The basics of EEXI – from 2023, all existing ships must meet ...

EEXI does not require any measurement or reporting of true CO2 emissions while the ship is in operation. EEXI is the sister to EEDI, Energy ... Skiptocontent September15,2021 ThebasicsofEEXI–from2023,allexistingshipsmustmeetnewenergyefficiencystandards EEXIEmissionsRegulationsSustainableshipping byOssiMettälä,CustomerSuccessManager,NAPAShippingSolutions InJune2021,newamendmentswereadoptedtotheInternationalMaritimeOrganization’s(IMO’s)MARPOLconventionintheMarineEnvironmentProtectionCommittee(MEPC).Theadditionsincludednewenergyefficiencyrequirements– EnergyEfficiencyExistingShipIndex(EEXI) andCarbonIntensityIndicator(CII).Thesearepartoftheglobalmeasurestoreducegreenhousegas(GHG)emissionsfromshipping. Inthisblog,IwillintroducethebasicsofEEXI. WhatisEEXI? TheEEXImeasuresCO2emissionspertransportwork,purelyconsideringtheship’sdesignparameters.EEXIdoesnotrequireanymeasurementorreportingoftrueCO2emissionswhiletheshipisinoperation.EEXIisthesistertoEEDI,EnergyEfficiencyDesignIndex,whichhasbeeninforcesince2013.Theseindexesmeasurethesameinpractice;however,EEDIisappliedtonewshipswhileEEXIappliestoexistingvessels.EEXIregulationisoneofthemostsignificantmeasuresbytheIMOtopromotemoreenvironmentallyfriendlytechnologiesandreducetheshippingindustry’scarbonfootprint. Simplified,EEXIestimatesCO2emissionspertransportwork(gramsofCO2perton-mile),althoughtheequationismorecomplex,accountingforpossiblereductionfactors,energy-savingequipment,etc. AsEEXIandEEDIaimtoimprovetheglobalfleet’senergyefficiency,thereisamaximumthresholdlevelthattheindexmustfallbelow.Thereferencelineformingtherequirementlevelwasimplementedin2013,withtherequirementgettingstricterevery5years(from2015).Thebaselineswerecreatedforeveryshiptypeseparatelyusingregressionanalysisofoperationdata.Currently,anynewshipsoperatingininternationalwaters,withagrosstonnageover400,mustmeetEEDIPhase2requirements.Inmostvesseltypesandsizes,thisis20%belowtheoriginalEEDIreferenceline.So,anynewvesselsbuiltareincreasinglyenergy-efficientovertime. Energyefficiencyrequirementsfornewshipsaregettingstricterovertime. However,shipsarebuilttooperatefordecadestocome.Therefore,meetingtheambitiousemissionsreductiontargetssetforshippingrequirestheexistingfleettobecomemoreenergyefficient.ThisiswhereEEXIcomesintoplay.From2023,practicallyallexistingshipsmustfallbelowacertainlimitofCO2emissionspercargocapacity.Sincetheenergyefficiencyrequirementshavebecomestricterovertime,mostoftheolderexistingglobalfleetwillnotmeetthenewEEXIrequirements.SimpsonSpenceYoungestimatesthatlessthan25%ofbulkersandtankerscomply. Howtocomply?  Theeasiestwaytogettheenergyefficiencyindexdownistoreduceenginepower,asvessels’fuelconsumptionandemissions,respectively,increaseasspeedincreases.Thepropulsionpower,thusCO2emissions,isapproximatelyproportionaltothecubeofthespeed.Thismeansthatreducingspeedby20%candroptheemittedCO2by50%.Slowsteaming,therefore,isamorecarbon-efficientwaytotransportgoods.Theenginepowerlimitationsystemscanbebypassed,butonlyifrequiredforthesafeoperationoftheship,forexample,inharshweatherconditions. OthersolutionstoreduceEEXIincluderetrofittingcleantechnologies,suchasbatteries,wasteheatrecoverysystems,airlubricationtechnology,wind-