14 June 2012 LNG Fuel for Shipping Clean North Sea Shipping – Conference London Martin Crawford-Brunt DNV is a provider of classification, verification and advisory services to the Oil & Gas, shipping and Energy markets "What we do" Classification Verification Advisory Oil & Gas "Who Shipping we serve" Energy © Det Norske Veritas AS. All rights reserved. 2 1 14 June 2012 NOx abatement Exhaust Gas Recirculation Humid inlet air Questions: Removal efficiency Space/ Weight Chemicals Low-NOx engine Selective Catalytic Reduction, SCR Energy LNG engine Documentation Crewing Answers ? LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 3 NOx Abatement - Selective Catalytic Reactor Reaction with ammonia as reductant: 4NO + 4NH3 + O2 → 4N2 + 6H2O 2NO2 + 4NH3 + O2 → 3N2 + 6H2O Concerns: Sulphur Low may pollute the catalyst efficiency at low load Minimum temperature required (challenge for 2-stroke) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 4 2 14 June 2012 SOx Scrubbing Efficiency potential: • >95 % SOx • >40 % PM Overboard Discharge of cleaned water Scrubbed & re-heated exhaust gases Intimate mixing of exhaust gas and sea water Separation and Filtration Plant Sea Water S.W. Inlet S.W. to cyclone separator & heat exchanger Exhaust Gases Sludge ashore to authorised contractor LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 5 IMO - Scrubber discharge regulations IMO Guidelines for Exhaust Gas Cleaning Systems adopted at MEPC59, including requirements for monitoring and discharge of wash water Requires monitoring of: pH PAH Turbidity (suspended particles) Nitrates Temperature LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 6 3 14 June 2012 Scrubber principles and systems Open Loop Questions: Waste Stream Space/ Stability Chemicals Closed loop – with NaOH Dry scrubber Vortex / Cyclone Energy Input Compliance ’CSNOx’ Crew workload Open loop – Sea water SOx 93% NOx 82% CO2 74% LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 7 ECA trading 3 options for SOx removal! 1.1 LNG as fuel 2.2 Scrubbers for exhaust gas purification 3.3 Low sulphur fuel …or fleet redeployment, i.e. give up trading in ECAs! The industry is here LNG fuel Sail ships Coal fuelled Oil fuelled ships ships Scrubber Low sulphur fuel 1850 2012 NOx demands 2015 2016 LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 8 4 14 June 2012 LNG is supreme for SOx, NOx and PM removal Applies for a typical general cargo ship 3300 kW installed LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 9 The LNG fuelled fleet in service and on order Confirmed orderbook Ships in operation Year Type of vessel 2000 Car/passenger ferry 2003 PSV 2003 PSV 2006 Car/passenger ferry 2007 Car/passenger ferry 2007 Car/passenger ferry 2007 Car/passenger ferry 2007 Car/passenger ferry 2008 PSV 2009 PSV 2009 Car/passenger ferry 2009 Car/passenger ferry 2009 Car/passenger ferry 2009 Patrol vessel 2009 Car/passenger ferry 2010 Patrol vessel 2010 Car/passenger ferry 2010 Patrol vessel 2010 Car/passenger ferry 2010 Car/passenger ferry 2010 Car/passenger ferry 2011 PSV 2011 Chemical tanker 2011 Car/passenger ferry 2011 PSV Owner Fjord1 Simon Møkster Eidesvik Fjord1 Fjord1 Fjord1 Fjord1 Fjord1 Eidesvik Shipping Eidesvik Shipping Tide Sjø Tide Sjø Tide Sjø REM Fjord1 REM Fjord1 REM Fjord1 Fjord1 Fosen Namsos Sjø DOF Tarbit Shipping Fjord1 Solstad Rederi Class DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV DNV GL DNV DNV Engine type Gas DF DF Gas Gas Gas Gas Gas DF DF Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel Gas+Diesel DF DF Gas DF 2011 Inland/port tanker Argonon/Deen LR DF LNG Fuel for Shipping DF= Dual Fuel engine Year 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 Type of vessel General Cargo PSV PSV PSV Ro-Ro Ro-Ro High speed RoPax PSV PSV PSV General Cargo Ro-Ro Ro-Ro Car/passenger ferry Car/passenger ferry Car/passenger ferry Car/passenger ferry RoPax PSV PSV Patrol vessel Car/passenger ferry Car/passenger ferry Planned conversion Year Type of vessel 2011 Car/passenger ferry Gas+Diesel= Separate LNG and diesel fuelled engines © Det Norske Veritas AS. All rights reserved. Owner Class Nordnorsk Shipping DNV Olympic Shipping DNV Eidesvik DNV Eidesvik DNV Sea-Cargo DNV Sea-Cargo DNV Buquebus DNV Island Offshore DNV Island Offshore DNV REM DNV Eidsvaag Norlines DNV Norlines DNV Torghatten Nord DNV Torghatten Nord DNV Torghatten Nord DNV Torghatten Nord DNV Viking Line LR Harvey Gulf Int. Marine ABS Harvey Gulf Int. Marine ABS Finish Border Patrol Society of Quebec ferries Society of Quebec ferries Engine type Gas DF DF DF Gas Gas DF Turbine Gas+Diesel Gas+Diesel DF Gas Gas Gas Gas Gas Gas Gas DF DF DF DF DF DF Owner Fjord1 Gas DNV Gas= Lean burn (mono fuel) LNG engine 10 5 14 June 2012 The technology is available and in use today… LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 11 2020 guess: …and there are many confirmed projects: 1000 LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 12 6 14 June 2012 LNG Safety LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 13 What is LNG Condensed natural gas Volume reduced by factor 600 for transportation LNG is a cryogenic* hydrocarbon liquid. - Contains mainly methane with traces of LPG and Nitrogen - SO2, CO2, H2O, C6+ and other contaminants removed to allow for cooldown without frost