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SEEMP: Energy Management and the Shipping Industry

Conference Paper · September 2013

DOI: 10.3850/978-981-07-7338-0_OSV2013-06

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SEEMP: ENERGY MANAGEMENT AND THE SHIPPING INDUSTRY

Capt. Naveen S. Singhal* and Arun Kr. Dev**

*JAG Consultants Plc, Singapore

**School of Marine Science and Technology, Newcastle University (Singapore)

This paper presents the requirements of International Maritime Organization’s

requirement which aims at improving the Energy performance of ships. The
requirement titled as SEEMP Ship-specific Energy efficiency Management Plan aims to
optimize the fuel consumption on board ships. This is estimated to reduce the fuel
consumption on ships thereby reducing the greenhouse gases emitted by the maritime
industry. The SEEMP requirement came in to effect from 1st of Jan 2013. Whilst the
SEEMP comes in to play at the ‘operational’ stage that is after the ship is delivered,
however there is the EEDI (energy Efficiency Design Index) which is responsible for
improving the fuel efficiency through state of the art design of ships. This EEDI is
applicable and adjusted at the design stage of the vessel.

INTRODUCTION

The maritime industry’s contribution of CO2 is about 3% of the global industries. This comes from
around 70,000 ships plying the seas. SEEMP and the EEDI implemented by IMO are aimed to
control and subsequently reduce the CO2 emissions of the Maritime industry. Implementing SEEMP
is a reasonable success for IMO considering the limitations and constraints of the framework under
which it operates. Seeking approvals and ratifications from the over 170 members (nations) with huge
disparities in economic development and varying national priorities, can be a challenge.

MARINE INDUSTRY REMAINS THE BEST

Marine transport has a respectable image and impression in the eyes of the global community for
moving cargo and carrying out operations in a diligent manner. Unlike other industries such as power
plants, foundries and coal based industries it does not cause a significant negative impact on the
global environment from its routine operations. Unlike ships and shipping companies which are
subject to scrutiny from international bodies, the shore based industries are only monitored by local
agencies and authorities, who may have a soft approach aimed at protecting the industries in their
back-yard. However this would not stand for shipping companies operating internationally. Their
compliance with international environmental and marine regulations such as MARPOL Convention
and other IMO instruments is imperative and a foregone conclusion. Non-compliance would render a
vessel un-seaworthy. In addition to this mandatory compliance, ship owners are stretching their
resources by taking that extra initiative beyond the mandatory requirements to further reduce the
environmental impact. This also leads to an improvement in their bottom line profits. The industry
and the world continues to research for more pragmatic and plausible solutions to enhance efficiency
of ships. It can thus be said that whilst the industry is doing well, however there is considerable scope
for implementing standards which would further reduce the maritime share of global CO2 emissions.

Proc. of the 5th Intl. Conf. on Technology and Operation of Offshore Support Vessels (OSV Singapore 2013)
Edited by Arun Kr. Dev
Copyright © 2013 OSV Singapore 2013. Published by Research Publishing.
ISBN: 978-981-07-7338-0 :: 10.3850/978-981-07-7338-0_OSV2013-06
www.rpsonline.com.sg

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70 Arun Kr. Dev (ed.)

OCEAN ENVIRONMENT

Oceans contain 90% of the world’s living biomass and over 60% of humans living within 60 KM of
the coast line, who depend on the marine environment for their daily food. Hence the protection of
the ocean environment is essential for human survival. It is estimated that more than 2.5 billion
people in the world depend on fish as the lone source of protein.
The oceans currents do a heat exchange process and thus control the climate, by absorbing and
transporting heat from the sun, through ocean currents across the globe. Heat from the tropics is
transported to the poles and the cold water from poles is sent towards the equator, thereby cooling the
tropics and warming the poles. In addition to this heat exchange, oceans also affect climate because
of the important role they play in absorbing carbon dioxide (CO2) from the air.
They are a significant reservoir of carbon dioxide (CO2), absorbing about 30% to 50% of CO2
mitted by fossil fuels. The oceans also provide 50% of natural gas, and 30% of crude oil. It is also the
maritime highway transporting about 90% of all world trade and unlike other roads/highways, oceans
do not require any maintenance. It is thus important to reduce carbon dioxide (CO2) emissions and
maintain the integrity of clean oceans.

