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DNV: Monitoring of CII Rating and how to stay compliant

DNV elaborates on CII, importance of reliable emission monitoring, and gives recommendations to ship owners and managers on how to stay compliant.

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Classification society DNV on Tuesday (27 June) released a statutory news for ship owners and managers on Carbon Intensity Indicator (CII) and carbon intensity rating with its recommendations for compliance:

From 1 January 2023, it is mandatory for all ships to collect emissions data for reporting their annual operational CII and CII rating. This statutory news aims to raise awareness of CII, the importance of reliable emission monitoring, and give recommendations on how to stay compliant.

Carbon Intensity Indicator (CII) and carbon intensity rating

The attained CII is a value reflecting the energy efficiency of a ship for a given calendar year based on the verified DCS data. For certain ship types and operations, the attained CII may be further adjusted by applying correction factors as agreed by the IMO, as illustrated below:

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Taking into consideration the type and the size of the ship and the relevant year the required CII is determined, the required CII gradually becomes stricter over time. The requirement is that the attained CII should not exceed the required CII.

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Based on the attained and the required CII, a ship is awarded its annual carbon intensity rating. The rating spans from A to E, where A is the best and the required CII is the middle point of the C rating. The rating is noted on the Statement of Compliance (SoC) issued each year by the DCS verifier.

The SEEMP Part III (the 3-year plan)

Every ship required to comply with the CII requirement shall have a plan on how to achieve the required CII for the next three years. This plan, known as the SEEMP Part III, includes measures to be implemented together with a timeline and responsibilities for the implementation.

Another important aspect of the plan is that it is subject to self-evaluation, by evaluating the effectiveness of the planned measures over time and continuously improving the plan as needed. To achieve this, knowing the current CII status of the ship is key, and, hence, having a proper monitoring tool is essential.

Monitoring of CII ratings

DNV provides the monitoring tool Emissions Insights, which provides an overview of your fleet and confirms where you are with respect to your CII, showing the preliminary year-to-date ratings based on your DCS data uploads so far. The tool is available through My Services on Veracity for our existing DCS customers. The accuracy will, of course, depend on the frequency of your DCS data uploads. Emission Insights also shows the corrected CII in case correction factors have been applied and reported. Emissions Insights is illustrated below:

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If you require a more comprehensive solution including, for instance, emission performance simulation and verified voyage statements, we recommend you to look into DNV’s Emissions Connect, which is a separate subscription service (Emissions Connect is also available for companies not using DNV as a DCS verifier).

Continued CII compliance

The implementation of the SEEMP Part III will be followed up through periodical company audits. Failing to achieve the objectives of the SEEMP and receiving an inferior rating, in other words an E rating or three consecutive D ratings, will trigger actions by the ship manager in the form of a corrective action plan (CAP). This includes planned actions to increase the energy efficiency sufficiently to achieve the required CII (C rating). To remain compliant and receive the SoC, the CAP needs to be reviewed and verified.

Recommendations

For your SEEMP Part III plan to work and to ensure that you are on the right track, it is important to evaluate and monitor your vessels’ CII rating. Here are some steps you can follow to stay compliant:

  • Review performance data by collecting data on key performance indicators, such as maintenance records, fuel consumption, voyage reports, and inspection reports. Use this information to identify trends and areas for improvement.
  • Conduct regular assessments of your vessels’ operations and performance, including safety inspections, risk assessments, and operational audits. These assessments can help identify potential problems and provide an opportunity to address them before they escalate.
  • Engage stakeholders including crew, management and customers in the evaluation process. Encourage them to share their perspectives and experiences and use this feedback to identify areas for improvement.
  • Use benchmarking tools such as Emissions Insights to compare your vessel’s performance against industry standards and best practices. This can help you identify areas for improvement.
  • Monitor progress regularly and track the results of your efforts to improve your vessel’s CII rating. This will help you determine the effect of selected actions and identify areas where additional efforts are needed.
  • Continuously improve and assess your vessel’s operations, processes and procedures. Regularly review and update your safety procedures and incorporate new technology and best practices as they become available.

 

Photo credit: Venti Views on Unsplash / DNV
Published: 30 June, 2023

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Milestone

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.

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Singapore retains titles as Best Global Seaport and Best Seaport in Asia

The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

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Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore 
Published: 29 September, 2023

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Biofuel

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel  

Firm’s operations teams in Singapore and Geneva successfully renewed its ISCC EU sustainability certification for the supply of biofuel bunkers, says Louise Tricoire, Vice President.

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TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Louise Tricoire, Vice President of TotalEnergies Marine Fuels recently said the firm’s operations teams in Singapore and Geneva successfully renewed its International Sustainability and Carbon Certification (ISCC) EU sustainability certification for the supply of biofuel bunkers.

