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Outcome from MEPC 61 on Energy Efficiency Regulations Tripartite Meeting Tokyo, 15 -16 October Outcome from MEPC 61 on Energy Efficiency Regulations Tripartite Meeting Tokyo, 15 -16 October 2010 A. K. Seah IACS EG/ENV Chairman

Contents Going into MEPC 61 Outcome from MEPC 61 } Decisions in plenary } Contents Going into MEPC 61 Outcome from MEPC 61 } Decisions in plenary } Draft regulations } Guidelines 2

IMO Intersessional EE-WG Improved draft regulatory text for EEDI & SEEMP } Undecided issues: IMO Intersessional EE-WG Improved draft regulatory text for EEDI & SEEMP } Undecided issues: ship size cut-off; EEDI baseline and reduction rates; phases of implementation; SEEMP approval… Guidelines – at various states of readiness } for calculating EEDI } for verification of EEDI } for calculating EEDI baselines Influence on safety } Speed reduction; structural enhancements 3

EE-WG: Draft regulatory text EEDI baseline existing regression formula retained (EEDI = a × EE-WG: Draft regulatory text EEDI baseline existing regression formula retained (EEDI = a × capacity c) Ship size ≥ 400 GT, EEDI to be calculated; ships ≥ cut-off limits in DWT, attained EEDI ≤ required EEDI } Various cut-off limits to be decided in MEPC 61 Target years and phases ≥ 2013, undecided as to phases } If 3 phases: 5 years each } If 4 phases, 1 st phase (Phase 0) 2 -5 years; rest 5 years Reduction from baseline set with various reduction rates } E. g. for tankers 10, 25, 35%; if Phase 0, 0% SEEMP loose agreement on whether Administration approval is needed; be part of SMS 4

EE-WG: Guidelines for calculation of EEDI } Ship type issues: ro-ro ships (65% DWT? EE-WG: Guidelines for calculation of EEDI } Ship type issues: ro-ro ships (65% DWT? ); diesel electric propulsion (? ); dual-fuel engines - use primary fuel (? ) } Correction factors: fj for shuttle tankers with redundant propulsion; fi for voluntary structural enhancement (? ); fw – need for guidelines emphasized } Electric power table: guidelines introduced } EEDI formula: PPTO – need to avoid “overcompensation”; need to allow for CO 2 abatement system 5

EE-WG: Guidelines for verification of EEDI } Draft text for guidelines for survey and EE-WG: Guidelines for verification of EEDI } Draft text for guidelines for survey and certification of attained EEDI for further consideration; boxed texts Calculation of EEDI baseline } Baselines are to be treated as “reference lines” for developing required EEDI } Guidelines for calculating reference lines developed Guidelines for development of SEEMP } Need to develop supplementary guidelines in future for activities associated with search and rescue operations 6

Safety issues Safety should be not be compromised in seeking environment protection Motivation for Safety issues Safety should be not be compromised in seeking environment protection Motivation for “under power” to minimize EEDI – minimum power and speed should be established Voluntary structural safety enhancement should not be penalized in EEDI – compensated by a fi in EEDI formula (Greece) Compensate for heavier scantling of CSR-compliant ships with f. CSR in EEDI formula (China) 7

IACS Submission to MEPC 61: Ambient conditions for electric power table At issue: footnote IACS Submission to MEPC 61: Ambient conditions for electric power table At issue: footnote in 2. 5. 6. 3 of draft guidelines on method of calculation of attained EEDI on electric power table referring to ambient conditions IACS proposal } Ambient conditions in class rules are for rating of equipment; not relevant to electric power table } Where ambient conditions affect electric power table, contractual conditions should apply MEPC 61/5/31 - IACS proposed revised footnote 8