REDUCING CO2 EMISSIONS AND INCREASING PROFITS

It is now for shipping companies, Owners and stakeholders to appreciate the commercial and
economic sense hidden in Energy efficiency and Environmental management and thus go beyond the
IMO requirements. It is a fallacy that Energy and Environment cost money. Even if started in a small
way, environment initiatives are able to sustain investments from within, with substantial dividends
and returns to harvest over a period of time and thereafter regularly.
Would it sound music to the ears of a CEO or a Finance Manager that good Energy and
Environment practices on a ship could partly pay for the salary of Crew on the ship? What are the
Organizational challenges and barriers ashore and on the ship for achieving this coveted goal?
The top management should also assess the possible barriers in the form of power structures
within their organization which could restrict the energy efficiency process. They must identify ways
to overcome the same. If not for environmental reasons, the economic rationale is becoming
increasingly clear. Direct costs will rise with the price of crude oil. Indirect costs will increase as well.
As we look ahead more and more organizations small and big are eager to contribute their
share towards the global environment and thereby also improve their bottom line profits.
Undoubtedly whilst ship-owners would benefit with the cost reduction, but more importantly the
collective measures taken by the global fleet would be significant in reducing the consumption of
fossil fuels and the maritime share of CO2 emissions.

TOOLS FOR MANAGING ENERGY AND ENVIRONMENT

The ISO 50001 Energy Management System is yet another effective tool to manage and improve
Energy performance. When implemented in parallel with ISO 14001 and SEEMP, it can help an
organization in reducing their energy cost and thus operational cost. This would make ships more
efficient with reduced life cycle cost, in comparison to vessels not doing so.
Those companies who have established an Environmental Management System (ISO 14001
EMS) or an Energy Management System (ISO 50001 EnMS) would find it easier to implement fuel
conservation and energy optimization initiatives. Shipping companies could as a corporate strategy,
conserve resources and improve their CSR (Corporate Social Responsibility) performance.
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Proc. of the 5th Intl. Conf. on Technology and Operation of Offshore Support Vessels 71

Of the seven core elements of CSR ISO 26000

• Organizational governance
• Human rights
• Labour practices
• Environment
• Fair operating practices
• Consumer issues
• Community involvement and development

Environment has a direct impact on an organization’s performance and could be linked to another
CSR criteria namely the community development. The more practical and effective approach would
be combining Energy Management System with Environment Management System initiatives to
make it the right concoction to achieve significant gains.

INCREASING COST OF ENERGY & DEPLETION OF RESOURCES

Energy demand and the cost to produce energy have been on the rise. The average cost (EIA, data
2007-09 USA) of producing one barrel of oil or gas in the US is $ 33.76 which is $16.88 in Middle
East and $45.32 in Africa (High cost of lifting/finding $10.31 + $35.01). (Figures 1, 2 and 3)

Figure 1. Figure 2.
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72 Arun Kr. Dev (ed.)

Figure 3. (Source2).

