Contents The point of view from Japanese Shipowner September 29, 2009 Tamio Kawashima Principal Technical Officer NYK Line 1. International Shipping 2. Future Ship Design 3. Future Ship Operation 4. Future Infrastructure 1 2 1. International Shipping (1) the most efficient mode The international shipping industry is responsible for the carriage of 90% of world trade and is the lifeblood of the global economy. Shipping is the most energy efficient mode of transport. Typical ranges of ship CO2 efficiencies compared to rail and road Crude oil LNG Bulk carrier Container RoRo/Vehicle Rail Road However 0 50 100 150 200 250 300 g CO2 / ton*km Source : IMO MEPC58/INF. 6 IMO GHG Study 3 1. International Shipping (2) impact on global warming CO2 emission from the international shipping amounted to 847 million ton or 2.7% of global CO2 emission in 2007. According to the growth of world trade, the international shipping will have greater impact on global warming. Global CO2 emission Others 73.0% Road 21.3% International shipping 2.7% Domestic shipping 0.6% International aviation 1.9% Rail 0.5% Source : IMO MEPC58/INF.6 IMO GHG Study 4
1. International Shipping (3) Non-Annex 1 countries Presence of Non-Annex 1 countries One of characteristics of the international shipping is great presence of Non-Annex 1 countries now, and increasing. 1. International Shipping (4) Transport Demand in 2050 OPRF* undertook a major study where transport demand in ton-miles by ship types is projected towards 2050 on the IPCC A1B scenario**. Container movement in 2050 was estimated 7 times as much as in 2005. Ton-mile index of container movement on A1B 2050 scenario (2005=1) 5 To N America E Asia Europe S America M East India Africa Oceania Total From N America 0.85 2.54 1.03 4.01 5.01 4.32 6.03 0.92 2.58 E Asia 3.57 10.70 4.35 16.92 21.14 18.22 25.44 3.86 7.98 Europe 0.88 2.64 1.07 4.17 5.21 4.49 6.27 0.95 2.96 S America 4.61 13.80 5.61 21.82 27.26 23.51 32.82 4.98 10.24 M East 4.63 13.87 5.64 21.94 27.40 23.62 32.98 5.01 14.28 India 5.21 15.59 6.34 24.66 30.81 26.56 37.08 5.63 13.72 Africa 7.23 21.65 8.81 34.24 42.78 36.88 51.49 7.82 22.24 Oceania 1.09 3.26 1.33 5.16 6.45 5.56 7.76 1.18 2.64 Total 3.27 7.69 4.17 11.21 15.65 14.45 19.79 2.69 7.18 Source : OPRF* = Ocean Policy Research Foundation, Japan (2008) ** IPCC : Intergovernmental Panel of Climate Change A1B scenario : High growth scenario, balance of fossil/non-fossil energy 6 1. International Shipping (5) Emission Curves Contents CO2 emission from the international shipping in 2050 is estimated 4,817 million ton on A1B scenario, and 2,957 mill ton on B2 scenario*, if no improvement of ships efficiency. It is of great importance for the international shipping to challenge the reduction of CO2 emission. CO2 (million ton) 5000 4000 3000 2000 Emission curves (if no efficiency improvement of ships) A1B with no efficiency improvement of ships 4,817 million ton 1000 847 Mt 0 2007 2050 CO2 (million ton) 5000 B2 4000 with no efficiency improvement 3000 of ships 2000 2,957 million ton 1000 847 Mt 0 2007 2050 1. International Shipping 2. Future Ship Design 3. Future Ship Operation 4. Future Infrastructure Sources : IMO MEPC59/4/35 submitted by Japan * B2 scenario : Regional integration scenario 7 8
2. Future Ship Design (1) Utilization of Land Electricity 2. Future Ship Design (1) Utilization of Land Electricity In order to reduce the exhaust gas emission at port, land electric power is used with connecting a cable to ship power system. It is called as AMP (Alternative Marine Power) system or Cold Ironing. Now, more than ten container vessels of NYK are equipped with this system. Mobile Container Type Wiring Diagram Fixed Type Supply Power from Land Side No Engine Operation Reduce CO2 Emission 9 10 2. Future Ship Design (2) Solar Power 6200 units PCTC MV Auriga Leader, delivered in December 2008, is equipped with 328 solar panels that generate 40kW. The solar power system connects to ship propulsion system. The system supplies up to 6.5% of the electricity used on board, and CO2 emission from the vessel is expected to be reduced by 0.3%. Now testing the durability under stress from salt water and wind pressure for future full-scale implementation. MV Auriga Leader 2. Future Ship Design (3) Air Lubrication Air causes less friction than water by reducing the contact surface between the water and the ship s hull. Air lubrication system will be installed on new ships of NYK-Hinode Line, shallow draft with wide flat bottom, delivered in 2010 at Mitsubishi Heavy Industries, Japan. Actual power saving, after deduction of the power consumption needed to utilize the system, will be about 10%. Solar panels in future 11 12
