Environmental Efficiency through Collaboration Why Should We - PowerPoint PPT Presentation

Maurice Meehan, Head of Environmental and Climate Change May 2014 Environmental Efficiency through Collaboration

Why Should We Measure “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 opportunities. There is no more vital task” - - Richard Richard Branson Branson - - Richard Richard Branson Branson

Climate change will also change our businesses Our mutual commitments to reducing our footprints: DONG Energy Maersk Drilling They have had an increase in emissions in 2013. By 2015: We will reduce the impact Carbon dioxide emission increased by 19 percent of drilling on our customers supply in 2013 compare to last year”. chains. Our target is a 15 % reduction Dong Energy aims to reduce CO2 emissions , 50% of CO2 per 2018 (2010 baseline) by 2020 and 85% by 2040 compared with 2006.

What Should We Measure DONG Energy’s commitments Maersk Drilling commitments � calculate, have certified, and share our DONG Energy aims to contribute to continuous improvement. Carbon Foot Print - Maersk Drilling CO2 emissions are verified by Ernst and Young � The aim is to reduce our CO2 emissions since 2010. per kilowatt-hour generated by 50% by 2020 and 85% by 2040 compared with � set and share an action plan of 2006. set and share an action plan of Carbon set and share an action plan of set and share an action plan of Carbon Carbon Carbon Reduction – Reduction Reduction Reduction – Maersk – – Maersk Maersk Maersk Drilling has Drilling has Drilling has a target to Drilling has a target to a target to a target to � Extensive investments in renewable reduce CO2 emissions per tonne cargo reduce CO2 emissions per tonne cargo reduce CO2 emissions per tonne cargo reduce CO2 emissions per tonne cargo energy, by restructuring production and transported by 15 % transported by transported by transported by 15 % form 15 % 15 % form 2012 form form 2012 2012 2012 to to 2018 to to 2018 2018 2018 by efficiency improvements. � Waste recycling of as many residuals � monitor along with DONG Energy’s the as possible development of our reduction commitments – Customer scorecard provided quarterly � Energy Efficiency Energy Efficiency Energy Efficiency Energy Efficiency � Careful treatment of produced water Department

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 is defined EEOI EEOI EEOI 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 better The lower the EEOI the better better better! ! ! !

EEOI is defined as the ratio of mass of CO2 ( M ) emitted per unit of (Operational) work load: gCO2 is derived from the actual fuel consumed on Indicator = M CO2/(work load) board in a set period .eg a It is a utilisation efficiency thus includes month • 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. Energy Efficiency Operational Index This also then includes the utilisation in the • (EEOI) efficiency issue as we can challenge on voyage planning. g CO2 tonne cargo.km (Technical) (Commercial) Distance cargo carried, Sailed, includes including ballast legs ballast legs

EEOI is defined as the ratio of mass of CO2 ( M ) emitted per unit of (Operational) work load: gCO2 is derived from the actual fuel consumed on Indicator = M CO2/(work load) board in a set period .eg a It is a utilisation efficiency thus includes month • 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 of KWH, then an increase in productive time will give us an increase in efficiency. Energy Efficiency Operational Index This also then includes the client in the • (EEOI) utilisation issue as we can challenge them on their planning and diesel consumption. g CO2 Technical efficiency is derived from the gCO2 • and KWH ratios. Kwh. productive hours It allows us to normalise issues such as • difficulty of drilling environments, comparing semi subs to jack ups etc. (Technical) (Commercial) Kwh are the Productive hours kilowatt hours are defined per produced contract and onboard during a agreed on a set period, eg a monthly basis. month

Example EEOIs 1,4 1,2 1 0,8 EEOI Maerak Rig I 0,6 Maersk Rig II 0,4 0,2 0 Sep-yy Oct-yy Nov-yy Dec-yy Jan-yy Feb-yy Month

Energy Management as a Barrier. 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 Department

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. Thanks for your time Department