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Guideline for Fuel Saving Measures Return on Investment Calculator for Bulk Carriers

Content

Introduction 14 Fuel Saving Measures Return on Investment Calculation Advisory Services Concluding remarks

14 October 2011

By SDARI and DNV

Tough market
The cost of fuel has increased drastically the last year Most analysts indicate further increase in fuel oil prices Market conditions are challenging, with low charter rates in the bulk carrier segment The outlook is not positive, considering the large number of bulk carriers in the orderbook FREIGHT RATES BUNKER PRICES

Being able to cut cost, e.g. by saving fuel may be the differentiator needed to stay in business!

14 October 2011

By SDARI and DNV

5-10% fuel saving potential


Fuel is currently between 60% - 70% of a bulk carriers total operating expenses DNV presented the abatement curves in 2009, which identified a large potential in the area Propulsion Efficiency Devices . This project has concluded that fuel saving of up to 5-10% can be achieved
Average marginal CO2 reduction cost per option - Bulker 2 Baseline: 348 mill tonnes per year 300 250 Cost per ton CO2 averted ($/ton) 200 150 100 50 0 -50 -100 0 50
Hull condition Electronic engine control Light system Gas fuelled Speed reduction (fleet increase) Fuel cells as aux engine Fixed sails/wings Waste heat recovery Cold ironing Voyage execution Speed reduction (port efficiency) Engine monitoring Reduce auxiliary power Propulsion efficiency devices Propeller condition Trim/draft Frequency convertors Contra-rotating propellers Air cavity/lubrication Weather routing Kite Solar panel (not shown) Wind generator (not shown) Exhaust gas boilers on aux (not shown)

100 150 CO2 reduction (million tons per year)

200

14 October 2011

By SDARI and DNV

A jungle of fuel saving measures

Energopac Wrtsil

Wake equalizing duct Schneekluth

Contra-rotating propeller Wrtsil and IHI Marine Utd.

Mewis duct Becker Marine Systems

A NUMBER OF DEVICES ON THE MARKET Many questions are raised: How does the device work? Are different devices compatible? Will the yard have capability to install? What is the reduction in fuel consumption? How much will a certain device cost? How can cost/benefit be calculated?

Propeller Boss Cap Fin MOTech


By SDARI and DNV

14 October 2011

A Guide through the jungle


SDARI and DNV have worked together in a joint project to produce a detailed guideline covering: Description, including compatibility Requirements from classification Complexity of manufacturing Range of expected fuel saving Expected maintenance needs Indication of price range Describes fourteen of the most relevant fuel saving measures. An independent guideline, of the most relevant measures, covering the important aspects
14 October 2011 By SDARI and DNV

Content

Introduction 14 Fuel Saving Measures Return on Investment Calculation Advisory Services Concluding remarks

14 October 2011

By SDARI and DNV

Scope of Guideline
We are covering the most important issues for a number of different fuel saving measures and in the following a brief description of each measure will be given

Mewis Duct

Pre-swirl stator

Propeller boss cap fins

Propeller rudder transition bulb

Contra-rotating propeller

Also considered are:

- Rudder profile
- Propeller design - Hull shape - Main engine - Auxiliary engine Pre-duct Propeller nozzle

- Waste heat recovery system - Openings arrangement and design

14 October 2011

By SDARI and DNV

Mewis duct
Design:
Vertically offset mounted duct Integrated asymmetric fin The MD should be optimized for the given ship The connection to the hull structure will be evaluated For ice classed vessels special consideration are required May, according to inventor, be retrofitted without changes to the propeller

Class requirements

Manufacturing:

Installed Mewis Duct

Compatibility:

14 October 2011

By SDARI and DNV

Mewis duct
Effect:
Wake equalizing duct gives improved wake flow characteristics Pre swirl fins give improved tangential inflow speeds to the propeller

Saving potential:
5-8% of power

Means of validation:
Model tests Computational Fluid Dynamics (CFD) Full-scale trials

Cost:
170-290 kUSD, depending on ship size Design cost of 140 kUSD per series CFD plots in plane after Mewis duct and before propeller. Courtesy of Becker Marine Systems
Link to overview of fuel saving measures

14 October 2011

By SDARI and DNV

Propeller boss cap fins


Design:
Consists of small fins attached to the propeller hub Number of fins equal to the number of propeller blades The propeller cap turbine is a proposed improvement, with curved blades No specific requirements Installed instead of a normal cap Yard must consider strength of connecting bolts and clearance to the rudder

Class requirements:

Manufacturing:

Propeller boss cap fins (PBCF)

Compatibility:

14 October 2011

By SDARI and DNV

Propeller boss cap fins


Effect:
Recovers the energy from the rotating fluid coming of the propeller hub Reduces the hub vortex generation Reduces risk of cavitation Increased overall propeller efficiency 2-4% of power Model tests CFD From 67 (Handy size) to 170 (205K DWT) kUSD Design cost of 72 kUSD per series

Saving potential:

Means of validation:

Cost:

Link to overview of fuel saving measures


14 October 2011 By SDARI and DNV

Compatibility Summary

14 October 2011

By SDARI and DNV

Content

Introduction 14 Fuel Saving Measures Return on Investment Calculation Advisory Services Concluding remarks

14 October 2011

By SDARI and DNV

Return on Investment Calc.


The characteristics of the fuel saving measures is entered, based on information in the Guideline Investment cost is a required input while maintenance cost and re-sale impact are optional

14 October 2011

By SDARI and DNV

Return on Investment Calc.


