forum Focus: EUROPE
Geden Lines: HIGHER STANDARDS
A magazine from DNV
Stolt tankers: SAFETY EXCELLENCE
no 02 2011
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BIORISK CHAMPION
DR NICOLETTA PREVISANI AT THE WORLD HEALTH ORGANIZATION CALLS FOR COORDINATED EFFORT TO COMBAT GLOBAL ISSUE
Content
02 2011
02 03
Editorial: A new look at safety culture News
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Aquamarine power’s Martin MacAdam: Failure is not an option
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illycaffe’s Anna Adriani: The story behind a cup of coffee
FOCUS EUROPE:
FORUM 02.2011 PUBLISHED BY Det Norske Veritas as NO-1322 Høvik, Norway Tel: +47 67 57 99 00 Fax: +47 67 57 91 60 EDITOR Eva Halvorsen Tel: +47 67 57 97 19 eva.halvorsen@dnv.com News: Nathan Chan DESIGN AND LAYOUT Coor Service Management as/ Coor Design graphic.services@dnv.com
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Dr Robert Falkner: Global risks and Europe’s economic woes
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Macmillan’s Cancer Support’s Simon Henderson: Changing the face of cancer care
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DNV COO Ioannis Kourmatzis: Eyeing new opportunities for Europe
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IASIS’ Carl Whitmer: Taking healthcare to a higher level
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Dr Nicoletta Previsani: WHO’s Biorisk sentinel
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US Coast Guard’s Jeff Lantz: Piracy must be defeated
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Dockwise’s Andre Goedee: Transporting the most expensive cargo in the world
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Puget Sound Energy’ Roger Garratt: Winds of change
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Captain Orhan Karademir: Higher standards, better team
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Fred. Olsen’s Tor Erik Andreassen: Into the wind
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Stolt Tankers’ Mark Martecchini: Aiming at safety excellence
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Technologies towards 2020
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Harren & Partners’ Peter Harren and Heike Felderhoff: The surface hides the unexpected
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Last word: The future of shipping
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Dong Energy’s Martin Russo: Switched-on success
Fleet Management Limited’s Kishore Rajvanshy: Keeping reputation afloat
PRINTING Grøset Trykk AS, 20 000/ 2011 COVER PHOTO DNV/Nina E. Rangøy © Det Norske Veritas as, 2011
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DNV COO Ioannis Kourmatzis: EYEING NEW OPPORTUNITIES FOR EUROPE
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Dockwise’s Andre Goedee: TRANSPORTING THE MOST EXPENSIVE CARGO
32 dong energy’s Martin russo: SWITCHed-On SUCCeSS
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illycaffe’s Anna Adriani: THe STOry BeHInd A CUP OF COFFee
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Fleet Management Limited’s kishore rajvanshy: keePInG rePUTATIOn AFLOAT
+ Editorial
A new look at safety culture
T
he long-term positive trend in ship safety, with year-on-year improvements, has now been reversed. This is worrying. It’s time to take a new look at the maritime industry’s safety culture. We need a stronger focus on safety culture, safety training and competence assessment.
Statistics show that the shipping industry’s accident frequency rate has started to rise from a historically low level. This trend is supported by increased payouts from insurance companies. Technology, rules and compliance will never bring us to the expected level of safety unless there is a greater focus on the human element. Historically, the safety focus in shipping has been on technical improvements. Most shipping company employees dealing with the operation of vessels have a technical background. Audits and inspections pay great attention to technical compliance. This technical focus has resulted in major improvements to ship safety. But now I think it’s time to focus more on the soft issues. Huge improvement potential The improvement potential is huge. We have made some interesting observations when conducting audits and projects for shipping companies. These show that much of the training offered could be more effective if it was of higher quality. Shipping companies struggle to deliver soft skills training, and few companies measure the effects of their training.
“The public and regulatory focus has moved towards the risk of environmental pollution and away from risks to human safety.”
Henrik O. Madsen Chief Executive Officer
To improve maritime safety, we need to adopt a threefold approach: 1. Improved safety culture 2. Improved training schemes 3. A formal competence assessment programme The public and regulatory focus has moved towards the risk of environmental pollution and away from risks to human safety. We need to re-establish the balance between human safety risks and environmental pollution risks. Zero tolerance for loss of human life is at least as important as zero environmental impact.
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News
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+ One step closer to becoming a real ship DNV and MAN Diesel & Turbo introduced the Quantum 9000 – a container ship concept. The ship is to be more efficient and environmentally friendly than existing ships. Since its introduction a year ago, the machinery and the hull design and arrangement have been improved. In addition to having dual-fuel engines, Quantum 9000 achieves full fuel flexibility and at the same time meets the upcoming ECA requirements. The new engine solution includes waste heat recovery to improve energy efficiency and exhaust gas circulation to reduce emissions. A number of other improvements have been made possible by adopting a twin island arrangement, such as increased cargo capacity and reduced need for ballast water. DNV’s concept ship Quantum 9000.
+ Preparing for safety and compliance at Rotterdam’s new LNG terminal Rotterdam’s Gate terminal will be the first LNG import terminal in The Netherlands; DNV is providing expertise in the field of safety management and emergency preparedness, and assists in satisfying mandatory government requirements. The initiators of the project are Gasunie and Vopak. The terminal will have an initial capacity for handling 12 billion cubic metres of LNG per year – enough to provide natural gas to all seven million households in The Netherlands. The Gate terminal will consist of three storage tanks and two jetties, and will host an estimated 180 ship movements each year. DNVPS managing director Tore Morten Wetterhus (left) and DHL Express Singapore managing director Herbert Vongpusanachai presenting the contract.
+ DNV Petroleum Services goes green with DHL DHL Express, the world’s leading express company, and DNV Petroleum Services (DNVPS) have announced the signing of a multi-million dollar express contract for the DHL GOGREEN Carbon Neutral shipping services across DNVPS’ global markets. The agreement covers the outbound transport of DNVPS’ sampling equipment and the inbound regional transportation of bunker oil samples for testing. DHL will measure and offset carbon emissions for international air express shipments and provide DNVPS with a certification stating the total amount of CO2 offset on their behalf each year. no 02 2011 – 3
+ News + Energy efficiency team established in Piraeus DNV has established a dedicated environment and energy efficiency team to operate out of Piraeus in response to the increasing level of interest shown by shipowners in the region. “Shipowners and operators are facing continuously increasing pressure to clearly demonstrate their environmental performance,” says Nikolas Boussounis, regional manager DNV. This is something that the new team understands, as four of them have worked for Greek shipowners before. An aim is to be able to serve and assist the local maritime community better, quicker and cheaper.
+ JIP to manage subsea power cabling risks In order to decrease the risks associated with subsea power cabling in offshore wind farms and other energy-related projects, DNV is inviting the industry to develop common best practices. Together with industry stakeholders, DNV has established a Joint Industry Project (JIP) on finding solutions to subsea cable issues in several wind farms. The JIP aims to better understand direct and root causes of subsea cable issues related to offshore wind farms, and to develop a guidance document to effectively manage risks involved. There has been strong interest in participating, including cable manufacturers, installers, project developers, and owners.
+ World-first Incat LNG ship to operate in South America The world’s first high-speed passenger Ro-Ro ship powered by LNG – contracted by South American company Buquebus and built by Australian shipbuilder Incat Tasmania Pty Ltd. – will operate on the River Plate service between Buenos Aires, Argentina and Montevideo in Uruguay. The 99-metre LNG ship is being built at the Incat shipyard at Prince of Wales Bay at Hobart in Tasmania, Australia. Delivery is anticipated to be in the southern hemisphere Spring of 2012. The vessel is classed by DNV.
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News
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+ World’s first REDD credits under voluntary program Wildlife Works’ Kasigau corridor REDD project in Kenya is first to issue REDD credits under the Voluntary Carbon Standard (VCS). DNV validated and verified the project. The very first verified greenhouse gas credits from a project that reduces deforestation (REDD) have been issued under the VCS Program, marking an important milestone for VCS and for reduced deforestation projects around the world. The project proves that carbon markets can bring tangible solutions to endangered forests and wildlife, and provide incentives for people in emerging economies to invest in sustainable development.
+ Stena RoRo first to sign Triple-E contract DNV’s Triple-E is a voluntary environmental and energy efficiency rating scheme. Developed in close cooperation with the industry, it was designed as a tool to help ship operators improve their organisational performance, identify ways to minimise their environmental impact, and optimise their fuel consumption and thereby reduce costs. Stena RoRo AB’s Manager for Commercial Operations Ambjørn Frøjd comments: “We view Triple-E as the next logical step to further strengthen the follow-up of our fleet’s continuous sustainability improvements.”
“Our analysis indicates that applying the ISDS class notation can easily save USD 6–20 million by avoiding the delays caused by the need to re-work software,” says Rolf Benjamin Johansen, the director of operations at software integration for DNV maritime and energy.
+ Dolphin Drilling to receive the first ISDS class notation DNV will shortly issue the first ISDS (Integrated Software Dependent Systems) class certificate to Dolphin Drilling. This new state-of-the-art class notation has been under development since 2008 and is already in great demand. Several major rig owners are now requesting the ISDS notation on newbuilds, and DNV is working to prepare yards and suppliers worldwide to deliver to the ISDS requirements. Huge potential savings are expected. no 02 2011 – 5
+ News + Cruise industry gathering in Miami DNV shared two main messages at the annual Cruise shipping exhibition and conference at Miami Beach, gathering over 15,000 participants: The DNV Global cruise service centre located in Miami, and a presentation of LNG as a fuel for the cruise industry. The DNV global cruise hub is located in Miami to be able to cooperate closely with the cruise companies, shipyards, designers and suppliers.
From left: Morten Mejlænder-Larsen, Arctic Segment Director DNV; Drew St.Peter, Acquisition Project Manager Polarcus, and Hans Hansen, Maritime Manager Polarcus.
Based on a cost/benefit analysis, DNV suggested that cruise lines who are early movers to switch to LNG will gain a competitive advantage. LNG as fuel for cruise ships would reduce emissions, and it will be helpful to comply with new future requirements that are being imposed by various regions in North America and Europe.
+ Polarcus Arctic operating procedures qualified Polarcus has, with assistance from DNV, developed a wide-ranging set of Arcticspecific operating procedures to mitigate the risks. DNV recently handed over its Statement of Qualification to qualify Polarcus’ Arctic operating procedures according to industry-best practice and relevant standards. The Statement of Qualification was presented to Polarcus at the 7th Annual Arctic Shipping Summit in Helsinki, Finland.
Trond A. Schistad is Director for DNV’s global cruise service centre in Miami.
“Now it’s time to increase focus on the soft issues,” said DNV’s President Tor E. Svensen at Sea Asia.
“Positive trend in ship safety is broken”
+ DNV recommends LNG fuelled shipping for North America
“Year-on-year improvements in ship safety are now turning into a negative trend. This is extremely worrying and requires a stronger focus on competence development both onboard and onshore,” said DNV’s President Tor E. Svensen at Sea Asia.
“Domestic ships in North America have three options to meet new emissions control regulations; install scrubbers, burn low sulphur fuel or switch to LNG fuel for the ship’s propulsion,” says Kenneth Vareide, director of operations for DNV North America Maritime.
“Statistics show that the accident frequency has started rising from a historic low. This trend is supported by increased pay-out from the insurance companies. Technology, rules and compliance will never bring us to the expected level of safety without focusing stronger on the human element,” said Mr Svensen.
DNV’s new report, Greener shipping in North America, proposes that LNG is the most efficient and economical way to meet the air emissions requirements in the US and Canada that will take effect in August 2012.
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News
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+ USCG gives DNV nod for passenger ship safety certificates The US Coast Guard has extended DNV’s statutory authorisations to include passenger ship safety certificates. This makes DNV the only class society authorised to issue the full suite of statutory certificates for all ship types on behalf of the United States of America. Says Jeff Lantz, USCG Director: “The USCG takes its flag state responsibilities very seriously and delegates statutory authorisations to class societies only after a thorough evaluation and review. DNV clearly has knowledge and experience with cruise ships.”
“This marks another milestone for DNV in the US,” says Kenneth Vareide, DNV’s director of operations for maritime activities in North America.
