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SSI Closed Loop
Materials Management

          SSI Closed Loop Materials Management
Simon Bennett - CNCo
Eskild Lund Sorensen - Maersk Line
SSI Vision for 2040


    Changing to a diverse mix of energy sources, using
    resources more efficiently and responsibly, and
      dramatically reducing greenhouse gas intensity

 Providing safe, healthy and secure work environments
  so that people want to work in shipping, where they can
  enjoy rewarding careers and achieve their full potential

    Transparency and accountability drive performance
   improvements and enable better, sustainable business
                    decision-making
Background
 • In a business-as-usual scenario, we have enough iron for
   60 years*
 •   up to US$ 2 trillion could be saved through resource-
     efficient measures across just three sectors – carbon,
     steel and iron – in the major economies alone**
 •   Current best practice recycling loses high-value
     materials
 •   How to design ships to enable better recycling and
     easier recovery of materials used?
 *World Economic Forum
 **World Resource Institute
The opportunity
 • Significantly improving on (already high) levels of
     recycling
 •   Realising the full value of ships based on accurate
     knowledge of materials content
 •   Improved supply chain management
 •   Facilitating design for recycling
 •   Complying with regulation – inventory of hazardous
     materials
Obtain material
Recycling today
                                      Manufacturing


• Mixing steel types – high
  tensile with mild steel              Assembly
• Mixing different materials –
  copper with steel
                                       Operation
• Designs that make recycling
  impossible – spray insulation
                                      Disassembly
  that is impossible to remove


                                  Waste / ‘downcycling’
Closing the loop
                                          Obtain
                                          material

• Keep the quality of         Material
                                                      Manufacturing
  materials                    pool
• Mining of new
  materials will be
  reduced to a
  minimum
                            Disassembly                 Assembly
• Make capital out of
  the materials, not just
  currency                                Operation
Where this has worked before??
Triple-E: Total vessel recycling




               Click on image to view film
Objectives
      Short term:

1. Develop a system to
 document and trace
                                 Long term:
ship building materials
 2. Prove the concept
                          Full closed loop materials
   based on 3+ pilots
                          management system used
                             as standard by ship
                            building and breaking
                                   industries
Sep 2012 – Sept
• Set-up                          2013         • Reporting and
                                                 consultation on
• Consultation with     •   Pilot projects       outcomes
  industry
                                               • Demonstrating a
• Refine materials                               viable MMS
  management system
  (MMS)                                        • Demonstrating
                                                 commercial
• Training to use MMS                            advantages

                                               • Broad uptake by the
                                                 industry & public
                                                 launch

     May - Sept 2012                               Feb – Sept 2013
Benefits … if we work together
• Reduced lifecycle
  environmental impact
• Higher resource availability
  in the long term
• Higher value of materials
  recovered
• Easier to ensure compliance
  with regulation (HK
  Convention)
• Incentive to ensure
  responsible recycling
• Improved ship designs
Benefits
… if we work together
•   Pilot projects are the
    basis for demonstrating
    these benefits
•   Long-term success
    requires recyling to be
    adapted at global scale
•   More users with
    collective ownership
Key messages
• There is a commercial and environmental imperative
  to significantly improve recycling

• We believe there is commercial advantage to both
  ship owners and ship recyclers to have effective
  systems to track materials through the supply chain

• Over 18 months we’ll be undertaking pilot projects to
  test and demonstrate the practicalities and
  commercial potential of closed loop materials
  management
Get involved – who and why?
We will be consulting widely with the industry:
• Recyclers and Brokers who want to help
  unlock value from the ships they buy

• Builders and Manufactures who want to
  improve supply chain management and
  sustainability performance

• Owners who want to take advantage of
  improved materials management
SSI Closed Loop
Materials Management

          SSI Closed Loop Materials Management
Simon Bennett - CNCo
Eskild Lund Sorensen - Maersk Line

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SSI - Closed Loop Materials Management work stream

  • 1. SSI Closed Loop Materials Management SSI Closed Loop Materials Management Simon Bennett - CNCo Eskild Lund Sorensen - Maersk Line
  • 2. SSI Vision for 2040 Changing to a diverse mix of energy sources, using resources more efficiently and responsibly, and dramatically reducing greenhouse gas intensity Providing safe, healthy and secure work environments so that people want to work in shipping, where they can enjoy rewarding careers and achieve their full potential Transparency and accountability drive performance improvements and enable better, sustainable business decision-making
  • 3. Background • In a business-as-usual scenario, we have enough iron for 60 years* • up to US$ 2 trillion could be saved through resource- efficient measures across just three sectors – carbon, steel and iron – in the major economies alone** • Current best practice recycling loses high-value materials • How to design ships to enable better recycling and easier recovery of materials used? *World Economic Forum **World Resource Institute
  • 4. The opportunity • Significantly improving on (already high) levels of recycling • Realising the full value of ships based on accurate knowledge of materials content • Improved supply chain management • Facilitating design for recycling • Complying with regulation – inventory of hazardous materials
  • 5. Obtain material Recycling today Manufacturing • Mixing steel types – high tensile with mild steel Assembly • Mixing different materials – copper with steel Operation • Designs that make recycling impossible – spray insulation Disassembly that is impossible to remove Waste / ‘downcycling’
  • 6. Closing the loop Obtain material • Keep the quality of Material Manufacturing materials pool • Mining of new materials will be reduced to a minimum Disassembly Assembly • Make capital out of the materials, not just currency Operation
  • 7. Where this has worked before??
  • 8. Triple-E: Total vessel recycling Click on image to view film
  • 9. Objectives Short term: 1. Develop a system to document and trace Long term: ship building materials 2. Prove the concept Full closed loop materials based on 3+ pilots management system used as standard by ship building and breaking industries
  • 10. Sep 2012 – Sept • Set-up 2013 • Reporting and consultation on • Consultation with • Pilot projects outcomes industry • Demonstrating a • Refine materials viable MMS management system (MMS) • Demonstrating commercial • Training to use MMS advantages • Broad uptake by the industry & public launch May - Sept 2012 Feb – Sept 2013
  • 11. Benefits … if we work together • Reduced lifecycle environmental impact • Higher resource availability in the long term • Higher value of materials recovered • Easier to ensure compliance with regulation (HK Convention) • Incentive to ensure responsible recycling • Improved ship designs
  • 12. Benefits … if we work together • Pilot projects are the basis for demonstrating these benefits • Long-term success requires recyling to be adapted at global scale • More users with collective ownership
  • 13. Key messages • There is a commercial and environmental imperative to significantly improve recycling • We believe there is commercial advantage to both ship owners and ship recyclers to have effective systems to track materials through the supply chain • Over 18 months we’ll be undertaking pilot projects to test and demonstrate the practicalities and commercial potential of closed loop materials management
  • 14. Get involved – who and why? We will be consulting widely with the industry: • Recyclers and Brokers who want to help unlock value from the ships they buy • Builders and Manufactures who want to improve supply chain management and sustainability performance • Owners who want to take advantage of improved materials management
  • 15. SSI Closed Loop Materials Management SSI Closed Loop Materials Management Simon Bennett - CNCo Eskild Lund Sorensen - Maersk Line