formation, lean fuel. - Normally stored at atmospheric pressure where it boils at -160 deg C - Heat from surrounding will cause boil off. If boil off is contained the pressure and temperature will rise. Alternatively the boil off can be re-liquefied. Density of LNG is approximately 450 kg/ m3 Energy content of 1m3 LNG corresponds to 0.65 m3 diesel LNG 600 x Natural gas is flammable (as all fuels) Natural gas is non toxic *Very low temperature LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 14 7 14 June 2012 LNG compared to other Hydrocarbon liquids. - The combustion characteristics are less severe than other hydrocarbons - Ignition requires higher temperatures compared to other HC - The cold and dense gas close to the release and directly above the boiling liquid pool is too rich for ignition - Diluted and flammable gas is buoyant - Burning characteristics are less aggressive than eg propane; detonations are highly unlikely - The cryogenic properties are particular for LNG and require special attention LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 15 LNG Additional Safety Considerations Releases can lead to - frost burns and personnel injuries - brittle fractures exposed steel - flammable clouds - fires and explosions - RPT (Rapid Phase Transition or “cold explosions”) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 16 8 14 June 2012 Procedures to safeguard against LNG releases Safeguards against releases comprise - Operational Procedures Strict requirements to the integrity of the containment to avoid release Personnel protective equipment Protection of exposed structures Fire and gas safeguards comparable with other hydrocarbons Training related to the safe handling of LNG LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 17 Competance / Training LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 18 9 14 June 2012 IGF code development “Interim Guidelines” finalized by IMO BLG 13 in 2009, resolution MSC.285(86) - Only for natural gas and internal combustion engines - Not mandatory - On going development Development of the “IGF CODE” has started - proposed - Include other gases than methane/ natural gas, also low flashpoint liquids - Include other machinery types like fuel cells, gas turbines etc. September 2009 putting fuel cell on board LNG fuelled Viking Lady for testing (FellowShip project) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 19 ISO standard on LNG bunkering Objective: Develop standard for LNG bunkering equipment and procedures Initiated June 2011, duration 4-5 years. Port and bunkering operations for LNG - Universal standard required - Address fully safety considerations 20 companies and individuals have already indicated interest for participation, representing the following countries: - Norway, Belgium, Brazil, Canada, China, France, Germany, Italy, UK LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 20 10 14 June 2012 Proposal to TC67 WG10 (ISO standardisation on LNG): A new work Project Team should be established to prepare a new ISO document addressing: Guidelines for systems and installations for supply of LNG as fuel to ships. The proposal was presented by DNV and supported by all members of the SC France, Norway, Canada, Brazil, Japan, China indicated paricipation Norway offered to lead the PT. The document should be developed as a Technical Specification The document should be coordinated with the work related to LNG Fuelling systems for road transport. LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 21 Stakeholder Projects LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 22 11 14 June 2012 LNG as fuel experience Substantial LNG as fuel advisory experience: - Assisting yards and owners with risk analysis (HAZID and HAZOP) of LNG fuelled vessels, bunkering operations, operating procedures and onshore LNG plants - Advisory services to yards, owners, ports and other stakeholders. Technology and market assessments. Mapping the implementation towards LNG as fuel for ships. LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 23 DNV examples LNG advisory projects - LNG bunkering in Belgium – feasibility study - BunGas (JIP) – bunker system for commercial vessel - Feasibility assessment for LNG bunkering (JIP) – Singapore - LNG bunkering Ship to Ship (JIP) - Sweden. - LNG infrastructure in Southeast Asia (JIP) - Cost efficient ECA compliance for ship operators and mapping transition LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 24 12 14 June 2012 Belgian Ports - Logistics model Scope: - To develop a logistics benchmarking model which enables the client to compare different logistics concepts for different LNG demand scenarios in three different ports i.e.: - To be used as a decision support* tool System boundaries: - From loading of feeder/bunker vessel and truck at LNG plant until unloaded at the LNG fuelled ship - From connection point gas grid/network until unloaded at the LNG fuelled ship LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 25 Context of the Study More stringent air emission requirements for seagoing vessels One of the possible solutions may be the use of LNG as an alternative fuel for shipping. The lack of adequate bunker facilities for LNG appears to be one of the obstacles for an effective breakthrough of this alternative