An operating profile is entered, and there are two alternatives for specifying fuel consumption: Alt. 1 specifying ME size, MCR and SFOC or the simpler Alt. 2 only specifying ton/day

14 October 2011

By SDARI and DNV

Return on Investment Calc.


Several fuel price scenarios can be entered and used in the analysis: High Medium Low Custom

14 October 2011

By SDARI and DNV

Bulk carrier example


Fuel Consumption 32 tons/day laden 25 tons/day in ballast Based on information in the guideline: Propeller Boss Cap Fins is selected Est. reduction in fuel consumption: 3% laden / 2% ballast Est. investment cost USD 47 000 / ship Est. maintenance cost USD 5000 / ship Conservative fuel price scenario, starting at 550 with an annual growth of 2%
Selected numbers are only for illustration

14 October 2011

By SDARI and DNV

Profitable after 5 months!


Estimated fuel saving 228 tons / yr. USD 47,000 investment gives a net present value: USD 269 USD

Cash flow plot shows that the measure is profitable after 5 months

Cost sensitivity is also calculated, to take into account possible cost over runs, showing that with a 40% over run, it still becomes profitable in less than a year!

Selected numbers are only for illustration


14 October 2011 By SDARI and DNV

.. and Emission Reductions


Emission reductions are also calculated based on standard IMO values The reductions are estimated for: CO2 SOx NOx Particle matters (PM) In Appendix 2, in the report, the details on the ROI tool is described

14 October 2011

By SDARI and DNV

Content

Introduction 14 Fuel Saving Measures Return on Investment Calculation Advisory Services Concluding remarks

14 October 2011

By SDARI and DNV

Level 1 Fuel saving measures Screening and Return on Investment


Deliverables
- Short list of recommended fuel saving measures typically 3-4 - Return on Investment calculation for selected measures

Scope of work
- Apply Guide and Return on Investment tool for fuel saving measures to prepare a short list of measures with high potential for saving and / or short payback time - The assessment considers the ship characteristics and operation

Input
- Ship main dimensions, engine power, type of propulsion, rudder and possible appendages - Ship operational profile - Nice to have: Any other available data like model test results and engine characteristics

Fuel saving measures 10 August 2011 Det Norske Veritas AS. All rights reserved. 22

Level 2 Fuel saving measures Recommended fuel saving strategy


Deliverables
- Updated estimate of saving for selected measures - Recommended strategy for fuel saving, which could include one or more measures

Scope of work
- Obtain detailed information regarding saving potential, installation and maintenance cost for the short list of measures. This includes contacting suppliers and a thorough review of available technical data - Optional risk assessment or technology qualification may be carried out for measures with limited operational history for the subject vessel type and trade - A more accurate Return on Investment analysis is carried out for the selected measure

Input
- Short list of fuel saving measures - Other relevant input from the owner, e.g. previous experience with fuel saving measures, cooperation with or preference for specific yards or suppliers

Fuel saving measures 10 August 2011 Det Norske Veritas AS. All rights reserved. 23

Level 3 Validation of fuel saving by analysis


Purpose
- Validate fuel saving and optionally provide speed power curve

Deliverables
- Calculated fuel saving for selected measure - Optional speed power curves with and without installed measure

Scope of work
- Calculation of required power by modeling a self propelled ship in calm water for a number of speeds by computational fluid dynamics at full scale - Determine speed power curves both for original and modified vessel

Input
- Detailed geometrical description of the ship hull, propeller and appendages, as well as selected fuel saving measure - Relevant selection of combinations of speed and draft / trim to assess savings (based on operational profile)

Fuel saving measures 10 August 2011 Det Norske Veritas AS. All rights reserved. 24

Level 4 Trim Optimization


Purpose:
- Calculate how the hull resistance is influenced by differnent trim and drafts

Deliverables:
- A) Trim Recommendation table (Avoid/Fair/Good) - B) Onboard trim optimization tool

Scope of Work
- Advanced CFD calculation for analyzing changes in wave-making resistance and in frictional resistance and comparison to even keel base case.

Input
- Hull Geometry and Loading Manual - Operational profile: speed and loading conditions

Hydrodynamic Analyses for Ship Performance Predictions 14 December 2010 Det Norske Veritas AS. All rights reserved. 25

Contact
Please contact your local Customer Service Manager or DNV Maritime Advisory / NTANO362@dnv.com for a quote.

14 October 2011

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By SDARI and DNV

Content

Introduction 14 Fuel Saving Measures Return on Investment Calculation Advisory Services Concluding remarks

14 October 2011

By SDARI and DNV

Disclaimer
The Guideline for the Fuel Saving Devices and the Return of Investment Calculator (the "SDARI and DNV Products") are developed by SDARI and DNV and provided to our clients free of charge. We have taken all reasonable care in the development of the SDARI and DNV Products, but SDARI / DNV cannot guarantee that the SDARI and DNV Products will function error free or that estimated fuel savings will be met. Therefore, SDARI and DNV disclaim any responsibility, liability and consequences in relation to the use of the SDARI and DNV Products.

SDARI and DNV


14 October 2011 By SDARI and DNV

Concluding remarks
We believe this Guideline and the Return on Investment calculator will be useful in our clients endeavours to save fuel and reduce shippings environmental impact, and we therefore offer it free of charge to our clients.

14 October 2011

By SDARI and DNV

Safeguarding life, property and the environment


www.dnv.com

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