Fuel selection for Ro-Ro Vessels Oskar Levander Director, Concept Design Ro-Ro Shipping Conference 2011 10.3.2011, Copenhagen 1 © Wärtsilä 11 March 2011 Oskar Levander Content • Introduction • Fuel scenarios • Fuel comparison – Example: Large RoRo – EEDI and fuel choice • LNG as a marine fuel • Can LNG be an option for ocean going vessels? – Example:Next generation PCTC • Conclusions 2 © Wärtsilä 11 March 2011 Oskar Levander Environmental challenge 3 NOx SOx CO2 PM Acid rains Acid rains Greenhouse gas Harming humans and animals Tier II (2011) Tier III (2016) 3.5% (2012) ECA 0.1% (2015) Under evaluation by IMO Along with SOx reduction © Wärtsilä 11 March 2011 Oskar Levander NOx reduction – IMO requirements and methods Specific NOx emissions (g/kWh) Tier I (present) 18 16 Dry methods (engine optimization) 14 - Concepts are ready 12 Ships built 2000 onwards Engines > 130 kW Retrofit: Ships built 1990 – 2000 Engines > 90 litres/cylinder and > 5000 kW Wärtsilä: RTA, W46, W64 10 8 - SCR Catalyst - Alternative pathways under 6 4 Tier III (ECAs 2016) 0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Rated engine speed (rpm) © Wärtsilä Ships keel laid 2011 onwards Engines > 130 kW investigation (Combined measures) 2 4 Tier II (global 2011) 11 March 2011 Oskar Levander Ships in designated areas, keel laid 2016 onwards Engines > 130 kW IMO Sulphur Limits 4,5% World 3,5% 1,5% ECA 1,0% 0,5% 0,1% 5 © Wärtsilä 11 March 2011 Oskar Levander 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 EU in ports Greenhouse emission reductions The public is demanding lower CO2 emissions from ships IMO is trying to respond the demand by introducing guidelines for: – Energy Efficiency Design Index (EEDI) – Energy Efficiency Operational Index (EEOI) – … 3 paths to CO2 emission reduction: – Reduce power demand – Improve efficiency – Change to alternative fuels 6 © Wärtsilä 11 March 2011 Oskar Levander New regulations: how to meet compliance? Greenhouse gases (GHG) global warming caused by human activities Regional pollutants NOx - Primary dry methods (engine technologies) -Primary wet methods (water use) - Secondary methods (after treatment) 7 © Wärtsilä 11 March 2011 Oskar Levander SOx (& PM) GAS - Primary methods (low sulphur fuels) - Secondary methods (after treatment) Three scenarios to 2020-2025 • Abatement technologies not completely accepted by the market and/or regulators • Not sufficient supply of distillates and/or high price premium of distillates vs. other fuels • LNG infrastructures developed: terminals, bunkering facility • Competitive LNG price • Successful development of technologies to use nonconventional marine fuels, including renewable energy Fuels mix Majority Low S fuels • Stable or decreased demand for distillates from road transportation (electric cars) • Downstream investment in additional refining capacity (M-E, India, China); investments supported by availability of engineering skills / materials • Regulators or market not accepting exhaust abatement technologies 8 © Wärtsilä 11 March 2011 Oskar Levander Majority HFO • Regulators + market acceptance of exhaust abatement technologies • High demand from road transportation high pressure on refining capacity high price of distillates • Slow downstream investment • CO2 taxes limiting expansion of energy intensive refineries Mapping of fuels Sulphur emission regulations impact the choice of fuel The choice of fuel is not a simple one! HSFO + – Distillates (MDO - MGO) © Wärtsilä Biofuels* • Cost comp. to MGO • Availability • Low emissions • No treatment on board • Very low emissions • High efficiency • Low ship operating costs • Low SOx and CO2 emissions • Requires scrubber in SECA • Treatment on board • Price • Long term availability • Viscosity issues • Availability / logistics • Space on board • Price • Availability • Not sustainable from food crops * Includes raw vegetable oils, biodiesel, synthetic fuels (BTL) 9 Natural Gas 11 March 2011 Oskar Levander Marine Fresh Water Scrubber System Exhaust Gas Closed loop works with freshwater, to which NaOH is added for the neutralization of SOx. CLOSED LOOP = Zero discharge in enclosed area pH NaOH unit pH Fresh water Scrubber Water Treatment Cooling Holding tank Process tank Seawater 10 © Wärtsilä 11 March 2011 Oskar Levander Sludge tank Fuel prices 35 LNG Japan average [USD/MBtu] 30 NG Henry hub [USD/MBtu] HFO 380cst Rotterdam [USD/MBtu] 25 USD/MBtu MGO Rotterdam [USD/MBtu] 20 15 10 5 O ct -0 Fe 1 b0 Ju 2 n0 O 2 ct -0 Fe 2 b0 Ju 3 n0 O 3 ct -0 Fe 3 b0 Ju 4 n0 O 4 ct -0 Fe 4 b0 Ju 5 n0 O 5 ct -0 Fe 5 b0 Ju 6 n0 O 6 ct -0 Fe 6 b0 Ju 7 n0 O 7 ct -0 7 Fe b0 Ju 8 n0 O 8 ct -0 Fe 8 b0 Ju 9 n0 O 9 ct -0 Fe 9 b1 Ju 0 n1 O 0 ct -1 0 0 Sources: www.lngoneworld.com, www.bunkerworld.com, LR Fairplay 11 © Wärtsilä 11 March 2011 Oskar Levander Expected LNG prices Energy price Price between HFO-LNG 1,4 x price HFO Price similar to HFO "SMALL SCALE" LNG Purchase price (gas or LNG) 12 © Wärtsilä 11 March 2011 Oskar Levander DISTRIBUTION FROM LNG TERMINALS LNG production Freight and terminal costs Bunkering Example: RoRo vessels concept for operation inside ECA 14 © Wärtsilä 11 March 2011 Oskar Levander Efficient RoRo concept 15 © Wärtsilä 11 March 2011 Oskar Levander RoRo main particulars 16 • Size • Length 225 m • Length, bp 213 m • Beam 28.2 m • Draft 7.0 m • Depth, main deck 9.7 m • Speed, service • Lane meters 4 500 m • Deadweight 12 500 tons • Propulsion power • Aux power © Wärtsilä 11 March 2011 35.000 GT ~21 knots 17.5 MW (installed) 3 MW (installed) Oskar Levander RoRo vessel cargo arrangement • Large cargo deck areas • Ramps to upper deck located on outside of ship – Faster loading and unloading – Ramps do not block the loading of the main deck 17 © Wärtsilä 11 March 2011 Oskar Levander Ramp arrangement Conventional RoRo The new cargo deck and ramp arrangement allow for faster loading To upper deck To lower hold To main deck More free lanes, since the ramp to the upper deck is moved outside the hull New RoRo arrangement To upper deck To main deck To lower hold To main deck To upper deck 18 © Wärtsilä 11 March 2011 Oskar Levander Triple screw • With almost the same appendage resistance as twin shaft lines, why not have 3 propellers? – Centre propeller shaft inside the skeg, no