dnv seemp guideline- why, what and how_tcm4-472602

DNV SEEMP Guideline – Why, What and How Version 1 – 15 September 2011

© Det Norske Veritas AS

See also: www.dnv.com/SEEMP

THE SEEMP – WHY, WHAT AND HOW

INTRODUCTION

This document provides a description of the Ship Energy Efficiency Management Plan (SEEMP) as per

the MEPC.1/Circ.683 ‘Guidance for the development of a Ship Energy Efficiency Management Plan

(SEEMP)’ first published in August 2009 and recommendations / guidelines of how a ship owner /

operator could develop a SEEMP for vessels in their fleet.

The benefits to organizations that have established, implemented and maintained an energy

efficiency program for their vessels are more than just fuel savings – which are typically in the order

of 10% or more. Companies have seen their maintenance costs reduced and at the same time their

green profile improving.

One DNV customer commenced an Energy Efficiency project with DNV focusing on reducing

fuel consumption by 10%. After Year 1, not only did they realize a 15% reduction in

consumption, but through an improved performance management framework developed as

a part of the project, prevented a near catastrophic main-engine breakdown during transit.

Another company used DNV to verify and assist implementation of a comprehensive Energy

Efficiency strategy and used the process and results to launch their new climate-change

initiative to their clients, shipping pool-owners and industry representatives.

DNV’s SEEMP development services have been built on the experience gained from the delivery of

both SEEMPs to customers and more comprehensive energy efficiency projects by DNV world-wide

and complementary work conducted by the entire DNV organization in the areas of fuel

management, ship design, statutory and class services.

DNV EXPERIENCE WHERE IT COUNTS

More than 50 Energy Management projects in recent years

Total savings potential identified range from 8-28% (average 12%)

Worked in most shipping segments including Tank, Bulk, Container, Cruise/RoPax, LNG/LPG,

Chemical, RORO, Seismic and Offshore

Over 1000 ships

Worked in most geographical areas

DNV Petroleum Services with ca. 65% of world fuel testing market

Leading ISO certification including 14000 (environmental management systems)

DNV Benchmark recording operational performance across thousands of vessels world-wide

DNV SeaSkill certifying and delivering maritime training globally




IMO – MEPC 62 July 2011

MEPC 62 finished in July 2011 with the adoption of new requirements on CO2 including making the

Ship Energy Efficiency Management Plan (SEEMP) mandatory for both new and existing ships

irrespective of flag from 1 January 2013 at the first renewal or intermediate survey after this date.

The SEEMP provides an approach for monitoring ship and fleet efficiency performance over time, and

encourages the ship owner, at each stage of the plan, to consider new technologies and practices

when seeking to optimize ship performance. The SEEMP will – as per current plans – not be subject

to approval by flag states or Recognized Organizations such is the case with class, but will be part of a

new chapter 4 of MARPOL Annex 6 on Regulations and be required under the International Energy

Efficiency Certificate (IEEC).

The IEEC requires under Regulation 22 that ‘… each ship shall keep on board a ship specific Ship

Energy Efficiency Management Plan (SEEMP) … (and) shall be developed taking into account

guidelines adopted by the (IMO).’

IMO – MEPC.1/683 Guidance for the Development of a SEEMP

The Guidance document from IMO will be reviewed and updated in the period before the

introduction of the SEEMP as a mandatory requirement in January 2013. As always, the challenge for

ship owners & operators is to actually realize the emission reductions based on the actions and

measures contained in the SEEMP.

Key features of SEEMP:

Recognizes that operational efficiencies will make an

invaluable contribution to reducing global carbon

emissions

Its main purpose is to establish a mechanism for a

company and/or a ship to improve the energy efficiency

of a ship’s operation that is preferably linked to a

broader corporate energy management policy

The SEEMP is to be customized to characteristics and

needs of individual companies and ships

It is worth noting that other organizations, like Oil

Companies International Marine Forum (OCIMF), has

also made their own guideline to SEEMP

The IMO guideline itself can be found by following this LINK

http://www.imo.org/MediaCentre/HotTopics/GHG/Documents/683%20SEEMP.pdf Please

note that this will be updated over the coming 12-months or more, and whilst it is not

expected to change too much, it will be modified. To ensure that you have the latest version,

always check the IMO website for details.

http://www.imo.org/MediaCentre/HotTopics/GHG/Documents/683%20SEEMP.pdf




This document contains a summary of the IMO Guidance for Development of a SEEMP, followed

by a general comment/recommendation from DNV based on experience gained from working in

this area for many years.