+ New offshore technical guidance on offshore gas terminals Rising demand for floating offshore gas terminals has resulted in the development of new technologies and specialised units, leading to a number of innovative design concepts. Based on DNV’s extensive experience in this segment, a detailed design and construction guidance is prepared.
DNV’s project manager Neil Thompson at the public hearing in New Orleans, Louisiana.
+ DNV report on Deepwater Horizon BOP concluded The forensic examination of the Deepwater Horizon blowout preventer (BOP) is concluded, and DNV has submitted its report to the US Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), who made it publically available. The blowout preventer, a 50-foot and 300-tonne assembly was raised and taken to NASA’s secure facility in Michoud, Lousiana in August for forensic examination. DNV has utilised its forensic investigation expertise from the Columbus, Ohio office and its subsea equipment (BOP) expertise from the Houston, Texas office in the project. The forensic examination is one aspect of a broad comprehensive investigation into the causes of the Deepwater Horizon accident.
“We recognised a demand for an up-to-date, fully comprehensive overview of the many technical challenges faced by designers and yards in this segment,” says Conn Fagan, DNV’s business development manager for offshore gas projects. no 02 2011 – 7
+ Focus: Europe
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chAnGinG times in euroPe euroPe is slowly working iTs way THrougH THe afTermaTH of THe financial crisis. dnv forum Takes a closer look aT THe euroPean markeT. PHOTO: geTTy images
no 02 2011 – 9
+ Focus: Europe
Behind the 2011 oil price shock:
Global risks and Europe’s economic woes The recent hike in oil prices could hardly have come at a worse time for Europe. The economic recovery from the effects of the financial crisis remains anaemic, and although Germany’s export sector is powering ahead, the UK’s return to growth remains fragile while smaller debt-laden countries such as Greece, Ireland and Portugal are struggling to convince financial markets of their resolve to fix their broken public finances. Text: Dr Robert Falkner, London School of Economics photos: LSE and Getty Images
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nsurprisingly, the recent price rally in oil markets – driven even higher by the unrest spreading in the Arab world – has spread further gloom in European capitals. In 2010 alone, it is estimated to have caused a loss of 0.5% of gross domestic product in the OECD countries. And according to calculations by the International Energy Agency, the oil price rise added $70 billion to the European Union’s import bill last year. To put this sum into context, it is nearly the equivalent of Ireland’s budget deficit, or twice the deficit of Greece. Economic historians like to point out that oil price hikes preceded nearly every major global recession since the Second World War. The last such episode was in 2008, when oil prices hit a record high of $147 a barrel. After a sharp fall back to $32 at the end of that year, the price of Brent Crude has risen again and has recently struck the $120 mark. Will the rebound in the oil market bring the EU’s fragile recovery to an end? Such fears cannot be dismissed easily. Already, higher energy prices have pushed up inflation rates and are adding further pressure on central banks to raise interest rates. But 10 – no 02 2011
whether oil price rises will wreak economic havoc depends, of course, on their duration. Consumers and manufacturers can absorb short-term shocks but will find longterm price rises more difficult to stomach. But even if price pressures recede again as Saudi Arabia pumps more oil into global markets, European investors and policymakers would be well advised to consider some of the long-term risks that will drive future oil market fluctuations. On the economic front, the fundamental problem is that long-term demand and supply trends are out of sync. Global oil demand is set to rise year-on-year while global supply is coming up against natural, economic and political barriers. The net result of this will be higher prices overall, but also greater price fluctuation as markets adjust through repeated boom-andbust cycles. Demand is largely driven by the powerhungry emerging economies of Asia and Latin America. Increased energy efficiency and the off-shoring of energy-intensive manufacturing may have helped Europe to slow down the growth in demand for fossil fuels, but China and India are relentless in their quest to fuel an extraordinary export
boom and to satisfy the aspirations of their expanding middle classes. China alone has single-handedly reshaped global energy markets in recent years. In 2009, China overtook the United States to become the world’s biggest car market. And a year later, the country pushed ahead of America as the world’s largest energy consumer. Just ten years ago, China’s energy consumption was only half that of the United States. In the past, plenty of spare capacity and unexplored reserves allowed oil-producing countries to satisfy the growth in global oil demand. Production should continue to grow for several years to come, but the signs of a future tightening of the supply side are all too clear. Already, oil companies are having to search in ever more remote fields that drive up production costs and pose new environmental and commercial risks, as last year’s oil spill in the Gulf of Mexico demonstrated. Moreover, the added capacity from new explorations is unlikely to fill future output gaps, as more and more analysts warn. A recent review by the UK Energy Research Centre concluded that, based on current knowledge, oil production
from conventional sources is likely to peak before 2030, with a ‘significant risk of a peak before 2020’. To be sure, oil will not run out for many decades to come. But if future production will not be able to keep up with the energy thirst of the emerging economies, then upward pressure on oil prices will be inevitable. The recent popular uprising in the Arab world further illustrates the global risks that threaten Europe’s economic future. The oil price rises since January are the direct result of the growing unrest in the oil- and gas-rich regions of North Africa and the Middle East. Even though they
reflect not so much actual supply shortages but market fears about further contagion effects of the ‘Arab spring’, they underline the political volatility that characterises global energy markets. On their own, individual crises such as the near shutdown of production in Libya would be manageable. Once larger suppliers are affected, however, panic can easily grip global markets. Should unrest spread to Saudi Arabia – an unlikely scenario in current circumstances – the outlook for the European economy would indeed be bleak.
I Dr Robert Falkner Senior Lecturer in International Relations at the London School of Economics and Political Science no 02 2011 – 11
+ Focus: Europe
Eyeing new opportunities for Europe Europe has been perceived by industry commentators as a mature market within several business segments. These commentators claim that the shipping industry wind is blowing in an easterly direction, and that new oil and gas prospects will most likely not be developed in Europe. DNV COO and Head of Division Europe and North Africa Ioannis Kourmatzis is optimistic about the future. Text: Per wiggo richardsen photos: DNV/Nina E. Rangøy
“Some of the biggest shipowners, major energy suppliers and engineering, procurement and construction firms are based in Europe. Their technology development is impressive and the way in which they approach new opportunities will create business in the future,” says DNV COO and Head of Division Europe and North Africa Ioannis Kourmatzis. He underlines that a separate division is established for Norway, Russia and Finland. What are DNV’s strengths within the European markets?
DNV’s purpose is to safeguard life, property and the environment. Our aim is to do so by creating value for all our customers. What we bring to the table is superb crossdisciplinary expertise and the excellent domain knowledge of our staff, supported by industry-leading tools and technologies, all based upon our impartiality as an independent foundation with no shareholders. Our strength also lies in our brand, which is built on a solid platform of quality, integrity, technology and expertise, combined with a proven commitment to balancing the needs of business and society. DNV has developed its risk-based approaches in order to 12 – no 02 2011
provide solutions that encompass safety, environmental, organisational, human, commercial and social aspects. We have developed a range of methodologies that enable us to put a price tag on both risks and opportunities and thus help our customers to improve their decision making. What is DNV’s advantage in the maritime and energy industries?
15%. DNV has built up an unparalleled fuel-analysis competence resource base that maritime customers may avail themselves of. DNV has for many years focused on developing the right expertise in environmental services and we currently have a portfolio of services that can help shipowners to meet the newly imposed requirements. In the energy industry
In the maritime industry we have seen an unprecedented newbuilding order boom over the last few years. This has strained the industry’s technical resources. It has become clear that, through its technology and qualification services, DNV can provide the industry with invaluable assistance, such as evaluation of new concepts and technologies. The increased cost of fuel and the ongoing commitment to improving environmental performance make it necessary for our customers to focus on energy efficiency more than before. DNV has the expertise to offer tailor-made solutions through energy management programmes. The result is energy savings that benefit both the environment and the bottom line. Some of our customers have achieved fuel bill savings of up to
Europe and North Africa continue to be vibrant markets where oil and gas companies can develop new opportunities. In 2010, more than Euro 20 billion in new investments were announced in the North Sea and Eastern Mediterranean due to the energy companies exploring new basins, exploiting fields in deeper waters and taking advantage of new technologies to develop fields previously considered marginal. Strong oil prices have continued to support investment decisions for new oil and gas fields, and the increased demand for gas as a fuel has led to the commissioning of several new LNG import facilities and new pipelines in the European market. The industry is not without its challenges however. The Macondo and Montara blowouts have acted as a wake-up call to
I “I often hear our customers mentioning that they have chosen DNV as their solution partner because we have the technological know-how and competent staff as well as an excellent customer service management. These are the main strengths that we will maintain, develop and build further on,” says DNV COO and Head of Division Europe and North Africa Ioannis Kourmatzis. no 02 2011 – 13
+ Focus: Europe
the industry and its regulators, with an additional focus being placed on equipment certification, the verification of new designs and improvements to safety and environmental performance. DNV has been working closely with its customers to identify opportunities to improve the performance of their facilities. In addition, we have been meeting regularly with the regulators, at their request, to provide our perspective on their potential regulatory changes. One additional challenge is that of ageing installations. Many of the facilities currently in operation are over 30 years old, and some are now operating beyond their design lives. DNV has worked closely with its customers to address this issue, including structural integrity requirements, equipment obsolescence, ageing workforces and knowledge management. DNV spends 6-7% of its operating revenue on research and development each 14 – no 02 2011
year. That gives us a big advantage as we are able to focus on areas and technologies that are useful to our customers and stakeholders. Whilst most of the R&D work takes place at DNV’s head office in Oslo, we have established a few satellite research stations locally, such as in Piraeus, Greece, and a number of pilot projects are already being run there. Why should customers choose DNV ahead of its competitors?
Maritime customers tell us that we are able, through our dedicated customer service managers, to provide timely advice that help them to understand and correctly implement the plethora of new requirements efficiently. At our academies in strategic locations such as London, Piraeus, Hamburg, Copenhagen and Rotterdam we hold seminars to raise the awareness of new technologies and regulations and help find solutions.
We also help our energy customers to grasp new opportunities whilst at the same time managing the downside risks. We have seen many examples, especially in complex projects, of customers achieving great savings by adopting our risk management approach at an early stage. Where do you see potential growth for the customers and how can DNV meet future needs?
A number of events in Europe recently have changed the growth projections in different market segments. Three examples can be mentioned: n The boom in shipping newbuildings coupled with the financial crisis n The turmoil in North Africa and the Middle East resulting in increased oil prices and concern about energy security and supply n The demand from Europe for the adoption of the 20-20 principle (20% of energy from renewable sources by 2020)
I “Europe will remain a mature market for traditional areas, such as classification business and the new construction of standard-type vessels. However it will be a growth market for complex technology areas and specialised vessels,” says DNV COO and Head of Division Europe and North Africa Ioannis Kourmatzis.
In the energy sector, the high fuel prices and depletion of easy oil will make operations and drilling in deeper waters economically viable. A number of such operations are expected to be off the coast of North Africa and in the North Sea, particularly West of Shetland. However, these will be carried out under the scrutiny of local states and the EU in the aftermath of the Macondo blowout. With its expertise from similar operations DNV is a reliable partner for oil companies, operators and regulators. There is currently a high level of merger and acquisition activity in the energy market. DNV has acted as an adviser in a number of technical due diligence activities, working on behalf of both vendors and purchasers and with the banks and finance houses. coupled with the sovereign debt crisis in a number of European states. In the maritime sector, we see a slowing of orders for some traditional ship types, while there is increased interest in specialised vessels like LNG carriers, shuttle tankers, offshore support vessels and offshore wind-related support vessels, such as wind installation turbine and service vessels. With its heritage and expertise from the North Sea, DNV is well positioned to assist customers entering such areas. In addition, the demand for energy efficiency is putting LNG as fuel on the agenda. A number of coastal vessels, particularly in North Europe and the Baltic Sea, are to be fuelled by LNG and some have already switched over. Most of them are to be classed by DNV. Projects are also on the table concerning LNG for ocean-going vessels – and DNV has launched innovative concepts, such as Triality and Quantum.
