leading the way; making a difference monitoring reporting & verification (mrv) of data to assess...

Leading the way; making a difference

MONITORINGREPORTING

&VERIFICATION

(MRV)

OF DATA TO ASSESS THE ENERGY EFFICIENCY OF SHIPS IN OPERATIONS(FUEL CONSUMPTION & OTHER DATA)


BACKGROUND Climate Change/GHG Emissions reductions – HIGH level political item

Kyoto Protocol – Regulatory frame work through UNFCCC – Parties commit to emissions reductions targets:

• primarily through national measures . . . . . . but also • through additional MBM

Aviation & Shipping not included due to their international characterUNFCCC agreed measures are taken through ICAO and IMO, respectively

ICAO decision: to suggest an ETS for aviation by 2016 with enforcement in 2020

IMO decisions: mandatory EEDI for new buildings & SEEMP for all ships

SEEMP does not set a target for GHG emissions reduction of ship in operationsRegulators want a targetIMO considered developing MBMs for shipping but no agreement in sightAlternatively – Regulation to assess the energy efficiency of ships in operationFirst step – Monitoring, Reporting and Verification (MRV) of specific data


BACKGROUND

• IMO mandates Energy Efficiency Design Index (EEDI) for new buildings (1 January 2013) & Ship Energy Efficiency Management Plan (SEEMP) for all ships

• SEEMP does not set a target for GHG emissions reduction of ship in operations

• IMO considering Market Based Measures (MBM) for shipping but so far, no agreement

• Alternative: Amendments to MARPOL Annex VI to assess Energy Efficiency of ships in operation


ENERGY EFFICIENCY OF SHIPS

The Concept: Three step phase-in legislation

• Phase I – data monitoring, reporting and verification (MRV); analyse and determine base line; determine target for improvement

• Phase II – trial period for verification of enforceability of the set target

• Phase III – enforcement

The Proposals:

- Proposals at IMO by: USA, Japan, Germany and EU/EMSA

- Regional Proposal by EC


PROPOSED SCHEMES at IMO – USA

Ship Efficiency Credit Trading (SECT)

Data to be used: (a) joules of energy and (b) service hours

Measure: Set required efficiency on joules/service hours for each ship type and size.

A three phase-in measure as follows:

Phase I: Data Collection; Submission, Verification and Analysis PhaseDevelopment of base lines based on data reported by ships over two yearsDevelopment of Attained Efficiency Standards in terms of percentage

improvements from the base linesVerifying Achievement of the Standard

Phase II: Pilot Phase – rule is exercised but not enforced. Time to adjust requirements when some flexibility will be provided.

Phase III: Full implementation

Target: To be established after baseline is established

Measure if not compliant: not addressed


Annual Energy Efficiency Operating Index (EEOI)!!

Data to be reported: (a) fuel consumption and (b) distance Measure: Annual EEOI value calculated with a “standard cargo” (vessel’s DWT)

Annual EEOI!! = Σ(Fuel consumption x CF) / total distance / DWT

Target: A defined target EEOI value based on data collected from ships.

Three options:

(a) an improvement compared with an average EEOI rolling average values for all ships of same type and same size established by IMO ; or

(b) an improvement as compared with the previous year actual EEOI rolling average value (a ship based target)

(c) hybrid - ship fails to meet the target as set in option (a) (say because of the trading pattern), compliant if its meets the target as set in option (b) Measures if not compliant: not addressed

PROPOSED SCHEMES at IMO – JAPAN


PROPOSED SCHEMES at IMO – GERMANY

Fuel Oil Reduction Strategy (FORS)

Data to be used: (a) installed power (b) average Specific Fuel Oil Consumption (SFOC) (c) average annual operational time and (d) average annual cargo carried.(NOTE: Installed Power to be taken from IHS-Fairplay; the rest of data taken from the IMO Second GHG Study (data for year 2007).)

Measure: Reference Fuel Consumption for a ship type and size calculated as follows:

RFC = (Installed Power) x (~ SFOC) x (~ operational time) x (~ cargo carried)

Target: Standard (maximum) annual fuel consumption calculated as follows:

Standard = RFC x (1 – Reduction Target in % to be defined)

Measure if not compliant: not addressed, but it is suggested that, if ship is using more fuel than allowed by the standard, some flexibility for compliance is considered such as averaging consumption with ships within the same fleet or other means yet to be specified.


PROPOSED SCHEMES at IMO – EU/EMSA

Individual Ship Performance Indicator (ISPI)

Data to be reported: (a) annual fuel consumption (b) annual distance travelled

Measure & Target: Efficiency Improvement Target (EIT) - actual permitted CO2 emissions per nautical mile for each ship (each ship has own reference value!)