IMO Guidance for development of a SEEMP recommends focus in 3 key

areas

Planning – includes ship- and company-specific measures, human resource development and goal-

setting whilst keeping in mind to minimize related onboard administration

TIP! The most crucial step of the SEEMP development and should reference company goals

and processes, ship specific features in both technical and operational spheres, training,

competence and timelines.

Implementation – includes attention to establishment of an appropriate system that allows for each

selected measure to be rolled-out according to plans.

TIP! Any ‘system’ can involve a mix of tools, processes and record keeping that when

combined, will enable the implementation of specific energy efficient initiatives. A

communication plan that identifies who is responsible for each step in the process will

increase awareness and the likelihood of sustainable activity.

Monitoring – describes the establishment of a system utilizing various tools, both existing and new,

that can provide both a qualitative and quantitative basis for self-evaluation and subsequent review

of performance

TIP! Perhaps the hardest to activate in a consistent manner, the interaction of the right tools,

systems and processes is crucial to track benefit realization and provide the basis to sustain

improvements. Many organizations collect a lot of data from a wide range of sources,

however not all manage this information to the point that they know how well they are

performing or what they should do to sustain or improve.




DNV – bringing lessons from the field to SEEMP development

DNV acknowledges and fully supports the IMO Guidance for the development of a SEEMP for ship

owners and operators and believes that the key difference in the outcome will be in the

implementation.

DNV has developed SEEMPs for customers around the world and brings a systematic, structured and

cost effective approach to each project. And as the overriding goal of having a SEEMP is to use less

fuel (relatively speaking), the outcome of a successfully deployed SEEMP is to lower costs and reduce

emissions.

“To realize the benefits you must first have a plan”

The DNV approach remains fully compliant with the IMO guidance and builds on it further by placing

emphasis on the delivery and implementation of the SEEMP. The following section provides some

insight into leading practices from a range of shipping segments, and whilst we acknowledge that

there is a wide range of differences in the world’s fleet, the logic behind each applies to all.

DNV Step 1 - establishing a baseline

It is important to examine both the tools and processes

in order to determine a credible baseline from which

goals, plans and actions all grow. Not only will this help

in your understanding of what is being consumed today,

it also provides the best starting point in assessing a

realistic improvement goal for ‘tomorrow’.

Understanding the ship’s internal processes

The energy flow

within a ship can be

described with a

Sankey diagram as

illustrated which

shows that there are

many aspects that

contribute to energy

being lost between

‘purchase’ and

‘output’

Baselines for ship

internal processes are typically found in ship and equipment design documentation and sea

trial data:

- Engines: Shop or sea trial

- Electrical consumption: Design electric load calculations

- Boiler efficiency: Equipment specification and test of steam system

Look at both ship internal processes and operational aspects

Thrust

El. power

Steam

Fuel quantity

and densityHull and

propeller

efficiency

Main Engine

efficiency

Aux Engine

efficiency &

utilisation

Boiler

efficiency &

utilisation

Purchased

energy, kJ

Desired

output, kW

Energy

losses




Incorporating the influence of ship’s operational aspects

The operational aspects refer to how the ship is managed and how the equipment and

systems are operated, such as:

- Route planning

- Weather routing

- Cargo operations

- Ship trim

- Electric power management

- Use of autopilot

Baselines for operational aspects are typically described/embedded in internal operational

procedures such as ‘port operations’ and ‘voyage planning’.

- Consider to include the IMO recommended Energy Efficiency Operating Index (EEOI)

- MEPC.1/Circ.684 – as a baseline to measure and record the CO2 emissions per

transport kilometer. Whilst this method can apply to many shipping traditional

segments it may not be easily calculated for others (for example, Anchor Handlers).

For more information on the EEOI, its application and calculation, please visit the

IMO website

DNV Step 2 - gap assessment of improvement potential

Once a baseline has been established, the next step is

to identify how much you can save and just as

importantly, what you need to do to realize the

improvements. It is worth keeping in mind that some

areas with a high savings potential may take

considerable effort to plan, implement and realize!

Assess energy losses

The gap assessment can be carried out by performance data analysis and / or a ship energy audit.

Data analysis might be sufficient if the company has reliable data available for each ship, while an

energy audit of the ship will be necessary if this is not the case.

To ensure a practical approach, ship audits could be carried out for reference ships (one or two

ships per sister ship class) and should cover both ship internal processes and operational aspects:

- Ship internal processes (for example)

- Performance test of engines

- Insulation of piping and steam traps

- Review of engine log books

- Operational aspects (for example)

- Electric power management

- Review of the route planning process

- Review of cargo operations

The improvement potential should be quantified to get an understanding of the size of the gap.

Quantification could be e.g. in percentage improvement potential, ton of fuel or in monetary

terms.

