DSME GreenShip 18,000 TEU Container Carrier. Oh-Yig Kwon / Director Marketing Engineering Team, DSME Seoul May 12, 2011

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DSME GreenShip 18,000 TEU Container Carrier Oh-Yig Kwon / Director Marketing Engineering Team, DSME Seoul May 12, 2011 1

Contents Pollution/Emission from Ships & Regulations DSME Green Ship Econology Introduction - 18,000 TEU Containership Conclusion 2

Pollution & Emission from Ships Air pollution on voyage Water pollution on voyage Ground pollution on voyage Pollution on ship recycling SOx NOx GHG* PM* VOC* Waterproof oil Bilge water Cooling water Grey water Antifouling materials Ballast water Noise Precipitates Wastes Chemical residues Oil residues Paint Plastic Electrical product Sealed gas Chemical product *GHG (Green House Gas; CO2) *PM (Particulate Matter) *VOC (Volatile Organic Compound) 3

Pollution & Emission from Ships Total CO 2 emissions from shipping are 3.3 % of the global total. Shipping transportation shares 90% of total transportation. Shipping Transportation 3.3 % 1 Billion ton All Transportation 27 % 8 Billion ton Electricity and Heat Production (35 %) Manufactoring Industries and construction (15.3 %) Other (4.6 %) 30 Billion ton Other Energy Industries (18.2 %) Other Transport (Road) (21.3 %) Rail (0.5%) International Aviation (1.9 %) International Shipping (2.7 %) Deomestic Shipping and Fishing (0.6 %) CO 2 emissions volume (2007) * Source ; Second IMO GHG Study 2009. 4

Pollution & Emission from Ships Ship is the most efficient transportation in view of CO 2 emission Crude LNG General Cargo Reefer Chemical Bulk Container LPG Product Ro-Ro/Vehicle Rail Road CO 2 efficiency = CO 2 / (tonne * kilometre) Fuel consumption CO 2 = total CO 2 emitted from the vehicle within the period tonne*kilometre = total actual number of tonne-kilometres of work done within the same period * Source ; Second IMO GHG Study 2009. 0 50 100 150 200 250 [%] CO 2 efficiency 5

Pollution & Emission from Ships GHG emissions from ships are predicted to be at least doubled by 2050 [million tons/year] 4000 Expected Scenario A1F1 A1B A1T A2 B1 B2 CO 2 emissions from ships 3500 3000 2500 2000 1500 1000 500 1 Billion ton 2-3 Billion ton 0 2007 2010 2020 2030 2040 2050 Year * Source ; Second IMO GHG Study 2009. 6

Emission Regulations - NOx NOx emissions [g/kwh] 20 18 16 14 12 10 8 6 4 2 0 IMO Tier I, 2000 IMO Tier II, 2011 IMO Tier III, 2016 in Emission Control Areas 0 200 400 600 800 1000 1200 1400 1600 Engine speed [RPM] RPM Tier 1 (current) Tier Ⅱ (from 2011.1.1) Tier Ⅲ (from 2016.1.1) Under 130 17.0 g/kwh 14.4 g/kwh 3.4 g/kwh 130 ~ 2000 45.0 n (-0.2) g/kwh 44.0 n (-0.23) g/kwh 9 n (-0.2) g/kwh IMO NOx Tier II : Adopted on MEPC 58 (2008.10) - After 1 January 2011 (Keel Laying) IMO NOx Tier III : Tentative Assent - After 1 January 2016 (Keel Laying) Over 2000 9.8 g/kwh 7.7 g/kwh 2.0 g/kwh 7

Emission Regulations - SOx 4.5 Sulfur limit [%] 3.5 1.5 1.0 0.5 0.1 IMO (global) IMO (ECA) USCG EU Port 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year Sulfur Content Regulation or Area 2010 2012 2015 2020 Global Limit 4.5 % 3.5 % 0.5 % IMO ECA 1.5 % 1.0 % (after 2010.07) 0.1 % EU Port 0.1 % Residual Fuel (IFO380 or LS380) Distillate Fuel (MGO) USCG (within 24NM) 0.5 % 0.1 % 8

Emission Regulations CO 2 EEDI (Energy Efficiency Design Index) Technical Regulation Design Specific CO Emissions ( g / hr) = = [ / ] DWT Speed ( ton knot) 2 EEDI g ton mile Main engine Aux. engine Shaft motor Waste heat recovery system Energy saving device & design M nme M npti nwhr neff f C SFC P + ( P C SFC * ) + f P f P C SFC f P C SFC = ( fi CapacityVref fw ) Capacity factor Weather factor(wave, wind) j FMEi MEi MEi AE FAE AE j PTI () i eff () i AEeff () i FAE AE eff ( i) eff () i FMEi MEi j= 1 i= 1 j= 1 i= 1 i= 1 i= 1 Correction factor (by ship type) Transportation capacity & speed Goal of EEDI Mitigate CO 2 emissions Increase cargo carrying capacity Enhance speed performance If using LNG as ship fuel, Reducing CO 2 emission of Main engine & Aux. engine Reducing EEDI 9

Emission Regulations CO 2 EEOI (Energy Efficiency Operational Indicator) Operational Regulation Voyage Specific CO2 Emissions ( g) EEOI = = [ g / ton mile] DWT Miles ( ton knot) Carbon content of fuel FC Ccarbon + FC Ccarbon + FC Ccarbon +... i= 1 FuelType1 i= 1 FuelType2 i= 1 FuelType3 = Fuel consumption mcarg oi, Di Distance of voyage i= 1 Transportation capacity Effect of slow steaming Ship speed Engine power 100 % Service Speed 90% MCR 70 % Service Speed 30% MCR 50 % Service Speed 15% MCR Slow steaming as 70 % of design speed Reducing fuel consumptions down to abt. 30 % Reducing EEOI Service speed = guarantee speed at NCR with 15% sea margin 10

