Methodology for Calculation and Declaration of Energy Consumptions and GHG Emissions in Ports and Terminals Case of Container Terminals Indah Lengkong & Jens Froese ITEE 2013 Lüneburg 12.07.2013
Agenda 1. Research background 2. Existing measurement and reporting standards 3. Criteria for developing carbon footprint calculation method 4. Proposed methodology for container terminal carbon footprint calculation 5. Carbon footprint allocation on cargo unit level 6. Conclusion and next steps 2
Research Background Key deficiencies in port and terminal research: Identification and implementation of strategic measurements for improving energy efficiency are still not covering all process domains Lack of a standardised method to measure and allocate energy consumption and GHG emissions Lack of energy efficiency key performance indicators to allow for benchmarking and control 3
Research Background (cont.) Who needs carbon footprint values from a container terminal?? CO 2e 4PL Clients Society Port Shipping Line Container Terminal Container terminal carbon footprint measurement & reporting: Product-related > Clients and shipping line Operation-related > Ports and society Company -related + activity-based > Terminals 4
Research Background (cont.) Research objective To develop an applicable carbon footprint measurement framework for sea terminals, serving three principals: a transparent and standardized CO2-equivalent calculation method; a consistent reporting scheme; and an effective management system. 5
Existing Measurement and Reporting Standards 1. GHG Protocol (adopted by ISO 14064-1): what and where to be measured define boundaries (emissions scope 1 3) select measurement approach collect activity data and emissions factors calculate GHG emissions (CO2e) declaration and reporting 2. CEN 16258: how to measure and allocate identify different transport leg calculate energy consumption and emissions of each transport leg calculation at the vehicle operations system (VOS) level allocate to different shipment define allocation parameter (e.g. tonne, volume, pallete, TEU ; by distance km) sum-up results of all legs of the transport service 6
Existing Measurement and Reporting Standards (cont.) GHG Protocol CEN 16258 Target users All type of companies Transport services Boundaries Direct emissions (scope 1) Indirect emissions (scope 2 & 3), including office building, maintenance workshop, lighting, cold store, handling equipment, business trips, staff commuting and third party services Direct emissions from transport mode/vehicles Indirect emissions, including production and transportation of fuels for transport mode/vehicles GHG emissions sources Scope 1, 2, 3 Well-to-tank/WTT (energy processes) Tank-to-wheel (vehicle processes) Measurement methodology Direct measurement, published emission factors, default fuel use data Specific measured values, Transport operator vehicle-type or routetype specific values, Transport operator fleet values, Default values 7 Activity data Scope 1: fuel consumption Fuel consumption Scope 2: purchased energy and supplier Actual distance specific, local grid or other published Weight of shipment emissions factor Energy and emissions conversion factor Scope 3: reported energy use or published third party emissions Source: GHG Protocol, ISO 14064-1 and CEN 16258
Existing Measurement and Reporting Standards (cont.) 3. ISO 50001: energy management framework measure energy consumption identify areas of improvement establish an energy baseline determine appropriate energy performance indicators and targets develop and implement an energy action plan 8
Criteria for carbon footprint calculation method Terms of reference to capture a terminal s carbon footprint: Comprehensive i.e. covering all business activities required to provide the transshipment service (also those not directly related to cargo handling operations) Transparent, consistent and standardized method to allow for benchmarking One comprehensive database satisfying all reporting requirements Manageable also for SMEs Generalized and based on average rather than individual values (same type of cargo unit must result in an identical carbon footprint) Carbon footprint of a cargo unit must be known before the transport contract to serve as a contract criterium 9
Carbon footprint calculation methodology 1. Calculation of total emissions of scopes 1 and 2 According to energy consumption for the last full year (from energy bills paid) report directly based on GHG protocol requirement for e.g. terminal annual report, seaport and surrounding community 2. Split into process clusters According to terminal process domains (including business activities not directly related to cargo operations) this facilitates efficient energy management for terminal 3. Allocated to shipments According to classified reference-units this provides the carbon footprint for the clients shipment (for carbon footprinting on product level) Note: Carbon Footprint on product level, i.e. individual shipment, not contained commodities 10
Carbon footprint calculation methodology Example of Container Terminal Step 1: Calculation of total energy consumption and emissions of scopes 1 and 2 Below figures shows an example of energy consumption and emissions of a reference container terminal* handling 1,6 million TEU, estimated to consume about 12 million kwh electric energy and 3,1 million liter of diesel per year. Example of emissions consumers scope 1: Emissions from diesel engine of owned-handling equipment Example of emissions consumers scope 2: Emissions from purchased electricity 11 Source: Froese &Toeter (2013) * Reference container terminal was developed within the GREEN EFFORTS project