Carry out a gap-assessment to identify improvement initiatives




Prioritize improvement initiatives

It is vital to be realistic when it comes to

implementation of identified initiatives. Not all

initiatives are equally effective, some are more difficult

to achieve, and all initiatives could definitively not be

realized at the same time. Prioritization is necessary.

One method that feeds into this overall view is to rank

the various energy efficiency initiatives according to

‘energy efficiency impact’ and ‘effort required to

implement’ to prioritize the different solutions.

DNV Step 3 - implementation and performance monitoring

Once the opportunities have been identified, quantified and prioritized, the important next step is to

put them into action. Whilst Information Technology is a great enabler in many business and

operational areas, beware of falling into the trap of ‘implementing by email’. Being able to track

performance effectively, using a variety of established mediums / systems / processes will help

overcome resistance to ‘new’ initiatives.

Establishment of monitoring framework

It is recommended the performance

monitoring system should be standardized for

the whole fleet and should be able to track the

effects independent of each improvement

initiative.

Tracking performance and translating ‘effect’ into ‘benefit’ – for example, money saved,

emissions reduced or company profit increase – when reported to ship & shore, will improve

the chances of the various initiatives being sustained.

Selection of Performance Indicators

Measuring and managing energy

efficiency on ships is complicated because

of a lack of accurate measuring

equipment, the presence of many

parameters with large uncertainties that

can influence energy efficiency and the

difficulty isolating the effects of some

parameters. Choice of the most relevant

and appropriate performance indicators

is important to ensure actual realization

of efficiency benefits!

Standardize performance monitoring for the whole fleet

ENERGY EFFICENCY

POLICY

KEY PERFORMANCE

INDICATORS

SEEMP&

PERFORMANCE INDICATORS

COMPANY STANDARD FOR ENTIRE

FLEET

SHIP SPECIFIC

1st Priority 2nd Priority

LOW

HIG

H

LOW HIGH

EFFORT REQUIRED

IMP

RO

VEM

ENT

PO

TEN

TIA

L

INITIATIVE 1

INITIATIVE 4

INITIATIVE 3

INITIATIVE 2




Leading practices suggest that performance indicators (PIs) should be a mix of company-wide

and ship-specific to ensure that those chosen are aligned with the operational and strategic

environment and seek to achieve the following:

Encourage the desired behavior

Be quantifiable

Be balanced

Be set at the “controlling” organization level

Examples of PIs widely used

The EEOI (ratio of mass CO2 emitted per unit transport work) is a useful reference on an

aggregated level

- However it is not sufficient to monitor actual performance of ship internal process or

operational aspects

- Does not easily apply to certain segments such as supply vessels, RoRo or research.

SOX and NOX emissions based on consumption and fuel type

Specific fuel oil consumption (gram fuel oil per kWh) is a unified energy efficiency measure

for engines and widely used in the shipping industry.

Fuel costs, seasonally adjusted, by route, operational mode or bunker port

DNV Step 4 - evaluation and improvement

The progress within the different improvement initiatives should be regularly monitored and

followed up by the responsible persons / department with the assessment of performance used to

modify future goals and implementation tactics.

Knowledge transfer and raising awareness

To increase awareness within the organization, a

forum for sharing experience from the different

initiatives could be established and discussions

communicated.

Public reporting of results of actions implemented

should be considered as a means to demonstrate

commitment to improving energy efficiency and

minimizing environmental impacts

Closing the loop

As implementation of initiatives advances,

revisiting the prioritization list (Step 2 above) will

help maintain momentum – not to mention

providing a perfect opportunity to let your

stakeholders know of your progress.

To make this part of the company culture,

evaluate processes against corporate policy and

integrate into formal company procedures

Moving from ‘resisting’ change to ‘embracing’ new ideas will take time and be

based on results that can be verified

Clarify ownership of the implementation,

that is who does what, when and how!




EXAMPLE FORMATS

As DNV consider it against the IMO purpose of introducing SEEMP, we will not make a SEEMP

template where you only can fill in your ships particulars and automatically generate a SEEMP for the

vessel. The following few examples however illustrate some formats that can be used.

SUMMARY – DEVELOPING A SEEMP

Developing a SEEMP should be a systematic and structured process that draws on relevant

information and experience from within the organization. The examples within this document should

give you a good idea of what it takes to develop a SEEMP that not only meets the IMO requirements

but in addition – and perhaps most importantly – will increase the chances of actually realizing a

reduction in emissions and associated costs.

And don’t forget, as per the IMO Guidance Documents and IECC regulations, a SEEMP must be

prepared for each ship. Whilst it can be based on a standard format and will contain some generic

elements, it should be tailored to be relevant to ship type, trading routes and operational profile.