Maritime update 1-2013

efficiency through teCHNOLOGY CHOiCeS

safety first. aLWaYS

improving DP traiNiNG aND CertiFiCatiON

maritime update

NeWS FrOm DNV tO tHe maritime iNDUStrY

taNker

Bulk

cONtaiNer

OFFshOre

cruise

No 01 2013

Ferry

ON tOP OF SaFetY aND eNVirONmeNtaL reGULatiONS FaktaBOks Harunto mo est que si adignim fugit quatempos expera doluptam sum alitat aut hit voluptas accum ium estrum faciist, omnistrum enimpossi aut esenim dis excerum eum vendisc iantis conse pro bla que di nonseru ptiist fuga. menditiist, volorestio essit, se lant velibusdam siti quamet arcillate est moluptas ut aut officabor magnihi

Navn Navnesen, navn.navnesen@dnv.com

contents

maritime update We welcome your thoughts! maritime UPDATE is a newsletter published by Det Norske Veritas AS.

Front cover ©Getty Images

© Det Norske Veritas AS

DNV insight

Tanker

Bulk

Efficiency through technology choices........................................... 4 Next-generation environmental requirements – 2020 and beyond.............................................................................. 8 Safety first. Always............................................................................ 9 Maritime Labour Convention contributes to meeting safety goals....................................................................... 10 DNV launches fire safety awareness campaign.............................. 11 Improving DP training and certification....................................... 12 Managing integrated software dependent systems – the offshore industry shows how................................................... 13 DNV’s Port State Control Tool Kit goes mobile........................... 14

Please direct any enquiries to your nearest DNV station or maritime update e-mail: updates@dnv.com

Shuttle tanker operator succeeds through safety and environmental focus............................................................... 16 Shuttle tankers – not like other tankers........................................ 18 The North Sea – a full-scale test lab for structural fatigue .......... 19

Online edition of maritime update: www.dnv.com/maritimeupdate

Making its mark – the first Seahorse 35 turns two........................ 20 Making sense of fuel efficiency...................................................... 22 Green Dolphin 38 ......................................................................... 23

Container

New bulb reduces fuel consumption............................................. 24 DSEC engineers bulbous bow for refitting.................................... 26 HMM saves fuel by going green.................................................... 27

Offshore

Battery and hybrid propulsion – viable for ships.......................... 28 Joint industry project addresses energy efficiency investments.... 30

Cruise

Maritime Excellence...................................................................... 32

Ferry

US breakthrough on LNG............................................................. 34

2 | maritime UPDATE NO. 1 2013

Editorial committee: Cathrine Torp Per Wiggo Richardsen Ole Vidar Nilsen Editor: Magne A. Røe Co-editor: Marianne Wennesland

Design and layout: Coormedia.com 1305-001

DNV (Det Norske Veritas AS) NO-1322 Høvik, Norway Tel: +47 67 57 99 00 An updated list of all regional offices can be seen on DNV’s website: www.dnv.com

eDitOrial

Dear reaDer,

tor e. svensen President, DNV maritime and Oil & Gas Tor.E.Svensen@dnv.com

I’m pleased to introduce to you the first issue of DNV Maritime Update, a magazine that will focus on safety, regulations, the environment, technologies and other key issues for the global shipping industry.

We have chosen to focus on two main topics that you can explore on the next few pages in addition to the more ship-specific materials: environmental regulations and safety.

HOW tO aDaPt tO COmiNG eNVirONmeNtaL reGULatiONS is in focus

because we are rapidly moving towards tighter

ECA requirements as well as other new regulations.

The EEDI is already in force for new ships, with the clear aim of forcing improvements in energy efficiency, and IMO is amending the MARPOL regulations.

It’s not easy to steer the right course and regulatory foresight is key to making the right choices today in order to ensure competitive solutions in the future.

We’ve challenged our experts to extract the important points for you.

Fuel efficiency and alternative fuel sources such as LNG and batteries are important elements here.

The articles give you a good overview of what is happening now and our experts’ best guidance towards 2020 and beyond.

SaFetY iN SHiPPiNG is at

the core of our global activities and this is the second major theme of this issue, with topics ranging from fire safety to software safety and integrity. The overall safety in shipping is good but, with an average of three groundings worldwide per day and collisions and groundings combined accounting for most of the accidents and serious incidents in shipping, there is room

for improvement. Striving for improved safety is a never-ending journey for us at DNV and the focus on safety culture and the human element is paramount in this respect.

This issue of the Maritime Update is our Nor-Shipping issue. For DNV, NorShipping is an excellent meeting place for professionals in the maritime industry. I would therefore like to introduce you to a series of seminars and other events at NorShipping 2013 that I hope you will find interesting – please see the back cover of this magazine for an overview and information.

Read Maritime update on your tablet!

To view this update in PDF format on your tablet, scan the QR code or go to www.dnv.com and download the PDF manually.

www.dnv.com

maritime UPDate NO. 1 2013 |

3

DNV iNsight

Efficiency through technology choices the global shipping community is entering a challenging future, as both demands for economic results and the upcoming environmental requirements will change shipping and lead to significantly cleaner and more efficient operations. this is driving innovation as the need for efficiency is creating new solutions. We have challenged our experts to provide input on technology choices, fuel solutions, eCa compliance and other regulatory issues brought forward by the imO and governments worldwide. in this complex picture, making the right choices for both new and current ships is essential and a main topic of this issue of maritime Update. this article consists of three parts: eCa implementation, alternative fuels and future innovative solutions. in addition, there is a related article on batteries for ship propulsion on page 28–29.

ECA ECA ECA ECA ECA

Existing

››

the eCas for the North Sea and the Baltic Sea are currently adopted for SOx and Pm. the eCas for North america and US Caribbean are currently adopted for SOx, The ECAs for North Sea and Baltic Sea are currently adopted for SOx and PM. The ECAs for North America and US Caribbean are currently adopted both for SOx, PM and NOx Pm and NOx. in eCas the SOx/Pm requirement is currently a 1% sulphur cap on fuels, and from 2015 a 0,1% cap (scrubbers allowed as an alternative). the NOx n ECAs the SOx/PM requirement is currently a 1%to sulphur fuels, and 20151 aJanuary 0,1% cap (scrubbers allowed as an alternative). The NOx requirement is an emission level equal to Tier requirement is an emission level equal tier iiicap for on ships built onfrom or after 2016.

II for ships built on or after 1 January 2016

4 | maritime UPDate NO. 1 2013

DNV iNsight

Cumulative Total Cost (USD) compared to baseline with HFO, LSHFO and MGO GLOBAL CAP: 4.5% S

$20

Sulphur content

4.0

Real costs (2012 USD million)

5.0

3.5% S A review in 2018 may conclude that the 0.5 limit should be postponed to 2025

3.0

Average sulphur content today

2.0 (S)ECA CAP: 1.5% S

1.0% S

1.0

0.5% S 0.1% S

0.0

2005

2010

2015

2020

››

marPOL SOx regulations

plaNNiNg FOr eca implemeNtatiON TExT: oCÉane baLLand AND haraLd gundersen, DNV

Those operating in dedicated Emission Control Areas (ECA) from 2015 have mainly three choices: switch to low sulphur (0.1%) fuel oil, install a scrubber or convert to LNG. Each of these options comes with its own set of risks, thus making investment decisions difficult. The solution that appears to be the cheapest investment may turn out to be the most expensive one in the long run. In order to remain competitive in the market, it is crucial to make the right choice.

The ECA requirements will affect trade in large parts of Europe as well as the United States and Canada, and some 40 per cent of the world fleet enter these areas during a year, with half spending more than five per cent of their time in these waters. ECA requirements are also being considered in several other areas globally

2025

$15

Fuel switch

$10 LNG high price Scrubber

$5 $0 2015

Baseline (LSHFO and MGO)

2020

2025

LNG reference price

2030

$–5

››

One example of a financial comparison of the different options for a small container vessel

and this means that ECA requirements must be part of your planning. From 2016, all new ships must comply with the Tier III NOx requirements when operating in the North American/US Caribbean ECA and this requirement is almost certain to be extended to the Baltic Sea and North Sea ECAs as well.

