Twentyfour7. Wärtsilä Stakeholder Magazine. no wärtsilä stakeholder magazine

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1 no wärtsilä stakeholder magazine around the globe StruCtureS of the Future SolutionS For a glaring global problem in detail Sign off + FinanCe & business world r&d Twentyfour7. Wärtsilä Stakeholder Magazine

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3 Wärtsilä Stakeholder Magazine* reportage COMING UP WITH ANSWERS Papa Terra field doubles Brazil s oil and gas reserves, but vision and innovation have been needed to produce, store and transport its great wealth. MORE ON PAGE 16 03

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5 *contents Wärtsilä Stakeholder Magazine* reportage 16 OFFSHORE POWER FROM OFFSHORE RESERVES Exploiting the pre-salt oil and gas field off Brazil has needed a technology shift from Wärtsilä in FPSO vessels. In-depth 38 STEERABILITY AND POWER IN ICE Astern icebreaking, polar drilling and the future Northeast passage need a new family of thrusters. Introducing the Icepod. solution 54 ELIMINATING NEWBUILD RISK Complexity means completion risk unless a single supplier is responsible for integrating all vessel machinery and systems... [ contents ] Feature 28 AN END TO WASTEFUL MESSY FLARING Burning off associated gas makes no sense, when the technology to recover it and the engines to use it are available and economical. passion 48 FATHER OF THE CITY OF DREAMS Oscar Niemeyer thought his utopian designs could change people. Perhaps not, but he has truly inspired us Twentyfour7. 5

6 WE POWER THE OIL & GAS INDUSTRY ANYWHERE IN THE WORLD

7 Wärtsilä offers power solutions, products and services for every phase of oil and gas exploration, production, transportation and refining both onshore and off. We are involved in bringing more than 5 million barrels of oil to the market every day, which is more than 6% of the total world production. Whatever the conditions, we deliver worldclass efficiency, fuel flexibility and environmentally sound solutions. Read more at

8 *contents in detail 60 BASELOAD IN ALASKA A Railbelt cooperative turns to Wärtsilä dual-fuel power. 62 COMEBACK FOR GAS-DIESEL Flare gas and oil prices drive demand for GD technology. 65 PIPELAYING OFF BRAZIL Six new Petrobras vessels from three companies, but all with Wärtsilä engines. 48 ON THE ARCHITECT WHO DESIGNED A COMPLETE CAPITAL CITY 67 SCRUBBING OUT SULPHUR With the right technology, heavy fuel oil can still be used in emission control areas. Around The Globe Sign off [ contents ] 11 SNAPSHOT Water everywhere but only drops to drink 12 NEWS IN BRIEF Now driving a quarter of all LNG carriers WÄRTSILÄ GLOCAL WATCH From Rio, Brazil to Cologne, Germany WORDS & NUMBERS 13 SUSTAINABILITY New plans from the Sustainable Shipping Initiative TRENDS & SCENARIOS Phone screens get flexible EvENT Generation X on show at Posidonia 14 CORPORATE CITIZENSHIP Students get a taste of the practical 69 ANTARCTICA Soaring mountains, raging winds and ice, ice, ice. 70 AT YOUR SERvICE Managing production of FPSO vessels is a juggling act. 71 CLASSIC Things bright and beautiful CULTURE Dark energy in the spotlight 72 WÄRTSILÄ STORY A career of putting Wärtsilä on the map 74 LITTLE ENGINEERS Messing about in Leonardo s boat TRAvELLERS GEAR It s all in the presentation Publisher: Wärtsilä Corporation John Stenbergin ranta 2 P.O. Box 196 FI Helsinki Finland Telephone: and feedback: twentyfour7@wartsila.com Editor-in-Chief: Marit Holmlund-Sund Managing Editor: Virva Äimälä Editorial team: Niklas Haga, Maria Nystrand, Atte Palomäki, Dan Pettersson Editorial office and layout: Otavamedia Ltd., Kynämies, Helsinki, Finland English editing: Pat Humphreys, Rick McArthur Printed by Punamusta Joensuu Finland ISSN WÄRTSILÄ is a registered trademark Copyright 2008 Wärtsilä Corporation Paper: cover Galerie Art Gloss 250 g/m 2 inside pages NovaPress Silk 90 g/m 2 Cover photo: Corbis, Suomen Kuvapalvelu Oy Written permission from Wärtsilä Corporation is required for the reproduction of articles in whole or in part. 15 COLUMN Göran Richardsson On work and play in Bangladesh 75 MARIT CALLING My coffee broke The following information contains, or may be deemed to contain forward-looking statements. These statements might relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause Wärtsilä Corporation s or its businesses actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as may, will, could, would, should, expect, plan, anticipate, intend, believe, estimate, predict, potential, or continue, or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this publication are based only on information presently available in relation to the articles contained in this magazine and may not be current any longer and Wärtsilä Corporation assumes no obligation to update any forward-looking statements. Nothing in this publication constitutes investment advice and this publication shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity. Discl a i m er 8 Twentyfour

9 Dear Reader, editorial Financial tumult has dominated the media agenda in recent years. Amid precarious financial scenarios and political recriminations, especially in Europe, it is easy to forget the countries that are thriving. Take Brazil; when people reflect on the largest country in South America they tend to think of football and samba, beaches and the mighty Amazon. Perhaps also the 2014 FIFA World Cup and 2016 Summer Olympics, both to be hosted by Rio de Janeiro. Far less appreciated is the rise of the offshore industry in Brazil. The recent discovery of offshore reserves was the biggest in the Americas for 30 years. It raised the country s crude oil reserves by over 60 percent and is expected to be its ticket to great wealth. Accessing this black gold is an immense project requiring superior knowhow, as well as the technology that Wärtsilä has been able to provide. Along with the oil, natural gas from the well can be tapped, and used to power exploration in an environmentally sound way Brazil is covered in several articles in this issue, including a portrait of the living legend of architecture, Oscar Niemeyer. At the age of 104, he is admirable proof that invention and imagination need not fade with age. and yes, our Cover girl is from Brazil. She is a Brown Booby seabird (Sula leucogaster), a spectacular diver that plunges into the ocean at high speed. Here she is foraging underwater at the rocks of St. Peter and St. Paul Archipelago in the Atlantic Ocean. environmental performance is an increasingly important measure in today s corporate world and Wärtsilä offers a range of solutions to meet the targets. With proper market incentives the benefits are tangible, as our story on flare gas recovery shows. I hope you enjoy your read. [ TwenTyfour7. ] Thank you for your interest in Wärtsilä. Atte Palomäki Group Vice President Communications & Branding atte.palomaki@wartsila.com Twentyfour

10 Wärtsilä Stakeholder Magazine* [ a rou n d t h e gl obe ] *around the News & online glocal watch words & Numbers trends & scenarios 10 Twentyfour

11 [ snapshot ] Age of Aqueous From space, our blue planet appears abundant in water, but just how much of this vital natural resource is clean and accessible? researchers at the United States Geological Survey have recently crunched the numbers, with striking results. Our planet s entire water content can be represented by a sphere 1385 km in diameter. But the volume of fresh water would form a sphere only 273 km in diameter, and that includes groundwater, most of which is not easy to use. all life must rely on surface freshwater from lakes and rivers. This sphere is a mere 56 km in diameter, just % of earth s total water. It is a startling representation of planetary scarcity. globe humanity s demands for clean water are getting inexorably larger. Over 96% of earth s water is in saline form but desalination plants remain an expensive and resource-intensive solution. Environmental sustainability is vital if we are not to run out of the very elixir of life. t e x t: d a n r i d e r p h oto : c o r b i s 11

12 around the globe [ in brief ] news ExcitEmEnt r e s p e ct a n d t r u st QUARTER OF THE LNG FLEET Wärtsilä 50df dualfuel engines now drive 100 liquefied natural gas carriers, about a quarter of the world s fleet. the engines can be operated on natural gas, light fuel oil, or heavy fuel oil with the same output, and switch seamlessly between them during operation. BIGGEST SCRUBBER YET Wärtsilä hamworthy is to install the world s largest multi-stream scrubber, to remove sulphur and particulates from the exhaust gasses of the ms tamesis, a mark iv roro vessel with a combined engine power of 28 mw. the tamesis is owned and operated by Wilh. Wilhelmsen asa. EnErgy m a k e t h i n g s h a p p e n LANDING a contract from petrobras for flare gas recovery on four fpso units off santos, taking the total of systems supplied to the industry above 20. Wärtsilä glocal Watch SMART POWER generation with flexible gas engine concepts won the best paper award at power-gen europe in cologne in June. OFFERING the market s widest range of Ballast Water Management Systems, now with trojan technologies bwms alongside Wärtsilä hamworthy s aquarius. ATTENDING rio oil and gas expo and conference in the Brazilian Oil Capital on september, with power solutions, products and services for every phase of the oil and gas industry. d o t h i n g s b e t t e r ExcEllEncE [ Words & numbers ] u s e f u l d e f i n i t i o n s a n d n u m b e r s o f i n t e r e st. Twentyfour7. is also available on ipad as well as online at magazine.com T e x T: r i c k m c a r t h u r SCanTling draught A vessel s maximum structural draught, typically the same as the design draught but sometimes slightly more. If stability requirements allow, the scantling draught is the maximum draught to which a vessel can be loaded. engine knocking Also called detonation, knocking in spark-ignition internal combustion engines occurs when one or more pockets of air/fuel mixture explode outside the envelope of the normal combustion front. The resulting shock waves can be extremely destructive. 97% The minimum efficiency of the SO x Reducer concepts used to clean engine exhaust gases in Wärtsilä s marine scrubber solutions. 12 Twentyfour

13 around the globe [ sustainability ] Collaborative action plans launched by SSI T e x T: l e n a b a r n e r - r a s M u s s e n Under the Greek Sun [ event] T e x T: r i c k M c a r t h u r at a meeting in Singapore in April, the Sustainable Shipping Initiative (SSI) launched a series of practical, collaborative action plans aimed at developing a sustainable shipping industry for the future. To work on the action plans, SSI members have split into four workstreams, each of which focuses on a different key area. The workstreams include financing sustainable shipping, innovation in energy technology, closed-loop materials management and credible benchmarking and standards. SSI members are committed to deliver tangible results for each workstream before the end of Wärtsilä is part of the workstream on financing sustainable shipping. Shipping is a volatile industry and today s financing tools do not necessarily support [Below] SSI launched in Singapore practical action plans for sustainable shipping. [ Trends & scenarios ] the transformation of the industry as much as they could, said Peter Jantzen, Head of Marine Life Cycle Solutions at Wärtsilä. We need new solutions and more flexibility. To increase levels of sustainability, shipowners, shipyards and operators have to be able to put more focus on technological advancement supported by financing under competitive terms. Wärtsilä s technological development and lifecycle strategy are fully in line with the SSI goals and we are at the forefront of knowhow on energy efficiency and proven environmental solutions, key elements in increasing sustainability in shipping, says Jantzen. For this reason, we re looking into participating in other SSI workstreams, especially the one focusing on technology. f u t u r e p e r s p e ct i v e s. if you are even remotely involved in shipping, you are bound to visit greece every two years for posidonia. it is one the biggest events in the maritime industry, with 15,000 square metres of exhibits and 17,000 visitors from 70 countries. naturally, wärtsilä s colours could be seen at posidonia 2012 in June. all the international movers and shakers in the industry were present at the Metropolitan expo centre in athens and don t forget that we are talking about the country that boasts the greatest number of shipowners. this is the place for presenting the very latest advances. for wärtsilä that meant promoting the new generation low-speed X engines, created to power eco-friendly bulkers, tankers and containers. wärtsilä s vanguard position in green shipping was one of the key messages that the company wanted to convey. a lot of customers demonstrated interest towards our ballast water treatment products and scrubbers that we offer for retrofitting installations, says Alek Tomazos, Managing director of wärtsilä greece. they allow vessels already in operation to comply with new environmental standards. visitors were also impressed to hear of the orders from greek shipowners for 132 wärtsilä dual-fuel engines for 33 lng carriers that wärtsilä in greece has received during the last 15 months. it was not all strictly business. wärtsilä organized an evening reception at the island, the most prestigious club restaurant in athens. the party was the talk of the day, attended by more than a thousand customers including 45 of the biggest shipowners in greece. Your flexible friend Once a geeky sci-fi dream, flexible screens in smartphones and tablets could be a reality by end Some tech giants have already revealed prototypes of curved AMOLED (active matrix organic light emitting diode) screens that are also faster, almost unbreakable (as they made of a plastic polyamide rather than glass) and more energy efficient than traditional OLED displays. But actual bendy phones and tablets that roll up or fold up to reduce their physical footprint? Not before 2016 is the current guesstimate. T e x T: d a n r i d e r P h oto : M at t h e w r o l l i n g s at e n.w i k i p e d i a 3.12 Twentyfour7. 13

14 around the globe [ corporate citizenship ] Doing your fair share You can t learn everything from books. That s where learning from practitioners comes in, even at top universities. T E X T: L E N A B A R N E R - R A S M U S S E N p h oto s : c o R B i S A N d d E L f t U N i v E R S i t y Last February, students at Delft University of Technology in the Netherlands got the chance to hear the latest on noise and vibration from Wärtsilä s top professionals. Sebastiaan Bleuanus works with new technology and innovation at Wärtsilä and is responsible for staying in touch with the universities in the Netherlands that offer courses in engineering. Wärtsilä collaborates particularly closely with Delft University because it is the only university in the Netherlands offering a master s programme in maritime engineering. I was talking with Miroslaw Kaminski, professor of ship and offshore structures, when he mentioned that the lecturer who was due to deliver the course on noise and vibration was on sick leave. Kaminski asked if Wärtsilä could provide part of that course as guest lectures, says Bleuanus. experts From r&d. Bleuanus searched for experts in the area and found them at Wärtsilä R&D. Carlo Pestelli, manager of noise and vibration, and Francesco Degano, noise and vibration engineer, were happy to deliver three sessions consisting of three hours each. Two Dutch companies, MARIN and TNO, provided other parts of the course Francesco and Carlo covered everything, from a general introduction on how to measure vibration to the regulations involved. They also dealt with design philosophy, meaning making sure that the noise doesn t reach the passengers on board and has a minimal influence on the environment. They really did a lot of hard work. environmental impact. When people hear about vessels and the emissions, they immediately think of gaseous emissions, but too much noise can be harmful too. The authorities are currently working on regulating how much noise vessels can radiate under water. Noise in the water has an influence on marine life. Whales, for instance, have a hard time communicating with each other if there is a lot of underwater noise, says Bleuanus. Minimising noise and vibration above water is mainly intended to make the life of the crew safer and more comfortable. If your chair is shaking all the time, you have a hard time focusing on your job. The lectures given by Wärtsilä also covered methods to mitigate noise and reduce its impact, for instance by insulating the source. According to course feedback, the students were happy to meet engineers who deal with noise and vibration on a daily basis. They said it was nice to get lectures from people with practical experience to back up the theories you read in the books, says Bleuanus. 14 Twentyfour

