DNV SERVING THE MARITIME INDUSTRY ship energy efficiency management plan

The how, why and what of SEEMP

THE POWER TO MANAGE ENVIRONMENTAL PERFORMANCE

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GLOBAL SERVICES TO THE MARITIME AND ENERGY INDUSTRIES

Safety, health and environmental risk management Enterprise risk management Asset risk management Technology qualification

CONTENTS 04 What is SEEMP? 06 Why SEEMP? 09 What is the roadmap for SEEMP? 11 DNVs recommendations for the four focus areas 12  DNV bringing practical experience to the SEEMP development 13 Establishing a baseline 14 Assessment of improvement potential 15 Implementation and performance monitoring 16 Evaluation and improvement 17 SEEMP in a few words 18 Map

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With a Ship Energy Efficiency Management Plan (SEEMP), you can cut costs and reduce emissions. DNV has unrivalled expertise from the maritime industry, so the SEEMP we can develop for you will have a solid foundation.

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THE POWER TO MANAGE YOUR ENVIRONMENTAL PERFORMANCE

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WHAT IS SEEMP?
A Ship Energy Efficiency Management Plan (SEEMP) is intended to be a practical tool for helping ship-owners manage their environmental performance and improve operational efficiency in other words, cut costs and reduce emissions.
In DNV, our experience from the maritime industry is second to none. We believe that the way a SEEMP is implemented is crucial to its success. We have developed SEEMPs for many ships of all sizes, types and ages, giving us a unique advantage over less experienced players in the field. DNV can help you reap the benefits of a SEEMP for your ships cutting fuel consumption and operating costs. The purpose of this brochure is to provide a description of the SEEMP standard* as of January 2012, as well as provide recommendations for how you as a ship-owner or operator can develop SEEMPs for the vessels in your fleet. The benefits of a correctly implemented SEEMP go beyond fuel savings, which are typically in the order of 10% or more. Organisations that have successfully implemented and maintained a SEEMP programme also see reductions in their maintenance costs and improvements in their green profile:

A Client commenced an energy efficiency project with DNV with a target of reducing fuel consumption by 10%. After the first year, not only had they realised a 15% reduction in fuel consumption, but also prevented a near catastrophic mainengine breakdown through an improved performance management framework. Another Client 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.

In DNV, we have built our SEEMP development services on our extensive experience from the maritime industry worldwide. Our expertise in fuel management and efficiency, ship design, statutory and class services provides a solid foundation for the SEEMPs we develop for our customers.

DNV EXPERIENCE WHERE IT COUNTS

More than 50 energy management projects in recent years Savings potential ranges from 8-28% (average 12%) Experience from most shipping segments including Tank, Bulk, Container, Delivered fuel saving plans for approximately 1500 ships Experience from most geographical regions DNV Petroleum Services has approximately 65%
of the worlds fuel testing market Cruise/RoPax, LNG/LPG, Chemical, RORO, Seismic and Offshore

Leading ISO certification including ISO 9001 (management systems)

and ISO 14000 (environmental management systems) and ISO 50001 (energy management) DNV Benchmark recording operational performance across thousands of vessels worldwide DNV SeaSkill certifying and delivering maritime training globally

* MEPC.1/Circular 683 Guidance for the development of a Ship Energy Efficiency Management Plan (SEEMP) first published in August 2009.

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WHY SEEMP?
In recent years, the shipping industry has become the subject of increasing scrutiny as the general community and regulating authorities worldwide become more concerned about global carbon emissions. It is widely recognized that carbon emissions could be reduced significantly if operational efficiency were improved on a large number of ships.
The IMO has taken a lead through MARPOL and other regulatory instruments to enhance energy efficiency and reduce greenhouse gas emissions from shipping. In July 2011, the Marine Environment Protection Committee (MEPC) of the IMO concluded its sixty-second session with the adoption of new requirements on CO2, including making a SEEMP mandatory for new and existing ships irrespective of flag from 1 January 2013 at the first renewal or intermediate survey after this date. A SEEMP provides an approach for monitoring ship and fleet efficiency performance over time, and encourages the ship-owner to consider new technologies and practices at each stage of the plan. The SEEMP will not be subject to approval by flag states or recognized organisations as 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) (which) shall be developed taking into account guidelines adopted by the (IMO).

Global carbon emissions could be reduced significantly if operational efficiency were improved on a large number of ships
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WHAT IS THE ROADMAP FOR SEEMP?