2. Future Ship Design (4) Clean Energy 2. Future Ship Design (4) Clean Energy Ship is surrounded by many natural clean energies. Solar power, Wind power, Wave power, Biomass power These Clean energies will be utilized for ship power source. Fuel Cell and New Type Battery will be installed on ships. 2009 Main Engine Ventilation Ship service Thruster 2010 Hybrid (1) Motor Engine Battery Solar 1 st STEP - Year 2010 * Solar power panel Electricity (500KW) Stored in Battery used for ship power system 2 nd STEP - Year 2020 * added Wind/Wave power generation Electricity (+500KW) * / Fuel Cell Hybrid propulsion 3 rd STEP - Year 2050 * Solar/Wind /Wave power generation Electricity (5,000KW) * Fuel Cell / Battery hybrid electric propulsion Car 2050 Hybrid Plug-in Fuel-cell H 2 Zero Emission Fuel Cell Motor Fuel Cell Motor Fuel Cell Battery Solar Solar Wind From Shore 2020 Bio Fuels Hybrid (2) Motor Engine Fuel Cell Battery Methanol or LNG Solar 13 14 NYK Super Eco Ship 2030 was defined to be the benchmark for evaluating the technical advantages to be implemented towards 2030. The project was carried out by NYK Line / MTI, Japan Elomatic Marine, Finland Garroni Design, Italy Purpose of the project is to propose the shipping industries what is needed to develop technologically in the long term including alternative energy. Reduce the Lightweight 20% of displacement can be reduced by using aluminum alloys, composites and sandwich structures, no ballast as a result of optimizing main dimensions and stability The total power required can be reduced by 9 12%. 15 16
Reduce Skin Friction Recent research shows that the bio-fouling causes up to a 15% increase in ship resistance. It is effective to find the solutions to prevent the fouling with surfaces that use nanotechnology, shark s skin, etc. Nanotechnology Shark s Skin Solar Power The container cover area and sails which can be used as solar cells base is 31,000m2. The solar cells are of thin film cells. Dairy average output will be 1-2 MW on the basis of 30% conversion factor in 2030. 17 18 Sails The vessel is equipped with 8 foil sails. Each sail is about 500 m2. The sails can be taken down by means of a telescopic system. The power saving by sail propulsion can be 1-3 MW. Sails location Sails stored Fuel Cell One of the most promising concepts is the use of fuel cells for main power generation. Total required power of fuel cells is around 40 MW for NYK Super Eco Ship 2030 with capacity of 8,000 TEU whereas today s ship needs 64 MW. Fuel cells of NYK Super Eco Ship 2030 is LNG based. When the technology of hydrogen fuel cells become applicable to ships, expected around 2050, CO2 emission from ships can be zero. 19 20
Roadmap of Fuel Cell Technology Total power required Renewable energy (2~5MW in 2030) Power Generation Plant 100% CO2 Emission 31% 0% Fuel Oil Methanol LNG H2 2010 2020 2030 2040 2050 Engine Fuel Cell 21 64MW 40MW Total power required Wind Sail Motor Motor Power Management System Waste Heat Recovery Battery FuelCell FuelCell FuelCell Solar Panel LNG Tank 22 Comparison <8,000TEU Class/25 knots> Today s Ship NYK SES 2030 Length 338m 353m Width 45.8m 54.6m Design Draft 13.0m 11.5m Required Power Engine (HFO) Fuel Cell (LNG) 64MW 40MW Renewable Energy None Solar : 1-2MW None Wind : 1-3MW CO2 Emission 195g/TEU-mile 62g/TEU-mile (100) (31) 23 Summary of Emission Savings Solar power 2 % Propulsion efficiency 5 % Superconductivity 2 % Wind power 4 % Weight savings 9 % Reduced power for ship use 2 % CO2 emission cuts of 69% Hull friction 10 % Wind resistance 1 % Hull form optimization 2 % Fuel cells 32 % 24
2. Future Ship Design (6) ISHIN-I by MOL MOL Completes Concept for Series of New-Generation Vessels First Announcement is ISHIN-I Car Carrier on September 10, 2009 She will be realized within 5years. Contents 1. International Shipping 2. Future Ship Design 3. Future Ship Operation 4. Future Infrastructure Source : http://www.mol.co.jp/pr-e/2009/e-pr-2780.html 25 26 3. Future Ship Operation (1) Speed Optimization 10% speed reduction cuts 20% in fuel consumption and CO2 emission. The figure (below) shows actual trend of the efficiency improvement of NYK car carrier before/after the speed reduction has been implemented. Energy Efficiency of NYK Car Carrier 3. Future Ship Operation (2) Kuroshio Current Kuroshio Current is one of the world s two major ocean currents and is known for its high speeds. Navigation on Kuroshio Current based on the detailed forecast can cut maximum 9% in CO2 emission for NYK crude oil tankers. CO2 emission per ton-mile EEOI*=96.7 EEOI=87.3 EEOI : Energy Efficiency Operational Indicator. Amount (g) of CO2 emission when 1 ton of cargo is transported for 1 mile. China Japan Kuroshio Current Voyage Source : Forecast Ocean Plus 27 28
