Energy Management Action Plan

DEME-QHSES-DOC-031

Energy management action plan

Rev. 2015-02-04Uncontrolled if printed. Most recent version is available on the DEME website.page 1 of 16

DEME-QHSES-DOC-031

Table of Contents

ABBREVIATIONS and definitions

1Introduction

1.1DEME’s reduction objective

2ISO 50001

3DEME’s approach

3.1Identification

3.2Preparation

3.3Launch

3.4Progress & close

4DEME’s action plan

4.1Objectives

4.2DEME-wide actions

4.3Project related actions

4.4Chain activity actions

ABBREVIATIONS and definitions

COOChief operating officer

CO2 PLCO2 Performance Ladder

DBMDEME Building Materials

DRIVEDEME’s Resolve on Innovation and Value Engineering

GHGGreenhouse Gas

P&LPurchase & logistics

QHSE-SQuality, health, safety, environment & security

RMPEResearch, methods, production and engineering department

Carbon Footprint

A Carbon footprint is a total of greenhouse gas emissions related to an organisation or project, expressed in Ton CO2. DEME accounts for scope 1 and scope 2 emissions in its carbon footprint.

Greenhouse Gasses

Greenhouse gasses are the fundamental cause of climate change. Limiting their effect directly improves our environment. For shipping the most important greenhouse gas is CO2; directly related to fuel consumption. DEME reports its greenhouse gas emissions on a corporate level through the methodology described in the ISO 14064 standard.

ISO 14064

ISO 14064 is an international standard, supplying the basis for specific climate change programmes. DEME received a positive Verification Assurance Statement for its carbon footprint conformity to ISO14064 for its base year 2011. ISO 14064 defines 3 scopes of emissions reporting.

Scope 1 emissions

Scope 1 contains all direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by DEME such as the consumption of fuel and natural gas.

Scope 2 emissions

Scope 2 accounts for GHG emissions from the generation of electricity purchased by DEME. The CO2 Performance ladder includes, in addition to purchased electricity, business air travel and the use of private cars for business purposes in scope 2.

Scope 3 emissions

Scope 3 is a reporting category that allows for the inventory of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not controlled by the company.

1 Introduction

This document describes DEME’s Energy Management Action plan for the period 2012-2022 and is annually reviewed.

1.1 DEME’s reduction objective

DEME works for a sustainable future. Within the scope of its activities DEME takes the lead on QHSE-S related issues. Since its existence DEME has developed high quality and management standards in order to increase its service and quality. As part of its energy and environmental management framework DEME established a new approach for its activities in Belgium and the Netherland s, i.e. the CO2 Performance ladder.

By means of involvement through participations and initiatives DEME announces itself to be a leader in relation to scope 1,2 and 3 emission reduction. In order to decrease its emissions DEME has set an energy reduction objective.

DEME’s energy reduction objective is stipulated in the DEME Energy Charter [DEME-MGT-CHT-007]. This charter stipulates an increase in energy efficiency in terms of a 7 % efficiency increase by 2022 as compared to 2011. This corresponds to an annual increase of 0,7% by every business unit within DEME.

2 ISO 50001

The DEME Energy Management Action plan has at its foundation the DEME Energy Charter [DEME-MGT-CHT-007] and utilises elements of ISO 50001.

ISO 50001 is based on the common elements of ISO management systems (Plan – Do – Check – Act approach), ensuring compatibility with ISO 9001 and ISO 14001. Figure 1 illustrates the model of the ISO 50001 Energy Management System.

Figure 1: Energy Management System model for ISO 50001

Within DEME, the ISO 50001 standard for energy management is aligned with, and incorporated in, DEME’s existing group wide programme for continuous improvement ie. DRIVE. DRIVE is an acronym for ‘DEME’s Resolve on Innovation and Value Engineering’. DRIVE envisions three parts; DRIVE Cost, DRIVE Transactional and DRIVE Operational.

DRIVE Cost entails purchasing/sourcing improvements, DRIVE Transactional directs its attention towards administrative efficiency whereas DRIVE Operational focusses on site efficiency, productivity, innovation and sustainability.

Giving its common areas of interest and similarities in approach, the DEME energy objective and related actions for operations on Belgian and on Dutch territory, informed by ISO 50001 aspects, are taken up within the existing DRIVE operational programme for continuous improvement as described in section 3: DEME’s approach.

