Shipboard Operational Energy Efficiency: Strategy for Success
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1 Shipboard Operational Energy Efficiency: Strategy for Success Thomas Kirk Director, Environmental Programs Stamford, CT 18 March 2013 INTERTANKO North American Panel Meeting
2 Overview IMO regulations on energy efficiency and management Ship Energy Efficiency Management Plan (SEEMP) Energy Efficiency Different Perspectives Fuel-savings Roles and responsibilities Principles for Performance Monitoring From Performance Monitoring to Performance Management 2
3 IMO Regulations on Energy Efficiency Enter into force 1 January 2013 New ships: EEDI and SEEMP Existing ships: SEEMP SEEMP guidelines Resolution MEPC 213 (63) Implementation Developed SEEMP in accordance with guidelines Keep a copy on board Survey verify a copy is on board Definition of ship Art 2(4) A vessel of any type whatsoever operating in the marine environment and includes hydrofoil boats, air-cushioned vehicles, submersibles, floating craft and fixed or floating platforms Regulation 22 Ship Energy Efficiency Management Plan (SEEMP) 1 Each ship shall keep on board a ship specific Ship Energy Efficiency Management Plan (SEEMP). This may form part of the ship's Safety Management System (SMS). 2 The SEEMP shall be developed taking into account guidelines adopted by the Organization. Regulation 5 Surveys 4.1 An initial survey shall verify that the SEEMP required by regulation 22 is on board. 4.4 For existing ships, the verification of the requirement to have a SEEMP on board shall take place at the first intermediate or renewal survey whichever is the first. 3
4 IMO Guidelines for SEEMP 4
5 Sample SEEMP Form 5
6 Energy Efficiency: Different Perspectives Ship Operations Shipowner Ship Management Fuel efficient operation require that all parties work together 6
7 Ship Management (including Vessel Crew) Classic ship management: no interest in fuel-savings, lube oil more interesting Today ship management companies realize that fuel-savings are important going forward Ship management makes decisions on: Maintenance of equipment (main engine, auxillary, sensors, etc.) Drydockings hull treatment, antifouling, propeller Hull cleanings, propeller polish Newbuilding design Crew composition 7
8 Ship Management (including Vessel Crew) The ship crew makes decisions on: Optimize base load (minimize consumption, optimize production) Vessel shore communication Voyage efficiency (speed profile, route optimization) Maintenance and equipment optimization Performance monitoring and engine testing In many cases, charter party conditions are important Monitoring, optimization and benchmarking are key 8
9 Shipowner The value of a vessel will become closely correlated to how fuel efficient it is Owner must know efficiency of each vessel class Owner must know current performance of each individual vessel Owner negotiates charter party conditions with ship operator Closely work together with ship management Responsible for fleet composition, asset management: Newbuilds, owner must know fuel efficiency of yard prospects how to do that? Retrofit identify solutions with reasonable ROI track improvement Let go of less efficient tonnage or? Monitoring, optimization and benchmarking are key 9
10 Ship Operator Fuel efficiency is important Fleet composition should match cargo composition Optimize fleet composition Seek fuel efficient tonnage Optimize operations: Right ship for right cargo Utilization Speed and capacity optimization Harbor operations Structured process around expected performance/charter parties Monitor charter parties/expected performance feedback loop Monitoring, optimization and benchmarking are key 10
11 Primary Target Areas for Energy-savings Machinery Hull Resistance Propulsion Operations 11
12 Fuel-savings: Roles & Responsibilities Technical Management Drydocking, treatment and paint system Hull and propeller maintenance Support vessel crew to improve, including equipment, sensors, tools Vessel Crew Main engine SFOC Base load Auxiliary engine SFOC Energy management, including base load, PTI/PTO, WHR Voyage optimization Voyage communication/interaction with operations 12
13 Fuel-savings: Roles & Responsibilities Operations Voyage conditions, minimize harbor time, optimize loading condition Understanding consequences (costs) of changes in schedules and arrival times Right ship for right trade Schedule optimization Fleet composition Financial support to initiatives with attractive business cases 13
