Module 1: LNG Fuelled Vessels Design

Training

‘Compliance Strategies of Owners with the

Regulations’

Dr Evangelos Boulougouris

(University of Strathclyde)

Owner prioritiesM

inim

ise

Cost

Structural Cost

• Optimum Design,

• Effective Plan,

• Effective Project Management

Operational Cost

• Running Cost, Crew,

• Insurance, Maintenance,

• Fuel,

• Port & Canal Costs,

• Terminal Costs, Handling etc.

Max

imiz

e R

even

ue

Efficient Operational Management

Bunker Management

Crew Management

Adaptation to new technologies and regulations

Environmental Awareness

Certification

Training & Education

Max

imu

m P

rofi

t

Fuel Cost is the

most important

expenditure item,

Owners develop

strategies by taking into

consideration the changes

in fuel sector,

This a game

theory,

Other stakeholder

priorities should be

considered.

Stakeholder priorities

Shipping Industry:

Safe, streamlined, fast and economic

solutions in accordance with new

environmental regulations

Fuel and LNG providers:

Safety for people and assets

Protection of LNG industry reputation

Business in the downstream market

Bunker operators:

Safety,

Maintain business,

Minimum interruptions

Ports:

Provision of services effectively aligned

with existing operations

Fuel Strategies

Scrubbers + HFO

LNG

Fuel Switching• Low sulphur fuel

• Other Solutions

Scrubber

Typical dry SOx scrubber system

• Abatement technologies or “end-of-pipe”

treatments

• The use of “scrubber” to remove SOx and

PM,

• Selective Catalytic Reduction (SCR),

• Exhaust Gas Recirculation (EGR),

• 2015 SECA and Tier III ECA

requirements,

• Tier III NOx requirements.

Scrubber + HFO

Strengths

• ECA compliancy

• No new fuel tank, fuel logistics etc.

• Easier re-fit and less expensive than LNG fuel retrofit

Weaknesses

• Sludge reception facilities

• Space requirements, stability

• Large installation/interface on-board

• Fuel penalty, operational costs

• Wash water criteria

• Costs

• Power requirements, CO2 emissions

Discussions

• Performance on all engine loads

• Integration with boilers

• Corrosion

Scrubber

Some Examples:

• Ferry Pride of Kent (2006); Krystallon

(Hamworthy/Wartsila)

• RoRo Linea Messina (2011); Wartsila

• Containerships VII (2011); Wartsila Closed Loop

• 8*NB for Algoma (Great Lakes) (2013); Wartsila

• RoRo Tamesis (2012) 28 MW hybrid scrubber

Hamworhty/Wartsila

• RoRo Tarago (2013); 28 MW hybrid scrubber

Hamworhty/Wartsila (Sembawang)

• ConRo Plyca (2012); 28 MW hybrid/PureSOx

(ShipdockNL)

• RCCL Liberty of the Seas (2012); GreenTech

• MV Timbus, dry scrubber, Couple Systems

• MV Balder (2012); hybrid scrubber, Clean Marine

Krystallon (Hamworthy/Wartsila)

MGO Fuel Type

Distillation Residues HFO: The fuel derived from distillation residues, often referred to as heavy

fuel oil (HFO), are heavier marine fuels compared with the viscosity and

sulfur content

Fractional Distillation ProductsThe distillate fuels can be divided into two categories, fuel type MGO and

MDO.

MGO: Marine Gas Oil

MDO: Marine Diesel Oil

IFO:When the fuel is derived from the distillation residue mixed with fuel

by fractional distillation, the mixture is called intermediate fuel

Fuel Switching

Strengths

• ECA compliancy possible

• Safe and proven, existing network

• Recording regime established

• Familiar for crew

• Low Investment

Weaknesses

• Increased OPEX 30-40%

• Low flashpoint issues

• Fuel switching can cause black out

Discussions

• Global availability

• Price hike

Switch to

conventional low

sulphur diesel oil

LNG

LNG as fuel

• Environmentally friendly fuel with low

sulphur content

• SOx and PM emissions are negligible

• NOx reduction 80-90% for four stroke

Otto / 10-20% for two-strike engines

• Less carbon emissions abt. 20% than the

other fuels

LNG

Storage Conditions:• In liquid form at atmospheric pressure and -162°C

temperature,

• In cryogenic tanks.