EEDI AS A LONG TERM MEASURE

The strategy of the Industry and regulators is quite clear. While on one hand the EEDI is an effort to
bring a paradigm shift in the way ships are being designed and on the other hand operational
measures by implementing SEEMP would give immediate results. The application of EEDI would
also test the skills of Naval architects to achieve the progressively increasing ‘design efficiency’
standards of ships over the next decade starting 2015 onwards. This being a ‘long term’ measure
would take more than a decade for all ships to be on a level playing field that is ‘efficiently designed’.
SEEMP (Ship Energy Efficiency Management Plan) would be the tool to improve operational
efficiency, optimize fuel and improve the environmental performance of ships.
The EEDI for new ships is the most important technical measure and it aims at promoting the
use of more energy efficient (less polluting) equipment and engines. The EEDI requires a minimum
energy efficiency level per capacity mile (e.g. tonne mile). The EEDI is a non-prescriptive,
performance-based mechanism and leaves the choice of technology to the industry. As long as the
required energy efficiency level is attained, ship designers and builders are free to use the most cost-
efficient solutions for a ship to comply with the regulations. The EEDI provides a specific figure for
an individual ship design, expressed in grams of carbon dioxide (CO2) per ship’s capacity-mile (the
smaller the EEDI the more energy efficient ship design) and is calculated by a formula based on the
technical design parameters for a given ship.
The CO2 reduction level (grams of CO2 per tonne mile) for the first phase is set to 10% and
will be tightened every five years to keep pace with technological developments of new efficiency
and reduction measures. Reduction rates have been established until the period 2025 to 2030 when a
30% reduction is mandated. These are based on a reference line representing the average efficiency
for ships built between 2000 and 2010. EEDI is developed for the largest and most energy intensive
segments of the world merchant fleet and is estimated to reduce 72% of emissions from new ships.
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Proc. of the 5th Intl. Conf. on Technology and Operation of Offshore Support Vessels 73

PURPOSE OF SEEMP

The purpose of a Ship Energy Efficiency Management Plan (SEEMP) is to create a system or
establish a tool/mechanism for a company and a ship to measure, improve and optimize their energy
performance and efficiency of ships, whilst they are in operation. The ship-specific SEEMP should be
a part of Company’s business objectives. The involvement of seniors in the shore based management
in driving this program through an Energy/Fuel consumption policy would be in the interest of
Shareholders as well as interested parties linked through a common social and economic fabric. This
is important since global society is very quick to respond and react to impacts (good or bad) which
affect society. Whilst spillage caused in Florida directly affects people living on the east coast,
however the overall social impact can be felt 10,000 miles away on the other side of the plant as well.

IMPLEMENTING SEEMP ON OSV

It is relatively easier to implement energy management system and initiatives in a shore based
industry which is stationary or static but a challenge on a moving ship.
It is a bigger challenge to do so on off-shore vessels. Unlike merchant ships which operate in
two modes, namely Ballast or Loaded, OSV’s operate in modes which are very different. Further the
fuel consumption of an OSV in off-shore operation modes (Anchor handling, Supplying cargo,
towing operations etc.) cannot be equated to any specific criteria for measuring their EEOI.
It could take OSV 6 hours to transfer a lift of 1 MT and the same transfer could even be
achieved in 10 minutes consuming 97% less fuel. The results would give a different index, whilst the
work done is the same. This would lead to an incorrect assessment of the ‘index’.
So how could the off-shore industry measure their ‘efficiency’ (EEOI- Energy Efficiency
Operational Index) and improve their energy performance?
The SEEMP seeks to improve a ship’s energy efficiency through four steps:
• planning,
• implementation,
• monitoring, and
• self-evaluation and improvement.

Monitoring of operational efficiency from an energy conservation perspective should therefore be

integrated within a company’s broader business objectives. This SEEMP document is intended to be a
management tool to assist a company and vessel in managing the on-going environmental
performance of the vessel. In global terms it should be recognized that operational efficiencies
delivered by a large number of ship operators will make an invaluable contribution to reducing global
carbon emissions.
A Ship Energy Efficiency Management Plan provides a possible approach for monitoring ship
and fleet efficiency performance over time. The data would assess in optimizing the fuel consumption
and energy performance of the ship.
The EEOI is the Energy Efficiency Operational Index is defined as the ratio of mass of CO2
(mass) emitted per unit of work done.