Scrubbers allow for the use of high sulphur fuel and there are no availability concerns as to fuel. A scrubber requires significant space and investment costs and will not comply with future NOx requirements.

LNG has been used as a marine fuel since 2001 and 38 LNG-fuelled ships are in operation worldwide, with about 30 in the order books. LNG meets the future ECA SOx limits, helps meeting EEDI requirements and can comply with ECA NOx regulations, but requires significant investment and extra space on board for LNG tanks. The main concerns include LNG bunkering availability and the price of LNG. Low sulphur fuel oils are a well proven and tested solution, but both price and

supply capacity sufficient to meet a sudden increase in demand may be issues if this becomes the preferred solution. In addition, they will not help meet the NOx regulations.

DNV has developed a decision support tool that assesses the financial attractiveness and technical feasibility of the available ECA compliance measures. It can be applied to specific ships and operational patterns. The right option will depend on the ship owner’s time horizon – a wrong technical choice may be severely detrimental to competitiveness. The DNV ECA decision support tool includes: Analysis of the technical feasibility of available options, operational aspects and related risks ■■ Fuel consumption estimates for each option based on the ship’s operational profile ■■ High-level financial analysis, including a CAPEx, OPEx, payback-time and sensitivity analysis for critical input parameters such as fuel price scenarios £ ■■

maritime UPDate NO. 1 2013 |

5

DNV insight

Alternative fuels for shipping Text: Christos Chryssakis, DNV

on the fuel. In principle, existing diesel engines can run on biodiesel blends.

Potential problems include fuel instability, corrosion, susceptibility to microbial growth in long-term storage, adverse effects on piping and instrumentation and poor cold-flow properties. Most of these problems can be solved, and testing on board ships is carried out to resolve the remaining issues. The widespread use of alternative fuels in shipping will depend on cost, incentives and availability in sufficient volumes. £

© Hurtigruten/Jostein Dahl Gjelsvik

DNV Research & Innovation is invest­ igating a number of alternative fuels that are available today or are expected to be ­available in the near future. The most promising alternative today is LNG, but a number of other fuels, such as biodiesel, LPG, DiMethylEther (DME) and ­methanol, may become part of the fuel

mix in the future and can also be used to comply with sulphur regulations in an ECA. Biodiesel can be used in existing marine engines, while the other fuel solutions can be used in dual fuel engines.

Here, typically a pilot fuel oil injection is used for ignition at engine loads of over 25 per cent. At low engine loads, fuel oil is used.

In biofuel operations, SOx emissions are eliminated and particulate matter emissions are significantly reduced, while NOx emissions can also be reduced depending

››

Demands for economic results and the upcoming environmental requirements will change shipping and lead to significantly cleaner and more efficient operations.

Innovation and adaption of new solutions Text: Tore Longva, DNV

DNV has highlighted six key areas that offer significant potential for innovation and we believe these will be at the core of R&D in the next ten years.

6 | maritime UPDATE NO. 1 2013

The low-energy ship Multifunctional ship types and/or technological advances in drag reduction, propulsion and materials are expected to support new ship concepts. Significant efforts have been put into creating energy-efficient ships over the past couple of years, and further progress will be achieved between now and 2020.

The green-fuelled ship Reductions in the permitted emission levels

of SOx, NOx and particulate matters will result in the use of cleaner energy sources. Abatement technologies such as exhaust gas recirculation, scrubbers and catalytic reduction as well as the use of LNG and biofuels will be further exploited.

The electric ship “The Prius of the Sea” could contain diesel-electric configurations, marine fuel cells, battery

© DNV/Magne A. Røe

DNV insight

››

From left: Tore Longva (DNV International Regulatory Affairs), Harald Gundersen (DNV Maritime Advisory), Océane Balland (DNV Maritime Advisory), Christos Chryssakis (DNV Research & Innovation) and Eirik Nyhus (Environmental Director).

packages, solar panels or retractable wind turbines, and superconducting motors.

Such complex powering systems will require energy production to be designed, operated and controlled in an integrated manner.

The digital ship “E-navigation” is not new to shipping and by 2020 most of the fleet will have installed such systems. The onboard electronic charts will become the unifying platform on the digital ship, and will also integrate security, navigation risks, port entry information, weather routing and similar needs.

The Arctic ship Increases in Arctic ship traffic over the next decade will lead to the faster development of Arctic-related technologies. These include ice-route optimisation software, hull-load monitoring systems and maybe the introduction of new ice-breaking concepts.

The virtual ship In order to manage the risks inherent in innovative solutions, there will be wide use of model-based techniques for assessing novel concepts and technologies. These include assessments of the ship’s technical and economic performance from a life cycle perspective. £

Océane Balland, Oceane.Balland@dnv.com Harald Gundersen, Harald.Gundersen@dnv.com Christos Chryssakis, Christos.Chryssakis@dnv.com Tore Longva, Tore.Longva@dnv.com Eirik Nyhus, Eirik.Nyhus@dnv.com

maritime UPDATE NO. 1 2013 |

7

DNV insight

The maritime industry will face ever increasing requirements for safety, security, environmental and efficiency performance beyond 2020. Towards 2030, issues such as recycling, black carbon/particulate matter, underwater noise and bio-fouling may become part of mandatory requirements, in addition to stricter GHG emissions regulations. Local and regional regulations make it increasingly complicated for ship owners to ensure compliance.

Text: Tore Longva, Eirik Nyhus and Kjersti Aalbu, DNV

››

Black carbon emissions (soot) from shipping is a likely accelerator of Arctic ice melting.

The global 0.5% sulphur cap will enter into force in 2020 or 2025, depending on an IMO decision in 2018.

Local and regional initiatives can complicate the regulatory landscape and operator considerations, in particular if the adopted standards and enforcement differ from region to region.

■■ Black carbon emissions (soot) from shipping are increasingly being recognised as a significant contributor to global warming and a likely accelerator of Arctic ice melting. Regulatory actions are likely by 2030.

■■ Hull bio-fouling is recognised as a major transport pathway for alien species. IMO has developed voluntary guidelines which could lead to regulations over the next 10–15 years.

■■

8 | maritime UPDATE NO. 1 2013

■■

■■

■■

Underwater noise has received additional attention in recent years due to its possible impact on ocean-dwelling mammals. A regulatory proposal can be expected by 2020 at the earliest.

The Hong Kong Convention on Ship Recycling may enter into force within the next decade. However, the standards outlined in the Convention are likely to be upheld by parts of the industry even without ratification.

Greenhouse gas emissions from international shipping have grown steadily over the past few years due to the general increase in traffic.

A monitoring, reporting and verification scheme will be developed and after 2020 this may lead to further GHG reduction requirements. £

Tore Longva, Tore.Longva@dnv.com

Kjersti Aalbu, Kjersti.Aalbu@dnv.com

Eirik Nyhus, Eirik.Nyhus@dnv.com

© Getty Images/Jason Edwards

Next-generation environmental requirements – 2020 and beyond

DNV iNsight

© teekay Corporation

Safety first. Always

in recent years, the downturn in major shipping markets – such as bulk, tanker and, in particular, the container market – has taken some of the focus away from “Safety First”.

For us in DNV safety is always a top priority and the industry cannot afford to lose sight of this key element in global ship operations. What are the trends in international shipping and safety performance? Fewer incidents, but graver consequences, or is it vice versa?

TExT: oLe vidar niLsen, DNV

In general, maritime safety has steadily improved since 2010, yet the frequency of serious accidents is still about twice as high as that experienced during the 1994–2002 period. In other words, you are on average twice as likely to have a serious accident today compared to some ten years ago. So even though the trend has been positive for the past couple of years, there is still some way to go.

The industry can do even more to further improve its safety performance, for example by focusing on risk identification and measures for high-consequence incidents. In addition, more attention should

be paid to the human factor and its importance for maritime safety.

In this issue of DNV’s Maritime Update we have chosen to focus on some areas of particular interest, all related to maritime safety: ■■ Maritime Labour Convention – will it lead to improved safety performance?

■■ Fire safety – with 60 per cent of major fire incidents starting in the engine room, this is an area which requires more attention. How to do it?

■■ DP competence – will an enhanced standard for the operation of DP systems lead to better safety performance?

