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Singapore: Bulk carrier newbuildings have a potential for saving 5 – 10 percent of fuel cost by introducing fuel saving measures. This is one of the findings of a joint project between DNV and SDARI on fuel saving initiatives for bulk carriers, which was presented at Sea Asia in Singapore. The outcome of the project is a Guideline with an assessment of all the most relevant fuel saving measures and a calculator to do Return on Investment analysis.

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Typical bulk carrier designs with traditional propulsion systems have a significant potential for fuel saving. Fuel cost represents some 60 – 70 percent of a bulk carrier’s operations. Shanghai Merchant Ship Design & Research Institute (SDARI) and DNV joined forces to meet the need for an objective guide addressing fuel saving measures for bulk carriers.

“A large number of fuel saving measures are being promoted, with seemingly large saving potentials. Owners are bombarded with well meant offers of clever energy efficiency devices.” DNV’s director for bulk carriers, Mr. Michael Aasland said at the presentation of the project. “The main goal of the project is to help shipowners to navigate the jungle of different devices and help them select the measures, which gives the most benefit, in terms of reducing emissions and cutting cost cutting in an extremely competitive bulk market. As we all know, the price of fuel oil is high and the rates are low,” he said.

Deputy Director Zhou Zhiyong of SDARI underlined the relevance of the new Guideline for Fuel Saving Measures. “We have developed an objective guideline that includes a comprehensive list of relevant fuel saving devices in the market, with typical ranges of expected fuel saving. These numbers originate from various sources, like supplier data or owner’s estimates, full-scale measurements and computational fluid dynamics (CDF) analysis. We have also been able to collect approximate prices for the most common devices.” he said.

A specially developed Return on Investment Calculator makes it easy to perform a cost-benefit analysis, based on future fuel price and interest rate scenarios, estimates on reduced fuel consumption, as well as investment and maintenance cost. The calculator then gives net present value, rate of return and payback period for the selected fuel saving device.

“Based on research done, we see a potential for fuel savings up to 5 – 10 percent.” said Michael Aasland. “An example with a relatively simple device, shows that a 47 thousand USD investment has a net present value after three years of more than 250 thoursand USD, and that the investment is profitable after 5 months. Through the new Guideline and RoI Calculator we hope to make it easier for owners who order bulk carriers to include investments in fuel saving devices in order to improve environmental performance, save cost, and gain competitiveness in a very tough market,” said Mr. Aasland.

About SDARI:
Established in 1964, Shanghai Merchant Ship Design & Research Institute (SDARI) is a ship design consultant under China State Shipbuilding Corporation (CSSC).

SDARI has the extensive experience in designing various types of ships, e.g. bulkers, container ships, tankers, multi-purpose vessel, RoRo, offshore engineering vessel and etc., and has accumulated more than 800 as-built designs in the past four decades.

SDARI provides the entire range of service from the conceptual development to the workshop drawings and is the market leader in respect of ship design and development in China.

Date: 2011-04-13

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About DNV:

DNV is a global provider of risk management services with the purpose of safeguarding life, property and the environment. Organised as an independent, autonomous foundation, DNV balances the needs of business and society, based on its independence and integrity. With its vision of creating a global impact for a safe and sustainable future for its customers and, ultimately, society at large, DNV serves a range of high-risk industries, with a special focus on the maritime and offshore sectors, where DNV is one of the world’s leading classification societies.

Established in 1864, the company has a global presence with a network of 300 offices in 100 countries, and is headquartered in Oslo, Norway. Its prime assets are the knowledge and expertise of its 9,000 employees from more than 80 nations. Recognised as a highly respected third party providing trust and confidence for its customers’ stakeholders, DNV has been authorised by governments and national authorities to provide services in countries worldwide and has ambitions to grow further, especially in Asia, which will be the engine for global economic growth in the years to come.

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