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<p>HorizonsNews and Information for the Marine Industry. A Lloyds Register magazine</p> <p>May 2011</p> <p>Is LNG the fuel of the future? STS transfer Regasification Worlds largest LNG ferry Major terminals</p> <p>In this issue: When the sloshing had to stop Page 20 The fish that flies on a cushion of air Pages 2629</p> <p>Horizons May 2011</p> <p>Introduction</p> <p>Contents</p> <p>Our more complex world1 2 Front cover: Excelerate Energy-operated LNG tanker Excelsior performs a regasification operation, transferring LNG to the UK national grid, at Teessides GasPort near Middlesbrough, North-East England. Equipment type approval and operational risk analysis and simulation studies were performed by Lloyds Register. Excelerate Energy, a developer of LNG transportation and regasification infrastructure, has just performed its hundredth ship-to-ship transfer of LNG. A recurring theme in our analysis of the challenges and changes that the shipping industry and world trade will have to manage is that of complexity. The tragic events in Japan have drawn attention to the potential fragility of global supply chains as well as halting, for the time being, the potential expansion in the use of nuclear power as an almost zero carbon source of energy, writes Nick Brown, Lloyds Registers Marine Communications Manager. We are closely following developments in the global supply chain. Lloyds Register is involved from oil well to fuel tank and from farm gate to the breakfast table in helping commodity players, industry and society manage risk and complexity. There is a growing realisation that the model of all manufacturing being offshore, a long way from consumption, may not necessarily be the future. Future efforts to reduce carbon emissions from both industry and shipping may lie in adjustments to our supply chains and changes in patterns of consumption. Some companies may soon no longer feel it is necessary to manufacture in China it may, for example, be no more expensive to manufacture in the United States. Such a development would have a significant impact on global shipping. Future fuels There are many competing approaches and agendas as the world struggles to plan for the future balancing a requirement for increased amounts of energy with the need to reduce environmental impact. The dramatic introduction of shale gas as a source of affordable, clean energy might be viewed as bolstering those pushing gas as a fuel of the future and not just in shipping. But there is a growing realisation that while LNG can be used to mitigate SOx, NOx and particulate emissions, its contribution to reducing greenhouse gas emissions is unproven. Across the supply chain, from well to flue emissions, there may in fact be legitimate concerns that LNG does not reduce CO2 emissions on a like-for-like basis with other fossil fuels. Theres a lot more work to be done here and hopefully we throw some light on the role gas will play as a fuel of the future with our focus on LNG in this issue of Horizons. Scrubbing or distillates are increasingly looking like the mainstream, pragmatic route to compliance With the huge bulge in the orderbook still being delivered into the market and no likelihood of LNG applications for either retro-fit or the vast majority of newbuildings, heavy fuel oil (HFO) remains the fuel of today and of shippings medium-term future. Logically, therefore, we are going to see either the widespread adoption and fitting of exhaust gas scrubbing technology or the use of distillates. We are not going to predict what that balance will be, but we are ready to support the industry in helping ensure safe installation and safe operations predicated on our extensive technical competence. The longer term We feel that the longer-term future for ship propulsion is still wide open. Despite Fukushima we cannot altogether dismiss the potential of nuclear power, but its use is primarily a socio-political issue rather than a problem for engineers. LNG has local uses and may have wider relevance if CO2 abatement technologies emerge but perhaps, as Maersk Lines Jacob Sterling has suggested in our most recent publication Shipping and the environment, it could be a stepping stone to using biogas from renewables. The world has to decide what risks it wants to manage. For instance, is global warming and the prospect of a dramatic rise in sea levels more of a threat than nuclear power? The nuclear debate has demonstrated very clearly that the risks posed by our demand for energy, the damage we are doing to the environment and the potential solutions remain all too poorly understood by governments, those that they govern and the mainstream media.