IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships: A Lloyd s Register Perspective

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1 IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships: A Lloyd s Register Perspective Dr Fai Cheng, Head of Strategic Research Group, Lloyd s Register Author Dr.Cheng is Head of Strategic Research Group of Lloyd s Register responsible for long term research, innovation, the development of future scenarios and for supporting academic research and developing relationships with universities world-wide. Dr. Cheng has been with Lloyd s Register for over 27 years and held key technical and managerial positions. Dr. Cheng provides regular input to UK Government and European Commission on research policies and priorities through a number of advisory bodies. He is Fellows of the Royal Institution of Naval Architects and of the Institute of the Marine Engineers, Scientists and Technologist. 1. Background The marine industry is responsible for the safe and efficient transportation of the vast majority of international freight, for the safe transport of people and for a wide range of maritime support activities from the supply to offshore installation through leisure to the exploitation of marine resources. For more than two centuries, the marine industry witnessed some of the greatest achievement in innovations and technology development that propelled our world forward. Today more than ninety per cent of trades are carried by waterborne transport and we are venturing into more hostile parts of the ocean in ever greater depth to extract resources to power world economic growth. In last few decades, the maritime industries have continuously endeavoured to optimize ship s fuel consumption, e.g., through the development of more efficient engines and propulsion systems, optimized hull designs and larger ships, and thereby achieved a noteworthy reduction in fuel consumption and resulting CO 2 (Green House Gas GHG) emissions on a capacity basis (tonne-mile). 1 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

2 In recent years, social interest on global warming issues has grown increasingly in recent years, and topics related to energy conservation and reduction in CO 2 emissions is omnipresent. International efforts to reduce the impact of climate change started primarily in Rio in 1992 where the framework for sustainable development was agreed by more than 150 governments. This was followed by adoption of the Kyoto Protocol in 1997 which bound the Annex I nations to reduce GHG emissions to an average of 5.2% below 1990 levels, by Although ships are the most fuel efficient mode of mass transport, the Second International Maritime Organisation (IMO) GHG Study 2009 identified a significant potential for further improvements in energy efficiency mainly by the use of already existing technologies. Due to its international nature, marine transportation could not be directly handled through the Kyoto Protocol by Annex I countries. Instead, they are tasked to work through IMO. Political and public pressures have therefore been mounting on IMO, being a responsible organisation for international shipping under climate change conventions, to act, see IMO publications in the references. In 2010, IMO introduced Technical measures, Operational measures and Economic instruments as instruments for reducing CO 2 emissions. The technical and operational measures mentioned here are direct measures for improving the energy efficiency of a ship. The former are implemented by improving the ship s hardware (equipment), while the latter are implemented by improvements or innovations in the operation of the ship. In contrast, economic instruments are not meant to reduce CO 2 emission directly; they may be considered as instruments that offer economic incentives to promote implementation of the technical measures or the operational measures. In this article the author intends to cover the Technical Measures and reports on Lloyd s Register s R&D efforts making a contribution to increase efficiency and minimising GHG emissions with the ultimate aim to assist compliance with the technical measures. 2. Technical measures Technical measures aim to enhance the energy efficiency by hardware (equipment) improvements of the ship. IMO has introduced the Energy Efficiency Design Index (EEDI) as the index for evaluating the technical measures. EEDI relates to efforts by IMO to limit global warming through pollution of the environment by marine engines, allowing a specific figure for an individual ship design to be calculated by means of a fairly complex formula. It is expressed in grams of CO 2 per ship's capacity mile, and a smaller EEDI value indicates a more energy-efficient ship design. The far more complex EEDI formula itself may be roughly simplified as: EEDI = CO 2 Emission/Transport Work; broadly then, EEDI may be thought of as a ship's carbon dioxide output divided by its cargo-carrying capacity. Thus EEDI in gco 2 per tonne mile is an index expressing the energy efficiency of new ships, and is estimated by the equation below. 2 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

3 While the equation looks horribly complicated, it can be boiled down in efficiency of the main engine, the auxiliary engine with additional allowance for innovative technologies implementations as sown in Figure 1 and Figure 2. Figure 1: Key components in EEDI formulation Figure 2: Illustrative example of key components of the EEDI formulae In the equation above, the EEDI is a value calculated taking design values as parameters, and it expresses the CO 2 emission reduction potential. EEDI is required to satisfy the IMO standard value 3 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

