Completion Ceremony of Coskunoz Russian Plant

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1 H YUNDAI HEAVY INDUSTRIES ENGINE & MACHINERY DIVISION Vol. 37 December Completion Ceremony of Coskunoz Russian Plant Mr. Kim Ju-tae, chief operating officer of HHI-EMD, participated in the opening ceremony of Coskunoz Russian Plant on August 29. HHI-EMD supplied the tandem press line for the plant. Coskunoz is a major automobile part supplier for global car makers. In 2012, HHI-EMD had won the order to install the tandem line with robot systems on a turnkey basis from engineering to commission. The plant completion was celebrated by more than 300 guests including Mr. Rustam Minnikhanov, the president of Tatarstan Republic and VIPs from major car makers. After the ceremony, Ms. Oya Yonay, chairperson of Coskunos, expressed her special thanks for HHI-EMD s high technology and quality *tandem press line, which contributed to successful execution of the project. HHI-EMD has supplied presses, conveyors, and robots for car makers and automobile part suppliers in the world. As automobile industries are expanding, HHI-EMD expects more orders for automated machinery and robot systems. * Tandem press line consists of presses and automation equipment. In particular, the Robot Automation System for interpress handling is assembled using HHI-EMD robots.

2 ECO MARINE MACHINERY HHI-EMD s Total LNG Package Solution As HHI-EMD, the world s largest marine engine maker, has met the changing needs of our customers over the past few decades, we have also taken the lead in developing total LNG package solutions. As HHI-EMD, the world s largest marine engine maker, has met the changing needs of our customers over the past few decades, we have also taken the lead in developing total LNG package solutions. In 2012, HHI-EMD introduced the world s first LNG package comprising a two-stroke ME-GI main engine, a HiMSEN H35DF fourstroke engine and LNG supply system, Hi-GAS. The dual-fuel two-stroke ME-GI engine was designed and produced in close cooperation with MAN Diesel & Turbo. The engine gives shipowners and operators the option of using either the existing liquid fuel or natural gas fuel on demand. With reduced sulphur oxide and nitrogenous compounds the engine is not only economically sound and environmentally desirable; it also has the same performance output as the conventional diesel engine. After the successful completion of the prototype and type approval tests in 2012, HHI-EMD commercialized the world s first 17,022 bhp class ME-GI engine. Soon-to-be-effective regulations are putting increasing pressure on the shipping industry to reconsider what it burns for propulsion. Emissions control, introduced by the International Maritime Organization, combined with the introduction of Emission Control Areas in European, US and Canadian waters, will have a significant impact on international shipping for years to come. However, the regulations are not the only drivers which make the chilled natural gas an attractive alternative to conventional maritime fuels for the shipping sector. There are more factors accelerating the adaptation of LNG as vessel fuel; the liquefied natural gas reduces sulphur oxide emissions by 90 to 95 % and nitrogen oxide emissions by more than 80 % to comply with IMO Tier III standard; LNG produces 20 to 25 % less carbon dioxide emission; Current LNG prices in Europe and the US indicates that the cooled natural gas could be offered at a price comparable to heavy fuel oil. Under the circumstances, shipowners, classification societies and shipbuilders have jumped on the bandwagon to make the best use of LNG. HiMSEN H35DF engine is based on the basic platform of HHI-EMD s proprietary HiMSEN diesel engine developed in In addition to the comfort of operation, ease of modification and high efficiency of the HiMSEN engine, HiMSEN H35DF engine is enhanced with an engine control system (ECS) characterized by high performance and user-friendliness, which provides comfort and safety to the end-users. HiMSEN H35DF engine features a cylinder balancing control which decreases the cylinder variation and provides feedback when problems are detected to prevent accidents from occurring. The engine s ECS touch screen shows an overall engine operating status which makes it easier for operators to manage and monitor the engine. The DF engine uses natural gas as fuel. The gas fuel supply is automatically controlled and a purging system is activated when a gas leakage is detected. High performance of HiMSEN H35DF engine is achieved by expanding the diameter of the cylinder in the HiMSEN diesel engine platform. The HiMSEN H35DF engines are IMO Tier III NOx compliant in gas mode without the addition of other equipment. HHI-EMD NEWS I 2 Vol. 37 December 2014 I 3