Emission Regulations Unwanted Organism Ballast Water Treatment System (BWTS) IMO Reg. B-3 Ballast Water Management for Ships Rule Capa. of WBT (m 3 ) Keel laying ~ 08 09 10 11 12 13 14 15 16 17 Exist. Ship B-3.1.2 Above 5000 m 3 Before 09 D-1 or D-2 D-2 New Ship Note. B-3.2.2 5000 m 3 and above 09 11 D-1 or D-2 D-2 After 12 D-1 or D-2 D-2 1. D-1: Exchange Standard, D-2: Performance Standard (BWTS) 2. The international convention for the control and management of ship ballast water and sediment, 2004 will enter into force 12 months after ratification by 30 states, representing 35% of world merchant shipping tonnage. To date, there are 27 States that represent 25.3% of the world merchant shipping tonnage (Oct. 2010). List of BWTS which received Type Approval Certification by their respective Administrations Supplier Technology IMO Final Approval Administration Alfa Laval Filter + UV + TiO 2 Yes Norway Hyde Marine Filter + UV Not Applicable USA Panasia Filter + UV Yes Korea OptiMarin Filter + UV Not Applicable Norway OceanSaver Filter + Electrolysis + Deoxygenation + Cavitation Yes Norway Techcross No Filter + Electrolysis Yes Korea Hamann HG Filter + Hydrocyclone + Electrolysis Yes Germany NK No Filter + Ozonation Yes Korea NEI Treatment System No Filter + Deoxygenation + Cavitation Not Applicable Liberia/Marshall Hitachi Coagulation + Magnetic separion + Filter Yes Japan 11

Contents Pollution/Emission from Ships & Regulations DSME Green Ship Econology Introduction 18,000 TEU Containership Conclusion 12

Future Needs More Economic Rapid & continuous increase of oil price More Environmental Friendly Legislation intensified Higher Performance Market wants a BIGGER & SAFER vessel Higher Operating Flexibility Cargo type/amount variation due to rapid economic change Now 18,000, How big in near future? Pirate attack in gulf of aden 13

Innovative Technology Keywords More Economic Lower hull resistance Higher power train efficiency Slow streaming Speed history Service speed More Environmental Friendly Switching to more environmental friend fuel Emission reduction device Higher Performance Higher Operating Flexibility Optimum vessel design ( speed, size etc. ) CARGO multi purpose +? Higher safety ( crew, system etc. ) Less maintenance 14

DSME Econology Plan Econology = Ecology + Economy + Technology High Performance Ship Design Optimum Dimensions Excellent Speed Performance Maximum Capacity (DWT, VOL) Competitive FOC Safety Conventional Design Goals Green Enhanced Design Fuel(= CO 2 ) Saving Max. (EEDI) Efficient Operation (EEOI) Emission Reduction Less Maintenance New Requirements of Environmental Associations & Shipping Industry Hi-Performance & Environment Friendly Ship 15

DSME Econology Plan FEEL 389 FEEL 599 16

Build Econology Energy LNG Fueled Propulsion Nuclear Powered Propulsion Fuel Cell Hybrid Electricity Generation Solar Powered Ship Wind assisted Propulsion Material Non-Corrosive Material Environment Friendly Painting Material Advanced A/F Paint Consideration of Ship Recycling Convention Operation Trim Optimization Optimum Weather Routing Arctic Routing Slow Steaming (Eco-Speed) Device Shaft Generator Pre-Swirl Stator (PSS) Ducted PSS Rudder Bulb Fin Ballast Water Treatment System (BWTS) Waste Heat Recovery System (WHRS) NOx Reduction Device SOx Reduction Device Design Optimized Hull Form Design Protective Piping Arrangement High Efficiency Propeller Design Optimized Main Engine Selection and De-rating Enhanced Hull Structure Electric Driven Deck Machinery Bulbous Bow Optimization Air Cavity System (ACS) VOC Reduction Device Grey Water Treatment System 17

Contents Pollution/Emission from Ships & Regulations DSME Green Ship Econology Introduction 18,000 TEU Containership Conclusion 23

Summary CO2 Reductions Energy Design LNG Fueled Propulsion 23% Optimized Hull Form Design High Efficiency Propeller Design 2~3% Bulbous Bow Optimization Device Material Operation Shaft Generator 1% Pre-Swirl Stator (PSS) Ducted PSS 3~6% Rudder Bulb Fin Waste Heat Recovery System (WHRS) 3~4% NOx Reduction Device SOx Reduction Device Air Cavity System (ACS) 8~10% Advanced A/F Paint 2~5% Trim Optimization 3~4% Optimum Weather Routing 4~5% 24

EEDI evaluation EEDI (Energy Efficiency Design Index) Speed reduction, increased Capacity and improved technology EEDI Efficiency Improvment EEDI Reference Line (IMO) (Average, ordinary ship) DWT increase (a) Speed Reduction (b) Technologies (c) Econologies M/E Selection (MC ME ME-GI) Slow Steaming (Eco-Speed) M/E Derating ( Power x RPM) Propeller Efficiency (Larger Dia.) Pre-Swirl Stator, Rudder Bulb Fin WHRS, Shaft Generator EEDI Reduction Rate Reduction Rate should be (b)+(c) or only (c). Modified Ship Deadweight 25

Conclusion Environment Friendly Economical Operation Through Green Ship Technologies 26

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