In the wind energy industry, we expect continued strong growth in all main markets in Europe. The forecasts for offshore wind projects in the North Sea are favourable. The industry is in particular very active in the waters off the UK, Germany, France and the Netherlands, in addition to the investments we see in mainland Europe. Not only are the policy frameworks in these markets stable and offering a long-term view, which suits this industry well, but larger utility companies also see the business need for having a mixed electricity supply portfolio. The need for enhanced energy security in Europe is also a major driver. I am optimistic that we will make a positive impact in Europe and globally with our technical advisory services and certification scheme.
Is Europe a mature market or a growth market?
Europe will remain a mature market for traditional areas, such as classification business and the new construction of standardtype vessels. However it will be a growth market for complex technology areas and specialised vessels. We will continue to see newbuildings of cruise vessels, offshore support vessels and wind turbine installation vessels to serve the growing market in Europe. In North Europe alone, the UK and Germany have agreed to invest Euro 150 billion in the development of offshore wind farms. That will certainly provide an impetus for growth. With our dedicated wind turbine certification centre in Copenhagen and our wind experts located in London, Aberdeen and Hamburg, we are well positioned to serve this industry, and have recently introduced new class notations for wind turbine service vessels. In addition, different types of LNG development and distribution, including unconventional shale gas in Poland, Germany, France and the UK, will face an interesting future. There will be new opportunities for fixed and floating LNG terminals, and there will certainly be further developments in the field of renewable energy. In complex technology areas, we will see growth in deep water drilling, requiring new solutions for, and it is likely that we will also see an increase in subsea processing. We are watching the carbon capture and storage market with interest, and have already developed several new approaches for sequestration, transportation and storage through joint industry projects with industry partners. Should the commercial viability of these projects improve, we are well positioned to help the industry meet the technological challenges. no 02 2011 – 15
+ Focus: Europe
WHO’s biorisk sentinel Dr Nicoletta Previsani, Biorisk expert at WHO (The World Health Organisation) calls for coordinated effort to combat global issue. Text: Stuart Brewer photos: DNV/Nina E Rangøy
“M
anagement of biosafety and biosecurity, collectively known as biorisk, has become a vital global issue, especially in light of SARS in Singapore, Taiwan and China in 2004,” says Dr Nicoletta Previsani. As head of WHO’s biorisk division, she aims to be a catalyst for increased international cooperation. The organisation’s stated mission is attainment by all people of highest possible levels of health. “We all have to contribute,” Dr Previsani says. “Countries are required by the International Health Regulations to manage laboratory biorisk as part of their laboratory core capacity infrastructure. Consequently, a number of actors have important roles in promoting biological safety and security: Governments, professional organisations, research institutions, international organisations, and international networks such as regional biological safety associations.” Referring to initiatives already undertaken, Dr Previsani highlighted the development of the CEN Laboratory Biorisk Management Standard (CWA 15793). According to WHO, many facilities conduct research, diagnostic and production activities on many organisms of serious potential threat to humans and animals, and should be designed to ensure that the risk of worker exposure and release 16 – no 02 2011
of materials to the community or environment is minimised. “The work of such facilities is, however, not without risk and there have been several cases of laboratory acquired infections in recent years,” points out Dr Previsani. “This can be partly due to the difficulty in finding experienced personnel available in this field, but also a lack of necessary structures and frameworks around which facilities can build adequate biorisk management systems,” adds DNV director Dr Paul Huntly. “Such problems exist in Europe and North America, but can be particularly severe in developing countries,” he adds. International collaboration
In an effort to improve biorisk management, the European Committee for Standardization (CEN) established an international project to develop the Laboratory Biorisk Management Standard. The standard, developed in 2008 in a project managed by DNV, sets requirements necessary to control risks associated with the handling or storage and disposal of biological agents and toxins in laboratories and facilities. The standard is performance-based and places responsibility on organisations to demonstrate that appropriate and validated risk reduction procedures have been established and implemented. The
standard is based on a traditional management systems approach. The organisation’s ability to deal with the hazards associated with biological agents and toxins is hence improved through the identification, understanding and managing a system of interrelated and relevant processes. This laboratory biorisk management standard is compatible with the EN ISO 9001:2000 (Quality), EN ISO 14001:2004 (Environmental) and OHSAS 18001:2007 (Occupational Health and Safety) management system standards, in order to facilitate the integration of all such management systems of an organisation “There are numerous key factors in establishing a successful biorisk management system,” says Dr Stephen McAdam, programme director in DNV’s research department. These include: Commitment by top management n Providing adequate resources, prioritisation and communication of biosafety and biosecurity policy; n Integrating of biorisk management throughout the organisation; n Identifying opportunities for improve- ment and prevention, determining root causes and preventing recurrence.
I “The spectrum of biological risk runs from naturally occurring diseases at the one end, through unintended consequences, accidents, lack of awareness and negligence, to deliberate misuse at the other. It is therefore imperative that we meet this challenge collectively. We need to coordinate and harmonise our efforts,” says Dr Nicoletta Previsani head of WHO’s biorisk division.
no 02 2011 – 17
+ Focus: Europe
I Dr Previsani believes that meeting the requirements of the Laboratory Biorisk Management Standard helps to further biosafety and biosecurity at laboratories containing harmful pathogens and toxins. Here she is seen in discussion with Dr Espen Cramer (right) head of DNV Healthcare & Biorisk, and DNV director Dr Paul Huntly.
Focus on continual improvement
Making continual improvement an objective for every individual in the organisation; n Using periodic assessment against established risk-criteria to identify areas for potential improvement; n Continually improving the effectiveness and efficiency of processes; n Promoting prevention activities; n Providing personnel in the organisation with appropriate education and training including the methods and tools of continual improvement; n Establishing measures and goals for improvement; n Recognising improvement. n
Dr Previsani points out that requirements of this standard are generic and are 18 – no 02 2011
intended to be applicable to all organisations handling biological agents or toxins, regardless of type, size and biological agents handled. Compliance with national and local regulatory standards, regulations and requirements are also of primary importance in any programme she says. Collective approach
“The spectrum of biological risk runs from naturally occurring diseases at the one end, through unintended consequences, accidents, lack of awareness and negligence, to deliberate misuse at the other. Given same, it is evident that it is futile to attempt to tackle these risks individually, as isolated threats. It is therefore imperative that we meet this challenge collectively. We need to coordinate and harmonise our efforts.”
Dr Previsani believes that meeting the requirements of the Laboratory Biorisk Management Standard helps to further biosafety and biosecurity at laboratories containing harmful pathogens and toxins. “I think it serves well as a platform for awareness-raising and competence building. International standards can also play a role in the development of national regulations, guidelines and requirements,” she says. “We need to address this issue because there is a large and growing need for support in the regions, especially those who are struggling to manage real issues of potential global impact,” concludes Dr Previsani.
Š Getty Images
I The Laboratory Biorisk Management Standard sets requirements necessary to control risks associated with the handling or storage and disposal of biological agents and toxins in laboratories and facilities. no 02 2011 – 19
+ Focus: Europe
Big business 20 – no 02 2011
Dockwise’s Black Marlin takes part in the project of transporting and installing two production platforms for the Stockman field in the Barents Sea. >>
no 02 2011 – 21
+ Focus: Europe
Transporting the most expensive cargo in the world Dockwise, the Dutch heavy marine transport specialist, is taking things quite literary to the next level. Their newest vessel is destined to change the very scale of offshore production units. Text: Anders øvreberg photos: dockwise
I T-O: A game-changer for the heavy marine transport industry.
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rusted by clients to transport billion dollar investments, such as semisubmersibles, jack-ups and spar buoys, Dockwise is in a league of its own in the heavy marine transport market. CEO Andre Goedee is managing a 300 employee company headquartered in 22 – no 02 2011
The Netherlands with 19 special vessels in full operation around the world. “The majority of our work is the transportation of offshore drilling and production equipment. Currently we see a lot of equipment moving out of the Persian Gulf, and also a lot of equipment moving
out of the Gulf of Mexico. Much of this equipment is moving to West Africa, India, and other areas. On top of that we see still a lot of new built jack-ups coming out of Singapore. This is what’s keeping us busy right now,” says Mr Goedee.
In the business of sinking ships
Nothing less than heavy
The methodology which Dockwise uses entails “sinking” its specially designed vessels so that the deck is below the waterline, then floating the unit to be transported in a position above the submerged deck. Then they pump out the ballast water to lift the unit high and dry. Over the past years, Dockwise has added services to its transportation business such as the installation of a topside on a jacket or a hull. The combined service of transport and installation is called a float-over. The float-over technology has many implications. It can help yards building new equipment, a production platform for example, in two parts. “They normally build production platforms bottom-up, requiring one to climb up with every bit of equipment using cranes and such, rather than build the top-side deck at the ground level and then using the float-over technique to install it on the hull, which is much cheaper,” says Mr Goedee.
In 2010, Dockwise did about 80 projects, but none were less than 10,000 tonnes in weight. “We don’t see any of our projects as easy or difficult. Every project gets the same treatment. If you look at the top end of the market and the extremely large production platforms and the big 6th generation semis, the size of it makes them complicated in handling. That warrants more attention from an engineering perspective, looking at the interface between the cargo and the vessel itself. We also look at the season, the transportation route, weather routing and so on. However, we are still talking about transportation. Even the largest platform is simply transportation from A to B,” says Mr Goedee. Deeper waters means big gets bigger
In a recent project for Shell, Dockwise transported the spar buoy Perdido, which stretched 50 metres out over the aft of the vessel. Increasing the diameter, however, is more difficult. “We see that the 6th generation semisubmersibles and the latest spar buoys are at the limit of what we can do with the Blue Marlin, which is our biggest vessel. However, we hear from clients that they are looking at bigger equipment as a result of deeper-water operations. The complexity and extreme depth of the wells translates into bigger platforms and offshore units, and this is a market we’re aiming to serve,” says Mr Goedee. Super-sized transport vessel
I CEO Andre Goedee of Dockwise: “Being a market leader is what we do. It’s in our culture, and it also brings more interesting work for our people.”
Dockwise has commissioned Hyundai Heavy Industries (HHI) in Korea to build their latest vessel, the T-0. It’s a unique maritime transport vessel, with an overall deck size of 275 x 70 metres. Its revolutionary design, developed together with Delta Marine of Finland, is classified by DNV. It has no bow or standard superstructure, it is designed to have its massive deck submerged below the water level, and has a carrying capacity of up to 110,000 metric tonnes. DNV worked in the project together with Dockwise to develop completely new rules of class for this novel design, and this
work is ongoing. “It has been a rewarding task for both,” says Mr Goedee. “It’s not the biggest vessel in the world, by any means, but it is an industry gamechanger. We said before we started that we basically needed the size of an aircraft carrier without the deck height. Delta Design made our thoughts and ideas into a workable design, we tank tested it, and DNV has worked closely with us to make sure the rules are flexible enough to enable us to take this very real step forward.” A one-stop shop
Next to the transportation, Dockwise has become involved in large installation projects over the past couple of years, for instance the Vyborg project. “In that project, we installed a 20,000tonne topside onto the hull of the platform. Projects such as this need a lot of engineering, so our engineering group has grown to cover all the required disciplines in-house. We are now taking on projects that we wouldn’t even have looked at five or six years ago,” says Mr Goedee. The benefits are obvious to the oil majors and epic contractors. “Instead of working for months to set everything up at the production site to integrate the modules, our customers can commission the topside fully integrated in the yard so that they know everything works, and then transport it in one go to the location using a vessel to install it,” says Mr Goedee. His vision for Dockwise is to widen the company’s scope to become a high-end “one-stop shop” oil and gas services contractor. And with the attitude to realise the inconceivable, Dockwise should be well on its way to reaching that goal.