IACS Submission to MEPC 61: Correction factor fi for structural enhancement At issue: fi IACS Submission to MEPC 61: Correction factor fi for structural enhancement At issue: fi the capacity correction factor proposed for voluntary structural safety enhancement } IACS shares the view that voluntary structural safety enhancement beyond regulatory requirements should be compensated - but shares concerns for “reference ship” } IACS proposed that compensation should not be recommended until guidelines are developed At issue: fi the capacity correction factor proposed for CSR-compliant ships } IACS holds the view that the matter of slightly heavier scantlings for CSR-compliant ships should be addressed by the setting of the required EEDI MEPC 61/5/30 - IACS proposed positions 9

IACS submission to MEPC 61: Insert text for minimum installed power At issue: the IACS submission to MEPC 61: Insert text for minimum installed power At issue: the lack of provision in the draft Regulations for Energy Efficiency for Ships to address the issue of minimum installed power to enable safe navigation in severe weather MEPC 61/5/32 - IACS proposed text for a new paragraph in Regulation 4 For each ship, to which this regulation applies, the installed propulsion power shall not be less than the propulsion power needed to maintain the manoeuvrability of the ship under adverse conditions as defined in the guidelines to be developed by the Organisation. 10

IACS Initiative Investigating minimum installed power IACS forming project team with a view to IACS Initiative Investigating minimum installed power IACS forming project team with a view to submit preliminary findings to MEPC 62 Issues to be investigated } Review literature and capture experience from seafarers } Define reference severe conditions } Define maneuverability standard } Perform seakeeping and maneuverability analyses in reference severe conditions for given ships } Make preliminary proposals Hold industry workshop to discuss preliminary findings 11

MEPC 61 MEPC 61

Decisions in plenary for MEPC 61/5 Chosen presentations in plenary } Vanuatu paper on Decisions in plenary for MEPC 61/5 Chosen presentations in plenary } Vanuatu paper on EEDI for ships of special circumstances (ships serving remote islands) • Not supported } USA paper on criteria for allowing correction factors in EEDI formula • For WG consideration } Singapore paper on CO 2 abatement technologies • For WG consideration; need further studies } IACS paper on minimum installed power • WG to incorporate Other instruction to WG } Remove reference to Annex VI and the word “mandatory” from the draft regulatory text 13

Draft Regulatory Text Application of regulations – to ships ≥ 400 GT } EEDI Draft Regulatory Text Application of regulations – to ships ≥ 400 GT } EEDI requirements for only 7 ship types: 1) bulk carriers, 2) tankers, 3) gas tankers, 4) container ships, 5) general cargo ships, 6) refrigerated cargo ships, and 7) combination carriers. } Exclude: ships with steam, diesel-electric and hybrid propulsions CO 2 abatement technologies } * By linear interpolation Singapore’s proposal not supported by WG as it deemed the technology not ready 14

Draft Regulatory Text Definition of major conversion } Retained “substantial” Survey after major conversion Draft Regulatory Text Definition of major conversion } Retained “substantial” Survey after major conversion } “partial survey” if conversion is not “extensive” } Initial survey if conversion is “extensive” Major conversion • Substantially alters dimensions, DWT, power • Change ship type • Substantially prolong life • Substantially alters energy efficiency Duration of certificate (IEEC) } Valid for the life of the ship except where there is major conversion or change of flag Improvement may be needed for survey for conversion, e. g. : } A survey should be conducted to verify if the parameters affecting EEDI are changed } If so, EEDI should be recalculated, EEDI Technical File revised, IEEC endorsed } Determination made if Vref is to be re-verified 15

Method of calculation of EEDI The Guidelines (MEPC 61/5/3 Annex 2) largely retained Remaining Method of calculation of EEDI The Guidelines (MEPC 61/5/3 Annex 2) largely retained Remaining uncertainties: } Derated engine – use MCR from NOx Technical file - to be dealt with by CG } Ambient condition in electric power table – to be dealt with by CG } “fw” – retained as is, Japan to submit detail report • Japan proposal to make fw optional with EEDIweather - not supported • Greece proposal to equate it to 0. 85 - not supported } “fi” for CSR-compliant ship – not to have correction factor, but to have reduced reduction rates – to be dealt with by CG 16

