A QUANTUM LEAP The biggest change in energy efficiency since the shift from steam to diesel propulsion machinery

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A QUANTUM LEAP The biggest change in energy efficiency since the shift from steam to diesel propulsion machinery Jon Åge Eidem, Ulmatec ULMATEC Ulmatec Handling Systems AS, Ulmatec Components AS, Ulmatec Skipsservice AS, Ulmatec Pyro AS, Ulmatec Engineering AS, Ulmatec Baro AS, Penetrators Norge AS, Penetrator Inc. Ulmatec Asia Pte Ltd Ulmatec Well Products As, Powder Tec AS, Ulmatec Services LLC Ulmatec Baro LLC Hareid, Norway Hareid, Norway Fosnavåg, Bergen, Tromsø, Norway Gamlem, Norway Hareid, Norway Fosnavåg, Norway Stavanger-Ulsteinvik, Norway Canada, North America Singapore Stavanger, Norway Surnadal, Norway Dubai, UAE Houston, North America 4 1

MORE THAN 60 YEARS OF KNOW-HOW Pyro founder Palmar Bjørnøy Cold trips to Shetland 1940-1945 5 MORE THAN 15.000 SHIPS WORLDWIDE WITH PYRO HEATING SYSTEMS 6 2

ÅRETS BEDRIFT MØRE OG ROMSDAL 2014 ÅRETS NYSKAPAR NORDVESTLANDET 2015 7 Our focus and promise since 2011 recovering otherwise wasted energy instead of using highgrade energy in the form of oil or gas 8 3

In 2011 we claimed ONLY 30-40% OF ENERGY IS USED EFFICIENTLY 60%OF ENERGY CAN EASILY BE UTILISED 9 Now, in 2015, we know that CAN BE UTILISED 10 4

PYRO WASTE ENERGY MANAGEMENT SYSTEM A QUANTUM LEAP The most important energy saving invention since moving from steam engine to diesel engine Steam engine 1800-10-15% efficiency / utilisation Diesel engine 1900-30-40% efficiency / utilisation Diesel Engine + Waste Heat Recovery 2011* - 40-60% efficiency / utilisation Diesel Engine + Waste Energy Management 2015** - 60-75% efficiency / utilisation * In 2011 Ulmatec Pyro introduced the Pyro Waste Heat Recovery System ** In 2015 Ulmatec Pyro introduced the Pyro Waste Energy Management System 11 RUN YOUR HEATING, COOLING AND POWER SYSTEMS AT MINIMUM COST We see a great many opportunities for huge savings by transferring energy consumption from electricity to waterborne heat even generating electric power from waste heat recovery 12 5

MADE POSSIBLE WITH PYRO SYSTEMS Traditional products Fuel Fired Heater Exhaust gas Economiser Incinerator System New products 2012-2013 Waste Energy Recovery System (patent) Tank Heating System (patent) 13 MADE POSSIBLE WITH... GREEN TECHNOLOGY from ULMATEC, SPERRE & ANDA OLSEN SPERRE Pleat & Rack Coolers with their uniqe competence and low pressure drop. ANDA OLSEN battery technology for energy storage and peak operations together with CLIMEON New products 2015-2017 De-Icing System (patent) Ballast Water Management System (patent) Waste Energy Cooling System (patent) Waste Energy Power Generation System (patent) Waste Energy Management System (patent) 14 6