15 [ column ] Miracles don t just happen Brownouts, scheduled blackouts caused by a power shortage, used to be a common phenomenon in Dhaka, Bangladesh. All you can do is hope that it won t coincide with a cricket match on TV. The problem is that factories, too, are affected. Many have their own power plants but, because the factories are usually rather small, they rely on high-speed engines burning expensive light fuel oil. Although Bangladesh suffers from a chronic lack of power, the situation was acute in 2009, with brownouts for up to eight hours a day in different parts of Dhaka. the Brownouts of 2009 were preceded by seven years of political inactivity concerning investments in energy infrastructure. After elections at the end of 2008, the ruling party finally decided to get busy on the issue, which they did. Wärtsilä signed ten contracts in eleven weeks, a pace unheard of in our company s history. Internally, people started talking about the Bangladesh miracle. [Above] Noise in the water. A quiet vessel benefits marine life and everyone above, too. [Right] Delft University of Technology in the Netherlands. dialogue. The lectures were not a monologue on Wärtsilä s part. The students contributed with challenging questions and fresh ideas. Every time you spend time with students, you learn something new. The interactions were also important for Wärtsilä recruitment. Being the only university in the Netherlands with a master programme in maritime engineering, Delft is a principal supplier of new employees with master s degrees for Wärtsilä Netherlands. There are quite a few Delft graduates among us, says Bleuanus. But equally important is the contribution Wärtsilä wants to make to society. Mostly, this is about social responsibility and being a good corporate citizen. We want to do our fair share. however, sometimes a lot of hard work is needed for miracles to happen. The Wärtsilä organisation in Bangladesh had been tirelessly co-operating with investors, utilities and leaders for several years to let them know about Wärtsilä s solutions. When power Miracles come mostly from hard work. demand soared at the beginning of 2010, buyers knew who to turn to. Our fast track capability and unique technology, which makes it easy to convert engines to run on gas when it is available, were key factors in securing the 900 MW orders in 2010 as well as the latest orders of 650 MW at the end of today wärtsilä has a staff of 500 people in Bangladesh, including office, sales, and plant maintenance personnel. The Bangladesh miracle goes to show that a strong local presence will bear fruit. once all the power plants ordered have been installed, Wärtsilä will have more than 2,1 GW generating capacity in Bangladesh, of which over 30 percent will be operated and maintained by Wärtsilä. Then nobody needs to miss a cricket match because of a brownout. Göran richardsson Sales Director, Asia Wärtsilä Power Plants 3.12 Twentyfour7. 15

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17 reportage [ africa americas asia europe oceania ] S t r u c t u r e S o f t h e f u t u r e f r o m the start of next year, an innovative floating Production storage and offloading Vessel will supply wärtsilä Power to the PaPa terra oilfield. Brazil is no stranger to unique designs that require Vision, courage and determination. the P-63 fits this Prodigious mould. T e x T: V e s a e s k o l a p h oto s : V e s a e s k o l a a n d V e l h o t 3.12 Twentyfour7. 17

18 reportage [Right] The P-63 will be connected to Papa Terra s light oil production wells The P-63 is currently being built in china and will soon start on its voyage to the coast of Brazil. Wärtsilä is supplying the Floating Production Storage and Offloading vessel with three main power modules, under a contract with the Brazilian industrial group QUIP. It is a unique vessel in many regards. First of all, it is the first FPSO vessel to utilize gas engines to produce more than 100 MWe of power. It is also vast in size. With a length of metres it stretches beyond the normal field of vision. The other strategic measures are draught 22.9 metres, beam 57.3 metres, and gross tonnage 153,517. In a Chinese shipyard everything is big but the P-63 is still an impressive sight. Wärtsilä s contract includes commissioning, start-up and operational supervision. The vessel will be located 110 kilometres off the Brazilian coast. The engineer as conductor Juha Nurmi is a Site Manager at the P-63 construction dock. The three Wärtsilä power modules include two 18-cylinder 50DF tri-fuel engines, alternators and other ancillary equipment. Nurmi will look after the P-63 until it sails to Brazil. Its main innovation is the technology that gives its engines their unique tri-fuel capability, he explains. They will be able to run either on gas, on processed crude oil directly from the oilfield or on marine diesel. The modules have a self-supporting structure and they consist of two totally separated engine rooms. It is a typical Engineering, Procurement and Construction (EPC) project for Wärtsilä. But of course the new technology means challenges for Nurmi. Wärtsilä has full responsibility for delivering the tested modules to the customer s FPSO platform. This includes a comprehensive high-end power management system from Wärtsilä Norway. The modules are due to be operating in the offshore field from the first half of next year. The project was divided into several phases. First you plan and then you plan some more. Then you need some serious engineering, construction and commissioning work before you run the first full load tests. At times Nurmi feels like the conductor of a huge orchestra. Seamless integration between the different work phases is essential. Our time frame was set by the main project schedule of the platform. It may not sound too complicated, but it is a major challenge to link the construction schedule of the power modules to the construction of the whole FPSO. And everything is done here in China at the same shipyard. new life for a supertanker The P-63 is being created by converting a supertanker, the Nisa, built in When the conversion is complete, the FPSO vessel will have the capacity to produce 140,000 barrels of oil per day and compress 1,000,000 m3 of gas per day. Its minimum storage capacity will be 1,000,000 barrels. The conversion is a huge undertaking, involving the installation of 16 topside facilities weighing 14,000 metric tons. There will be three oil processing units, a gas compression unit, the three Wärtsilä power generation units, two manifold modules, a flare unit, utilities facilities and two water treatment and injection units. There are several teams in different locations handling the different work phases of the power modules project. This keeps Nurmi busy. Managing all the teams has been the real challenge of this project. In offshore technologies we face the challenges typical of a marine environment, like hull movements and corrosion. Ambient temperatures and load variations have to be considered too. All these issues need to be taken into account during the engineering. Of course on top of them are all the normal requirements of safety, quality and so on. Now that the final test runs are almost complete, Nurmi can t wait to see how the P-63 will work on the field. This is such a significant technology shift. Everybody working in the offshore market is eagerly anticipating the final outcome. Me too Twentyfour

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21 reportage E V E R Y O N E I N O F F S H O R E I S M O N I T O R I N G T H E P A N D I T S G R E A T T E C H N O L O G Y S H I F T 3.12 Twentyfour7. 21

22 reportage Challenge of the harvest Papa Terra crude oil field, located in the Campos Basin, was discovered in The field lies at a water depth of 1190 metres. Petrobras operates the field with a 62.5 percent interest; the rest is held by Chevron. At first the field was not very attractive commercially, and the final investment decision of 5.2 billion dollars wasn t made until January Drilling operations will start next year. The field is estimated to contain billion barrels of oil equivalent. About 380 million barrels of oil is expected to be recovered from the field. The current barrel price of about 80 dollars makes the field worth some 30 billion dollars. Altogether there will be 29 wells operating in the area. The heavy oil production wells will be connected to a tension leg wellhead platform (TLWP) P-61. The light oil production wells will be connected to the P-63. The effect of the fields on the Brazilian economy will be enormous. The country is already a modern industrial power and the new reserves will strengthen it even more. Papa Terra will roughly double Brazil s oil and natural gas reserves. Its GDP is already in the world s top ten, and the new discoveries will push it higher, but there is a catch. To recover some of the new resources will require innovation and new thinking. To fully reap the harvest, new technologies are needed. First the new oil and gas reserves must be drilled, then they have to be produced, stored and transported. Fortunately Wärtsilä had the answers to some of those demands. Deep water production Some of the new fields hidden below the seabed of the Atlantic Ocean lie very deep indeed, in a geological formation known as the pre-salt layer. Drilling at a depth of more than 2000 metres is no easy task. With the input of the new fields, the expected daily production from the pre-salt layer is expected to rise above one million barrels of oil by To do so will require new drilling rigs, new FPSOs and support vessels, new refineries and LNG terminals, pipelines and compression facilities. The challenge of drilling is only half of the task. Logistic networks also need to be upgraded and expanded to match the task ahead. Stig Bøtker is Sales Director of the offshore division at the Wärtsilä. Based in Norway he already has knowledge of deep water production. The P-63 is a new departure, a way of creating power offshore on an FPSO. The power requirement was a challenge and the market has been very interested in our solution. Bøtker is very proud of the Wärtsilä innovation. The solution is environmentally friendly, has a fuel efficiency second to none and will be able to burn not only well gas but crude oil too. It is therefore especially well-suited for field development with limited gas reserves. Stig Bøtker points out how Wärtsilä, with its long traditions in the maritime and power sectors, is ideally placed for the challenges. We can take the whole lifecycle responsibility for projects like this from concept development to turnkey contract to service and maintenance. Wärtsilä has a worldwide.. organization able to support the whole. project. 22 Twentyfour

23 reportage Baywatch Brazil: a lifeguard scans the beach Twentyfour7. 23

24 reportage [Below and right] Life in Rio revolves around the shore: its beaches, its harbours and the offshore industry. 24 Twentyfour

25 reportage Coffee, samba and power The P-63 reinforces Wärtsilä s presence in Brazil, which has already been very strong, thanks to Power Plants. Jorge Alcaide is Regional Director of Wärtsilä Power Plants in Brazil. We are already responsible for the construction of 25 plants here, with a total output of more than two gigawatts. Wärtsilä has power plant operations and maintenance services in almost every Brazilian state. The installed base is currently 2.5 GW, of which more than 1.8 GW are under O&M agreements. We recently delivered Suape II, a project with a capacity of 380 MW. It was the biggest plant Wärtsilä had ever built. Together with new business opportunities it will add almost 600 MW to our total capacity in Brazil by This brings total output to more than three gigawatts, but Jorge is sure that more will come. The perspective for the future is even better. Natural gas has a lot of potential. The Flexicycle solution is a major driving force for us in the upcoming energy auctions. wärtsilä in brazil: 1987 LIceNSING agreement SIGNeD WITh IShIBRaS ShIPyaRD TO MaNuFacTuRe WäRTSILä VaSa 22 engines IN BRazIL 1990 WäRTSILä DIeSeL DO BRaSIL IS FOuNDeD 1991 WäRTSILä BRazIL GeTS ITS FIRST ShIP POWeR ORDeR WheN IT SuPPLIeS GeNeRaTING SeTS TO The BRazILIaN NaVy 1996 FIRST WäRTSILä POWeR PLaNT SOLD IN BRazIL 1997 WäRTSILä SeLLS ITS FIRST OPeRaTIONS & MaINTeNaNce agreement IN BRazIL 1998 BRaNch OFFIce OPeNeD IN MaNauS 2000 FIRST WäRTSILä WORkShOP IN RIO De JaNeIRO 2004 SecOND WORkShOP OPeNeD, NOW IN MaNauS 2008 a WäRTSILä LaND & Sea academy IS established IN MaNauS 2009 WäRTSILä ReacheS 1 GW OF INSTaLLeD capacity IN BRazIL under O&M agreements 2012 INSTaLLeD BaSe ReacheS 2.5 GW 3.12 Twentyfour7. 25

26 reportage On Land and sea Wärtsilä has operated successfully in Brazil since 1990 and now employs more than 600 people there. Its headquarters and one workshop are located in Rio de Janeiro. We need no further invitation to visit this magnificent city. Rio de Janeiro is just a few hundred kilometres from the Papa Terra oilfield. If I had a free hand to landscape any place in the world into the perfect environment for a city, I couldn t do better than what Rio de Janeiro already is. Spread over and between lush green hills, wrapped around a magnificent clear blue-watered bay, this breath-taking city hides its real size. It is hard to imagine that a city of nine million people could look so cosy. Maybe it is the Brazilian way of life, to enjoy life as long as you can, that makes the visitor s heart beat faster? Or perhaps it is legendary beaches like Copacabana and Ipanema that make your heart ache? Luiz Antonio Maggioni is a Business Development Manager working for Wärtsilä in Brazil. Wärtsilä Brazil sees great opportunities in contributing to the growth and development of the Brazilian economy and also in the oil and gas sector. Offerings by all our business segments Ship Power, Power Plants, and Services are an excellent match for current and future demand. Maggioni has been busy in all sectors. Wärtsilä Ship Power focuses on marine solutions: ship design, power generation, propulsion solutions, automation and offshore installations. Our installed base in Brazil consists of engines in more than 200 ships and rigs, with a total generating capacity exceeding 1 GW. The P-63 is of course a perfect complement to our portfolio. The role of Wärtsilä Services is to support our customers throughout the lifecycle of their installations by optimizing system performance, efficiency and operation, and also by optimising maintenance, says Maggioni. Land-based power plants are very popular as well. At the end of 2010, Wärtsilä Services entered into Operations and Maintenance Agreements with Borborena Energética S.A. for the UTE Cambina Grande Power Plant (164 MW) in Paraiba, with Maracanaú Geradora de Energia S.A for the UTE Maracanaú Power Plant (168 MW) in Ceará and also with Linhares Geração S.A. for the UTE Linhares Power Plant (204 MW). Life is a beach We take a final stroll around Rio. Beginning at the Museum of Contemporary Art atop a cliff in Niterói (see the article on Brazilian visionary Oscar Niemeyer later in this publication), we end up back at the beaches. Life in Rio centres on the shoreline. The city is bordered by its beaches and its harbours. Oil has a strong presence too. There are several oil platforms in the surrounding waters and the port is incredibly busy. It s a reassuring sight. In the current global economic situation, it s good to see a brighter future ahead. 26 Twentyfour

