Environmental Responsibility

Fulfilling Our Environmental Responsibility

At BW LPG, we address major issues by combining global strategies with everyday actions that collectively add up to make a big difference. We recognise the environmental challenges facing society and are committed to being part of the solution. To do so, we focus on two issues most material to BW LPG and our stakeholders: total voyage efficiency and environmental compliance.

Total Voyage Efficiency

Caring for the environment goes beyond compliance with regulations; it is a fundamental approach in how we conduct business, where we act for the future. A significant part of our operations is directed towards achieving fuel efficiency and reducing emissions. We have invested in initiatives to manage the environmental impact of our operations while providing competitive energy solutions for our customers.

The “Small Things”

In addition to Smart Voyage Planning, many other efforts are implemented to ensure that our fleet of vessels are operating efficiently. Hydrodynamic improvements – propeller polish and hull inspections, trim optimisation, propeller boss cap fins and mewis duct, use of auxiliary engines and specific fuel oil consumption; all make up the many considerations the team managing our vessels think about in their daily work.

Communication is key to efficient operations. Ship managers, charterers, port agents, brokers and vessels are all kept closely aligned both during pre-fixture commitments and during the post-fixture voyage execution.

Smart Voyage Planning

Planning for a journey involving thousands of kilometres of open seas, and the vagaries of weather is both an art and a science. Speed calculators are used to monitor the consumption of fuel to maintain the speed of the vessel versus warranties. A close eye on global weather patterns must be kept and communicated between shore and office to ensure the optimal route to avoid strong winds and waves, or unsafe weather conditions, to protect our crew and cargo. Like a car on a long highway, a vessel may also be placed on autopilot – the Company has guidelines in place to optimise autopilot to reduce rudder deflections, and hence fuel consumption. Lastly, close management of bunkers using mass flow meters and other forms of improved instrumentation (versus manual tank dipping and calculation), will ensure that BW LPG takes the right amount of fuel for every journey.

Environmental Compliance

We monitor our CO2 emissions and remain well-prepared for the upcoming European Union’s CO2 Monitoring Reporting and Verification (MRV) regulation and International Maritime Organisation’s CO2 Data Collection System (DCS). BW LPG is a member of Workgroup 5 for environmentally friendly shipping (WG5).

WG5 consists of five shipping companies, BW LPG, Klaveness, Wilhelmsen, Grieg Star and Solvang Shipping Group. WG5’s purpose is to contribute towards the Norwegian Shipowners Association’s environmental vision of “Zero harmful emissions to air and sea.” We meet regularly to benchmark our environmental efforts and performance.

BW LPG is committed to playing its part in reducing sulphur oxide emissions for a cleaner and better world

We are facing the biggest environmental challenge our generation has ever seen. The earth is warming up as a result of high greenhouse gas emissions from human activities. The burning of fossil fuels (such as coal, oil and gas) for power is one of the key contributors.

Shipping has played a contributing role in this. Whilst shipping has the lowest emissions per ton-mile compared to other modes of transportation, it does have the highest frequency of activity, transporting 90% of world trade. Shipping today consumes 6.7% of the world’s oil (DNV GL). The main source of fuel for ships is heavy fuel oil (HFO), which is one of the dirtiest but cheapest forms of energy. Pollutants poured out by ships into the air are black carbon, sulphur and nitrogen oxides which not only contribute to global warming but also pose a threat to human health. It is estimated that 4-8% of global sulphur oxide emissions come from ships (Eining 2007).

greenhouse

In a landmark decision for the sake of both the environment and human health, IMO has set 1 January 2020 as the implementation date for a significant reduction in the sulphur content of the fuel oil used by ships. The new global limit is 0.50% m/m (mass by mass). This will significantly reduce the amount of sulphur oxide emanating from ships and should have major health and environmental benefits for the world, particularly for populations living close to ports and coasts. On 9 February 2018, IMO has agreed to draft amendment on the prohibition of the carriage of fuel oil for use on board ships, when that fuel oil is not compliant with the new low sulphur limit which comes into force from 2020. There will, however, be an exception for ships fitted with an approved “equivalent arrangement” to meet the sulphur limit – such as an exhaust gas cleaning system (EGCS), otherwise known as the “scrubber”.

so2 emissions cleaner world

BW LPG supports the use of LPG as fuel for a cleaner world

These new regulations put pressure on traditional marine fuels and opens the discussion on alternative sources of fuel to be used for sea-going vessels. BW LPG supports IMO’s suggested regulation through developments on LPG as marine fuel and through active participation in the Trident Alliance. We believe this restriction on the carrying of high sulphur fuel oil is long overdue. It will contribute to a cleaner maritime industry and create a level playing field for all. Regulations, however, only work if they are properly enforced, hence our participation in the Trident Alliance which pushes for strong regulation and robust enforcement.

We believe that the use of LPG as a marine fuel provides a very strong alternative for the marine bunker industry. Here are the reasons:

REDUCTION PER ITEM WHEN USING LPG AS BUNKER FUEL, RELATIVE TO USING MARINE GAS OIL AS BUNKER FUEL

bwlpg graph

- LPG emissions are significantly lower compared to other marine fuel sources

- LPG is a very clean fuel to store and handle. LPG is stored under pressure and any leak will disperse without creating an environmental mess.

- LPG burns cleanly in the engine, resulting in less maintenance and longer engine life.

- Dual fuel engine is now available as a retrofit solution

- LPG is a clean burning fuel and its use produces virtually no particulate matter or soot.

- The supply and forecast of LPG globally for the next few years is very good

- LPG has a higher calorific value allowing a longer range between refill and bunkering

- There is an existing highly developed LPG distribution network already in place to support a marine fuel business

Case Study: A Lower Carbon Footprint on Water

Since the introduction of BW LPG’s energy management project in 2011, BW LPG’s carbon emissions were reduced by 20%, thanks to strategies focused on our vessels and voyage planning.

WORKING TOWARDS A LOWER CARBON FOOTPRINT:  OUR RESULTS

2011–2017: Caring for the environment goes beyond compliance with regulations; it is a fundamental approach in how we conduct business, where we act for the future. Since the introduction of our BW LPG energy management programme, we have reduced our carbon emissions by 20%.

- US$7 million
Bunkers saved by slow steaming amounted to 22,400MT or approximately US$7 million in 2017

- 1,483 MT
Bunkers saved on optimised routes versus shortest routes

- 28 Vessels
Weather-routed across the Pacific Ocean between Panama Canal and Far Eastern Ports

Total Voyage Efficiency

- SMART WEATHER ROUTING
Planning for a journey involving thousands of kilometres of open seas and the vagaries of weather is both an art and science. Everything from speed calculators, metrological data and experience are tapped.

- THE “SMALL THINGS"
Hydrodynamic improvements − propeller polish, hull inspections, trim optimisation, propeller boss cap fins, mewis duct, use of auxiliary engines, specific fuel oil consumption − these make up the many considerations that we think about.