shaft supports needed – A skeg is anyway needed for course stability • Lower propeller loading with 3 propellers – Better open water efficiency! – 7% lower power demand compared to twin shafts 19 © Wärtsilä 11 March 2011 Oskar Levander Better manoeuvring with triple screw LIFT Twin screw – One propeller is driving forward and one is reversing – Only one rudder is generating side force LIFT Triple screw – The two side propellers are driving forward and the centre one is reversing – Two rudders are generating side force 20 © Wärtsilä 11 March 2011 Oskar Levander LIFT Machinery comparison: Cases 21 • Case 1: MGO + SCR • Case 2: HFO + SCR + Scrubber • Case 3: LNG © Wärtsilä 11 March 2011 Oskar Levander Case 1 MGO SCR SCR 5.8 MW SCR SCR GEAR 8L38 SCR 1.11 MW SCR 6L20 5.8 MW PTO 2.5 MW 1.11 MW GEAR 8L38 6L20 5.8 MW GEAR 6L20 8L38 2 x 1.2 MW 17.4 MW 3.3 MW MDO 22 © Wärtsilä 11 March 2011 Oskar Levander G 1.11 MW MSB Installed propulsion power: Installed aux power: G HFO G Case 2 HFO Integrated Scrubber SCR SCR 5.8 MW SCR SCR GEAR 8L38 SCR 1.11 MW SCR 6L20 5.8 MW PTO 2.5 MW 1.11 MW GEAR 8L38 6L20 5.8 MW GEAR 6L20 8L38 2 x 1.2 MW 17.4 MW 3.3 MW MDO 23 © Wärtsilä 11 March 2011 Oskar Levander G 1.11 MW MSB Installed propulsion power: Installed aux power: G HFO G Case 3 LNG 5.85 MW GEAR 6L50DF 1 056 kW 6L20DF 5.85 MW PTO 2.5 MW 1.056 kW GEAR 6L50DF 6L20DF 5.85 MW GEAR 6L20DF 6L50DF 2 x 1.2 MW 17.55 MW 3.17 MW MDO 24 © Wärtsilä 11 March 2011 Oskar Levander G 1.056 kW MSB Installed propulsion power: Installed aux power: G LNG G Fuel prices USD/ton EUR/ton USD/MBtu HFO 415 340 10.8 MGO 660 540 16.2 LNG 510 420 11.0 Source: www.bunkerworld.com (June 2010), LNG price estimated 1 EUR = 1.22 USD 25 © Wärtsilä 11 March 2011 Oskar Levander Annual operating cost 12 000 SCR operating costs -2.4% -3.9% Lubrication oil costs Annual operating cost [kEUR] 10 000 - 2.7 M€ - 3.7 M€ 8 000 Scrubber operating costs (NaOH + Fresh Water) Fuel costs 6 000 Used fuel prices: 4 000 HFO 340 €/ton (415 USD/ton) MGO 540 €/ton (660 USD/ton) LNG 420 €/ton (11 USD/mBTU) Consumables: 2 000 Urea (40%) 240 €/ton 0 MGO 26 © Wärtsilä 11 March 2011 Oskar Levander HFO LNG NaOh 225 €/m3 FW 3 €/m3 Machinery investment cost indication 20 000 18 000 Scrubbers 16 000 Machinery first cost [kEUR] SCR 14 000 Fuel system (LNG tank etc.) 12 000 Steering 10 000 Propulsion train 8 000 Aux engines 6 000 Propulsion engines 4 000 2 000 0 MGO 27 © Wärtsilä 11 March 2011 Oskar Levander HFO LNG Annual machinery related costs 14 000 12 000 Operating cost Annual operating cost [kEUR] -2 380 k€ -2 850 € 10 000 Capital cost 8 000 6 000 4 000 2 000 Time: 10 years Interest rate: 6 % 0 MGO 28 © Wärtsilä 11 March 2011 HFO Oskar Levander LNG Exhaust emissions CO2 NOx SOx 140% Relative exhaust emissions 120% 100% 80% 60% 40% 20% 0% MGO HFO LNG Note that all cases fullfills IMO NOx Tier III, For MGO concept the NOx reduction is IMO Tier II – 90%. 