DNV SEEMP Guideline Why, What and How

Version 1 15 September 2011

THE SEEMP WHY, WHAT AND HOW

INTRODUCTION
This document provides a description of the Ship Energy Efficiency Management Plan (SEEMP) as per the MEPC.1/Circ.683 Guidance for the development of a Ship Energy Efficiency Management Plan (SEEMP) first published in August 2009 and recommendations / guidelines of how a ship owner / operator could develop a SEEMP for vessels in their fleet. The benefits to organizations that have established, implemented and maintained an energy efficiency program for their vessels are more than just fuel savings which are typically in the order of 10% or more. Companies have seen their maintenance costs reduced and at the same time their green profile improving. One DNV customer commenced an Energy Efficiency project with DNV focusing on reducing fuel consumption by 10%. After Year 1, not only did they realize a 15% reduction in consumption, but through an improved performance management framework developed as a part of the project, prevented a near catastrophic main-engine breakdown during transit. Another company used DNV to verify and assist implementation of a comprehensive Energy Efficiency strategy and used the process and results to launch their new climate-change initiative to their clients, shipping pool-owners and industry representatives.

DNVs SEEMP development services have been built on the experience gained from the delivery of both SEEMPs to customers and more comprehensive energy efficiency projects by DNV world-wide and complementary work conducted by the entire DNV organization in the areas of fuel management, ship design, statutory and class services.

DNV EXPERIENCE WHERE IT COUNTS

More than 50 Energy Management projects in recent years Total savings potential identified range from 8-28% (average 12%) Worked in most shipping segments including Tank, Bulk, Container, Cruise/RoPax, LNG/LPG, Chemical, RORO, Seismic and Offshore Over 1000 ships Worked in most geographical areas DNV Petroleum Services with ca. 65% of world fuel testing market Leading ISO certification including 14000 (environmental management systems) DNV Benchmark recording operational performance across thousands of vessels world-wide DNV SeaSkill certifying and delivering maritime training globally

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DNV SEEMP Guideline Why, What and How

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IMO MEPC 62 July 2011

MEPC 62 finished in July 2011 with the adoption of new requirements on CO2 including making the Ship Energy Efficiency Management Plan (SEEMP) mandatory for both new and existing ships irrespective of flag from 1 January 2013 at the first renewal or intermediate survey after this date. The SEEMP provides an approach for monitoring ship and fleet efficiency performance over time, and encourages the ship owner, at each stage of the plan, to consider new technologies and practices when seeking to optimize ship performance. The SEEMP will as per current plans not be subject to approval by flag states or Recognized Organizations such is the case with class, but will be part of a new chapter 4 of MARPOL Annex 6 on Regulations and be required under the International Energy Efficiency Certificate (IEEC). The IEEC requires under Regulation 22 that each ship shall keep on board a ship specific Ship Energy Efficiency Management Plan (SEEMP) (and) shall be developed taking into account guidelines adopted by the (IMO).

IMO MEPC.1/683 Guidance for the Development of a SEEMP

The Guidance document from IMO will be reviewed and updated in the period before the introduction of the SEEMP as a mandatory requirement in January 2013. As always, the challenge for ship owners & operators is to actually realize the emission reductions based on the actions and measures contained in the SEEMP. Key features of SEEMP: Recognizes that operational efficiencies will make an invaluable contribution to reducing global carbon emissions Its main purpose is to establish a mechanism for a company and/or a ship to improve the energy efficiency of a ships operation that is preferably linked to a broader corporate energy management policy The SEEMP is to be customized to characteristics and needs of individual companies and ships It is worth noting that other organizations, like Oil Companies International Marine Forum (OCIMF), has also made their own guideline to SEEMP The IMO guideline itself can be found by following this LINK http://www.imo.org/MediaCentre/HotTopics/GHG/Documents/683%20SEEMP.pdf Please note that this will be updated over the coming 12-months or more, and whilst it is not expected to change too much, it will be modified. To ensure that you have the latest version, always check the IMO website for details.

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This document contains a summary of the IMO Guidance for Development of a SEEMP, followed by a general comment/recommendation from DNV based on experience gained from working in this area for many years.