The guidance document from IMO will be reviewed and updated in the period before the introduction of SEEMP as a mandatory requirement in January 2013.
KEY FEATURES OF THE SEEMP:
Please note that this document will be updated over the coming 12-months or more, and while it is not expected to change much, adjustments will be made. To ensure that you have the latest version, always check the IMO website for details. As always, the challenge for ship owners & operators is to actually achieve the emissions reductions based on the actions and measures contained in the SEEMP. The IMO recommends focus on four areas planning, implementation, monitoring and evaluation. In the next section, we provide our recommendations for each of these areas.

The challenge for ship owners & operators is to actually achieve the emissions reductions based on the actions and measures contained in the SEEMP.

It recognises that improvements in operational efficiency can make a valuable contribution to reducing global carbon emissions Its main purpose is to establish a mechanism for a company to improve the energy efficiency of a ships operation preferably as part of a broader corporate energy management policy The SEEMP is to be tailored to meet the characteristics and needs of individual companies and ships.

On the next page, we present a summary of the IMO Guidance for Development of a SEEMP, along with our recommendations based on our experience gained from working in this area for many years. It is worth noting that other organisations, such as the Oil Companies International Marine Forum (OCIMF), have also developed their own guideline to SEEMP. The IMO guidelines themselves can be found at the following address: http://www.imo.org/MediaCentre/HotTopics/GHG/ Documents/683%20SEEMP.pdf

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DNVS RECOMMENDATIONS FOR THE FOUR FOCUS AREAS

PLANNING

includes ship- and company-specific measures, human resource development and goal-setting while bearing in mind the need to minimise on-board administration. DNVs tip: This is the most crucial phase of the SEEMP development and should reference company goals and processes, ship-specific features in technical and operational spheres, training, competence and timelines.

describes the establishment of a system utilising various tools, existing and new, that can provide a qualitative and quantitative basis for selfevaluation and subsequent performance review.

MONITORING

IMPLEMENTATION

includes attention to establishing an appropriate system that allows for each selected measure to be rolled out according to the plan. DNVs 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.

DNVs tip: This is perhaps the hardest area to activate in a consistent manner. The interaction of the right tools, systems and processes is crucial for measuring achievement and ensuring sustained improvement. Many organisations collect data from a wide range of sources, but not all manage this information systematically so that they know how well they are performing or whether they are on track.

SELF-EVALUATION, IMPROVEMENT AND REVIEW

complete the continuous improvement cycle by assessing the effectiveness of implemented energy efficiency actions, identifying ways to improve associated processes and formerly reporting to stakeholders. DNVs tip: Plan to communicate both good and not so good news to interested parties. This will increase awareness and build trust in the programme and activities. In addition, seek regular feedback from others via meetings, presentations and emails to check and validate plans as they unfold.

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DNV BRINGING PRACTICAL EXPERIENCE TO THE SEEMP DEVELOPMENT

DNV recognises and fully supports the IMO Guidance for the development of the SEEMP for ship-owners and operators. We believe that the quality of implementation is crucial to the success of the plan. Thus, developing a SEEMP the DNV way will ensure consistent and lasting savings, not just compliance. 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 a SEEMP is to reduce fuel consumption, the outcome of a successfully deployed SEEMP is reduced costs and emissions.

ESTABLISHING A BASELINE

TO REALISE THE BENEFITS YOU MUST HAVE A PLAN

The DNV approach remains fully compliant with the IMO guidance and builds on it by emphasising the delivery and implementation of the SEEMP. The following section provides some insight into leading practices from a range of shipping segments, and while we acknowledge that the fleets around the world vary widely, the logic behind each applies to all.

It is important to examine 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 current consumption levels, it also provides the best starting point in assessing a realistic improvement goal for tomorrow.

UNDERSTANDING THE SHIPS ENERGY PROFILE

The energy flow within a ship shows that there are many factors that contribute to energy being lost between purchase and output. Performance baselines 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.

 Consider internal ship processes as well as operational aspects

Baselines for operational aspects are typically described in internal operational procedures typically called port operations and voyage planning.  - Consider including the IMO recommended Energy Efficiency Operating Index (EEOI) MEPC.1/Circ.684 as a baseline for measuring and recording the CO2 emissions per transport kilometre. While this method can apply to many shipping traditional segments, it is not easily calculated for others (anchor handlers, for example). For more information on the EEOI, its application and calculation, please visit the IMO website, www.imo.org

ADDING THE INFLUENCE OF THE SHIPS OPERATIONAL PROFILE

The operational profile refers 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 can be hard (i.e. qualitative) or soft measures that should cover a wide range of areas including people and processes.