■■

The ever-increasing amount of onboard software and complex systems: Will they make shipping safer at the end of the day? £

Ole Vidar Nilsen, ole.vidar.nilsen@dnv.com

maritime UPDate NO. 1 2013 |

9

DNV iNsight

© DNV/marianne Wennesland

Maritime Labour Convention contributes to meeting safety goals

a date to remember: On 20 august 2013, the maritime Labour Convention (mLC) 2006 enters into force. it will be the ‘fourth pillar’ of the international conventions covering shipping, and is expected to improve safety and make the maritime career path more attrractive.

TExT: georg smefjeLL, DNV

››

enhanced working and living conditions for the individual seafarer are expected to lead to more competent people at sea, and make the maritime career path more attractive.

While the industry has for many years struggled to recruit, motivate, develop and retain competent people, in most, if not all segments, the Maritime Labour Convention (MLC) is expected to improve on all these factors. Enhanced working and living conditions for the individual seafarer are also expected to lead to more competent people at sea, and make the maritime career path more attractive. Having competent people with experience of working and living aboard ship is crucial for the whole maritime cluster, and not having them is in itself a major safety hazard.

So, will the MLC lead to an improved safety performance for international

10 | maritime UPDate NO. 1 2013

shipping? We hope so – and we believe so.

The MLC requirements are detailed, and cover a wide variety of issues within the term “working and living conditions”.

Many of the requirements, and especially the industry’s solutions to them, should help raise safety levels for shipping, such as: ■■ Hours of work and rest ■■ Training and qualification of cooks and non-traditional seafarers ■■ Revised standards for staffing levels, taking into consideration operational elements and concerns about fatigue ■■ Standards for noise, vibration and ambient factors

■■ ■■

Medical care on board and ashore Standards for health, safety and accident prevention

Also, and not to be ignored, we also believe that a more respected crew is a safer crew. £

georg smefjell, georg.smefjell@dnv.com

DNV iNsight

››

DNV launches fire safety awareness campaign

© the U.S. Navy

most fuel oils, lubrication oils and other flammable oils have an auto-ignition point above 220°C. if a leakage hits a surface hotter than its auto-ignition temperature, the liquid may ignite spontaneously.

every year fires on board ships lead to casualties and severe damage to vessels and equipment. an evaluation by DNV has identified that approximately 60 per cent of fires start in the engine room. this is why DNV now is launching a Fire Safety awareness Campaign to raise awareness and knowledge about the many risks. the 2013 campaign will result in a number of initiatives.

TExT: tuva fLagstad-andersen, DNV

hotter than its auto-ignition temperature, the liquid may ignite spontaneously.

Identifying and removing hotspots is therefore considered an important factor in fire prevention.

Feedback from DNV surveyors shows that missing/deteriorated insulation is still a common finding during surveys. £

››

DNV estimates that more than 50 per cent of all incidents in the engine room originate from oil leakages/spray on hot surfaces. insulation of hot surfaces as well as the screening/ shielding of potential leakage areas are top priorities.

© DNV

Oil hitting hot surfaces is by far the most common reason for engine-room fires, and DNV estimates that more than 50 per cent of all incidents in the engine room originate from oil leakages/spray on hot surfaces. Other main contributors to the fire and explosion risk are excessive blow-by, causing scavenging-space fires or crankcase explosions and hot-running of bearings.

Based on this DNV has identified the insulation of hot surfaces as well as the screening/shielding of potential leakage areas as main priorities for improvement.

Additionally, maintenance and proper cleanliness in the engine room are important in reducing the risk of fire.

Most fuel oils, lubrication oils and other flammable oils have an auto-ignition point above 220°C. If a leakage hits a surface

tuva Flagstad andersen, tuva.Flagstad.andersen@dnv.com

maritime UPDate NO. 1 2013 |

11

DNV insight

Improving DP training and certification Most marine incidents are related to human error and should be the starting point for proactive competence management activities. Technology, rules and compliance will never bring us to the expected level of safety if we do not focus more strongly on the human element. For the first time, in the new 2010 amendments to the Standards of Training, Certification and Watchkeeping for Seafarers (STCW), guidelines for dynamic positioning operations are stated. This indicates that regulatory bodies and the industry are raising safety levels for dynamic positioning operators.

Text: Aksel Nordholm and David Wendel, DNV

Over the years, DNV SeaSkill™ has developed applicable competence standards to cover dynamic positioning (DP) and other areas, and it certifies management systems, courses and simulators on an individual basis.

In order to develop and implement a new dynamic positioning operations certification system, a pilot project was established in conjunction with the Ship Modelling and Simulation Centre (SMSC) in Trondheim, Norway. As a result, a new Test Centre for Certification of Personnel standard was developed for the award of a

DNV Approved DP Test Centre certificate that permits the approved test centre to issue DP operator certificates.

DP operator candidates must undergo a theoretical examination and a practical assessment in order to obtain their certificates. An assessor qualified in accordance with the STCW “In Service Assessment Programme” is responsible for the final examination before issuing a DP operator certificate.

The DP operator certificate will be issued with an endorsement showing the type of operation a DP operator is

qualified to perform (shuttle tankers, supply, diving support, cabling, etc).

In June 2012, DNV’s new DP operator certification concept was recognised by the Norwegian Maritime Authority, which considers the concept to be equivalent to the recognised international s­ tandard. The Norwegian Maritime Authority requirement is fulfilled when a person holds a valid DNV DP operator certificate.

Since June 2012, more flag states and industry organisations have recognised the DNV DP operator certificate. £

‹‹

© Ship Modelling & Simulation Centre AS, SMSC AS

A DNV Class A DP simulator in accordance with standard 2.14 is a requirement for obtaining test centre certification.

12 | maritime UPDATE NO. 1 2013

Aksel Nordholm, Aksel.Nordholm@dnv.com

David Wendel, David.Wendel@dnv.com

DNV iNsight

››

© DNV/Knut Vadseth

the supply vessel fleet, often operating close to offshore units in challenging weather conditions, has been pioneers in applying services like HiL testing for DP and PmS systems.

Managing integrated software dependent systems – the offshore industry shows how Challenges related to software and integration are not an offshore-specific problem, and the maritime industry may also have a lot to learn from offshore standards for integrated Software Dependent Systems (iSDS). For years the offshore industry has seen the need to properly address software in integrated systems and their interfaces. Based on continuous dialogues with owners, yards and suppliers, DNV’s offshore standard OS-D203 has recently been revised to better serve a growing market.

TExT: knut svein ording, DNV

The offshore industry and DNV have addressed problems related to the availability and reliability of integrated software dependent systems. The ISDS service provides a systematic way of working that promotes practices proven effective in other industries. It is a process model describing best management and technical practices for software development and systems integration. In addition to safety, which is the common focus for most standards, ISDS services also address Reliability, Availability and Maintainability.

There are many studies and examples of how poor software quality has caused delays in newbuilding projects, operational non-productive time and serious accidents.

Statistical data from the offshore industry show, for instance, that owners have much higher expectations with regard to the availability of key systems than is currently being offered by the suppliers.

What about shipping? The need to address software within the maritime industry has already been demonstrated in the offshore supply and shuttle tanker

market, with the Hardware in the Loop (HIL) independent test services. Independent testing is only one key part of the ISDS standard. £

knut svein Ording, knut.svein.Ording@dnv.com

maritime UPDate NO. 1 2013 |

13

DNV insight

DNV’s Port State Control Tool Kit goes mobile Following the success of the Port State Control Tool Kit, currently used by more than 3,500 DNV-classed ships, the new Port State Control app is now ready for launch. Positive feedback from companies, saying the Toolkit has helped improve their PSC performance, inspired DNV to further develop the product.

Text: Yury Ilchenko, DNV

In addition to checklists for typical deficiency areas, DNV wanted to improve the product’s functionality and transfer it to modern platforms, such as smartphones and tablets. The new product has passed field tests and will go on the market from April 2013.

In addition to the checklists, the Port State Control (PSC) app offers users additional functions: taking and marking pictures, typing comments, recording voice notes and attaching files. Saved work can be easily accessed. The application can follow up progress and generate reports, which can be sent to shore directly from the device. It also supports an HDMI interface for connection to a TV or projector, making it a powerful crew training tool.