27 reportage R I O S S A U C E R - S H A P E D A R T M U S E U M C O N T E M P L A T E S T H E N E X T G E N E R A T I O N O F V I S I O N A R Y S T R U C T U R E S, B U I L T F O R B R A Z I L S O F F S H O R E I N D U S T R Y Twentyfour7. 27

28 feature [feature] 28 Twentyfour

29 feature Solutions for a glaring global problem T E X T: F R A N W E AV E R P H OTO S : S h u t t E R S t o c k A N d W ä R t S i l ä 3.12 Twentyfour7. 29

30 feature The flaring of unutilised natural gas at oilfields represents a massive waste of resources and a huge environmental problem on a global scale. Fortunately, suitable technologies for using this gas already exist, including Wärtsilä s engines and flare gas recovery systems. Gas flaring is literally such a glaring problem that it can be seen from space. Composite satellite images of the Earth by night are predictably dotted with bright patches in densely populated regions but they also feature dazzling spots in remote regions with oilfields, where gas is routinely flared off, often on a 24-7 basis. The World Bank s Global Gas Flaring Reduction Partnership (GGFR) estimates that 140 billion cubic metres of unused associated gas is flared off at oilfields around the world every year. This amount of gas could be used to meet the annual electricity demand of Germany. In financial terms, calculated using global average gas prices, about 20 billion dollars worth of this non-renewable resource goes up in smoke every year. To make matters even worse, burning all this gas straight into the atmosphere releases about 400 million tonnes of carbon dioxide every year. It exceeds the greenhouse gas emissions of entire countries like France, Italy or Australia. Careless flaring can also release clouds of sooty smoke containing various toxic chemicals. These pollutants have further climate impacts, and may also cause health problems in local communities. Solutions at hand The GGFR partnership aims to break down the barriers to the utilisation of this wasted resource. Technology providers like Wärtsilä can play a vital role. But to find ways to use associated gas it is important to understand these barriers. Wherever oil is pumped out of the ground, gas and water come up with it, and have to be separated, explains Tomas Rönn, Director, Oil and Gas Business, Wärtsilä Power Plants. The industy is generally aware that associated gas is a resource, but the extra investments needed to capture gas have a lower priority. Many oilfields are located in remote regions like Siberia, the deserts of the Middle East or tropical jungles, where there are no local markets for gas. It is rarely economically feasible to build gas pipelines for the quantities involved. Another problem is that the quantities and the composition of 30 Twentyfour

31 feature THE AMOUNT OF GAS FLARED OFF AT OILFIELDS AROUND THE WORLD COULD SUPPLY THE ENTIRE ELECTRICITY NEEDS OF GERMANY Twentyfour7. 31

32 feature associated gas can vary greatly over time. Methane is the main ingredient, but other hydrocarbons like ethane, propane and butane are also present. The varying quantities mean that a flexible way to use this resource must be found, says Rönn. Rönn believes that Wärtsilä s gas-diesel engines are an ideal solution in such cases, able to produce electricity for use within oil-drilling facilities and workers housing areas. Our engine models such as Wärtsilä 32GD and 46GD can be fuelled using both crude oil and associated gas at the same time, and in almost any proportions, primarily using as much of the freely available gas as possible. Alternative uses for gas In some locations associated gas can be viably processed to create liquefied natural gas (LNG). Wärtsilä can provide the drivers for liquefaction compressors, and engines and fuel systems capable of using the complex heavier fractions that result as side streams from this process. In other locations the best use for associated gas could be to inject it back down into the oilbearing strata to facilitate subsequent oil extraction. Again, Wärtsilä can provide suitable compressor drivers for this re-injection process, says Rönn. It is also possible to recover associated gas and process it to make other petrochemical products. Rönn explains how Saudi Arabia has been implementing a national associated gas recovery plan that largely follows this approach. It shows that there really are a variety of commercial solutions available, and we just need to support the oil-producing countries and oil companies to make the most of this potential. Another advantage of investments in recovering flare gas is that the parties involved can obtain carbon credits for the consequent emission reductions. These credits can then be sold on global emissions trading markets. This has certainly helped to encourage such investments, says Rönn. 32 Twentyfour

33 feature [Above] Tomas Rönn: Wärtsilä gas-diesel engines are ideal for using associated gas on site. Need for effective regulations Only minimal amounts of associated gas are flared off today in Europe. Russia, the country where most gas is flared off today, has enacted legislation this year that obliges oil companies to use at least 95% of associated gas, or pay tough penalties. Rönn describes this as a very positive development. But in many countries around the world such regulations remain ineffective or non-existent. The list of countries where most gas is flared includes Nigeria, Iraq, Iran and Libya. It doesn t help that in many cases the oil industry is working in remote areas in very challenging climatic and political conditions. Economic barriers may also be significant. In some cases, oil companies exploration agreements with host countries only cover oil, so they do not own the associated gas and have no incentive to capture it. The GGFR hopes to end this practice by getting standardised clauses routinely included in GettinG hold of the Gas To be able to use the associated gas available in oilfields, suitable technology is needed for recovering the separated gas from flare lines. Wärtsilä s acquisition of the marine, oil and gas engineering company Hamworthy in January 2012 means that the company can now also provide these crucial complementary systems. Our flare recovery systems really go hand-inglove with Wärtsilä s other offerings. They enable us to recover the gas for generating electricity or, for instance, for producing liquid natural gas, explains Halfdan Millang, Director, Gas Recovery, Wärtsilä Hamworthy. Our flare gas recovery systems completely close off the flare line with a safety valve, so there are zero emissions. Compressor packages then suck off the gas from the flare headers. A backup flare ignition system is integrated into the system to enable short-term flaring during emergency situations, says Millang. Wärtsilä Hamworthy s flare gas recovery systems are already in use in 22 oilfields in the North Sea, Canada, Brazil and West Africa. Millang sees plenty of potential in other markets around the world. We re currently involved in a study for the European Bank for Reconstruction and Development and the GGFR related to Flare Gas Recovery and Utilization programmes for Russia, Tajikistan, Turkmenistan and Azerbaijan, among others, he says. Wärtsilä also provides advice on possible uses for recovered flare gas, and supply technologies that use it to produce liquid natural gas, electricity and purified drinking water. Though there isn t such a thing as a typical flare, it might be possible in an average case to recover enough gas to continually generate 15 megawatts of energy, so we re really talking about substantial volumes. It s a shame on a global scale that so much gas is still harmfully wasted especially when we are already worrying about the future availability of cleaner fuel Twentyfour7. 33

34 feature oil exploration agreements, so as to oblige oil companies to recover the gas. Ecuador shows the way In other parts of the world, both national regulators and oil companies are beginning to see the glaring light, and find ways to turn off the flares. Wärtsilä has recently been involved in a major upgrade of energy facilities at the Eden-Yuturi oilfield run by Ecuador s national oil company Petroamazonas. The oilfield facilities now use electricity produced by four 18-cylinder Wärtsilä 32GDLN gas-diesel, low NO x engines in V-configuration, which can be run on freely available associated gas as their primary fuel, and varying amounts of local crude oil depending on the varying flows of gas. They previously needed to buy liquid fuel oil that had to be transported huge distances through the jungle by truck. Petroamazonas reckon that its 150-milliondollar investment in energy efficiency improvements will save it 75 million dollars a year. It is easy to see that the payback time on the investment is very favourable. Rönn is impressed by the progressive attitude taken by the Ecuadorian authorities. As a national oil company Petroamazonas has been effectively encouraged to work responsibly in the longer-term interests of the country and the environment. They really are looking at the bigger picture, and not simply rushing to pump out oil as quickly as possible. By taking a wider perspective they are ensuring that no valuable resources are wasted, and that harm to the environment is minimised. He says the Ecuadorians appreciate the technical solutions provided. Wärtsilä has enabled them to overcome the considerable logistical challenges in this remote jungle oilfield site, and find ways to optimise the utilisation of their natural resources. WÄRTSILÄ hamworthy S FLARE GAS RECOVERY SYSTEMS ARE IN USE IN THE NORTH SEA, CANADA, BRAZIL AND WEST AFRICA. Working towards a World Without flares To address the problem of gas flaring on a worldwide scale, the Global Gas Flaring Reduction partnership (GGFR) was set up by the World Bank at the World Sustainable Development Summit in This publicprivate partnership brings representatives of major oil companies together with governments of major oil-producing countries. Wärtsilä has been an associate member of the partnership since 2010, as a technology provider. The GGFR aims to reduce the wasteful and environmentally harmful flaring of associated gas by encouraging countries to adopt favourable legislation and policies, and by spreading awareness of best practices and suitable technologies. In April 2012 the GGFR resolved to intensify efforts to promote the utilisation of associated gas around the world during the years Regional and country-specific programmes will be stepped up where flaring is widespread. The partnership also wants to enable communities close to flaring sites in developing countries to obtain energy from gas that would otherwise be wasted. The GGFR also monitors the scope of gas flaring around the world using satellite images. Its studies suggest that about 25% of the associated gas extracted in oilfields around the world is today flared off. The problem could be even greater, since satellites can only spot flares at night. In some oilfields gas may be flared more widely by day or even invisibly vented off without flaring. Such venting is extremely harmful to the environment, because unflared gas has a greenhouse effect about twenty times higher than flared gas emissions. 34 Twentyfour

35 FINANCE & BUSINESS WORLD Gas is playing a big role IN New business The shipping and energy industries of North America are taking advantage of recently-found shale gas deposits. Their new interest opens new market opportunities for Wärtsilä. T E X T: M A A R I T K A U N I S K A N G A S p h oto : S h U T T e R S T o c K WE are WiTnEssing a paradigm shift. A few thousand years ago it was oars to sail, two centuries ago sail to steam, a century ago steam to diesel. Now it s a new era for gas, says John Hatley, Vice President for Ship Power in the Americas. Its benefits are that it is abundant, available and affordable, he says. The move to natural gas is backed by vast shale gas discoveries in the US and Canada. Natural gas in North America has been significantly cheaper than in Europe for several years and is predicted to remain so. Another factor is that today there is an emission control area at a radius of 200 nautical miles around the US and parts of Canada, where traditional low-cost heavy fuel use is not allowed. TighTEr regulations in 2015 By 2015 regulations will tighten further, requiring expensive low-sulphur diesel fuel, which will impose added financial hardship on vessel operators. The shipping industry is moving toward a preference for natural gas, based firstly on compelling operational savings and secondly on the environmental benefits that gas offers. As the leading provider of gas solutions to the marine industry, Wärtsilä has been awarded orders for four LNG-fuelled offshore supply vessels for the Gulf of Mexico by Harvey Gulf, a company that is taking the lead in adopting this advanced technology. The order has raised interest among a wide range of other ship owners towards LNG solutions. Some of them have already made very serious inquiries, John Hatley says. We have secured a strategic co-operation agreement with Shell, which brings certainty to the LNG fuels market regarding supply and distribution. This engagement has built confidence among ship owners and is now breeding investments. perfect solutions for utilities Gas is also playing an important role in power production. Until recently, half of the electricity generated in the US was from coal-burning power plants. The pattern of energy demand has changed because there is now less manufacturing and because the service economy has different needs. Another factor is the increasing use of renewables such as wind and solar power. The demand and the supply of power have both become irregular. Grid operators need flexible gas power plants, for which Wärtsilä s technology is perfect, says Wayne Elmore, Regional Director, Power Plant Sales, Wärtsilä in North America. Wärtsilä s power plants respond quickly and efficiently to changing demands, whereas conventional gas turbines are designed primarily for steady full-load operation. Wärtsilä calls this Smart Power Generation all-in-one environmentally friendly solutions that can operate cost efficiently around the clock, no matter what the grid demands. Typical plants range from 50 to 500 MW in size, with efficiency greater than 50 percent. The plants may be started and restarted many times a day without penalty. Says Wayne Elmore: The market prospects look great for Smart Power Generation and we are working hard to educate customers and their consultants about our technology and offering. Twentyfour7. 35

36 [facts and figures] steady DeveloPMenT DesPiTe TouGH MarKeT conditions A u t h o r : Pa u l i i n a T e n n i l ä, D i r e c T o r, i n v e s T o r r e l at i o n s The second quarter marked steady progress for WärTsilä. Our net sales grew by 6% and our profitability was 10.3%. Good development within the specialised vessel segments of Ship Power compensated for slightly weaker second quarter order intake by Power Plants. Development in Services remained rather steady, despite the tough market conditions in the merchant vessel markets. Our order intake continued to increase and was up by 7% in the first six months. power plant markets active Power plant market activity was at a good level in the second quarter of 2012, and the level of quoted MWs was high. The emerging markets continued to invest in new power generation capacity and activity has been strongest in the gas-based generation and flexible baseload segment. Volatility in the macroeconomy delayed the decision making process for certain large investments. The order intake for Power Plants in the second quarter was 33% lower than for the corresponding period last year. Compared to the previous quarter, order intake decreased by 8%. However, in terms of MWs, the order intake was stable and approximately 800 MWs were ordered. During the second quarter, Wärtsilä received its largest order from Azerbaijan for a 384 MW power plant as well as a 113 MW order from Indonesia. Both of these plants rely on the benefits of Wärtsilä s Smart Power Generation concept. During 2011, the overall market for gas and liquid fuel based power plants grew to approximately GW (70.1). This includes all prime mover units of over 5 MW. Wärtsilä s share represents 3.3% of the market (4.5). key figures MEUR 4 6/ /2011 Change 1 6/ /2011 Change 2011 order intake % % order book at the end of the period % net sales % % operating result (ebita) % % 485 % of net sales 11.2% 11.6% 11.0% 11.2% 11.5% operating result (ebit) % % 469 % of net sales 10.3% 11.3% 10.2% 10.9% 11.1% Profit before taxes earnings/share, eur cash flow from operating activities net interest-bearing net debt at the end of the period Gross capital expenditure Gearing ebita is shown excluding non-recurring items of eur 13 million (12) and intangible asset amortisation related to acquisitions of eur 17 million (7) during the review period January-June During the second quarter, non-recurring items amounted to eur 6 million (9) and intangible asset amortisation related to acquisitions to eur 10 million (3). 2 ebit is shown excluding non-recurring items. 36 Twentyfour