29 © Wärtsilä 11 March 2011 Oskar Levander Transport efficiency - EEDI EEDI value [CO2 ton / dwt * kn] 40 30 DNV baseline proposal (2009) 20 10 0 MGO HFO NOTE: The values are based on the proposed formula. Not yet finalised. Ice class is not included in the values 30 © Wärtsilä 11 March 2011 Oskar Levander LNG EEDI and fuel selection 31 © Wärtsilä 11 March 2011 Oskar Levander IMO Energy Efficiency Design Index (EEDI) 32 © Wärtsilä 11 March 2011 Oskar Levander IMO Energy Efficiency Design Index (EEDI) CO2 emissions EEDI = Transport work 33 © Wärtsilä 11 March 2011 Oskar Levander EEDI – the speed limit • The EEDI is penalising speed to a high degree • A ships EEDI value is more dependent on the speed than on how well the ship has been designed • EEDI is a power limit and thereby virtually a speed limit at sea • Can it cause an undesired modal shift away from sea transportation to land based transportation? 35 © Wärtsilä 11 March 2011 Oskar Levander Propulsion power in existing RoRo vessels Propulsion power - DWT Ro-Ro vessels, +20 knots 30000 Main engine power [kW] 25000 Min power in current designs 20000 New RoRo concept 15000 10000 Max allowed main engine power for 20 knots at 75% MCR * 5000 0 0 2000 4000 6000 8000 10000 12000 14000 DWT, design [tonnes] Existing RoRo vessel with a service speed of 20 knots or more have clearly more installed power than what is allowed by the EEDI (HFO operation). * The max allowed main engine power is calculated with the baseline proposed by DNV. It is assumed that there is not PTO, ice class or any energy saving device onboard. The speed is assumed to be 20 knots at trial conditions with 75% MCR. The SFOC is based on values for typical diesel engines in the 5000 -12 000 kW range 36 © Wärtsilä 11 March 2011 Oskar Levander Assumptions: EEDI vs speed estimation Length, wl 220 m Beam 28.2 m Draft DWT 7 m 12 500 ton EEDI value for RoRo 50 45 [g (CO2) / dwt*kn] 40 Calculated EEDI (HFO) 35 30 Limit according to the proposed baseline 25 NOTE: not yet approved by IMO 20 EEDI requirement at 12 500 dwt 15 10 Speeds resulting in EEDI value exceeding baseline limit! Speeds with OK EEDI 5 0 16 17 18 19 20 21 Speed [kn] 37 © Wärtsilä 11 March 2011 Oskar Levander 22 23 24 25 Assumptions: EEDI vs speed estimation – HFO vs LNG Length, wl 220 m Beam 28.2 m Draft DWT 7 m 12 500 ton EEDI value for RoRo 50 45 [g (CO2) / dwt*kn] 40 Calculated EEDI (HFO) 35 30 -26% Calculated EEDI (LNG) Proposed baseline 25 20 15 EEDI requirement at 12 500 dwt ~2.5 knot speed increase possible with LNG! 10 5 0 16 17 18 19 20 21 Speed [kn] 38 © Wärtsilä 11 March 2011 Oskar Levander 22 23 24 25 EEDI advantage with LNG If the current EEDI proposal will come into force for RoRo vessels: LNG will offer clear advantages for ships requiring high installed power! 39 © Wärtsilä 11 March 2011 Oskar Levander LNG 40 © Wärtsilä 11 March 2011 Oskar Levander Cleaner Exhaust Emissions with LNG • 25-30% lower CO2 – Thanks to low carbon to hydrogen ratio of fuel • 85% lower NOX – Lean burn concept (high air-fuel ratio) • No SOX emissions – Sulphur is removed from fuel when liquefied • Very low particulate emissions • No visible smoke • No sludge deposits 41 © Wärtsilä 11 March 2011 Oskar Levander Dual-fuel engine range 20DF 6L20DF 1.0 MW 8L20DF 1.4 MW 9L20DF 34DF 6L34DF 9L34DF 12V34DF 1.5 MW 2.7 MW 4.0 MW 5.4 MW 16V34DF 