Environmental Efficiency through Collaboration Why Should We - - PowerPoint PPT Presentation

Environmental Efficiency through Collaboration

Maurice Meehan, Head of Environmental and Climate Change May 2014

“Business is the force of change. Business is essential to solving the climate crisis, because this is what business is best at: innovating, changing, addressing risks, searching for

• pportunities. There is no more vital task”
• Richard

Richard Richard Richard Branson Branson Branson Branson

Why Should We Measure

Climate change will also change

• ur businesses

Our mutual commitments to reducing

• ur footprints:

DONG Energy They have had an increase in emissions in 2013. Carbon dioxide emission increased by 19 percent in 2013 compare to last year”. Dong Energy aims to reduce CO2 emissions , 50% by 2020 and 85% by 2040 compared with 2006. Maersk Drilling By 2015: We will reduce the impact

• f drilling on our customers supply

chains. Our target is a 15 % reduction

• f CO2 per 2018 (2010 baseline)

Department

Maersk Drilling commitments

calculate, have certified, and share our Carbon Foot Print - Maersk Drilling CO2 emissions are verified by Ernst and Young since 2010. set and share an action plan of set and share an action plan of set and share an action plan of set and share an action plan of Carbon Carbon Carbon Carbon Reduction Reduction Reduction Reduction – – – – Maersk Maersk Maersk Maersk Drilling has Drilling has Drilling has Drilling has a target to a target to a target to a target to reduce CO2 emissions per tonne cargo reduce CO2 emissions per tonne cargo reduce CO2 emissions per tonne cargo reduce CO2 emissions per tonne cargo transported by transported by transported by transported by 15 % 15 % 15 % 15 % form form form form 2012 2012 2012 2012 to to to to 2018 2018 2018 2018 monitor along with DONG Energy’s the development of our reduction commitments – Customer scorecard provided quarterly

DONG Energy’s commitments

DONG Energy aims to contribute to continuous improvement. The aim is to reduce our CO2 emissions per kilowatt-hour generated by 50% by 2020 and 85% by 2040 compared with 2006. Extensive investments in renewable energy, by restructuring production and by efficiency improvements. Waste recycling of as many residuals as possible Energy Efficiency Energy Efficiency Energy Efficiency Energy Efficiency Careful treatment of produced water

What Should We Measure

How can we Measure

A New Industry Benchmark Energy Efficiency Operational Index (EEOI) Energy Efficiency Operational Index (EEOI) Energy Efficiency Operational Index (EEOI) Energy Efficiency Operational Index (EEOI)

EEOI EEOI EEOI EEOI is defined is defined is defined is defined as: as: as: as: the ratio of mass of CO2 (M) emitted per unit of work load

Energy Efficiency Operational Index= MCO2/[work load] Energy Efficiency Operational Index= MCO2/[work load] Energy Efficiency Operational Index= MCO2/[work load] Energy Efficiency Operational Index= MCO2/[work load]

• A utilisation

utilisation utilisation utilisation efficiency thus include Technical, Operational and Commercial factors Technical, Operational and Commercial factors Technical, Operational and Commercial factors Technical, Operational and Commercial factors

• The lower the EEOI the

The lower the EEOI the The lower the EEOI the The lower the EEOI the better better better better! ! ! !

Energy Efficiency Operational Index (EEOI) g CO2 tonne cargo.km

(Operational) gCO2 is derived from the actual fuel consumed on board in a set period .eg a month

(Commercial) cargo carried, includes ballast legs (Technical) Distance Sailed, including ballast legs

EEOI is defined as the ratio

• f mass of CO2 (M) emitted per unit of

work load: Indicator = MCO2/(work load)

• It is a utilisation efficiency thus includes

technical, operational and commercial factors

• The lower the EEOI the better.
• The above departments have an influence on

the efficiency. Eg. assuming we use the same amount of fuel to travel the same amount of distance, then an increase in cargo carried will give us an increase in efficiency.

• This also then includes the utilisation in the

efficiency issue as we can challenge on voyage planning.

Energy Efficiency Operational Index (EEOI) g CO2

• Kwh. productive hours

(Operational) gCO2 is derived from the actual fuel consumed on board in a set period .eg a month (Commercial) Productive hours are defined per contract and agreed on a monthly basis. (Technical) Kwh are the kilowatt hours produced

• nboard during a

set period, eg a month

EEOI is defined as the ratio

• f mass of CO2 (M) emitted per unit of

work load: Indicator = MCO2/(work load)

• It is a utilisation efficiency thus includes

technical, operational and commercial factors

• The lower the EEOI the better.
• The above departments have an influence on

the efficiency. Eg. assuming we use the same amount of fuel to produce the same amount

• f KWH, then an increase in productive time

will give us an increase in efficiency.

• This also then includes the client in the

utilisation issue as we can challenge them on their planning and diesel consumption.

• Technical efficiency is derived from the gCO2

and KWH ratios.

• It allows us to normalise issues such as

difficulty of drilling environments, comparing semi subs to jack ups etc.

Example EEOIs

0,2 0,4 0,6 0,8 1 1,2 1,4 Sep-yy Oct-yy Nov-yy Dec-yy Jan-yy Feb-yy

EEOI Month Maerak Rig I Maersk Rig II

Energy Management as a Barrier.

Department

Operators decide as policy to use Units that score above a F rating for EEDI, (how many units does that exclude?) All Units at this stage being equal, charterers use Units scoring above F rating for EEOI

Climate Change Climate Change Climate Change Climate Change According to a news story, if global warming continues, in 20 years the only chance we’ll have to see a polar bear is in a

• zoo. So in other words, nothing is going to change.

Department

Thanks for your time