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

• 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

Background

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

• Mixing steel types – high

tensile with mild steel

• Mixing different materials –

copper with steel

• Designs that make recycling

impossible – spray insulation

that is impossible to remove

Recycling today

Obtain material

Manufacturing

Assembly

Operation

Disassembly

Waste / ‘downcycling’

• Keep the quality of

materials

• Mining of new

materials will be

reduced to a

minimum

• Make capital out of

the materials, not just

currency

Closing the loop

Obtain material

Manufacturing

Assembly

Operation

Disassembly

Material pool

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

ship building materials

2. Prove the concept

based on 3+ pilots

Long term:

Full closed loop materials

management system used

as standard by ship

building and breaking

industries

• Set-up

• Consultation with industry

• Refine materials management system (MMS)

• Training to use MMS

May - Sept 2012

Sep 2012 – Sept 2013 • Reporting and

consultation on outcomes

• Demonstrating a viable MMS

• Demonstrating commercial advantages

• Broad uptake by the industry & public launch

Feb – Sept 2013

• Pilot projects

• 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

Benefits

… if we work together

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