fuel. Therefore a study to evaluate the possibilities and options for the organisation and facilitation of bunkering of LNG in ports has been instigated. The Flemish Government and the port authorities of Antwerp, Zeebrugge and Ghent, in cooperation with Fluxys LNG (an operator of the LNG terminal at Zeebrugge) are the initiators and stakeholders of this study. LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 26 13 14 June 2012 LNG bunkering station and LNG terminals Maritime LNG providers: Gasnor (dominates N Europe) Nordic LNG (Norway) Skagerak Energi (Norway) Barents LNG (Norway) Gassum OY (Finland) Clean Energy (USA) Excelerate Energy (USA) + newcomers! Norway 2010 Baltic Sea 2015? LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 27 Financial Drivers LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 28 14 14 June 2012 The cost of fuel seems ever increasing Fuel costs will not become less important in the future Fuel represents the major share of daily costs for any ship Ref: PriceWaterhouseCoopers and US Energy Information Administration LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 29 Growing predicted price disparity oil /gas Increasing distillate prices (demand/ production)? Current LNG fuel sales price in Norway LNG fuel price development? Source: EIA LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 30 15 14 June 2012 LNG pricing (volume basis) 10-11 USD/mmbtu 4 USD/mmbtu 15-16 USD/mmbtu LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 31 Economic benefits retrofit – Ro-Ro within ECA Delta PV in MNOK (2010) -160 -140 -120 -100 -80 -60 -20 0 20 40 -45 Yard costs -14 Engine costs Equipment costs Loss of income -40 -19 -28 113 Reduced fuel costs Reduced other OPEX 22 PV b.t. 29 •Conversion of exiting ro/ro passenger vessel and 17 years remaining operation. •LNG at 12$/mmbtu = 570$/ton and 2,4% inflation vs. MGO at 700 $/ton LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 32 16 14 June 2012 LNG pricing in Norway Bulk price MDO LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 33 Infrastructure LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 34 17 14 June 2012 Small scale LNG distribution in Norway LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 35 LNG fuel distribution LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 36 18 14 June 2012 Ship to Ship (STS) transfer of LNG STS an important part of LNG distribution Operational bunkering process and technical solutions need to be developed ISO TC67/WG10 are establishing an international standard and guidelines for safe and time efficient STS LNG bunkering procedures DNV has been involved in several STS bunkering assessments examples - GOT LNG, BunGas, North European infrastructure project This includes concept studies for LNG bunker barges and bunkering vessels LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 37 Ship to ship LNG bunkering project • Starting point for developing ship to ship bunkering procedures • Mitigation measures for Hazids indentified in the study developed. • Feasibility study bunkering within 50 minutes • LNG transfer rate, approx 150 ton (300 m3)/hour LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 38 19 14 June 2012 Many technical solutions developed Receiving vessel Bunker vessel Bunker port position Bollards position LNG/Vapour return/Diesel Lube oil/Sludge Drip free break away couplings Spill tray Mooring plan Pictures: LNG ship to ship bunker project LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 39 Guideline developed – download LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 40 20 14 June 2012 LNG Bunkering Example - Coast Centre Base, Ågotnes Base/ Harbour for vessels and companies serving offshore fields off Norway LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. Location Kystbasen Ågotnes Cost Centre Base LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 21 14 June 2012 LNG bunkering station, main components Jetty with bunkering equipment Shore based LNG tank LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. Onshore tank arrangement LNG piping arranged underground LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 44 22 14 June 2012 LNG transfer equipment LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 45 LNG bunkering checklist for crew LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 46 23 14 June 2012 Supervision from ECR (1) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 47 Supervision from ECR (2) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 48 24 14 June 2012 Gas piping on board Gas detector in ER LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 49 Ongoing transfer LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 50 25 14 June 2012 LNG flange LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 51 Coastal oil bunker vessel – with new type LNG tanks! ”A-type” under approval… Fuel from cargo boil-off Low cost propulsion Short engine room Design: Rolls Royce Merchant Solutions LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 52 26 14 June 2012 Schematic overview of intended bunkering procedure Total time of operation 1-3 hours in total Before bunkering • • • • • • • • • • • During bunkering After bunkering Call • Pump start sequence Arrival • Transfer sequence Mooring • Pump stop sequence