Philip Padfield, CEO Sustainable shipping 22nd October 2010 1
Agenda 1. Who we are 2. Industry in change 3. Enabling sustainability: From data to intelligence 4. Key points
Eniram The Company in brief Finland based Eniram, founded in 2005, provides advanced software based decision support systems to optimize the performance of large commercial vessels Operations by geography Sales offices: Helsinki (HQ), Fort Lauderdale, London, Boston Service and sales partners: Singapore, Hamburg, Oslo, Miami, Shanghai, Genova Selected customer references Recent recognition Current principal products Eniram Onboard: DTA Eniram Onshore: FLEET Information Intelligence Eniram offers real-time vessel optimisation (Eniram Onboard) and strategic guidance (Eniram Onshore) to operators in the shipping industry
What we do Extract real time data from all existing systems Provide additional measurement techniques Analyze and optimize ship and fleet performance based on the data
Industry in Change
Environmental pressures CO 2
Market drivers Rising fuel costs Trends and drivers in shipping fuel costs Bunker Oil price since 2002 Avge. bunker prices twice 2004-2005 average Cost of ship fuel is expected to rise by a further 50% as result of increased use of (low sulfur) distillate fuel This will follow the implementation of the new International Maritime Organization rules MARPOL Annex VI: permitted sulfur content in Emission Control Areas down to 0.1% by 2015 from current 1.0% In addition the International Maritime Organization has set out to take the sulfur content of bunker oil down to 3.5% from 4.5% by 2012 and further down to 0.5% by 2020 applicable globally By comparison long-haul trucks in the US are only allowed to use fuel with a sulfur content of 0.015% USD/MT 800 600 400 200 0 2002 2003 2004 2005 2006 Bunker oil price since January 2009 USD/MT 500 450 400 350 300 250 200 2007 2008 Bunker Oil, 380 cst, Rotterdam 01/2009 03/2009 05/2009 07/2009 2009 09/2009 2010 11/2009 01/2010 03/2010 05/2010 07/2010 09/2010 Bunker Oil, 380 cst, Rotterdam Fuel costs account for an increasing proportion of ship operation costs with further cost pressure from environmental regulations Source: Datastream, IMO
Pathways to low carbon shipping Economic comparison of technologies potentially used to reduce shipping emissions by 2030 Average abatement curves for world shipping fleet 2030 Cost per ton CO 2 averted (USD/ton) 220 180 140 100 60 20-20 -60 Voyage execution Steam plant operational improvements Speed reduction (port efficiency) Engine monitoring Reduce auxiliary power Speed reduction (fleet increase) Propulsion efficiency devices Trim/draft Fuel cells aux engine Frequency converters Light system Propeller condition Electronic engine control Contra-rotating propellers Gas fuelled Weather routing Air cavity/lubrication Hull condition Kite Waste heat recovery Fixed sails/wings Cold ironing Exhaust gas boilers on aux Eniram optimization focus Wind generato rs (not shown) Solar panels (not shown) -100 0 100 200 300 400 500 600 700 800 Baseline: 1,530 million tons per year CO 2 reduction (millions tons per year) Some of the economically most sensible solutions for CO 2 emission reductions in shipping are improvements in voyage execution, engine monitoring, propulsion efficiency, trim and draft, propeller condition and hull condition, which would all generate net savings
Eniram performance optimisation Value proposition from vessel to corporate level Onboard / Vessel level Onshore / Fleet level Information Intelligence / Corporate level Instant savings based on optimal trim Real time information and performance breakdown analysis of vessel propulsion power based on data collected by VMS Long term savings based on fleet wide optimisation of operational key performance indicators Continuous optimisation of Key Performance Indicators on vessel and fleet level based on real time data Strategic guidance based on fleet performance data Case specific analysis to support strategic level decisions on fleet investments, maintenance and operation DTA (Dynamic Trimming Assistant) Optimal stern position Optimal bow depth Vessel KPI report Trim Fouling Speed & route Engine Maneuvering Fleet KPI report Instant savings in fuel 2-5% Long term savings up to ~20% in fleet operation and maintenance Long term savings due to better information to support strategic decisions such as investments, routing and scheduling Eniram offering provides savings from day one based on Dynamic Trimming Assistant Key Performance Indicators and fleet level optimisation extend the scope of efficiency benefits Extensive vessel performance database provides a unique position for strategic guidance i.e. Information Intelligence services