EIT (grams of CO2/nautical miles) = CO2/D x (Y x Vc)

Y is improvement in %Vc is Variance (ship’s past performance versus a reference line value –

EIV/EESV)

• Data collection for 2 to 3 years to determine ship’s “past performance”• Calculate each ship’s Estimated Index Value (EIV) in gCO2/n-mile (not yet developed)• Determine Vc = compare EIV with the Energy Efficiency Standard Value (EESV)

which seems to be the value from a regression/averaging line to be determined from the data collected for that ship type & size

Measures if not compliant: not addressed.


Annex to MEPC 66/4/6

1. The ship’s efficiency measured through its EIV (which is the definition of the base lines set for defining EEDI)2. Ship’s EIV value gives it a +/- correction factor Vc = EIV/EESV3. Efficient Improvement Target (EIT) (g CO2/n- miles) = CO2/D x (Y x Vc) where Y is the reduction target in % (D is distance)


0 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 250,000 275,000 300,000 325,000 350,0000

1.5

0.4983

0.3337

0.4154

0.7604

1.2389

0.7163

0.3851

1.1710

0.9538

0.6100

0.5574

t/m

INTERTANKO DATA – CO2/n-mile

NOTE: this is the type of curve giving results on gCO2/n-mile (no cargo)


Applicability: All ships > 5,000 GRT calling to EU ports

Reporting CO2 emissions when ships travel:

• between EU ports, • an incoming voyage from a non-EU to an EU port• an outgoing voyage from an EU port to a non-EU port

Data to be reported: fuel consumption, distance and cargo(Note: EP proposed only fuel consumption and distance)

Measure: to monitor the ship’s average energy efficiency at least with the following criteria:

Total annual CO2 emissions / total annual distance travelled

Total annual CO2 emissions / total annual transport work

EC REGIONAL PROPOSAL on MRV


EC REGIONAL PROPOSAL on MRV

Proposed Dates for implementation:

1 July 2015 – enter into force

31 August 2017 – companies should submit to “verifiers” Monitoring Plan

1 January 2018 – starts first annual reporting period

2019 and after

– by 30 April each year, companies shall submit a verified emissions report to the European Commission and to the Flag State

– by 30 June each year, the European Commission will make the emissions reported by ships publicly available (Note: EP proposed data will not be made public)


No decision taken . . . . . but - Agreed for a phase-in rulemaking with an initial global data collectionINTERTANKO position: a phase-in rulemaking with an initial data collection; based on data collection, IMO could assess:

(a) the necessity of developing the rule; (b) the standard to define efficiency; and (c) the target required for compliance

- A global data collection system could include elements such as:(a) identity of the ship (IMO number and Flag State Administration)(b) the shipowner and operator (name and address and place of business)(c) technical characteristics of the ship, for example DWT, engine power, reference/design speed, EEDI, etc.(d) total annual fuel consumption per fuel type; and (e) total annual transport work (tonne-miles) or transport work proxy, e.g. distance or service hours.

- Consider to establish a centralised database for the purpose of data collection and it is preferable for this database to be hosted by the IMO

Outcome from MEPC 66


To be further discussed

- Data reporting and collection: on voluntary basis or mandatory?

- Frequency of reporting – preference indicated for an annual reporting

- Should data include “transport work” (tonne-miles) or should use only a surrogate of such transport work such as “distance” or “service hours”? - further work to take into account the advantages and disadvantages of each of these options.

INTERTANKO current view: there could be different ways on how best to define Energy Efficiency in Operation for different ship types. Therefore, at least for Phase I of the proposed regulation, INTERTANKO would like to propose that, for tankers only, the proposed rule should retain collection of data on the “total actual cargo” carried by tankers for further assessments before a final decision is made.

- The four options presented as possible mechanisms (core elements) for assessing the energy efficiency of ships in operations - these four options should be tested from the data collected



Work ahead

- Established a Correspondence Group to carry on the matters addressed by MEPC 66

- Flag Administrations and organisations were encouraged to submit data on voluntary basis, thus facilitating the testing of the various proposed options to assess the energy efficiency of ships in operations.

Concluding: although there were no concrete decisions taken by MEPC 66, the outcome may facilitate more concrete developments and progress to be presented at MEPC 67 (October 2014).