3. Future Ship Operation (3) Monitoring / Visualization Electric power consumption monitoring Electric consumption of major equipment, lighting system, A/C system etc. are measured and analyzed in view of grasping the actual load, peak and average load with working hours. Visualization of real power usage gives so many ideas to save energy. By using those data, following will be done. - Optimum power management considering min. CO2 generation - Inverter motor is adopted to large pumps, equipment considering actual working condition for saving the electric power. - LED lighting system is adopted for big lighting system such as PCTC hold lighting. - Others 3. Future Ship Operation (3) Monitoring / Visualization Fuel consumption monitoring Fuel consumption of ship is measured for analysis. Visualization of actual fuel consumption gives so many ideas to save energy. FUELNAVI (fuel economy indicator for vessel) <Screen image> Visualization of FOC index (mile/ton, ton/mile, CO2 ton/mile) for captain/crews Show real time data, trend and average data Analyze effect of current, wind, wave, drift, rudder action and etc. Improve awareness about vessel performance 29 30 3. Future Ship Operation (3) Monitoring / Visualization Fuel consumption monitoring Analyzing optimum trim onboard by using detail time trend. Select best auto pilot setting by comparing FOC index. Red line : OG speed Blue line : Rudder angle FOC index (Mile/Ton) was getting lower at a constant rpm with the autopilot. OG speed was getting a little slower because there was beam wind and counter rudder angle was about 3 degrees. Resistance by rudder was the cause of performance down. Combine with weather routing by actual sea margin analysis. Trend Image of Average Vessel Speed per Hour Automatically output summary data Red : Ground Speed Black: Speed through Water 3. Future Ship Operation (4) Fleet Control Visualization support not only Optimization of Ship Operation but also Fleet Control. Visualization Optimization of ship operation Fleet control Eco navigation by setting criteria FOC index (mile/ton or ton/mile). 31 32
3. Future Ship Operation (5) World-wide service Contents Satellite Social / Community New Services/Systems under New Concepts 1. International Shipping Whether Routing Service Tide Data Service LRIT AIS Speed-Limit. Control Center Port Reservation Efficiency Improvement 2. Future Ship Design 3. Future Ship Operation Operating Data Performance Monitoring Operation Center of Owner/Operator Government Port Authority Port Control System Berth 1 Berth 2 4. Future Infrastructure World-wide service for all ship Owners/Operators Auto surveillance network for Speed-Limitation No waiting in port with Port Reservation Service Each ship with sensors makes useful data 33 34 4. Future Infrastructure Contents Many kinds of new Infrastructures will be required in future, so it is important to consider 5W (who, what, when, where, why, how). Reconstruct ports, berths, channels and rules for mega-size vessels. Renew land electric power system in port for AMP (Alternative Marine Power) system. Construct Supply Chain of LNG/H2 including service stations in port for Fuel Cell ships CO2 Receiving facilities for ships CCS (Carbon Dioxide Capture and Storage) Global rules for Carbon Footprint How to calculate Carbon Footprint of seaborne trade. How to verify? Who will verify? 35 1. International Shipping 2. Future Ship Design 3. Future Ship Operation 4. Future Infrastructure 36
