1 VIKING LINE S ENVIRONMENTAL STRATEGY & ENERGY EFFICIENCY Innovative and Environmentally Friendly Operation with Viking Line Ferries Maritime Stakeholder Event Brussels, Belgium June 1, 2011 Kari Pihlajaniemi Fleet Manager, Energy Efficiency and R&D
2 Contribution to world s overall CO 2 emissions Shipping compared to others = 3,3%
3 Industry estimation of improvement potentials 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 ton of cargo transported one kilometer (ton/km) by perhaps 15%-20% between 2007 and 2020, through a combination of technological and operational developments, as well as by the introduction of new and bigger and more effective ships, designed to the new IMO Energy Efficiency Design Index.
4 What does the certification mean (ISO 14001) Viking Line has carried out an extensive environmental study in 1996 The company identified the environmental aspects of its operation Environmental work focuses mainly on vessels operations, where the largest gains can be achieved when it comes to protecting our environment As an outcome, the documented Environmental Policy establishes the overall direction of environmental work and states the principles behind the Company's actions. It is adopted by the Group Management Environmental programmes includes overall and detailed environmental targets, adopted by Group managements as part of its review: The Company works proactively and systematically to minimize the environmental impact of its operations The Company makes demands on its suppliers (supplier assessments, purchasing manuals, information forms) Internal and external audits monitor Viking Line`s compliance with the requirements for environmental certification Since 1995, Viking Line has decided to operate the vessels with 0.5% sulphur HFO to reduce the overall emissions
5 Utsläpp i luften: Svaveloxider (SOx) International Maritime Organization (IMO): May 2005 => international maximum sulphur content 4.5% SECA areas (i.e. the Baltic Sea): May % July 2010 content 1% Sulphur content of vessel fuel => maximum sulphur => maximum sulphur European Union: January 2010 => in all EU ports, maximum sulphur content 0.1% for vessels staying in port for more than 2 hours (exemption for vessels using connections with shore side electricity sources) Viking Line has used low-sulphur fuel (maximum sulphur content 0.5%) since the 1990s! Since January 1, 2010, all Viking Line vessels that stay moored in a port for more than 2 hours are using MGO with a sulphur content not exceeding 0.1% throughout their port stay or are using shore power where connections available
6 UN maritime body IMO is preparing it s package IMO Marine Environment Protection Committee (MEPC) has developed a package of measures for reducing shipping s CO 2 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 Measures (MBM s) for all ships
7 Marine fuel price history Fuel price history; IFO380 and MDO $/tonne Ar.gulf HFO Ar.gulf MDO NW Europe HFO NW Europe MDO US gulf HFO US gulf MDO SE Asia HFO SE Asia MDO
8 Improving process of the efficiency of VL fleet existing vessels Key Stone Corners to evaluate the current status with the use of Scrubber Technology: 1. Verification and evaluation of the current available various type of technologies 2. Verification of each type of fleet vessel for scrubber installation 3. Verification and evaluation of the production chain with Scrubber waste and production streams 4. Continuous follow up for the ongoing developments
9 Improving process of the efficiency of VL fleet existing vessels Key Stone Corners to evaluate the current status with the use of Scrubber Technology: The list of main technical and financial challenges with the utilization of the Scrubber Technology: 1. Currently only few fully certified scrubber makers are available in Marine Industry 2. The operational experiences with Scrubber in Baltic and with breakish water is very limited 3. The final end of the cleaning water waste effluent is still pending Viking Line has a zero discharge policy 4. The final end of the disposed sludge is still pending 5. Ship stability and space demand plays a major role in terms of the actual ship design and scrubber installation 6. The final pricing and life cycle costs (LCC)remains to be pending until more operational experiences will be collected
10 LNG POWERED NEW BUILDING IN FINLAND AT TURKU STXSHIPYARD
12 Improving process of the efficiency improving with the VL New Building The list of main challenges with the LNG operation: 1. The design and implementation of the LNG infrastructure is still under development 2. LNG bunkering procedures and regulations are still under development by various authorities and classification societies 3. Effective port time for VL LNG powered cruise ferry is only 60 minutes, whereas the previous references are having hours with significantly lower fueling demand (m3/hour) 4. Experiences with LNG operation in Cruise Ferry are rather limited 5. Advanced type of LNG training program for crew, terminal and office personel is required and needs further evaluation and certification by authorities 6. LNG is the solution for new building but not for the existing fleet vessels!
13 Improving process of the efficiency of VL New Building THE LIST OF MAIN CHALLENGES WITH THE OPERATION WITH LNG BUNKERING: INITIAL CONDITION IS READY FOR BUNKERING Checking of gas line before connections Bunker with low flow Precooling Bunker with maximum capacity Slow down Completion of bunker Disconnection of hoses Time in harbour 60 minutes
14 VIKING LINE S ENVIRONMENTAL STRATEGY & ENERGY EFFICIENCY THE FUTURE!