37 & BUSINESS WORLD Strong SpecialiSed vessel SegmentS The activity level in vessel ordering is considerably lower than in 2011, which corresponds to the continuing tough market conditions for traditional merchant segments, i.e. bulkers, tankers and container vessels. Contracting activity has, however, been robust for the offshore and specialised vessel markets. China and Korea continued to be the dominant countries in shipbuilding. Additionally, small shipbuilding countries such as Brazil, Norway, the USA and Turkey are providing an interesting number of contracts. The second quarter order intake for Ship Power grew by 46% over the corresponding period last year and by 62% compared to the previous quarter. Among the various orders, Ship Power received an order for six Pipe Laying Vessels for use by the Brazilian energy giant Petrobras. Ordering activity related to recently-acquired Hamworthy continued to be lively, especially for oil & gas and environmental solutions. During the quarter, the global ro-ro operator Wilh. Wilhelmsen ASA placed an order for the world s largest hybrid scrubber. The scrubber will be retrofitted to the MV Tamesis for cleaning its exhaust gases. Wärtsilä s share of the medium-speed main engine market remained stable at 49% (49% at the end of the previous quarter). The market share in low-speed engines decreased slightly to 22% (24). In the auxiliary engine market, Wärtsilä s share was 5% (5). ongoing interest in Service agreements The service market continued to be at a stable level for both marine and power plant customers. The market for the different marine sectors was also stable, with some improvement in the merchant marine sector. Geographically there was a small improvement in activity in North Europe, and a slight decrease in the Americas. During the second quarter, Wärtsilä signed Operations & Maintenance (O&M) agreements with power plant customers in South Africa and the Democratic Republic of Timor-Leste. These power plants have a combined output of approximately 300 MWs. A longterm service agreement was signed with global cruise operator Princess Cruise Lines Ltd. The contract covers seven Princess Cruise Lines vessels with an installed engine output of 270 MW. Second-quarter net sales for Services remained stable at EUR 449 million (452). market outlook and WärtSilä prospects for 2012 The power generation market is expected to remain active in The growing emerging markets will continue to invest in new power generation capacity, which will drive demand, especially in the flexible baseload segment. The outlook for overall vessel contracting activity during 2012 is slightly negative, although robust contracting activity, in line with activity levels seen during 2011 and so far in 2012, is expected for the offshore, gas carrier, and other specialised vessel markets. Interesting opportunities are seen in the following areas: efficiency improvement, gas as a fuel, and environmental solutions. Despite the slightly improved market situation in the review period, some uncertainties remain in the service market. The merchant marine segments are still expected to be under pressure, as overcapacity in the market continues to impact the potential for services in this area. Development in the active installed base is expected to be moderate, with continued scrapping, layups, slow steaming, and low utilisation of vessels in the merchant segments. The power plant service market is expected to develop steadily. Wärtsilä reiterates its prospects for 2012: net sales are expected to grow by 5-10% and operational profitability (EBIT% before non-recurring items) is expected to be 10-11%. Twentyfour7. 37

38 in-depth [ in-depth ] 38 Twentyfour

39 in-depth Ice and polar applications require special solutions because of extreme weather conditions. Markets can also shift like icebergs, as laws change and customer needs evolve. T e x T: j u k k a v i s k a r i P h oto s : w ä r t s i l ä, w a g e n b o r g a n d s h u t t e r s t o c k A traditional vessel operating in ice opens a channel by moving forward, but more and more vessels are being designed for astern icebreaking. Icepod is an innovative, steerable pulling thruster designed for 1A Super Ice Class or higher. It allows for astern ice breaking operations, where the open fixed-pitch propeller is actively used in ice milling and flushing. This type of new thruster can withstand the loads caused by the impact of large ice blocks on the thruster components and systems, points out Elias Boletis, Director of Propulsion Programs and Technologies at Wärtsilä, responsible for R&D in the Netherlands and Norway. Meeting future requirements today A few years ago, developers of propulsion systems started to look at steerable thrusters for several applications, says Boletis. They make a vessel much easier to manoeuvre, especially under extreme conditions. We are developing a new family of products suitable for ice and polar applications. The main market at present is the Baltic Sea including the Gulf of Finland, where vessels and their propulsion systems need to be ice-classed to access St. Petersburg and Helsinki in the winter. There is lucrative future potential in the Northeast Passage, the northern sea route along the Russian Arctic coast from Murmansk to the Far East. It can cut freight delivery times for goods from Asia to Europe by a third and provide great fuel savings compared with the current Suez Canal route. In the years to come, freight operators are certain to be interested in opening the northern route, says Boletis. But it is ice-free for only few months in a year and navigable only by vessels with high ice capability. Large tankers will also want to use the northern route. Special vessels for oil drilling may spread to polar areas. And steerable thrusters could also be used in Russian rivers and the Caspian Sea. advanced solution Icepods differ significantly in shape from steerable thrusters designed for open water conditions. Structurally, an icepod has a larger pod size but a smaller, faster running propeller. With special steels used in construction, it is several times Twentyfour

40 in-depth stronger than a normal thruster. Its ice-strengthened propeller is driven by gears enclosed by a protective and sturdy casing. The thrusters rotate 360-degrees around a vertical axis, enabling versatile ice operations. Yet they offer good open-water efficiency, mainly because of their open pulling propeller configuration. The Z-drive configuration allows a low-height thruster room, which maximizes work deck space. For now, icepods are available in two power classes: 1750kW and 2500kW, but it can be expanded in response to customer needs, says Boletis. The capability to use thrusters for ice milling is an advantage. You can open a path by drilling the ice out. [ in-depth ] NAVIGATING THROUGH THE RULES The ice and polar market is influenced by a combination of local and international classification rules, making the situation complex for ship operators. Different areas in the world such as Russia, Sweden/Finland and other legislative authorities use slightly different definitions. Global certification authorities all have their own certification requirements, and there are more global rules for vessels operating in the polar areas. Ice classes depend on hull structural design, engine output and performance in ice. At the risk of simplification, there are three generic ice classes. Ice-classes one and two, mild and moderate, which refer to vessels that, when they enter icy Baltic areas or inland waters in IACS PC1 PC2 PC3 PC4 PC5 Year-Round Navigation in Arctic Waters Winter Navigation in Sub- Arctic Waters IA Super IA IB IC PC6 PC7 Summer navigation in Arctic Waters IACS: International Association of Classification Societies Ltd. FSICR FSIR: Finnish Swedish Ice Class Rules 40 Twentyfour

41 in-depth Launch of Wagenborg s IMSV Serkeborg. This transverse launching is a spectacular event which is typical for shipyards in the northern part of the Netherlands. an ICePoD For THe CaSPIan Sea royal wagenborg approached Wärtsilä in 2007 to request thrusters for new ice-breaking support vessels. The Wagenborg requirements, based on operational experience in the North Caspian sea since 1998, could not be met with existing steerable thrusters as they included ice milling operations in environmentally sensitive, shallow waters. The main design challenge was to understand how a steerable, 360-degree rotating, pulling thruster would be operated in ice, says Joost van Eijnatten from Wärtsilä Propulsion Centre of Excellence in the Netherlands. The ice loads on the propeller and other parts of the thruster also needed to be defined. The name Icepod was coined in planning meetings that year, to describe a high ice class thruster. Because both a vessel and her thrusters need to be certified by a classification society, Wärtsilä used their guidelines and mandatory rules in the design, more specifically the new IACS Polar Class rule requirements. Wärtsilä has developed tools and in-house design guidelines based on rule requirements, plus its own specifications where rules did not exist. Ice class rules for thrusters are scattered and general. The development work was performed in close cooperation with Wagenborg and involved external parties such as Aker Arctic, VTT, DNV and Vicura. Twentyfour

42 [ in-depth ] To break ice, icepod propellers run at 300 rpm, which is much faster than a normal thruster. Splash lubrication reduces efficiency losses and fuel consumption. Central and North Asia areas, are aided by ice breakers. The third, high ice class vessels can operate under all-year ice conditions. Wärtsilä concentrates on high-volume ice-class categories one and two. The company and its acquisitions boast more than 300 high ice class CP propeller references and 40 for ice classed thrusters. It aims to provide customers with competitive integrated solutions where Wärtsilä s propulsion system, engines and ship automation form one entity. ExtEnsivE references The Wärtsilä propulsion solutions family currently ranges from 400 kilowatts to 60 megawatts. This covers the majority of practical applications; in addition to icepods, controllable and fixed pitch propellers, waterjets, normal azimuthing thrusters, tunnel thrusters and marine gearboxes are available. This is a demanding market where solutions need to be validated in the field. We have now taken the initial steps for more future applications, says Boletis. The legislative changes are foreseeable. Emissions and fuel consumption will be vital future factors in the success of steerable thrusters. selling icepod to ALAsKA Wärtsilä provided the first-ever icepod for the University of Alaska Fairbanks. The two can-mounted Icepod 2500 thrusters were delivered in the first quarter of 2012 for the R/V Sikuliaq, built at the Marinette Marine shipyard in Wisconsin. The University had dreamed of a new research vessel since The 80 metre-long oceanographic research ship will finally take scientists to icy waters in The American Reinvestment and Recovery Act, a stimulus package devised to fight the recession, helped realise the dream. They had done their homework, made some designs. Now they are actually modifying the whole port for the vessel. This is a really big and exciting thing for Alaska, says Brian Fariello, the business sales manager in the project. Sikuliaq, one of the world s most advanced university research vessels, can break ice up to 90 centimetres thick. Both the vessel and its thrusters are ice class PC5 (classed by ABS). Fariello is proud of Wärtsilä s 30-year history in demanding propulsion solutions for arctic applications. In this project there has been a lot of customisation, particularly in the propeller design. This research vessel needed to be able to break and mill ice but also maintain low levels of underwater radiated noise when operating on a scientific mission. It was a key achievement in the project. As special requirements Van Eijnatten lists cavitation-free operation in multiple conditions, resilient mounting of the electric drive motor and the redundancy requirements for support systems. The can-mounted thrusters of Sikuliaq can be replaced with the vessel afloat. Handy, if you sail in remote areas with an operating range of 18,000 nautical miies at 10 knots. The 4-lip shaft seal used in icepods prevents oil leakage, water ingress and oil contamination in sensitive polar waters. 42 Twentyfour

43 research development innovation r&d Wider power DriVe range With the new Medium Voltage Power Drive, Wärtsilä becomes a total solutions supplier for large, electric propulsion vessels and the offshore oil and gas industry. Together with its patented Low Loss Concept, the power drive brings increased efficiency and redundancy to the larger marine electric propulsion market. T E X T: h a r r i e t ö s t e r By adding a medium voltage unit to the low voltage power drive range offered since 2005, Wärtsilä has extended its solutions in the shipping industry towards more powerful units. The drive will allow the delivery of electric and automation systems for large, electric propulsion vessels, such as drilling rigs and tankers, large passenger and cruise ships and various offshore service vessels, as well as for large fans, pumps, compressors, hoists and other equipment in the offshore oil and gas industry. The drive is a core component in electric propulsion. Combined with Wärtsilä s dualfuel engines, switchboard and automation systems, propellers and thrusters, this new drive makes up a complete system solution for the medium voltage range, says General Manager Jakob Bjelland, Power Drives, Wärtsilä Ship Power. He is in charge of the medium voltage power drive development project at Wärtsilä s R&D facilities in Stord and Trondheim, Norway. We will be able to offer the medium voltage power drive together with medium voltage Low Loss Concept (LLC) solutions. The combination is designed especially for marine applications and provides unique features. In the offshore sector and on board large ships, space is very expensive. Our compact solution eliminates the heavy, large propulsion transformers in the power distribution system, thus minimizing both investments and the need for costly space, Bjelland says. Space consuming transformers eliminated In the traditional solution for electric propulsion, every unit consists of a propeller system, a drive with the necessary frequency converter and a propulsion transformer, all built in line. The role of the drive transformer is to filter off the disturbing harmonic currents in the electrical system before the frequency converter. On a middle-sized ship there may be four to seven of these propulsion units, each with its own spaceconsuming transformer Twentyfour7. 43

44 [innovation] A power drive is a compact solution for the offshore sector that saves expensive space. The Wärtsilä concept implies that the propulsion transformers are eliminated and replaced by one or two LLC phase shift transformers in a central position, controlling several power drives each. Thus the LLC transformer becomes part of the switchboard unit. The modular design of the power drive allows easy installation and maintenance, with special attention having been paid to personnel safety. LLC gives this next-generation propulsion system increased efficiency and high redundancy, which is very important. The high efficiency means lower fuel consumption and reduced operating costs, Bjelland points out. When using the LLC phase shift transformer, electrical energy bypasses the transformer instead of flowing through it. This results in lower electric losses in the system, which saves fuel and reduces the need for auxiliary machinery systems. With LLC the propulsion system can be divided into several units working separately. If a larger failure occurs, the consequences are smaller than with a traditional system. In case of a short circuit, the power generation is reduced to 75 percent, but all of the propeller availability still remains and the vessel is steerable. It is vital for a ship to reach the harbour even with an engine fault, and for an offshore support vessel steerability is of utmost importance. More complicated than in the low voltage range The basic concept when developing the medium voltage power drive was similar to the solution in 44 Twentyfour

