T E E K A Y – T H E M A R I N E M I D S T R E A M C O M P A N Y ®

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TEEKAY MARINE SERVICES

Environmental Initiatives

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Shipping, the Most Environmentally Friendly

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Environmental Impacts of Shipping

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Reducing CO2: The Teekay Approach

VESSEL OPTIMISATION

TECHNICAL PERFORMANCE OPERATIONAL PERFORMANCE

Focus Areas:· Hull & Propeller performance· Main Engine· Cylinder oil consumption

Focus Areas:· Cargo Heating· Weather Routing· Speed vs. Fuel Consumption

NEW INITIATIVES

Examples:· PBCF Retrofit· CPP Reprogramming

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Typical added resistance over time

Reducing CO2: Hull and Propeller Performance

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Unknown Event

Tracking of Hull & Propeller condition by CASPER Potentially 1 to 1.5 % fuel savings annually

Early detection of hull/propeller: Damage Cavitation (propeller) Coating detachment Erosion Fouling

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Reducing CO2: Optimising Performance Three part report to the vessel

Overview and Summary Parameter checks Historical Performance Summary - monthly

Fleet reports and trends Overview of ME Performance SCOC status

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Reducing CO2: Optimising Performance

OVERVIEW & SUMMARYOVERVIEW

& SUMMARY

CYLINDER DRAIN OIL SAMPLING DETAILS

CYLINDER DRAIN OIL SAMPLING DETAILS

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Reducing CO2: Propeller Boss Cap Fin Model test showed 4% savings at 14 knots PBCF installed on April 10, 2009 Validated savings of 5% More ships to be fitted

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Reducing CO2: Cargo Heating

Post voyage review of a heating plan showing: projected vs. actual heating hours; projected vs. actual fuel consumption

Post voyage review of a heating plan showing: projected vs. actual heating hours; projected vs. actual fuel consumption

Optimized boiler operation based on projected heat loss and cargo temperatures

Average daily fuel consumption for cargo heating reduced from 8 MT to 5.5 MT per day

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Reducing CO2: Optimum Weather Routing

Safety: avoid weather damage Savings: up to 3% fuel and time savings. Avoid weather delays

Yellow – Vessel’s Route

Orange – Optimal weather route

Yellow – Vessel’s Route

Orange – Optimal weather route

Direction of currentsDirection of currents

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Reducing CO2: Trim Optimization Matrix Table for use onboard to find the most economic trim under different

loaded conditions (speed, cargo and vessel data)

~60 MT of fuel saved per vessel per year

~60 MT of fuel saved per vessel/year~60 MT of fuel saved per vessel/year

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Complying with NOx regulations

NOx regulations for new vessels: Tier 1 (today for post-2000 vsls)

Tier 2 (2011) – 15% reduction from Tier 1

Tier 3 (2016) – 80% reduction from tier 1 in ECAs

New Amundsen Class Shuttle Tankers have DNV Clean Design notation, and meet IMO Tier 2 NOx limits in advance of the 2011 requirement

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Reducing VOC Emissions

Existing methods of controlling cargo vapour (VOC) emissions

Shuttle Tanker VOC Plants Absorption Adsorption Condensation

Condensation Plant used during loading

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Innovative VOC Solution – Combining Technologies

Increased cargo tank pressure

Adapted pressure control sytem

CVOC recirculation

Modified KVOC

drop line

100% regularity

Emission reduced 50 - 75% during loading, 100% during transit

Negligible power requirement

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VOC reductions and new systems

New system to contain VOC emissions on Amundsen Class shuttle tankers, 60-70% reduction during loading, 100% during transit.

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Potential Emissions Reduction

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Teekay Shuttle Concept – “Teekay FlexShuttle”

Design Efficiency Flex Shuttle

Concept 55k DWT Flexshuttle designed incl. outline spec., GA, midship section, weight calculation and 3D modelling.

Stern loader design tested with following results (Aframax size): Machinery installation reduced fro 36MW to 18 MW. No of thrusters reduced from 6 to 4, rudders 2 to 0.5 DP performance significantly improved.

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Improved Hull Design

Suezmax w/ Aframax consumption Improved hull design has shown a fuel consumption

savings of 22% at 14 knots compared to benchmark vessels

Comparison of Bow WavesComparison of Bow Waves Comparison of Bow WavesComparison of Bow Waves

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Becoming Even More Efficient

Operational Efficiency Virtual Arrival

Optimising voyage speed to terminal availability

Cleaner fuels with less carbon (i.e., LNG)

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Office Initiatives Ashore Launched Green 15 on

Earth Day 2009

Checklist of energy conservation and waste minimization options

Target: minimum of 12 options in practice for each office by year end

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Opportunities Ahead

Regulation (GHG Market Based Mechanisms, Operational indexes, Design Indexes … )

Technology development and adaptation to shipping

Self regulation through leadership Adoption of best practices

Proactive participation in development of uniform global regulations through industry bodies

Stakeholder participation (customers, technology providers, ports, public …)

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Our Environment – Our Responsibility

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