Carbon / Environment: 2015 Summary

In this section:

Environmental goals and commitments Environmental initiatives and achievements Other initiatives Energy consumption and emissions Environmental training MV Papuan Chief goes green
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We will help create a resilient environment that provides for our future by pursuing a long-term goal of de-carbonisation and optimising energy efficiency and protecting and, where viable, enhancing the biodiversity of the environment.

2015 Summary

CNCo continues to seek innovative ways to minimise the impact of our business on the environment and biodiversity in the regions in which we operate.

Over the years, we have made a significant progress towards environmental sustainability by adopting a proactive approach towards sustainable shipping, expanding our eco-efficient fleet and implementing a number of operational initiatives.


Environmental goals and commitments

CNCo’s Environmental Policy includes our commitment to a target of “Zero Pollution” incidents and our ultimate goal for our operations to have a “Net Zero Impact” on the environment and its biodiversity. In 2015 we developed a roadmap to support this long term objective. We have also set an internal target to reduce our fleet EEOI (Energy Efficiency Operational Index or the energy we expend moving one tonne of cargo, one nautical mile).

The EEOI figures for both our liner and bulk fleets show a downward trend. This is largely a result of using more fuel efficient ships, rationalisation of individual trades, and a higher focus on the operational efficiency of each trade. We continue to monitor emissions for each ship on a per voyage and an annual basis and use the IMO EEOI metric as our baseline.


CNCo’s Environmental Policy includes our commitment to a target of “Zero Pollution” incidents and our ultimate goal for our operations to have a “Net Zero Impact” on the environment and its biodiversity.

To enable us to track our bulk and liner fleets together to benchmark how the CNCo group is performing against our internal KPIs to reduce emissions, CNCo has produced a simplified “whole fleet” EEOI metric that we have termed Fleet Operational Efficiency (FOE). As the two types of ships have very different absolute values for their EEOI, we combine the bulk fleet EEOI as constituting a relative 50% of our FOE and the liner fleet EEOI as providing the balance of 50% to give a single global figure to show how the company’s greenhouse gases (GHG) footprint is reducing against our target as a whole.

We have set an internal target to reduce our FOE by 35% below our baseline by the end of 2020. This is a key goal to advance our journey towards “Net Zero Environmental Impact”. Our progress since 1 Jan 2013 is shown in this graph.

These goals are a part of CNCo’s Strategic Scorecard 2030 and are revisited every year by CNCo’s senior leaders. As at the end of 2015, we were on track against all environmental goals. In 2015 we achieved a combined (liner and bulk fleet) FOE reduction in emissions of 8.6% towards our interim goal of a 15% reduction in FOE.

Other objectives (KPIs) towards achieving Net Zero environmental impact by 2030 include:

  • Energy Efficiency Design Index (EEDI) compliance index at ≤ 80% for all relevant liner and bulk vessels on delivery to CNCo (deriving more transport work efficiency from less fuel).
  • Existing vessel design efficiency (EVDI) to be ≥ 50% better than baseline upon taking delivery of the vessels.
  • Implement three pilot technical or operational initiatives that can lead to a 50% reduction in an atmospheric environmental impact of the liner, bulk and bulk logistics fleet.
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Environmental initiatives and achievements

In a challenging and competitive market, CNCo is always looking for innovative ways to manage our operating costs more efficiently and effectively. Over the past few years CNCo has benefitted from the use of the John Swire and Sons (JS&S) SD Fund to finance investments aimed at improving efficiency of CNCo’s fleet. They proved to be effective and are showing emission reduction results:

  • Slide valves were installed on five of CNCo’s older “Miho” class vessels and slow steaming nozzles were installed on our six older “Challenger” Class vessels. The estimated annual savings from the slide valves were 16,678 tCO2e or 2.4 % of total vessel emissions per year.
  • Trim optimisation is being monitored on 14 CNCo liner vessels and allows for optimum fuel consumption contributing to reduced costs and emissions. The estimated GHG emissions savings are 3 to 6 tCO2e/ day at mid-draft condition. Trip optimisation is achieved through selecting a trim angle at a given condition (speed, displacement and draft) where the required propulsion power is lower than for other trim angles. Through maximising fuel efficiency, it allows an ongoing improvement in performance of up to 6%.
  • CNCo introduced a new generation of eco-friendly shipping containers “Green Boxes” in 2014 and has increased their production in 2015. GreenBoxes use two coat water based coating (Valspar Aquaguard) and bamboo based flooring, eliminating the use of solvent based, zinc-rich three coat system. This waterborne coating reduces Volatile Organic Compounds (VOC) emissions by 94%, improves corrosion performance, reduces energy use and lowers emissions while improving the working environment. For each 1,000 of Green Boxes produced, approximately 22 tonnes of VOC emissions to the atmosphere are avoided. During 2015 CNCo produced 2,000 “Green boxes” eliminating 44 tonnes of VOC emissions. We now have almost 25% of our 20’DY container fleet with waterborne paint and/or bamboo flooring.
In a challenging and competitive environment, CNCo is always looking for innovative ways to manage our operating costs more efficiently and effectively.