45 R&D efficiency and redundancy WiTh an integrated solution ELECTRICAL ENERGY BYPASSES THE TRANS- FORMER, CUTTING LOSSES AND SAVING FUEL. the low voltage range. But since the components are in the medium voltage range, with a supply voltage of 6.6 kv, the construction is different and the final solution more complicated, Bjelland explains. Our approach has been quite similar to that for the low voltage range: the final solution has to be compact, easy to install, and robust in use. Development work on the medium voltage power drive began in A project for installing an internal pilot in 2013 is in progress. Bjelland notes that testing of the pilot will continue throughout An external pilot is planned for the second half of Since this is a completely new technical solution, it will take time to analyse the test runs and ensure that everything is of good quality. On the other hand, since the equipment does not suffer wear or degradation when being used, the length of the test runs is very different to that of diesel engines. integrated solutions for offshore ProjecTs With this new drive in the medium voltage range, Wärtsilä offers complete solutions for power generation and vessel positioning. Wärtsilä also offers complete electrical and automation systems. Taking into account all the equipment needed for fuel and operational flexibility, emission control systems, and customized vessel design, Wärtsilä has the broadest product portfolio on the market. The integrated automation system and LLC for power distribution is a good example of the company s capability to significantly upgrade on-board efficiency. Wärtsilä has unique competence to successfully follow and support offshore projects throughout their lifecycle. The comprehensive, integrated solutions are designed to optimize efficiency and minimize operating risks for the resource owner. This facilitates focusing on creating value in the energy market, which is the core business of the owner. The WärTsilä MediuM VolTage PoWer drive can be used as a control device in various marine propulsion and thruster applications, as well as in large fans, pumps, compressors and hoists. It can control asynchronous, synchronous and permanent magnet machines in generator or motor mode. The construction is based on press-pack IGBT (Insulated Gate Bipolar Transistor) technology with 3-level PWM (Pulse-Width Modulation) inverter control. The modular design has large overload capacity, integrated gate driver boards, and a plug-in bus bar connection. The drive is cooled with de-ionized water, produced from fresh or salt water. The cooling water cabinet, including the de-ionizing unit, can be delivered as an integrated or standalone solution. The drive is available in 12, 18 and 24 pulse configurations, and harmonic currents and voltages injected to the switchboard of a marine application are kept well below the requirements of international standards. Together with Wärtsilä s patented medium voltage Low Loss Concept (LLC) for power distribution, the medium voltage power drive brings increased efficiency and redundancy to the larger marine electric propulsion market. The role of the traditional drive transformers is to filter off disturbing harmonic currents in the system before the frequency converter. They stand in line with the other equipment and power passes through the whole system, creating system losses on the way. With LLC the electrical energy bypasses the transformer. The LLC phase-shifting transformer eliminates harmonic currents by shifting them to the opposite phase, thus counteracting them. It involves separating the electrical supply into several outputs; each output being phase-shifted with the other outputs at an appropriate angle for the harmonics to be eliminated. The LLC transformer controls several drivers each, thus becoming part of the switchboard unit. The configuration of LLC results in a higher system efficiency of 2 4 per cent compared to traditional transformer based systems. Using traditional solutions with propulsion transformers, a switchboard short circuit is the most frequently occurring fault. With LLC, purely mechanical faults are the most frequent. A CONTROL DEVICE FOR MARINE PROPULSION AS WELL AS FANS, PUMPS, COMPRESSORS AND HOISTS Twentyfour7. 45

46 T e x T: R i c k M c A R t h u R I l l u s T r at I o n : i l j A k A R s i k A s infographics Emissions from shipping due to the combustion of marine fuels sulphur oxides (so X ), nitrous oxides (NO X ) and partictulates contribute to air pollution, threatening human health and harming the environment through acidification, especially in coastal areas and harbours. shipping also contributes to man-made emissions of greenhouse gases, mainly carbon dioxide (co 2 ), ozone-depleting substances and volatile organic compounds (VOc). Controlling our environmental footprint Further information on ocean acidification and ocean carbon uptake: [ i n f ogr a phics ] the revised MARPOl (international convention for the Prevention of Pollution from ships) Annex Vi allows Emission control Areas (EcAs) to be designated for NO X emissions, for sox emissions and particulates, or for all three types of emissions by ships. in Europe, an EcA is already in force in the North sea, the Baltic sea and the English channel, and vessels sailing in waters off the North American coast are also now subject to international emissions regulations. studies indicate that a more acidic environment has a dramatic effect on species such as clams, oysters, sea urchins, shallow-water and deep-sea corals, and calcareous plankton. When shelled organisms are at risk, the entire food chain could also be at risk. More than a billion people currently rely on food from the ocean as their primary source of protein. 46 Twentyfour

47 nitrogen dioxide (no 2 ) pollutant Carbon dioxide (Co 2 ) greenhouse gas sulphur dioxide (so 2 ) pollutant ocean acidification Amendments to the IMO s MARPOL Annex VI regulations unanimously adopted by the Marine Environment Protection Committee (MEPC) in October 2008 are designed to achieve a progressive reduction in SO X emissions from ships. Progressive reductions in the permissible level of NO X emissions have also been agreed. Called by some the other carbon dioxide problem, fundamental changes in seawater chemistry are occurring throughout the world s oceans, which absorb about 25% of the CO 2 that humans release into the atmosphere. As atmospheric CO 2 levels increase, the amount absorbed by the oceans also increase, a result confirmed by decades of observations and known as ocean acidification. Carbon dioxide water Carbonate ion two bicarbonate ions When CO 2 is absorbed by seawater, chemical reactions reduce its ph (so it becomes more acidic), carbonate ion concentration, and the saturation states of biologically-important calcium carbonate minerals building blocks for the skeletons and shells of many marine organisms Twentyfour7. 47

48 passion Living the dream 48

49 passion T e x T: M i n n a Ta k k u n e n P h oto s : v e s a e s ko l a, c o r b i s 3.12 Twentyfour7. 49

50 passion The Niterói Contemporary Art Museum, Rio de Janeiro The sculpted buildings of Oscar Niemeyer are expressive forerunners of modern living. But have his utopian designs for the capital of Brazil succeeded in transforming everyday life as he intended? Brasilia looks like a scene from science fiction or a whimsical imaginary playground of vast white curves and organic parabolic vaults. Some facades are so airy that their buildings appear to be floating in the air and could effortlessly take off and glide away. The same landscape contains a diversity of horizontal and vertical structures and unfinished surfaces. These are modern illusions, lightness in concrete. Between buildings are wide plazas, much grander than the contemporary standard, dedicated to pedestrians. Green spaces fit seamlessly into the cityscape, making it easy to step from the stone to the grass. Cars have been thought of, too, but less so, and certainly much less than in today s typical urban designs. Is it an ideal setting for real people? The concept of Brazil s new capital was put into practice in the late fifties and its merits have been under debate ever since. It is certainly a legendary city, and a true forerunner in its modernity. Utopia in the making In 1956 urban planner Lúcio Costa and architect Oscar Niemeyer, who had worked in Costa s office, were commissioned to orchestrate the design for the future capital of Brazil, no more and no less. It was any architect s dream: the opportunity to create an entirely new city from nothing, with complete freedom. Prior to the grand design of Brasilia, Niemeyer had worked with the Swiss-born legend Le Corbusier on a new building for the Ministry of Education in Rio de Janeiro. Inspired by the modern outlook of the master, Niemeyer started to approach architecture highly expressively. His designs were visually rich in an anti-rational fashion, and combined with ideals of justice and equality. Not that he would omit the surroundings and context completely, quite the contrary. He always considered the spiritual function of the buildings he designed. But, essentially, his designs in Brasilia and everywhere else have been fantasies taking flight. When you look at the capital from the air, the city resembles an airplane, a butterfly or a bird in flight. In fact the planning was done after an aerial survey of the region. Every element in the whole, from residential areas to administrative buildings, from the proportions to the juxtapositions of the buildings, is meant to be in harmony with the overall layout. Unified landscape architecture had not been done before to this degree, and in fact still hasn t except in one other place, Chandigarh in Northern India. The architectural planning took no more than a few years and Brasilia became the official capital of Brazil in Most of its major buildings were designed by Niemeyer. One of the most notable is the circular Cathedral, a bundle of curved concrete ribs rising into the sky. The daring landmark of modern urban planning had been born. Has it lived up to expectations? Niemeyer himself stated in 1958, well before his design for the city was completed, that his utopian dream could not be realized unless society was reorganised to suit it. Making the world a better place In his memoirs, Niemeyer writes that he created designs with courage and idealism, but also with an awareness that what is important is life, friends and attempting to make this unjust world a better place in which to live. But how do we set out to shape human behaviour? Is this perhaps a chicken-and-egg question? Should people and their existing needs and processes set the parameters for city design? Or should the city start from ideals and seek to mould the lives of its inhabitants once they start living in a three-dimensional dream? 50 Twentyfour

51 passion modern illusions, lightness in concrete 3.12 Twentyfour7. 51

52 passion should the people shape their city, or can the city mould its people? 52 Twentyfour

53 passion It was certainly the belief of Niemeyer and Costa that architecture can be an agent for change. The intention behind the plan for Brasilia was to attract settlers so that the deserted region a thousand kilometres to the north-west of Rio de Janeiro could be integrated with the coastal areas of the country. Niemeyer had been a member of the Brazilian Communist Party since 1945, which gives another indication that he saw humankind as a work in progress. In 1964, he was forced into exile after the army took over the country and outlawed those of his political leanings. Form follows the feminine Even though politics interrupted Niemeyer s life, sketching and fantasising did not come to an end. With an office in Paris on the Champs-Élysées, Niemeyer continued his uncompromising creations of elegant curves. Over six hundred new works appeared at premier urban locations, the headquarters of the United Nations in New York being one of the most famous. Born in Rio de Janeiro in 1907, he always emphasized that he wanted to design what pleases me in a way that is naturally linked to my roots and the country of my origin. He has spoken of how the curves of Brazilian rivers, mountains, baroque churches and, above all, suntanned ladies, have found their way into his work. The form follows the feminine, he says. Besides the curves, another distinguishable ambition has been to reduce obviously structural elements to a minimum, generating the illusion of concrete floating above the ground. Unquestionable legacy Able to design everything from scratch, Niemeyer and Costa had complete freedom in how they laid out their city. In its lack of historical layers, it has a symmetry that is almost haunting. The concept of Brasilia has been the target for avid praise but also fierce criticism. Not all have welcomed the attempt to create a habitat by design rather than through organic growth, time and the accumulation of layers through real lives lived. As a representation of a pure concept for a modern city, Brasilia was listed as a World Heritage Site by UNESCO in It is the only city built in the 20th century on the list. Visitors say that arriving to Brasília feels like coming to a different planet. Even though Niemeyer s urban utopia can be faulted, Brasilia has the highest education rate and the best quality of life in Brazil. A happy co-incidence, a sociological consequence of its elite community, or something else? 104 and still building the world Niemeyer moved back to his home country in the eighties, after the military era had ended. In 1988, he received the Pritzker award, considered the Oscar of the architecture, together with American Gordon Bunshaft. It is an understatement to say Niemeyer has been dedicated to his work. When he was 89, he designed the much-praised Contemporary Art Museum in Niterói, a city neighbouring Rio de Janeiro. It is a building that seems to keep gravity at bay. Two years ago, a seashell-shaped building housing the Niemeyer foundation was opened just outside Rio. It showcases his models and drawings. Utopian or not, Niemeyer is still heavily involved with reality. Now 104, he is still working. There are few people whose career spans seven decades. In May 2012, he was treated for pneumonia but discharged from hospital after three weeks. He said he could not wait to get home to return to his work. When the World Cup is held in Brazil in 2014 and the Olympic games in 2016, there may be new opportunities for him to design more national fantasies. Architecture was my way of expressing my ideals: to be simple, to create a world equal to everyone, to look at people with optimism, that everyone has a gift, he has said. I want nothing but general happiness. Why is that bad? Oscar Niemeyer at 104, still dedicated to work. Everyone has a gift Twentyfour7. 53

54 solution KEEPING [ solution ] luxury cruise liners engines IN SHIP SHAPE TexT: Fran Weaver photos: Wärtsilä 54 Twentyfour

55 solution HOW TO CUT NeWBUILD RIsKs T e x T: k atj a a l a j a p h oto s : s H U T T e r s T O C k, H a r a l d m. va l d e r H a U g a n d What do an offshore supply ship and a floating production storage and offloading unit have in common? Both are based on a Wärtsilä integrated solution, the key to getting the vessel financed and built in time. and windy North Sea ahead! It was March RaINy 2012 and the Viking Prince was ready to leave Kleven Yard on the dramatic west coast of Norway. The completion of this smart offshore service vessel was a source of satisfaction for many parties. The owner, Eidesvik Offshore, was delighted that its next-generation, liquefied natural gas- powered offshore vessel had been built on time. Kleven Maritime was pleased with yet another sophisticated newbuild project successfully completed. The charterer, Lundin Petroleum, was happy to be able to put the vessel into operation at its oilfield. Wärtsilä played a big role in the project, run by Kleven Maritime. Wärtsilä designed the vessel and acted as the system integrator for the ship s machinery and systems. It supplied the entire power generation system including dual-fuel machinery, its Low Loss Concept (LLC) electrical propulsion system and its integrated automation system (IAS). LLC is a proven energy-efficient and highly redundant power distribution system for electric propulsion vessels. The more complex the ship building project is, the more important it is for the yard to minimize the number of partners. It is all about mitigating project completion risks Twentyfour7. 55

56 solution [ solution ] Having just one supplier for an integrated solution ensures that components fit together and that there are no hitches in delivery, says Magnus Miemois, Vice President of Offshore at Wärtsilä. He adds that this helps the yard to convince the owner that the shipbuilding timetable is realistic and makes it easier for the owner to get financing. In the long run, a properly integrated system means low operational costs and safe operations with high redundancy and reliability for the vessel. Our work continues when the ship leaves the yard. We are there to provide maintenance, service and support. It will go smoothly, because we know the system by heart. 20 years of experience Wärtsilä has offered complete power, propulsion and automation solutions to offshore projects for more than 20 years. Customers range from yards to offshore vessel shipowners and oil companies. Projects vary from an integral diesel electric solution for an offshore service vessel to the integration of a complex topside system for an FPSO. Our philosophy is to add value to the hardware we produce. Depending on the ship type, we help the customer to choose the right products and customize and integrate them to create the best possible solution, says Timo Granberg, General Manager of System Integration Development at Wärtsilä. There are various kinds of integration. In internal integration, we might be integrating the components of power generation and electrical distribution into a delivery package, creating a one-stop shop for the customer. In external integration we could be taking this a step further by integrating the delivery package into the ship s systems. Magnus Miemois says that Wärtsilä is ready to do more. We can provide support from initial ship design throughout the entire lifecycle. Our customers run demanding operations with high demands on reliability and safe operations. Many find the best way to ensure reliability is a long-term maintenance agreement, and we are experiencing a clear upwards trend in agreements. epc for a high-end floater A fine example of holistic cooperation is the new P-63 FPSO, Floating Production, Storage and Offloading vessel. It will produce oil on Brazil s new Papa Terra Oilfield from mid The oilfield is in the southern Campos Basin, located some 110 kilometres from the bustling city Rio de Janeiro and Sugarloaf Mountain. The P-63 FPSO is an EPC project, meaning that Wärtsilä is responsible for engineering, procurement and constructing 56 Twentyfour