INTERTANKO COUNCIL DECISIONS

• INTERTANKO supports collection of fuel consumption data to measure CO2 emissions from ships

• Ship’s efficiency is the best method of measuring performance improvement, with fuel consumption being the critical parameter

• INTERTANKO should continue ongoing work to distinguish the difference between “ship efficiency” and “transportation efficiency”

• INTERTANKO will continue investigations and assessments of the best possible model for oil and chemical tanker operations with an objective of positively influencing any regulatory decisions. The model should attempt to remove the involvement/influence of other stakeholders (importers, charterers, cargo owners, etc.)

• To assist in developing this model, INTERTANKO members are encouraged to provide fuel consumption data to the Secretariat, FOR INTERTANKO’s INTERNAL USE ONLY


INTERTANKO ACTIVITY ON MRV

Established a Joint Working Group (JWG) on MRV with participation from ISTEC & Environment Committee. JWG met 4 times and so far:

• Provided comments to the EU proposed MRV regulation• Promoted views with the EU Commission, EU Parliament and EU

Council• Initiated and continues to collect data from members• Explores means for a best approach to assess fuel efficiency of tankers

in operations• Attempts to develop a possible INTERTANKO model which removes

from the assessment the involvement/influence of other stakeholders (importers, charterers, cargo owners, etc.)

• Plans to develop a guide for a standard model of a Monitoring Plan

JWG reports to ISTEC/Environment CommitteeJWG activity monitored and guided by the Executive CommitteeINTERTANKO Council assesses progress and endorses further actions


INTERTANKO FURTHER COMMENTS ON MRV

MRV should be discussed at IMO - Regional MRV will bring marginal benefit

Regulators must consider thoroughly data and results before taking next step

Simplicity in data collection

Flexibility to allow for different approaches between shipping sectors, if justified

For tankers, allow reporting of cargo transported for further assessments before a final decision is made


DATA COLLECTION FOR INTERNAL USE

• Vessel # (for confidentiality, ship’s name or IMO # not required)

• DWT (max. summer draught)

• Type tankers (oil, product, chemical/product, chemical)

• Total time on laden voyages (hours) / reporting period (one year)*

• Total distance in laden voyages (nm) / reporting period (one year)*

• Total number of voyages / reporting period (one year)*

• Total cargo onboard (tonnes) / reporting period (one year)*

• Total time on ballast voyages (hours) / reporting period (one year)*

• Total time at berth (hours) / reporting period (one year)* –

• Total fuel consumption at berth / reporting period (one year)*

• Total fuel consumption (tonnes) / reporting period (one year)* (HFO- LSHFO-

MGO)

• Σ tonne-miles for all voyages / reporting period (one year)* * reporting period (one year) – INTERTANKO proposed definition:“All completed voyages in one calendar year during which emissions have to be monitored and reported”


INTERTANKO POSSIBLE MODEL

Two-tier approach for assessing energy efficiency:

• The overall indicator reflecting the “transportation efficiency” (e.g. EEOI)

• An additional Energy Efficiency Tanker Indicator (EETI) indicating the ship’s technical efficiency considering only parameters under the ship owners’ control

OBJECTIVES of EETI

• Enable a transparent performance benchmarking for the tanker

• If tankers fail to met the “target transportation efficiency value” (e.g. target/required EEOI value), it might prove compliance through the EETI.

DEVELOPMENT OF EETI

• Derived from EEOI and represents the carbon intensity of a ship in a referenced condition

• Mathematically splits EEOI into a technical factor and a logistics factor


INTERTANKO possible model

The technical factor relates the fuel consumption ( as reported in the calculation of the EEOI) with the ship’s design parameters, i.e. full load (dwt) and the designed speed (Vdes) The logistics factor can be analysed into three elements:

1. the “cargo utilisation” (actual cargo/over maximum cargo capacity mL/dwt), 2. the “distance utilisation”(distance covered in laden condition versus the total

distance [dL/(dL + dB)] 3. the “speed utilisation” (actual average speed for the period used to calculate

the EEOI/ design speed or Vop/Vdes)

For the calculation of the EETI it is necessary to apply a correction for the fuel consumption, which has to be related to the design speed. Therefore a fuel consumption correction factor “fss” is used (which can be derived from S-P curves) but for most ships is adequate to assume: fss =(Vdes/ Vop)^3

By applying all above factors to the EEOI, then the EETI is calculated as a “normalized” figure of the EEOI, somehow “neutralizing” the influence of commercial parameters in the logistics factor-

leading the way; making a difference monitoring reporting & verification (mrv) of data to assess...

Documents

required efficiency

set target phase

ships seemp

data monitoring

standard phase

joules of energy

improvement phase

operations imo