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ASSESSMENT OF IMPROVEMENT POTENTIAL

C
Ship operational aspects (for example): - Electric power management - Review of the route planning process - Review of cargo operations.

IMPLEMENTATION AND PERFORMANCE MONITORING

PRIORITISE IMPROVEMENT INITIATIVES ASSESS ENERGY LOSSES

The gap assessment can be carried out using performance data analysis 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 energy audits could be carried out for reference ships (one or two ships per sister ship class and should cover ship internal and operational aspects: Ship internal aspects (for example): - Engine performance tests - Insulation of piping and steam traps - Review of engine log books It is important to be realistic when it comes to implementing identified initiatives. A risk-based approach which charts impact and probability creates a picture that helps decision-makers target quick wins.

ESTABLISHING A MONITORING FRAMEWORK

We recommend that the performance monitoring system should be standardised for the entire fleet, and should be able to track the effects of each improvement initiative individually. The chances of the various initiatives being sustained successfully increases if tracking performance translates effects into benefits when reported to ship and shore. For example, money saved, emissions reduced, company profit increase, and so on. Use as many existing systems as possible in order to reduce the burden on personnel. The more new formats that are introduced, the higher the risk of implementation failure. Always keep simplicity and relevance at the top of the agenda when planning new performance monitoring requirements.

IMPROVEMENT POTENTIAL

Once a performance 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 realise the improvements. It is worth keeping in mind that some areas with a high savings potential may take considerable effort to plan, implement and achieve.

Once the opportunities have been identified, quantified and prioritised, the next important step is to put them into action. While information technology is a great enabler in many business and operational areas, beware of falling into the trap of implementing by email. Use a variety of established systems and processes to help overcome resistance to new initiatives.

EXAMPLES OF PIS WIDELY USED

HIGH

The EEOI (ratio of mass CO2 emitted per unit transport work) is a useful reference at an aggregated level  Initiative 2 to monitor actual performance - However, it is not sufficient Initiative 4 of ship internal processes or operational aspects - Does not easily apply to certain segments such as supply vessels, RoRo or research. Initiative 3 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 Initiative 1 used in the shipping industry. Fuel costs, seasonally adjusted, by route, operational mode or bunker port.
LOW LOW HIGH

1st Priority

2nd Priority

 Clarify ownership of the implementation, that is who does what, when and how!

EFFORT REQUIRED

IMPROVEMENT POTENTIAL

 Carry out a gap assessment to identify improvement initiatives

HIGH

1st Priority

2nd Priority

Initiative 2 Initiative 4

SELECTING 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 of isolating the effects of some parameters. Choosing the most relevant and appropriate performance indicators is important to ensure actual realisation of efficiency benefits. 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: Encouraging the desired behaviour Be quantifiable Be balanced Are set at the controlling organisation level.

ENERGY EFFICENCY POLICY

COMPANY STANDARD FOR ENTIRE FLEET

Initiative 3

KEY PERFORMANCE INDICATORS

Initiative 1
LOW

SEEMP & PERFORMANCE INDICATORS

SHIP SPECIFIC

LOW

HIGH

EFFORT REQUIRED
For example, an approach that underpins this method is to rank the various energy efficiency initiatives according to energy efficiency impact and effort required to implement to prioritise the different solutions.

figure text:

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SEEMP IN A FEW WORDS

EXAMPLE FORMATS
Developing a SEEMP should be a systematic and structured process that draws on relevant information and experience within the organisation. The examples in this brochure should give you a good idea of what it takes to develop a SEEMP that not only meets the IMO requirements but also perhaps most importantly increases the chances of actually achieving reductions in emissions and associated costs. And dont forget, as the IMO Guidance Documents and IECC regulations state, a SEEMP must be prepared for each ship. While it can be based on a standard format and will contain some generic elements, it should be tailored to be relevant to each ship type, trading route and operational profile.

EVALUATION AND IMPROVEMENT

The progress within the different improvement initiatives should be regularly followed up by the people or department responsible. The performance assessment should be used to modify future goals and implementation tactics.

KNOWLEDGE TRANSFER AND RAISING AWARENESS

To increase awareness within the organisation, a forum for sharing experience from the different initiatives could be established and discussions communicated. Consider reporting publicly the results of actions implemented to as to demonstrate commitment to improving energy efficiency and minimising environmental impacts.

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

CLOSING THE LOOP

As implementation of initiatives advances, revisiting the prioritisation 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 in the context of corporate policy and integrate into formal company procedures.

DNV / Nina Rangy

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THE POWER TO MANAGE ENVIRONMENTAL PERFORMANCE

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