The PSC app’s features make it the costeffective solution for PSC awareness and expertise among officers and crewmembers alike, preparing ships for flawless PSC inspections. £

Yury Ilchenko, Yury.Ilchenko@dnv.com

14 | maritime UPDATE NO. 1 2013

››

DNV’s Port State Control Tool Kit is currently in use at more than 3,500 DNV ships. The related app is now ready for launch.

Read more about the new PSC app on our website: www.dnv.com/industry/maritime/ servicessolutions/classification/vio/ portstate/mobile_application.asp

© Getty Images

DNV insight

››

Europe’s largest port, The Port of Rotterdam, is operated by the Port of Rotterdam Authority, a government corporation jointly owned by the municipality of Rotterdam and the Dutch State. (Source: Wikipedia)

maritime UPDATE NO. 1 2013 |

15

Tanker

Shuttle tanker operator succeeds through safety and environmental focus Since Knutsen OAS Shipping was awarded its first two offshore loading contracts for the Statfjord and Gullfaks oil fields back in 1984, Knutsen has become an industry frontrunning player through investing in technological, organisational and operational research and development. Being ahead of the world’s increased focus on safety and environmental protection has been paramount to the company’s success. Trygve Seglem, CEO and major shareholder, shares some of his thoughts about the shuttle tanker industry.

© Ett Øyeblikk AS/Ingarth Skjæstad

Text: Brynjulf Freberg, Freelance Journalist

››

Trygve Seglem, CEO of Knutsen OAS Shipping.

Different ball game Shuttle tankers operate under some of the world’s most challenging weather conditions. Their maritime operations are hence a different ball game to that of ordinary tankers.

16 | maritime UPDATE NO. 1 2013

Advanced machinery, dynamic positioning systems, sophisticated bow-loading systems and strict operating procedures call for highly skilled personnel on board and onshore.

“The vessels are becoming increasingly complex to operate and keeping our highly qualified personnel is challenging, as oil and gas companies are constantly on the lookout for such skilled people.

Maintaining competitiveness in an industry struggling to maintain profitability is not a simple task when one has to comply with new, expensive environmental requirements,” the seasoned shipping executive underlines.

Commercial R&D spin-offs Through Knutsen Technologies, naval architect Trygve Seglem has taken a proactive and commercial approach towards a number of environment-related issues, such as volatile organic compound (VOC) emissions, ballast water contamination and compressed natural gas.

“Norwegian authorities have enforced strict VOC regulations. The first

solutions were complicated and expensive, and we looked for simpler and more ­efficient alternatives. Our KVOC (Knutsen VOC) has become a wellknown brand within the tanker business, and we believe it will eventually set the ­standard for t­ ankers in general. We have also ­introduced KBAL (Knutsen Ballast Water ­Treatment), killing microorganisms in ballast water, which pose a huge ­challenge to the ­environment,” states Seglem.

He continues: “Furthermore, we have developed a new solution for compressed natural gas transport with the proprietary name PNG (pressurised natural gas), together with EUROPIPE GmbH and DNV. As offshore gas production moves to deeper waters with fewer options for pipeline-based distribution structures, we envision a future of shuttle tankers off-loading and distributing pressurised natural gas from offshore positions. This will be a far more environmentally friendly solution than LNG (liquefied natural gas), as the need for energy-consuming gas treatment is minimal.” £

© Knutsen OAS Shipping AS

Tanker

››

The newest addition to the Knutsen fleet, Carmen Knutsen, was delivered on 2 January 2013. Three more shuttle tankers are ordered for delivery this year.

Facts & figures

• Knutsen NYK Offshore Tankers (KNOT) is the second-largest shuttle tanker operator in the world. KNOT is a joint venture between Norwegian-based Knutsen OAS Shipping and Japanese-based Nippon Yusen Kabushiki Kaisha (NYK) and was set up in 2010 following NYK’s acquisition of 50 per cent of Knutsen OAS Shipping’s shuttle tanker fleet.

• Today, KNOT has a fleet of 25 advanced shuttle tankers, including three newbuildings and one floating storage and offloading unit (FSO).

• Its subsidiary, KNOT Offshore Partners LP (KNOP), a master limited partnership, was listed on the New York Stock Exchange in April 2013.

KNOP owns the four newest shuttle tankers in the fleet. KNOP also has the option to acquire all of KNOT’s new shuttle tankers which have a contract lasting for five or more years.

Håkon Skaret, Hakon.Skaret@dnv.com

maritime UPDATE NO. 1 2013 |

17

Tanker

Shuttle tankers – not like other tankers Shuttle tankers are very complex with respect to dynamic positioning capability, bow loading cargo systems and VOC emission control systems. DNV has been an active party in the development of shuttle tankers and has gained considerable insight into and experience of construction, equipment and operations. Currently more than 60 shuttle tankers in operation, roughly 70 per cent of the world fleet, are classed by DNV. Ten more are under construction.

© Knutsen NYK Offshore Tankers

Text: Olav Tveit, DNV

››

In 2002, Knutsen OAS Shipping developed its passive KVOC system for loading, with DNV as its concept verification, testing and installation partner. The system combined with increased tank pressure and small swirl absorption systems, is estimated to reduce emissions by 50–70 per cent with 100 per cent regularity.

Converted at Haugesund Mekaniske Verksted in 1980, Anders Wilhelmsen’s WILNORA became DNV’s first shuttle tanker with side thrusters fore and aft, variable pitch main propellers, bow loading, single point mooring equipment and a forward navigation bridge. As the shuttle tanker demand in the North Sea grew, DNV launched its first Dynamic Positioning Systems (DYNPOS) rules in 1977,

18 | maritime UPDATE NO. 1 2013

rules for Tanker Bow Loading systems in 1985, and rule requirements for STL (Submerged Turret Loading) in 1995. Today dynamically positioned shuttle tankers are common.

The permit regime for reducing emissions of non-methane volatile organic compounds (NMVOC) was implemented in the Norwegian North Sea sector in 2000. Operators were required to reduce

NMVOC emissions by 78 per cent, with an operational vapour recovery regularity of 95 per cent. By 2005, 95 per cent of all crude oil had to be loaded onto vessels with VOC recovery systems. Rapid technology development and concept testing on board DNV-classed ships led to DNV’s class notation VCS-3 in 2000.

High installation and operation costs, significant power requirements and ­regularity problems gave rise to a search for alternatives. In 2002, Knutsen OAS Shipping developed its passive KVOC ­system for loading, with DNV as its ­concept verification, testing and installation ­partner. The North Sea operators’ VOC industry partnership (VOCIC) estimates that KVOC, combined with increased tank pressure and small swirl absorption ­systems, reduces emissions by 50–70 per cent with 100 per cent regularity. In 2010, the ­legislation was changed by implementing a technology-neutral maximum ­emission limit of 0.45 kg NMVOC per ton loaded crude oil per offshore loading point. £

Olav Tveit, Olav.Tveit@dnv.com

taNker

The North Sea – a full-scale test lab for structural fatigue

Fuelled by experience gained in the North Sea, DNV got an early start in developing class notations and calculation methods to assess the fatigue characteristics of ship structures, utilising this harsh-weather area as a full-scale research laboratory. © teekay

TExT: ivar hÅberg, DNV

››

DNV’s in-service follow-up of shuttle tankers operating in the North Sea for decades has given us a unique wealth of knowledge about the fatigue life of ship structures.

dnv fatigue Considerations DNV’s in-service follow-up of shuttle tankers operating in the North Sea for decades has given us a unique wealth of knowledge about the fatigue life of ship structures. Based on important experience gained there, DNV has over the years developed different technical fatigue standards, as specified for various additional class notations. The applicable standard in each case is influenced by the ship’s intended operation. Particularly for shuttle tankers operating in the North Sea, enhanced fatigue standards beyond those required for worldwide operations should be applied.

The notations most commonly used are CSA-FLS and PLUS. These notations provide an increased focus on specific details in critical areas of the ship, and are considered by ship owners and operators as an essential tool to reduce the risk of off-hire and oil pollution. dnv huLL struCturaL strength notations In April 2006, the IACS societies launched new Common Structural Rules (CSR) for the design of Double Hull Oil Tankers with a length of 150 metres and above. These Rules not only introduced a new standard for the hull structural strength of new ships,

but also address structural fatigue life.