57 solution A COMPLEX PROJECT MEANS GREAT RISK, UNLESS A SINGLE SUPPLIER INTEGRATES ALL SYSTEM PARTS. The Viking Prince, owned by Eidesvik Offshore and designed by Wärtsilä Twentyfour7. 57

58 solution Magnus Miemois: EPC (Engineering, Procurement, Construction) is the key to cutting newbuild risks. Wärtsilä is entering new system integration markets as Chinese yards start working on complex offshore projects. three topside power modules for the project. A Chinese yard is a sub-supplier. The customer, Brazilian industrial group QUIP, has agreed to lease the vessel to Petrobras. We are supplying a fuel-flexible power module solution totalling 100 MW that is engineered and fabricated by us. The innovative solution will run on gas and crude oil, straight from the well with minimum processing. This will create a substantial reduction in operating costs. At the same time it is estimated that it will reduce the levels of carbon dioxide emissions by 93,000 tons per year compared to conventional techniques, says Magnus Miemois. He regards the EPC model as a great way to mitigate the completion risks in a complex high-end offshore project. QUIP sees Wärtsilä as a strategic partner, which can also provide on-going operational support. Wärtsilä takes care of commissioning, start-up and operational supervision of the vessel. Miguelangelo Thomé, CEO of QUIP, notes that for a project of this importance, it is essential that our strategic partners have not only the technology needed, but also field proven experience and support capabilities required for reliable longterm success. Chinese yards on the rise Currently Wärtsilä is entering new markets in system integration as shipyards in China start working on challenging offshore projects. These are similar to the above examples; the integration of a complex system for a drilling rig or FPSO, or integrating a diesel electric solution for an offshore service vessel. International owners are increasingly interested in Chinese shipyards, because of their attractive newbuilding prices and easily available finance from Chinese banks. Also the China domestic oil and gas market is growing very fast. This is seen as an opportunity in Wärtsilä. Yards and owners involved in offshore projects prefer to partner with Wärtsilä because of its knowhow and references. Our customers usually ask if our project managers have Project Management Professional (PMP) credentials. We can answer yes, because our personnel have had this training for many years, explains Miemois. Wärtsilä is also strengthening its personnel skills with various partnerships and acquisitions. It has partnered globally with Emerson Process Management since Wärtsilä s power generation, power distribution and vessel automation systems have been combined with Emerson s process automation knowledge. The recent acquisition of Hamworthy strengthens Wärtsilä s system integration capabilities, particularly in the oil and gas sector. 58 Twentyfour

59 INTEGRATED SCRUBBING FOR ON-BOARD EXHAUST page STEPPING INTO ALASKA The Railbelt turns to Wärtsilä for baseload. 62 COMEBACK FOR GAS- DIESEL TECHNOLOGY Flare gas and oil prices drive demand for GD. 65 GOING OFFSHORE BRAZIL Wärtsilä engines will propel Petrobras new pipelayers. 67 LOW EMISSIONS FROM HIGHER SULPHUR FUEL With the right technology, ECAs don t rule out HFO. in detail

60 energy Stepping into AlASkA In March ThIs year, Matanuska Electric Association awarded a contract to Wärtsilä for a new 171 MW power plant. It is Matanuska s first power plant and a pioneering move for the company. For Wärtsilä it is a big step into Alaska. T e X T: j u n i o r i s l e s P h oto s : W ä r t s i l ä instead of BuYinG PoWer For MeMBers, The cooperative WILL generate IT. Palmer, a small town 70 km northeast of Anchorage in Alaska, is showing the pioneering spirit of George W. Palmer, the entrepreneur after which it is named. Matanuska Electric Association (MEA) recently departed from its conventional practice of purchasing power for its clients in Alaska s Railbelt. Instead, this cooperative utility with its headquarters in Palmer took the decision to build its own power plant as a way of reducing the cost of the electricity it supplies. In March this year it awarded a multi-million dollar contract to Wärtsilä to supply the engineering, generating equipment and specified auxiliary equipment for a new power plant. The plant will supply electricity to Palmer and the rest of MEA s growing member area to more than 100,000 households. Commenting on MEA s decision, Dennis Finn, Business Development Manager, Wärtsilä in North America, says: MEA is excited about having its own generation capabilities. It s the first fossil fuelled power plant that it has owned but they do have some operating experience. MEA buys most of its electricity from the largest utility in Alaska a company called Chugach Electric. MEA s general manager was previously general manager for Chugach and has a significant amount of experience in operating power plants. not the typical installation The plant will serve the Railbelt grid, which extends from Fairbanks to Anchorage and the Kenai Peninsula. There are four or five other plants that feed power into the grid but MEA s plant will be the largest so it will have to produce precisely the amount of electricity needed at any instant in order to maintain grid voltage and frequency stability. Interestingly, the plant will not be the typical Wärtsilä North American installation in that it will not be a wind firming peaking plant for load following. It is expected to run as a baseload plant, operating for 8760 hours per year. The plant is not expected to operate at full load, however, but at an average load factor of about 60 percent. It is expected to operate at a load factor anywhere between 60 and 95 percent. How much they operate above 60 percent depends on how much power they can sell from the plant. They expect to sell quite a bit to non-member electric power purchasers, says Finn. The plant load will vary more according to season than time of day peaks. Heating needs in winter will see a much higher load in winter than the summer. After considering different technology proposals, which included gas turbine-based projects, MEA s consulting engineers decided that reciprocating engines offered the best solution. One or two gas turbines are not ideal for handling the extreme load variations 145 MW loads in the winter, to as low as 50 MW in the summer at night. Having multiple reciprocating engines offers higher reliability. Also, in going from 145 MW to 50 MW a gas turbine based plant would take a tremendous hit on heat rates. With a multiple-engine installation, you can keep a high heat rate by matching the number of operating engines to the actual load demand. DeSigneD for the conditions The plant will have a gross power output of 171 MW delivered by ten Wärtsilä 50DF dual-fuel generating 60 Twentyfour

61 in detail sets that will operate primarily on natural gas. However, in case of interruption to the gas supply, the dual-fuel technology allows the engines to switch smoothly during operation to an alternative fuel, in this case light fuel oil. There will be sufficient light fuel oil (LFO) on site to operate the plant for 96 hours if necessary. Seamless fuel switching is a feature that was important to MEA. As MEA s General Manager, Joe Griffith explains: In the event of a natural disaster, such as an earthquake, these engines can switch fuels without a hiccup, and that was a huge consideration in our decision to go with Wärtsilä. We are moving towards becoming a vertically-integrated co-op providing electricity generation from our Wärtsilä engines, and upgrading our transmission system for a reliable delivery to our members. Ambient temperature was another key consideration in the plant design. Although mild by Alaskan standards, temperatures in Palmer can still plummet to as a low as -40ºC. Wärtsilä has therefore designed the plant so that the charge air for the engines is taken from inside the engine hall as opposed to from outside, as is standard practice. The 10 engines are arranged in two groups a group of four and a group of six inside a single engine hall. The natural gas used to power the engines will initially come from gas wells in Cook Inlet, the ocean inlet that connects Anchorage with the Gulf of Alaska. In future gas may also come from the North Slope area. Clean solution An important factor in the award of this contract was that the Wärtsilä generating sets meet the State of Alaska air quality permits specific to this project. Meeting the low emission levels required by the permit will require the use of selective catalytic reduction (SCR) to reduce NO x. Here, an aqueous ammonia solution is sprayed in front of the SCR catalyst to control NO x to a very low level. The ammonia injection system is in fact a two-stage system since LFO needs a much larger amount of reagent than natural gas does. The process is similar to the catalytic converter in most cars equipped with an SCR. An oxidation catalyst is also used to control carbon monoxide and volatile organic compounds that include any hazardous constituents (principally formaldehydes). Exhaust gas from the engines will pass through both of these exhaust gas cleaning systems, whether the engines are running on gas or LFO. Faith in Wärtsilä Wärtsilä is contracted to have all engines placed on their foundations no later than 31 October 2013 and the plant is committed to commercial operation by the end of When it begins operation, the project will be a significant addition to Wärtsilä s global project port folio. As Finn notes: It s our first large plant in Alaska which is one of the few places in North America that is experiencing growth in electrical load. He also points out that the order demonstrates the customer s faith in Wärtsilä s technology. It confirms that a major client is willing to risk the future of his entire Association on Wärtsilä equipment in this remote area. This client is one that takes its time to evaluate its needs and technologies available to meet its needs. MEA may be new to the generation game and a new customer for Wärtsilä but so far the experience has been a good one and bodes well for the future. MEA also has staff with a number of years of experience in designing, building and operating generation facilities in Alaska. In Finn s view: MEA have emphasised on many occasions that they will be proud for Wärtsilä to use this plant as a showcase for people to come and visit. All in all, they have been a very nice group of people to work with. [Above] The ten engines are arranged in groups of four and six in a single engine hall Twentyfour7. 61

62 energy from stepchild to flexible favourite MarkeT conditions and technological advances are bringing Wärtsilä s 25-year-old gas-diesel (GD) engine technology to the fore. GD prime-mover solutions are finding increasing favour in an environmentally-conscious world where operators require fuel flexibility. T e X T: j u n i o r i s l e s P h oto s : W ä r t s i l ä Wärtsilä launched its GD technology in Initially designed for use on offshore drilling rigs, the technology offered an ideal solution - installations of this type primarily run on liquid fuel but their remoteness means they must have the ability to burn alternative fuels in the event of problems with the primary fuel supply. As GD engines could utilise flare gas in the absence of fuel oil, engineers began considering other potential applications such as electrical power generation in oil and gas fields, and in refineries. But only in the last few years have market conditions changed sufficiently to drive increases in demand for GD engines and trigger a new focus on developing the technology further. market conditions favour development Although it was conceived some time ago, GD technology was a kind of stepchild for Wärtsilä in the early days, says Sergey Cheprasov, Project Manager, Wärtsilä in North America. Technical challenges, the low cost of crude oil, and the relative absence of environmental regulations meant that developing the technology was not a prime focus for us. But the situation changed, and technological development moved centre stage in Currently, there are two main drivers behind the increased demand for GD-based solutions. Firstly, the need to cut global levels of emissions has highlighted the practice of flaring associated gas, a byproduct of oil exploration and production. Using gas that would have otherwise been flared off to generate electrical power can make a significant contribution to reducing greenhouse gas emissions while also improving an installation s economics. Secondly, the increasing price of crude oil and the exhaust emissions which result from using liquid fossil fuels are pushing operators to convert existing light fuel oil (LFO) and heavy fuel oil (HFO) installations to run on natural gas. avoiding the need to flare associated gas During oil production, crude oil, water, and associated gas are brought to the surface and then separated in processing facilities. Associated gas differs from natural gas - its composition changes when the volumes of oil extracted from an oilfield are increased or reduced, and also over time, as oilfields age. The performance of gas engines which do not feature GD technology is affected by changes in gas composition and quality. Associated gas would require extensive treatment to make it suitable for use in non- GD lean-burn gas engines. This lack of consistency means that such gas is usually discarded or flared. Every year, gas with a potential value of billions of dollars as an energy source is flared at oilfields all over the world. As a response to this problem, the World Bank and its partners launched an initiative called the Global Gas Flaring Reduction Partnership (GGFR) in 2002 to support efforts by oil-producing companies and countries to increase the use of associated gas and thus reduce the quantities being flared and vented. According to the GGFR s estimation, around 140 billion cubic metres of gas is currently being flared annually, an amount equivalent to 25% of US natural gas consumption or 30% of gas consumption in the EU. The 35 billion cubic metres of gas flared off each year in African locations is equivalent to half the continent s total energy consumption. helping to reduce co 2 emissions Flare gas contains substances which have high calorific value, says Cheprasov. The idea is to expand use of this cheap and available source of energy and also reduce the overall level of emissions by avoiding the need to burn liquid fuels. In addition to allowing this source of cheap energy to go to waste, the GGFR estimates that flaring adds some 400 million tons of CO2 to annual global emissions. Estimates indicate that the amounts of associated gas currently flared in Latin America could be used to generate approximately 8 GW of electrical power and reduce annual emissions of CO2 by 33 million tons. Power generation installations 62 Twentyfour

63 in detail [Above] To cut flaring at Eden Yuturi, power plant engines were converted to use gas. running on flare gas are indeed gaining popularity in the Latin American market - Wärtsilä GD engines running on associated gas are now operating in Brazil and Ecuador. The most-recent installation in Latin America was a project initiated by Petroamazonas EP (PAM EP), a national oil exploration and production company in Ecuador. To reduce the amounts of gas flared at its Eden Yuturi site, PAM EP entered into an agreement with Wärtsilä for a conversion that would allow the site s power plant to utilise associated gas as fuel. Four Wärtsilä Vasa 32GDLN low-no x engines generating MW were converted. Instead of consuming some 160 barrels of crude oil a day, each engine now burns approximately 28,000 cubic metres (about a million cubic feet) of flare gas optimised for power generation. On an annual basis, the consumption of crude oil by all four engines is expected to be reduced by more than 800,000 barrels. The project was nominated for World Finance magazine s Carbon Market Awards last year in the Best Carbon Market Efficiency Pioneer - South America category. Fuel Flexibility as standard The wide range of fuels that can be used by Wärtsilä s GD engines including crude oil, liquid fuel oil and flare gas provides operators with fuel flexibility. GD engine technology also offers another important advantage as power output and efficiency levels are maintained even if the composition of the liquid fuel or gas varies. Flare gas consists primarily of methane, but also includes a high proportion of higher hydrocarbons such as ethane, propane and butane. The high levels of higher hydrocarbons means that the power output of non-gd lean-burn gas engines has to be reduced to avoid knocking during the combustion process - the rapid release of heat when this occurs can damage the engine structure. But lower power outputs also mean reduced levels of fuel efficiency. GD engines are designed to run on fuel oil (crude oil mode), gaseous fuel (gas mode), or a combination of fuel oil and gaseous fuel (fuel-sharing mode). As a diesel combustion cycle is employed for both gas and liquid fuel operation, wide variations in gas quality can be tolerated. When operating on gas, a pilot-fuel oil injection equivalent to approximately 3% of the fullload fuel energy is used for ignition. Fuel-sharing technology A recent Wärtsilä development in GD technology known as fuel sharing allows engines to run on a combination of gas and liquid fuels in variable ratios. Incorporating a new control system and control principle, the fuel-sharing system is primarily targeted at meeting the needs of operators in oil field installations and related processing facilities. Fuel sharing mode avoids the risk of knocking and allows electrical CHANGING MARKET CONDITIONS SPUR NEW DEVELOPMENT OF A MATURE TECHNOLOGY Twentyfour7. 63

