Utilizing LNG as Fuel, by VOLCANO s Technology

Utilizing LNG as Fuel, by VOLCANO s Technology 14 th March 2018 1

Agenda 1. Utilizing LNG as Fuel 2. Solution for keeping Blue Sea 3. About VOLCANO 2

1. Utilizing LNG as fuel 3

1. Preparation for New Fuel LNG Fueled vessel is focused as Eco-conscious vessel, by following the trend of more strict regulation on exhaust. Proportion of combustion-product (Index as Coal=100 ) Coal Petroleum Natural Gas Coal Petroleum Natural Gas Coal Petroleum Natural Gas Quoted from IEA Natural Gas Prospects to 2010 (1986) 4

1. Preparation for New Fuel Sulfur content Regulation at MEPC58 (OCT, 2008) Regulated sulfur content in Fuel Inside an ECA Outside an ECA The execution date would be studied? 1 st /JUL 1 st /JAN 1 st /JAN 1 st /JAN 1 st /JAN Quoted from Japanese Shipowners Association Web site JSA 一般社団法人日本船主協会 web site より引用 5

2. Utilizing LNG as Fuel How do you process BOG on LNG Fueled vessel by using VOLCANO s products? 1Gas Combustion Unit 1Cool Down MECS-GCU Incinerate BOG safely 2Oil/Gas combination burner Vignis Vignis-mini SFFGⅡ Use BOG as fuel of burner for boiler 6

Utilizing Natural Gas/LNG as fuel More than 100 LNG Fueled vessels are in operation, at Northern Eourope, Such as Ferry, Tugboat. * excluding LNG Carrier Quoted from LNG fuelled Vessels Working Group web site 7

Utilizing Natural Gas/LNG as fuel In Asia, planned or actual bunkering at China, Korea, HK, Japan and Singapore Quoted from LNG fuelled Vessels Working Group web site 8

Utilizing Natural Gas/LNG as fuel LNG Fueled tugboat Sakigake equips Volcano Boil Off Gas (BOG) combustion unit MECS-GCU has been awarded a prize for advanced technology of Ship of the year 2015. Outline of Sakigake Length overall: 37.20 meters Breadth: 10.20 meters Molded depth: 4.40 meters Gross tonnage: 272 tons Main engine: NIIGATA 6L28AHX-DF x 2 Shipowner: NYK Flag: Japan Class: Nippon Kaiji Kyokai Other: Patents are pending for the LNG receiving system and LNG carburetion system used on board 9

2. Utilizing LNG as Fuel Utilizing LNG as Fuel focusing on how to process Boil Off Gas 10

2. Utilizing LNG as Fuel Why and When is BOG processing necessary? 1When Bunkering (Cool Down) 2When Docking (Gas Free) 11

2. Utilizing LNG as Fuel How to process Boil Off Gas Gas Combustion Unit MECS-GCU 23

Gas Combustion Unit MECS-GCU What is MECS-GCU? MECS-GCU can safely incinerate BOG which is generated on LNG Fueled vessel, without emitting BOG into the air. 24

Gas Combustion Unit MECS-GCU Exhaust gas thermometer Structure Flame eye フレームアイ window 覗き窓 Exhaust gas Pilot burner パイロットバーナ Cooling fan Furnace Gas burner ガスバーナ Sealing air inlet Fan for air 燃焼空気ファン MDO inlet 26

Gas Combustion Unit MECS-GCU Structure BOG Inlet Blowing air outlet Blowing air Inlet 27

Gas Combustion Unit MECS-GCU Specification TYPE G250 G350 G600 G850 G1200 G1600 G2400 Capacity (kw) 250 350 600 850 1,200 1,600 2,400 Combustion Rate 1 18 25 43 61 86 115 173 (kg/h) Length (mm) Width (mm) Height (mm) 2,150 2,500 3,200 3,800 4,000 4,500 5,000 800 800 850 1,050 1,200 1,300 1,500 2,015 2,100 2,300 2,800 3,100 3,500 4,000 1. Based on 50,030kJ/kg as Low Calorific Value if CH 4 28

Gas Combustion Unit MECS-GCU By introducing BOG combustion unit MECS-GCU, you can say We respect the Environmental preservation. = No BOG disposal into Sky. 29

2. Utilizing LNG as Fuel How to process Boil Off Gas and how to utilize Boil Off Gas as fuel Oil/Gas combination burner Vignis, Vignis-mini, SFFGII 30

