The zero-emission perspective. GL Your competitive edge. Take the lead through innovation

Size: px
Start display at page:

Download "The zero-emission perspective. GL Your competitive edge. Take the lead through innovation"

Transcription

1 The zero-emission perspective Dr. Pierre C. Sames Senior Vice President Rules & Research, Ralf Plump PTP lead Environment ; Fridtjof Rohde, Senior Consultant, FutureShip GmbH GL Your competitive edge Take the lead through innovation

2 Contents The challenges One solution the vessel Hydrogen as fuel cost-benefit analysis LH 2 or CH 2 a ferry concept Conclusions CONFERENCE , Riga / Latvia No. 2

3 USD / ton million tonnes CO2 The challenges and our motivation With expected fleet growth to meet world transport demand for the next decades, CO 2 -emissions from shipping will increase. Even if known and available measures will be implemented, shipping will likely not meet the discussed emission targets. Fuel prices will continue to increase with future oil reserves being more remote and requiring more technology. Time to consider novel solutions to enable future zero-emission shipping. GL Rules & Research looks at novel technologies beyond current applications. CONFERENCE , Riga / Latvia No Emission trajectory for international shipping recorded scenario A1B "recent" data emission targets - 20% from % from % IFO 380 MGO premium CO2 surcharge Source: GL research. The analysis excludes inflation effects. sources: MEPC 59/INF.10 and MEPC 60/WP.5, graph by PCS/GL A CO 2 emission trading may start in Costs are based on IPCC upper estimates. In 2020, SO x -limits for fuel apply globally. MGO quality demands a premium (at least 50% of HFO price). Price of HFO will continue to rise in the long run (2.5% pa)

4 One solution Hydrogen as fuel Fuel cell systems using Hydrogen can deliver a zero-emission power generation. Our new container feeder vessel has fuel cells and special tanks to hold liquid Hydrogen for a typical roundtrip in Northern Europe. The vessel stops every ten days at an offshore station for bunkering. The offshore station produces liquid Hydrogen by using surplus wind energy. The Hydrogen is stored for short periods. CONFERENCE , Riga / Latvia No. 4

5 The Hydrogen-fuelled container feeder vessel The new container feeder vessel targets Northern European trades. full open-top 1000 TEU intake with 150 reefer slots, 700 service speed of 15 knots two podded propulsors and thruster for manoeuvrability and redundancy The vessel will have zero CO 2, SOx, NOx and PM emissions. CONFERENCE , Riga / Latvia No. 5

6 The Hydrogen-fuelled container feeder vessel The new container feeder vessel runs on liquid Hydrogen. two power generation rooms, forward and aft 5 MW fuel cell systems, with 3 MWh battery systems to provide peak power multiple type C tanks with 920 m 3 to hold liquid Hydrogen for a ten-day roundtrip bunkering time estimated at 3 hours with two bunker stations. The liquid Hydrogen is produced on-site of a offshore wind-energy park. CONFERENCE , Riga / Latvia No. 6

7 Liquid Hydrogen offshore production potential In 2020, that about 3GW is assumed being delivered from offshore wind energy parks in the German Exclusive Economic Zone (EEZ). Up to 30% of the generated power may not be put into the grid and could be available for Hydrogen production (up to 3600 GWh/a). A 500 MW wind farm may thus produce up to t liquid Hydrogen (LH2) using its surplus power. This could serve 3 feeder vessels. An intermediate storage of LH2 for up to 10 days requires insulated tanks of up to 5000 m 3. Costs for LH2 are based on invest for production, liquefaction and storage. Offshore wind farms in German EEZ of North Sea source: BSH, CONFERENCE , Riga / Latvia No. 8

8 $/mmbtu Could liquid Hydrogen become commercially attractive? Historic and predicted fuel prices LNG Zeebrugge (w/o distribution) MGO Rotterdam (delivered) LH2 North Sea (lower estimate) LH2 North Sea (upper estimate) May sources: GL Research, bunkerw orld, apxgroup, x-rates, LBST w ind hydrogen study incl. 2.5% price increase pa, demand increase from 2015 to 2020, CO2 surcharges from 20$/t CO2 to 100 $/t CO2 from 2015 to 2025 CONFERENCE , Riga / Latvia No. 10