3 DEME’s approach

The section describes common grounds of ISO 50001 and DRIVE, as illustrated in figure 2.

Figure 2: DRIVE Exercise model

3.1 Identification

The DEME group wide Greenhouse Gas Management system, conform ISO 14064, provides the means to identify significant energy sources, energy reduction potential, and evaluate past and present energy use that leads the way to improvements in energy performance.

The project selection process within DRIVE ensures that the right projects are considered for execution upon Management approval.

3.2 Preparation

The methodology for selecting Key Performance Indicators within DRIVE is directed towards stimulating the identification of improvement opportunities and proving its results. Ownership is placed with the persons responsible for the resources. Before the start of each improvement exercise, the baseline of the Key Performance Indicator is set according to the DRIVE vision and approach.

3.3 Launch

Given the diversity of DEME’s activities, targets are set on a case-specific basis. All improvements actions and best practices are added to the relevant detailed action plan. For each improvement exercise an improvement responsible is assigned. Verification of the results is ensured by involvement of the process owner or business unit responsible in the evaluation process.

3.4 Progress & close

Monitoring and evaluation of the improvement exercises is ensured through the incorporation in the DRIVE periodic management review.

Corrective actions are taken within DRIVE to ensure the overall effectiveness of the DRIVE programme by Management review of the objectives set forth.

4 DEME’s action plan

4.1 Objectives

DEME identifies its significant energy sources, energy reduction potential, and evaluates past and present energy use that leads the way to improvements in energy performance.

DEME has therefore established reduction objectives for its own organisation (scope 1 & 2) and its most GHG generating chain activities (scope 3).

• Scope 1 & 2

DEME quantifies its energy objectives in terms of a 7 % efficiency increase by 2022 as compared to 2011.

The overall DEME reduction target of 7% is further subdivided into different objectives for scope 1 and scope 2 emissions.

For its scope 1 emissions DEME is pursuing a challenging goal to improve its fuel efficiency resulting in less fuel use and CO2 emissions. In order to reduce its fuel use DEME has set following reduction objectives:

• Lease cars:25% (2012 – 2022)
• Drive projects:6 % (2012 – 2022)

DEME is also working to reduce its scope 2 CO2 emissions from its facilities by using energy more efficiently, and switching to alternate forms of energy that result in lower emissions.

The overall ambition that was set, envisions a reduction of 35% by 2022 as compared to 2011.

To achieve this reduction objective DEME commits itself to switch to green electricity for its main locations and projects in Belgium and the Netherlands by the end of 2022.

• Scope 3

DEME involves its suppliers in the process of creating insight into the chain. DEME has therefore analysed its most material scope 3 emissions of its GHG-generating activities.

Based on these results DEME has established efficiency improvement objectives for 2 specific activities:

• Construction of windfarms (chain activity of GeoSea)
• Fluvial and maritime transport (chain activity of DBM)

Construction of windfarms

GeoSea is a specialized DEME company focusing on installations for the construction of offshore wind farms. To gain perspective on the impact of GeoSea as contractor in

an entire windfarm project, GeoSea decided to complete the value chain carbon

footprint of the Thornton offshore wind farm project. This value chain carbon footprint offers a cradle-to-cradle view of the Thornton project from GeoSea’s contractors perspective.

This study was also a starting point for GeoSea to adapt its business and put targets on the value chain emissions of a wind farm project. Deme and GeoSea decided to set an energy efficiency objective and actions for its subcontractor vessels and its steel procurement. The objective aims a 4% increase over 10 years compared to 2015 for its operations in Belgium and the Netherlands.

Fluvial and maritime transport

DEME Building Materials is a DEME company that is specialized in dredging, transportation, processing and grading of sand and gravel for supply delivery to the construction industry. To get more insight in its chain of activities, DBM launched a LCA study in 2014.

By this study it is revealed that 11% of the total CO2 emissions of this chain are obtained from transport activities to the client. This is also the reason why DBM wants to implement a reduction policy. This policy implies a reduction in CO2 emissions per ton km of 6% over 10 years compared to 2015.

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4.2 DEME-wide actions

On DEME group level there are many CO2 reduction actions planned or in progress. The actions are divided into different topics; actions directed towards head office activities, vessels and dry equipment.

Head office related actions

Below you find an overview of all the actions already taken or planned for our head office in Zwijndrecht.