I A submerged Blue Marlin with the MC Ocean Quest. no 02 2011 – 23
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Higher standards, better team For Captain Orhan Karademir, standards aren’t just for compliance; they are the key to building the best team possible. Text: Ken R. Windsor Photo: DNV/Nina E. Rangøy
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aptain Karademir has chains on his mind this morning. “Everyone on our team is a vital link in the chain. I am no different. My role is to ensure that every other link knows what is expected and what standards we maintain. When you see it from that perspective, standards are just as much about creating strong teams as they are about regulations.” As Chief Operating Officer of Geden Lines, Captain Karademir takes no standard for granted. He knows the key to achieving the best team performance is staying fresh, alert, up-to-date and motivated. Surprising his staff with a crisis scenario in the middle of the night is only one example of how his approach melds standards and teamwork to help everyone stay focused. Young fleet
The ‘higher standards, better team’ mindset is one of the reasons why Geden Lines, the largest owner-operated shipping company in Turkey, is fast becoming one of the most respected. Founded in 1975 by the mega-group Çukurova, the 36-strong fleet today is one of the youngest in the industry, with an average age of less than two years (excluding one ship). Captain Karademir continues, “After going from deck officer to ocean-going 24 – no 02 2011
master mariner on many different types of vessel, you get a pretty good picture of what standards mean in practice. It’s obvious what happens to the ship if she is neglected. It’s not always obvious what happens to the team. Exceeding standards is important because actual conditions might actually be harsher than what the standards could foresee. The team needs to have a continual improvement mentality to be prepared for the unexpected. Our philosophy is to learn from what we experience, share it and then use it to exceed standards.” Growing up in the north-eastern Black Sea coastal town of Giresun, the twiceweekly call of large passenger ferries would draw Mr Karademir and his friends to the port to examine what they could of each vessel in dock. His love of the sea took shape at ITU’s Maritime Faculty where he received his degree in maritime transportation and management engineering as well as an officer’s licence in 1979. Strong reputation
After nine years at sea, he joined Geden in 1987. “My dream was to work for one of the best shipping companies in Turkey. There were only about seven ships in the fleet when I joined, but Geden had a strong reputation. I still am proud to be
part of one of the best teams in the industry,” he says. How to raise the bar
As part of its strategy, Geden aims to have the highest standards in the industry – no deficiencies, zero port state detentions, no accidents, and best environmental record. Applying 60 TMSA key performance indicators to each ship is an important starting point for achieving that goal. The quality of the officers and staff is another area where he thinks Geden has been successful at raising standards. “We place a lot of importance on motivating the crew, training and improving the quality of the officers. This gives us a better chance at retaining our staff, which ultimately means better quality people running the ship. Our annual crew-run seminar in India is a great example where feedback to management, as well the involvement of their families on day two, helps build a stronger bond among our team.” He is not always content to rely on his own instincts. He occasionally calls on the experience of external hired inspectors from the oil industry to audit the ships and the company’s operating and management systems to ensure he has a fresh, independent perspective on Geden’s operations.
A partner to raise standards
Today, with most of the fleet in DNV Class, Captain Karademir sees his relationship with DNV as a partnership to help him push Geden’s standards higher. He also engages DNV for advisory services, such as the Nauticus hull integrity management system, energy management and technical training courses to keep the team up-todate and prepared. “Rules and regulations are constantly changing. Especially with greater TMSA and IMO emphasis on environmental standards, and with local situations such as those at California and EU ports where the rules are even more complex, it’s challenging for us to keep up on our own. With DNV, we feel that we are one step ahead with their continuous feedback on changing rules and regulations. DNV keeps everyone in our team abreast of the changes, and its training sessions for new superintendents are helping our team get top-notch knowledge that makes our entire operation better,” he says. trust outside and pride inside
For Captain Karademir, energy management, cost efficiency and environmental performance are simply different aspects of the same issue. “We are, little by little, making our ships more sustainable as well as more efficient. This is what having the best operating performance is all about.” Every industry is defined by the standards it maintains. But for Captain Karademir standards also provide an opportunity to differentiate. “Going beyond the standards says something to our customers, authorities and to all our audiences that sets us apart from our peers. It creates trust outside and pride inside.” He stops to ponder the chain. “Yes, we are proud of that chain and of every link in it.”
I “Going beyond the standards says something to our customers, authorities and to all our audiences that sets us apart from our peers. It creates trust outside and pride inside,” says Captain Orhan Karademir, Chief Operating Officer of Geden Lines. no 02 2011 – 25
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Aiming at safety excellence When Stolt Tankers set out to strengthen its safety culture, The management team were surprised to discover that one of the greatest barriers to change was getting the crew to accept that management really meant what they said. Text: Wendy Laursen photos: Stolt
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hen Stolt Tankers launched its Excellence in Safety programme in 2006, the one thing management did not anticipate was how difficult it would be to overcome habits learned over a lifetime. “I never would have guessed changing people’s behaviour was going to be so hard – especially when we worked so hard at it! But it was,” says Mark Martecchini, Managing Director Shipowning at Stolt Tankers. The company was experiencing an increasing number of incidents, and with a global fleet of parcel tankers carrying anything from petrochemicals to specialty chemicals and acids, the situation was troubling. Added to that, the ship inspections conducted by its customers, typically major oil companies, were becoming increasingly rigorous. While Stolt historically had a solid performance record, the stakes were clearly being raised. One of the challenges the company had to overcome was the longheld belief amongst ship crews and shore staff that safety was fine, so long as it didn’t delay the ship. “When it comes to safety and passing inspections, ‘getting it right the first time’ is the most important objective – even more important than getting work done on time,” says Mr Martecchini. 26 – no 02 2011
for some people to understand that. Or perhaps I should say it took a while for some of our people to realise that we really meant what we were saying. “We ourselves were partly to blame. Commercial pressure, real or perceived, is a fact of life in shipping and we had to reorient shore staff so that our messages to ships were consistent. There will always be time pressure; we’re successful when our officers and crew know they are empowered to prioritise safety over time.” Working methodically
I “I never would have guessed changing people’s behaviour was going to be so hard – especially when we worked so hard at it! But it was,” says Mark Martecchini, Managing Director Shipowning at Stolt Tankers.
“Taking a ship out of service for a short time is far better than experiencing an incident or having a ship rejected by a customer, which can mean trading restrictions for up to six months. It took a while
The Excellence in Safety programme identified that incidents can generally be attributed to failures in following established procedures or to a lack of situational awareness. “This is what a culture of safety is all about: preventing things from happening by getting people to work methodically and to take the time to think about what they are doing,” says Mr Martecchini. “Yes, it probably means that a given procedure will take longer. And, yes, it may mean that a crew member might be out on deck – maybe a dark, cold and wet deck – longer than he might want to be. On the other hand, working methodically through every item on that checklist ensures the safety of that crew member, his shipmates and conceivably many others.”
I Stolt’s Excellence in Safety programme identified that incidents can generally be attributed to failures in following established procedures or to a lack of situational awareness.
Building transparency
One of the greatest achievements of the Excellence in Safety programme has been that crew are now more comfortable sharing information. “Many crew members felt it was inappropriate to point the finger at others, but successful ship operation means everyone must work together as a team, and good team members must accept criticism,” says Mr Martecchini. DNV conducts periodic shipboard surveys to help analyse incidents. In the past, if something went wrong, it could be a challenge to get the facts on the table but crews have increasingly come to appreciate that it’s not about blame, it’s about learning from mistakes. “With the transparency we have today, it’s much easier to get to the bottom of an issue,” he says.
And at the bottom of nearly every incident, there is someone who knew, or suspected, something was wrong or about to go wrong. “The difference between a disaster and a close call can sometimes just be a matter of someone seeing something that everyone else has overlooked. That is why we are so adamant about the notion of calling a ‘time out’ and the need to respect anyone, from an able-bodied seaman on up, who makes that call.” Taking it even further
For Mr Martecchini, managing human behaviour is central to the on-going safety development of the company. “This is where DNV’s experience is invaluable. They know us, they know the industry and they know the science of safety,” he says.
Sophisticated parcel tankers are among the world’s most challenging ships to operate, due to the complexity of the ships themselves and the large number of potentially hazardous cargoes they carry. Stolt’s Excellence in Safety programme continues, now focusing on developing competency in procedures and enhancing situational awareness even further. Although the company is performing favourably amongst its peers, Mr Martecchini believes the high cost of incidents – to personnel, cargoes, ship availability, reputation and finances – justifies taking safety performance to a far higher level. “The pursuit of safety is a practice, a way of life,” says Mr Martecchini. “It’s like exercise. You can’t just talk about it, you’ve got to stay focused and do it.” no 02 2011 – 27
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much more thAn A yAcht THe Hanse explorer is Here seen ancHored aT dnv´s HeadquarTers ouTside oslo, norway. alTHougH iT looks like a nice yacHT, iT is in facT also an exPloraTion vessel and a Training sHiP for bridge and engine crew as well as caTering Personnel. PHOTO: dnv/dag THorsTensen
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The surface hides the unexpected The Hanse Explorer anchored outside the DNV headquarters at Høvik contains more than is expected at first sight. So does its owner – Harren & Partner. Exciting opportunities are discovered under the surface when a closer look is taken at both the vessel and company.
Text: Per wiggo Richardsen photo: henning lillegård
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or a few weeks last summer, the Hanse Explorer was an attraction in the Oslo Fjord. At the time of writing, she is acting as a research vessel in the Baltic Sea. In between, she has among other things explored the Arctic, Antarctic and has even passed through the Northwest Passage. Although it looks like a nice yacht, it is in fact as also an exploration vessel and a training ship for bridge and engine crew as well as catering personnel. Its engine is similar and its bridge is equally equipped as those found on board some of the shipowner’s merchant vessels. Its galley is prepared for training purposes – all these to make the training as realistic as possible. In the same way as the Hanse Explorer is a yacht for cruise participants too – with inviting salons and cabins, Harren & Partner is also an ordinary shipowner – with a fleet of container feeders, tankers, bulk carriers, and dock ships. Its total fleet will soon contain 60 vessels, be manned by some 1,800 seafarers and supported by an onshore staff of 150 employees from its head office in Bremen, Germany. Harren & Partner’s more hidden secret is its move into different shipping segments, new tailor-made transportation, novel activities in which more traditional 30 – no 02 2011
shipping services are merged with conventional oil and gas related services. And even more exciting, Harren & Partner is about to start deep-sea mining and is looking for completely new activities. Entrepreneurial spirit
Peter Harren, who founded Harren & Partner some 20 years ago and is today its president and chairman of the board, welcomes us to Skøyen, Oslo where the Offshore Installation Group (OIG) has offices. Joining him is Heiko Felderhoff, managing director of Harren & Partner and chief executive officer of OIG. “OIG was established together with Norwegian partners and has thus opened doors to the exciting offshore market. I’m convinced that there are a lot of exciting opportunities in the grey zone between the traditional shipping and offshore oil and gas markets. Together with our partners, we have developed new services and will be able to grow these and other opportunities further on,” he says. Peter Harren explains how Harren & Partner has been built, how the first multipurpose carrier was followed by other ship types and how the first heavy-lift carrier extended the company’s focus. He and Heiko Felderhoff paint a clear picture of
a company driven and developed by an entrepreneurial spirit. As society at large and the authorities in different countries have been focusing on extending the energy supply and, among other things, on how offshore wind generation can play an important role, Mr Harren and his partners have followed these leads. An impressive vessel for wind turbine installation is to be built – in Singapore – to meet the existing and growing future needs. Deep-water mining
But Peter Harren has even one more card to play, one more example of the company’s entrepreneurial spirit. Deepwater mining is his keyword. “The oceans represent 70% of the globe’s surface. So far, oil and gas have been discovered in deep water and thousands of metres below the seabed. We know there is more to find – minerals like copper, nickel, zinc, cobalt, silver and gold. Building on technology that has been used and is well known within the existing oil and gas industry, I’m sure we, together with our well-experienced Joint Venture Partners “Nautilus Minerals Inc”, will be able to explore and develop deepwater mining too.”
I Peter Harren (left) and Heiko Felderhoff are not only managing an ordinary shipping company, they are also developing new business in the grey zone between the shipping and offshore sectors, including a focus on mining.
Oil and gas reservoirs are drilled and drained to bring petroleum to the platform for processing. Deposits of minerals can be mined to bring ore to the surface in a comparable way. So far, there are just a few ongoing deepwater mining projects. The best known one is north of New Guinea in the Pacific Ocean, at water depths of 1,600 metres, and is expected to start production in mid-2013. “These are the markets of the future. This is the future,” say both Harren and Felderhoff. “I’m convinced that the demand for resources that we have seen for a long time will not stop tomorrow,” explains Heiko
Felderhoff. “You and I will still be looking for new commodities that need the minerals previously mentioned. Mining on shore will continue, but deepwater mining will represent new opportunities. “We are now moving into this area together with partners. We know it will be challenging. We know we have to act with care in an environmentally friendly way. But we have the resources available – expertise and equipment – and we are able and willing to spend the money and effort needed to develop the correct vessel for this purpose. So far the number of potential operators is limited and, by combining OIG’s and Harren & Partner’s expertise, we
are ahead of most of these competitors.” Peter Harren is proud of what his company has achieved. He is proud of the past but, even though he became a seafarer more than 50 years ago, he is mainly looking for new opportunities either at sea or far below the surface. He has no wish to use the Hanse Explorer mainly as a relaxing yacht. The research and exploring opportunities the vessel represents are what are most important to him, along with its “mission” to secure solid training to young cadets for their assignment on board Harren & Partner’s fleet vessels.