</p> <p>Introduction: Our more complex world Changing faces News: Pilots of the Caribbean gain recognition Trimming the fuel bill Dragging ships into saving fuel Power talk Show time Winning combination Shipping and the environment Cover story: LNG fuel of the future? Viking builds the worlds first large LNG passenger ferry Why its good to talk about LNG projects How GTT and Lloyds Register tackled a membrane problem Failure investigation solves exhaust duct problem Companies craft carbon capture carriers When the sloshing had to stop Greek stories: Day the ship came in Hellenic environment group tackles major green issues STS transfers the LR way Flight of the gas-driven fish Regulatory round-up: ECAs are more than just a sea change Enhancing organisational integrity</p> <p>4 4 5 5 5 5 5 6</p> <p>10 12</p> <p>14 17 19 20</p> <p>21 21 22 26Horizons is the journal for Lloyds Register Marine clients and staff, delivering news and analysis on our global activities. The Horizons team are: Editor: Chris Browne E: chris.browne@lr.org T: +44 (0)20 7423 2654 Marine Communications Manager: Nick Brown Staff photographer: Mat Curtis Design and production: Columns Design</p> <p>30 34</p> <p>Nick Brown Lloyds Registers Marine Communications Manager</p> <p>Horizons is produced by Marine Communications. Care is taken to ensure the information it contains is accurate and up to date. However Lloyds Register accepts no responsibility for inaccuracies in, or changes to, such information.</p> <p>1</p> <p>Horizons May 2011</p> <p>Changing faces</p> <p>3 2 4</p> <p>Changing faces</p> <p>7 1 5 6</p> <p>1 Houston Tim Protheroe Head of Energy and Marine Currently Regional Marine Manager (Americas), Tim is to combine the role with leading Lloyds Registers Houstonbased energy business from July 1 this year. Our Houston operations are building on our 100-year history in the USA by becoming a more active member of the community through local sponsorships and community-support projects, he said.</p> <p>2 London Katharine Palmer Environmental Subject Matter Team (SMT) Manager, Marine Product Development Katharine, who was Environmental Manager at BP Shipping responsible for policy, strategy and framework is the new head of environmental marine product development. Katharine has represented BP Shipping on environmental groups at the Oil Companies International Marine Forum (OCIMF) and the UK Chamber of Shipping. She is Chair of the Executive Committee of Shipping Emissions Abatement and Trading (SEAaT), which encourages the reduction of harmful emissions from ships.</p> <p>3 Copenhagen Brian Srensen Client Relationship Manager for the A.P. Moller-Maersk account Brian is returning to the Copenhagen office after two years as Senior Surveyor in charge of Lloyds Registers Abu Dhabi office. He joined us in 2007 as a surveyor, later becoming a senior surveyor. Brian has been a project manager with Maersk Ship Design</p> <p>4 Lyon Pierre de Chateau Thierry Marine Business Development Manager, France Since joining Lloyds Registers graduate scheme eight years ago, Pierre has worked in the UK and spent seven years in Asia, moving from the Ulsan site office and Busan DSO in Korea to the Shanghai BDT in China.</p> <p>5 Dubai Willem Molker Area Business Development Manager for the Middle East and Africa Willem has been General Manager of the China Marine Business Development Team (BDT) in Shanghai for almost three years helping Lloyds Register win 30% of Chinese newbuilds or 249 ships and making us top Chinese classification society in 2010. Willem, who will move to his new post on July 1, will be responsible for a new area from Morocco to South Africa and Iran and Pakistan.</p> <p>6 Vung Tau Lee Tuan Phong Country and Marine Manager for Vietnam Formerly Office Manager and Marine Business Development Manager at Vietnams Vung Tau office, Lee is the new Country and Marine Manager for Vietnam. He reports directly to Nigel Worsley, Marine Senior VP for South East Asia.</p> <p>7 Shanghai Thomas Klenum General Manager of the China Marine Business Development Team (BDT) Thomas, who was Manager of the Marine Business Development Team in Copenhagen, Denmark, replaces Willem Molker as General Manager, China Marine Business Development Team (BDT). He has spent 17 years with Lloyds Register in Copenhagen, Shanghai and London and has been a Principal Surveyor and Manager since 2004.</p> <p>2</p> <p>3</p> <p>Horizons May 2011</p> <p>News</p> <p>Trimming the fuel billA novel and inexpensive way for owners to trim their fuel bills has been devised by Lloyds Registers Technical Investigation Department (TID) after trials with pure car carriers (PCCs) operated by Hegh Autoliners.</p> <p>The future is emerald A 35,000 dwt bulker design known as Emerald that exceeds all previous fuel efficiency targets has been devised by Lloyds Register and Shanghaibased Bestway Marine Engineering Design.The concept is a performance-beater in several key areas. It reduces a Handysize bulkers steel weight by 12% (the target was a 10% reduction), freeing up space for more revenue-generating cargo without increasing fuel consumption. It also reduces fuel consumption by 19.5% (the target was 15%). Both companies are going back to the drawing board to seek out further environmental and fuel-efficiency gains with 35,000 dwt bulkers and other ship designs. Professor Liu Nan, Bestways Chairman and General Manager, said: I am sure that with more co-operation our Emerald series and other bulk carrier ship-types will be optimised, and all these ship-types will satisfy a growing demand from the global shipowner community. Lloyds Register (China), supported by our Strategic Support Group, is working with Bestway to provide training on the application of our classification rules and rule-change updates, as well as providing Bestway staff with technical training on the operational impact these changes will have on ship design.