For vessels operating in harsh environments, like many shuttle tankers, owners may specify standards beyond those required by the CSR. £

ivar håberg, ivar.haaberg@dnv.com

maritime UPDate NO. 1 2013 |

19

Bulk

Making its mark – the first Seahorse 35 turns two When Dragonera, the first Seahorse 35, hit the seas on 26 August 2011, many representatives from the bulk carrier industry were watching to see if this new, efficient design would live up to expectations. Two years on, owner Falcon Rederi’s Managing Director, Bo Kristensen, can proudly say that the vessel type has offered much more than a reduced fuel bill.

© Damien Devlin, Blue-C

Text: Damien Devlin, Blue-C

››

Bo Kristensen, Managing Director of Falcon Rederi.

In 2008, at a time when designers, owners and yards were pushing the limits of speed and power, Managing Director at Falcon, Bo Kristensen, signed a contract for the first Seahorse 35 – a vessel that balanced power with energy efficiency. This was the result of two years of collaboration between Falcon and Michael Schmidt, lead designer for the Seahorse 35, and owner of Schmidt Maritime for which DNV was selected as class.

20 | maritime UPDATE NO. 1 2013

Fast-forward to 2013, and how things have changed The combination of high fuel prices, low chartering rates and environmental regulations, such as the Energy Efficiency Design Index (EEDI), means that efficiency, not speed, is now the name of the game. Dragonera hit the water at a time when the dry bulk market was very challenging and competition intense. However, it is thriving in this environment, and according to Kristensen, Dragonera, along with its sister ship, Cabrera, has given Falcon an edge over its competition.

“Dry bulk is a price-driven market,” he says, “where charterers often enter into contracts with owners that offer the lowest price. We have found that a more efficient ship does not necessarily attract a higher rate, but it does enable us to offer a competitive rate, and still turn a profit,” he explains.

The ability to compete on price and flexibility has allowed Falcon to stay independent in a market that is experiencing much consolidation.

Kristensen and Schmidt began refining the basic Seahorse 35 design back in 2006.

Their different perspectives were the basis for a successful partnership – Schmidt, on the one hand, with his in-depth technical knowledge and Kristensen’s, on the other, with his focus on building a vessel that

fulfilled many commercial requirements.

“Falcon’s experience with the Seahorse 35 is very interesting in the on-going debate around fuel efficiency and ecodesigns,” comments Michael Aasland, DNV Business Director for Bulk Carriers.

“DNV is proud to have classed the largest share of the Seahorse 35s.”

All-round efficiency The Seahorse 35 has many fuel-efficient features, including a slender aft body and highly efficient Stone Marine NPT propeller, which have been proven to reduce fuel oil consumption. A vertical stem design also improves the fuel efficiency in adverse weather conditions. Due to her ice-class, Dragonera is equipped with a powerful main engine output of 7,500 kilowatts, but its efficient design means that the Seahorse 35 satisfies the baseline requirement on the 2013 Energy Efficiency Design Index (EEDI).

Next generation Although both owner and designer are pleased with the Seahorse 35’s performance, they are already working on the next model. The Seahorse 35’s hull performance is near optimal; the biggest improvements can be made through efficiencies in the main engine which, along with new propellers, are expected to deliver a 15 per cent efficiency gain. £

© Damien Devlin, Blue-C

Bulk

››

The Seahorse 35 has many fuel-efficient features, including a slender aft body and a highly efficient Stone Marine NPT propeller, which have been proven to reduce fuel oil consumption.

››

© Damien Devlin, Blue-C

Each of the Seahorse’s four wire-luffing cargo cranes have a 30 metric ton safe working load (SWL).

maritime UPDATE NO. 1 2013 |

21

Bulk

Making sense of fuel efficiency With fuel accounting for roughly 70 per cent of operating costs on today’s bulkers and increased pressure from regulators to reduce harmful emissions, fuel efficiency has emerged as a top industry priority. But with so many options available, making the right investment decision can be a challenge.

© Damien Devlin, Blue-C

Text: Alexander Wardwell, Blue-C

››

Michael Schmidt, the designer behind innovative bulkers such as the Diamond 53 class and the new Seahorse 35. He recommends that owners take a holistic approach to reducing fuel costs and corresponding emissions. He has identified six areas that can make a real difference.

With rising fuel costs eating into margins and more regulations on emissions pending, owners and managers in the bulk segment are actively evaluating different designs and technologies to improve operational efficiency. According to Michael Schmidt, the designer behind innovative bulkers such as the Diamond 53 class and the new Seahorse 35, owners are facing some big investment decisions.

“For newbuildings, owners are looking at new designs, incorporating new hull forms, new engines and new fuel-saving features,” he says. “These new designs will also enable increased operational savings, for example during slow steaming.”

Schmidt recommends that owners take a holistic approach to reducing fuel costs

22 | maritime UPDATE NO. 1 2013

and corresponding emissions. He has identified six areas that can make a real difference: ■■ Designing hull forms for realistic operational profile (speed and draft), including ECO-speed ■■ Tuning engines to fit operational profile ■■ Adopting long stroke, slow-rev main engines which enable more efficient propellers ■■ New highly-efficient propeller designs ■■ Introducing fuel saving devices on hull, propeller and rudder ■■ Operational measures such as route planning, marine coatings, trim optimization and hull and propeller cleaning.

device should be chosen according to the characteristics of the vessel.”

Schmidt adds that another challenge for owners is accurately calculating the fuel oil consumption, which must account for the following variables: ■■ Sea margin (typically 15 per cent sea margin to be included) ■■ Draft/DWT where speed and main engine power is given (design vs. scantling draft) ■■ LCV of fuel (MDO to HFO add six per cent to consumption) ■■ Main engine makers SFOC margin (five per cent to be added if nominal SFOC values are used) ■■ Aux/E consumption at sea ■■ Boiler consumption at sea, if any.

However, selecting a Handysized bulk carrier design is a complex process. “It can be tricky to compare performance of even Finally, Schmidt recommends that ownsimilar designs, as performance figures ers consider using third-party services to such as speed and consumption are often assess and verify fuel-saving measures. “In given on different drafts,” says Schmidt. my view, DNV’s advisory services provide “In our evaluations for a Handysized bulkclear insights into what is available and ers, we calculate two drafts and two speeds offers good information about how differfor each draft, reflecting the variation in ent technologies work and what they can operational drafts and the design and ECO achieve. It is a very good starting point.” £ speed. The largest possible propelFuel consumption at ler should be fitted to achieve the service speed and design draft 1 0,9 best possible propeller efficiency.

0,8 0,7 Fuel consumption at The dimensions of the propeller are Etc. 0,6 service speed and ballast draft 0,5 typically restricted by hull form and 0,4 0,3 main engine revolutions.”

0,2 0,1 0 Only when the optimal hull form and propeller size are determined Fuel consumption at Volume Eco speed and design draft should owners evaluate external fuel saving devices. “It should be noted that highly optimised hull forms and propellers typically result in Deadweight Fuel consumption at Eco speed and ballast draft less efficient fuel-saving devices,” he says. “Furthermore, the fuel-saving Design “A” Design “B” Design “C” Design “D”

Bulk

Green Dolphin 38 – from concept design to orders The new bulk carrier concept design Green Dolphin 38, launched summer 2012, has now been ordered by a number of ship owners at several yards in China. Letters of Intent have also been signed for several more series, indicating that more contracts will follow shortly.

Text: Per Wiggo Richardsen, DNV

Verification The final hull shape was tank tested at HSVA in Hamburg, Germany in December last year. A full matrix of draughts and speeds was tested, and the results of the tank tests showed the very

© HSVA

Orders The concept design has now been ordered by a number of ship owners at several yards in China. Letters of intent have also been signed for several more series, indicating that more contracts will follow shortly.

Two of these ships have already been chartered out to Western Bulk, which is not only a large operator currently controlling over 140 ships, but is also known for applying its analytical and risk-based approach when selecting vessels with superior performance.

© DNV

The Green Dolphin 38 concept design was launched at the prestigious Posidonia event in Greece last summer. The design is a Handysize bulk carrier that fulfils the four main objectives of being Fuel Efficient, Robust and Reliable, Operationally Flexible and able to meet both current and future Environmental Regulations.