3 ECO MARINE MACHINERY Hi-GAS (Hyundai integrated GAs Supply system which has been developed by HHI-EMD in cooperation with Advanced Technology Institute of HHI s Corporate Technology Institute) is a system that gasifies LNG into high and low pressure gas for dual-fuel two-stroke main engines, four-stroke engines and boiler. The solution allows marine engines to use diesel and LNG for fuel. Hi-GAS is designed to supply LNG gas to the engine when the operator chooses the gas mode. The system will automatically convert diesel to standby mode and switch to LNG supply mode. Hi-GAS package which includes LNG fuel tank, vaporizer, and cryogenic valve was developed through the collaboration of domestic ship equipment industry. This collaboration will eventually become the foundation of the industrial ecosystem, which will contribute to the future growth of both shipbuilding and ship equipment industries. To date, HHI has won LNG package contracts including a 173,600 m 3 LNG carrier from Knutsen OAS Shipping. It is expected that the contracts for HHI-EMD s LNG package will be on the rise down the road. HHI-EMD s world s first LNG package solution, not only applicable to LNG carriers but also to containerships, tankers and various other merchant vessels, is expected to make a significant contribution to the global eco-ship industry. LNG Fuel Gas Supply System, Hi-GAS Package LNG Tank Booster Pump HP Pump Vaporizer & Heating System Vaporizer & Heating System GVU (Gas Valve Unit) Gas Train Valve ME-GI Main Engine HIMSEN DF Genset Hi-ERS, Economical Solution to Re-liquefaction HHI-EMD has developed a re-liquefaction system named Hi-ERS (Hyundai innovative Economical Re-liquefaction System) that is capable of partially liquefying the boil-off gas (BOG) of LNG carriers by combining the high pressure compressor for ME-GI engines in cooperation with Advanced Technology Institute of HHI s Corporate Technology Institute. LNG cargo tanks are fully insulated for a sub-cooled condition. As ship motion and heat penetration usually heat the liquefied gas above its boiling point, an LNG cargo handling system constantly controls the BOG to prevent overpressure during the transportation. It is crucial to remove and extract the BOG from the LNG cargo tank to maintain the pressure within a permissible range. The High Pressure Compressor (HPC) primarily controls pressure in the LNG cargo tank and compresses the BOG from the cargo tank by compressors installed on five stages. The HPC also supplies fuel gas to an ME-GI engine for propulsion. When the flow rate of the BOG is higher than gas demand for a main engine, surplus gas will be sent to Hi-ERS through a control valve, so called Joule Thomson valve. Then, it is partially condensed and the condensate is returned to the LNG cargo tank. Hi-ERS is a simple and economical solution to re-liquefy the boil-off gas in an LNG carrier. HHI-EMD NEWS I 4 Vol. 37 December 2014 I 5

4 ECO MARINE MACHINERY HIMSEN ENGINE & MARINE MACHINERY Total LNG Package Solutions Order from KNUTSEN Hyundai Heavy Industries Shipbuilding Division won orders of two 176,000 m 3 LNG carriers from Knusten Shipping in November These LNG carriers are equipped with the state-of-the-art gas process system. HHI-EMD plans to deliver total solutions package consisting of ME-GI engine, dual fuel generator engine (HiMSEN H35DF), high pressure compressor, fuel gas supply system and control system around August HHI-EMD takes around a half of the ME-GI engine market in the world. Its new dual fuel engines passed type approval test which proves the engine to be of high quality and performance. HHI-EMD also launched its own LNG fuel supply system Hi-GAS in November Amid fierce competition and increasing demand for LNG carriers and gas-fuelled ships, HHI-EMD continuously strives to lead the gas process equipment market for the marine use through a technological breakthrough in engineering and products development. New Hi-ReGAS Model Developed HHI-EMD s Marine Machinery Design & Engineering Department developed a new model, Hi-ReGAS, of an LNG regasification system in cooperation with HHI s Advanced Technology Institute. The new model uses sea water for regasification process in the offshore unit. Hi-ReGAS, Hyundai integrated ReGAsification System, offloads natural gas into onshore pipelines directly from an FSRU. Previously, an LNG regasification unit was installed at the onshore plant, which caused potential dangers of explosion lurking in natural disasters, wars or other safety accidents. For this reason, the