COSCO Sustainable Development Report 2005

Fuel consumption is the biggest part of the energy consumption and also is most concerned. Through satellite navigation, the optimized routes are selected and the economical navigation speed is taken to reduce the distance. By calculating the cost of the number of the voyages, the most economical speed is determined to reduce the fuel consumption. By taking the fuel price differences at different ports and the arrangement of the voyages, the optimum fuel-refilling ports are selected. Through the “Dynamic Vessel Supervision System”, data such as the volumes of the fuel cabins, daily consumption and the days of consuming stored fuel are grasped to determine the arrangement of refilling time. By intensified supervision and examination over the volume of the stored fuel, the difference between the volume of the stored fuel and the actual figure is controlled within 5%. Control over returns of oil residue is strengthened, measures to reduce waste are implemented, unit consumption is controlled and the fuel consumption is reduced as possible. In 2005, the headquarters of the COSCO Group set the unit fuel consumption at 12.5 Kg/KiloT Knot. One year later, the actual unit fuel consumption was reached at 8.94 Kg/KiloT Knot, reduced by 28,24% compared with the target and by 1.75% compared with that of 2004, with 875226 tons of fuel saved, the consumption saving increased by 34.65% compared with that of 2004.

In the recent years, the Company has paid great attention to the energy consumption control, besides the intensified basic management over the fuel and lubricant, conducting scientific management over the cylinder oil consumption. The cylinder oil consumption management aimed at the large container carriers owned by the Company. Through technological innovation, such as computer-controlled cylinder oil spraying technology applied by many vessels, the volume of the consumed cylinder oil of such vessels was reduced apparently as expected. By implementing lubricant saving control such as intended analysis and maintenance and prolong the use life, the unit lubricant consumption volume of the whole Company was reduced year on year. The basic control over the vessel fuel and lubricant was intensified in 2005 and by the end of 2005; the rated saved volume of the lubricant was 1262 tons, increased by 50.78% compared with that of 2004 and the saved payment on lubricant was RMB 11.244 million Yuan.

In order to save on fresh water and reduce the consumption of the fresh water, seawater desalination is adopted, deck is rinsed by ballast water and seamen are required to save on water. Seawater desalination is the technology that the major power device is used to cool water, the water making device (also called water making machine) installed in the vessel heats sea water into steam in vacuum condition and the steam is condensed into fresh water which is applied as daily water, apart from drinking water, and part of the cooling water of the equipment. By implementing the mentioned measures, the supplied fresh water can be reduced to save on the fresh water consumption.

When building up the current office mansion, the Company adopted the air containing system, which uses gas as the source of energy to reduce discharge and to save on energy. Coal gas-powered air conditioners adopt the absorbing refrigerating technology that takes fuel as energy and water or lithium bromide as coolant. This technology takes the shortest energy transforming paths in the refrigeration technologies, the environmental performance of which is very prominent, functioning with the property of filling the gas omission in summer and reducing the gas cost in the regions with urban gas-supplying pipe networks. The compressor of a gas-applied engine driven air conditioner is driven by the gas-applied engine and recycles the wasted heat in the water line jacket and exhaust. The working principle of this type of air conditioners is different from that of common electricity-driven air conditioners, which determines the prominent characteristics of gas-applied engine driven air conditioners relative to electricity-driven air conditioners.

By the unit refrigerating volume, the pollutants generated by gas air conditioners are as half of those generated by electricity air conditioners. The CO2discharge volume of gas air conditioners decreases by 65% with little SOx and NOx in the exhaust.

Attached Table: Reduced Percentage of Pollutants Generated by Gas Air Conditioners

	CO2	SOx	NOx	Dust Particles
Gas-absorption refrigerating engine relative to that of engine driven by electricity generated by oil	57	100	68	97
Gas-absorption refrigerating engine relative to that of engine driven by electricity generated by coal	57	100	50
Gas driven refrigerating engine relative to that of engine driven by electricity generated by coal	65	100	98

The efficiency of gas engine is usually 30% due to fully utilizing the waste heat in the water line jacket and the exhaust of the engine, which increases the temperature of the heated gases that leave the condenser and thus the total efficiency reaches about 80%.

?(3) The charge of gas engine driven air conditioners can be adjusted with that of the building, which avoids the waste of energy.

When the charge of the building is less than 50%, adjustment of the charge is carried out by the refrigerating compressor; as the charge of the building increases, say over 50%, the rotational frequency of the engine can be adjusted; when the maximum rotational frequency is reached, but not enough to meet the charge of the building, wasted heat is used to make compensation.

?(4) Gas engine driven air conditioner can only relieve the relative electricity deficiency, but can consume the surplus gas of summer.