Shipboard Operational Energy Efficiency:Strategy for Success

Thomas KirkDirector, Environmental Programs

Stamford, CT18 March 2013

INTERTANKO – North American Panel Meeting

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Overview

IMO regulations on energy efficiency and management

Ship Energy Efficiency Management Plan (SEEMP)

Energy Efficiency – Different Perspectives Fuel-savings – Roles and responsibilities

Principles for Performance Monitoring

From Performance Monitoring to Performance Management

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Regulation 22Ship Energy Efficiency Management Plan (SEEMP)1 Each ship shall keep on board a ship specific Ship Energy Efficiency Management Plan (SEEMP). This may form part of the ship's Safety Management System (SMS).2 The SEEMP shall be developed taking into account guidelines adopted by the Organization.

Regulation 5Surveys4.1 An initial survey…shall verify…that the SEEMP required by regulation 22 is on board.4.4 For existing ships, the verification of the requirement to have a SEEMP on board…shall take place at the first intermediate or renewal survey whichever is the first.

Definition of “ship” – Art 2(4)A vessel of any type whatsoever operating in the marine environment and includes hydrofoil boats, air-cushioned vehicles, submersibles, floating craft and fixed or floating platforms

IMO Regulations on Energy Efficiency

Enter into force 1 January 2013 New ships: EEDI and SEEMP Existing ships: SEEMP

SEEMP guidelines – Resolution MEPC 213 (63)

Implementation Developed SEEMP in accordance

with guidelines Keep a copy on board Survey – verify a copy is on board

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IMO Guidelines for SEEMP

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Sample SEEMP Form

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Energy Efficiency: Different Perspectives

Ship Operations

Shipowner Ship Management

Fuel efficient operation require that all parties work together

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Ship Management (including Vessel Crew)

Classic ship management: no interest in fuel-savings, lube oil more interesting

Today ship management companies realize that fuel-savings are important going forward

Ship management makes decisions on: Maintenance of equipment (main engine, auxillary, sensors, etc.) Drydockings – hull treatment,

antifouling, propeller Hull cleanings, propeller polish Newbuilding design Crew composition

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Ship Management (including Vessel Crew)

The ship crew makes decisions on: Optimize base load (minimize consumption, optimize production) Vessel – shore communication Voyage efficiency (speed profile, route optimization) Maintenance and equipment optimization Performance monitoring and engine testing

In many cases, charter party conditions are important

Monitoring, optimization and benchmarking are key

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Shipowner

The value of a vessel will become closely correlated to how fuel efficient it is

Owner must know efficiency of each vessel class

Owner must know current performance of each individual vessel

Owner negotiates charter party conditions with ship operator

Closely work together with ship management

Responsible for fleet composition, asset management: Newbuilds, owner must know fuel efficiency of yard prospects –

how to do that? Retrofit – identify solutions with reasonable ROI – track improvement Let go of less efficient tonnage or?

Monitoring, optimization and benchmarking are key

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Ship Operator

Fuel efficiency is important Fleet composition should

match cargo composition Optimize fleet composition

Seek fuel efficient tonnage Optimize operations:

Right ship for right cargo Utilization Speed and capacity optimization Harbor operations

Structured process around expected performance/charter parties Monitor charter parties/expected performance – feedback loop Monitoring, optimization and benchmarking are key

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Primary Target Areas for Energy-savings

MachineryMachineryHull

ResistanceHull

Resistance

PropulsionPropulsionOperationsOperations

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Fuel-savings: Roles & Responsibilities

Technical Management Drydocking, treatment and paint system Hull and propeller maintenance Support vessel crew to improve, including equipment, sensors, tools

Vessel Crew Main engine SFOC Base load Auxiliary engine SFOC Energy management, including base load, PTI/PTO, WHR Voyage optimization Voyage communication/interaction with operations

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Fuel-savings: Roles & Responsibilities

Operations Voyage conditions, minimize harbor time, optimize loading condition Understanding consequences (costs) of changes in schedules and

arrival times Right ship for right trade Schedule optimization Fleet composition

Financial support to initiatives with attractive business cases

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Parameters & Sensors: Hull, Propeller & ME

