capacity? Reduced lightweight? Machinery More efficient engines (ME/AE) Use of low-carbon fuels such as LNG and bio-diesel Optimised auxiliary machinery Waste heat recovery Shaft generators and other energy efficient technologies Propulsion Propeller optimisation Variable speed drives Electric propulsion Podded propulsion Boss cap fins

9. Improved Voyage Management Improved Voyage Management Weather Routing Optimum Trim Speed Optimization Just in Time Optimum Ballast Optimum Shaft Power Auto Pilot Electric Power Supply Auxiliary Machinery Improved On Board Management Improved On Board Management

10. Speed Optimization Speed Optimization

12. Managing Effectively You can comply and save cost Manage the Risk

13. Tony Field South East Europe Marine Business Manager Lloyd's Register EMEA 87, Akti Miaouli, Piraeus, 18538, Greece Office: +30 210 458 0829 Mobile: +30 6948 549159