IMO Guidance for development of a SEEMP recommends focus in 3 key areas

Planning includes ship- and company-specific measures, human resource development and goalsetting whilst keeping in mind to minimize related onboard administration TIP! The most crucial step of the SEEMP development and should reference company goals and processes, ship specific features in both technical and operational spheres, training, competence and timelines.

Implementation includes attention to establishment of an appropriate system that allows for each selected measure to be rolled-out according to plans. TIP! Any system can involve a mix of tools, processes and record keeping that when combined, will enable the implementation of specific energy efficient initiatives. A communication plan that identifies who is responsible for each step in the process will increase awareness and the likelihood of sustainable activity.

Monitoring describes the establishment of a system utilizing various tools, both existing and new, that can provide both a qualitative and quantitative basis for self-evaluation and subsequent review of performance TIP! Perhaps the hardest to activate in a consistent manner, the interaction of the right tools, systems and processes is crucial to track benefit realization and provide the basis to sustain improvements. Many organizations collect a lot of data from a wide range of sources, however not all manage this information to the point that they know how well they are performing or what they should do to sustain or improve.

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DNV bringing lessons from the field to SEEMP development

DNV acknowledges and fully supports the IMO Guidance for the development of a SEEMP for ship owners and operators and believes that the key difference in the outcome will be in the implementation. DNV has developed SEEMPs for customers around the world and brings a systematic, structured and cost effective approach to each project. And as the overriding goal of having a SEEMP is to use less fuel (relatively speaking), the outcome of a successfully deployed SEEMP is to lower costs and reduce emissions. To realize the benefits you must first have a plan The DNV approach remains fully compliant with the IMO guidance and builds on it further by placing emphasis on the delivery and implementation of the SEEMP. The following section provides some insight into leading practices from a range of shipping segments, and whilst we acknowledge that there is a wide range of differences in the worlds fleet, the logic behind each applies to all.

DNV Step 1 - establishing a baseline It is important to examine both the tools and processes in order to determine a credible baseline from which goals, plans and actions all grow. Not only will this help in your understanding of what is being consumed today, it also provides the best starting point in assessing a realistic improvement goal for tomorrow.

Look at both ship internal processes and operational aspects

Understanding the ships internal processes Desired The energy flow output, kW within a ship can be Thrust described with a Sankey diagram as Purchased illustrated which energy, kJ shows that there are many aspects that El. power contribute to energy Steam being lost between purchase and output Fuel quantity Boiler Aux Engine Main Engine Hull and Energy and density efficiency & efficiency & efficiency propeller losses utilisation utilisation efficiency Baselines for ship internal processes are typically found in ship and equipment design documentation and sea trial data: - Engines: Shop or sea trial - Electrical consumption: Design electric load calculations - Boiler efficiency: Equipment specification and test of steam system
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Incorporating the influence of ships operational aspects The operational aspects refer to how the ship is managed and how the equipment and systems are operated, such as: - Route planning - Weather routing - Cargo operations - Ship trim - Electric power management - Use of autopilot Baselines for operational aspects are typically described/embedded in internal operational procedures such as port operations and voyage planning. - Consider to include the IMO recommended Energy Efficiency Operating Index (EEOI) - MEPC.1/Circ.684 as a baseline to measure and record the CO2 emissions per transport kilometer. Whilst this method can apply to many shipping traditional segments it may not be easily calculated for others (for example, Anchor Handlers). For more information on the EEOI, its application and calculation, please visit the IMO website

DNV Step 2 - gap assessment of improvement potential Once a baseline has been established, the next step is to identify how much you can save and just as importantly, what you need to do to realize the improvements. It is worth keeping in mind that some areas with a high savings potential may take considerable effort to plan, implement and realize!

Carry out a gap-assessment to identify improvement initiatives

Assess energy losses The gap assessment can be carried out by performance data analysis and / or a ship energy audit. Data analysis might be sufficient if the company has reliable data available for each ship, while an energy audit of the ship will be necessary if this is not the case. To ensure a practical approach, ship audits could be carried out for reference ships (one or two ships per sister ship class) and should cover both ship internal processes and operational aspects: - Ship internal processes (for example) - Performance test of engines - Insulation of piping and steam traps - Review of engine log books - Operational aspects (for example) - Electric power management - Review of the route planning process - Review of cargo operations The improvement potential should be quantified to get an understanding of the size of the gap. Quantification could be e.g. in percentage improvement potential, ton of fuel or in monetary terms.
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HIGH

Prioritize improvement initiatives It is vital to be realistic when it comes to implementation of identified initiatives. Not all initiatives are equally effective, some are more difficult to achieve, and all initiatives could definitively not be realized at the same time. Prioritization is necessary. One method that feeds into this overall view is to rank the various energy efficiency initiatives according to energy efficiency impact and effort required to implement to prioritize the different solutions.