assistedpropulsion,orusingloworzero-carbonfuels.TheimpactthesesolutionshaveonimprovingenergyefficiencymaynotbeenoughontheirowntocomplywithEEXI;therefore,someenginepowerlimitationislikelytoberequiredinmostcases.However,optionstoretrofitenergy-savingequipmentmaynotbefinanciallyfeasibleformostownersandoperators,especiallyforoldervessels. Asthetypicalconsumptioncurveshows,thevessel’sfuelconsumptionincreasesconsiderablywhenspeedincreases. HowdoesEEXIimpactthemaritimeindustry? Fromatechnicalperspective,allshipownersandshipbuildingstakeholdersmustconsiderandassesshowtheywillsupportcompliancewithEEXI.Isitfeasibletoretrofitcleantechnologies?Isthepaybacktimegoingtobeshortenough?Arecleantechnologiesbecomingmoreaffordablethroughincreasedinterestandinvestmentsinthemarket?Dependingonthevesselageandprospects,someownersandoperatorsmayevenbescrappingvesselsearlierthanenvisioned. Fromacommercialperspective,newregulationsbringuniqueuncertaintiesthataresettoshakethestatusquo.Charterersarealreadyhesitatingtomakelong-termagreementslastingbeyond2023,whichincreasespressureonshipownerstodecreasefreightratestogetdeals.Oddpricefluctuationsinfreightratesandfuelpricesaretobeexpectedasdifferentplayers“betondifferenthorses.”Currently,everyonefromshipownerstocharterers,brokers,shipyards,andconsultantsarefeverishlytryingtofigureouthowthenewregulationswillimpactbusiness.Isittimetosell,invest,orwait? However,theclimateisthebiggestbeneficiary.RegulatingtheenergyefficiencyofnewvesselssolelythroughEEDIisjusttooslowtoimpacttotalemissionsbecausetheglobalfleetrenewalrateissogradual.Likewise,anincreasingregulatorydemandfornewshipstobeenergyefficientmightevenslowdowninterestinrenewingtheexistingglobalfleet.Havingexistingandnewshipsundersimilarregulationsevensouttheplayingfield. AlongwiththeEEXIregulation,theCarbonIntensityIndicator(CII)iscomingtoforcein2023.ThisindicatorconsiderstheactualCO2emissionsinshipoperations.Together,CIIandEEXIwillsignificantlyincentivizeshippingtofindandfightinefficiencies. NAPAsolutionssupportingcompliance ThesolutionstosuccessfullycomplyingwithEEXIandCIIarecomplexbutultimatelycomebacktothesameconclusion;thesoonerfleetscanbeginusingthetoolscurrentlyavailabletosavefuelandoperatemoreefficiently,theeasierthetransitionsoverthenextfewyearswillbe. NAPAVoyageOptimizationisaneasy-to-usesolutionforimprovingoperationalefficiencybyoptimizingrouteandspeedprofilesforanyseapassage.AspartofNAPAFleetIntelligence,NAPAVoyageOptimizationrunsinawebbrowserwithouttheneedforanyadditionalhardwareinstallationsorinitialinvestment.NAPAFleetIntelligencehasthetoolsformonitoringvessel’stechnicalperformancetokeeptrackofhullfoulingstatusandavoidextrafuelconsumptionandemissions. Overall,weatNAPAareatyoursupportonyourfleet’sdecarbonizationjourney–fromdesigntooperation;NAPAhasthetoolsyouneedtoadjusttothenewregulations.Getintouchtofindoutmore!   ThisblogpostwasoriginallypublishedonLinkedInonSeptember14,2021. Tags EEXIEmissionsRegulationsSustainableshipping Sharewithfriendsorcolleagues Nevermissastory WewillkeepyouupdatedonNAPA’sinsightsrelatedtothetopicsofyourinterest. Subscribenewsletter Readnext post| ShipOperations Decarbonizationinthemaritimeindustry-Whatitis,andwhatyoucandoaboutit? 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