64 energy [Above] Eden Yuturi site before conversion. engines THAT CAn USe gas Or LIQUID FUeLS GIVE THEIR OPERATORS FUTURE FLEXIBILITY. energy to be generated at high levels of efficiency without any derating of engine output. The gas is first compressed to a pressure of 350 bar and injected into the combustion chamber via a special combined diesel-gas injection valve. To ensure stable ignition, a minimum of some 5% diesel oil is used. As the gas fuel is injected directly into the combustion chamber and not mixed with air before compression, knocking cannot occur. GD engines operating in fuel-sharing mode offer the high levels of efficiency and reliability associated with diesel engines running on liquid fuels. Avoiding fuel lock-in Engines able to operate on both gas and liquid fuels offer significant benefits in situations where gas supplies are uncertain or using liquid fuels such as LFO or HFO rather than gas makes better economic sense. Operators have the flexibility to choose which fuels they use in accordance with their business strategies and fuel availability. In markets where there is uncertainty about when reliable gas supplies will become available, power generation companies can now select technology which does not lock them into using a specific fuel in the future. Bangladesh, for example, has ample resources of natural gas and most of its power plants currently use it as fuel. On the other hand, a lack of production and distribution capacity means that natural gas cannot be relied on to meet the country s current and quickly developing residential, industrial and power-generation needs. In June 2010, Wärtsilä signed six contracts with different customers to supply equipment and engineering for baseload power plants with a total generating capacity of 550 MW. Four more orders which will add more than 300 MW of generating capacity to the national grid followed in July and August of the same year. Of these 10 projects, nine employ GD engines and will be run on HFO until reliable gas supplies are available. One plant will continue to run on HFO. Three additional Wärtsilä GD-ready power plants were also delivered in 2011 as part of the Bangladesh government s plan for dealing with severe power shortages. An uncomplicated conversion process Although installing GD engines with the expectation that they will be converted to run on gas requires a higher initial investment than installing traditional diesel technology, doing so can make good business sense. It reduces the risk that installed generation capacity will become unavailable, says Cheprasov. If there s a problem with diesel supplies, gas can be used and vice versa. In an oil or gas field, owners can also make stepwise investments - when the drilling stage begins, traditional diesel engines which have been pre-converted for GD operation can be used. As soon as associated gas becomes available, conversion work on the engines can be completed so they are able to run on both gas and liquid fuel. Even though the payback times depend to some extent on the oil that is being substituted for, they can be extremely short. Conversion of a standard diesel engine involves replacing the cylinder head, fuel injectors and engine control system and can be carried out in just 4-5 weeks. Outside the engine room, a gas compressor and highpressure piping deliver gas to the engine. A valve-skid is also required to regulate the pressure and volume of the gas delivered. A bright future beckons With a number of major projects already completed, Wärtsilä expects that more GD engines will come on line in the next two years or so. South America is an important market, says Jyrki Anturaniemi, Wärtsilä Project Proposal Manager for GD technology. In addition to Brazil, Ecuador and Venezuela, Peru is moving up the list slowly but steadily. Russia will also be an important future market. Opportunities may also arise as the amounts of shale gas produced in the USA grows. With such a large potential market, the future of this former stepchild technology looks bright. Customer feedback on installations has been positive. The strongest vote of confidence probably came from our customer in Ecuador, says Cheprasov. They decided to replace their spark-ignited gas engines with Wärtsilä GD solutions. Our technology is not only effective, it also meets their need to deliver more power than was possible with the existing engine configuration. 64 Twentyfour

65 in detail GoinG offshore Brazil THE EMERALd-gREEn WATERS of the Atlantic Ocean are hiding huge oil reserves off the coast of Brazil. Transporting this oil to refineries requires pipelines laid on the seabed. Wärtsilä has won orders to supply propulsion solutions for a total of six pipelaying vessels. T E X T: M A R J AT TA P I E T I L Ä P H OTO : I H C M E R W E D E W Ä R T S I L Ä The discovery of offshore reserves made by Brazilian geologists in 2007 was the biggest in the Americas for 30 years. The resulting 62% increase in Brazil s crude oil reserves is expected to be the country s ticket to additional wealth. In 1980, Brazil s economy was the world s 16th-largest, it now ranks sixth. Petrobras, Brazil s state-owned oil and gas giant currently produces approximately 2.7 million barrels of oil each day. By 2020, output is expected to have increased to 6.4 million barrels a day, an amount equivalent to current daily production in Angola, Nigeria and Venezuela combined. Accessing black gold does, however, require vast investments in oil drilling facilities, floating production and platform installations, pumping equipment, pipelines, vessels, installation and support services. To create jobs, Brazil s government is attempting to direct investments to Brazilian manufacturers and service providers, but local sources of supply are not yet able to fully match demand and competing with the prices offered by foreign shipyards is hard - price differences of some 20% are hard to beat. no shortage of competitors in shipbuilding Competition for vessel construction contracts in Brazil s offshore sector is extremely tough. In February 2011, when Petrobras launched the tendering process for six pipelaying vessels to build pipelines from oil drilling rigs to refineries on the mainland, offers for several different vessel designs were received from 12 companies and involved eight shipyards - a multiplicity of alternatives. The three winners of the tender process were the Malaysian company SapuraCrest Petroleum Bhd (now SapuraKencana Petroleum Bhd), London-based Subsea7, experts in the design, fabrication, installation and commissioning of seabed-to-surface projects, and Technip and Odebrecht Oleo & Gas (OOG), an energy-industry joint venture based in France. SapuraKencana has commissioned the design, engineering and construction of two 550t pipelaying vessels (tension capacity 550 tonnes) and one 300t pipelaying vessel (tension capacity 300 tonnes) with IHC Merwede B.V., a Dutch company. Based in The Netherlands, IHC Merwede B.V is a global operator providing custom-built vessels and related supplies for the offshore sector. The 146-metre 550t vessels are being constructed at IHC Merwede s yard in Krimpen aan den Ijssel in The Netherlands. The 134-metre 300t vessel will be built by OSX Construção Naval S.A. Brazil. For each of the 550t vessels, Wärtsilä will be supplying six SIX PIPELAYERS COMMISSIONED FROM THREE SOURCES, BUT WÄRTSILÄ WILL PROPEL THEM ALL Twentyfour7. 65

66 MARINE OFFSHORE OIL RESERVES ARE DRIVING THE BRAZILIAN ECONOMY TO NEW HEIGHTS 8-cylinder in-line Wärtsilä 32 engines, three modular thrusters, two retractable thrusters and two tunnel thrusters. For the 300t vessel, Wärtsilä will be supplying two 8-cylinder and two 7-cylinder inline Wärtsilä 32 engines, three compact thrusters for primary propulsion, one retractable thruster and two tunnel thrusters. Wärtsilä 32 engines employ the latest developments in fuel-combustion technology and are well known for the high levels of efficiency they achieve, their uncomplicated maintenance routines and long maintenance intervals. They also are fully compliant with the IMO Tier II emissions regulations (Annex VI of the MARPOL 73/78 convention). Optimum levels Of fuel consumption For the 550t vessel being designed and constructed by IHC Merwede for Subsea7, Wärtsilä is to supply a propulsion technology package similar to the one for SapuraKencara, including six 8-cylinder inline Wärtsilä 32 engines, three modular thrusters, two retractable thrusters and two tunnel thrusters. Designed by Wärtsilä, the two identical VS 4146 PLV pipelaying vessels for the Technip/OOG joint venture will be built at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea. The contract represents a major breakthrough for Wärtsilä Ship Design in Brazil. Designed to achieve optimal levels of fuel consumption, the 146-metre vessels will have a tension capacity of 550 tonnes and enable efficient and flexible pipelaying operations. For each vessel, Wärtsilä will be supplying three modular thrusters, two retractable thrusters and two tunnel thrusters. Both vessels will be operating on a long-term charter for Petrobras in Brazilian waters. Their primary function will be installing the flexible flow lines and risers that connect floating production units to sub-sea wells located at depths of as much as 2500 metres. HigH-quality, reliable products and a local presence It was a great honour for Wärtsilä to be chosen as the propulsion technology supplier for all six of these vessel projects, says Jeroen van Keep, Business Sales Manager, Offshore, Wärtsilä Netherlands. We believe that Wärtsilä was selected because of our close cooperation with shipyards, because our products are reliable, and because we offer life-long maintenance and a local presence. In the conditions where vessels like this operate, having dependable technology is extremely important. During pipelaying operations, engine loads have to be kept high at all times to ensure the pipe is kept in the correct position. Any loss of power means loss of the pipe, says van Keep. Wärtsilä generating sets are also widely used on diving support vessels, where divers lives depend on an uninterrupted power supply being available to keep diving chambers pressurised. delivering total packages Levels of equipment reliability also have a great effect on the profitability of customer projects, says Dick Heidelberg, Account Manager, Wärtsilä Ship Power. Operators are paid on a daily basis and time is money. If a thruster fails, the vessel affected usually has to sail to a dry dock for repairs. The number of dry docks in Brazil is limited, and the nearest alternatives are located in Africa. At Wärtsilä s suggestion, all the 550t pipelaying vessels which will be working for Petrobras are being equipped with Wärtsilä Underwater Mountable Thrusters. As this design allows a thruster to be changed at sea, this guarantees unbroken vessel availability, says Heidelberg. It s a good example of how Wärtsilä takes responsibility for each customer s ability to perform. We manufacture the tools, then help our customers operate and maintain them, ensuring they will be available when required. Wärtsilä technology has recently been installed on the P63 FPSO (floating production, storage and offloading unit) (2010) and a number of offshore supply vessels (2011). As the demand for drillships, pipelaying vessels, offshore supply vessels and FPSOs in Brazil s offshore sector is steadily growing, the future outlook for Wärtsilä is very positive, says van Keep. The total packages we deliver include ship design, propulsion solutions - both main engines and thrusters, onboard power generation and automation solutions. We also offer Operations and Maintenance (O&M) services 66 Twentyfour

67 in detail LOw emissions FrOM higher sulphur FueL T E X T: M A R J AT TA P I E T I L Ä p h oto s : W Ä R T S I L Ä Wärtsilä has developed a marine version of an integrated solution which allows the levels of SO x emissions from all a vessel s combustion units to be reduced, an application with a strong track record in land-based power plants. Algoma Central Corporation, a Canadian shipowner, has selected Wärtsilä s propulsion and SO x-reduction technology. Algoma Central owns and operates Canada s largest domestic fleet on the environmentally-sensitive Great Lakes Waterway and St Lawrence Seaway - 19 selfloading bulk carriers, five gearless bulk carriers and seven product tankers. In addition to its inland transportation operations, the company also has oceangoing dry-bulk and product tanker vessels operating in international markets. Companies who operate vessels on the world s largest freshwater system are required to meet high standards of environmental performance. To guarantee this, and to raise levels of cost-efficiency, Algoma Central has an active programme of investing in new vessels. Two years ago, an order was placed with Deltamarin, a Finnish consulting, ship design and marine engineering company, for a series of six Equinox Class bulk carriers and an option for a further two to be built at the Nantong Mingde Heavy Industrial Stock Company shipyard in China. The first two vessels will be delivered in Q and the remainder in the following 12 months. Operating costs under pressure The new vessel design takes full account of the transportation needs, operational conditions and environmental demands which apply on the Great Lakes Waterway and in the St Lawrence Seaway. The overall length is m, they have a beam of m and a deadweight of approximately 38,000 metric tonnes at scantling draught. With a service speed of 14 knots, each vessel will have five holds able to accommodate cargo with a total volume of 39,000 cubic metres. Wärtsilä s scope of supply for each vessel includes one 5-cylinder Wärtsilä RT-flex50 version D main engine, three 6-cylinder Auxpac 20 generating sets, a controllable-pitch propeller and shaft line, tunnel thrusters, oily water separators and Wärtsilä s integrated Closed Loop Scrubber (CLS) solution. Wärtsilä s SO x reducer systems are designed to reduce levels of SO x (sulphur oxide) emissions, says Göran Österdahl, Sales Director, Wärtsilä Ship Power. According to the IMO regulations which come into force on 1 January 2015, fuels used in vessels operating in ECAs (Emission Control Areas) in Europe and North America cannot contain more than 0.1% of sulphur. For vessels designed to run on heavy fuel oil (HFO), this means a significant increase in operating costs as they will have to run on marine gas oil (MGO). However, by fitting an abatement system, and thereby limit the emissions, the vessels may continue to burn low-cost HFO. cooperation with MetsO HFO currently costs about USD 600 dollars per ton, while MGO is priced in the range USD dollars per ton. For many operators, the additional cost burden is considered unacceptable. Wärtsilä has a complete range of SO x abatement technologies and offers AN INTEGRATED ClosED loop scrubber To LET VESSELS USE HEAVY FUEL OIL IN EMISSION CONTROL AREAS Twentyfour7. 67

