Operational Energy Efficiency In Practice

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London, 12 th February 2014 Working together for a safer world

Nothing new! Future-proofing your asset Charterers applying ever more pressure to have greater transparency Commercial benchmarking becoming more prevalent Validating equipment manufacturers claims Supporting implementation of regulatory requirements and management of operational efficiency At some point shipping will have to pay for its CO 2!

Where is the panacea? There is no one-size fits all solution Expectations of what is achievable need to be managed No Investment Large capital investment

How do we choose a solution? RISK Benefits Implementation Effort Impact Cost

12 10 How do we choose a solution? Score 8 6 4 2 0 Voyage Optimisation Speed / Itinerary optimization Weather Routing Voyage Planning Trim optimization Optimizing autopilot function Hull and propeller Hull performance optimisation Propeller Maintenance Main and Auxiliary Machinery Engine condition monitoring Engine performance assessment Main Engine Operating Conditions Auxiliary engines (A/Es) power management Aux. Boiler usage optimisation and maintenance Exhaust Gas Economiser usage optimization and Machinery usage optimisation Fuel tank heating optimisation Other Operational / Maintenance Piping and equipment insulation Ballast water exchange optimization Lubricating oil dosage optimization Cargo Handling optimisation Fuel Management Fuel Quality Control Fuel Analysis Fuel Measurement Sludge Generation Monitoring Homogeniser usage optimization Purifiers Performance Monitoring Hotel services Lighting system Galley equipment, Laundry equipment & other Training Energy efficiency training Impact Effort' Cost'

Where to begin? Some basic questions we should ask: 1. How do we know how much fuel we are using how do we measure? 2. Where is the fuel being used how do we identify the consumers on board? 3. What is our current performance how can we assess this? 4. What is our optimum performance what do we benchmark against? 5. What is causing the gap in performance efficiency how do we fix this?

Best practice Low or no cost solutions! Evaluate areas of unnecessary fuel consumption and identify practical energy saving measures Systematic process of document and data reviews, shipboard survey and data analysis Action plan with recommended ship-specific measures for reducing fuel consumption, cutting emissions and increasing efficiency. Voyage management assessment SEEMP implementation effectiveness Ship-board monitoring system evaluation Ship operational profile Energy use reduction by auxiliary systems and hotel services Steam system condition Hull performance and condition Engines performance and condition Ship fuel use profile

Case 1: Lower cost solutions $ TRIM OPTIMIZATION FOR NEW OPERATIONAL PROFILE (*) savings based on old design operated at today s market operational profile, HFO @ $750/ton & 300 operational days / year TRIM Optimization Design Year FOC maximum scope for improvement based on CFD FOC improvement expected / confirmed in Operation VLCC 2006 6% >1% confirmed Saving abt $250k/year ULCS 13k teu 2007 12.8% >1% - 2 confirmed Saving abt $700k/ year PCTC 2005 8% 1-2% confirmed Bulk Carrier 2004 6.6% 1 2% expected Tanker 2005 5.3% 1 2% expected

Case 2: Retrofit solutions bolt-on techs $$ Efficiency improving duct 4% Efficiency Gain Rudder reshaping: 1.3% Efficiency Gain Addition of rudder bulb: 0.9% Efficiency Gain

Case 3: Hull optimisation $$$ Bulbous Bow Optimization Design Year FOC maximum scope for improvement based on CFD ULCS 7k teu 2006 3% @ Design Draught = $315k/year 14% @ Light load (10.5m) = $1,5m/ year FOC improvement expected / confirmed in Operation To be tested in 2013-14 Savings based on 2006 design versus a 2006 design operated at today s market operational profile, HFO @ $750/ton & 300 operational days / year

Case 4: Combined solutions $$$$ Reshaping aft profile ESD s upstream of propeller ESD s downstream of propeller Re-designing propeller Reshaping rudder Additional 3-5% improvement

What should we expect in the future? $ Greater mix of technologies designed to give step-changes in efficiency Optimisation of existing technologies and machinery (many are already available) for the intended operation of the ship in question

What else? Maintenance management Significant scope for indirect cost savings Through-life maintainability and reliability The human element Raising awareness of performance and efficiency may require a cultural change Providing necessary training for both onshore and onboard staff Motivate (and incentivise?) crews in order to achieve results Ensure it is driven!

Paul McStay Lloyd s Register Global Technology Centre 4th Floor, Mountbatten House, 1 Grosvenor Square, Southampton, SO15 2JU, UK T +44 (0)2380 249 646 E marine-environment@lr.org w www.lr.org/environment Working together for a safer world Lloyd s Register and variants of it are trading names of Lloyd s Register Group Limited, its subsidiaries and affiliates. Copyright Lloyd s Register EMEA. 2013. A member of the Lloyd s Register group.