EEDI. Energy Efficiency Design Index

EEDI Energy Efficiency Design Index

MAN Diesel & Turbo The responsible way in leading technology MAN Diesel & Turbo is the world s leading designer and manufacturer of low and medium speed engines engines from MAN Diesel & Turbo cover an estimated 50% of the power needed for all world trade. We develop two-stroke and fourstroke engines, auxiliary engines, turbochargers and propulsion packages that are manufactured both within the MAN Diesel & Turbo Group and at our licencees. More than ever before, MAN Diesel & Turbo s development focus is the environmental performance of our engines. Using our unrivalled grasp of large engine technology, we aim to make our engines progressively cleaner, more powerful and more efficient. Our absolute commitment to reducing emissions while increasing fuel efficiency and power density starts with our active partnership in the emissions law making process and ends with the delivery of engines that achieve an ideal synthesis of prime mover characteristics. MAN B&W Diesel EEDI Energy Efficiency Design Index 3

The changing climate Time to act EEDI In a nutshell The IMO regulations Time to act New standards What is it? Climate change is a major challenge facing the world today. As a result of the greenhouse effect, caused by emissions of gases such as carbon dioxide (CO 2 ), average temperatures are climbing. This threatens fragile ecosystems and poses huge risks for agriculture potentially destabilising the global economy. In our own interests, and those of future generations, we all share a responsibility to minimise the impact of climate change. This means working proactively to reduce greenhouse gas emissions. Shipping makes a difference Although shipping is already the most efficient form of bulk transportation, it plays an important role: increa sing globalisation is set to raise the amount of goods travelling by sea. Against this background, the International Maritime Organisation (IMO) has identified potential for improving the efficiency of shipping even further, based on existing technologies such as streamlined engines and improved design. After intensive discussions with stakeholders, the IMO has adopted a number of mandatory instruments requiring new ships to meet higher standards of efficiency. These encompass every stage of a ship s lifecycle, applying to design, operation, maintenance, crew training, upgrades and retrofits. One of these measures is the Energy Efficiency Design Index (EEDI), which requires new ships to meet a certain level of energy efficiency from the outset. Another mandatory scheme, the Ship Energy Efficiency Manage ment lan (SEEM), which governs operations, applies to all ships. Financial incentives In addition, market-based measures such as levies or emissions trading may be introduced in the future, creating further incentives for efficient ships. These are currently the subject of discussion at the IMO, although they are proving to be controversial. The Energy Efficiency Design Index (EEDI) calculates a vessel s energy efficiency, based on a complex formula. This takes into account the ship s emissions, its capacity and speed. The lower a ship s EEDI, the more efficient it is. Under the regulations, ships are required to meet a minimum energy efficiency requirement in other words, their EEDI must be equivalent to or less than a threshold value. Who is affected? The EEDI does not apply to all ships. Initially, it targets the vessels responsible for the most emissions. In its current form, it applies to new ships of and above 400 GT, where a building contract is placed on or after 1 January 2013. If there is no contract, it applies when keel-laying occurs on or after 1 July 2013. In both cases, delivery must be on or after 1 July 2015. However, nation-states have the right to delay the EEDI s application by up to four years to ships flying their flag. Older vessels will only require an EEDI should they undergo a major conversion on or after 1 January 2013. CO 2 emission EEDI = = Benefit of ship Cf SFC Capacity speed New ships over 400GT Keel laying after July 2013 In addition, EEDI benchmarks will be raised succes Global CO 2 emission Shipping trade routes sively new ships built in 2015, 2020 and 2025 will need to meet even higher standards. 2013 2015 2020 2025 And who is exempt? Vessels with diesel-electric, gas turbine or hybrid propulsion do not need an EEDI. Currently, RoRo, Roax, cruise, offshore and other vessels not explicitly mentioned in the regulations are also exempt. However, the IMO has announced its intention of expanding the EEDI to include additional types of ships down the track, based on the results of its experience with the first phase. Diesel Electric Drive Hybrid ropulsion Drive Gas Turbine RoRo / Roax Cruise Offshore Shipping Aviation Rail a.o. Road Non transport rimary trade routes Secondary trade routes MAN B&W Diesel 4 EEDI Energy Efficiency Design Index EEDI Energy Efficiency Design Index 5