9 Container feeder vessel installed power and liquid Hydrogen tank capacities At design draft of 8m, the vessel sails with 15 knots running on 4000 kw. With installed power of 5000 kw and an equivalent full ten-day operation, the amount of Hydrogen needed is 920 m 3 with the fuel cell system operating at 55% efficiency. Based on the study for an LNG-fuelled container feeder vessel in 2009, we estimate that around 6% of the TEU capacity needs to be sacrificed for the Hydrogen fuel tanks. installed power 5000 kw range 10 days required energy 1,200,000 kwh 4,320,000 MJ liquid hydrogen spec energy 120 MJ/kg density 71 kg/m3 MCFC efficiency 0,55 fuel mass 65 tons fuel volume 920 m3 CONFERENCE , Riga / Latvia No. 12

10 Investment for LH2-fuelled container feeder vessel The LH2-fuelled container vessel has significant higher investment costs than a traditional design of similar size: LH2-fuelled: 35 m$ HFO-fuelled: 22 m$ The additional invest is mainly for the type- C tanks (37%), the fuel cell systems (57%) and the battery system (6%). specific fuel cell system costs ( /kw) Data from the 2009 LNG-fuelled feeder study and from the GL market study on fuel cell systems were used as principal source to estimate the costs. CONFERENCE , Riga / Latvia No. 13

11 Sample cost benefit analysis MGO-fuelled LH2-fuelled Fuel consumption 19,38 5,56 t/day Fuel price 2020 * $/mmbtu $/t Equiv. full op days days/year Annual fuel costs 9,04 11,72 m$/year Other costs 1,43 1,43 m$/year Total capital required 25,11 39,51 m$ Lifetime years Interest 5,00% 5,00% Annuity 1,78 2,80 m$/year Total costs 12,25 15,95 m$/year *) the upper bound of LH2 cost was used for 2020 CONFERENCE , Riga / Latvia No. 14

12 m$ Will a LH2-fuelled container feeder vessel be competitive? Annual cost for container feeder vessel MGO-fuelled LH2-fuelled (lower estimate) LH2-fuelled (upper estimate) MGO average for 2000: 252 $/t MGO today: 978 $/t MGO historic high: 1319 $/t, June Annual cost include capital costs, other operating costs and fuel costs. $/t MGO CONFERENCE , Riga / Latvia No. 15

13 LH 2 or CH 2 / Bunkering at ports (1/2) Liquid Hydrogen: from Windpower to Bunker Station wind energy 4591 MWh 100% grid losses 230MWh 5% electrolyses 1561MWh 34% liquefaction 1722MWh 37,5% transport 46MWh 1% 22,5% LH MWh CONFERENCE , Riga / Latvia No. 16

14 LH 2 or CH 2 / Bunkering at ports (2/2) Gaseous Hydrogen: from Windpower to Bunker Station wind energy 100% 3083MWh grid losses 154MWh 5% electrolyses 1048MWh 34% compression 308MWh 10% transport 540MWh 17,5% 33,5% GH MWh CONFERENCE , Riga / Latvia No. 17

15 Design concept for a zero-emission ferry H 2 -tanks Flettner rotors battery system fuel cell system source: Scandlines 2012 podded propulsors CONFERENCE , Riga / Latvia No. 19

16 Conclusions A vision for a zero-emission container feeder vessel was created. The vessel will run on liquid Hydrogen produced by offshore wind farms surplus energy. The LH2-fuelled container feeder vessel may become economically attractive when MGO prices increase beyond $/t. A design concept for a zero-emission ferry was developed with Scandlines. GL expects first dedicated zeroemission ships on short-sea routes. CONFERENCE , Riga / Latvia No. 21

17 Thank you for your kind attention.