Description / Scope / CO2 Reduction / Responsible / Year / Action
Status
Use of alternative heating oil for DEME head office in Zwijndrecht / 1 / 85 tons CO2/year / Head of purchase & logistics department / 2011 / Completed
Tire pressure day / 1,3 / Undefinable / QHSE-S manager / 2011, 2012 / Completed
Installation of motion sensor
light switches / 2 / Undefinable / Facility manager / 2012 / Completed
Relighting of B-building / 2 / 235.989 kWh per year or 107 tons CO2/year / Facility manager / 2012 / Completed
Replacement of furnace for heating with more efficient
boilers / 1 / Results to be defined / Facility manager / 2013 / Completed
Stimulating bicycle use by introducing a bicycle allowance for all employees / 1,3 / Undefinable / Head of human resource department / 2013 / Completed
Accomodation for bicycle storage / 1,3 / Undefinable / Facility manager / 2013 / Completed
Description / Scope / CO2 Reduction / Responsible / Year / Action
Status
“AVOB Energy Saver” software package to
reduce the energy consumption of network PCs / 2 / 35 tons
CO2 /year / Head of Biss department / 2013 / Completed
Installation of video conferencing
infrastructure / 2 / Undefinable / Head of Biss department / 2013-2014 / Completed
2 year green electricity contract negotiated for head office / 2 / 1.913 tons
CO2 /year / Head of
P&L department / 2013-2014 / On-going
Energy efficiency audit
air-conditioning / 2 / Results to be defined / Facility manager / 2014 / Not started
Installation of wind turbine at Head office / 2 / Results to be defined / Facility manager / 2015 / Not started
Building of geothermal installation for cooling and heating Head office / 1,2 / Results to be defined / Facility manager / 2015 / Not started
The programme ‘Het Nieuwe Rijden’ / 1 / Results to be defined / Head of human resource and QHSE-S department / 2019 / Not started
Installation of charge points for electrical bicycles / 1,3 / Undefinable / Facility manager / 2015 / Not started
Installation of charge stations for electrical cars / 1,3 / Undefinable / Facility manager / 2015 / Not started
Renovation of I-building according to new building concepts / 1,2 / Results to be defined / Facility manager / 2015 / Not started

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DEME-QHSES-DOC-031

Vessel related actions

Below you find an overview of all the actions already taken or planned for our vessels.

Focus / Description / Scope / CO2 Reduction / Responsible / Year / Status
Awareness
1. / Focus on fuel measurements / 1 / Results to be defined / Head of technical department / 2014 / On-going
2. / Optimal energy management by energy awareness campaigns / 1,3 / Undefinable / Master / Continuous / Continuous
3. / Efficient scheduling of the trips / 3 / Undefinable / Head of COO department / Continuous / Continuous
Technical
1. / Hull cleaning / 1 / Results to be defined / Head of technical department / 2014 / Completed
2. / Antifouling coating / 1 / Results to be defined / Head of technical department / 2014 / Completed
3. / Fuel additives / 1 / No results.
Trials on-going / Head of technical department / 2014 / Completed
4. / Alternative fuel / 1 / Results unknown. In study phase / Head of technical department / 2017 / Not started: in study phase

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Focus / Description / Scope / CO2 Reduction / Responsible / Year / Status
5. / Pump efficiency / 1 / Monitoring program in place. Results to be defined / Head of RMPE department / 2014 / On-going
6. / Engine tuning / 1 / Monitoring program in place. Results to be defined / Head of technical department / 2017 / Not started
7. / Propeller cleaning program / 1 / Program ongoing. Results to be defined. / Head of technical department / 2014 / On-going
Operations
1. / Fuel efficient mobilisations / 1 / To be defined
Remark: in 2013
2.097 tons CO2 / Head of COO
department / Continuous / Continuous
2. / Shore power in DEME’s harbour / 1 / 397 tons
CO2 /year / Head of COO
department / 2013 / Completed

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Dry equipment

Below you find an overview of all the actions already taken or planned for our dry equipment.

