Selektope. Hull & Paint performance management

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Hull & Paint performance management How a novel bio-technology product out of Sweden builds excellent hull performance coatings made in Japan. Philip Chaabane, CEO, I-Tech Kenshi Date, Chief of Sales Headquarter Chugoku Marine Paints (CMP) Source: Chugoku Marine Paints, CMP

increased need for strong AF performance 1. Increased idling time in and around ports. 2. Dwell time in some ports exceeds 30 days on average! 1. Increased fouling pressure as world oceanic temperatures is increasing boosting the fouling activity 2. Global trade density moves step by step into warm water zones. 1. Invasive aquatic species are gaining focus and fouling can be factor limiting vessles from entering port. 2. Hull biofouling could be just as serious a problem for the spread of invasive aquatic species (IAS) as ballast water (IMO technical officer Dr. Theofanis Karayannis) Selektope

Hull performance and cost of fuel With medium calcareous fouling, the needed power increase to maintain a fixed speed is around 54%. Also, even if the surface coverage is only 5% (barnacle fouling), the total roughness resistance is only reduced by 1/3 (Shultz 2011). Bio-fouling is the by far most important contributor of increasing resistance and lower fuel efficiency. Source: M Shultz, 2007 Selektope

Novel technology adding dimensions to bio-fouling prevention Bio-repellent mode of action powering coatings for unrivaled static performance Relies on temporary receptor-stimulation of target organism, the Barnacle. Makes hull coatings perform better, saving fuel and reducing emissions. Reduced biocide loadings as efficacy is proven at 100s times lower loadings than conventional alternatives Compliant with regulatory schemes and compatible with existing coating technologies. Selektope

Important coating aspects to achieve lowest possible frictional losses Hull surface condition. Binder System Source: CMP New biocidal package Source: CMP Lowest possible fuel losses Leach layer Source: CMP Source: CMP Selektope

The development of new ingredients and coating systems a 15 year long journey 2013 Registration in China, Japan and Korea 2016 Major owners start commercial use. EU/BPR Registration achieved 2018 Steel cutting of first Stena RoRo vessel with Selektope (4 signed) > 200 vessels using Selektope technology 2000 Company established Basic academic research 2009 EU/Dossier filed 2015 CMP launches commercial AF with Selektope for coastal vessels CMP launches outfitting product in Korea, SeaFloNeo S-Premium 2017 Hempel launches static AF product CMP launches 2 nd global AF product. MS Calypso in DD for full coats of CMP CF- Premium (pre-launch)

Ship trial case study - Calypso Results from 24-months trial with Selektope paint Calypso 46,067dwt IMO II chemical and products tanker Chugoku MP SeaFloNeo CF Premium coating applied to vertical sides during 5-year drydock at Sembcorp Singapore

Ship trial case study - Calypso Global trading pattern > 50% operating time in antifouling hotspots with water temperatures > 25 C Longest idling period was 25 days (occurred 3 times of the period) Source: Laurin Maritime

Hull inspection Calypso, Nov 2017 (24 month service) Excellent hull condition on vertical sides Issues with fouling on propeller

Ship trial case study - Calypso The graph shows a comparison between Calypso and her sister ships Trading patterns have been similar Source: Laurin Maritime

Ship trial case study - Calypso Source: Naval Architect January 2018

Hull Coatings An investment with strong ROI Normal bunker consumption 25 ton per trading day (MR Tanker) Hull resistance fuel consumption increase: 0.15 ton/day/% Bunker fuel cost, IFO380 $400 / ton OR $650 / ton MGO Average 250 trading days per year Average hull resistance reduced from 20% to 10% by use of premium AF-coatings Premium cost per ship for premium AF-coatings: $100 000 Yearly fuel cost savings approximately $150 000 with standard bunker OR $250 000 (MGO) excluding hull cleaning savings Payback << 1 years

Thank you for your attention Although we want to try to control everything (with big data), there needs to be an element of risk taking to create significant change. For further information on these new Selektope-containing coatings improving your operational performance please visit SeaJapan