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Switched-on success DONG Energy’s long-term partnerships in offshore wind power are helping the industry’s most experienced player generate even better results.
Text: Kenneth R. Windsor photo: DNV/Nina E. Rangøy
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he vistas of modern wind farms we increasingly encounter across our rural and coastal landscapes belie the massive scale and financial investment involved. Stand next to the 50-metre high ‘jacket’ that Martin Russo, DONG Energy’s project manager for the Walney offshore substations, is building and you get a tangible sense of the epic proportions of the project he is managing. And that’s only the substation. DONG Energy, the world leader in offshore wind power generation is developing and constructing the Walney 1 and 2 offshore wind fields off the east coast of the UK, due to begin power production in 2010 and 2011 respectively. When both fields are complete, 102 turbines will generate 367 MW of electricity, enough to power over 320,000 homes in Cumbria, not far from their location in the Irish Sea near Walney Island. Since joining DONG Energy in 2007, Mr Russo has been project manager and more recently also team coordinator for offshore substations. His current project is his third offshore substation in a row. Walney 2 will be installed in May 2011. Installations for giants
“Install” doesn’t begin to describe what it means to set up an offshore substation, 32 – no 02 2011
certainly not in the usual sense of installing software or a radiator. The pieces are few but impressive: a 1,050-ton, threestory platform is placed atop a 1,100-ton, 50-metre high jacket, held fast on each corner by four 130-ton monopiles, driven 40 metres into the seabed. This giant erector set takes 8–10 days of extremely slow and considered transport from Denmark to the Irish Sea. Installation takes another week to ten days, followed by months of offshore hook-up and commissioning. All the while, his colleagues on other teams are busy nearby installing the turbines that will catch the wind and produce electricity. But, as Mr Russo explains, “One of the most exciting moments in the commissioning process is when the offshore substation is ‘energized’ – current from onshore is put through the substation to test the systems.” This moment of reckoning, before electricity from the wind turbines begins flowing to the offshore substation, is when two years of planning, hard work and millions of euros invested, all converge and are finally switched on. As Mr Russo puts it, “It might be the most humble of structures in the world of electricity, but if it doesn’t work, there is no electricity. Failure is not an option.” In effect, it is a remote-controlled, sealed
module that can be monitored from onshore. Partnership pays off
Because of the high investment costs, one of Mr Russo’s biggest challenges is balancing the need to keep the program on schedule and on budget with building a substation that has the highest safety and performance reliability. DONG Energy has almost two decades of experience in offshore wind development, more than any other company. But for Mr Russo, this balancing act becomes a much simpler task because he can rely on the deep experience of long-term partners. Such is the case with DNV, whom DONG Energy has worked with across many different areas and businesses. “DNV’s experience as third-party verifier for the detail design of the Walney 1 and 2 offshore substations is helping make this a much smoother process, especially since we’ve been through this before. You don’t need meetings to discuss everything; I can call DNV’s single point of contact and my job is so much easier. We both know where we need to focus on details and where we need to pay attention to the big issues. This keeps the process efficient and moving forward.” DNV’s work with Mr Russo focuses on ensuring that the substation design meets
I “Wind turbines are like top-of-the-range production-line BMW 7s. Building the substation is different. It is a hand-built, one-off, highly complex piece of equipment – like a Rolls Royce; every detail has the utmost attention,” says Martin Russo, DONG Energy’s project manager for the Walney offshore substations. no 02 2011 – 33
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I Construction of the Walney 2 substation. All the electricity being generated by the 51 wind mills 15 km offshore must be safely collected, managed and transformed up from 33kV from the turbine to 132kV by the substation so that it can be ‘pumped’ onshore into the grid.
the code for offshore substations. DNV’s standard, which is also the industry standard for offshore substations, has helped companies like DONG Energy build to the highest safety and reliability standards. Ultimately, DNV certification provides proof of ‘fit-for-purpose’ to maintain the confidence of banks, investors, partners, regulators and the local community. Of course, the partnership works both ways. Mr Russo participated in DNV’s industry forum in 2009. Such industry forums are a vital element in sharpening standards as issues arise.
© Maersk
Forever on
As Mr Russo points out, “Building a machine that is supposed to stay on 24/7 for 25 years after you switch it on is no
small challenge. Loss of the substation for whatever reason simply means loss of revenue.” Mr Russo is onsite regularly, and in the closing weeks prior to ’sail away’, he will be living at the yard. And when the last check has been made, comes the epic move. “It’s like building a ten-story building and then moving it almost 2,000 miles to another, partly submerged location offshore, without breaking anything. I’ve done it several times now, but each move poses new challenges. So it’s good to have that experience and good partners to back us up, before we actually switch it on.” Knowing the attention and professionalism Mr Russo and his team have invested, the label on other side of that switch will most certainly say ‘success’. no 02 2011 – 35
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“Failure is not an option” “We have to decarbonise the world. The emission of CO2 from most of today’s power production has to be reduced significantly. Failure is not an option,” says Martin McAdam, CEO of Aquamarine Power. Text: Per Wiggo Richardsen photos: Orkney Media Group and Martin McAdam
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hese are Martin McAdam’s words – even if some of them have been used by others before. Mr McAdam is the CEO of Aquamarine Power, a wave energy company headquartered in Edinburgh, Scotland. The words by themselves can be perceived to come from a pessimistic man. But believe me, Mr McAdam is NOT. “This is our finest hour,” he continues. “Look at the opportunities that arise from decarbonising the world. The country or part of the world that can achieve this will be the ruler of the future.” Aquamarine Power’s team is composed of around 50 persons. Many of them are engineers – a mixture of graduate engineers working alongside highly experienced engineering managers – all focused on generating electricity from sea waves. The world has to be decarbonised
Mr McAdam is really eager to be a part of that future – to play a role in the decarbonisation of the world. Of course, he knows the restrictions on a wave energy company with a staff of 50, but he is very well informed about the UK’s renewable energy ambitions, and the company he is heading is a part of this massive UK renewable energy programme. 36 – no 02 2011
The launch of their first wave power device close to the shore at the European Marine Energy Centre in Orkney, Scotland was attended by Scotland’s First Minister Alex Salmond. This was a signal from the authorities emphasising Aquamarine Power’s role within that programme. Aquamarine Power is today a technology development company that is developing technology to generate power from sea waves. Its self-defined target is to deliver efficient and reliable products within four years. The technology has been designed to capture energy found in near-shore waves and converts it into electricity. Simplify – simplify – simplify
In principle, this is simple technology. A frame is attached to the seabed at a water depth of some ten metres, and a flap that is almost entirely underwater is hinged to the frame. Then the flap sways backwards and forwards in the waves, pumping water through pipelines to a power generator. All the electricity is generated onshore. I The finest hour. The sun is rising and Aquamarine Power is taking a stepwise approach to developing renewable energy generated by sea waves.
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I The technology has been designed to capture energy found in near-shore waves and converts it into electricity. 38 – no 02 2011
“It has been very useful to have an external, well recognised partner like DNV to review our development.” David Kaye, Aquamarine Power’s Engineering Manager
whole team that had been working hard to make it a success,” the CEO adds. But today Oyster 1 has stopped? “Oyster 1 has completed its mission. It was a technology demonstrator. We had gained the experience we were looking for and had taken an important step in our step-by-step approach.” Will see farms of power devices
I “We have to be eager to learn more and to transfer our knowledge into new technology. At the same time we have to commercialise this knowledge,” says Martin McAdam, CEO of Aquamarine Power, Edinburgh.
“Yes, it is simple technology, but it has to be simplified even more,” explains Mr McAdam. “To summarise our further development in three words, it will be simplify, simplify and simplify. “The installation process has to be simplified,” he says. “The maintenance of the whole system has to be easy. Note that this is underwater, and everything that is in wet conditions has to be simple, robust and reliable. Finally, the frame and the flap have to be shaped and include more redundancy – be simplified.” The power device is named Oyster 1. This has already proved that the idea is simple and feasible. When Scotland’s First Minister pushed the button in November 2009, the flap started to generate power immediately. “That was an emotional moment for both me personally and the
Aquamarine Power’s next major step will be to start up Oyster 2, which has three flaps – each of them bigger than the first one. The first unit in this mini farm is intended to start generating power in September this year. When the next two follow in 2012, 2.4 megawatts will be delivered from Oyster 2 – compared to Oyster 1’s 315 kilowatts. 2.4 megawatts is enough power to meet the needs of a small town of around 1,500– 2000 households. But when the technology is ready, multiple Oyster wave power devices will be deployed in farms typically producing 100 megawatts or more. The experienced CEO of Aquamarine Power has himself spent a number of years living in the US and has American space history as one of his hobbies. He is tempted to transform another famous quote from a different Apollo expedition: “We are taking small steps that can become an important step for humanity.” Inspired by American space history
“I know more about American space history than I can ever use,” he says. The quote
used in this article’s title has been ‘stolen’ from Gene Kranz, NASA’s flight director for the Apollo 13 programme. The second one – our finest hour – is also related to Apollo 13. Martin McAdam is at least as focused on the future and how to learn new things as he is on history and how to transform experience. Last year, when in his late 40s, he learned to ski. And enjoyed it. “I’m sure we all have much more to learn. We can learn from the past, and we can add new knowledge and find new solutions through research and innovation. When it comes to energy production, particularly wind-based, there are many success stories. “Other green sources must be developed too, and I’m convinced that the wave power developed by Aquamarine Power will become an important supplement to the range of renewable resources.”
DNV’s involvement: ‘DNV shall be certifying the Oyster 2 device for Aquamarine. The certification process has been developed by DNV since 2005 and allows its extensive experience in the maritime and offshore energy industries to be accessed by device developers in the wave and tidal energy industry. This enables campanies to develop their concepts in a robust manner with demonstrable management of risk.’
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The story behind a cup of coffee Illycaffè was established in Trieste in 1933 by Francesco Illy, a Hungarian World War I veteran. The city, located at the very tip of the Italian Adriatic Sea, has since become a recognised centre for coffee research and testing, and illycaffè is an internationally recognised sustainable producer of high-quality coffee. Text: Jannicke E. Witsø photos: Marino Sterle
Ms Anna Adriani, Director of Global PR and Global Responsibility at illycaffè – and a close confidante of Mr Andrea Illy, the current illycaffè Chairman and CEO and a third-generation Illy – has been instrumental in bringing the illycaffè brand and its dedication to sustainability to new heights. The company’s track record is impressive. Recently, illycaffè became the first company to receive DNV’s new Responsible Supply Chain Process certificate. Why is sustainability so important to illycaffè?
“When Francesco Illy started the company, he was adamant that it should be a familyrun stakeholder company with value creation throughout the chain. Thus, ever since, sustainability has remained at the core of the company’s values. You could say that sustainability is in the DNA of the Illy family,” says Ms Adriani. “To illycaffè, quality and sustainability go hand in hand – a good quality product is a sustainable product. Today, Andrea Illy brings his grandfather’s vision forward by stressing that sustainability creates value for everyone and that, in order to improve people’s quality of life, businesses should adopt a sustainable approach to their operations. 40 – no 02 2011
“In the early 1990s, the company realised that quality requires direct relationships with coffee growers. Thus we started a new production model and quickly established direct relationships with the growers in Central America, South America, Africa and India.” How does illycaffè work with sustainability?
