OECD Council Working Party on Shipbuilding (WP6) Green Ship Technology Development, Korea and KR

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OECD Council Working Party on Shipbuilding (WP6) Submission by KR Green Ship Technology Development, Korea and KR 7~8 July 2011 Kim, Mann-Eung, PhD, Director, Green & Industrial Technology Center Han, Gil-Yong, General Manager, IACS & Int l Affairs Center

List of Contents 1. Introduction of KR s Green Master Plan 2. IMO GHG Framework 3. Korean Shipowners Efforts 4. R & D activities 5. Master Plan for Green Ships 6. Discussions on technical solutions 7. Summary 8. Q & A

Korean Register Green & Industrial Technology Center Green Standard New & Renewable Energy Green Ship GHG Reduction Plants Main Business and Action Plan Green Standards Verification & Certification Leading Green Technology Technical Support International Activity in IMO, IEC, ISO etc International Cooperation Green Ship Certification Wind Turbine, Ocean Energy, FC Certification Plant Certification and Verification CDM Verification and Certification Essential Technology Development Improvement Technology for Energy Efficiency Technology for GHG Reduction Strategic and Technical Advise to Government Education Technical support as Coordinator

Green Ship IMO Activities Summary of IMO GHG Convention Technical Operational Market-based Measures EEDI (Energy Efficiency Design Index) EEOI/SEEMP (Energy Efficiency Operational Indicator) (Ship Energy Efficiency Management Plan) MBM (GHG Fund, ETS) Application New Ships New/Existing Ships New/Existing Ships Legislative framework Amendments of MARPOL Annex VI Amendments of MARPOL Annex VI Stand-alone Convention Technologies To be developed Future s propulsion power system(fuel cell, wind power, etc) Improvement of propulsion efficiency(pre-swirl stator, thruster fin, etc) Technology for reduction of friction(air lubrication, coating, etc) CO2 capture and storage Best practices Establishment of the legislative regime ETS GHG Fund Hybrid Mechanism

GHG Reduction Target GHG Reduction Green Ship How can we achieve the Target? Phase 0 Phase 1 Phase 2 Phase 3 30% 20% 10% Technology Improvement Adoption of New Technology Stage 1 Stage 2 Stage 3 Stage 4 Baseline

Green Ship How can we achieve the Target? Emission Reduction from ship Eco-friendly Technology to reduce emission from ship Technology Target Remarks High efficiency Engine CO 2 Reduction Limits of technology CCS (Carbon Capture and Storage) SCR (Selective Catalytic Reduction) EGR (Exhaust Gas Recirculation) CO 2 Reduction NO x Reduction NO x Reduction CO 2 storage and disposal problem : $500/kW cost up Redesign the system, additional devices and process is required (Eff.>5%) Redesign the system, additional devices and process is required (Eff.>5%) Solar Energy Saving The days of operation Wind Energy Saving The days of operation Fuel Cell Alt. Power Lifetime and cost

Green Ship How can we achieve the Target? Ship Owner s Efforts Div. Items Fuel Save App. Ex. Hold On test Ship s Resistance Propulsion Efficiency Engine Efficiency Fuel Operational measures Others Hull Cleaning/Blasting 1~3% Propeller polishing 1~3% Paints 3~5% PBCF 3~5% Rudder Thrust FIN 4~6% Twisted leading edge rudder 1~3% Kite VID(Variable Ignition Distributor) 6% Main engine Slide valve 1~2% EN-FINER 1% Homogenizer 1% Emulsion fuel 10% EGR system ECOS 5% Fuel saving program Vessel performance optimizer WHRS M/E T/C cut-off 3~4% Energy Power-Bar

Green Ship R&D Status Green Ship Project Ministry of Knowledge Economy Project Name Fund Period Development of the key technology for a ship drag reduction and propulsion efficiency improvement 18.6 Mil. EUR 2011~2015 Development of New Propulsion System for Fuel Saving of Ships 9.0 Mil. EUR 2011~2015 Development of energy saving devices to improve resistance and propulsion performances for various types of ships and real ship application 9.0 Mil. EUR 2011~2015 Hull weight reduction by applying new material and structure 6.4 Mil. EUR 2011~2015 Development to the mid-low temperature waste heat recovery power system for ships 12.8 Mil. EUR 2011~2015 Development of Enabling Technology for Hybrid Power Source with Fuel Cell 3.2 Mil. EUR 2011~2013

Green Ship R&D Status Green Ship Project Ministry of Land, Transport and Maritime Affairs Project Name Fund Period Development of TCS(Testing, Certification and Standards) System for Green Ship Development of Waste Heat Recovery System Using Thermo-Electiric Technology Development of Emission Free Ship(incl. Gas Fuel Supply and Storage System and Application Technology of Renewable Energy) Development of Power Management System for Green Ship with Electric Propulsion System 25.6 Mil. EUR 2011~2015 2012~2015 2012~2015 2012~2016 Development of Carbon Capture and Storage System 2013~2017 Development of reduction technology for Black Carbon and Particulate Matter Development Best Practice for each Ship Type with Various Navigation Route 2012~2015 2012~2016