UNDERSTANDING THE ENERGY CONVERSION Rated power Heat rejection to coolant Heat rejection to exhaust gas Heat rejection to charge air aftercooler Heat rejection to air from engine Heat rejection to air from generator Total effect Caterpillar 3516C (data from engine supplier) kw 2500 36,6 % 830 12,2 % 2478 36,3 % 59,7 % 763 11,2 % 161 2,4 % 91 1,3 % 6823 100,0 % Fuel consumption Engine load Engine load Engine load Fuel energy Fuel energy KJ/s (kw) Max. Specific Fuel value KJ/kg L/h kg/h kg/kwh 100 % 656 564,16 0,226 75 % 510 438,60 0,234 50 % 372 319,92 0,256 kw Load 43539 6823 100 % 45000 Energy Cost NOx kg/year Effekct Energy/24h Consumption Nox Fuel Cost kw kwh kg/kwh *3) kg/kg *1) USD/kg *2) USD/literkg/liter KJ/kg NOx tax USD Fuel USD Total USD Engine < 200 rpm (Generator) 1250 30000 0,256 0,1000 2,40 0,86 43539 672768-672 768 280 320 Engine 200-1000 rpm (Generator) 1250 30000 0,256 0,0530 2,40 0,60 0,86 43539 356567 1955721 2312 288 148 570 Engine 1000-1500 rpm (Generator) 1250 30000 0,256 0,0500 2,40 0,60 0,86 43539 336384 1955721 2292 105 140 160 Engine >1500 rpm (Generator) 1250 30000 0,256 0,0440 2,40 0,60 0,86 43539 296018 1955721 2251 739 123 341 Fuel fired heater (MGO) 1250 30000 0,091 0,0036 2,40 0,60 0,86 43539 8609 695198 703 807 3587 Heat recovery 1250 30000 - - - - *1)= kg Nox / kg fuel Engines (200-1000kW og >1500kW) before year 2000, Nox value increase 0,001 kg/kg *2)= USD/ kg. Nox (19,19NOK/8,00USD/NOK=2,40 USD/kg) *3)= Engine speciffic values to be used (e.g. 0.256 g/kwh) *4)= Spesiffic density MGO 0,86 kg/liter 15 FUEL SAVINGS Offshore Vessel 120mx22m Engine Installation 5xCaterpillar 3516C 12500 kw Average Engine load 2x50% 2500 Available Waste Energy effect @ 100% engine load 3200 kw Actual available Waste Energy effect @ 50% engine load 1250 kw Crew 120 Ballast Water capasity 5000 m3 Installed cooling effect 15000 kw Operational hours 8760 h Energy efficiency 0,256 kg/kwh Desity fuel 0,86 kg/liter Avearage consumption/year Tropical Area Northern Area Artic Area Effect kw Energy kwh Effect kw Energy kwh Effect kw Energy kwh Heating of accomodation 0-150 1314 000 250 2190 000 Cooling of accomodation 150 1314 000 50 438 000 0 - Fresh Water Production 200 1752 000 300 2628 000 400 3504 000 Sanitary Hot Water 25 219 000 45 394 200 50 438 000 Tank Heating - - - Tank Washing - - - De-Icing - - 1000 8760 000 Ballast Water Treatment - - - Pre-heating of engine at standstill 25 219 000 40 350 400 50 438 000 Total waste energy used 400 3504000 585 5124600 1750 10950 000 Fuel Fired Energy 500 4380000 Available waste energy 850 665 0 Electricity production 10% efficiency 85 744 600 66,5 582 540 0 - Fuel savings (Liter) 1264700 1698870 1955721 Total Fuel Consumption (Liter) 6519070 6519070 6519070 Total Fuel Saving 19 % 26 % 30 % 16 7

Example of benefits = 2000 LITRE Marine gas oil price is going up and down. Currently the cost is about US$500 per tonne and has been up to US$ 960 per tonne, but is expected to increase tous$1,800 by 2020, and to US$2,300 by 2035 REDUCED PUMP EFFECT FUEL/YEAR Source: Article by Chad Henderson, Wallenius Wilhelmsen Logistics, October 2014. Adjusted for current prices (September 2015). 17 PYRO WASTE ENERGY COOLING SYSTEM 1 2 3 4 Fixed rpm Frequency controlled Frequency controlled Fixed rpm 18 8

PYRO WASTE ENERGY COOLING SYSTEM FUEL SAVING: 800.000 kwh = 200.000 LITRE FUEL/YEAR Example Cooling effect: Pump capacity: Pumping effect: Energy Consump. 2 pumps: Traditional 15.000 kw 4x800m3/h 4x100 kw 1.600.000kWh WECS 15.000 kw 6x400m3/h 6x50 kw 800.000kWh 19 PLATE HEAT EXCHANGER (PHE) SPERRE PLEAT COOLER 240 MAN-HOURS 1 MAN-HOUR 45 GASKETS 50 DAYS OFFHIRE 1 GASKET 1 DAYS OFFHIRE 9