4 for new ships to be built and is being introduced in phases as regulatory measures as shown in Figure 3. Figure 3: Proposed EEDI implementation tiers and reduction rates EEDI regulatory reduction rates will initially be applied to dry cargo carrier, gas tankers, tankers, container ships, general cargo ships and refrigerated cargo ships above 400 gross tonnages. These ships will be required to have an International Energy Efficiency Certificate (IEEC). The regulations exclude certain types of ships such as offshore, fishing and service vessels and ship sizes below certain capacities will also be exempted. 3. Lloyd s Register EEDI verification scheme Each ship will need to have verification of the 'attained' EEDI value at both the design stage (preverification) and the build stage prior to delivery (final verification). This process ensures that the EEDI value for the ship is less than the value required by the baseline (reference line) for that ship type and size. Until the EEDI becomes mandatory, Lloyd s Register developed a scheme which can provide voluntary verification for new ships, for owners who wish to take a strategic position in early EEDI adoption; and on behalf of the various flag-states when it becomes mandatory. In the EEDI verification process, it will be necessary to work closely with owners and yards to deliver assurance and provide technical advices where required or necessary. It will also ensure comprehensive and consistent certification is carried out for individual ships and sister ships and provide support your individual requirements. In this way the implementation of EEDI will become an easier process for owners and ship yards thereby lighten their burdens. 4 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

5 4. Lloyd s Register R&D in EEDI reduction technologies The main question raised by industry relates to potential for EEDI reduction and how industry is going to comply with EEDI regulations, specifically the reduction rates. Techniques for reduction of EEDI is therefore need to be evaluated. From the EEDI equations, it appears that the main categories of EEDI reduction technologies and opportunities include the following: A. Policy issues on shipping logistic; B. Modified hull form (reduction in propulsion resistance) ; C. Modified propeller (enhanced propulsion efficiency); D. Energy-saving appendages on hull; E. Increase in deadweight capacity by increasing the hull size; F. Use of energy from exhaust heat recovery; G. Use of renewable energy (wind power or solar power, etc.). Lloyd s Register, in addition to the development of EEDI verification scheme mentioned earlier, has embarked on a large research programme working both collaboratively with owners and yards through Joint Industry Projects (JIP), and research programmes on EEDI reduction technologies and opportunities funded by Lloyd s Register (LR), UK Research Councils (UKRC) and EU Commission under the Sixth and Seventh Research Programmes (EU). A summary of research programmes under the strategic research umbrella with active Lloyd s Register participations is given in Table 1. This is not an exhaustive list, but serves only as an indication of the extensive works being conducted in LR. Technology Categories Number of Projects Key areas or technologies being researched Funding Sources Policy research 3 Low carbon shipping, green impact assessment, carbon abatement UKRC, LR, EU Modified hull form 1 Design optimization LR, JIP Modified propeller 2 Propeller design optimization, novel propellers JIP and EU Energy-saving appendages 3 Novel propellers, appendages flow design optimisation JIP Size Increases 2 Modular ship, green container ships JIP Use of energy from exhaust heat recovery Use of renewable energy 3 Green bulk carrier, container ship and green tanker 7 LNG, Bio-fuels, fuel cells, algae-based fuel, wind, solar, methanol and DME, battery and nuclear JIP LR, JIP & EU Table 1: A summary of research programmes with active Lloyd s Register participations 5 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

6 One recent example of design optimisation R&D project using EEDI as a benchmark measure was the collaboration between Lloyd s Register and Shanghai Bestway Marine Engineering Design Co. Ltd. A package of work was scheduled as follows: Energy saving optimization included hull shape optimisation, rudder/propeller integration, propulsion package optimisation and the use of 2 nd generation anti-fouling paint. Design optimisation for weight reduction included ballast capacity reduction and leverage owners and Lloyd s Register experiences. Machinery and systems optimisation included aiming for maximum energy saving and reduction of emissions and minimising electrical load and maximising heat recovery leverage on knowledge and experiences of engine builders. Model test of hull to reduce resistance and simulation for propulsion efficiency were carried out. The new design exceeded targets in a number of key areas after extensive model testing: Steel weight reduction of 12% was achieved against a target of 10%. Fuel consumption was reduced by 19.5% against a target of 15%. These were achieved using existing technologies which showed what can be achieved using EEDI as target for optimisation. In this case the IMO baseline EEDI was 6.56, 6.04 for the basis ship targeted for design optimisation and achieved an index of 4.95 for the revised final design. Figure 4: Principal particulars for targeted ship 6 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