offshore regasification system becomes more attractive in both operation safety and building cost-effectiveness. Using sea water to heat and vaporize liquefied gas gives attractive benefits: lower fuel and space, easy operation and quick startup and shutdown. Hi-ReGAS is mainly composed of LNG suction drums, supply pumps and vaporizers. The pump and vaporizer can be packaged in a modular way for each train. The suction drum functions as a buffer tank for booster pumps. Internal baffles installed in the suction drum can keep the liquid level high, even when a ship rolls to the wave. Each train has an LNG booster pump with the rated capacity of 125 mmscfd at 100 bar head. The pumps are assorted into multistage, vertical, submerged, and potmounted types. An LNG vaporizer is installed at each train to vaporize the compressed gas. In the process, the shell- and tubetype heat exchanger heats the gas with sea water. The Hi- ReGAS is technically accomplished to detect any leakage of high-pressure gas into the heating fluid by preventing overpressure in the heating system. Hi-ReGAS was approved by GL last year. HHI-EMD has regasification design applications: indirect sea water and propane regasification, and indirect steam and glycol regasification systems. New HiMSEN DF Engine Approved HHI-EMD has developed the second HiMSEN dual fuel engine model, H27DF, and conducted a type approval test from September The test was conducted with the attendance of seven classification societies ABS, BV, DNV-GL, KR, LR, NK and RINA. Test for Hi-Well Cargo Pumping System HHI-EMD s completed the first sea trial for Hi-Well Pump, HHI s new brand for hydraulically driven submerged cargo pumping system on chemical and product carriers, crude carriers, FPSO units and others. Cargo pumping systems are essential to discharge liquid cargo such as product oil or chemicals in PC tankers. The market has been so far dominated by European makers. A four-stroke H27DF engine has nine cylinders as in-line type, combining proven structure design of H25/33 diesel engine developed in 2002 and newly-adopted technologies of the first HiMSEN dual fuel H35DF engine developed in The H27DF engine can be operated with both diesel and natural gas as fuel. The new dual fuel model is developed by state-of-the-art technologies such as gas supply, engine control and micro pilot systems. Once performance and durability tests are completed by the middle of next year, the H27DF engine will be installed for wide applications of marine propulsion, auxiliary generators and power plants. HHI-EMD s newly developed Hi-Well Pumps will ignite more competition in the market, leading to better quality and cost-effectiveness. HHI-EMD is actively promoting to win orders for Hi-Well Pumps. HHI-EMD NEWS I 6 Vol. 37 December 2014 I 7

5 ENGINE POWER PLANT ROBOT & SYSTEM EDG for Nuclear Power Plant in UAE HHI-EMD made the first shipping of two sets of emergency diesel generators (EDG) for Barakah Nuclear Power Plant in UAE on September 4. HHI-EMD won the order for nine emergency diesel generators and alternate AC diesel generators (engine model: 20H32/40V) from Korea Electric Power Corporation (KEPCO) in November KEPCO is building four nuclear power plants in UAE. High quality and stability are required for emergency diesel generators for nuclear power plants, as the EDG needs to supply electricity to circulating water pumps to cool the reactors even at emergency operation stops or shutdown. HHI-EMD s EDG ensures its quality and stability through various and strict tests such as load capability tests, start and load acceptance tests, margin tests, etc. The remaining seven sets of EDG will be delivered by the end of Industrial Robot Researcher Listed in Marquis Who s Who Mr. Joung Ji-hoon is listed in the 2015 edition of Marquis Who s Who, one of the most prestigious biographical books for his research on industrial robots. Since joining HHI in 2011, Mr. Joung has researched applied technology of industrial robots at HHI-EMD s Intelligent Control Research Department. He specializes in sensor data processing like camera and laser sensors. In 2013, he published Personal Driving Diary: Automated Recognition of Driving Activities from First-Person Videos in SCI indexed science journal, Computer Vision and Image Understanding. In 2014, Mr. Joung contributed his paper about automatic calibration method of robots and laser sensors for Institute of Control, Robotics and Systems. He also applied for a patent for his research findings. Last year, Dr. Oh Jong-kyu was listed in the same publication for the intelligent control research. HHI-EMD is committed to honing its technological edges to develop