LNG as alternative ti fuel -status t and outlook Matthias Ritters 2013-06-19
Content Why LNG as ship fuel? Regulatory development Overview on activities and technologies LNG supply chain and bunkering Outlook for LNG as ship fuel LNG as alternative fuel status and outlook 2013-06-19 No. 2
Drivers for using LNG as ship fuel 1. 90%-95% reduction of Sulphur-oxide emissions i required within Emission Control Areas (ECAs) by 2015 required globally by 2020, pending a 5% review at IMO by 2025 4% 2. reduction of Nitrogen-oxide emissions 3% to IMO Tier III levels 2% only for pure gas engines and dual-fuel 1% four stroke engines 0% required within Emission Control Areas by 2016 3. 20% to 25% reduction of Carbon-dioxide emissions Methane slip needs to be avoided during bunkering and operation 2008 2009 Sulphur content limits in bunker fuels Global 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Local 2020 LNG as alternative fuel status and outlook 2013-06-19 No. 3
World LNG estimated June 2013 landed prices Source: US Federal Energy Regulatory Commission, www.ferc.gov, $/mmbtu LNG as alternative fuel status and outlook 2013-06-19 No. 4
Fuel price scenario delivered d to the ship Fuel price scenario 50 40 HFO 2.7% S MGO 0.1% S LSHF 0.5% S LNG USD/m mmbtu 30 20 10 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: GL-MAN container vessel advanced propulsion roadmap LNG delivery costs of 4 USD/mmBTU have been added to the LNG wholesale price. LNG as alternative fuel status and outlook 2013-06-19 No. 5
Regulatory development IMO issued interim guidelines in 2010. These are not mandatory for flag states. GL (and also other class societies) have issued their own guidelines. GL guidelines offer additional interpretations. IMO subcommittee BLG currently works on the IGF-code. The new target completion date for the IGF Code was set to 2015. LNG Bunkering is currently addressed ISO TC 67 (ongoing) BMVBS study (completed) EMSA study (completed, not public yet) GL guidelines (VI-3-1) LNG as alternative fuel status and outlook 2013-06-19 No. 6
Tarbit Shipping chemical tanker Bit Viking (GL 111552) converted to LNG as fuel Particulars Main engines 2 x WÄRTSILÄ 6L50DF - 5,700 kw Integration of the LNGPac system from Wärtsilä 12 days operating on ~ 80% load 2 x 500 m 3 LNG tanks Source: Wärtsilä Classed GL 100A5 E3 ESP IW NAV-OC ERS Chemical Tanker IMO Type-2 Machinery: MC E3 AUT INERT RP2-50% GF successful Sea Trial October 2011 LNG as alternative fuel status and outlook 2013-06-19 No. 7
The first GL-classed OSV with LNG as ship fuel Marine pollution prevention vessel for Finnish Ministry of Interior, STX Finland three LNG-fuelled main engines plus LNG-fuelled auxiliary engines dynamic positioning system with CPP, two podded propulsors and thruster vessel capabilities included oil and chemical recovery capacity, highest ice class, helicopter operations incl. refuelling, towing, fire fighting, crane operations, small craft operations LNG as alternative fuel status and outlook 2013-06-19 No. 8
Projects exploring LNG as ship fuel for MPV and RoPax 6,400 tdw MPV 20,000 dwt MPV LNG as alternative fuel status and outlook 2013-06-19 No. 9
GasPax LNG fuelled RoPax Main particulars: Length over all 199,80 m Breadth moulded 28,60 m Draught 6,50 m Speed 22 kn Main engines 2 x 9000 kw Passenger capacity 600 Crew 50 LNG as alternative fuel status and outlook 2013-06-19 No. 10
GasPax LNG fuelled RoPax LNG capacity (fixed installed Type C-tanks) 585 m 3 alternative LNG supply via trucks / trailer on deck as range extender LNG as alternative fuel status and outlook 2013-06-19 No. 11
Projects exploring LNG as ship fuel for container vessels GL 1200 TEU feeder (2009) IPP 4200 TEU (2011), AiP* by GL DSME 14000 TEU (2011), AiP* by GL IHIMU 13000 TEU (2012), AiP* by GL LNG as alternative fuel status and outlook 2013-06-19 No. 12 *) Approval in Principle