Ship speed through water and GPS speed

Ship draught and trim

ME Fuel consumption

ME Power

ME RPM

Wind speed and direction

Wave spectrum, wind driven and swell

Water depth

Rudder angle

Temperatures, water, air

Salinity

Ship speed log and GPS

Reading of draughts fore and aft and update during voyage. Draught sensors ??(ballasting and consumption)

ME Fuel flow meter

ME torsion meter

Environment Wind anemometer Motion sensors – wave estimates Wave radars Hind cast data Human factor (observations)

Rudder angle indicator

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Parameters & Sensors: Internal Energy Management

Auxiliary engine consumption

Auxiliary engine production

PTI and PTO

WHR

Other equipment Boilers Cargo heating Cargo pumps

Auxiliary engine flow meters (often a challenge with accuracy)

Electrical accounting Power from generators

(kWh meters) Power from WHR Power from PTO Consumers

– PTI– All major electrical

consumers– Rest is the “black hole”

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Noon Reports vs. Auto-logging

Noon reports have “bad standing” in some places

Quality varies a lot, often poor

Environmental parameters are not constant over 24-hour period Average and over longer time, uncertainties level out

Careful data collection and on-board validation: 24 hours average values are useful

Noon reports is part of existing procedures on most ships, less costly, perhaps even cost effective?

Noon reports; expect longer response time to sudden changes, (provided the alternative is better)

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Energy Efficient Vessel Operation

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Energy Management: Key Performance Indicators

KPIs are a strong tool, but not without pittfalls

SMART principle Specific Measureable Attainable – achievable Relevant – realistic Timely

Can change people’s behaviour

KPIs for dummies Three, max four KPIs In reality, difficult to keep; overall KPIs will quickly be constructed

from ”sub-KPIs” Necessary with drill down capability to find root causes

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Key Performance Indicators: Energy Efficiency

Define baseline

Define target

Define KPI

function

Define weight of

KPI Add to

scorecard

KPI score

KPI score & weight

KPI score & weight

KPI score & weight

KPI score & weight

KPI score & weight

Individual KPI Scorecard/Dashboard

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Key Performance Indicators: Energy Efficiency

Example

Baseline

Target

KPI Score Function:• Assign good score if target is met.• Incentive to be better than target.• Below baseline, lower KPI score.

Principles for Target-setting:• Relative or absolute?• Baseline individual or sister ships?

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Weighting of Key Performance Indicators

Weights can be assigned usign different principles: Based on dollar impact value Using expert judgement where most impact can be obtained quickly Areas with special focus (safety?) Areas where stakeholders can influence most

(largest potential) Based on strategic decisions

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Key Performance Indicators: Examples of What to Measure

Ship Management ME efficiency – SFOC Hull and propeller efficiency Base load Voyage efficiency Measure for energy management Measure for cylinder oil consumption Measure for quality of reporting

Ship Operations ETA communication Harbor efficiency Speed instructions Utilization EEOI Fleet composition

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ISO 50001 & SEEMP

Areas where ISO 50001 will force SEEMP to be “above minimum” Documentation and documentation retention for audit purpose Energy Efficiency audits on board EEOI or equivalent becomes mandatory Goals, targets becomes requirements Each consumer and each measure (as identified in the ISO 50001

scopes and boundaries) shall be measured Records of review and corrective action to

measures to be recorded

These aspects may should be considered when developing the SEEMP if the company has its eyes on ISO 50001 in the future

ISO 50001 and SEEMP fit together

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Energy Management Certification

Beyond SEEMP, ISO 50001 demonstrates organization’s commitment to: Continuous improvement in energy performance of trading vessels Resources to achieve objectives and targets Comply with legal and in-house requirements Framework for setting and reviewing energy objectives and targets Purchase of energy-efficient products and services Documenting and

communicating within organizations

Policy regularly review and update

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ABS EnMS Model

The ABS Marine HSQE(En) Guide Upgraded to include new energy requirements A model integrated management system for Marine and Offshore

application incorporating Safety, Health, Quality, Environment and Energy requirements

Single integrated audits Class notation

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Closing Remarks The solution does not come for free

Owners, operators and ship managers should plan for a long term strategy

Logical step to include the shipspecific SEEMP and perhaps thecompany specific ISO 50001 as anintegrated part of the process

Energy efficiency Systems and monitoring is required;

but Fuel efficiency comes mainly from

actions of human beings

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