Potential Improvement of Efficiency Japan conducted detailed case studies on the estimation of the efficiency improvement of new ships including the utilization of new technologies. Delivery 2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 Bulker 25% 40% 45% 50% 50% Tanker 35% 40% 55% 55% 55% VLCC 40% 50% 60% 60% 60% Container 35% 45% 55% 65% 70% Source : IMO MEPC59/4/35 submitted by Japan NYK Super Eco Ship 2030 There remains many existing ships which are less efficient. The estimated CO2 emission from the international shipping is 100 80 60 40 20 0 Remaining Ratio (%) It takes time to replace existing vessels by new ships 1 4 7 1013161922252831 Age of Container 8,000TEU+ 37 Potential Emission Reduction Estimated CO2 emission curves based on different growth scenarios CO2 (million ton) 5000 4000 3000 2000 1000 0 5000 4000 3000 2000 1000 0 A1B Scenario 847 Mt 847 Mt Business as usual With reduction measures 2007 2050 B2 Scenario Business as usual With reduction measures 2007 2050 4,817 mill ton 2,453 Mt ( 49%) 2,363 mill ton 2,957 mill ton 1,471 Mt ( 50%) 1,486 mill ton Considerable emission reduction can be possible compared with business as usual. Source : IMO MEPC59/4/35 submitted by Japan 38 Capping proposed by EC Estimated CO2 emission curves and Capping proposed by EC CO2 (million ton) 5000 4000 3000 2000 1000 0 A1B Scenario 847 Mt Business as usual 1990 level With reduction measures 2007 2050 No matter what you achieved utmost improvement of ships efficiency, shipping companies still have to buy emission credits from other sectors. 4,817 mill ton 49% efficiency improvement 2,363 mill ton Buying emission credits 468 mill ton = Cap proposed by EC No money left to improve ship efficiency!!! 39 Contents 1. International Shipping 2. Future Ship Design 3. Future Ship Operation 4. Future Infrastructure 40
IMO MEPC (Marine Environment Protection Committee) agreed : 1. a package of technical and operational measures, i.e. a. formula of Energy Efficiency Design Index for new ships b. guidance of Ship Energy Efficiency Management Plan for voluntary use to monitor and improve performance. 2. a work plan for further consideration of market-based measures a. Various proposals Emission trading scheme, Bunker levy,... What kind of market-based measures are appropriate for the international shipping? 41 Market-based Measures Reduction of CO2 emission from the international shipping Reduction of activities Improvement of ships efficiency Improvement of ships efficiency should be a primary option Purchasing emission credits from other sectors Is it an appropriate solution? How to spend our revenues to reduce CO2 emission invest in building energy efficient ships? purchase credits from other sectors? 42 A simple simulation to compare purchasing emission credits and Improving ships efficiency. A shipping company will order a new vessel in 2015. Assume that the price of a saving-energy equipment will be twice of the price of emission credit in 2015. It is too hard for the company to install the equipment onboard. However, if the price of emission credit will increase year by year... The new vessel will be delivered in 2017. During several years, the company will be very satisfied because emission credit is cheap enough. However, after several years, the situation will be changed. The life of the vessel is 25 years or more. As the result, total life cycle cost of purchasing emission credits will become bigger than one of Improving ships efficiency. > 43 Even if Emission Credit is one of good market-based measures, it is not perfect from the view point of this result. 44
Closing Remarks Refund Scheme proposed by The Japanese Shipowners Association Collection: A vessel B vessel C vessel strong incentives Refund: Maritime GHG Fund Other use: R&D of new technology Mitigation & adaptation projects GHG contributions are collected from each vessel, based on the purchased volume of marine bunker, and transferred to the Maritime GHG Fund. Majority of the collected contributions are refunded to vessels that have improved energy efficiency. The refund creates strong incentives to encourage shipping companies to improve ships efficiency. A part of the contributions is allocated to finance R&D of new technology and mitigation and adaptation projects in developing countries. 45 The shipping is the most environment-friendly mode of transportation. Trend of CO2 emission from the international shipping is determined by the growth of global economy. Imposing emission capping is not appropriate approach. There is high potential of the efficiency improvement of the international shipping. Regulatory framework should be effectively established to provide strong incentives for the shipping industries to invest in the efficiency improvement of the international shipping. Invest in building energy efficient ships purchase credits from other sectors 46 Thank you for your attention 47