“To illycaffè, sustainability has three aspects; social, environmental and economic. While economic sustainability is achieved through value creation for all those involved in the supply chain, social sustainability rests on the concept of self-realisation and individual growth. And environmental sustainability implies a respect for the eco-system. In recent years, illycaffè has adopted a fourpillar approach to sustainability. ”First of all we select the best growers. How we do this depends on the country. In Brazil, we established a prize for the best quality espresso coffee back in 1991. Coffee growers submit samples of their best crops and two juries – one in Trieste and one in Brazil – pick the best of the best. The winner receives USD 30,000 and is under no obligation to sell us his or her coffee. Although we hope they will,” Ms Adriani adds with a smile.
“Our second approach to sustainability is our Universitàs del Caffè or centres of excellence for coffee culture – targeting baristas, customers, coffee growers and consumers. The Universitàs are set up to promote and disseminate the culture of quality coffee. And they give us an opportunity to share with our stakeholders 70 years of historical research on the agronomy of coffee,” adds Ms Adriani. “Our third approach is buying the coffee directly from the growers, paying them more than the market price. During the coffee crisis a few years back, we consistently paid above-market prices. The reason is simply that we want the best quality coffee, and we know that when coffee prices fall, less money will be invested in quality. We hope that our direct relationships with the growers help make their business more predictable. “Our fourth approach to sustainability is to focus on creating communities. Let me give you an example. A few years back we set up a coffee club in Brazil for growers, baristas, hotel owners, customers and other stakeholders. We wanted to create a community characterised by a sense of sharing, mutual respect and dedication to the quality and excellence of coffee culture.
I “For illycaffè, it’s important to tell the story behind every cup of coffee. Basically, it’s about how quality and sustainability go hand in hand,” says Anna Adriani. no 02 2011 – 41
+ Focus: Europe
In recent years, I’ve visited some of our coffee club members in Brazil; when I see them proudly displaying diplomas for quality and excellence, I feel like we have succeeded in creating a community where the illycaffè brand has become synonymous with quality. When I hear our suppliers say that when they sell coffee to illycaffè they can sell coffee to anyone, I know we are on the right track,” says Ms Adriani. “Over the past two years, illycaffè has worked closely with DNV to develop a new innovative standard – the “DNV Responsible Supply Chain Process” standard – which certifies a responsible supply process. In addition to analysing the company’s processes and strategies according to sustainability factors, the standard also covers relations with stakeholders.” Why did you decide to obtain a green supply chain certificate?
“A product cannot be sustainable if the company itself is not sustainable. What we’re witnessing is a global trend where more and more people care about what goes on behind the product. We wanted a certificate because we needed a thirdparty witness to document what we do. We’ve worked with DNV before, so we asked them to develop a standard certifying our operations, including stakeholder relations. As opposed to many other certification schemes, we wanted to develop a scheme together where the burden is not on the grower. The standard is now open to all, but in particular to those companies with a specific supply chain involving countries in the developing parts of the world.” 42 – no 02 2011
How does illycaffè work to reduce its environmental footprint?
”In addition to focusing on reducing our environmental footprint in our relationships with stakeholders, we do a lot to reduce emissions at our factories. We are setting up solar energy heating, and currently our emissions to air are about 1/20 of what the law allows. We are also looking into a project that will transform energy from smoke and emissions to heating dur-
ing the winter months and cooling in the summer. We work constantly to develop new technologies that will reduce the environmental impact of our packaging. Today, our coffee box packaging is 100% degradable. Furthermore, we participate in a project that focuses on reducing the carbon footprint of the coffee plantations, both through our coffee universities and through renowned universities such as Oxford.
“These are some of the things we do in order to be a good corporate citizen. What matters is that our operations are sustainable, that our customers and suppliers are happy and that quality and excellence are at the core of everything we do. In the end, it is about the many stories behind every cup of espresso – about quality and sustainability going hand in hand, creating value for everyone.”
FACTS Illycaffè Illycaffè produces a unique blend of coffee based on the best Arabica beans nature can produce. Established in Trieste, Italy, in 1933, the company now has over 700 employees and markets its coffee in 140 countries worldwide. Today, the illycaffè group helps develop the global market for and culture of coffee by working on all the factors that go into the perfect cup of espresso; the blend, the machines, the preparation, the training of specialised bar staff and even the design of bars and venues where people can enjoy drinking coffee. Source: www.illy.com
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+ Focus: Europe
Changing the face of cancer care With the help of DNV, Macmillan Cancer Support recently launched a new standard designed to encourage cancer facilities to improve the quality of their overall environment.
Text: Jannicke E. Witsø Photos: Åsa Westerlund
In 1911, a young man named Douglas Macmillan watched his father die of cancer. Stirred by his father’s suffering and pain, the young Macmillan founded the “Society for the Prevention and Relief of Cancer”. 100 years later, his legacy lives on. Macmillan Cancer Support – the largest cancer care and support charity in the UK – still works towards improving the lives of those living with and beyond cancer. More than 12 million people were diagnosed with cancer in 2008 alone and the number of deaths from cancer is projected to reach 12 million globally in 2030. Luckily, with the help of improvements in diagnosis and treatment, many people live long lives with and after the disease. However, while the main focus remains on finding more effective clinical treatments, the physical environment in which cancer patients are treated tends to be less in focus. This is what Macmillan Cancer Support would like to see changed. Quality in focus
Simon Henderson, an architect and health building capital planner by profession, leads a team of ten people developing high-quality cancer care facilities throughout the UK in partnership with the National Health 44 – no 02 2011
Service (NHS) and other healthcare providers. He expanded the Macmillan Cancer Environments programme from its origins in palliative care into facilities for treatment, diagnosis, information giving and support. “During my time as an architect, I was often disappointed when a beautifully designed building was brought into use – often clinical and impersonal. Many healthcare buildings simply do not work as well as they were meant to. When it comes to people suffering from cancer, this is not good enough. In their case the environment becomes a crucial factor in their treatment and care.” Like Douglas Macmillan before him, Simon Henderson realised that the important thing was the connection between people’s well-being and the physical environment. “Evidence shows that people who are ill see things differently. When you are ill you see long corridors not as long corridors, but as endless tunnels to desperation. This is what emotional congruence is about,” he says. Specialised cancer personnel
The statistics are grim. One in three will get cancer. Thus, cancer affects everyone, either directly or through one’s next of
kin. With cancer becoming an integrated part of more and more people’s daily lives, there is a growing need for information, as well as practical, emotional and financial support. “Two million people live with or beyond cancer in the UK today. But with the medical advancements over the past years, people live longer with and beyond cancer. At the same time, people diagnosed with cancer tend to spend more and more time at home and less time in hospital. This means that the need for non-medical help increases rapidly,” says Simon Henderson. In the 1970s, Macmillan started working with the National Health Service (NHS) to train specialist nurses and doctors and focus on the physical environment of cancer facilities. Today, the number of Macmillan health professionals has reached more than 5,000, including doctors, nurses, radiographers, dieticians, occupational therapists and many other specialists. And just over 200 Macmillanfunded cancer care facilities have been built. Among the contributions of Simon Henderson and his team are the bringing of therapeutic gardens and art into clinical environments and the invention of a modular drop-in information pod.
I Simon Henderson expanded the Macmillan Cancer Environments programme from its origins in palliative care into facilities for treatment, diagnosis, information and support. no 02 2011 – 45
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Luckily, with the help of improvements in diagnosis and treatment, many people live long lives with and after cancer.
© Maersk
Simon Henderson, Macmillan Cancer Support
Furthermore, he recently launched the UK’s first nationally recognised Quality Mark for the physical environment of cancer care, backed by the Department of Health in England.
tion with volunteers (people affected by cancer), assesses and produces a report on the facility with a recommendation to Macmillan about whether or not the MQEM should be awarded.
The Quality Mark
The road ahead
The Macmillan Quality Environment Mark (MQEM) represents the first national standard for the patient experience in cancer facilities. 400 people diagnosed with cancer and other stakeholders, including the Department of Health, were involved in the development of the standard. “The standard has emotion in it,” says Mr Henderson, adding that “my greatest inspiration behind the standard was the personal stories of people with a direct experience of cancer.” The result was a benchmark that encourages cancer facilities to improve their physical environment in such a way that they meet the standards required by people living with cancer themselves. Although the MQEM is included in the UK Government’s cancer reform strategy, it is a voluntary programme. Once a hospital or cancer facility has completed the self-assessment tool, it submits a request for assessment to Macmillan. DNV’s UK Healthcare and Biorisk team has been appointed as the external assessment who, in conjunc-
40 facilities have been awarded the MQEM in its first year. The aim for 2011 is to formally assess a further 35 NHS-run cancer facilities in the UK within which Macmillan currently provides services, plus any others that apply. However, according to Simon Hender son, there remain a few challenges with regard to reaching the widest audience of potential applicants. “This is a voluntary tool – and because we initially promoted it through our regional teams rather than nationally, the standard didn’t penetrate the national market. That’s why we ramped up the national coverage at the end of last year,” he says. Another challenge was the perception among some cancer care facilities that the standard is out of reach for those who do not initially meet the requirements. “Macmillan has set aside a fund to support facilities wishing to improve and assist them towards the MQEM. It is not a mark of failure not getting it. However, it definitely is a mark of excellence getting the MQEM award,” says Mr Henderson. no 02 2011 – 47
+ Health care
Iasis:
Taking healthcare to a higher level Carl Whitmer is a man with a mission. The president and Chief Executive Officer of IASIS Healthcare Corporation (IASIS) is determined to make the company the healthcare provider of choice. Nine months after taking up his appointment, the signs are positive. Text: stuart brewer photo: Brydget/BCPhotographics
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t IASIS, our mission is to become the healthcare provider of choice in the communities we serve,” says Mr Whitmer. “We are highly motivated and compassionate people and continually strive to improve the quality of life for our patients and their families.” Located in Franklin, Tennessee, IASIS is a leading owner and operator of 18 medium-sized acute care hospitals and one behavioral health hospital in high-growth urban and suburban markets. Its hospital facilities have 4,362 licensed beds and generate annual net revenue of approximately USD2.8billion. As part of its commitment to operational excellence, IASIS has created a quality strategy and infrastructure called the Hospital Medical Management & Quality Program (HMMQP), which standardises data-driven performance management procedures across its hospital system. The HMMQP strategy is focused on raising awareness among clinicians, ensuring effective care capture through documentation improvements and integrating best practices into the company’s overall delivery of care. Quality improvement initiatives
“Put simply, the overall goal of the HMMQP is to continually improve the quality outcomes at all of our hospitals by equipping our leaders with broad 48 – no 02 2011
data access and process improvement skills,” explains Mr Whitmer. “Soon after its creation, we decided to go above and beyond the basic requirements for quality reporting and subsequently expanded the HMMQP into a sophisticated system identifying and prioritising clinical goals and strategies around a number of quality improvement initiatives.” He continues, “The new processes and procedures that we developed have led to substantial improvements in the overall quality of care we provide at each of our hospitals. Some of the notable year-overyear average composite quality improvement scores include a 7% improvement in pneumonia prevention, an 11% improvement in surgical infection prevention and 61% reduction in hospital-acquired vascular-related blood stream infections.” Positive results
“We are extremely proud of our quality initiatives spearheaded by our clinical operations team and supported by the IASIS physicians. As healthcare providers we have to show that we are making efforts to improve healthcare delivery.” And the company has amply demonstrated as much. In 2010, IASIS was awarded two Thomson Reuters Healthcare Advantage Awards for demonstrating success with improving quality and managing the cost of health-
care across its acute care hospitals. The panel of judges not only recognised IASIS’ clinical outcomes results but also its overall performance, which was billed as ‘the best of the best’ award. “We were delighted to be honoured for our quality improvement initiatives, but we are not resting on our laurels. We are looking forward to continuing these improvements in the future,” he emphasises. After giving this interview, IASIS was awarded another Thomson Reuters Healthcare Advantage Award in 2011 for its clinical performance. DNV accreditation
Based on its culture of continuous improvement, IASIS has selected DNV Healthcare Inc. to provide accreditation services for its hospitals. In doing so it became the first health system in the US to achieve DNV accreditation across its entire network of hospitals. “Accreditation is extremely important as it recognizes a commitment to provide the highest quality of care for our patients. The DNV NIAHO® program offers a new approach as it focuses not only on the business processes but also on finding better ways to improve healthcare delivery. Indeed, having the opportunity to use a variety of available evidence and best practices to determine what is most appropriate for our hospitals is one of the reasons
I “IASIS is committed to building a best-practice quality infrastructure as it continues to pursue its goal of providing the best possible care to its patients,” says IASIS President and CEO Carl Whitmer (right), here with Yehuda Dror, managing director of DNV Healthcare Inc.