Oil/Gas combination burner for boiler How to process BOG/Boil Off Gas in LNG Fueled vessel? Combusting BOG by Boiler-burner Utilizing energy by making steam Boiler Introducing Oil/Gas combination Burner into Boiler. 31

Oil/Gas combination burner for boiler Oil/Gas Combination Burners for LNG Fueled vessel Vignis-mini For LNG Fueled vessel Specification Evaporation rate: For 1.0 to 3.0 t/h Oil combustion capacity: 90 to 250 kg/h Gas combustion capacity: 74 to 206 kg/h Turndown ratio: 3:1 to 10:1 Combustion configuration: Oil / Gas mixed combustion, single-fuel gas combustion, single-fuel oil combustion Spray method: Gas / Diffusive mixing, Oil / Air spraying Control method: Proportional control Compatible fuel: HFO, MGO and LNG Fuel viscosity: Supports 700 cst 32 Mixed combustion Wide variation of available Fuels 2018Volcano All Rights Reserved.

Oil/Gas combination burner for boiler Oil/Gas Combination Burners for LNG Fueled vessel Vignis For LNG Fueled vessel Specification Evaporation rate: For 4.0 to 10.0 t/h Oil combustion capacity: 330 to 835 kg/h Gas combustion capacity: 370 to 935 Nm3/h Turndown ratio: 10:1 Combustion configuration: Oil / Gas mixed combustion, single-fuel gas combustion, single-fuel oil combustion Spray method: Gas / Diffusive mixing, Oil / Vapor spraying Control method: Proportional control Compatible fuel: LNG, HFO, MGO and MDO Fuel viscosity: Supports 700 cst 33 Mixed combustion Wide variation of available Fuels 2018Volcano All Rights Reserved.

Oil/Gas combination burner for boiler Oil/Gas Combination Burners for LNG Fueled vessel/lng Carrier SFFGⅡ For LNG Fueled vessel And for LNG Carrier Specification Evaporation rate: For 6.0 to 70.0 t/h Oil combustion capacity: 550 to 6,300 kg/h Gas combustion capacity: 450 to 5,300 Nm3/h Turndown ratio: Oil 15:1 Gas 7:1 Combustion configuration: Oil / Gas mixed combustion, single-fuel gas combustion, single-fuel oil combustion Spray method: Gas / External mixing, Oil / Vapor spraying Control method: Proportional control Compatible fuel: LNG, HFO, MDO, MGO and crude oil Fuel viscosity: Supports 700 cst 34 Mixed combustion Wide variation of available Fuels 2018Volcano All Rights Reserved.

Oil/Gas combination burner for boiler Gas valve unit Space-saving Pressure-durable for satisfying Classifications requirement 35

Oil/Gas combination burner for boiler Gas/Oil Combination Burner Already has more than 180 sales record on Gas/Oil Combination Burner (Dual-Fuel-Gas-burner) 36 years history Auxiliary Boiler *1 FLNG: Floating LNG *2 FPSO: Floating Production, Storage and Off-loading system *3 FSRU: Floating Storage and Regasification Unit 36

Oil/Gas combination burner for boiler Sales record for LNG fueled vessel except LNG Carrier The World's first LNG Fueled PCTC(Pure Car and Truck Carrier), which was built by Kawasaki Heavy Industries, Ltd. at the Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS) shipyard in Nantong, China, was delivered. Volcano Oil/Gas Combination Burner "Vignis-mini" is installed in this LNG Fueled vessel. Volcano "Vignis-mini" is also installed in her sister vessel which was delivered on November 2016. Length overall: 181 meters Breadth: 30.00 meters Summer molded depth: 9.60 meters Gross tonnage: 42,424 tons Main engine: MAN B&W 8S50ME-C8.2-GI Total loading car capacity: 3,985 units 37

Oil/Gas combination burner for boiler By introducing Oil/Gas combination burner for boiler, you can also say We respect the Environmental preservation. = No BOG disposal into Sky. 38

3. Solution for keeping Blue Sea 39

3. Solution for keeping Blue Sea Marine pollution preventing system *1 WBTA: Waste Oil/Bildge/Treatment Apparatus 40

3. Solution for keeping Blue Sea What is BILCON-X? Outline of the system Water contained to Waste Oil and Bilge is released to the air by extra heat source Control panel F.D. fan Evaporator Pump Tank for Waste Oil and Bilge 41

3. Solution for keeping Blue Sea If Waste Oil contain water 1. Combustion failure in the Incinerator 2. Bulky in the tank -> Unloading in a short period 3. Taking time longer when unload 42

