MAN, HSD Engine announce EEXI cooperation

By Jack Burke21 March 2022

IMO regulations go into effect in 2023

MAN Energy Solutions has signed a cooperation agreement with HSD Engine Co., Ltd., to deliver its Energy Efficiency Existing Ship Index (EEXI) solutions to MAN B&W-branded low-speed engines manufactured by HSD.

These come either as a complete package with an assessment report, or just a standalone OPL (Overridable Power Limitation) solution – depending on customer requirements. Effective immediately, the agreement is set to run for an initial period of two years.

Under the IMO’s regulations that go into effect in 2023, all ships need to calculate their EEXI following technical means to improve their energy efficiency and to establish their annual operational carbon intensity indicator (CII) and CII rating. Carbon intensity links the GHG emissions to the amount of cargo carried over distance traveled.

Ships will get a rating of their energy efficiency (A, B, C, D, E - where A is the best). Administrations, port authorities and other stakeholders as appropriate, are encouraged to provide incentives to ships rated as A or B also sending out a strong signal to the market and financial sector.

A ship rated D for three consecutive years, or E, is required to submit a corrective action plan, to show how the required index (C or above) would be achieved.

“It is of paramount importance for MAN Energy Solutions that we address decarbonization in the maritime industry by developing cost-efficient and regulatory-compliant solutions,” said Jens Seeberg, Senior Manager and Head of Retrofit & Upgrade, PrimeServ Denmark. “Our collaboration with our licensees to achieve EEXI compliance for vessels already in service is testament to our commitment to attain a net-zero emission future. This cooperation agreement with HSD provides shipowners with easy access to compliance and in an affordable fashion.”

Overridable Power Limitation

MAN Energy Solutions offers three different EEXI solutions, including the development of OPL to meet the vast majority of shipowners’ desire for a simple, economical solution that will comply with the impending regulation. OPL reduces carbon emissions by restricting the maximum power – and thus, fuel consumption – produced by prime movers to a lower value than what was originally designed and certified for.

“It is our target that we can provide reliable solutions in response to customers’ needs with various solutions complying with EEXI regulation in a timely manner,” said Sang Min Lee, Vice President and Head of Part Sales & Technical Service Division, HSD Engine Co. “We are very much interested in cooperating with MAN Energy Solutions in providing its OPL solution and are confident that this valuable cooperation between MAN Energy Solutions and HSD Engine will support the customers to move toward the zero-carbon era smoothly.”

Agreement purpose and scope

Under the terms of the agreement, HSD will resell MAN Energy Solutions’ solutions for EEXI compliance for all HSD-manufactured, MAN B&W-branded ME and MC engines where customers will have three different options depending on where they stand in their compliance. Customers can choose to purchase EEXI Full if they require a complete package with OPL and an assessment report; or EEXI File if their vessels have already reached the EEXI limit but still require EEXI certification for compliance; or lastly, EEXI Flex if they already have a completed assessment report – either performed by a third party or themselves – and just require an OPL solution. To accommodate customers as quickly as possible, HSD will install the OPL solution on all such units themselves.

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