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In this issue we look at Environmental challenges. Also inside: DNV Triple-E, A.P Moller-Maersk, Ulstein Group, Rolls Royce Marine, Farstad and small scale LNG.

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Date: 25 June 2009

Environmental Performance… An Urgent Challenge

Most experts believe that human activities are contributing to global warming and rapid climatic changes. Although marine transportation is quite energy- efficient in terms of ton/mile performance compared to other modes of transportation, shipping is now facing a new reality: media, politicians and the public at large are increasingly focusing on environmental issues. Carbon emissions which contribute to global warming are in the spotlight in particular. The public, the media and regulators are demanding action and companies’ corporate social responsibility is being put to the test.

Climate change regulations – background and update

International shipping emitted an estimated 870 million tonnes of CO2 in 20071, which amounts to some 2.7% of the global CO2 emissions of 32 billion tonnes in 2007. To put this figure into perspective, if shipping was a country, it would rank amongst the world’s top ten CO2 emitters, ahead of countries such as the UK and Canada.

Environmental Performance and the Future

Although shipping is generally seen as a fuel efficient and ‘carbon friendly’ mode of transport, the industry is facing increasing pressure from regulators to improve its overall environmental performance – with particular focus on emissions to air. Therefore, new global regulations and regional schemes like Emission Control Areas (ECAs) will no doubt have a significant impact on emissions from shipping in the years to come. Sulfur ECAs are already in force in the Baltic Sea and North Sea areas, but new areas are likely to be defined in the near future.

DNV Triple-E - Environmental & Energy Efficiency Rating Schemes

DNV has identified the demand for an environmental performance rating for ships. Such rating needs have in particular been requested lately by cargo owners as a response to end consumers who are now increasingly demanding a carbon footprint ‘green tag’ that includes factual and reliable information showing the actual green house gas record for the various steps from production through the transportation chain to the retailer. This applies to most consumer goods from food and beverages to electronics, cars, components for house construction as well as bulk cargoes etc.

DNV Triple-E

Environmental & Energy Efficiency Rating Scheme

An Owner’s View: A.P. Moller-Maersk

A.P. Moller-Maersk takes their environmental responsibility seriously. Optimization on bunkers through technical and operational means means savings in fuel costs that are good for the environment and for the bottom line. “It’s healthy for the business and it’s the right thing to do. We have a leadership obligation to push ourselves to reduce emissions in general,” says Søren Stig, Senior Director of Maersk Line’s Sustainability Department.

View from a Maritime Authority

The Danish Maritime Authority has put forward a proposal for the establishment of an international fund for greenhouse emissions from ships to the upcoming IMO Maritime Environment Protection Committee (MEPC) 59 meeting.

The Clean Shipping Awards

In cooperation with DNV, Nor-Shipping has this year established the Clean Shipping Awards, which will be given together with the Heyerdahl Award at the week-long event. In establishing these new Clean Shipping awards, we recognize that shipping must provide some answers to its own environmental challenges.

Norwegian Maritime Cluster Breaks Waves

It’s said that necessity is the mother of invention and Norway, with its challenging weather conditions and harsh climate, has, by necessity, been an innovator on the maritime front since viking times. More specifically, the west coast region of Møre, which has the official designation of Norwegian Centre of Expertise – Maritime, with its 12 design companies, 17 shipowners, 13 shipyards and 161 equipment suppliers employing 21,000 dedicated employees is home to one ofthe most dynamic, innovative maritime clusters in the world.

A Story of Innovation – Ulstein’s X-Bow®

With its distinctive and unusual hull design, the Ulstein X-Bow® makes a lasting impression. When you factor in the added stability and crew comfort it affords, along with up to 15% savings in fuel consumption under certainworking conditions, it’s downright innovative.

Holistic Innovation

Rolls-Royce Marine believes in a holistic approach to innovation.

Farstad Shipping

Farstad Shipping is one of the major global players in the upper egment of offshore support vessels. They operate 29 AHTS and 24 PSV, plus one OCV. (We also have four large AH new builds UT731CD for delivery from this June until April 2010)They are also one of the leading companies in the Norwegian Maritime Center of Expertise in Møre.

Samson Goes Ploughing

Far Samson is a powerful new offshore vessel designed and equipped by Rolls-Royce now being put into service by Farstad Shipping of Norway.

Small Scale LNG: An Overview

Since the early development of marine LNG transportation more than five decades ago, LNG has largely been supplied to big electric power stations and gas grids in densely populated areas.

Guideline for the lay-up of ships

During the major lay-ups in the shipping industry in the 1970s and 1980s, DNV was instrumental in setting the standard for the safe and cost-optimal lay-up and preservation of ships. Due to the financial crisis and economic slowdown, this knowledge and experience are once again sought after, and the guideline has now undergone a complete revision based on the technical developments in shipping over the past two to three decades.

Environmentally sound ship recycling

The bulk carrier industry has been seriously affected by the current recession in the world economy, and most operators are now facing a market where the capacity outweighs the demand.

Optimized Hull Forms and Propeller Designs

Computational Fluid Dynamic (CFD) tools can be used in combination with model tests to minimize hull resistance, improve propeller efficiency and interaction with the hull, reduce the required power, improve fuel efficiency and ultimately mitigate the environmental impact from shipping.

Cost-benefit assessment of Energy Efficiency

The ability to compete effectively is a crucial issue for any shipping company at any point in time. Recently, we have seen fuel prices rise to record high levels, and even following the recent plunge fuel will remain a significant cost element. Also, with emission reductions high on the international agenda, fuel and energy efficiency should receive additional focus from ship designers and operators.

Concentrated Inspection Campaign (CIC) on Lifeboat Launching Arrangements

PARIS MOU & TOKYO MOU Port State Control regimes will be conducting a Concentrated Inspection Campaign (CIC) for SOLAS Chapter III – Lifesaving Appliances and Arrangements. The focus will be on Lifeboats, the launching arrangements, including the crew’s knowledge of operating the equipment, drills, inspections and maintenance. It is expected that other MOUs may participate as well.

Support from DNV: Port State Control Tool Kit

Performance in port state inspections continues to offer a benchmark towards the quality of both a vessel, and the owner, which both have the charterers’ attention. With the oversupply of tonnage in the market, this becomes even more important for bulk carrier owners.

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