“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media. 

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately. 

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023

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Alternative Fuels

Seapath, Pilot LNG launch JV to develop dedicated LNG bunkering facility in US Gulf Coast

With operations beginning in early 2026, the construction of the new facility will provide bunker fuel for LNG-powered vessels in the greater Houston/ Galveston area of Texas.

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Seapath, Pilot LNG launch JV to develop dedicated LNG bunkering facility in US Gulf Coast

Seapath, a maritime subsidiary of Libra Group, and Pilot LNG, LLC (Pilot), a leading Houston-based clean energy solutions company, on Thursday (28 September) announced that they have formed a joint venture (JV) to develop, construct, and operate the first liquefied natural gas (LNG) bunkering facility in the U.S. Gulf Coast.

With operations beginning in early 2026, the construction of the new facility will provide bunker fuel for LNG-powered vessels in the greater Houston/ Galveston area of Texas.

The project, which will be developed with an initial investment of approximately USD 150 million, meets the needs of a vital global and U.S. trade corridor. According to the Greater Houston Partnership, the Greater Houston waterways generated over USD 906 billion in economic value to the U.S. in 2022. 

In addition, a 2023 U.S. Department of Transportation report recognised the Greater Houston area as the top US port by tonnage.

While LNG bunkering infrastructure has been developing overseas, U.S. infrastructure supporting its uptake has developed slower. Pilot and Seapath’s LNG bunkering facility will use their combined expertise to serve essential U.S. Gulf Coast port complexes, including servicing major cruise lines and container vessel operators.

Led by LNG industry veterans with extensive experience on the terminal and marine side, Pilot LNG is committed to delivering LNG to new and existing U.S. markets, including fuel/bunkering terminals and related infrastructure. This is the first in a series of strategic investments by Seapath and Pilot to create a network of LNG facilities in areas of unmet need in the U.S.

“Seapath is dedicated to investing across the marine infrastructure space and will provide strong financial backing to Pilot’s LNG bunker projects,” said Jonathan Cook, CEO of Pilot. 

“We look forward to working closely with Seapath to support the gradual decarbonization of the marine industry. We look forward to delivering a U.S. Gulf Coast facility in a timely manner based on the extensive development work already completed to meet the significant needs for LNG fuel, which also supports ongoing decarbonization across the industry.”

A U.S. company led by Merchant Mariners and former service members, Seapath was formed recognizing the need for critical investments in the U.S. maritime economy. The company plans to continue investing in innovative projects within maritime connectivity, industrial technologies, port real estate, and Jones Act vessels.

“The infrastructure under development will provide LNG to a growing market seeking cleaner marine fuel, particularly as customers look for economical ways to comply with tightening emissions regulations, including regulations set by the IMO in 2020,” said Seapath CEO Greg Otto.  

“We are pleased to be working with a first-class team in Pilot LNG and with some of the leading ports in the United States to bring this critical LNG bunkering infrastructure to the Gulf Coast region where there is high demand for it. Thanks to our valuable partnership with Pilot, we look forward to developing more of these much-needed facilities in ports across the United States.”

Seapath is one of 30 operational entities of Libra Group, a privately owned business group whose subsidiaries own and operate assets in nearly 60 countries with six business sectors, including maritime and renewable energy. The Group’s three maritime subsidiaries include Lomar Shipping, a global shipping company with a fleet of more than 40 vessels, and Americraft Marine, which owns and operates a Jones Act Shipyard in Palatka, Florida. Significantly, the shipyard is among the few in the U.S. to construct crew transfer vessels to service the growing offshore-wind industry and traditional inland-marine assets such as tugboats and barges.

“Libra Group is committed to advancing innovation across our sectors, from maritime to aerospace, to renewable energy and more. As a global organization, we will harness insights from across our network to bolster the uptake of more sustainable technologies to advance our sectors while identifying potential applications across our other sectors,” said Manos Kouligkas, CEO of Libra Group.

“Adoption of more sustainable fuels is critical to future-proofing our industries against a rapidly changing ecosystem. We will continue to support the transition to greener energy solutions, and we look forward to following Seapath’s work to evolve the U.S. maritime industrial sector.”

Pilot and Seapath will continue with all front-end engineering and design development for their projects in the third and fourth quarters of 2023 to file applications with the necessary federal and state agencies to permit, site, construct and operate the small-scale LNG terminal for marine fuel. Pilot and Seapath anticipate announcing details of their project investment by the second half of 2024.

Photo credit: Libra Group
Published: 29 September, 2023

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