7.2 MW 20V34DF 50DF 6L50DF 9.0 MW Higher output for 60Hz / Main engines 5.85 MW 8L50DF 7.8 MW 9L50DF 8.8 MW 12V50DF 11.7 MW 16V50DF 15.6 MW 18V50DF 0 42 © Wärtsilä 11 March 2011 Oskar Levander 17.55 MW 5 10 15 LNG fuelled PSV: Viking Energy & Stril Pioneer Viking Energy / Stril Pioneer Designed by: Wärtsilä Ship Design LNG tank = 220 m3 4 x Wärtsilä 6L32DF gensets = 8080 kW 43 © Wärtsilä 11 March 2011 Oskar Levander LNG fuelled PSV: Viking Queen & Viking Lady Viking Queen / Viking Lady Designed by: Wärtsilä Ship Design LNG tank = 220 m3 4 x Wärtsilä 6L32DF gensets = 8080 kW 44 © Wärtsilä 11 March 2011 Oskar Levander Conversion of Bit Viking 45 © Wärtsilä 11 March 2011 Oskar Levander Conversion of Bit Viking 46 © Wärtsilä 11 March 2011 Oskar Levander Conversion of Bit Viking • 25,000 dwt Twin Screw Chemical Tanker by Wärtsilä Ship Design • Classification society GL • Main Engines: 2 x Wärtsilä 6L46 / 5850 kW • 2 x W6L50DF / 5700 kW • Autonomy = 12 days operation on ~80% load • 2 x 500 m3 LNG tanks 47 © Wärtsilä 11 March 2011 Oskar Levander LNG fuelled ferries Large ferries running on LNG Coming soon to a port near you…. 48 © Wärtsilä 11 March 2011 Oskar Levander LNG development pax vessel projects Wärtsilä is actively developing solutions for LNG fuelled passenger vessel: – Fast LNG RoPax (2001) 40 000 gt – Cruise Ferry (2005) 10 000 gt – RoPax (2006) 30 000 gt – PaxCar Ferry (2007) 65 000 gt – Cruise ship (2007) 125 000 gt – Cruise Ferry (2009) 60 000 gt 49 © Wärtsilä 11 March 2011 Oskar Levander Wärtsilä LNG fuelled ships Bridge LNG tank (pressurized - IMO type C) + tank room Bunker station with valves and connections to shore Vacuum insulated pipes (liquid LNG) Process skid (valves and evaporators) Gas ramp (gas valve unit) 51 © Wärtsilä 11 March 2011 Oskar Levander Water/glycol system design Automation and controls Gas detection system Operating manual and class approval LNGPac Simplified P&ID LNG Gas Anti - freeze heating media Bunkering station LT - water Product evaporator PBU Tank room LNG heating circuit connected to AC cooling circuit 52 © Wärtsilä 11 March 2011 Oskar Levander To GVU Stop valve & master valve LNG storage Storage volume (Relative) 4,5 Volume relative to MDO in DE 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Diesel Fuel 53 © Wärtsilä Tank 11 March 2011 LNG (10bar) Tank Room Oskar Levander LNG storage location Gas storage below deck LNG tank Min. B/15 or 2 m (the lesser) Never less than 760 mm Min. B/5 or 11,5 m (the lesser) LNG tank Never less than 760 mm 54 © Wärtsilä 11 March 2011 Oskar Levander Conventional tank location 55 © Wärtsilä 11 March 2011 Oskar Levander LNG tanks located vertically 56 © Wärtsilä 11 March 2011 Oskar Levander LNG tanks located outside The LNG tanks can be located outside • Does not take up space inside ship • Good ventilation • No ventilation casing needed trough accommodation • Visible location for good PR 57 © Wärtsilä 11 March 2011 Oskar Levander LNG containers lifted onboard 60 © Wärtsilä 11 March 2011 Oskar Levander Bunkering • Tanker truck • Containers lifted onboard • Trailers loaded onboard • Land based storage