14 Parameters & Sensors: Hull, Propeller & ME Ship speed through water and GPS speed Ship draught and trim ME Fuel consumption ME Power ME RPM Wind speed and direction Wave spectrum, wind driven and swell Water depth Rudder angle Temperatures, water, air Salinity Ship speed log and GPS Reading of draughts fore and aft and update during voyage. Draught sensors?? (ballasting and consumption) ME Fuel flow meter ME torsion meter Environment Wind anemometer Motion sensors wave estimates Wave radars Hind cast data Human factor (observations) Rudder angle indicator 14
15 Parameters & Sensors: Internal Energy Management Auxiliary engine consumption Auxiliary engine production PTI and PTO WHR Other equipment Boilers Cargo heating Cargo pumps Auxiliary engine flow meters (often a challenge with accuracy) Electrical accounting Power from generators (kwh meters) Power from WHR Power from PTO Consumers PTI All major electrical consumers Rest is the black hole 15
16 Noon Reports vs. Auto-logging Noon reports have bad standing in some places Quality varies a lot, often poor Environmental parameters are not constant over 24-hour period Average and over longer time, uncertainties level out Careful data collection and on-board validation: 24 hours average values are useful Noon reports is part of existing procedures on most ships, less costly, perhaps even cost effective? Noon reports; expect longer response time to sudden changes, (provided the alternative is better) 16
17 Energy Efficient Vessel Operation 17
18 Energy Management: Key Performance Indicators KPIs are a strong tool, but not without pittfalls SMART principle Specific Measureable Attainable achievable Relevant realistic Timely Can change people s behaviour KPIs for dummies Three, max four KPIs In reality, difficult to keep; overall KPIs will quickly be constructed from sub-kpis Necessary with drill down capability to find root causes 18
19 Key Performance Indicators: Energy Efficiency Individual KPI Scorecard/Dashboard KPI score KPI score & weight KPI score & weight Define baseline Define target Define KPI function Define weight of KPI Add to scorecard KPI score & weight KPI score & weight KPI score & weight 19
20 Key Performance Indicators: Energy Efficiency Example Baseline Target KPI Score Function: Assign good score if target is met. Incentive to be better than target. Below baseline, lower KPI score. Principles for Target-setting: Relative or absolute? Baseline individual or sister ships? 20
21 Weighting of Key Performance Indicators Weights can be assigned usign different principles: Based on dollar impact value Using expert judgement where most impact can be obtained quickly Areas with special focus (safety?) Areas where stakeholders can influence most (largest potential) Based on strategic decisions 21
22 Key Performance Indicators: Examples of What to Measure Ship Management ME efficiency SFOC Hull and propeller efficiency Base load Voyage efficiency Measure for energy management Measure for cylinder oil consumption Measure for quality of reporting Ship Operations ETA communication Harbor efficiency Speed instructions Utilization EEOI Fleet composition 22
23 ISO & SEEMP Areas where ISO will force SEEMP to be above minimum Documentation and documentation retention for audit purpose Energy Efficiency audits on board EEOI or equivalent becomes mandatory Goals, targets becomes requirements Each consumer and each measure (as identified in the ISO scopes and boundaries) shall be measured Records of review and corrective action to measures to be recorded These aspects may should be considered when developing the SEEMP if the company has its eyes on ISO in the future ISO and SEEMP fit together 23
24 Energy Management Certification Beyond SEEMP, ISO demonstrates organization s commitment to: Continuous improvement in energy performance of trading vessels Resources to achieve objectives and targets Comply with legal and in-house requirements Framework for setting and reviewing energy objectives and targets Purchase of energy-efficient products and services Documenting and communicating within organizations Policy regularly review and update 24
25 ABS EnMS Model The ABS Marine HSQE(En) Guide Upgraded to include new energy requirements A model integrated management system for Marine and Offshore application incorporating Safety, Health, Quality, Environment and Energy requirements Single integrated audits Class notation 25
26 Closing Remarks The solution does not come for free Owners, operators and ship managers should plan for a long term strategy Logical step to include the ship specific SEEMP and perhaps the company specific ISO as an integrated part of the process Energy efficiency Systems and monitoring is required; but Fuel efficiency comes mainly from actions of human beings 26
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