The hull was designed by SDARI and DNV to provide superior performance at different draughts and speeds. Through extensive use of Computational Fluid Dynamics (CFD), a hull with very low resistance was designed. When combined with a long-stroke engine and large propeller, the result is an impressively low fuel consumption of 17.7 t/day at 14 knots and only 6.4 t/day at an Eco speed of ten knots.

››

The final hull shape tested at scantling draft 10.5m and service speed 14.0 knots at HSVA, Hamburg.

low wave-making of the hull and verified the resistance and fuel consumption estimates provided by SDARI. “It’s interesting to note that the results of the tank tests at HSVA are very similar to DNV’s CFD calculations, in particular for the design and scantling draft, where the deviations are within an acceptable confidence interval of about 2–3 per cent,” comments Michael Aasland, Business Director for Bulk Carriers in DNV. He adds: “DNV is uniquely positioned to ensure that the ships built to DNV class will perform as intended based on the extensive CFD calculations of the hull

shape. We are also in the process of piloting a new service called DNV’s Build2Design, where we follow up a number of key parameters during construction in order to ensure that hydrodynamic efficiency is as high as designed.” £

Michael Aasland, Michael.Aasland@dnv.com

maritime UPDATE NO. 1 2013 |

23

Container

New bulb reduces fuel consumption Due to changes in the operational speeds of its eight 8,600 TEU vessels, Hyundai Merchant Marine Co., Ltd (HMM) needs improved vessel efficiency.

A Joint Development Project comprising the owner, DNV and DSEC (Daewoo Ship Engineering Company) was initiated to improve fuel efficciency.

The project’s bulb replacement resulted in 4–5 per cent fuel savings.

Text: Serge Schwalenstocker and Hwa Lyong Lee, DNV

Designed for a maximum speed of 27.0 knots, the HMM vessels are operating in the range of 15 to 18 knots.

DNV applied Computational Fluid Dynamics (CFD) to analyse the physical phenomena of the bulbous bow. Further systematic variations in its shape were ­analysed and developed to fine-tune the bulbous bow’s performance. DSEC ­handled the planning and production design. The new bulbous bow was retro­ fitted on the first vessel in February 2013.

2030in operation and The2025 vessel is now back

initial measurements show fuel savings in the range of 4–5 per cent according to HMM. The new design significantly reduced the vessels’ wave-making resistance. The light-condition reductions were some 55 per cent while the loaded-condition reductions were in the area of 15 per cent.

When weighted in relation to the operational profile, the savings amount to a 3.7 per cent resistance reduction, translating to approximately the same reduction in fuel consumption.

The payback time of the nose-job cost is expected to be twelve months, based on CapEx of USD 700,000 and annual fuel savings of almost 1,000 tons HFO. About 180 tons of steel were replaced.

The nose-job was carried out as part of the regular docking schedule for the series at Qingdao Beihai Shipyard in China. No unplanned off-hire was caused.

The bulbous bow modification will be beneficial when operating the vessel at a lower speed than it was originally designed for. £

120% 110%

Draft (m)

Speed (knots)

Relative to initial (%)

Weight (%)

Weighted relative to initial (%)

Loaded

13.5

19.5

–2.3%

60.0%

–1.45

Light

12.5

16.0

–7.6%

30.0%

–2.3%

Max

14.0

22.0

–0.2%

10.0%

0.0%

100%

–3.7%

SUM

100% Wave making resistance

Condition

90%

96%

98%

98%

90%

91%

80%

Results of bulb optimisation showing isolated and weighed impact on hull resistance.

60%

24 | maritime UPDATE NO. 1 2013

92%

89%

89%

85%

65% 58%

50%

54%

52%

55% 45%

40% B1

››

90%

70%

B2

B3

Design iterations

››

88%

B4 Light

B5

B6

Loaded

B7

B8

Final

Original

Wave making resistance for the final eight iterations of the bulbous bow compared to those of the original shape.

cONtaiNer

››

© Hmm

the various bulb profiles evaluated by CFD and the fairing of the bulb form chosen.

››

Bulb replacement on vessel Hyundai Brave during drydocking at Qingdao Beihai Shipyard, China.

serge schwalenstocker, serge.schwalenstocker@dnv.com

hwa lyong lee, hwa.lyong.lee@dnv.com

maritime UPDate NO. 1 2013 |

25

Container

DSEC engineers bulbous bow for refitting The DSME subsidiary DSEC (Daewoo Ship Engineering Company Co. Ltd.) was awarded the detailed design and engineering work related to fitting a new bulbous bow on HMM’s container vessel Hyundai Brave while it was undergoing regular drydocking at Chinese repair yard Qingdao Beihai Shipbuilding.

DSEC President & CEO, Young Man Lee, underlines the importance of planning in such projects.

Text: Brynjulf Freberg, Freelance Journalist and HWA Lyong Lee, DNV

“Careful planning and adherence to deadlines are essential to pull off a major hull part re-fit during regular drydocking,” says Young Man Lee, President & CEO, DSEC.

“The whole project was completed in twelve weeks, including the planning, design development and construction work. Half of this period, six weeks, was consumed by the actual production of the new bow structure. In this case, the owner, yard, classification society and DNV, which had provided the design, all delivered according to tight deadlines.

“Timely deliveries by all parties involved in projects like this are the most important prerequisite for success. Furthermore, the transparent inter-communication mode established by the partners at the very initial stage was vital for the successful

26 | maritime UPDATE NO. 1 2013

“There are two ways to improve performance while lowering speed. One is to reduce the speed only, keeping the existing propeller. In this case, a new propeller is not needed and it is not necessary to derate the M/E. “The other is to increase the propeller diameter to optimise for lower speed and thus reduce the FOC. However, this can only be done if there is enough clearance to accommodate a bigger propeller.

In this case, it will also be interesting to ­derate the M/E in order to adjust the M/E rpm to the new propeller’s features. Such a modification will also lead to associated changes such as modifying the turbo chargers, obtaining Tier II certification and assessment of possible vibration issues.” £

© HMM

››

It is claimed that de-rating the engine and fitting a new design propeller for lower speeds could improve the fuel consumption further.

What is your view on this?

© HMM

© Info DSEC

outcome,” states the DSEC chief. He continues: “Fitting a new part to an existing structure requires a good fit-up with small acceptance tolerances. The hull form is sensitive information usually owned by the shipbuilder. Access to this information at an early stage is crucial not only for the design of the new bulb, but also to ensure a good match between the existing structure and the new bulb.”

››

Bulb replacement on vessel Hyundai Brave during drydocking at Qingdao Beihai Shipyard, China.

Container

HMM saves fuel by going green Hyundai Merchant Marine Co. recently carried out a major hull re-fit by modifying its 8,600 TEU container vessel Hyundai Brave’s bulbous bow. The company’s Executive Vice President, Taeg-gyu Lee, sheds light on the reasons why, and how, this project was carried out.

Text: Brynjulf Freberg, Freelance Journalist and HWA Lyong Lee, DNV

How much do you expect to save on your fuel budget?

“Under current conditions, we expect that fuel savings will be in the range of three to five per cent. However, as operating speeds are expected to be further reduced in the near future, we foresee fuel savings in excess of seven per cent.”

››

“The payback period for the new bulbous bow is expected to be around one year,” says Taeg-gyu Lee, Executive Vice President, Hyundai Merchant Marine Co. Ltd.

Why did you decide to fit a new bulbous bow on an existing large container ship?

“At the moment, container ships are slow steaming, reducing fuel costs to compensate for low freight rates. These vessels are designed for high speed, and slow steaming does not provide the cost efficiency intended. Bulbous bows are relatively easy to modify and their impact on wave resistance, and thus fuel consumption, is significant. DNV and DSEC came up with an applicable solution to our fuel-saving challenges and green-ship initiative.”

“We invested wisely, believing in DNV’s Computational Fluid Dynamics simulations of slow-speed-adapted bulbous bow designs and DSEC’s engineering capabilities. The payback period is expected to be around one year.”

When the market turns, speed may also increase again. Will this solution work out then?

“Increasing the average speed will cause fuel costs to soar. The new bulbous bow will still work, as it is optimised for speeds of 13–22 knots. However, market improvements justifying speeds in excess of 22 knots are not anticipated within the foreseeable future. And CO2 emissions will remain significant high-speed obstacles.”