Green Ship Perspective Next Generation Ship Company GHG Target Hanjin Shipping 15% CO2/teu km reduction of owned and chartered container ships by 2015 compared to 2008 (83.4 CO2 g/teu-km (2008) -> 71 CO2 g/teu-km (2015) ) NYK 10% below 2006 levels by 2013 A.P. Moller Maersk Group 20% reduction for 2007-2017 CMA-CGM Others (Company Policy) 1. An electronic injection system for the engine: fuel (-3% on average) and oil (-25%) 2. New Technology - Optimized hull design, twisted edge rudder, Pre-Swirl Stator, AMP (Alternative Marine Power), low sulphur fuel NOL(APL) : Sound environmental stewardship COSCO Group: Environmental protection policies

Green Ship Perspective Master Plan for Green Ship Stage I Short Term Project Stage II Medium Term Project Stage III Long Term project 2020 2030 2040 Power Reduction Routine Optimization Opti-power System Low Friction Paint Heat Recovery Alternative fuel Renewable energy Application Propulsion Power Optimization Carbon Capture and Storage Hybrid System. Optimization of Hull Fuel Cell Application Superconductor Motor Short Term (2010~2020) Medium Term (2021~2030) Long Term (2031~ 2040) Current Power Efficiency Check and Improve Additional Devices to be installed New Generation Power Supply and Propulsion System Stage 1 Stage 2 Stage 3

KR s Activities for Green Ship Technology VOC Recovery Solar Power Wind Pow Propulsion Efficiency Heat Recovery CO 2 Capture De-NOx, De-SOx PM Reduction

KR s Activities for Green Ship Technology Green Ship TCS System Technology for energy efficiency improvement Technology for GHG emissions reduction Assessment for Design & Performance Certification Technology for application of new/renewable energy (Test & Verification) Standard Certification Identifying applicable technology Setting up the test facility Analyzing effects of technology On-board verification Development of design standard Development of performance test standard Development of accreditation standard Development of accreditation scheme Standardization activities(imo)

KR s Activities for Green Ship Technology Control and Management of Hybrid Power System

KR s Activities for Green Ship Technology VOC Recovery Source of VOC from Ships VOC+IG (to atm. or shore) VOC Generation Ratio: 0.105 % of Loaded Cargo(mass) (Source: IMO GHG Study 2009, 3.46) Cargo Oil VOC+IG (to atm.) VOC Generation Ratio: 0.041% of Loaded Cargo(mass) (Source: IMO GHG Study 2009, 3.46) Heat 1 Heating Coil 2 MARPOL Annex VI, Reg.15 VRU(Shore) Cargo Oil 1 Onboard VOC Recovery Unit is required to reduce actual VOC from ships to comply with the purpose of requirement of Reg.15 of Annex VI to MARPOL 2

KR s Activities for Green Ship Technology VOC Recovery

KR s Activities for Green Ship Technology Waste Heat Recovery ORC Experiment Facility & Prototype Experiment facility with 30 ~ 50 kw will be built-up until 2012 to develop safety & functional requirements for ORC system Prototype ORC System (abt. 250 kw) will be developed until 2013 Basic & detail design of full sacle ORC system (abt. 1 MW) will be developed until 2015

KR s Activities for Green Ship Technology Application of Renewable Energy Technology Name E-Ship 1 Owner Enercon Builder Cassens Werft in Emden, GER Class /type Ice class E3 Tonnage 10,500 DWT Type Rigid Sail GT 50,000 Fuel Reduction 27%~50% Average annual fuel costs Optimal wind condition 10 ~ 30 % (Sky sails) up to 50 % (Sky sails) Delft University of Technology 32 ~ 50 % Length Propulsion Speed 130 m 3.5 MW diesel engines (2x) Flettner Rotors (4x) Propellers (2x) 17.5 knots (Max) Ship speed 15 knots Rotor Wing Kite Total cost (year 2008) [$] 91,000 85,000 1,596,000 Savings/year (oil price 200$/tonne) [$] 53,000 42,000 48,000 Return on investment [years] 1.7 2.0 33 Savings/year (oil price 300$/tonne) [$] 80,000 63,000 72,000 Return on investment [years] 1.1 1.3 22

KR s Activities for Green Ship Technology Fuel Cell Application as Power Source Fuel Cell Test Facility(PEMFC, SOFC) SOFC Unit Cell Test Results i-v-p Curve

Power KR s Activities for Green Ship Technology Fuel Cell Application as Power Source Fuel Cell System Performance test for Marine Conditions Load following Characteristic test Fuel Cell System Stability test Set Response Time Fuel Cell System FMEA Pressure Control test System Stabilization test

Summary 1. GHG is an issue that needs to be addressed on governments and industry wide. 2. OECD Council Working Party on Shipbuilding should closely follow the developments on green technology in the region of Asia where there is strength in shipowning and shipbuilding. 3. Technical measures to deal with climate change should be considered in conjunction with their impact on the shipping economy, as these would provide significant gains in areas such as energy saving and pollution reduction. 4. IMO is moving ahead with an approach that is intended to increase the efficiency of shipping through setting benchmarks for transport efficiency related to CO2 emissions. 5. KR is heavily involved in providing technical solutions to the needs of shipowners, shipyards and governments.

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