Experience of DNVGL with LNG fuelled vessels and the IGF code in our rules

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Experience of DNVGL with LNG fuelled vessels and the IGF code in our rules Benjamin Scholz 1 SAFER, SMARTER, GREENER

Content Background Experience with LNG as fuel some indications Bunkering of LNG IGF-Code Summary 2

Potential emission reductions when using LNG as fuel SO X PM NO X CO 2 ~100% 95-100% 40-85% ~ 20% 3

The development trend is moving from LOCAL 2000 2013 Norway 4

to GLOBAL 5

AIS data from LNGi shows that LNG fuelled ships are already covering a large area The heat map is based on the LNG fuelled fleet s AIS positions from 25.05.2016-31.05.2016 6

LNG fuel installation larger ships Area with piping systems for liquefied fuel able to contain cryogenic leakages 7

LNG fuel installation larger ships Area with piping systems for liquefied fuel able to contain cryogenic leakages 8

LNG engines: Some technical indications: Silent ship Lower lub-oil consumption Higher fuel efficiency Clean and tidy engine room Fuel sourcing from two energy markets can save costs Less deposits, corrosion No fuel separator, no oil spill and oil residues to take care LNG quality (methane number) appears important More load steps required when going from 0 to 100% load Some children s deceases have been observed; usually solved quickly by suppliers 9

Maintenance of LNG engines vs diesel engines, indications: Apparently longer maintenance intervals (4 stoke, pure LNG engines) Less deposits in engine and exhaust gas boilers Proud seafarers take good care of equipment Spare part costs may appear a little high 2 sets of fuel valves adds costs (for Dual fuel engines) Gas fuelled engines and gas systems add complexity and need for special spare parts More complex engines and gas systems require a higher skilled crew 10

Alternatives for LNG Bunkering From road trucks Shore LNG storage tank Portable Gas fuel tank Ship to ship LNG transfer SIMOPS! 11

All types of LNG supply facilities are being developed* *Some locations have several types of facilities, which is why the number of facilities is higher than the number of locations. Local storage An intermediary LNG storage Tank to ship bunkering A local storage where an LNG fuelled ship can bunker directly from shore Truck loading facility A terminal where LNG trucks can load LNG Bunker Ship loading facility LNG terminal accessible by small LNG carriers Updated 10 October 2016 12

Within end of 2017 there will be 7 LNG bunker vessels in operation* *In the LNGi map bunkering barges for inland waterway vessels are also shown, but these projects are not counted here. Updated 10 October 2016 13

First LNG Fuelling for Aida Prima in Hamburg on 7 th of May 2016 Actual gas consumption of the dual fuel engine is supplied by onshore LNG truck; DNV GL contribution: Safety studies Permission management with authorities (ports, states, flag) Technical project management for AIDA Source: Aida 14

15

The development of the IGF code 2004 2009 June 2015 Jan 2017 NMA draft to IMO Interim Guidelines MSC.285(86) IGF Code The IGF Code was adopted by IMO in June 2015 (MSC95) and will enter into force 1 January 2017 Mandatory for all gas and other low flashpoint fuel ships Detail requirements for natural gas Other low flashpoint fuels allowed, approval based on alternative design approach More detailed provisions for methyl/ethyl alcohol fuels and fuel cells is under development in IMO correspondence groups now Note! Some flags already require compliance 16

New DNV GL Rules for GAS FUELLED SHIP INSTALLATIONS The new DNVGL Rules for Gas fuelled ship installations are covering the requirements in the IGF Code. Pt.6 Ch.2 Sec.5 GAS FUELLED SHIP INSTALLATIONS GAS FUELLED Class Notation Gas fuelled Published October 2015 and entered into force January 2016 Pt.6 Ch.2 Sec.5 Gas fuelled ship installations - Gas fuelled 1 General requirements 2 Materials 3 Ship arrangement 4 Fuel containment systems 5 Piping systems 6 Ventilation systems 7 Fire safety 8 Electrical systems 9 Control, monitoring and safety systems 10 Gas turbines and boilers 11 Manufacture, workmanship and testing 17

DNV GL Rules Pt.6 Ch.2 Sec.5: Scope Ship s gas fuel system - covering all aspects of the installation Main items: Fuel system from bunkering connection up to and including the gas consumers. Arrangement and location of tanks Arrangement and location of spaces with piping and components containing fuel Hazardous areas Control, monitoring and safety systems for the fuel installation Manufacture workmanship and testing The bunkering processes and crew training is not part of scope. 18

DNV GL Rules for gas fuelled ships Main principles Segregation Protect gas fuel installation from external events Double barriers Protect the ship against leakages Leakage detection Give warning and enable automatic safety actions Emergency shutdown Reduce consequences of a leakage 19

Summary LNG as ship fuel has the potential to improve the environmental footprint of ships significantly With 86 ships running and 93 on order the practical prove for LNG as fuel has been done The technology for propulsion, storage and bunkering of LNG as fuel is available on the market now With 7 bunker vessels on order the infrastructure for LNG supply starts to become available in the years to come The IGF Code was adopted by IMO in June 2015 (MSC95) and will enter into force 1 January 2017 Class rules covering the IGF-Code are already available 20

Thank you for your kind attention! Benjamin Scholz Benjamin.Scholz@dnvgl.com +49 40 36149 1825 www.dnvgl.com SAFER, SMARTER, GREENER 21