Enabling sustainability: from data to intelligence 1 0
Value proposition vessel level Instant savings onboard with Eniram DTA DTA savings illustration: case examples 1,2 Dynamic Trimming Assistant Ship type Hull trim potential Expected rate of usage Engine usage savings potential Annual savings potential 1 Cruise vessel (50 MW) 7% 70% 4.9% ~ 540,000 Measure real-time dynamic trim Optimize trim related to speed Tanker - crude oil (50 MW) 4% 40% 1.6% ~ 330,000 Container ocean 7% 65% 4.6% ~ 810,000 Actualized savings Minimal resistance Optimal bow depth Optimal stern position Average actual savings for a cruise vessel ~2.5% ( 180,000 annually) Less pollution based on improved fuel efficiency Better machinery utilisation - less propulsion power required 1. Real-time measurement of dynamic inclination from sensors 2. Extracting dynamic trim from inclination data 3. Calculating the optimal trim for prevailing conditions 4. Displaying both the dynamic trim and the optimal trim 5. Crew implements results as part of standard operations In general expectation is 2 % of realized savings with a ca. 5 % total savings potential 1) Fuel cost assumptions: HFO price 490 USD/ton, Exchange rate 1.3 EUR/USD, Specific fuel consumption 0.22 ton / MWh 2) Vessel type specific assumptions: Cruise vessel 220 operating days per year, propulsion power rate 50%; Tanker crude oil 280 operating days per year, propulsion power rate 75%; Container ocean 300 operating days per year, propulsion power rate 75%
Value proposition fleet level Fleet wide optimisation with information visibility Factors explaining propulsion energy consumption Eniram vessel optimisation: Key Performance Indicators Area Cost Savings target Methodology Trim Current Draft Wind Vessel energy consumption test (same leg) Leg 1 Leg 2 Leg 3 Hull and propeller fouling 353 MWh 326 MWh 302 MWh Late Departure / Early Arrival Speed Profile Route Waves Shallow Water Stabilizers Same itinerary - 17% difference in propulsion energy consumption Fouling 5% 1-2% Optimal maintenance, fouling indicator in Green Trim 5% 1-2% 80% of time trim in Green Stabilizers 1-2% 1% Show cost of stabilizers, Power component Green Route 2-8% 2% Compare to typical route, par = Green Speed Profile 2-10% 2% Compare to typical profile, par = Green Maneuvering 3% 1% Compare to typical profile, par = Green Delay 2% 1% Compare to schedule Engine optimisation 3% 2% Show deviation to reference Service 1 5% 2% (Wind) 5% N/A Show deviation to reference (Waves) 3% N/A Show deviation to reference Vessel KPI report Trim Fouling Speed & route Engine Maneuvering Continuous reporting Fleet level comparison KPI comparison Voyage comparison Fleet comparison Target to save up to 10% with more efficient operations based on vessel key performance indicator optimisation Long term savings potential on fleet level up to 20% 1) Service includes e.g. air conditioning, boilers and (cruise vessel) hotel operations
Examples of Eniram Information Intelligence Value proposition Information Intelligence Fouling and Paint Performance Hull Deflection and vessel stress Fleet Performance Information Intelligence services can support clients in operational optimisation Long term value in fleet level comparisons to analyse the effects of various technologies, ship structure and design
Temperature Deflection Position New York Miami Belize San Juan
Customer references Hamburg Süd Royal Caribbean Cruises Ltd. After successful trials of DTA Hamburg Süd rolled out the solution to Alianca Maua, a 5500 TEU container ship, in 2009 The system is currently in use or deployment on 12 ships Additional 14 vessels planned The first ship deployed with DTA was Liberty of the Seas in 2009 DTA is currently in use or deployment on 16 vessels through out RCL (RCI, Celebrity, Pullmantur), with further vessels in implementation stage We expect to gain return on this initial investment in less than a year - F. Deichmann, Columbus Shipmanagement The deployment of Eniram s technology is part of our continued commitment to utilize next generation technologies to increase energy efficiency and decrease carbon footprint - W. Wright, RCI Eniram solution has been well received in both container shipping operations and cruise liners Account landing ongoing with 20% of TOP20 container operators and with 20% of TOP10 tanker operators
Key points
Key points Measure and analyze in real-time Provide vessel and fleet guidance Save energy & reduce emissions
philip.padfield@eniram.fi 1