Method of calculation of EEDI } “fi” for voluntary structural enhancement • Example: is Method of calculation of EEDI } “fi” for voluntary structural enhancement • Example: is fi allowed for CSR “Grab” notation? – Commercial consideration – not deserving? • Example: is fi allowed for adding more corrosion addition that required by CSR? – Commercial consideration, since reducing maintenance cost – Enhanced safety, since reducing risk of structural failure; also reducing lifecycle carbon footprint with reduced structural maintenance • Guidelines required: – How to define the referenced ship? – How to consider commercial v. safety? – Lightship weight regression line? An existing ship? First of a series of sister ships? • IACS to consider co-sponsoring paper to MEPC 62 17

Survey and Certification of EEDI Guidelines (MEPC 61/5/3 Annex 3) largely retained – discussions/reservations Survey and Certification of EEDI Guidelines (MEPC 61/5/3 Annex 3) largely retained – discussions/reservations in boxes deleted However, many uncertainties for implementation: } Main issue: verification of reference speed Vref – speed at 75% MCR & summer draft Example issue: omission of tank tests for ships of the same or similar type } Should criteria be established for waiver of tank tests? Ships of the same type A ship of which the hull form, excluding additional hull features …and of which principal particulars are identical to the base ship Ships of a similar type A ship of which the hull form, excluding additional hull features …and of which principal particulars are largely identical to the base ship Omission of tank tests A tank test…may be omitted based on technical justifications such as availability of results of tank tests of ships of the same/similar type 18

Survey and Certification of EEDI Example issues: } Speed estimation at design stage • Survey and Certification of EEDI Example issues: } Speed estimation at design stage • Established methods for speed/power curve predictions hard to verify • Verifiers could ask for highly proprietary info • In future: develop more robust method } Quality of tank tests • ITTC quality system • In future: consider authorization of facilities or witness of tests by verifiers 4. 2. 6…The estimation of the ship speed at the design stage much depends on each shipbuilder's experiences, and it may not be practicable for any person/organization other than the shipbuilder to fully examine the technical aspects of experience-based parameters such as the roughness coefficient and wake scaling coefficient. Note to 4. 2. 6 A possible way forward for more robust verification is to establish a standard methodology of deriving the ship speed from the outcomes of tank test… 4. 2. 7 – allows verifiers to request additional information Note to 4. 2. 5 For ensuring the quality of tank tests, ITTC quality system should be taken into account. It would be desirable in the future that an organization conducting a tank test be authorized or each tank test be witnessed by the verifier in accordance with the guidelines developed by the Organization. 19

Survey and Certification of EEDI Other example issues: } Acceptance of numerical methods: for Survey and Certification of EEDI Other example issues: } Acceptance of numerical methods: for model propeller open water test; for supplementing tank tests } Equivalent methods to ISO 15016 in calibrating speedpower curve at sea trial to account for wave, wind, etc. } Method of deriving Vref from speed-power curves from tank tests and from sea trials } Need for a more ‘robust’ method of verification? • Option A – status quo • Option B – apply standard in lieu of proprietary, experiencebased parameters for ship speed estimates; derived specific speed for EEDI purpose only • Option C – apply verifiably parameters (verified during sea trial) for ship speed estimates; derived specific speed for EEDI purpose only 20

Survey and Certification of EEDI Need for joint industry effort for mutually agreeable and Survey and Certification of EEDI Need for joint industry effort for mutually agreeable and technically sound method for verification of Vref ? } Short-term solution • Make Option A as robust as practicable – development of unified verification procedure • Quality of tank tests • Protection of intellectual properties } Long-term solution • …from lessons learned 21

Summary Regulations on energy efficiency for ships - a step closer Several issues need Summary Regulations on energy efficiency for ships - a step closer Several issues need looking into } Safety issues – installed power; structural } Survey for conversion } Calculation methods – correction factors } Survey and certification } SEEMP 22