1st Priority

2nd Priority

IMPROVEMENT POTENTIAL

INITIATIVE 2 INITIATIVE 4

INITIATIVE 3

INITIATIVE 1
LOW

LOW

HIGH

EFFORT REQUIRED

DNV Step 3 - implementation and performance monitoring Once the opportunities have been identified, quantified and prioritized, the important next step is to put them into action. Whilst Information Technology is a great enabler in many business and operational areas, beware of falling into the trap of implementing by email. Being able to track performance effectively, using a variety of established mediums / systems / processes will help overcome resistance to new initiatives. Establishment of monitoring framework It is recommended the performance monitoring system should be standardized for Standardize performance monitoring for the whole fleet the whole fleet and should be able to track the effects independent of each improvement initiative. Tracking performance and translating effect into benefit for example, money saved, emissions reduced or company profit increase when reported to ship & shore, will improve the chances of the various initiatives being sustained. Selection of Performance Indicators Measuring and managing energy efficiency on ships is complicated because of a lack of accurate measuring equipment, the presence of many parameters with large uncertainties that can influence energy efficiency and the difficulty isolating the effects of some parameters. Choice of the most relevant and appropriate performance indicators is important to ensure actual realization of efficiency benefits!

ENERGY EFFICENCY POLICY

COMPANY STANDARD FOR ENTIRE FLEET

KEY PERFORMANCE INDICATORS

SEEMP & PERFORMANCE INDICATORS

SHIP SPECIFIC

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Leading practices suggest that performance indicators (PIs) should be a mix of company-wide and ship-specific to ensure that those chosen are aligned with the operational and strategic environment and seek to achieve the following: Encourage the desired behavior Be quantifiable Be balanced Be set at the controlling organization level

Examples of PIs widely used The EEOI (ratio of mass CO2 emitted per unit transport work) is a useful reference on an aggregated level - However it is not sufficient to monitor actual performance of ship internal process or operational aspects - Does not easily apply to certain segments such as supply vessels, RoRo or research. SOX and NOX emissions based on consumption and fuel type Specific fuel oil consumption (gram fuel oil per kWh) is a unified energy efficiency measure for engines and widely used in the shipping industry. Fuel costs, seasonally adjusted, by route, operational mode or bunker port

DNV Step 4 - evaluation and improvement The progress within the different improvement initiatives should be regularly monitored and followed up by the responsible persons / department with the assessment of performance used to modify future goals and implementation tactics. Knowledge transfer and raising awareness To increase awareness within the organization, a forum for sharing experience from the different initiatives could be established and discussions communicated. Public reporting of results of actions implemented should be considered as a means to demonstrate commitment to improving energy efficiency and minimizing environmental impacts Closing the loop As implementation of initiatives advances, revisiting the prioritization list (Step 2 above) will help maintain momentum not to mention providing a perfect opportunity to let your stakeholders know of your progress. To make this part of the company culture, evaluate processes against corporate policy and integrate into formal company procedures
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Clarify ownership of the implementation, that is who does what, when and how!

Moving from resisting change to embracing new ideas will take time and be based on results that can be verified

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EXAMPLE FORMATS
As DNV consider it against the IMO purpose of introducing SEEMP, we will not make a SEEMP template where you only can fill in your ships particulars and automatically generate a SEEMP for the vessel. The following few examples however illustrate some formats that can be used.

SUMMARY DEVELOPING A SEEMP

Developing a SEEMP should be a systematic and structured process that draws on relevant information and experience from within the organization. The examples within this document should give you a good idea of what it takes to develop a SEEMP that not only meets the IMO requirements but in addition and perhaps most importantly will increase the chances of actually realizing a reduction in emissions and associated costs. And dont forget, as per the IMO Guidance Documents and IECC regulations, a SEEMP must be prepared for each ship. Whilst it can be based on a standard format and will contain some generic elements, it should be tailored to be relevant to ship type, trading routes and operational profile.
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