EEDI means efficiency Definition & application Anatomy of the Energy Efficiency Design Index Formula & Definitions Required EEDI 50 New ships from 1.1.2013 Main Engines Emissions Auxiliary Engines Emissions Shaft Generators / Motors Emissions Efficiency Technologies 45 New ships from 1.1.2015 EEDI (g CO 2 / t nm) 40 35 30 25 20 15 Excluded New ships from 1.1.2020 New ships from 1.1.2025 Reference line 10 5 Included Transport work Required EEDI The required EEDI represents a minimum energy efficiency requirement for new ships depending on ship type and size. This begins with a baseline value in 2013 and is raised successively in three steps until 2025. The baseline for the required EEDI is calculated from the EEDI of vessels built after the millennium. ower Included EEDI Shaft power S 25.000 50.000 75.000 100.000 125.000 150.000 175.000 200.000 Auxiliary engines Switch board Shaft motor TI Shaft generator FTO Waste heat recovery etc. AEeff Main engine ME Assumption The EEDI assesses the energy consumption of the vessel at normal seafaring conditions, taking into account the energy required for propulsion and the hotel load for the crew. Energy consumed to maintain the cargo and for manoeuvring or ballasting is not considered. ower Excluded EEDI AE Boiler Cargo heat Thrusters Cargo pumps Cargo gear Ballast pumps Reefers Main engine pumps (2,5 % ME ) Accomodation (250 kwh) Engine ower () Individual engine power at 75% Maximum Continous Rating Main engine power reduction due to individual technologies for mechanical energy efficiency Auxilliary engine power reduction due to individual technologies for electrical energy efficiency ower of individual shaft motors divided by the efficiency of shaft generators Combined installed power of auxilliary engines Individual power of main engines CO 2 Emissions (C) CO 2 emission factor based on type of fuel used by given engine C C C Main engine composite fuel factor Auxilliary engine fuel factor Main engine individual fuel factors Ship Design arameters V Ship speed at maximum design load condition Deadweight Tonnage (DWT) rating for bulk ships and tankers; a percentage of DWT for Containerships DWT indicates how much can be loaded onto a ship Specific Fuel Consumption (SFC) Fuel use per unit of engine power SFC SFC SFC * SFC Main engine (composite) Auxilliary engine Auxilliary engine (adjusted for shaft generators) Main engine (individual) Correction and Adjustment Factors (F) Non-dimensional factors that were added to the EEDI equation to account for specific existing or anticipated conditions that would otherwise skew individual ships rating Availability factor of individual energy efficiency technologies (=1.0 if readily available) Correction factor for ship specific design elements. E.g. ice-classed ships which require extra weight for thicker hulls Coefficient indicating the decrease in ship speed due to weather and environmental conditions Capacity adjustment factor for any technical / regulatory limitation on capacity (=1.0 if none) 6 EEDI Energy Efficiency Design Index EEDI Energy Efficiency Design Index 7

Meeting the EEDI requirements with MAN Diesel & Turbo To comply with the EEDI, ships need to be fitted with efficient, well-designed technology. MAN Diesel & Turbo offers a comprehensive range of solutions, including engines, turbochargers and propellers. Built entirely by MAN Diesel & Turbo, these systems reflect the high quality standards that have made us a world leader. Highly efficient engines As gas contains less carbon, running engines on liquid natural gas (LNG) produces far lower emissions. This leads to a significantly reduced EEDI. MAN Diesel & Turbo has recently introduced a range of extremely efficient and versatile dual-fuel engines, suitable for almost all types of shipping. These allow shipowners to benefit from the increasing availability and attractive price of gas, yet offer full fuel flexibility. Multiple combinations MAN Diesel & Turbo offers a wide range of energy efficiency devices to provide the optimum solution for your vessel. One of the most efficient ways to optimise your vessel is through the use of Kappel propellers in combination with a rudder bulb. Whether your engine is driven by liquid or gaseous fuels, this increases the efficiency of your vessel up to 10%. Carbon Factors Various solutions on the market today and how they can be combined CF (t-co 2/ t-fuel) Diesel Gas Oil Light Fuel Oil (LFO) Heavy Fuel Oil (HFO) Liquefied Liquefied Liquefied etroleum Gas um Gas etrole- (LG/ (LG/ ropane) Butane) Natural Gas (LG) ost Swirl Finns Rudder Bulb Kappel BCF AHT Nozzle Mewis Duct re Swirl Finns Efficiency rudders Due to reduced carbon factors, the use of LNG by the new 35/44DF results in approx. 14% lower EEDI 3,30 3,20 3,10 3,00 2,90 2,80 2,70 2,60 2,50-1,7% -2,9% -6,4% -5,5% -14,2% CF (t-co 2/ t-fuel) 3,205 3,151 3,114 3,000 3,030 2,750 ost Swirl Finns 2-3% Rudder Bulb 2-5% Kappel 3-5% BCF 2-5% AHT Nozzle 5-8% Mewis Duct 3-8% re Swirl Finns 3-5% Efficiency rudders 2-4% Can be combined Can sometimes partly be combined should not be combined MAN B&W Diesel 8 EEDI Energy Efficiency Design Index EEDI Energy Efficiency Design Index 9

Waste heat recovery The more efficient an engine is, the more power it obtains from the same amount of fuel. At MAN Diesel & Turbo, we have the expertise to maximise this output: for example, by making use of the heat given off by the combustion process, which can be recovered from the cooling water and exhaust gases. In fact, up to ten per cent more power can be obtained using an effective waste heat recovery system. The energy recovered by this system can be used to heat accommodation, fuel and/or cargo, or power a steam turbine and generator. 15% exhaust gas losses power generation, air conditioning heat recovery hot water heat recovery steam 17% thermal energy recovery freshwater generation electrical propulsion 30% 15% generators 45% 32% 4 engines, 1 stand-by 11% 12% seawater cooling losses Typical energy heat balance of a cruise ship Carbon Factors Shaft power output: 47,34% Gain: 11,0% EI, power production of TES: 5,0% Lubricating oil cooler: 4,6% Jacket water cooler: 4,4% Exhaust gas and condenser: 13,6% Air cooler: 17,1% Heat radiation: 2,2% Fuel 100% 9L48/60CR at 85% MCR 10 EEDI Energy Efficiency Design Index EEDI Energy Efficiency Design Index 11

