Vessel optimisation: a digitalised approach to CII compliance

24 May 2021 • 09:00-09:45 BST

VesselOptimisation

Webinar Week

Part of

24-27 May 2021

Panellist documents:Page 2: Grzegorz Zboś, Dorian LPGPage 10: Henning Rebnord, G2 OceanPage 15: Sebastian Ebbing, VDR - Verband Deutscher Reeder

DORIAN LPGVessel Optimisation - Webinar Week

24 - 27 May 2021

A digital approach to CII compliance

Disclaimer

Forward-Looking Statements

This presentation contains certain forward-looking statements including analyses and other information based on

forecasts of future results and estimates of amounts not yet determinable and statements relating to our future

prospects, developments and business strategies. Forward-looking statements are identified by their use of terms

and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,”

“will” and similar terms and phrases, including references to assumptions. The forward-looking statements in this

presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions,

including without limitation, management’s examination of historical operating trends, data contained in our records

and other data available from third parties. Although we believe that these assumptions were reasonable when

made, because these assumptions are inherently subject to significant uncertainties and contingencies that are

difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish

these expectations, beliefs or projections.

Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of

the underlying assumptions or expectations proves to be inaccurate or is not realized. Our actual future results may

be materially different from and worse than what we expect. We qualify all of the forward-looking statements by these

cautionary statements. We caution readers of this presentation not to place undue reliance on forward-looking

statements. Any forward-looking statements contained herein are made only as of the date of this presentation, and

we undertake no obligation to update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise, except as required by law.

Dorian LPG at a Glance

US-Based with Global Presence

The Helios LPG Pool

Dorian LPG is a liquefied petroleum gas (LPG)

shipping company and a leading owner and

operator of modern very large gas carriers

(VLGCs)

Modern, fuel-efficient fleet comprised of 19 ECO

VLGCs and three modern VLGCs, in addition to

two chartered-in VLGCs

Our Mission is to provide Safe, Reliable, CLEAN,

and Trouble-Free transportation to our customers.

The Company provides in-house commercial and

technical management services for all owned and

bareboat-chartered vessels in the fleet

Large commercial footprint with 24 vessels1 and

co-manager of the Helios LPG Pool, which operates

33 vessels total and is jointly owned with Phoenix

Tankers

Regulatory framework and strategy

IT Preparedness – Storage + Connectors + Data Flow

CII metric based on AER and EEOI - the differences in outcome

Sandboxing - Sample data not representing any vessel or voyages

CII grid - Fleet Performance main view for the future?

Sandboxing - Sample data not representing any vessel or voyages

G2 OCEAN

PIONEERING SUSTAINABLE

SHIPPING SOLUTIONS

1

A digital approach to CII compliance

Riviera – Vessel Optimization Webminar week

24-27 May 2021

Henning Rebnord

Senior Fuel Performance Specialist

- CII will be vessel specific, not as a fleet average- Owners can not put all their resources towards “beyond compliance” newbuildings

- The CII rating is changing over time with the carbon reduction trajectory- Moving target, harder to comply as years go by

- Enforcement:- If rating D for 3 years or rating E one year, need to implement corrective action for achieving

rate C or be out of business

CII – Practical Implications

Image credit: DNV

CII – Practical Implications

Case study by DNVSupramax bulker built 2011, using only engine power limitation (EPL) to comply

- Slow steaming will be used for compliance, giving less transport work from each vessel

- Early scrapping will be an option for vessels which will not be able to get ROI from necessary upgrades

- Owners are still on the fence with regards to newbuildings- Uncertainty about propulsion and fuel availability- No clear winner in the race between biofuel, ammonia, hydrogen etc..

- Conclusion: Less tonnage in the market, less transport work done and higher rates (?)

CII – the “perfect storm”

- Need to keep in mind that CII is an operational measure which can be affected:- Slow steaming- Weather routing- Maintenance, keeping hull, propeller & machinery in good shape- Installing energy saving devices with low CAPEX- Adjust CP clauses (speed/cons) to allow for speed variance

- …Trade vessels in partially laden condition?- While this is not usually good for business, it will actually benefit CII rating

- In the longer run, most current vessel will need major conversions to comply

CII – What can be done now?

A digitalised approach to CII compliance

1

Vessel optimisation: a digitalised approach to CII complianceDate: Monday 24 May - Time: 09:00-09:45 BST

Grzegorz Zboś, Fleet Performance Manager, Dorian LPGHenning Rebnord, Senior Fuel Performance Specialist, G2 OceanSebastian Ebbing, Technical Advisor, VDR - Verband Deutscher Reeder

A digitalised approach to CII compliance

2

CARBON INTENSITY INDEX

• The Carbon Intensity Index (CII), as an operational measure, was introduced during MEPC 75 and shall be finilized during MEPC 76.

• The CII-framework incl. rating will apply for all vessels > 5000 GT.

• The CII-regulatory framework will enter into force 01.01.2023.

• The annual attained CII will be rated against required CII benchmark by flag state authority.

• IMO DCS data will be key data to determine the attained CII. The enhanced SEEMP will be the key document within CII-framework.

• Ships with a D rating for three consecutive years or an E rating for oneyear are required to take corrective actions to achieve the requiredCII.

Attained CII Calculation

3

Capacity = Deadweight Tonnage (AER)

• Bulk carrier• Tankers• Container vessels• Gas carrier• LNG carrier• General cargo vessels• Refrigerated cargo carrier• [RoRo Cargo Carrier]

Capacity = Gross Tonnage (cgDIST)

• Cruise vessel• RoRo car carrier• RoRo passenger vessel• [RoRo Cargo Carrier]

𝑎𝑡𝑡𝑎𝑖𝑛𝑒𝑑 𝐶𝐼𝐼𝑆ℎ𝑖𝑝 =∑𝑖 𝐹𝐶𝑖 − 𝐹𝐸𝑖 ∗ 𝐶𝐹𝑖

𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 ∗ (𝐷𝑡𝑟𝑎𝑣𝑒𝑙𝑙𝑒𝑑 − 𝐷𝑒𝑥𝑐𝑙𝑢𝑑𝑒𝑑)

CII – Rating

4

30%

15%

15%

20%

20%

The CII-Capacity Consideration

5

𝑎𝑡𝑡𝑎𝑖𝑛𝑒𝑑 𝐶𝐼𝐼𝑆ℎ𝑖𝑝 =∑𝑖 𝐹𝐶𝑖 − 𝐹𝐸𝑖 ∗ 𝐶𝐹𝑖

𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 ∗ (𝐷𝑡𝑟𝑎𝑣𝑒𝑙𝑙𝑒𝑑 − 𝐷𝑒𝑥𝑐𝑙𝑢𝑑𝑒𝑑)

Capacity1) Deadweight Tonnage (AER)2) Gross Tonnage (cgDIST)

Advantages of a partially laden vessel

6

What can be done now?

7

1) Listen to Grzegorz and Henning

1) Start calculating the required CII for each shiptype of your fleet2) Start calculating the attained CII for each vessel individually3) Monitor the discussion during MEPC 76 and ist outcome (10 - 17 Jun 2021)4) In case of D or E rating, think about carbon reduction modification5) Get in contact with your classification society for technical advise

8

Many thanks for your attention