new products and improve higher standards of quality. HiMSEN Gas Engine in Power-Gen Asia 2014 HHI-EMD staged sales and marketing promotions at Power-Gen Asia 2014 in Kuala Lumpur on September Over 7,600 engine makers and power generation companies participated in Asia s largest power generation exhibition. HHI-EMD displayed its HiMSEN Gas Engine 18H35/40G model with graphics of industrial machinery, packaged power stations (PPS), solar modules, wind turbines, and electric motors. In Power-Gen Asia 2014, HHI-EMD introduced its power equipment to Southeast Asia, where power demand is steadily growing, and shared information on recent power generation market. Representatives from about 100 companies visited HHI s showroom, and the exhibition served to enlarge business opportunities in the market. Robot World 2014 HHI-EMD participated in Robot World 2014 at the Korea International Exhibition Center (KINTEX) on October HHI-EMD showcased seven industrial robots including four sets of arc, spot welding and painting robots newly launched in HHI-EMD s robot systems for automobile body manufacturing process have improved functions to make better multi-automobile correspondence, lower working hours and maximize working flexibility. These systems also improved operational range and speed with jigs mounted with four robots: HS220, HS180, HA006A and YP020. During the exhibition, HHI-EMD new robots were favorably reviewed by over 200 customers and robot specialists for a commercial and technical perspective. HHI-EMD NEWS I 8 Vol. 37 December 2014 I 9

6 CUSTOMER SERVICE HHI-EMD, 15 WORLD TOP-CLASS PRODUCTS HiMSEN Global Academy for Gas Engine HHI-EMD opened HiMSEN Global Academy for newly developed gas engines from September 25 to October 24. The special technical academy provided job qualification training on gas engine for 421 engineers in the fields from production design, production, quality, safety and after-sales services. Since 2001, with the support of Korea s Ministry of Knowledge Economy to promote exports, the World-Class Product Award has been given to domestic products which are ranked within the top five in the global market, have a market share over 10%, and market volume of over USD 50 million The course covers a wide-range of training for fabricating gas engines, highlighting production qualification, managing procedures, safety accident caused by gas outlet, etc. HiMSEN Global Academy for gas engines will also open for the first and second half of 2015, granting a certification for staff based on their on-job experiences and tests. HHI-EMD opened the HiMSEN Global Academy in 2006 to satisfy customers needs to help engineers and workers understand new products, share high-efficient production methods, improve standards of quality management and create procedures for safety. Since the opening, 3,821 engineers have participated in 289 sessions of HiMSEN Global Academy. LCD Handling Robot Marine Propulsion Shaft Stroke Engine Cylinder Frame Side-Thruster 2-Stroke Engine Turbocharger 4-Stroke Engine Power Plant Marine Tech Korea 2014 in CECO HHI-EMD staged sales and marketing promotions at Marine Tech Korea 2014 in Changwon Exhibition Convention Center (CECO) from September 29 to October 2. Over 250 shipbuilding and shipbuilding machinery related companies from 35 countries participated in this exhibition. HHI-EMD displayed its HiMSEN H35DF one cylinder unit and Hi-ReGAS model. Moreover, HHI-EMD attended technical seminars regarding eco-friendly marine machinery products during the exhibition. MTK 2014 is an international shipbuilding and marine exhibition that allows HHI-EMD to stay informed about new market trends and exchange state-of-the-art technical information. Packaged Power Station 2007 Cylinder Liner Cargo Oil Pump Industrial Robot HHI-EMD s Offshore Machinery in Offshore Korea HHI-EMD participated in Offshore Korea 2014 at BEXCO in South Korea on November HHI-EMD showcased engines and machinery for offshore oil and gas industry, along with HHI s Offshore & Engineering, Shipbuilding and Electro Electric Systems division. HHI-EMD displayed a model of HiMSEN engine; Hi- and Eco- Ballast Water Treatment System, industrial pumps and compressors; and regasification systems, specialized for offshore oil and gas production facilities. 4-Stroke Diesel Engine Crankshaft Stroke Diesel Engine Propeller As an integrated heavy industry company, Hyundai Heavy Industries can leverage the expertise and experience of its seven business divisions to provide a wide range of equipment to the needs of oil and gas industry. 2-Stroke Diesel Engine 2-Stroke Diesel Engine Crankshaft HHI-EMD NEWS I 10 Vol. 37 December 2014 I 11