</p> <p>Image shows airflow around a bulk carriers deckhouse</p> <p>Winning combinationThe Life Matters team from Lloyds Register won a special awareness award in the Royal National Lifeboat Institution (RNLI) Brawn Lifeboat Challenge recently. Pictured (left to right) are Jack Lewis, Spyros Hirdaris, Tom Boardley, Latifat Ajala, Ross Brawn, Ian Williams, Morgan Le Callet, Harry Blanchard (top), Ron Bishop (bottom), Paul Dilley.</p> <p>Pilots of the Caribbean gain recognitionA group of marine pilots from Trinidad and Tobago recently qualified for a new industry standard, the International Standard for Pilot Organisations (ISPO), which was developed by Lloyds Register and the Dutch Pilots Association. The Caribbean archipelagos pilots are the fifth group to be awarded the standard, joining teams from Belgium, Bulgaria, the UK and the Netherlands. Lloyds Register and DNV are the only class societies authorised to certify pilots against the ISPO which is a relatively new safety and quality standard based on the ISM code and the ISO standard.</p> <p>A poster on the vessels bridge shows the master or first officer the optimum trims* they can use in varying sea and weather conditions on a voyage in some cases reducing fuel costs by up to 8%. The concept was achieved using a Computational Fluid Dynamics (CFD) system instead of the traditional, and more expensive, method of model and test tank trials. You can find out more about Lloyds Registers trim optimisation and other CFD-based fuel saving services from Dejan Radosavljevic (dejan.radosavljevic@lr.org) * Every ship has an optimum trim which usually stems from its draught and speed</p> <p>Dragging ships into saving fuelA joint project between Lloyds Registers UK &amp; Ireland Marine Business Team and our Technical Investigation Department (TID) has achieved considerable fuel savings for a London/Greek client. The team used Computational Fluid Dynamics (CFD) to model the air flow and assess wind drag on a 95,000 dwt bulk carrier. The tests included examining the effect of adding fairings and repositioning deckhouse appendages. The test findings showed that large reductions in wind drag of up to 20% were possible by attaching well-designed fairings to the ship and altering appendages on the deckhouse and funnel. This equated to an estimated fuel saving of 2.5% when sailing at 14 knots into a 22-knot headwind. Smaller, but still significant, fuel reductions were also estimated for lower wind speeds. We have since repeated the study on a 59,000 dwt bulk carrier. This achieved a similar fuel consumption reduction and showed that by applying the same techniques to classic bulk carrier designs there was potential for consistent fuel savings and a lower overall Energy Efficiency Design Index (EEDI) on vessels of the future. For further information contact TID@lr.org.</p> <p>Ross Brawn was owner of the Brawn team that won the F1 constructors and drivers championship in 2009. The Lloyds Register team made just over 28,000 and was cited for finding innovative ways of reaching new audiences for the RNLI. The Brawn Challenge raised a total of 360,000 for a new Thames lifeboat.</p> <p>The ISPO is a relatively new safety and quality standard based on the ISM code and the ISO standard</p> <p>Power talkAn animated talk on the challenges owners, operators and legislators face on ECA compliance was given by Peter Catchpole, Lloyds Registers Marine Environmental Services Manager, at the Green Ship Technology conference in Oslo from March 2123. In a highly attended breakfast briefing session, Vince Jenkins and Tim Walters, Lloyds Registers Marine Risk Adviser and FOBAS Product Manager respectively, discussed the merits of alternative energy sources ranging from fuel cells, LNG and biofuels to nuclear, wind-farm and solar energy.</p> <p>Shipping and the environmentThe latest edition of Lloyds Registers Shipping and the environment publication is out now. Read about the regulatory and commercial factors driving environmental change in todays Marine industry and the key operational and technical solutions. You can also find out how we and our clients are responding to these challenges, through research, technology development and involvement in emerging legislation.</p> <p>The certification development is carried out from our Rotterdam office and ISM/ISPO auditors can carry out the audits with very little extra training. The recent audit was used to help train Lloyds Registers Trinidad surveyor Wendel George.</p> <p> For further...</p>