we decided to use DNV as our accrediting body,” says Mr Whitmer. According to Patty Scott, IASIS vice president of quality and risk management, IASIS management and staff have embraced the new survey system as a way to identify and focus on new approaches to patient care and other critical aspects of running modern hospitals. “We are fortunate to have a leadership team and workforce that are dedicated to improving healthcare delivery. As one physician executive put it, ‘with our old accreditation program, we spent too much time focusing on minutia.’ For dedicated caregivers, minutes are far more important than minutia; and the time spent in the accreditation process should be inspired by and contribute directly to better patient care.” She adds, “DNV Accreditation is truly outcomes driven. By using ISO 9001 quality principles in concert with Medicare COPs,
DNV NIAHO® allows individual hospitals to find the best way to serve their patients.” “This is a major step in the evolution of hospital accreditation – not only for us, but for all hospitals and health networks looking for better ways to employ required tools like accreditation in game-changing ways,” adds Yehuda Dror managing director of DNV Healthcare Inc. Fundamental challenge
Turning to the subject of future developments in the healthcare industry, Mr Whitmer believes health systems in the US will continue to face the same fundamental challenge: how to deliver broad access to health services while improving quality of care and controlling costs. “Historically, the healthcare industry has always gone through periods in which it experienced tremendous change. However, the changes we’ve experienced
over the past decade – mostly due to technology advances – have been much more rapid than anything we’ve ever seen. And, the changes we experience over the next five years, again because of technology but also because of healthcare reform, will be even more significant than the tremendous strides we’ve seen over recent years. “As for the reform, I firmly believe that we are at a pivotal point in healthcare. In order to succeed under the new reform guidelines, healthcare providers must figure out a way to evolve the way in which we deliver care,” says Mr Whitmer and concludes, “To do that, true collaboration among hospitals, physicians and even patients must begin to take shape. At IASIS, we are excited about the challenge and working hard to find game changing strategies, including our work with accreditation bodies like DNV.
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+ Maritime industry
Piracy must be defeated Piracy is the most significant and serious matter for the maritime industry today, according to Jeff Lantz of the USCG. Next on his list is the environmental aspect, specifically air emissions and ballast water. Nominated as the US candidate for the IMO Secretary General position by US Secretary of State Hillary Clinton, Jeff Lantz is ready to make a contribution. Text: Blaine Collins photo: Victoria Bonk, USCG
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eff Lantz, the USCG Director of Com mercial Regulations and Standards, has developed an expansive view of international marine safety issues throughout his 36 year career in the US Coast Guard, 25 years on active duty and 11 years in senior executive civilian positions. Mr Lantz is also Chairman of the International Maritime Organization’s Council, the organisation’s second highest governing body and the U.S. Head of Delegation to the Maritime Safety Committee, the Marine Environment Protection Committee and other subcommittees. In this capacity he represents the U.S. on numerous regulatory issues within the international commercial maritime industry – including piracy and maritime security, green house gas emissions, the human element, ballast water management, and passenger vessel safety. His international experience shines through as he ticks off the most pressing industry issues in the coming years. “The top of the list,” he says, “is piracy. Piracy is one of the most significant issues facing the maritime industry today – it is extremely disruptive, but even more importantly, it has a major impact on the most vital aspect of our industry, the seafarer. This is the most significant and serious matter, and the IMO has a definitive role in anti-piracy efforts.” 50 – no 02 2011
He then adds to his list the environmental issues, specifically air emissions and ballast water, which reflect society’s continuing and increasing concern for the environment, with an astute observation: “Often these increased demands collide with concerns for improved standards of living or technological advancements. IMO must include the considerations of all members and develop solutions that can be widely embraced. The maritime industry is one industry; regional and unilateral impositions are detrimental, they distort markets and diminish globalised trade. Most importantly, they do not provide the international solution that meets society’s demands.” Empathy and warnings
Mr Lantz’ reflection in the relationship between the US, the EU and the IMO shows a great deal of empathy, understanding, and some sharp warnings, as well. “The US, the EU and the IMO have a good, and evolving, relationship, which is natural as countries change. But it isn’t only the US, the EU and the IMO anymore. We also have to recognise the increased influence that other countries are exerting, as is the case with China, Brazil and India.” Then he offers a gentle warning that, if he is elected IMO Secretary General, he will defend and reinforce the IMO’s
position. “Presently,” he says, the EU is very influential because of its ability to harmonise positions among the EU member states, some would say too influential. I believe that one of the IMO’s strengths is that it is mainly a technical organisation and, for the most part, decides on issues based upon technical merits. I would be concerned if the IMO morphed into groups of regional political alliances, because I’m not sure that is good for the IMO or the global community.” Mr Lantz also chaired the first IMO Working Group on Goal-Based Standards, but, as he sees it, implementation of such standards was more evolutionary than revolutionary. “In actuality,” he points out, “the IMO has been proceeding down this path for some time. Look at the Safety of Life at Sea (SOLAS) Convention. In Chapter II-2, each regulation includes the purpose, essentially defining the level of performance that the regulation is to achieve. And there is an added benefit to the industry because by defining the goal, the shipowner is given the flexibility to seek equivalent when they have come up with a new and novel way to meet the goal.” Risk-based principles
Mr Lantz also sees the IMO incorporating more risk-based principles into goal-based standards, provided an appropriate bal-
I “Globalisation is not possible without shipping. The world must see shipping as the provider of fresh food, energy and other vital commodities in the most efficient, safe, secure, and environmentally friendly manner of all transportation modes,” says Jeff Lantz who is nominated as the US candidate for the IMO Secretary General position.
anced is maintained. “We could write all of the regulations in terms of risk performance and then place the burden on the owner to demonstrate how the risk is managed,” he says, adding, “This can also be the most expensive and, for many ship types, may be excessive. For ships with low risk, low consequence and low probability, owners simply want to know the minimum requirements and least burdensome way to comply. As regulation writers, we need to develop regulations that accommodate both.”
From the many years he has headed the US delegation to the IMO Marine Safety Committee and Marine Environmental Protection Committee, he humbly recalls some of the most interesting things he has learned. “Overwhelmingly, all delegates are dedicated, hard working and genuinely interested in safety, security and environmental protection. I also learned how to listen to people – and listen carefully. Sometimes, a disagreement may be nothing more than a language barrier or mis-
understanding, or it may be an aspect that may seem unimportant to me but is very important to others. Maybe I knew that the art of negotiating can be frustrating and tiring, but I learned first hand that the reward of reaching consensus with some hard work and considering the views of all the delegates is very rewarding because, in the end, you know that the result will be widely embraced and implemented.”
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+ Wind energy
Winds of change Puget Sound Energy changed the game for regulated utilities developing renewables Text: Kim Hamilton photos: Mychal Richardson and Wind farm photos: Puget Sound Energy
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nter Roger Garratt, Director of resource acquisition and emerging technologies for Puget Sound Energy (PSE). When he started at PSE in 2003, he was fresh from shepherding through Pacific Gas and Electric’s $730 million La Paloma project in Southern California – an 1,100 MW natural gas fired combined cycle project charged with more efficient energy production. Mr Garratt’s experience at PG&E, and his degrees in both electrical engineering and business, allowed him to see an opportunity to help transform the way investorowned utilities acquire energy for their customers. In the early part of this decade, the model was to contract with third-party developers, who developed, then “flipped” the business. Mr Garratt thought it made sense for PSE to get into the business of energy ownership and operation to gain greater control, and provide energy to customers at a lower cost. Opening move
The regulatory and financial challenges might have daunted others. Regulated utilities are traditionally risk-averse organisations, focused on delivering lowcost electricity reliably. The naysayers were numerous, but Mr Garratt’s team persisted. In 2005, his team petitioned the Internal Revenue Service to obtain a 52 – no 02 2011
game-changing ruling: that investor-owned utilities could use Production Tax Credits for renewable energy sold to third parties. This opened the door for utilities to own large-scale wind and solar operations. Today utilities across the country have benefited from this ruling, developing 4,700 MW of wind power capacity. Over the past seven years, Mr Garratt’s team has acquired over 1,400 MW of new gas-fired, wind and solar photovoltaic energy generation valued at over $1.1 billion. His newest project, Phase I of the Lower Snake River wind project in Southeast Washington, will add another 343 MW of wind energy, nearly doubling PSE’s current wind power generation. Upon completion of Phase I, PSE will have invested roughly $2 billion in new power generation under Mr Garratt’s tenure, and will have enough wind power in its portfolio to serve about a quarter of a million homes. On the challenges of being an investorowned, regulated utility with a charge to grow, Mr Garratt says. “It’s like playing 3-D chess, a real intellectual challenge every day. It takes patience and endurance, and a stellar team to be successful in this rapidly changing game.” He continues, “As a regulated utility in Washington we are required to have an Integrated Resource Plan, driven by the least-cost criteria.” Cost includes risk and
environmental impact, which can bring the cost of renewables more in line with traditional Northwest power sources, such as coal-fired and hydroelectric. Anticipating the play
In 2006, Washington State voters passed a law requiring utilities to produce 15% of their power from renewable sources by 2020 – in graduated stages. “We established the viability of renewables long before the state mandate,” Mr Garratt notes. “And currently wind energy is the most costcompetitive renewable resource. When we bring Lower Snake River online in 2012, we will have exceeded the state requirements for the first two stages of the process.” Sometimes being a regulated utility in a wildly fluctuating energy market can be volatile. But Mr Garratt launched another innovation. “As the market became hotter, we changed our business strategy for acquiring renewables. We simply moved further up the development chain, taking on the siting and permitting, the wind resource assessment, and the preliminary engineering, which had all previously been handled by private developers.” Raising the Stakes
DNV (who purchased Global Energy Concepts in 2005) has consulted with PSE on all three of their wind development
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+ Wind energy
I “With wind turbines costing a couple of million dollars apiece, you have to be able to trust the data in a competitive review. We rely on dnV to help us evaluate equipment and develop an accurate, realistic picture of a project,” says roger Garratt, director of resource acquisition and emerging technologies for Puget Sound energy.
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“First there is the power of the Wind, constantly exerted over the globe... here is an almost incalculable power at our disposal, yet how trifling the use we make of it.”