Constituent:• Methane (CH4)

• Other hydrocarbons (ethane C2H6, propane C3H8,

butane C4H10)

• Other substances ( nitrogen, N2, hydrogen sulphide

H2S, carbon dioxide, etc.)

LNG

Methane is an aggressive GHG• Significant environmental drawbacks

• Phenomenon of “methane slip” in four-stroke dual fuel engines

• The effect of “methane slip” will be greatly reduced in the future

EU approach:• The most promising alternative for short and long term

• At least for short sea shipping and other sea activities such as

fishing and offshore services

LNG engine choice

OTTO LNG may be used in SECA, normal FO for outside SECA and where fuel gas is not

available

Operating principle: usage of LNG Otto cycle and diesel cycle

The ignition source during operation LNG is a small amount of oil, "pilot fuel“

which is injected and ignited by the heat generated by the compression and

combustion

DIESEL The technology of this engine implements gas injected at high pressure (about 300

bar) with "pilot fuel". This machine can only use fuel oil or a mixture of gas and oil

SINGLE FUEL GAS ENGINES The cycle Otto / Miller is the basis for the operation of this engine. Instead of a pilot

fuel, a rich gas / air mixture is ignited in a combustion antechamber,

This technology ensures high efficiency and low emissions

Investment

Scrubber Installation needs a significant investment cost

Operational cost are marginally affected – slight increase in fuel

Retrofitting vs. new ship

Fuel Switching Considerable increase in operational costs,

Price difference between HFO and MGO,

Investment cost is not necessary

Existing infrastructure is suitable to supply MGO

LNG Substantial reconstruction works – diesel engines and LNG tanks

Bunkering infrastructure investments

New buildings with high cost

LNG price provides important economic advantage

Investment Cost

Investment Cost

Operational Expenses

Scrubber Scrubber strategy includes additional operational costs,

Calculated as

(main engine power [kW] ∙ time at sea [hours / year]),

It is estimated that the specific cost for using "scrubbers" are 0.0025 € / kWhmain and

the SCR 0.007 € / kWhmain

From HFO to LNG Decrease in the cargo area,

Operating costs is examined by the study of GL regarding a conversion of a

Container Ship "CV Neptune 1.200" to switch fuel use from HFO to LNG,

The capacity of 1.284 TEU decreased by 48 TEU in 1.236 TEU (4% decrease),

In container ships the cargo space lost is of great importance,

Other types of ships has no particular interest as it may be easier to place LNG tank

in an area that will not affect the capacityM/T Bit Viking

Fuel Characteristics

Two key characteristics of fuels

Calorific value and density

LNG Supply

Bridge shore and ship

regulation

Focus on safety and

align with normal

operations

LNG Supply

Large, Medium, Small scales defined (DMA, 2012)

LNG Supply

LNG truck filling the shore LNG tank at Antwerp port(Hhpinsight.com, 2014) Ship To Ship LNG bunkering (Almeida, 2014)

Truck To Ship LNG bunkering (Maritime-executive.com, 2014)

Portable LNG containers loaded onto a roro vessel (Levander,2011)

LNG Supply

LNG Supply

Ship type – Bunkering solution suitability (DMA, 2012)

LNG Supply

Ship type – Bunkering solution suitability (DMA, 2012)

• Base Case

Three main configurations:

Tank to ship,

Truck to ship,

Ship to ship

• For base case no other cargo operation

and no passengers in agreement with

ISO Instruments.

LNG Supply

Fuel Prices

Gasoline, Gas oil and Heavy fuel oil prices in Rotterdam(Source: BP, 2015, Statistical Review of World Energy)

1 $/bbl FO ≈ 5.825$/MMBtu

Fuel Prices

LNG Prices(Source: BP, 2015, Statistical Review of World Energy)

Fuel Prices

LNG prices in China, Spain, Japan and the EU

(Source: European Commission, 2015, Quarterly Report Energy on European Gas Markets: Market Observatory for Energy, DG Energy

Volume 7, issue 4, fourth quarter 2014)