The converted ship is owned by your company.

Would this also be interesting for ships that you charter for your fleet?

© HMM

© HMM

A major hull re-fit is a significant investment.

How long will your payback period be?

“We will first evaluate and verify the performance of the new bulbous bow, and then make the result available to the chartered ships’ owners. Improving energy efficiency is of the utmost interest to owners and charterers. The ships with poor energy efficiency are expected to be gradually forced out of the charter market.

I believe the owners may have a strong interest in the project and results. We will also provide all kinds of technical support to the owners, utilising our experience and expertise.” £

maritime UPDATE NO. 1 2013 |

27

Offshore

Battery and hybrid propulsion – viable for ships Spurred by the advances in battery technologies and the commercialisation of electric and hybrid cars, the maritime industry is asking itself: Do these propulsion solutions make sense for ships?

Performance benefits, fuel savings and emissions reduction is being weighed against capital investments, practicality, limitations in range and safety. DNV plays a vital role in enabling the safe introduction of large battery packs in ships. With the world’s first class rules for ship propulsion batteries and related projects being brought to life, the company aims to pave the way for battery and hybrid solutions.

Text: Bjørn Johan Vartdal, DNV

As demonstrated by the safety issues experienced by the Boeing Dreamliners, a battery pack can represent a hazardous component unless all safety aspects are properly handled. Through participation in developing the first hybrid offshore supply vessel, Viking Lady, DNV has produced the world’s first class rules for ship propulsion batteries. The rules play a vital role in enabling the safe introduction of battery and hybrid solutions.

Cost benefit The payback time for pure battery and hybrid systems depends on the capital investment as opposed to their operational cost savings. Even if the capital costs related to pure battery or hybrid systems for cars are significantly less than for ships, the payback time may be significantly less for a ship due to the much higher energy requirements. Estimates show that whereas a hybrid car may not pay back the additional investment within its lifetime, a hybrid offshore supply vessel can have a payback period of less than two years. In addition, one pure battery or hybrid ship may contribute to reductions in emissions similar to emissions from thousands of cars. Pure battery or hybrid systems for relevant ship types therefore clearly make sense.

28 | maritime UPDATE NO. 1 2013

Battery propulsion A pure battery ship will be subject to the same range constraints as an electric car, even if space and weight constraints are not as strict. The distance it can travel before the battery needs recharging will therefore be limited, making the availability of charging infrastructure a key factor. Current battery technologies restricted the application to ships operating over short distances between fixed locations. In such conditions, however, it is becoming a reality. As a result of a contest between various technical solutions, organised by the Norwegian Ministry of Transport and Communications and facilitated by DNV, the first pure batterydriven ship, a ferry, will go into operation on the route between Lavik and Oppedal in Sognefjorden, western Norway, in 2015.

The ferry will have access to cheap and renewable electricity at both ports.

Hybrid systems The actual fuel and emissions reduction gained from a hybrid power system depends on the optimisation of its energy production efficiency.

For internal combustion engines, energy efficiencies are normally significantly decreased and the specific emissions increased at low and varying loads. Hybrid power systems avoid operation at these

loads by using the battery as an energy buffer that absorbs the load variations. The benefit of hybrid power systems is therefore closely associated with the operational profile. A car driving in urban areas at low and varying engine loads will have a significantly higher benefit from a hybrid power system than one driving on the highway.

Similarly, these systems will be beneficial on ships when the requirements for power variations are high, while the average power requirements are low. This operating profile is relevant for both tugs and offshore supply vessels. Foss was the first to commission a hybrid tug in 2009. The first hybrid offshore supply vessel, Viking Lady, will be commissioned in 2013. £

Bjørn Johan Vartdal , Bjorn.Johan.Vartdal@dnv.com

© Fjellstrand and Norled, Carolina Adolfsson

offshore

››

© Thomas Førde Aftenbladet

The world’s first ship to run purely on battery power will go into operation on the Norwegian fjord Sognefjorden from 2015. It will probably be built to DNV class.

Shipyard: Fjellstrand. Ship owner: Norled.

››

Battery installation on the world’s first hybrid offshore supply vessel, Viking Lady. Here with Chief Engineer Kjell Ivar Myre. The vessel will be commissioned in 2013 and is classed by DNV.

maritime UPDATE NO. 1 2013 |

29

offshore

Joint industry project addresses energy efficiency investments In a joint industry project called “Energy Efficient Offshore Partners”, seven offshore supply vessel owners and two charterers have been working together with DNV to mitigate barriers to investment in energy efficiency measures. The project is now entering an implementation phase for practical operational changes, giving tangible results for both charterers and owners.

Text: Arnstein Eknes, DNV

The problem of split incentives is well known in the shipping industry. “It is an unusual situation for a business. The ship owners control the initiatives, while the charterers reap their benefits in the form of reduced fuel costs,” explains Knut Ljung­berg, DNV’s project manager.

“A number of specialists from each company have participated in joint workshops on saving energy without compromising on safety, while maintaining the charterer’s expectations with respect to reliable vessel performance. Our role in this has been to seize the outcome of these discussions, and facilitate the development or tuning of relevant tools to support implementation by the participants,” says Ljungberg.

In the first phase of the project, completed in September 2012, several energy efficiency measures and their fuel-saving effects were identified. The second phase included the establishment of best practice guidelines, a communications framework and an incentive scheme to share the financial benefits of reduced fuel consumption.

“As long as charterers pay for the fuel while ship owners are liable for the cost of any onboard modifications, it is essential to have cost-allocation mechanisms in place if potential savings are to be unlocked. With a shared understanding

30 | maritime UPDATE NO. 1 2013

of the costs and benefits associated with energy-saving measures, we have also been able to discuss the principles on which an energy-saving incentive scheme should rest,” says Ljungberg.

The last phase of the project will get underway in June 2013. For a trial period of six months the best practice guidelines, communication framework and incentive scheme will be applied together with the implementation of energy efficiency measures on several ships. A successful outcome of this pilot may result in its establishment as common practice in the industry.

Safe and reliable operations, with high availability, are important targets in the offshore industry. To avoid unplanned downtime or inefficient operation is therefore a key objective for everyone. As Ljung­ berg explains, “The charterer will always have the opportunity to ask for services that are needed to maintain the offshore

Arnstein Eknes, Arnstein.Eknes@dnv.com

mission’s integrity, overriding what is considered the most energy-efficient procedures, and at the expense of higher fuel costs for the vessel. However, even in such situations it is in everyone’s interest that the ship’s crew is empowered to combine the search for optimal performance with a continuous effort to diminish energy consumption on board.” £

Phase III participants Eidesvik, Farstad, Siem Offshore, Havila, Boa Group, Solstad Offshore, Gulf Offshore Norway, Statoil and ConocoPhillips.

Knut Ljungberg, Knut.Ljungberg@dnv.com

© Gulf Offshore Norge AS

offshore

››

© Damien Devlin, Blue-C

The joint industry project Energy Efficient Offshore Partners has generated strong interest in the potential for operational fuel savings. Its outcome may act as a guide to how charterers can use incentives to achieve fuel savings through improved operations.

››

“A framework for communication between charterers and ship owners will contribute to clarity in the exchange of relevant information, ensuring that those responsible can make decisions based on facts. Structured and ad hoc communication intended to improve collaboration is meaningful and stimulating, pushing everyone to achieve more as professionals,” says DNV project manager Knut Ljungberg.

maritime UPDATE NO. 1 2013 |

31

cruise

Maritime Excellence

© DNV/magne a. røe

– a critical success factor for sustainable business performance in the cruise industry

excellence in maritime capabilities is more important than ever. However, we still see very traditional approaches to maintenance and repair, safety and technology innovation. the maritime industry is a traditional industry. However, it is now time to develop and implement strategic changes in order to improve business by putting maritime excellence back on the executive and board agendas and applying industrialisation principles and best practices from other industries.

TExT: heLge hermundsgÅrd AND trond arne sChistad, DNV

››

Safety is a key priority in all marine operations. this includes lifeboat drills for crew and passengers.

