Ship Energy Management: Drivers and complexities. Dr Zabi Bazari CEng, CEnv Ship Energy Services Lloyd s Register, London, UK

Transcription

1 Ship Energy Management: Drivers and complexities Dr Zabi Bazari CEng, CEnv Ship Energy Services Lloyd s Register, London, UK

2 Content Main methods of ship energy use? Main drivers? Complexities? 4 The way forward? 5 Concluding remarks

3 How to reduce ship energy use / CO2 emissions? Energy-efficient ship design. Larger ships and economy of scale Low carbon fuel (e.g. LNG) Slow steaming Technology retrofit Operation optimisation Technical optimisation

4 2 Main drivers?

5 Drivers: Fuel costs High and increasing fuel prices Sulphur regulations and increased use of expensive: Low sulphur fuel Distillates Increased use of environmental technologies: SOx scrubbers Ballast water treatment NOx reduction devices Fuel oil sulphur % Inside ECA-SOx Outside ECA-SOx * Year * * 2020 date may be deferred to 2025 depending on outcome of a review of fuel availability to be completed 2018

6 Drivers: IMO GHG (energy efficiency) regulations EEDI Shipyard IMO Initiatives On GHG control SEEMP EEOI Ship owner / operator EEDI and SEEMP will become mandatory EEOI will remain voluntary

7 Drivers: IMO GHG s Market Based Measures (MBMs) Trading Port or flag states collect and control the CO2 charges Others e.g. STEEM (Ship Traffic, Energy and Environmental Model) ETS (Emissions Trading System) Marine MBMs Emissions Caps Fuel Levy GHG Fund SECT (Ship Efficiency Trading System) IMO is at early stages of discussion on MBMs VES (Vessel Efficiency System) Based on Ship Energy Efficiency Rewards efficient ships LIS (Leveraged Incentive Scheme)

8 3 Complexities

9 Complexities: Stakeholders and responsibilities Concept of Shipping Flag State Concept of Industry Refiner y Port State Technica l manager Bank as ship owner Yard as ship owner Regulator Charter Owner Charter as agent Operator as owner or charter Crewing Companies Large number of stakeholders influence ship operation

10 Complexities: Stakeholders (IMO Guidelines on SEEMP) Ports Ship Operator Ship Energy Management Stakeholders Cargo Owner Ship Owner Ship Charterer More coordination between stakeholders is required for energy efficiency

11 Complexities: Economics of ship operation Who pays for the fuel? Charterers Ship owners Cargo owner Etc. Who benefits from energy efficiency? Who pays for energy efficient technologies / operation processes? The financial aspects of ship energy saving in terms of cost-benefit sharing is complex

12 Complexities: Measurement, monitoring, finacial and legal frameworks Fuel consumption measurement. Performance assessment & verification. Large number of energy-saving products with significant saving-level claims. Lack of financial-legal frameworks to reward energy efficient operation.

13 4 The way forward?

14 Way forward: Regulatory regime An EEDI regulatory framework that is truly representative of ship s technical energy efficiency. Regulations on operational fuel consumption measurement, CO2 inventory and their verification. Making industry pay for CO2 emissions (MBM).

15 Way forward: Financial and legal framework Upgrading of charter party contracts to enable / incentivise energy efficient operations. Development of risk-sharing contracts between technology supplier and owners for claims made for various technologies. Development of benefits-sharing practices on fuel savings; between owners/managers and charterers.

16 Conclusions There are a number of major drivers for ship energy efficiency. There are a number of major complexities within the industry that impedes the move towards more energy efficient operation. Solutions to these complexities will pave the way for a more energy efficient shipping industry. The way forward should include: A more robust regulatory framework. A charter-party framework that rewards energy-efficient operations. A financial framework that give a shared cost/benefit to stakeholders for uptake of new technologies or new operation processes.

17 Thank You For more information, please contact: Dr. Zabi Bazari Ship Energy Services Manager Environment - SMT Lloyd s Register 71 Fenchurch Street London, EC3M 4BS T +44 (0) E zabi.bazari@lr.org w Services are provided by members of the Lloyd's Register Group. For further information visit