68 MARINE three types of SO x reducing systems, Closed Loop, Open Loop and Hybrid Systems. These systems allow the requirements in the regulations to be met with a modest outlay and are suitable for all types of engines and vessels, in both newbuildings and as a retrofit installation. As it reduces particulate emissions by 30-60%, scrubbers offer shipowners and operators a complete emissions-control package when combined with a NO x-reduction solution. Wärtsilä s CLS technology uses fresh water and is based on a closed-loop, wetsump and packed-bed design. Manufactured using stainless steel, the design was developed in cooperation with Metso, a Finland-based global provider of technology and services for the process industries. A single scrubber for All combustion units In conventional solutions, exhaust scrubbers serve just one engine, says Österdahl. Wärtsilä s integrated configuration includes suction fans which combine the exhaust gases from multiple main and auxiliary engines before they are pumped to the scrubber unit. In practical terms, this means that a single scrubber installation can remove SO x from the exhaust gases produced by all the combustion engines on board, including oil-fired boilers. As each branch in the suction system has shutoff valves which allow individual exhaust and flue pipes to be isolated, operational flexibility is maintained. In the scrubber unit, sulphur oxides in exhaust gases are neutralised by being forced into contact with the scrubbing solution, which consists of caustic soda (NaOH) dissolved in technical water produced on board or bunkered in port. Caustic soda increases levels of alkalinity and scrubber efficiency and is widely used in corresponding land-based applications. The contaminants extracted from exhaust gases - primarily hydrocarbons, ash and metal compounds - are stored in the vessel s sludge tank and unloaded at appropriate onshore reception facilities. As the CLS is a closed-loop system, the scrubbing solution does not leave the process. The amounts of fresh water that have to be added depend on levels of evaporation and any discharges made. first certified marine scrubber solution The removal efficiency of the Wärtsilä SO x Reducer concepts exceed 97%, making it possible to operate with 3.5% sulphur fuel and still comply with the 0.1% limit on fuel sulphur content. It is available for engines with outputs in the range of MW. Wärtsilä is the first manufacturer to be awarded a marine scrubber certificate by the Det Norske Veritas, Germanischer Lloyd and Bureau Veritas classification societies. The first CLS retrofit installation was carried out in August last year on Containerships VII, a vessel owned by the Finnish company Containerships Ltd. Containerships VII is equipped with a 7-cylinder in-line Wärtsilä 64 engine and operates in the Baltic Sea and North Sea. levels of demand expected to increase In addition to complying with environmental regulations and increasing fuel costs, Algoma Central places a strong focus on reducing costs associated with equipment maintenance. Among the reasons for Wärtsilä s selection by Algoma as a supplier was the company s ability to provide both an integrated solution and global service support - the CLS commissioning phase includes an orientation session for system operators. For Wärtsilä, the contract with Algoma Central strengthens our position as a major global supplier of scrubber and other exhaust-gas-cleaning technologies for marine applications, says Österdahl. The demand for solutions of this type is also expected to increase in Wärtsilä s domestic markets, as regulations regarding reduced levels of SO x emissions will soon apply in the Baltic Sea. [Below] Ships can burn 3.5% sulphur fuel and still comply with the 0.1% limit on fuel sulphur content. 68 Twentyfour

69 Wärtsilä Stakeholder Magazine* Antarctica At the south of the world is the coldest, windiest and most mountainous continent, almost entirely covered by ice. If it all melted, sea levels would rise about 60 metres. *Sign off [sign off] at your service classic culture watch wärtsilä story little engineer 69

70 sign off [ at your service ] A juggling act T e x T: l e n a b a r n e r - r a s m u s s e n P h oto : P h i l i P G o s T e lo w / v e l h ot P h oto G r a P h y Juha Nurmi, based in Shanghai, needs to juggle a lot of things simultaneously. As site manager for supplying three main power modules for a new P-63 Floating Production Storage and Offloading (FPSO) vessel to Brazil, he s the guy his team and the customer turn to for guidance and answers. It is a vast, complicated project that entails engineering, procurement and construction. In other words, Wärtsilä has the total responsibility for delivering complete, tested modules to the customer s FPSO platform, including a comprehensive high-end power management system. Oil production on Brazil s new Papa Terra oilfield will begin in For a self-motivated person like Nurmi, the P-63 has everything he looks for in an interesting project: multinational teams, lots of challenges, frequent decisionmaking and clear goals to work towards. 1. What are the biggest challenges in the project? One big one is to link the construction schedule for the power modules with the construction of the whole FPSO platform in the same yard in China. Our team members are scattered in different locations handling the different phases of the project. Managing all these teams has not been an easy job. 2. In this type of project you need close how can you be sure you are giving the customer the best possible service? communication with the key stakeholders on the customer s side, because short-term targets may change frequently. You also have to be flexible so that the project plan can be changed when the customer s needs change. 3. What motivates you? I like challenging tasks and clear goals. Wärtsilä has given me free hands when it comes to decisionmaking and directing the team s activities, and I find that very motivating. I also get satisfaction from accomplishing goals and achieving the recognition that comes with it. Good service means adapting to the customer s changing short-term targets. 70 Twentyfour

71 [ classic ] sign off There are 72 metal leaves, twelve circular rows of six blades each Currently available in four sizes and three colours: copper, stainless steel and white The Shining Whatever the angle it is viewed from, the light source is hidden Original Artichokes were designed for copenhagen restaurant langelinie pavilion, where they still hang All things bright and beautiful Origin A Danish home interior masterpiece, the PH Artichoke Lamp, was designed in 1958 by poul henningsen, known as the world s first lighting architect. It was a 360-degree glare-free luminaire made of diecut copper or laser-cut stainless steel leaves and remains a design icon for its unique reflected illumination and visually stunning aesthetics. Shine on Techs & specs production present Original weight Max. 25 kg Original price ,764 Assembly Louis Poulsen Collection, Denmark Designer Poul Henningsen T e x T: D A n r I D e r [ science ] [ literature ] [ technology] [ culture watch ] South Africa and Australasia will host the Square Kilometre Array, a 1.5bn multination megaproject that will focus on the major outstanding questions in astronomy. With thousands of antennas spread across two continents, the radio telescope will have a combined collecting area of about 200 football pitches. From 2025: dark energy, pulsars, alien intelligent life and Einstein s theory of gravity will be in the spotlight. Robert Atkinson s Innovation Economics: The Race for Global Advantage focuses on nations with innovationbased economies. This detailed road map towards 2020 reports on the new forces shaping the global economy and countries like the US who are in danger of falling behind. With IT and sustainable globalization at its heart, this tome is a critical wake up call for those in the race to the future. Frustrated at slow Wi-Fi speeds? Boffins from the Tokyo Institute of Technology have set a new record for wireless data transmission, some 20 times higher than current Wi-Fi connections, between the microwave and far-infrared part of the spectrum. 3 Gbps at frequencies up to 542 GHz have been recorded and terahertz range and 100 Gbps are regarded as possible in the near future. Be careful with those monthly data caps Photo: SKA Organisation/TDP/DRAO/Swinburne Astronomy Productions Twentyfour

72 sign off [ Ambition ] Filling in the Map T e x T: M i n n a Ta k k u n e n I l l u s T r at I o n : i l j a k a r s i k a s With his top skills in communication, John Cederlöf has opened vital markets for the Wärtsilä we know today. He has made brave, sometimes even burning, sacrifices along the way. In the eighties, South America didn t appear on the calendars handed out to Wärtsilä employees. But that didn t stop new business developments on the contrary. An unoccupied area on the map stimulated the idea of where to go next. And when the area is large, a fisherman needs to cast his nets in several places, says John Cederlöf, who has opened up new territories in the world of Wärtsilä today. Miracles in the Making Even before Cederlöf put South America on the map for Wärtsilä, he had started on the road of making contacts and acting upon them. The grim outlook in the export sector in the eighties impelled the Vaasa office of Wärtsilä to seek new business. We came up with the idea of renewing old machinery in ships, particularly their propulsion systems. This original insight into new market potential created a small miracle in the industry. Every week, a company representative travelled around Scandinavia to meet potential clients. With no competitors on sight, a meticulous plan of action began to take shape. Its tailored solutions would put Wärtsilä on the global map. The sturdy Turso: a restored national treasure next stop south america revisits her second home. I have learned that you must never go to a negotiation without a well-prepared agenda. Finding new business in South America was easier said than done. I realised that a general introduction alone wouldn t do. We needed sharp arguments. Pictures of icebreakers working their way through pack ice ridges seized the attention of a major shipyard based in Rio. But Cederlöf knew that Brazilians saw Finland s marine industry as a whole. So he invited the client to Finland and put together a week s worth of programme, including other significant players in the field. Soon, more and more of these visits were taking place. The challenger was starting to grow in size. sparks flying Cederlöf was new to this field but no stranger to intensity and commitment. In the 60s, we could have seen a younger version of him working in Helsinki shipyard. In a cloud of heavy smoke he is holding a gas welding and cutting burner. The launch of the M/S Floria depends on him. It is a hot summer s day. The Floria is a passenger ferry built in the thriving market of Her hull is secured to the greased slipway with steel flat bars. Now they need to be cut, in time for the 12 o clock launch ceremony. Releasing the metal stays is a one-man-job, and an unpleasant one at that, done in the confined space below the hull. But someone has to do it, and a supple and thin youngster like Cederlöf, 18 at the time and studying to be a naval architect, fills the bill. To make the launch go smoothly, the wooden slipway blocks had been covered with thick grease, and while I was doing the welding, the grease caught fire, Cederlöf recalls. He stopped work with the cutting torch and climbed out, but there was no alternative. He had to go back. He sweated through the job, finishing it while firemen put out the flames. Hearing the cheers from the team helped. And I ll never forget the gratitude in their eyes. It was an experience that defined his career. I grasped the reality of life, and embraced the team spirit. Certain sacrifices are investments. 72 Twentyfour

73 Text: minna takkunen illustration: ville tietäväinen sign off Persistence has paid off in other demanding situations too, such as when he travelled to Croatia although its airspace was closed during the Kosovo crisis. It was an expression of Wärtsilä dependability under extreme circumstances. Cederlöf has more anecdotes from his early career as a certified welder, stories that have helped to defuse tough moments in business negotiations. Last year he received an award for Best Communicator in Wärtsilä. Young colleagues appreciate his skills. ColleCt, evaluate, predict He has distilled his most important business experiences into three words: collect, evaluate, predict. Collecting is the most valuable of these. It entails getting out to the field and finding out everything possible about the client, even including who his dentist is! After that comes market intelligence. You must never go back to the field without analysing what you have collected. Finally, prediction is what business is all about. Anticipating future events is the competence that leads to profitability and is crucial in competition. Losing a project can also be predicted, Cederlöf points out. In pioneering new markets, he reached the epiphany that with responsibility and a slice of sacrifice becomes a certain freedom. Now he faces a new type of freedom to be explored. The retiring world conqueror reveals he is going to start writing a book. It is another project that will involve mapping new territories. Never go into negotiations without a well-planned agenda Twentyfour

74 [ travellers Gear ] sign off [ little engineer ] Using a wireless, inkless stylus to interact with the image on a flat screen display or wall projection, the Penvue Interactive Whiteboard Marker is a must for delivering professional conference presentations. With internal memory, interface controls, 12 internal accelerometers and an in-built camera, the Penvue comes in three versions. From USBFever comes the Credit Card Thin Battery, a 400mah backup battery just 7mm thick that can emergencycharge your ios devices or double as an ultra-compact sync cable. it also has a built-in Led flashlight. The age of wonder The acclaimed Logitech Ultrathin Keyboard Cover is a serious accessory for busy ipad typists on the go. This keyboard/case hybrid has an aluminium exterior and plastic keypad and mates to the ipad using magnets. One full charge is good for six months of runtime at two hours a day. it s sleek and aesthetically matched to the ipad design too. Painter, sculptor, musician, architect, inventor, anatomist, cartographer and engineer, Leonardo da Vinci ( ) was the very definition of Renaissance man. In several disciplines this polymath proved to be hundreds of years ahead of his time. Famed for his iconic paintings The Last Supper and Mona Lisa and his drawing Vitruvian Man, Leonardo nonetheless professed that pictorial art bored him and felt his greater skills lay in mechanical engineering. He produced prototype designs for a calculator, a tank, a submarine and a helicopter as well as taking a passionate interest in boats. There s no better way for our little engineers to get to grips with Leonardo s brilliance than with the educational paddleboat construction kit. The original drawings come from his epic Codex Atlanticus ( ), a twelve-volume set of 1751 drawings and annotated writings on botany, mechanics, weapons, mathematics, music and flight. In the case of the paddleboat, Leonardo envisioned a means of propulsion for ships and smaller craft that wouldn t rely on sails or oars. A pair of paddle wheels, one on either side of a boat, would provide sufficient power to travel up river or through strong winds and currents at sea. For age eight years and up, this snap it together kit requires no glue, paint or batteries, and replicates schematics drawn in about It is made of wood-like plastic and uses clockwork to propel itself forward in water, although Leonardo envisioned his life-sized version would be human-powered. Careful reading of the instructions should ensure that the various gears and sprockets are properly oriented so that the motor will drive the boat. While ostensibly a shelf-sitting conversation piece, the paddleboat should be equally happy in the water. Genius. The Da Vinci Paddle Boat kit is made by US toymaker Elenco and available from various online retailers. T e x T: d a n r i d e r 74 Twentyfour

75 sign off Marit calling Good design is an effortless experience. Who can survive the working day without a good cup of coffee? I can t, which is why I value our coffee machine at the office so highly. But when I pour the life-saving liquid into my cup, the jug always leaks, which is very frustrating. it Got me thinking that we experience bad design more than we see it. Just looking at the jug won t necessarily tell you if it works well or not. It goes the other way too. We don t always notice good design in our everyday gadgets. When designed well, they work and we don t think twice about them. All too often we take things like good design for granted. You don t properly appreciate a welldesigned jug before you experience a bad one. after all, design is not just about good looks. At the end of the day, what use is an elegant coffee machine that doesn t make good coffee? Or even worse, drips it all over the table. High-quality design needs to be functional, be it a coffee machine, a web site or the command bridge of a vessel. Money invested in good design is surprisingly often treated as a cost, but properly designed gadgets can substantially add to functionality. It is a short step from there to increased productivity. think about how much energy a well-designed working place can release for the employer? Or how much a functional command bridge can help in making a vessel easy to manage? Wärtsilä takes good design seriously, whether it s a ship s engine room or a power plant. Our industrial design team plays an important role in making sure that whatever we deliver, it looks good and works well. if we can go about our day without feelings of frustration at the coffee machine or the command bridge, we know we are surrounded by good design. This is what we strive for at Wärtsilä. Yes, we like things to look nice, but the greatest reward is that our customers can go about their business without feelings of frustration. It helps in keeping focused. Marit Holmlund-Sund Editor-in-Chief Twentyfour7. and In Detail Senior Manager, Marketing Communications & Branding Wärtsilä Corporation Twentyfour

76 PERFORMANCE OPTIMISATION FOR ENERGY MARKET JOIN WÄRTSILÄ WEBINAR ON SEPTEMBER 19 AND HEAR FROM LEADING INDUSTRY EXPERTS Energy market today and in the future, optimisation of existing plants and lifecycle solutions. Register today at and secure your participation.

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