EEOI = CO2 emitted in MT / Work done by the vessel

(Measures as Tonnes CO2 per hour worked for every Gross ton of vessel)

a. CO2 emitted = Sum of (Fuel consumed in MT x Fuel Conversion factor based on fuel type)
b. Work done = GRT of vessel x Hours spent in work
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74 Arun Kr. Dev (ed.)

Fuel consumed: All type of fuel consumed during the month at anchor, berth and during operation.
Fuel conversion factor is as follows:

LFO – 3.151040
DO/Gas oil – 3.20600
LPG – 3.00 to 3.03 (Propane/Butane)
LNG – 2.75

Hours spent in work will be calculated as below: (Refer to the EEOI Excel sheet)

a) Mode-1: All hours spent for works like Towing, anchor handling, supply, DP operations,
standby services, manoeuvring shall be considered as working hours.
b) Mode-2: All hours spent during steaming of vessel, shall be considered as working hours.
c) Mode-3: When vessel is at anchor, berth or in any way made fast to a rig, platform, lay-up,
Dry-dock, idle and the Engines, Bow Thruster are not being used, though 'Hours worked’ for
the purpose of calculating the EEOI, would be Nil, however for calculation purposes the
'Hours worked' shall be recorded as 1 instead of 0.

ADVANTAGES OF SEEMP

Whilst SEEMP is a tool to improve the Energy performance, it would be prudent for owners to be
educated on the ISO 50001 EnMS (Energy Management System) which goes a step further to
understand where the excess consumption is occurring and how it could be optimized. The approach
by ISO 50001 EnMS is quite a common sense approach. Though just about 2 years old, this standard
has become relatively more popular than its cousin the ISO 14001. This is more because we are
affected by Energy quite instantly and on a daily basis, whether it is our Electricity bill or fuel
consumption cost. On the other hand the Environment disasters are not immediately visible or
appreciated. It would take a generation to see the effects and perhaps by then it could be too late.
The Ship Energy Efficiency Management Plan (SEEMP) is an operational measure that
establishes a mechanism to improve the energy efficiency of a ship in a cost-effective manner. The
SEEMP also provides an approach for shipping companies to manage ship and fleet efficiency
performance over time using, for example, the Energy Efficiency Operational Indicator (EEOI) as a
monitoring tool.
The guidance on the development of SEEMP for new and existing ships incorporates best
practices for fuel efficient ship operation, as well as guidelines for voluntary use of the EEOI for new
and existing ships (MEPC.1/Circ.684). The EEOI enables operators to measure the fuel efficiency
of a ship in operation and to gauge the effect of any changes in operation, e.g. improved voyage
planning or more frequent propeller cleaning, or introduction of technical measures such as waste
heat recovery systems or a new propeller. The SEEMP urges the ship owner and operator at each
stage of the plan to consider new technologies and practices when seeking to optimize the
performance of a ship.
The IMO calculated that a speed reduction of just 10% across the global fleet by 2010 would
result in a 23% reduction in emissions.
As a member of the maritime community, we all have a moral responsibility to achieve this. It
would make the planet a better place for generations to come in future.
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Proc. of the 5th Intl. Conf. on Technology and Operation of Offshore Support Vessels 75

REFERENCES

1. US Energy Information administration, EIA, data 2007-09 USA.

2. 2012 Guidelines on the method of calculation of the attained Energy Efficiency Design Index (EEDI) for
new ships, Resolution MEPC.212(63).
3. 2012 Guidelines for the development of a Ship Energy Efficiency Management Plan (SEEMP), Resolution
MEPC.213(63).
4. 2012 Guidelines on survey and certification of the Energy Efficiency Design Index (EEDI), Resolution
MEPC.214(63).
5. Guidelines for calculation of reference lines for use with the Energy Efficiency Design Index (EEDI),
Resolution MEPC.215(63).
6. Source1: Climate Change Factsheets of Information Unit on Climate Change (IUCC)-UNEP, 1993
7. Source2: World Energy Consumption 1990 to 2035 (Dated 2011)

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