Other initiatives

CNCo’s new multipurpose vessel, MV Papuan Chief, was fitted with the first Chinese built High Pressure Selective Catalytic Reactor in 2015. This was done ahead of the legislation for the MARPOL Tier 3 NOx rules that came into effect in January 2016 for new vessels.

All CNCo ships have Bilge and Garbage Management Plans. All the new vessels are fitted with Ballast Water Treatment Plants and all new engines are TIER II compliant for NOx emissions. Our new Swire B.Delta39 bulk carriers also have an advanced incinerator and oily water separator plant.

In 2015 we explored opportunities for the use of alternative, lower carbon fuels and closely investigated the use of drop-in bio-fuel derived from waste fats to power CNCo ships. We are working closely with Wärtsilä to prove the technical feasibility of the use of bio-fuel produced from waste products (not food feedstock) from Argent Energy, a JS&S group company, in their engines.


Energy consumption and emissions

Emissions from combusting marine fossil fuels (HFO/MGO/LO) in internal combustion engines represent 99.95% of our Scope 1 emissions. Including Scope 2 (from use of commercial electrical power) the total GHG emissions from our operations were 559,574 tCO2.

This was a 17% increase from 2014 and compares to our fleet increase of 21%. Scope 2 emissions are relatively small compared to our Scope 1 emissions and contributed 267.83 tCO2. Scope 3 emissions from shore and crew air travel contributed 5,482 tCO2 which is a 23% increase from 2014 year on year – again a result of more ships and more crew. Summary of all figures are presented in the Environmental Summary.

Scope 1 & 2 emissions data is available from 2008. The full set of data was first reported in 2011.


Environmental training

A module on energy efficiency awareness containing in-depth explanation of a Ship Energy Efficiency Management Plan (SEEMP) as well as all the measures is included in the SAC. CNCo provides training on the optimum use of the SEEMP to all Ship Managers and sea staff via computer based training, available on all our ships. We also provide our seafarers with various environmental awareness modules via our extensive videotel collection.

In addition to this training, monthly Health Safety and Environment (HSE) meetings are held on all CNCo vessels where relevant environmental topics are raised and discussed.


MV PAPUAN CHIEF GOES GREEN

MV Papuan Chief’s main engine was fitted with the first Chinese-built High Pressure Selective Catalytic reactor (SCR) when she was delivered in early July 2015.

Wärtsilä approached CNCo in late 2013, proposing to supply and install a SCR on the main engine for use as a test bed. Papuan Chief’s engine room was designed to have an SCR retrofitted so sufficient space was available. Wärtsilä has good experience of SCRs on medium speed engines operating on gas oil but had no experience operating on two stroke slow speed engines operating on heavy fuel oil.

The high pressure SCR was shop tested on MV Papuan Chief’s main engine at the China State Shipbuilding Corporation (CSSC) CMD Engine Works. The SCR will enable two stroke engines to meet the new Tier 3 NOx rules. All ships with keels laid after 1 January 2016 are required to meet Tier 3 NOx to sail in any ECA Zones. The SCR is a catalyst device to convert harmful engine exhaust gases into harmless diatomic nitrogen and water using urea injected into the exhaust gas stream.

Apart from reducing the NOx greenhouse gas emissions below 3.4g/ kWh (the current requirement for Tier 2 is 14.2 g/kWh), the SCR system also slightly lowers fuel consumption. The SCR will become a common device in years to come for any ship that needs to call at ports in the ECA zones.

The SCR is produced by the Shanghai CSSC Marine Boiler Co. Ltd to Wärtsilä’s design.

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