Connect el-grounding Checklist to receiving ship ESD cable (Connection link) Typical transfer rates: Connection hose Truck: 50 m3/h Purging, cooling LNG bunker vsl: Return of signed checklist 100-200 m3/h Open manual valves (LNG carriers: > 1000m3/h) Ready signal both ships • Shut manual valves • Disconnection of hose • Stripping/purging of cargo line (receiving ship) • Disconnection link, el-grounding • Delivery cargo document • Un-mooring • Departure • Stripping/purging of cargo lines (bunker ship) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. Technology and innovation LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 54 27 14 June 2012 Ready to retrofit an existing vessel for multi-fuel service The project has been based on: MV Maersk Drury – 5044 TEU Built at HHI Ulsan 2006 Length o.a. 294,1 m Deadweight 65.965 mt DNV class 1 Main engine MAN B&W 45.760 KW - 4 Auxiliary engines MAN 2100 KW each - 1 Auxiliary Boiler Aalborg - Two auxiliary engines and auxiliary boiler to be modified for dual fuel operation (gas/HFO) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 55 Conversion project outline The principal technical elements - Converting cargo hold to a “Gas Technology Room” - Additional LNG containers on deck - Total LNG fuel capacity 240 + 500 m3 - LNG supply via container only - Efficient bunkering solution - Minor loss of cargo space Timeline for completion - Project started March 2010 - First LNG fuel onboard possible 2012 Limited economical benefit – at least in the very beginning LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 56 28 14 June 2012 Kawasaki Heavy Industries, Ltd. AiP to LNG Gas Fuelled 9,000TEU Container Carrier Length overall Breadth Draught LNG fuel tank : 308.0 m : 48.4 m : 14.5 m : 7,000 m3 A twin island design maximising cargo space available for loading containers. A two stroke dual-fuel main engine which is electronically controlled with a high combustion efficiency coupled with a hull form optimised for safety and fuel efficiency. The engine may be equipped with an exhaust gas recirculation system (EGR) which satisfies IMO Tier-3 requirements for voyages in North American and European Emission Control Areas (ECAs). LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 57 Kawasaki Heavy Industries, Ltd. AiP to LNG Gas Fuelled 9,000TEU Container Carrier LNG fuel tank : 7,000 m3 The LNG is stored in prismatic low pressure insulated tanks (Type B). KHI has also adopted a unique technology, the Kawasaki Panel System, for heat insulation in order to reduce the rate of evaporation of LNG. Safety Assessment on gas fuelled ship installation will be conducted with DNV. LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 58 29 14 June 2012 Conceptual: Energy efficient designs, including LNG fuel. Product carrier (15 000 tdw) with gas fuelled engines LNG fuel tanks on deck Fuel capacity: 22 days of operation LNG tanks on deck! Source: Stena LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 59 Liquid Natural Gas (LNG) as Fuel Drive for efficiency, cost reduction, improved energy efficiency & reduced CO2 emissions 132.8 m LNG fuelled Sea-Cargo vessel able to carry 5,600 tonnes of cargo, with up to 94 TEU of containers on deck and 1,240 lane-metres of ro-ro capability. LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 60 30 14 June 2012 Innovations of Triality - LNG fuelled 2 stroke slow speed main engines (300 bar pressure gas, dual fuel) Low pressure dual fuel auxiliary engines (or pure gas fuelled) Triple fuel boilers (Natural gas, fuel oil, VOC) MGO as pilot and backup fuel - No heavy fuel oil installations - Fulfils ECA requirements also at low load LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 61 LNG tanks Type C pressure tanks on cargo deck, 2 tanks of 6750 m3 LNG each - Enough for 25 000 nm - Insulation on the outside - Inside deck house Benefits pressure tanks: - Simple operation - Safe tanks LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 62 31 14 June 2012 Availability of LNG as bunkers 25,000 nm range. LNG supply generally in vicinity of crude oil terminals Evaluated bunkering in the Gulf could be a good option - LNG available, coupled to Henry Hub long term? Supplied by LNG bunker ship or bunker barge LNG price assumed in reference price scenario: 12 USD/ MMbtu (equals a HFO price of 455 USD/ton, taking energy density into account) LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 63 New generation multipurpose fishing vessel Improved safety Purse seine and pelagic trawling Oil spill, offshore windfarms LNG propulsion Improved efficiency LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 64 32 14 June 2012 10 years of safe operation with LNG fuelled ships Rules since 2001 for LNG as fuel * LNG tankers excluded LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 65 LNG - Part of the environmental and commercial solution Technology exists today, and is proven small scale Requires proper risk mitigation measures LNG will be an increasing part of the fuel mix going forward Potential for modal shift short sea may accelerate adoption LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 66 33 14 June 2012 Safeguarding life, property and the environment www.dnv.com LNG Fuel for Shipping © Det Norske Veritas AS. All rights reserved. 67 34