Carbon footprint calculation methodology (cont.) Example of Container Terminal Step 2: Split into process clusters - for terminal s efficient energy management Main energy consumers: e.g. quay crane - Container handling equipment - Reefer containers Source: Froese, J, et.al,. (2012) 12
Carbon footprint calculation methodology (cont.) Example of Container Terminal Step 3: Allocation of carbon footprint for clients more disaggregated level, e.g. cargo unit activity-based costing (ABC) approach (Lin, et.al, 2001): calculating the costs of individual activities and assigning those costs to cost objects such as products an services on the basis of the activities undertaken to produce each product or services (Horngren et.al., 2000, quoted in Lin, et.al., 2011). 13
Carbon footprint calculation methodology (cont.) Example of Container Terminal a) Classify reference-units: For example: empty containers 20 containers laden 40 /45 containers laden 20 reefer containers deep frozen chilled 40 reefer containers deep frozen chilled Out of gauge cargo (project cargo high & heavy ) Identify cause and effect relationships between the activity and the consumption and emissions. carbon driver A factor that causes CF e.g. cargo units 14
Carbon footprint calculation methodology (cont.) Example of Container Terminal b) Identify handling operation and equipment configuration For example: Ship to ship Ship to stack Stack to ship Stack to truck Stack to railway Stack to depot (empty containers) Source: Froese, J, et.al,. (2012) 15
Carbon footprint calculation methodology (cont.) Example of Container Terminal c) Weighting reference-units and operations (attributed factors) to generate reference types of cargo units Reference Units empty containers 20 containers laden 40 /45 containers laden 20 reefer containers - deep frozen 20 reefer containers - chilled 40 reefer containers - deep frozen 40 reefer containers - chilled out of gauge Weighted factors Extra consumption* Extra handling needed - Additional weight Electricity; plug on, duration of stay Electricity; plug on, fluctuating according to required temperature duration of stay Electricity; plug on ; duration of stay Electricity; plug on fluctuating according to required temperature ; duration of stay Extra handling needed, weight 16 * Addtional to consumption of main handling equipment used
Carbon footprint calculation methodology (cont.) Example of Container Terminal d) Case counting (full year) Step 1: Identification of different reference units and operations Step 2: Calculation of energy consumption and CO2e emissions of each process (a reference unit and its operation process) number of movements of each equipment of this process equipment operating hours multiply equipment consumption with each weighted factor average energy consumption and CO2e emissions of each process e) Allocating total carbon footprint of one year to cases resulting in an average carbon footprint per reference type of cargo units 17
Carbon footprint calculation methodology (cont.) Example of Container Terminal Notes: Actual applied carbon footprint is then based on a predetermined formula according to the results from the previous year (general cost accounting principle). In case of significant changes in consumption or provision of energy or of operations, the formula must become adjusted accordingly. 18
Conclusion Standard measurements for carbon footprint at a container terminal shall be done according to GHG Protocol ( ISO 14064-1) for scope 1 and 2, which later might become extended to scope 3 (estimations and lump sum considerations) which reporting is currently is still optional. Following approaches to be recommended: GHG Protocol to identify where and what to be measured (scope 1 to 3) CEN 16258 as a methodology how to measure the energy consumption and the GHG emissions and proportionally allocate emissions to each transported unit. ISO 50001 as a management framework Application of the CEN 16258 standard is currently restricted only to the transport service, which is not sufficient to provide a broader view of emissions on company level. Therefore, the combination with GHG Protocol Corporate Standard is recommended. 19
Next steps Validation of the methodology for carbon footprint calculation for sea-terminals Further investigation to determine appropriate energy performance indicators and targets for sea-terminals for benchmarking Integration of scope 3 emissions (often share the biggest source of emissions) Integration of energy efficiency measurement and action plan 20
Acknowledgement This research is conducted in line with the GREEN EFFORTS, "Green and Effective Operations at Terminals and in Ports", a collaborative research project co-funded by the European Commissions under the Seventh Framework Programme. www.green-efforts.eu References DIN Deutsches Institut für Normung (2012) EN 16258:2012 Methodology for calculation and declaration on energy consumptions and GHG emissions in transport services (good and passengers transport) Froese, J/Green EFFORTS (2012) Project Topology, Methodology and Tools, Deliverable 3.1. Froese, J and Toeter, S (2013) Reduction of Carbon Footprint of Ports and Terminals Fiction and Reality, GreenPort South Asia Conference 2013, Mumbai ISO, 2006, EN ISO 14064-1, Greenhouse gases -- Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals ISO, 2011, EN ISO 50001, Energy management systems Requirement with guidance for use Lin, B., Collins, J. and Su, r.k., 2011, Supply chain costing: an activity-based perspective, International Journal of Physical Distribution and Logistics Management, Vol. 31 No. 10, p. 702-13 21
Indah Lengkong & Jens Froese E-Mail: i.lengkong@jacobs-university.de Maritime Logistics Workgroup Jacobs University Bremen 12.07.2013