tank • Tanker ship / barge 61 © Wärtsilä 11 March 2011 Oskar Levander Bunkering from LNG truck 63 © Wärtsilä 11 March 2011 Oskar Levander LNG bunker barge/tanker 64 © Wärtsilä 11 March 2011 Oskar Levander LNG barge carrier – operation principle 65 © Wärtsilä 11 March 2011 Oskar Levander LNG barge carrier – operation principle 66 © Wärtsilä 11 March 2011 Oskar Levander Total Concept Optimization Wärtsilä engineers solutions for LNG delivery, storage, transportation and utilization onboard. 67 © Wärtsilä 11 March 2011 Oskar Levander Can LNG also be an option for ocean going vessels? Example: New PCTC generation 68 © Wärtsilä 11 March 2011 Oskar Levander Next generation PCTC 69 © Wärtsilä 11 March 2011 Oskar Levander PCTC and Panama canal locks Present locks Chamber Length Max vessel LOA Max vessel B Max vessel T 70 © Wärtsilä 11 March 2011 305.0 m 294.0 m 32.2 m 12.0 m Oskar Levander New locks Chamber Length Max vessel LOA Max vessel B Max vessel T 427.0 m 366.0 m 49.0 m 15.2 m PCTC - Improved cargo handling 71 © Wärtsilä 11 March 2011 Oskar Levander Main deck Lay-out Ramp up Ramp down – ramp cover DECK 5 Ramp up Quarter ramp 72 © Wärtsilä 11 March 2011 Oskar Levander Side ramp PCTC - Midship section 73 © Wärtsilä 11 March 2011 Oskar Levander LNG • Consumption per day at 17 knots Incl. 10% Margin • Total demand for 12 500 NM range Tank configuration: 6 x 530 m3 (net) 74 © Wärtsilä 11 March 2011 Oskar Levander 39 tons 90 m3 100 m3 3 100 m3 3180 m3 Capacity Medium speed engines are lower than low speed main engine – One cargo deck more on top of engine room – 1 170 m2 Exhaust is located outside of superstructure – No casing inside ship – Added deck area – 1 130 m2 Area savings: 2 300 m2 2 400 m2 of deck area needed for the LNG tanks (3 180 m3) 75 © Wärtsilä 11 March 2011 Oskar Levander Machinery configuration 1 MW 5.85 MW 6L20DF 6L50DF GEAR 1 MW 5.85 MW 6L20DF PTO 2 MW 6L50DF MSB 2 x 1 MW MDO 11 March 2011 76 © Wärtsilä G 1 MW 6L20DF Oskar Levander G LNG G Emissions per transported car CO2 NOx SOx 120% 100% 80% 60% 40% 20% 0% Conv (HFO, 19 knots) 77 © Wärtsilä 11 March 2011 Oskar Levander Conv. (HFO, 17 knots) New concept (LNG, 17 knots) NPV – 20 years - relative to reference vessel 60000 Assumptions: Servicing only Japan – Europe route NPV – M$ 50000 Fuel prices (2 % escalation p.a.) HFO: USD 630 /ton (16,4 $/mBTU) LNG: USD 540 /ton (12 $/mBTU) 40000 30000 Manning, spares, lube oil and voyage costs (excl. fuel) are fixed (price escalation 2-3 % p.a.) 20000 Finance 50 % with amortizing loan Interest rate 7,5 % Maturity of 6 years 10000 Required return on equity: 15 % 0 Conv (HFO, 19 Conv. (HFO, 17 New concept knots) knots) (LNG, 17 knots) 78 © Wärtsilä 11 March 2011 Oskar Levander Conclusions Both “HFO + Scrubber” and “LNG” offer clear advantage over “MGO” LNG has most potential for new short sea shipping vessels •Proven technology available •New bunkering solutions will be introduced 79 © Wärtsilä 11 March 2011 Oskar Levander www.wartsila.com Contact: • Oskar Levander • Director, Concept Design, MLS +358-40-832 2256 • oskar.levander@wartsila.com 80 © Wärtsilä 11 March 2011 Oskar Levander