Example Attained EEDI vs Required EEDI Container ship DWT design draught 15375 t ME 11200 kw (MAN B&W 8L58/64) AE 4 x 1720 kw (MAN 8L21/31) Generator efficiency 93% Speed 19 knots Diesel / Gas Oil, ISO 8217, DMC DMX Tanker (2008) DWT design draught 7900 t ME 3360 kw (MAN 6L32/44CR) AE 1 x 1290 kw (MAN 6L21/31) Generator efficiency 93% Speed 13,3 knots Diesel / Gas Oil, ISO 8217, DMC DMX Requirement Container ship Requirement Tanker 50 45 40 35 30 Attained EEDI: 25,49 Required EEDI: 26,96 IMO No. 1 Attained EEDI 25,49 hase 0: 1 Jan 2013 31 Dec 2014 Required EEDI 26,96 Compliance Index 94 Calculation ref. 59960 25 20 15 Attained EEDI: 14,24 Required EEDI: 15,07 IMO No. 2 Attained EEDI 14,58 hase 0: 1 Jan 2013 31 Dec 2014 Required EEDI 15,27 Compliance Index N/A Calculation ref. 718835 25 20 10 15 EEDI 10 5 EEDI 5 50.000 100.000 150.000 200.000 250.000 0 50.000 100.000 150.000 200.000 250.000 300.000 350.000 400.000 450.000 New ships from 1.1.2013 New ships from 1.1.2015 New ships from 1.1.2020 New ships from 1.1.2025 Reference line New ships from 1.1.2013 New ships from 1.1.2015 New ships from 1.1.2020 New ships from 1.1.2025 Reference line Sensitivity Assumptions and considerations: Sensitivity Assumptions and considerations: Attained EEDI: 25,49 Attained EEDI: 22,29 (with 12V51/60DF) Attained EEDI: 18,06 (with engine 9L51/60DF; 9000 kw and 18 knots) All variations are only done with changing the ME characteristics. Attained EEDI: 14,24 Attained EEDI: 13,84 (with engine 9L27/38; 3060 kw and 185 g/kwh SFC*) Attained EEDI: 12,64 (using 6L35/44DF) All variations are only done with changing the ME characteristics. * 85% MCR 12 EEDI Energy Efficiency Design Index EEDI Energy Efficiency Design Index 13

World Class After Sales Support For marine propulsion and GenSets Service Facilities (Service Centres, Authorized Repair Shops, Spare arts Stocks) Agencies rimeserv peace of mind for life With more than 150 rimeserv service stations and service partners worldwide, plus our growing network of rimeserv Academies, the MAN Diesel & Turbo after-sales organisation is committed to maintaining the most efficient and accessible after-sales organisation in the business. rimeserv s aim is to provide: rompt delivery of high demand OEM spare parts within 24 hours Fast, reliable and competent customer support Individually tailored O&M contracts Ongoing training and qualification of service personnel Global service, open 24 hours-a-day, 365 days-a-year Diagnosis and troubleshooting with our high performance Online Service Retrofitting of the latest MAN Diesel & Turbo engine and turbocharger technologies for improved operating economy and minimised emissions The rimeserv offering Based on almost 110 years of service experience with marine diesel engines, our sophisticated logistics system ensures that all frequently requested spare parts are available worldwide within 24 hours. In addition, MAN Diesel & Turbo Online Service helps to optimise maintenance cycles by the use of remote engine monitoring, diagnostics and calibration. The resulting condition-based maintenance (CBM) promotes high availability, increases operational safety, shortens downtimes and enhances the performance of MAN Diesel & Turbo marine engines. The bottom line: leaner operating costs and better planning for you. When service is required, the MAN rimeserv network responds to organise assistance as fast as possible. This guarantees rapid completion of maintenance work and high availability of MAN Diesel & Turbo engines, GenSets, turbochargers, gears, propellers and marine propulsion packages. 14 EEDI Energy Efficiency Design Index In short: MAN rimeserv gives you the benefit of our specialist expertise in marine power so that you can concentrate on your own core business.

All data provided in this document is non-binding. This data serves informational purposes only and is especially not guaranteed in any way. Depending on the subsequent specific individual projects, the relevant data may be subject to changes and will be assessed and determined individually for each project. This will depend on the particular characteristics of each individual project, especially specific site and operational conditions. Copyright MAN Diesel & Turbo. D2366498EN rinted in Germany GMC-AUG-08122 MAN Diesel & Turbo 86224 Augsburg, Germany hone +49 821 322-0 Fax +49 821 322-3382 marineengines-de@mandieselturbo.com www.mandieselturbo.com MAN Diesel & Turbo a member of the MAN Group