7 Figure 5: Model for design optimisation study 5. Concluding Remarks EEDI Index as a technical measure is the best compromise that could be made within the IMO, an assembly of disparate nations. It has been recognised that the EEDI Index is not a perfect technical measure, and indeed it has a number of issues which are required to be resolved to achieve its full potentials, principally: Implementation: the framework for EEDI regulatory regime has been agreed, however, the details and guidelines are still evolving. Safety: energy efficiency regulations may lead to under-powered ships or ships with low design speeds. This is particularly worrisome in adverse weather conditions and could potentially contravene some IMO safety regulations. Shipping: it could cause the shift of cargo and passenger freights from ships to land or air transport. Technology: Many emission reduction and efficiency improvement technologies are still in development and yet unproven. Economics: It has been predicted shipping cost will arise. Interrelations of other measures: It is not clear the interrelations between and impacts on other measures such as operational and market-based measures. 7 Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

8 Despite the above concerns, EEDI Index will become an essential yardstick for future ship design, since the Maritime Safety Committee of IMO adopted resolutions that will have international mandatory effect from 1, January These measures popularly known as, 'Goal-based Standards', are aimed to promote more efficient marine engines and best practices of merchant ship construction. In the words of an IMO spokesman following the resolution: "[It] means for the first time in its history, IMO will be setting worldwide standards for ship construction." Therefore, its universal implementation should be supported by more R&D for new and emerging technologies for design and operations. Additionally we need more impact assessment studies on economic and implementation impacts to ascertain its penalties and rewards, therefore providing further input to its improvement and refinement. Lloyd s Register is investing heavily to support the expected wide-spread adoption of the EEDI implementation for the benefits of marine stakeholders and ultimately fulfilling our constitutional objective of adding value to society. Acknowledgement The assistance provided by colleagues of Lloyd s Register and in particular those papers and information provided by Dr. Zabi Bazari, principal environment specialist of Lloyds Register, are gratefully acknowledged. References & Bibliography 1. Bazari, Z and Reynolds G Sustainable Energy in Marine Transportation, IMarEST Conference on Sustainable shipping: progress in a changing world, February 2005, London, UK. 2. International Maritime Organization, Marine Environment Protection Committee Report on the outcome of the IMO Study on Greenhouse Gas Emissions from Ships, MEPC 45/8, International Maritime Organisation, London International Maritime Organization, Resolution A.963(23) IMO policies and practices related to the reduction of GHG emissions from ships, Adopted by 23rd Session of IMO Assembly, December International Maritime Organization, Marine Environment Protection Committee, Interim Guidelines for voluntary ship CO2 emission indexing for use in trials, MEPC/Circ.471, International Maritime Organization, Second IMO GHG study 2009, Buhaug, Ø.; Corbett, J.J.; Endresen, Ø.; Eyring, V.; Faber, J.; Hanayama, S.; Lee, D.S.; Lee, D.;Lindstad, H.; Markowska, A.Z.; Mjelde, A.; Nelissen, D.; Nilsen, J.; Pålsson, C.; Winebrake, J.J.; Wu, W. Q.;Yoshida, K., London, International Maritime Organization, Marine Environment Protection Committee, Interim Guidelines on the method of calculation of the Energy Efficiency Design Index for new ships, MEPC.1/Circ.681, International Maritime Organization, Marine Environment Protection Committee, Interim Guidelines on the voluntary verification of the Energy Efficiency Design Index for new ships, MEPC.1/Circ.682, Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships

9 8. International Maritime Organization, Marine Environment Protection Committee, Guidance for the Development of a Ship Energy Efficiency Management Plan, MEPC.1/Circ.683, International Maritime Organization, Marine Environment Protection Committee, Guidelines for Voluntary Use of the Ship Energy Efficiency Operational Indicator, MEPC.1/Circ.684, International Maritime Organization, Assessment of IMO energy efficiency measures for the control of GHG emissions from Ships, report by LR and DNV, MEPC 60/INF.18, 15 January International Maritime Organization, CO2 emission reduction potential by the required EEDI in accordance with regulatory options developed by EE-WG 1, Report by LR and DNV, MEPC 61/WP.5, September International Maritime Organization, Marginal abatement costs and cost-effectiveness of energy-efficiency measures Report by IMarEST, MEPC 61/INF.18, 23 July Lloyd s Register Approach to IMO Technical Measures in Reducing Greenhouse Gas Emissions from Ships