3. Solution for keeping Blue Sea If use BILCON-X After Treatment by BILCON-X Burn it by Incinerator Unload Less cost and time 43

3. Solution for keeping Blue Sea BILCON-X Specification TYPE Capacity Heat Source Inlet Temperature Outlet Temperature Heat source Requirment IREV-1000W 1000kg/day Engine 13 m 3 /h IREV-2000W 2000kg/day Cooling water 80 75 25 m 3 /h IREV-3000W 3000kg/day 37 m 3 /h IREV-1000S 1000kg/day 130 kg/h IREV-2000S 2000kg/day Steam 0.5 MPa 0.5 MPa 250 kg/h IREV-3000S 3000kg/day 370 kg/h IREV-1000T 1000kg/day 14 m 3 /h IREV-2000T 2000kg/day Transfer Oil 140 134 28 m 3 /h IREV-3000T 3000kg/day 42 m 3 /h 44

3. Waste-Oil/Bilge treatment for keeping Blue Sea Size of Evaporator unit mm Type IREV-1000 IREV-2000 IREV-3000 Heat Source Steam/Oil Hot water Steam/Oil Hot water Steam/Oil Hot water Width 500 980 1000 1780 1000 1780 Height 1550 2450 2840 Depth 400 400 600 Size of tank unit mm Capacity 1000 L 2000 L 3000 L Width 1800 2100 2400 Height 1930 2130 2180 Depth 2100 2400 2700 45

3. Waste-Oil/Bilge treatment for keeping Blue Sea Marine pollution preventing system To incinerate WO removed watercontent Easily and safely. *1 WBTA: Waste Oil/Bildge/Treatment Apparatus 46

3. Solution for keeping Blue Sea IMO certified Incinerator VIM/VIRM VIM and VIRM can incinerate waste-oil and solid-waste. By incinerating waste, the vessel internal atmosphere can be kept well and this environment-conscious incinerator can keep Sea and Sky clear. For Ro-Ro transporter PCC, Ferry Our design is based on the shipboard incinerator standard specification MEPC76 (40) prescribed by the IMO. Refuse and waste that are generated on board the vessel while at sea can be burned safely. We have delivered more than 3,000 units to date. 47 2018Volcano All Rights Reserved.

3. Solution for keeping Blue Sea Technical explanation/function & Benefit Easy for inputting A double-door structure contributes for Easy-dumping-in of Waste-materials even during operation. Easy for maintaining Minimized mechanical components and tough refractory material Make the maintenance easier. 48 2018Volcano All Rights Reserved.

3. Solution for keeping Blue Sea By introducing Waste-oil/Bilge concentrator BILCON-X and Incinerator VIM/VIRM, you can say We respect the Environmental preservation and the comfort in the vessel = No disposal oil-content to Sea = No disposal of waste to Sea 49

4. About VOLCANO 50

4. About VOLCANO 1928 Benji Okihara established Osaka Heavy Oil Furnace Manufacturing Company First Japanese low-press air jet oil burner as Trade mark "VOLCANO" 90 th Anniversary 1968 Company name changed to VOLCANO Co,.Ltd. Name Business Head quarter VOLCANO CO., LTD. Combustion equipment manufacturing and sales Osaka / Japan Employee 122 (as of September 2016) 51

Combustion Testing Equipment Full scale size Equipment Equipment Profile Furnace type: Big Water-cooled Testing Furnace Combustion capacity: 2,000kg/h (Heavy Oil) Fuel Type: C/A Heavy Oil, LNG, etc. Combustion Direction: From Top Horizontal Size: 6.2 (H) x 4.0 (W, D) meter VOLCANO is the only burner-maker who has fullscale testing equipment. 52

4. About VOLCANO Marine Equipment Burner for Boiler, GCU and Incinerator Industrial Equipment Burner for Boiler Environmental Equipment Burner for general waste Incinerator Environmental plant Incinerator for Effluent Exhaust gas 53

4. About VOLCANO Contact Us for any your inquiry! email: info-m@volcano.co.jp When you re-use a vessel bought from the other party, please check the name-plate of the burner in the boiler. If there can be seen the letter VOLCANO, please contact VOLCANO. 2015 Volcano All Rights Reserved. CE160623R01 54

Thank you Combustion Engineering Division VOLCANO CO., LTD. TEL: 06-6392-5541 E-mail: info-m@volcano.co.jp http://www.volcano.co.jp/english/ 55