1. New Chapter of Maritime Industry with Ecology New Chapter of Maritime Industry with Ecology 2011. 1. 5 Prepared by C.H. Park Executive Vice President / CTO Ship Design and R&D Prepared by C.H. Park Executive Vice President / CTO Ship Design and R&D 01 / 33

2. Contents 1. Enlightenment 2. Near Future Green Technology 3. Future Green Technology 4. Environment Management 5. Conclusion New Chapter of Maritime Industry with Ecology02 / 33

3. 1. Enlightenment 03 / 33

4. UNFCCC COP 15 TALK BOX 04 / 33New Chapter of Maritime Industry with Ecology

5. Korea Railway Says If you travel from Seoul to Busan by train instead of by car, you are planting 11 pine trees. Enlightenment ( 啓蒙 ) is very important !! *Ref: Korail 05 / 33New Chapter of Maritime Industry with Ecology

6. Hanjin Shipping tells us From: Seoul, Korea ❖ Customers’ demand for CO 2 emission data across the entire supply chain CO emission from their ships ❖ Major container liners disclosing data on CO 2 emission from their ships Need to reduce fuel consumption ❖ Need to reduce fuel consumption To: Toronto, Canada 06 / 33New Chapter of Maritime Industry with Ecology

7. 07 / 33 2. Near Future Green Technology

8. Hydrodynamic Technology VLCC VLCC(GF) Samsung’s Energy Saving Devices Hullform Development For Green Future Ship SAVER Fin STAR Propeller & SARB * VLCC(GF) : Very Large Crude oil Carrier (Green Future) * SAVER ( SAmsung Vibration & Energy Reduction ) Fin STAR : Samsung Tip Advanced Rake Propeller SARB : Samsung Asymmetric Rudder Bulb 08 / 33New Chapter of Maritime Industry with Ecology

9. Aerodynamic Technology Accommodation shape improvement Reduction of air resistance 09 / 33New Chapter of Maritime Industry with Ecology

10. Comfort #. Design to make ships more comfortable - Happiness and comfort of the crew should be considered - Expansion of visual space 10 / 33New Chapter of Maritime Industry with Ecology

11. LNG Fueled Ship CO 2 NO x SO x Particles -23% -92% -100%-99% 11 / 33New Chapter of Maritime Industry with Ecology

12. LNG Supply Infrastructure New fuel – the chicken and the egg problem? LNG fueling ship will begin to operate around 2015 LNG bunkering infra must be expanded rapidly!! LNG Bunkering Station 12 / 33New Chapter of Maritime Industry with Ecology

13. 13 / 33 3. Future Green Technology

14. Green Requirements from Shipowner ※ Super Eco Ship 2030 Project CO - 69% CO 2 reduction (NYK) ※ Wallenius Marine CO - 30% CO 2 reduction (2012) *Ref: NYK 14 / 33New Chapter of Maritime Industry with Ecology

15. Future Hydrogen Society Emission Potentials (g/kWh) Estimates based on HFO 2% S 15 / 33New Chapter of Maritime Industry with Ecology

16. Fuel Cell Technology *Ref:POSCO Power EBOPStackMBOP MBOP: Mechanical Balance of Plant EBOP: Electrical Balance of Plant 16 / 33New Chapter of Maritime Industry with Ecology

17. Fuel Cell Ship Project PEMFC, 24kW x 2 MCFC, 320kW SOFC, 20kW 17 / 33New Chapter of Maritime Industry with Ecology

18. Roadmap for Fuel Cell Ship 1 KW50 KW500 KW~ 1MW~10 MW 2020 2030 Feeder Medium / Small RoRo Tug boat / Offshore Supply Cruise Sub marine Leisure boats Fuel cell ship could be seen around 2030 2015 18 / 33New Chapter of Maritime Industry with Ecology

19. Solar Cell on Ships #. Celebrity Solstice [Celebrity Cruises] - Electric power: 75 kW/ 216 panel #. Auriga Leader [NYK] - Electric power: 40 kW/ 328 panel Solar cell use possible but only to limited extent! 19 / 33New Chapter of Maritime Industry with Ecology

20. Potential Use of Wind & Wave Power #. Poseidon [Denmark FPP] - Wind & Wave complex power plant - Electric Power: 18MW (Wave 12MW, Wind: 6MW) - Total Weight : 28,000 ton 20 / 33New Chapter of Maritime Industry with Ecology

21. Nuclear Power in the World Today First Commercial Nuclear Power Operation since 1950s 436 Commercial Nuclear Power Reactors in 30 Countries Safety and Reliability of Nuclear Powered Ships 150 ships or submarines built 220 nuclear reactors have been installed 12,000 reactor years in service (50y) Korea: Nuclear (35%) *Ref: World Nuclear Association 21 / 33New Chapter of Maritime Industry with Ecology

22. Development of Nuclear Powered Ship Savannah Otto HahnMutsuSevmorput Reactor Room of Mutsu 22 / 33New Chapter of Maritime Industry with Ecology

23. Nuclear Powered Ship in the Future *Ref: Johan P Tutturen, DNV, 8 March 2010 Looks profitable with today’s fuel prices ! High Initial Investment, Low Fuel Cost m$530 m$630 m$100 m$130 m$330 m$200 + Shanghai to Long Beach At 32 Knots – 7.5 Days 23 / 33New Chapter of Maritime Industry with Ecology

24. 4. Environment Management 24 / 33

25. Samsung’s Environment Management System Samsung SDS Research Institute of Global Environment Environment IT/Service GHG Management Renewable Energy Smart Grid Carbon Market Environment Sustainability Board Samsung Electronics Samsung SDI Samsung Engineering Samsung Heavy Industries … Company G-TransformCleantechCarbon Trade Secretary Company 25 / 33New Chapter of Maritime Industry with Ecology

26. Green Management Policy Declaration GreenOrganization Cooperation InformationDisclosure IntegratedSystems Green Products Green Company Green Network 26 / 33New Chapter of Maritime Industry with Ecology

27. Eco Ship Development Target TARGET 『 SECI 7090 Project by 2030 』 World’s Leading Eco Ship ※ SECI: Samsung Environment Clean Index 27 / 33New Chapter of Maritime Industry with Ecology

28. EEDI for SHI Vessel SHI GF Tanker Baseline (Proposed MEPC59) EEDI ■ A-Max(Existing) ■ GF A- max ◆ S-Max(Existing) ◆ GF S- max ▲ VLCC(Existing) ▲ GF VLCC 28 / 33New Chapter of Maritime Industry with Ecology

29. New Maritime Business in the Future BMPP(Barge Type) VMPP(Vessel Type) Offshore FPP WindmillLNG - FSRU Seawater Treating Plant 29 / 33New Chapter of Maritime Industry with Ecology

30. New Maritime Business in the Future 30 / 33New Chapter of Maritime Industry with Ecology LNG - FPSO

31. 5. Conclusion 31 / 33

32. Conclusion  Government’s leadership necessary for infrastructure development  Regulation of non-eco-friendly ships (ex. vessels with high CO 2 emission) needed  Greater number of LNG bunkering stations for LNG fueled ships needed  Equalization of bunker oil prices across the globe needed  Promotion of nuclear powered ships needed – it is more economical, bigger and faster!  Continued innovation by the shipping and offshore industry critical  C&D, Manpower with Diversity & Creativity  Pursuit of Crew’s Comfort and Happiness 32 / 33New Chapter of Maritime Industry with Ecology

33. Thank you 33 / 33