Energy saving solution Fuel savings - Emission reductions Reduced energy consumption on the seawater-pumps due to low pressure drop Rack cooler have no marine growth due to CuNi 90/10 and antifouling paint Chilled water element reduces running time at the chilled-water compressors Heat recovery element makes it possible to use the surplus heat PYRO WASTE ENERGY COOLING SYSTEM 4 = 200.000 LITRE Four pumps with automatic regulated valves which only pumps the required volume and flow of cooling water. Reduced number of pumps saves energy. A flexible system that works. REDUCED PUMP EFFECT FUEL/YEAR Fixed rpm 22 10

PYRO COOLING SYSTEM BENEFITS Reduced no. of cooling pumps installed Reduced no. of cooling pumps running Full control of cooling temperatures Reduced no. of heat exchangers installed Full control of circulation pressure Possible to utilize the waste low temperature (LT) cooling energy Full flexibility in no. of cooling pump running (automatic start/stop) Less energy used for cooling water circulation Monitoring the waste energy utilized - and wasted to sea and air (exhaust) 23 PYRO WASTE ENERGY MANAGEMENT SYSTEM CASE STUDY INSTALLATION 140m Offshore Construction Vessel DP3-4 split power system No. of seawater (SW) cooling pumps reduced from 30 to 12 reduction = 18 No. of freshwater (FW) cooling pumps reduced from 26 to 12 reduction = 14 No. of seawater heat exchangers reduced from 20 to 8 reduction = 12 No. of freshwater heat exchangers increase from 0 to 4 increase = 4 A minimum of cooling pumps running according to cooling requirement In DP mode: 2-8 SW cooling pumps + 2-8 FW cooling pumps running Normal mode: 1-8 SW cooling pumps + 1-8 FW cooling pumps running Full flexibility and back-up capacity DNV GL verified solution Significant reduction in engineering time Significant reduction in installation time Standardised and modulated plug and play units 24 11

PYRO WASTE ENERGY POWER GENERATION SYSTEM EGB HT circuit 85C-95C EMISSION-FREE ELECTRICITY Cooling water 0C 35C Product range from 150kWe to 600kWe 25 PYRO WASTE ENERGY POWER GENERATION SYSTEM 1300kW WASTE ENERGY ELECTRIC POWER 26 12

ANDA PRODUCTS AC UPS systems DC UPS systems Power supplies Chargers Inverters Batteries System solutions Motors & drives Hybrid systems Converters 13

WASTE ENERGY POWER GENERATION SYSTEM BENEFITS Converting engine waste heat to electricity (jacket cooling and exhaust) World record efficiency, twice as high as competing technologies Up to 5% fuel savings per annum Significant emission reductions Attractive payback times despite low oil prices Marine proven Remote diagnostics with Live 29 Smart, flexible and cost effective PYRO -WASTE ENERGY MANAGEMENT SYSTEM 30 14

WEMS WASTE ENERGY MANAGEMENT SYSTEM WERS - WASTE ENERGY RECOVERY SYSTEM WECS - WASTE ENERGY COOLING SYSTEM WEPG - WASTE ENERGY POWER GENERATION B B B A B B HEAT COMSUMERS Air handling units Fresh water generators Tank heating system Tank washing system De-icing Ballast water treatment Electric power generation B UNITS TO BE COOLED Engine high temp cooling Engine low temp cooling Thrusters Provision plant Electric equipment Chill water Propulsion motor / gear Hydraulic equipment COMPONENTS 1 Fuel Fired Heater 2 Exhaust Gas Economiser 3 Split valves 4 Flow control units 5 High temp heat recovery heat exchanger 6 Fresh water cooling pumps 7 Sea water / fresh water heat exchangers 8 Sea water cooling pumps 9 Expansion tank 10 Circulation pumps A B A 31 SUMMARY ENERGY UTILISATION Utilized in engine 35% Waste energy from exhaust system 12% Waste energy from HT cooling system 13% Waste energy from LT cooling system 10% Utilised in Climeon system 5% TOTAL 32 15

QUESTIONS TO OUR BRAVE CLAIM? A QUANTUM LEAP The biggest change in energy efficiency since the shift from steam to diesel propulsion machinery Jon Åge Eidem, Ulmatec 16