Maintenance is often a cost centre in the organisation and is to a large degree subject to strict budget control. Such control is a necessity, but will not alone be a driver for sustainable business improvement.

Maintaining the vessel to the right standard in the most cost-effective way and always ensuring that the vessel can generate revenue are key targets. This includes maintaining technical integrity and keeping the vessel compliant with rules and regulations.

Both small and large companies operate in the same way and shore-based organisations are to a large extent staffed by experienced chief engineers with seagoing experience. If you ask maintenance management employees how they spend most of their time, they will probably say

32 | maritime UPDate NO. 1 2013

firefighting and purely administrative work, and most will acknowledge the need to spend more time scheduling, optimising plans, measuring performance, analysing performance/maintenance data and driving improvement.

Maintenance management requires structured and streamlined processes that allow employees to collect and analyse data. We see that companies which streamline their maintenance process and utilise data across the fleet can significantly improve their maintenance work with respect to cost performance, reliability and compliance with rules and regulations. To succeed in this, there must be teamwork between the experienced chief engineer, analytical maintenance specialist and IT

experts. This is about industrialising the approach. It could be interesting to compare the competence/experience requirements for the senior maintenance managements of land-based infrastructures and of vessels with the same complexity and asset value. You would probably be surprised by the difference.

Maintenance and repair is measured in monetary terms (cost) and is an exact exercise. Actual cost does not necessarily give the right picture. There is a need to include and understand risk exposure and the potential implications of failure when making decisions in this area. It is therefore advisable to use a risk-based philosophy and strategy in the strive for improvement.

Cruise

Safety Safety is a key priority in any marine operation. One challenge is that there will always be other priorities ­battling for attention – and this often ­creates settings where safety is not receiving the attention it deserves and substandard practices are starting to develop and be accepted.

Our experience tells us that it is essential to ensure that the senior management have a true situational awareness, understand the company’s vulnerability and realise that the company is exposed in some major risk areas. An important element in this understanding is also to emotionally connect to the fact that, as an executive of a cruise company, you are responsible for thousands of passengers and employees who trust you with their life. The responsibility for safety performance is a critical element of leadership that cannot be ­delegated. Safety deserves to be among the hot topics from the board of directors and to cascade down in the organisation.

Ensuring safety excellence comes at a cost, and this is the cost of doing business.

A test question about maturity within the safety area is how we treat this cost when we are under financial pressure. Are we maintaining our efforts to get it right or are we cutting back? Cutting back is a very clear signal to the employees that safety is not as important as stated and the culture will gradually be degraded.

Another key element to get right is how employees are rewarded and promoted.

What we find is that wrong behaviour is rewarded if it has a short-term financial gain and right behaviour is punished if it has a short-term negative financial impact.

Managing safety is a key leadership challenge, it comes at a cost and it needs to be reflected in all we do.

Technology innovation There are still significant technology opportunities in the cruise industry. There are challenges ahead that will have a major impact on profitability and sustainable business performance.

Many cruise companies, and shipping companies in general, have had a clear

strategy of not being technology first ­movers. Historically, this has probably proven to be a financially effective strategy but, with the rapid change in the frame conditions, we believe there is a need for a more proactive strategy within this area.

The company that resolves some of the key challenges will gain significant benefits compared to late movers. The new ECA regulations represent one of these challenges. Companies that succeed in finding solutions for cleaning exhaust or using LNG, for example, will have significantly lower costs than companies that need to run on MGO. There are a lot of solutions that claim they might solve issues or significantly reduce fuel costs, for instance. The challenge is that not all these solutions are proven, so making decisions is a gamble.

This requires new approaches to the identification, qualification and

implementation of new technology. There are established practices for qualifying technology, e.g. within the offshore industry, and these are relatively easy to transfer to the maritime industry. We see that some of the leading shipping companies have established separate units that constantly screen potential solutions, qualify solutions and implement new solutions in a structured way on both newbuilds and existing vessels. The companies that are most likely to succeed have separate units making these investments and ensuring the return on them.

Challenging traditional ways of working may lead to significant business gains. This requires new ideas to be brought into the industry, but we can draw a lot of inspiration from other segments. However, it is important not to just copy what others are doing, but to tailor this to the cruise industry. £

Maritime excellence Critical for sustainable business performance

Technical innovation

Maintenance/ repair

Excellent safety performance a foundation

››

Maritime Excellence.

Helge Hermundsgård, Helge.Hermundsgard@dnv.com

Trond Arne Schistad, Trond.Arne.Schistad@dnv.com

maritime UPDATE NO. 1 2013 |

33

Ferry

US breakthrough on LNG Exciting developments in the North American ECA zone as Washington State Ferries, the largest ferry operator in the US, aims for LNG operation.

Text: Shinta Rotty, DNV

34 | maritime UPDATE NO. 1 2013

Ferry

Washington State Ferries With its ten routes, 20 terminals and 23 vessels, Washington State Ferries (WSF) is the largest ferry operator in the United States. It serves eight counties within Washington and the province of British Columbia in Canada. On an annual basis, it transports ten million vehicles and more than 22 million people.

››

© WSDOT/Jim Culp

One of the Issaquah ferries being considered for conversion to LNG. Capacity: 1,200 passengers.

In the coming years, Washington State Ferries (WSF), the largest ferry operator in the US, expects to convert its six existing Issaquah-class ferries to LNG. This development follows in the wake of the first North American order for LNG-fuelled ferries, placed by the Quebec-based ferry operator Société des traversiers du Québec for delivery in 2014.

WSF has commissioned a number of studies to better understand the economic, operational and technical aspects related to LNG propulsion and the required infrastructure. In an ongoing project on safety, security and operation planning, the operator has partnered with DNV. “As the biggest ferry operator in the US and the third biggest in the world, WSF can really lead the way for its industry,” says Kenneth Vareide, Director of Maritime Operations, DNV

North America. “We see a clear tipping point when it comes to global interest in LNG‑fuelled ships. Knowing that LNG as a fuel helps reduce emissions and costs, our team of researchers, engineers and business analysts are looking forward to assisting WSF and other companies in managing risks related to their LNG operations.”

LNG improves the emission situation both locally and globally. Fuelling vessels with LNG will more or less eliminate particulate matter and sulphur oxide emissions and reduce nitrogen oxide and carbon dioxide emissions by at least 80 per cent and approximately 20 per cent respectively.

“WSF burns more than 17 million gallons of ultra-low sulphur diesel each year – and this is the fastest-growing operating expense. LNG has the potential to

Shinta Rotty, Shinta.Yosephine.Rotty@dnv.com

significantly reduce emissions and the cost of fuel,” says David Moseley of the Washington State Department of Transportation. “I’m pleased to have DNV on board to assist WSF in this important look at liquefied natural gas as a possible fuel for the fleet, and I look forward to the next steps that WSF will take with DNV.” The use of LNG as marine fuel has increased dramatically over the past twelve years. Currently, 38 LNG-fuelled ships are in operation, almost all classed by DNV. Today, there are 20 car/passenger ferries operating on LNG, mainly in Norway, and this number is expected to increase in the coming years.

Since the late 1990s, DNV has been at the forefront of LNG-fuelled vessel operations and bunkering. The company has taken the leading role in making LNG a safe and viable fuel solution. £

maritime UPDATE NO. 1 2013 |

35

Nor-Shipping is an important meeting place for the global shipping industry, and DNV is the main sponsor of Nor‑Shipping 2013. Meet us at stand no. D02-14, located in hall D, for information on our services and software solutions. Or simply for a cup of coffee and a chat.

• At DNV’s Nor-Shipping Seminars held on 3 June at the Radisson Blu Plaza Hotel in Oslo, key industry names will focus on business challenges related to fuel, contracts, regulatory frameworks, finance and the global economy’s implications for shipping.

• At DNV’s Technical Drop-In Seminars held on 5 June at the Thon Hotel Arena in Lillestrøm, outside Oslo, DNV’s technical experts will present on Ballast Water Management, LNG as ship fuel, SOx – Exhaust gas cleaning systems, Fuel efficiency designs, Fuel efficient ship operations, and Hybrid ships – technology for the future?

Read more about our program and seminars and download our DNV Nor‑Shipping 2013 app for IOS and Android on our web site www.dnv.com/nor-shipping

www.dnv.com