Description / Scope / CO2 Reduction / Responsible / Year / Action
Status
Purchase of 4 new Volvo A40F dumpers / 1 / Higher load capacity (80 tons instead of 40 tons) / Manager dry equipment / 2013 / Completed
Purchase of D7E-track-type tractor with electric drive system / 1 / 4 to7 liters per production hour or 22 kilograms
CO2 /production hour / Manager dry equipment / 2014 / Completed
Purchase of 3 Cat 336E hybrid cranes / 1 / circa 3 liters per production hour or 9 kilograms CO2 /production hour / Manager dry equipment / 2014 / On-going

Beside all these actions, DEME is continuous looking for new opportunities to minimize its CO2 emissions (i.e. through optimal ship design, energy saving measures (e.g.: automatic switching of non-essential consumers, heat load controlled ventilation of technical spaces etc.).

4.3 Project related actions

Project related actions entail an increase of on-site awareness, operational and technical measures within the DRIVE approach of continuous improvement on case-specific improvement exercises. The contribution to the DEME objective is determined for each project separately, referring to its baseline measurement.

4.4 Chain activity actions

DEME has analysed 2 of its most material GHG generating chain activities; i.e. construction of wind farms and maritime and fluvial transport.

Construction of wind farms

Below you find an overview of all the actions already taken or planned. Further details are explained in the document GOC-QHSE-INF-139.

Description / Aspect / Scope / Responsible / Year / Action
Status
Phase 1
Consultation of steel manufacturers to gain information about the emissions due to the steel fabrication process. / Purchased materials / 3 / CCC dept. / 2015-2016 / On going
Drafting questionnaire for steel procurement / Purchased materials / 3 / QHSE-S dept. / 2015-2016 / Not started
Establishing database for CO2 information steel / Purchased materials / 3 / QHSE-S
dept. / 2015-2016 / Not started
Include emission information requests as part of the procurement procedures. / Purchased materials / 3 / CCC dept. / 2015-2016 / Not started
Consultation of maritime service provider and ship operators / Subcontractor vessels / 3 / Project manager operations Belgium & the Netherlands / 2015 / Not started.
Monitoring fuel use / Subcontractor vessels / 3 / Project manager operations Belgium & the Netherlands / 2016 / Not started
Description / Aspect / Scope / Responsible / Year / Action
Status
Phase 2
Consultation with client windfarm project about the CO2 requirements / Purchased materials / 3 / Project manager operations Belgium & the Netherlands / 2017-2018 / Not started
Requesting CO2 information from steel manufacturers / Purchased materials / 3 / CCC dept. / 2017-2018 / Not started
Data collection of scope 3 emissions + registration in database / Purchased materials / 3 / QHSE-S dept. / 2017-2018 / Not started
Mapping ship performance & defining desired level of performance / Subcontractor vessels / 3 / Project manager in consultation with DEME charter Party desk / 2017-2018 / Not started
Evaluation phase 1 / Purchased materials / 3 / CCC dept.
QHSE-S dept. / 2017-2018 / Not started
Phase 3
Consultation with client windfarm project about the CO2 requirements and defining targets / Purchased materials / 3 / Tender/
Project manager / 2019-2022 / Not started
Continue data collection scope 3 emissions steel / Purchased materials / 3 / CCC dept. / 2019-2022 / Not started
Improving energy efficiency performance of vessels / Subcontractor vessels / 3 / Project manager in consultation with DEME charter Party desk / 2019-2022 / Not started

Maritime and fluvial transport

Below you find an overview of all the actions already taken or planned. Further details are explained in the document.

Description / Aspect / Scope / Responsible / Year / Action
Status
Obtaining information from ship operators / Subcontracted inland vessels / 3 / QHSE in consultation with charter company / 2015-2016 / On-going
Monitoring fuel consumption / Subcontracted inland vessels / 3 / Ship operator / 2015-2016 / Not started
Determining energy performance vessels / Subcontracted inland vessels / 3 / QHSE in consultation with charter company / 2015-2016 / Not started
Reporting CO2 emissions subcontracted inland vessels based on fuel consumption / Subcontracted inland vessels / 3 / QHSE / 2015-2016 / Not started
Define minimal required energy efficiency level + include requirements in hiring contract / Subcontracted inland vessels / 3 / QHSE in consultation with DBM Management / 2017-2018 / Not started
Monitoring improvements in energy efficiency / Subcontracted inland vessels / 3 / QHSE in consultation with ship operator & charter company & DBM management / 2017-2018 / Not started
Evaluation improvement results and adjusting requirements if necessary. / Subcontracted inland vessels / 3 / DBM management in consultation with QHSE and charter company / 2019-2022 / Not started

Rev. 2015-02-04Uncontrolled if printed. Most recent version is available on the DEME website.page 1 of 16