TECHNOLOGY COMPLIANCE FOR SUSTAINABLE SHIPPING Motorways of the Sea Conference 18-19 th November 2014, Gothenburg, Sweden Tomas Aminoff, Director Technology Strategy Wärtsilä
Increasing regulations and awareness NO x SO x PARTICULATE MATTER GREENHOUSE GAS VOC Acid rains Ozone depletion Acid rains Impact on air quality Global warming Damage to local eco-systems Tier II (2011) Tier III in ECA* (2016/21) 3.5% (2012) ECA 0.1% (2015) Global 0.5% (2020/25) Along with SO x reduction Under evaluation by IMO Wärtsilä is developing a multi-solution approach to meet requirements for different owner needs, ship types and operating profiles. LNG Simultaneous reduction of GHG / SO x / NO x / PM Market: mainly ships with regular routes and limited autonomy requirements operating in ECAs Infrastructure development is needed for larger uptake Conversion solution available HFO NO x : SCR or wet methods SO x : Scrubbers Market: mostly merchant ships operating a significant time in ECAs MGO NO x : SCR or primary methods Market: ships operating a limited time in ECAs, small ships *Emissions Control Areas 2 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Regulations requiring investments from the industry Global All ships > 400 GT trading internationally 41 30 30,25% 35% Countries World GT Baltic Sea, North Sea and English Channel US (Local) All ships > 300 GT operating in US waters in force from Dec 2013 USA, Hawaii and Canada Major shipping routes Ballast Water Globally; enter into force one year after ratification USA; In extension process SO x SECA areas 0,1% sulphur by 1 st of January 2015 Globally 0,5% sulphur by 1 st of January 2020/25 Affecting vessels in different ways NO x IMO Tier II in force IMO Tier III by 1 st of January 2016 in NECA areas New and existing vessel Will cause an extensive need for ship owners to invest in existing fleet Only new buildings 3 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
A comprehensive product portfolio Automation Ballast water management Compressors Exhaust gas cleaning Engines & generating sets Gas systems Gears Inert gas Oil separation Power electric systems Propulsors Pumps & valves Seals, bearings & stern tubes Waste & fresh water management Ship design services 4 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Where to go 5 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
LNG as fuel -25% -85% Emission values [%] 100 90 80 70 60 50 CO 2 NO x SO x -99% -95% 40 30 20 10 Particulates Dual-Fuel engine in gas mode Diesel engine 0 6 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
The gas value chain an overview - Fuel gas handling for OSVs - On- & Offshore small scale liquefaction - Antiflaring - VOC - Gas reformer - Oil separation - Fuel gas handling - LPG, LEG and LNG cargo handling - Jetty and Floating regasification - Bunkering and barges - Receiving terminals - Loading stations 7 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Land based infrastructure LNG receiving terminals LNG receiving terminals in cooperation with Power Plants Gas supply for a steel work in Tornio, Finland Process design Boil-off gas compressors Blower for vapor return Re-gasification Truck and Ship bunkering loading stations Pumps & tank equipment incl. valves and instruments In addition, special purpose built small scale LNG tankers: Gas cargo handling Fuel gas handling Engines Propulsion 8 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Land based infrastructure Gas liquefaction process Mini LNG - 20k t/y Small Scale LNG - 20-500k t/y Multi Refrigerant liquefaction process Biogas liquefaction plant Oslo, Norway Our 1 st commercial biogas liquefaction plant Biogas created from household organic waste Liquid Biogas (LBG) to be used on city buses LBG production capacity 11tons/day Production started October 2013 Includes gas pre-treatment, liquefaction, storage and export Liquefaction process based improved Brayton cycle EPCIC contract with GASNOR LNG capacity 230 tons/day Contract awarded fall 2005, full production August 2007 9 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Dual-Fuel applications - Milestones PETROJARL 1 Gaz de France Energy CORAL ENERGY 2001 2004 2006 2011 2012 2013 >2013 2016 VIKING ENERGY BIT VIKING VIKING GRACE TERNTANK Wärtsilä 10 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Dual-fuel application - References LNG Carrier Multigas Carrier Ro-Ro Bulk Carrier Conversion 150 vessels 5 vessels 2 vessels 1 vessels 1 vessels Coastal Patrol DF-propulsion DF main and auxiliary engines SECA NECA (Otto Principle) Merchant ~ 650 engines Navy Offshore OSV s 31 vessels 96 engines Production 2 platform 9 FPSO s etc. 1 FSO 40 engines Others TUG 2 vessel 2 engines each Mechanical drive Guide Ship 1 vessel /engine IWW 2 vessel 3 engines Cruise & Ferry LNG Cruise ferry 1 vessels 4 engines Complete gas train LNG ferries 4 ferries 18 engines Conversion 1 ferry 2 engines Power Plants DF Power Plant 67 installations 354 engines Output 4600 MW Online since1997 6 segments >1,000 engines >10,000,000 running hours TECHNOLOGY 4-STROKE 2-STROKE DF 11 11 Wärtsilä 12/6 2014 Tomas Aminoff: Tomas Motorways Aminoff of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