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Henry David Thoreau, 1843
projects. As the independent technical experts, DNV’s reports on resource management and wind energy assessments are trusted by state regulators and critical to the permit and review process. DNV also helps vet possible expansions, and renders expert opinions on turbine models. Is Mr Garratt bullish on wind for the future? “We do see wind increasing its share in the portfolio, particularly with Lower Snake River coming on line.” Already the nation’s second-largest utility producer of wind power, PSE has 430 MW of generating capacity. Lower Snake River will significantly enhance this position, powering up another 100,000 homes with renewable energy. This dramatic increase is not without its challenges. Mr Garratt notes, “To deliver power from Lower Snake River to customers in Puget
Sound, a distance of some 300 miles, will involve PSE cooperating with other regional utilities for integrating new power sources onto the grid and transporting that power.” Adds Kevin Smith, DNV Seattle: “The Pacific Northwest lacks a regional transmission organiser. That means each utility has to manage its own systems for forecasting, tracking, scheduling, and transferring power, as well as establishing regulatory protocols. All of this will have to be enhanced and coordinated to enable fullscale build out of Lower Snake River.” If Mr Garratt’s chess metaphor is apt, then tackling the Lower Snake River project is like playing in the finals of the World Chess Cup while paddling down a Northwest river in a canoe. It’s likely that Mr Garratt will relish the challenge. no 02 2011 – 55
+ Ship classification
Into the wind Established in 2008, Fred. Olsen Windcarrier is a new player in the wind turbine installation market. But with two purpose-built vessels now under construction, the company is preparing to take a bold step into this growing segment. Text: Alex Wardwell photo: DNV/Nina E. Rangøy Illustration: Fred. Olsen
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ver the past decade, rising fuel costs and concerns about the environment have resulted in new regulations on carbon emissions and corresponding investments in renewable energy technologies. At the same time many countries, particularly in Europe, have announced ambitious carbon reduction targets, with a focus on renewable energy – especially wind. According to the Global Wind Energy Council (GWEC), the global wind power capacity is currently about 185 gigawatts. However, capacity is expected to expand to about 2,300 GW by 2030, when it will provide an estimated 22% of the world’s electricity needs. While many wind farms will be land-based, these installations often face local opposition, encouraging many energy companies to develop offshore solutions, creating demand for installation services. Tor Erik Andreassen, managing director of Fred. Olsen Windcarrier, says serving this market is a natural fit for the company. “Fred. Olsen has been a pioneer in the shipping and offshore industry for many decades, so we have the experience and competence to manage complex projects at sea,” he says. “At the same time, the company has been active in renewable 56 – no 02 2011
energy since 1997, when the company installed its first wind farm in the Scottish highlands. The only thing we needed to enter the offshore wind turbine installation market was the right kind of vessels.” Fred. Olsen Windcarrier decided on a newbuilding programme for two purposebuilt wind turbine installation units (WTIUs), specifically designed for optimal performance and flexibility. The vessels include a number of innovative features. They are self-propelled, self-elevating vessels that can operate in water depths of 45 metres. The high performance continuous hydraulic jacking system is designed for frequent and rapid jacking, allowing for faster installation times. The vessels are equipped with an 800-tonne capacity crane which wraps around the stern port leg, allowing for greater stability and making room for a large and accessible deck space measuring 3,200 square metres. “A lot of deck space allows us to carry more turbines and pylons, which means fewer trips to shore,” explains Mr Andreassen. “And the high-capacity crane allows for greater operational flexibility.” High manoeuvrability
Two propellers power the vessels; a highly manoeuvrable marine propulsion system
I “Fred. Olsen has been active in renewable energy since 1997, when the company installed its first wind farm in the Scottish highlands. The only thing we needed to enter the offshore wind turbine installation market was the right kind of vessels,” says Tor Erik Andreassen, managing director of Fred. Olsen Windcarrier. no 02 2011 – 57
+ Ship classification
I When completed, the Windcarriers will be among the largest purpose-built wind turbine installation units on the market.
that reaches speeds of up to 12 knots and changes the direction of its thrust almost instantaneously. The internal gear changes the angle of the blades in sync with the rotation of the plate, so that each blade can provide thrust in any direction. Together with the three automated bow thrusters, the propulsion system limits rolling and allows for excellent station-keeping. “Our ability to get to a site quickly and complete installations without delay is critical to our approach to this kind of installation work,” says Mr Andreassen. A class apart
To class the vessel design, Fred. Olsen Windcarrier worked with DNV, which has emerged as the industry’s leading class society for WTIUs. Henning Carlsen, business development manager in DNV’s 58 – no 02 2011
Offshore Classification unit, says that the segment requires a different approach to safety and technical issues. “When completed, the Windcarrier units will be among the largest purpose-built WTIUs on the market,” he says. “These vessels are equipped with large cranes; this required an analysis of the interaction between the crane and the legs to ensure safe operation. Our job was to verify the safety of these units.” The Windcarrier newbuilds are classed in accordance with DNV’s new standard for classification of WTIUs. For Fred. Olsen Windcarrier, DNV’s expertise in this market segment made them an attractive partner. “Fred. Olsen has a long relationship with DNV, and their reputation and competence in this area made them the logical choice,” says Mr Andreassen.
A promising start
At present, Fred. Olsen Windcarrier has two WTIUs under construction, scheduled for delivery in 2012. The company also owns a small fleet of service and crew boats to support maintenance projects, and has taken out an option on two more WTIUs. While Mr Andreassen acknowledges that the units were built on spec, he notes that the company has already secured its first charter. “Based on increased activity in this segment, we believe we have entered the market at the right time and with the right assets,” he says. “We anticipate that potential customers – which include manufacturers, contractors or energy companies – will recognise the advantage of using these purpose-built WTIUs.”
research and development
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technoloGies towArDs 2020 dnv’s TecHnology ouTlook 2020 rePorT HigHligHTs TecHnologies THaT could Have greaT imPacT in THe mariTime and energy secTors during THe nexT decade. TexT: Per busk cHrisTiansen
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lisabeth harstad, managing director of DnV research and innovation, believes that “technology is a vital part of the solution for many of the global and industry challenges facing us today. the best way to be prepared for the future is to have a broad view over technologies from the many industry sectors which we serve.” the report looks at future technologies in four main areas: shipping, fossil energy, renewable and nuclear energy, and power systems. the report also covers global megatrends which DnV believes will affect developments in the selected areas. within the shipping area, sustainable solutions are discussed through innovative ships designs and port solutions. within the fossil energy area, ms harstad comments: “we will see increasingly more advanced subsea oil and gas production systems being used for separation and boosting, and drilling and intervention technology will diversify, apply smarter monitoring and increase efficiency.” ms harstad predicts that the large scale of co2 capture and storage technologies will still be limited and technologies for co2 utilisation will be developed and struggle to commercialise. with respect to wind energy, she believes that “we will see offshore and onshore going in different directions: onshore staying about the same size as today, though becoming smarter. commercial offshore turbines might reach a capacity of 10mw. solar heat and power will grow.” to make headway towards a low-carbon economy, ms harstad thinks innovative power transmission systems will be one of the major issues to deal with to achieve a smooth transition.
I dnV is on a world tour with the Technology Outlook 2020, where the main hubs (including rio, Houston, Singapore, Shanghai, Seoul and others) are making presentations to employees, customers, and journalists. no 02 2011 – 59
+ Ship classification
Keeping reputation afloat Hong Kong-based Fleet Management Ltd minimised the impact of a Port State detention and improved for the better.
Text: Per Busk Christiansen photos: DNV/Nina E. Rangøy
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ere shipping companies to rank their worst nightmare scenarios, a serious accident at sea would clearly top the list. On that same list, and not too far down, would be a vessel detained by Port State authorities. It is certainly a good enough reason for waking up the managing director of a ship management company in the middle of the night. That is exactly what happened to Kishore Rajvanshy, managing director of Fleet Management Limited, on 15 March 2010. A 30,000 gross tonne multi-purpose bulk carrier, entering a European port, was met by inspectors from the country’s Port State authorities. They decided to detain the DNV-classed ship because of the way it had handled dirty washing water from cleaning the cargo holds. Reputational and commercial consequences
The supramax bulk carrier is part of a 220-strong fleet operated by the company – one of the world’s five largest ship management companies, a position gained within just 15 years. According to Mr Rajvanshy, it happened almost by itself, based on its reputation of quality. They pride themselves of a record where almost 60 – no 02 2011
80% of inspections of their ships result in zero deficiencies. For the past three years, they have been awarded best manager in Hong Kong for their Port State Control detention record under Paris MoU, Tokyo MoU and US Coast Guard regimes. “So I was shocked when I learned about this detention,” Mr Rajvanshy recalls. Port State Control is the inspection of foreign ships by port authorities to ensure compliance with applicable regulations on maritime safety, pollution prevention, manning, and working and living conditions onboard. The objective is to identify and remove sub-standard ships. A detention has serious consequences. First, it impacts the rating of the vessel. RightShip is the vetting scheme for bulk carriers, operating with a five star rating system. A detention would mean that your rating drops by two stars, and is also a mark on the whole company, being the most officially available measure of quality for the entire maritime industry. And it takes minimum a year before the detention is removed from the records and you can start re-earning a higher rating. Pollution or pollution prevention?
The supramax’ last cargo was petcoke (petroleum coke). When washing out the
cargo holds, the Master decided to transfer the dirty washing water to a ballast tank using pumps with flexible pipes, to avoid polluting coastal water and with the objective of pumping it out again and cleaning the ballast tank outside the 12 nautical mile zone as defined by the applicable regulation. The Port State Control officer, however, focused on the facts that the ballast tank was dirty from washing water, and that there were no arrangements or procedures for transferring washing water to the ballast tanks. The vessel’s flag administration (Norway) and class (DNV) were also notified. Fleet Management soon derived that the reasons for detention were unjustified, arguing that the measures were taken by the Master to avoid pollution – not cause it. The ship was released, but the grounds for detention were upheld. Fleet Management therefore decided to appeal the decision. DNV found that no specific regulation had been breached and that petcoke was not on any list of pollutants. A thorough report was made and appended when DNV, on behalf of the Norwegian flag administration, took the rare step to appeal to the Paris MoU Secretariat, which agreed to form a review panel.
I “We had a ship detained, but the detention was later lifted. The incident gave us an opportunity to change for the better. DNV has been extremely supportive on this case,” says Kishore Rajvanshy, managing director of Fleet Management Limited. no 02 2011 – 61
+ Ship classification
I Kishore Rajvanshy (left), managing director of Fleet Management Limited in discussion with DNV’s Kaveh Mansoorian.
In parallel, Fleet Management started implementing corrective actions to avoid similar issues in the future. Since the vessel’s detention, the company has been working with DNV to put new procedures into place and to design designated tanks for washing water on their entire fleet of 75 bulk carriers. Today, none of their vessels are allowed to carry out this operation without prior approval from DNV. Reputation is everything
The detention did not cause significant costs, but it meant a lot of extra effort. The real potential impact was on the company’s reputation, though. “DNV has been extremely supportive on this case and has taken it very seriously,” says Mr Rajvanshy. In September 2010, the Paris MoU review panel concluded that the mentioned deficiencies were not sufficient grounds for detaining the ship. For Fleet Management, a dent in their reputation was prevented, and at the same time, the incident gave them an opportunity to change for the better. 62 – no 02 2011
no 02 2011 – 63
+ Last word
The future of shipping – from the point of view of a traditional German shipowner We are currently on the clearly noticeable road to recovery from the crisis; charter rates are rising, slowly but surely. However, we shipowners are already being exposed to new challenges. One instance of this is the reduction in the maximum allowable sulphur levels: as of 2015, for example, ships can only operate in the Baltic Sea using fuels containing not more than 0.1% sulphur. In my opinion, this regulation does little to support our sustainable environmental efforts in this particular region. In fact, due to this regulation, it is more likely that the extensive flow of cargo will be diverted to road transportation – away from efficient and demonstrably environment-friendly ocean freight transportation. For many years now, the maritime sector has been continuously working to optimise ships through, for instance, creating efficient engines, modern hull forms and alternative fuels. These are industry-related ways in which we are responding to the problems of pollution and climate change.
C. Thomas Rehder Managing partner of the shipping company Carsten Rehder GmbH & Co KG. Member of DNV Board of Directors.
DNV is an important partner here, as an independent foundation that has made long-term investments in research and development, regardless of crises. It has carried out ground-breaking studies on the use of LNG as ship fuel. Gas is low in CO2 and sulphur and is therefore a truly environment-friendly alternative. In the Quantum project, DNV presented a further future-oriented study relating to a new container ship. The idea is primarily to spark a debate on innovations in container shipping. The Triality concept for new oil tankers is also interesting to the maritime sector.
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Our maritime industry in general and shipowners in particular are facing major challenges.
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Germany is an important location for the maritime industry. Around half of all DNV-classified container ships are operated by German owners. Our company, Carsten Rehder, currently operates 21 ships, five of which are classified by DNV. DNV’s Hamburg office and headquarters in Oslo have proven to be long-term reliable contacts for all of our maritime issues. Emissions trading and the reduction of CO2 emissions are issues with which our industry will continue to particularly concern itself in the future. Here, I envisage a potential area of activity for DNV to present proposals that will enliven the discussions. There are opportunities here for DNV – with its international expertise as an independent institution – to exert its influence in favour of a holistic, environment-friendly approach. Here, DNV can position itself clearly as a Norwegian foundation with globally accepted values, such as the safeguarding of health, safety and the environment. Our maritime industry in general and shipowners in particular are facing major challenges. The voice of an independent foundation has considerable authority here. I am relying on this voice.
64 – no 02 2011
Š Getty Images
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GLOBAL PRESENCE DNV IS A GLOBAL PROVIDER OF SERVICES FOR MANAGING RISK, HELPING CUSTOMERS SAFELY AND RESPONSIBLY IMPROVE THEIR BUSINESS PERFORMANCE. DNV IS AN INDEPENDENT FOUNDATION WITH A PRESENCE IN MORE THAN 100 COUNTRIES.