Energy Efficiency and the

Shipping Industry
March 17, 2010
Sebastian Sala

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Energy Consumption Outlook

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Energy Efficiency of Shipping

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Environmental Aspects and Public Pressure

In terms of CO2 per transported cargo

tonne shipping is generally recognized
as the most efficient form of commercial
transport

International
Aviation
1,9 %

International
Shipping
2,7 %

Domestic
shipping &
fishing
0,6 %

Other Sectors
11,6 %

Main Activity
Electricity and
Heat Production
35,0 %

Transport
21,7 %

However, due to the enormous scale of

the industry, shipping contribution to
worlds overall CO2 emissions is about
3% (~0,9 billion tonnes in 2010, twice as
much as airlines)

Other Energy
Industries
4,6 %

Manufacturing
Industries and
Construction
18,2 %

Unallocated
Autoproducers
3,7 %

450
This study

Studies show that shipping emissions

will increase by 75% in the next 15 years
as trade grows
A lot of pressure is put on IMO to
increase energy efficiency and thus
reduce CO2 emissions from shipping

350

Fuel Consumption (Million tons)

400

IMO Expert Group (Freight-Trend), 2007

Endresen et al., JGR, 2007
Endresen et al (Freight-Trend)., JGR, 2007

300

EIA Total marine fuel sales

Point Estimates from the Studies

250

This study (Freight trend)

200
150
100
50
0
1950

1960

1970

1980

1990

2000

2010

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CO2 Emissions from Shipping

Tank

Bulk

General Cargo

Container

RoRo

Ropax

/Vehicle

Deep
Ocean
seagoing
ships

Cruise

Regional
ships
Coastwise
Other

50

100

CO

150

200

250

emissions (million tons / yr)

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Industry Opinion on Improvement Potential

International Chamber of Shipping:
The consensus of opinion within the global industry is that
it may be possible for shipping to reduce CO2 emitted per tonne
of cargo transported one kilometer (tonne/km) by perhaps 15%20% between 2007 and 2020, through a combination of
technological and operational developments, as well as the
introduction of new and bigger ships, designed to the new IMO
Energy Efficiency Design Index.

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Basis of IMO Work

Governments at IMO have agreed key principles for the development of
regulations on CO2 from ships so that they will:
1. Effectively reduce CO2 emissions
2. Be binding and include all flag states
3. Be cost effective
4. Not distort competition
5. Be based on sustainable development without restricting trade and growth
6. Be goal-based and not prescribe particular methods
7. Stimulate technical research and development in the entire maritime sector
8. Take into account new technology
9. Be practical, transparent, free of fraud and easy to administer

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The IMO Package

Technical, operational and economical means to reduce CO2
IMO Marine Environment Protection
Committee (MEPC) has developed a
package of measures for reducing
shippings CO2 emissions with agreed
timetable for adoption:

1) Energy Efficiency Design Index (EEDI) for new ships

2) Energy Efficiency Operational Indicator (EEOI) for all ships
3) Ship Energy Efficiency Management Plan (SEEMP) for all ships
+ Market Based Instruments (MBIs) for all ships

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1) Energy Efficiency Design Index

(EEDI)

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The Basic Concept of EEDI

EEDI =

Emissions
Benefit for the society
Power Specific Consumption Carbon Conversion

EEDI =

EEDI =

Capacity Speed

[kW] [gfuel/kWh] [gCO2/gfuel]

[t] [nm/h]

[gCO2]
[t] [nm]

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Summary of EEDI Variables

ME CO2 emissions
[gCO2/h]

AE CO2 emissions
[gCO2/h]

Ship specific
correction factor

Shaft generators
and electric power
generation from
waste heat
[gCO2/h]

Main engine emission

reduction due to
energy efficient
technology
[gCO2/h]

Capacity x speed x factors

[t*kn]

Unit of the index is:

[gCO2/h]
[t * nm/h ]

[gCO2]
[tnm]
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Definition of Baselines
IMO GHG WG 2/2/7
SHIP CATEGORIES:
Container Ships (built 1998-2007)

bad ship

4:
3:
1:
5:
STEP 2:

Passenger ships

Dry cargo carriers

New
Outliers
regression
which
are
linemore
is calculated.
than
two
The regression
Average
line
then
Index
expresses
Values
Calculation
of exponential

Gas tankers
standard
deviations
from
the
the baseline
value,
which
can be
regression
line
for the
average

Tankers
Data sample
LRFP
1/1998
12/2007
regression
line
are
removed
calculated
by
using
the following
index
values

Containerships
formula:

RoRo; vehicle carriers

RoRo; volume carriers

RoRo; weight carriers

General cargo ships

RoPax ships

good ship

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EEDI Limitations

Energy efficiency index is a one point check

Only 75% of ME MCR and respective speed taken into account
Port operation not included
Ships design point may be something else
Different vessel types have very different operation profiles
Speed is taken into account linearly
Fast ships will never obtain a good index
Purpose-built <20,000 DWT vessels have huge differences in index value
Electric power calculated in one point
Diesel electric vessels difficult to include in the formula
System adaptability will not give any benefits in index
Oil fired boilers are not taken into account
In several ships oil fired boiler consumption may amount to 10% or more

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EEDI Conclusions

EEDI is measure of transportation CO2 efficiency. Ships carrying maximal

amount of cargo with minimal emissions get good index value.
Short analyze on EEDI factors shows that design speed will have most
significant impact on the result.
EEDI in its current form will mean limitation of installed power for ships. It
needs to be carefully considered which ship types are such that limitation of
power will make sense.
EEDI will be subject to modifications before final approval, but the basic
philosophy is likely to remain. Passenger vessels, diesel electric ships and
special vessel will need additional EEDI parameters.
Energy efficiency will obviously become a standard design element in
conceptual design
Designing a vessel for target EEDI only will not be justified if EEDI will remain
as one point check. More comprehensive energy balance type of approach
is needed to ensure efficient operation through the actual operation profile of
the vessel.
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EEDI means practically power limit for new ships

EEDI
For most bulkers and tankers it may be
OK to reduce engine power and slow
down
POWER LIMIT
FOR NEW SHIPS

...but how about...

Scheduled RoRo/RoPax traffic?
Vessels with special design criteria?
Small ships?
Special ships?
Short sea shipping in general?

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2) Energy Efficiency Operational Indicator

(EEOI)

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Energy Efficiency Operational Indicator (EEOI)

OBJECTIVE:
Measure energy-efficiency of each voyage
Evaluation of operational performance by
owners, operators or charterers
Continued monitoring of individual ships
Evaluation of any changes made to the
ship or its operation
COVERAGE:
Can be applied to almost all ships (new
and existing ships)
Can also be applied to passenger ships
Cannot be applied to ships not engaged in
transport work

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EEOI Formula

EEOI

Fuel x CO2 Conversion factor

=

Cargo quantity x Distance

Index is calculated by the actual values at voyage:

Fuel consumption (tonnes CO2)
Voyage distance (nautical miles)
Cargo quantity (tonnes, TEU, persons, )

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EEOI Data Collection

EEOI has been implemented on a

trial basis since 2005

Voluntary use by owners and

operators

Until MEPC60 the purpose is to

collect information on the outcome
and experiences in application of
the EEOI

44.46

---

475.2

967

145

315

108.78

---

0.8

1051.2

1861

341

174

CO2 INDEX VOYAGE WISE

35
30

GHG module has been established

for GSIS (IMOs central database)
for data collection and further
research work (accessible to
member states and industry)

CO2 INDEX

HFO
LNG
MDO Cargo Distance
CO2
Voyage
tonnes (tonnes) (tonnes) unit (n.miles) emission index

25
20
15
10
5
0
59/70 59/71 59/72 59/73 59/74 59/75 59/76 59/77 59/78 59/79 59/80 59/81
VOYAGE NO

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Conclusions on EEOI

Application of the indicator has not been very active in the industry

There are currently not enough incentives for ship owners to go for EEOI
instead of their own key performance indicator systems

Owners are careful with their operational data since they are afraid that it may
be used against them later on

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3) Ship Energy Efficiency Management Plan

(SEEMP)

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Ship Energy Efficiency Management Plan (SEEMP)

OBJECTIVE:
Documentation of (ship specific) best
practices for energy efficient operation
Preferably linked to broader company
energy management policy

COVERAGE:
All existing and new ships

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SEEMP The Basic Approach

What is included in the SEEMP:
Voyage planning (weather routing, just in time, speed optimization,...)
Optimized ship handling (trim, ballasting, use of rudder, cpp etc...)
Hull maintenance
Use of engines and waste heat recovery
Energy management and reporting
Implementation timeline
Currently on trial basis and use of the plan is voluntary

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Conclusions on SEEMP

Voluntary IMO measures are not fast track of wider implementation and it
applies also for SEEMP

However, SEEMP or energy efficiency operation manual is definitely a

document that ship owners will ask to be prepared for ships in the future

Possible implementation of new standards will require such document to be

onboard each ship:
European standard EN16001: Energy Management Systems
International standard ISO50001: Energy Management Systems

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Future Prices of Marine Fuels

Fuel price history; IFO380 and MDO
1400

1200

1000
Ar.gulf HFO

Ar.gulf MDO

800

$/tonne

NW Europe HFO
NW Europe MDO
US gulf HFO
US gulf MDO

600

SE Asia HFO
SE Asia MDO

400

200

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

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What does this means for Deltamarin?