New: Middle East s first LNG fuelled harbor tug Owner: Drydocks World (DDW) Country: United Arab Emirates Vessel type: 9 * 23 m long tugs Engines 2* Wärtsilä 9L20DF Thrusters: 2 * Wärtsilä WST-18 CP Gas handling: Wärtsilä LNGPac 12 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
What are the hardware alternatives SECA NECA Ballast Water Ballast Water treatment equipment SO x Scrubber LNG Distillates/LSHFO NO x SCR LNG with Otto combustion EGR Wärtsilä is developing a multi-solution approach to meet requirements for different owner needs, ship types and operating profiles. Ballast Water Treatment 250 000-1 200 000 MR Tanker - VLCC Investment per vessel Must invest No Payback Scrubber 1 000 000-5 000 000 Open/main stream - Hybrid/Integrated Investment per vessel Attractive Payback SCR 170 000-650 000 1 MW Aux eng. - 15 MW main engine Investment per engine Must invest No Payback 13 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Wärtsilä Main Scrubber Portfolio Open loop scrubber sea water operations Uses seawater i.e. no freshwater needs Slightly higher power demand than FWS Does not need caustic soda Water treatment also on open loop Applications: main alternative for ocean-going ships Closed loop scrubber fresh water/closed loop operations Independent on seawater alkalinity Zero effluent discharge an option Low power demand Needs caustic soda as a reagent Applications: seas with extremely low alkalinity and for operators looking for continues closed loop operation Hybrid scrubbers open loop / closed loop operations Flexible system More complex system Applications: ships requiring full flexibility of operations 14 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Scrubber economics Combustion unit power Combustion unit running time Annual fuel consumption in ECA Price difference between low and high sulphur fuels Gross fuel savings NET SAVINGS Additional expenses Direct costs Power consumption Sludge Water (if any) Chemicals (if any) Indirect costs Added resistance Maintenance HFO heating... Loss of income (if any) Loss of cargo space Downtime during installation 15 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
MR Tanker: An attractive retrofit solution 1,3 milj /a 1,2 milj /a As per 9.10.2014 As per avg. 2013 16 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Alternative fuels - The supplier with experience Methanol Sulfur free Bio-fuels Sulfur free Fuel specification and availability is a question mark LPG Sulfur free Heavier than air 2% of global energy market VOC SECA NECA Mix of different HC s and inert gas VOC from a shuttle tanker can cover up to 25% of vessels energy demand Coming into service In Service Tested in the 90`s In Service First installation to enter service in Q1 2015 Full engines test on ZA40 have taken place during 2014 In service since 2012 Operating on Bio-Fuel or MDO Working well Several land based power plants in operation 600 bar injection pressure was not enough with the diesel priniciple Smoke problem Plant was transferred back to NG only Several VOC recovery installation sin use GasReformer delivered 2013 DF engines in marine service since 2001 17 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Alternative fuels- VOC Background Discussed in MEPC 65 Norway estimate that the global amount of VOC to 4-5 tons annually Equals 12-15 million ton CO2 Vessel types FSO s Shuttle tankers (Crude oil tankers) (Product tankers) FSO with VOC recovery, Gas reformer and Dual Fuel machinery Savings: 17 000 ton VOC / year LVOC Tank Crude Oil Cargo Tanks Savings: >10 million $/year GWP = 155 000 ton CO2 / year > 150 000 ton CO2eqv/year MDO Bunker Tank Space requirement Reduced Saving: 5 000 ton fuel/year Saving: 9 000 ton fuel/year 100 kg NOx/year No SOx SECA TECHNOLOGY 4-STROKE DF GAS REFORMER NECA (Otto Principle) Cargo pumps 18 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
Conclusions More and more industrial stakeholders has a sustainability program Legalisation is one of the technology drivers Many times legalisation targeting one emission, increase other emissions Legalisation affecting the existing fleet is often problematic and expensive When legalisation is in place, effective enforcement is the key to secure a levelled playing field For successful implementation public financing is needed for pilots well in advance of the legalisation implementation date 19 Wärtsilä Tomas Aminoff: Motorways of the Sea Conference, 18-19th November 2014, Gothenburg, Sweden
THANK YOU 20 Wärtsilä