LNG tank systems Independent tanks are required, designed in accordance with GL rules for liquefied gas carriers Type A, B or C Membrane tanks Mobile - Tanks Type C-Tank LNG as alternative fuel status and outlook 2013-06-19 No. 13 Membrane-Tank
Approval in principle for LNG tank container system on IPP STREAM with 4200 TEU In 2011, GL approved in principle the LNG supply system for the IPP CV STREAM with a fixed LNG tank with 1000 m 3. Additional approval in principle has now been performed for a LNG tank volume extension based on mobile tank containers delivering 1200 m 3. Mobile LNG tank containers are seen as technology suitable for short sea shipping and as range extender. LNG as alternative fuel status and outlook 2013-06-19 No. 14
Onboard systems for LNG Onboard gas supply: Full secondary barrier / Drip Tray Thermal separation from the ship structure Ventilation 30 air changes / h Ex-proofed components, Gas sensors Dual fuel engines: 4 stroke engines are available power range 1-18 MW most relevant dual fuel engines have GL Type Approval 2 stroke engine are available power range 3 100 MW MAN L51/60DF Wärtsilä L50DF LNG as alternative fuel status and outlook 2013-06-19 No. 15
Supply chain options for LNG as ship fuel local LNG production plant small LNG tanker local LNG storage LNG import & export terminal LNG end user LNG as alternative fuel status and outlook 2013-06-19 No. 16 LNG bunker vessel
Technical requirements for LNG bunkering LNG as alternative fuel status and outlook 2013-06-19 No. 17 GL performed safety assessment of LNG bunker operations to develop technical requirements within German funded R&D project BunGas. Focus on bunker vessel, safe LNG transfer, bunker station and compatibility of involved systems.
LNG supply and bunkering GL and Hamburg Port Authority studied LNG bunkering in the port of Hamburg within the CNSS project. A hazard identification showed that a large LNG spill due to a collision is the most critical case. The navigational safety study showed that the largest probability of a LNG bunker vessel is due to a collision when it is in transit. LNG bunker supply in north European ports will be made available with bunker vessels / barges. Sources for small cargoes of LNG are Rotterdam, Zeebrugge and Norway. Intermediate terminals are operating / planned in several ports and bunker vessels will distribute small LNG quantities in port. spe ec cost (USD/mmBTU U) Costs for LNG delivery by bunker supply vessel 5,0 4,5 1000 cbm BSV in port 1000 cbm BSV from Zeebrugge 4,0 3000 cbm BSV from Zeebrugge 3,5 3,0 2,5 2,0 1,5 10 1,0 0,5 0,0 0 50000 100000 150000 200000 250000 300000 350000 delivered net volume per year Source: GL estimates LNG as alternative fuel status and outlook 2013-06-19 No. 18
Cost and benefits of LNG as ship fuel for container vessels GL and MAN performed the joint study with focus on container vessels ranging from 2500 TEU to 18000 TEU. An extension is available for container feeder vessels (900 TEU to 2500 TEU). The study shows that operating share inside ECA, LNG-HFO price difference and LNG tank costs are the dominant parameters to be considered for future LNG-fuelled propulsion solutions. Similar conclusions are valid for other ship types. LNG as alternative fuel status and outlook 2013-06-19 No. 19
Outlook for LNG as ship fuel Technologies concepts and systems are available Regulatory framework the new target completion date for the IGF Code was set to 2015 Bunkering today only with special permission many studies completed / ongoing local regulations expected soon Cost-benefit attractive payback py for vessels in ECAs significant environmental benefits LNG as alternative fuel status and outlook 2013-06-19 No. 20
For further information, please contact: Matthias Ritters Executive Vice President Region Europe/Middle East/Africa Email: matthias.ritters@gl-group.com Telephone: +49 40 36149 8786