Constantly rising fuel costs and the upcoming rules and regulations on
energy efficiency together with global trend on focusing on energy
efficiency means that energy efficiency is an essential design criteria
for all newbuildings

Based on discussions with our clients, the existing as well as the potential
ones, it can be stated that energy efficiency has been one of the most
essential issues that has been discussed for all newbuilding
projects.

Approaching energy efficiency in newbuilding projects is a critical

success factor for Deltamarin now as well as in the coming years

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Tools for Energy Efficiency

Energy Balance
Ships operating profile
Speeds
Engine loads
Engine technical data
Electrical balance
Machinery
HVAC and lighting
Heat balance
Waste heat utilization
Fuel consumption
Air emission calculations

Environmental Balance
Ships passenger or load profile
Water balance
Fresh and technical water
consumption and production
Waste waters
Solid waste balance
All garbage types

Waste emission calculations

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Deltamarin EEE-process
Newbuildings

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Deltamarin Approach on Energy and

Environment on Ship NB projects
PROJECT PHASE

Definition of
requirements
and
KPIs

PRE-CONTRACT

DESIGN AND
ENGINEERING PHASE

Study the most

sensitive areas
of energy and
environmental
efficiency

COMMISSIONING AND
DELIVERY PHASE

Optimization of
systems and
development of
onboard tools

Verification
Crew training

Systematic and holistic approach for energy- and environmental efficiency

Clearly defined targets, requirements and key performance indicators
Energy balance and environmental footprint calculation will follow through the process
Optimization of systems focused on key consumers / producers
Teaming up with owner, yard and suppliers
Verification of the results through onboard systems
Training and instructing of the crew and key personnel

EEE-process
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Energy and Environmentally Efficient Ships

What Needs to be Taken into Account in the Design Process?

EEE-thinking is a process which has multiple steps within the newbuilding

project starting from definition of key performance indicators and ending with
commissioning of onboard performance management system and training of
onboard crew.

Improving the Energy and

Environmental Efficiency during the
different design stages is an ongoing
process, where design criteria are
specified from actual operational
conditions.

The EEE-process is also consistent in a

way that its development is based on
work carried out earlier in the design
process.

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Deltamarin EEE-process
Existing Ships

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Systematic Approach for Existing Ships

Step 0
Understand where you are

Step 2

Step 3
Improvement of systems
and ship hull
Modifications requiring
docking

FUEL CONSUMPTION

Improvement of
systems
Minor conversions
during normal
operation
Focus on items with
<2 years pay back

FUEL CONSUMPTION

FUEL CONSUMPTION

Analyze existing operations Step 1

Set targets and make a plan Concentrate on simple
Start follow-up
improvements
Daily operation and
maintenance
Focus on zero or low
cost items

FUEL CONSUMPTION

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Step 0 Process Initiation

Understand possibilities and

benefits of energy management

Understand where your company is

now and realize potentials

Define Key Performance Indicators

Establish required organization and

framework for fleet energy
management

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Step 0 Ship Assessment

Carry out a comprehensive ship

assessment with onboard
measurements regarding energy
efficiency in order get an
understanding of the weak areas
and possibilities for improvements.

Both ship systems and operational

issues should be evaluated and
included in the energy balance.

The final report combined with the

energy balance and payback time
calculations are useful tools for
preparing a roadmap for future
improvements.
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Step 0 Planning

Follow-up procedures and reporting

systems need to be defined.

Set clear landmarks and goals for

the fuel saving project.

Based on the ship assessment, a

roadmap for 3-5 years should be
developed for improving the
operation and systems.

When preparing the roadmap,

savings from each improvement,
after paying for itself, can be
addressed to the budget of the
following year and thus paying for
the future improvements.
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Introduction of the 3-Step Approach

Energy Efficiency
high

3rd step improvements

(major installations, possibly
requiring drydock period)
required
installation
costs and
work hours

mid

2nd step improvements

(some installations)

1st step
improvements

low
short

medium

long

payback time
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Summary from RoPax Ship Survey

Step 3
Step 2
Step 1

*) fuel price 400/t

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THANK
YOU!

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