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Viking Line's Environmental Strategy & Energy

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Viking Line's Environmental Strategy & Energy VIKING LINE’S ENVIRONMENTAL STRATEGY & ENERGY EFFICIENCY Innovative and Environmentally Friendly Operation with Viking Line Ferries Maritime Stakeholder Event Brussels, Belgium June 1, 2011 Kari Pihlajaniemi Fleet Manager, Energy Efficiency and R&D Contribution to world’s overall CO2 emissions Shipping compared to others = 3,3% Industry estimation of improvement potentials International Chamber of Shipping: “The consensus of opinion within the Global Industry is that it may be possible for shipping to reduce CO2 emitted per ton of cargo transported one kilometer (ton/km) by perhaps 15%-20% between 2007 and 2020, through a combination of technological and operational developments, as well as by the introduction of new and bigger and more effective ships, designed to the new IMO Energy Efficiency Design Index.” What does the certification mean (ISO 14001) • Viking Line has carried out an extensive environmental study in 1996 • The company identified the environmental aspects of its operation • Environmental work focuses mainly on vessels operations, where the largest gains can be achieved when it comes to protecting our environment • As an outcome, the documented Environmental Policy establishes the overall direction of environmental work and states the principles behind the Company's actions. It is adopted by the Group Management • Environmental programmes includes overall and detailed environmental targets, adopted by Group managements as part of its review: • The Company works proactively and systematically to minimize the environmental impact of its operations • The Company makes demands on its suppliers (supplier assessments, purchasing manuals, information forms) • Internal and external audits monitor Viking Line`s compliance with the requirements for environmental certification • Since 1995, Viking Line has decided to operate the vessels with 0.5% sulphur HFO to reduce the overall emissions Sulphur content of vessel fuel International Maritime Organization Utsläpp i luften: SvaveloxiderEuropean Union: (SOx) (IMO): January 2010 => in all EU ports, maximum sulphur content 0.1% for vessels staying in port for more than 2 May 2005 => international hours (exemption for vessels using maximum sulphur content 4.5% connections with shore side electricity sources) SECA areas (i.e. the Baltic Sea): Viking Line has used low-sulphur fuel May 2006 => maximum sulphur (maximum sulphur content 0.5%) since 1.5% the 1990s! July 2010 => maximum sulphur Since January 1, 2010, all Viking Line content 1% vessels that stay moored in a port for more than 2 hours are using MGO with a sulphur content not exceeding 0.1% throughout their port stay or are using shore power where connections available UN maritime body IMO is preparing it’s package IMO Marine Environment Protection Committee (MEPC) has developed a package of measures for reducing shipping’s CO2 emissions with agreed timetable for adoption: 1) Energy Efficiency Design Index (EEDI) for new ships 2) Energy Efficiency Operational Indicator (EEOI) for all ships 3) Ship Energy Efficiency Management Plan (SEEMP) for all ships + Market Based Measures (MBM’s) for all ships $/tonne 1000 1200 1400 200 400 600 800 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 Marine 1989 1990 1991 price history; IFO380 andMDO Fuel 1992 1993 1994 fuel 1995 1996 1997 price 1998 1999 2000 2001 history 2002 2003 2004 2005 2006 2007 2008 2009 2010 SE Asia MDOSE AsiaSE HFO gulf US MDO gulf US HFO EuropeNW MDO EuropeNW HFO Ar.gulf MDO Ar.gulf HFO Improving process of the efficiency of VL fleet existing vessels Key Stone Corners to evaluate the current status with the use of Scrubber Technology: 1. Verification and evaluation of the current available various type of technologies 2. Verification of each type of fleet vessel for scrubber installation 3. Verification and evaluation of the production chain with Scrubber waste and production streams 4. Continuous follow – up for the ongoing developments Improving process of the efficiency of VL fleet existing vessels Key Stone Corners to evaluate the current status with the use of Scrubber Technology: The list of main technical and financial challenges with the utilization of the Scrubber Technology: 1. Currently only few fully certified scrubber makers are available in Marine Industry 2. The operational experiences with Scrubber in Baltic and with breakish water is very limited 3. The final end of the cleaning water waste effluent is still pending • Viking Line has a zero discharge policy 4. The final end of the disposed sludge is still pending 5. Ship stability and space demand plays a major role in terms of the actual ship design and scrubber installation 6. The final pricing and life cycle costs (LCC)remains to be pending until more operational experiences will be collected LNG POWERED NEW BUILDING IN FINLAND AT TURKU STXSHIPYARD Exhaust emissions CO2 NOx SOx 140 % 120 % 100 % 80 % 60 % Relative exhaust emissions 40 % 20 % 0 % MGO HFO LNG KPi Improving process of the efficiency improving with the VL New Building The list of main challenges with the LNG operation: 1. The design and implementation of the LNG infrastructure is still under development 2. LNG bunkering procedures and regulations are still under development by various authorities and classification societies 3. Effective port time for VL LNG powered cruise ferry is only 60 minutes, whereas the previous references are having hours with significantly lower fueling demand (m3/hour) 4. Experiences with LNG operation in Cruise Ferry are rather limited 5. Advanced type of LNG training program for crew, terminal and office personel is required and needs further evaluation and certification by authorities 6. LNG is the solution for new building but not for the existing fleet vessels! Improving process of the efficiency of VL New Building THE LIST OF MAIN CHALLENGES WITH THE OPERATION WITH LNG – BUNKERING: INITIAL CONDITION IS READY FOR BUNKERING Checking of gas line before connections Bunker with low flow Precooling Bunker with maximum capacity Slow down Completion of bunker Disconnection of hoses 4 3 45 4 4 Time in harbour 60 minutes VIKING LINE’S ENVIRONMENTAL STRATEGY & ENERGY EFFICIENCY THE FUTURE! THANK YOU FOR YOUR ATTENTION!.
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