1 A tool to assist owners and operators in Reducing the emission of Green house gases through more effective scheduling of the fleet NORWEGIAN MARITIME SOLUTIONS John Colletts alle 117, N-0870 Oslo, Norway. Tel: + 47 / 22 95 08 70 Fax: + 47 / 22 95 08 71 Mob: + 47 90 07 13 53 e-mail: [email protected]Contact: Erik Stavseth www.shipstrategy.com GreenerScheduling4004 a module in Route4004
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1
A tool to assist owners and operators in
Reducing the emission of Green house gases through more effective scheduling
Emissions from ships is an increasingly important factor to takeinto account for all shipowning and operating companies
� Shipping activities contribute significantly to the air pollution all over the world.
� Gases that effect climate change include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Ship engines also produce other air pollutants such as carbon monoxide (CO), oxides of nitrogen (NOx), non-methane volatile organic compounds (NMVOCs), particulate matter, and sulphur dioxide (SO2).
� The amount of emissions produced is primarily a function of
Fuel costs now account for up to 70% of operating costs
� Shipowners therefore have a strong incentive to redu ce their fuel consumption
� The industry has also made efforts to increase fuel efficiency as a way of reducing shipping's environmental impact. Contin uing developments in engine, hull and propeller design a nd the use oflarger ships have been helping to deliver greater e fficiencies in fuel oil consumption
� Route4004 and GreenerScheduling4004 are tools that will minimizefuel consumption and thus fuel emissions
International regulations: IMO is taking a lead in setting newlevels
� There have been significant improvements in engine efficiency and hull design, and the use of ships with larger cargo carrying capacities have led to a reduction in emissions and an increas e in fuel efficiency.
� There is worldwide concern about atmospheric pollut ion and global warming and the shipping industry has been playing its part in high level discussions at IMO on reducing ships' emissio ns.
� The major task for the future is to improve the qua lity of fuel oil supplied to ships by the oil companies, the sulphur content of which is relatively high.
� IMO is expected to adopt a number of important amen dments to annex VI of the IMO MARPOL Convention (which regulates ai r emissions),which would introduce more stringent controls on NO x and gradually reduce the global limit for SOx emissions to 0.5% su lphur content in fuel.
Marine Environment Protection Committee (MEPC)58 – October 2008
� The Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) has appro ved proposed amendments to the MARPOL Annex VI regulations to re duce harmful emissions from ships.
� Sulphur– The main changes would see a progressive reduction in sulphur oxide
(SOx) emissions from ships, with the global sulphur cap reduced initially to 3.50% (from the current 4.50%, effective from 1 Jan uary 2012; then progressively to 0.50 %, effective from 1 January 2 020, subject to a feasibility review to be completed no later than 20 18.
The limits applicable in Sulphur Emission Control Ar eas (SECAs) would be reduced to 1.00%, beginning on 1 March 2010 (from t he current 1.50 %); being further reduced to 0.10 % , effective from 1 January 2015.
� NOx– Progressive reductions in nitrogen oxide (NOx) emis sions from marine
engines were also agreed, with the most stringent c ontrols on so-called "Tier III" engines, i.e. those installed on ships c onstructed on or after 1 January 2016, operating in Emission control Areas.
Ship GHG emissions high on agenda at IMO environment meeting July 2009
� The Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) is expect ed to agree on a package of technical and operational measures to re duce greenhouse gases (GHGs) from international shipping and to hol d an in-depth debate on possible market-based instruments to prov ide incentives for the shipping industry, when it meets for its 59th s ession from 13 to 17 July 2009, at the IMO Headquarters in London.
� GreenerScheduling4004 is a software program that will estimate emissions a fleet of vessels generate when it is sc heduled on a commercial basis.
– Trades and cargoes are specified by load port, disc harge port, cargo intake, freight rate etc
– Ships are specified by speed, fuel consumption, dwt , NOX, CO2, SO2 and other parameters.
– Route4004 will first calculate all voyages with day s at sea, days in port, cargo loaded, freight revenue and TC result pr day for each voyage.
– GreenerScheduling4004 will then calculate the total amount of fuel consumed and the total kwh output of engines
– Estimate the emissions based on data for the fuel t ype and the engine specifications.
– If costs for emissions are specified, GreenerScheduling4004 will take this into consideration when finding an optimal schedule for the fleet.
� In a study by Marintek from 2000, it is estimated th at more effective scheduling can reduce emissions substantially by upto 40 % and also contribute to a much higher income on tc basis.
Key Driving Variables (based on IPCC SRES scenarios)
Category Variable Related Elements
EconomyShipping transport demand
(tonne-miles/year)Population, global and regional economic growth, mo dal shifts, sectoral demand shifts.
Transport efficiency
Transport efficiency (MJ/tonne-mile) – depends on fleet
composition, ship technologyand operation
Ship design, propulsion advancements, vessel speed, regulation aimed at achieving other objectives but that have a GHG emissions consequence.
Energy Shipping fuel carbon fraction
(gC/MJ fuel energy)Cost and availability of fuels (e.g., use of residu al fuel, distillates, LNG, biofuels, or other fuels).
Different values applied to three categories of ships:•Coastwise shipping - Ships used in regional (short sea) shipping; •Ocean-going shipping - Larger ships suitable for intercontinental trade; and,•Container ships (all sizes).
• Stabilisation of atmospheric CO 2concentrations by the end of the 21st century will require significant reductions in future global CO 2emissions.
• With 550 ppm , a target of 2 °Cwould be exceeded, and 450 ppmwould result in a 50% likelihood of achieving this target.
• If ship emissions grow as the baseline scenarios and if all other sources follow the 450 ppm stabilisation pathway, then shipping contributes 12-18% of 2050 CO2..
Route4004 is an integrated software program containing thefollowing modules:
� VOYEST4004
– A comprehensive voyage estimator that calculates TC equivalent and other key parameters
� POOL4004
– Allows a number of calculations of chartering pool arrangements, pool points, profit for distribution etc
� OPTI4004
– Is a powerful optimizer that can start with a blank schedule and thereafter find a schedule allocating cargoes to ships so that the fleet result gives the best profit but at the same time respecting all con straints
� GreenerScheduling4004
– Is a module that can calculate emissions and the co sts of emissions in a commercial framework
� VOYACC4004
– Is a complete voyage accounting module that allows recording actual info such as cargo loaded, time in port etc.
The first objective: Operators must be able to estimate whatemissions their scheduling produce
� Few shipping companies have had any focus on the em issions or pollutions that their operation create.
– User can check consistency with MARPOL Annex VI 73/78 sta ndard
� GreenerScheduling4004 will enable operators to estimate the emissions based on their projected trading.
� By using GreenerScheduling4004 the operators can project what impact new governmental or national tariffs on emis sions will have on their operation
� Scheduling of ships have traditionally taken into a ccount trivial factors such as port costs, canal charges, fuel expenses an d handling costs. Now they will also have to deal with cost of emissi ons . These costs will take various forms that will make scheduling a lot more complicated. This is where GreenerScheduling4004 will assist.
� So far the maritime industry is not paying much for the emissions but this may soon be changing as more and more governme nts and international organizations are in the process of i ntroducing tariffs and limits for emissions.
� GreenerScheduling4004 will allow the operators to test various assumptions about the impact of such emission fees:
– Cost of purchasing of CO2 quotas for global or regi onal traffic
– Low sulphur fuel in European waters
– NOX charges not only in Norwegian waters but extend ed to more port areas
– Introduction of maximum limits for emissions altern atively penalty charges for emissions while in ports