Seca seminar 2013 stena - per stefenson

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Methanol as the future fuel for shipping Maritimt Forum Oslofjorden 20 June 2013 Per Stefenson, Stena Rederi AB

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Transcript of Seca seminar 2013 stena - per stefenson

Page 1: Seca seminar 2013   stena - per stefenson

Methanol as the future fuel for shipping

Maritimt Forum Oslofjorden

20 June 2013

Per Stefenson, Stena Rederi AB

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Short Sea Shipping routes

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Sulphur regulations in SECA

We have studied 4 different ways of meeting the new sulphur regulation

1. Run on Marine Gas oil with 0,1% sulphur

2. New types of fuel, LNG or Methanol

3. Install exhaust gas cleaning equipment, Scrubbers

4. Reduce operations and adjust to the new situation

The solution will probably be a combination of the alternatives above

3

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With adding one oxygen atom a new substance, easier to handle than LNG, is created

Natural Gas (LNG) Metanol

H

HH

HC

Methane CH4 CH3OH

H

HH

H

O

C

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Methanol is used as a fuel already today – but in limited areas

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Methanol as marine fuel

• Availability, distribution and storage• Engine technology and adjustment to the ship• Environment and cost benefit• Safety and regulations

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Crude oil well head price

115 $/bbl

843 $/ton

Crude landed (WTI/Brent approx)

119 $/bbl

872 $/ton

MGO port price

0.062 €/kWh

1070 $/ton

Natural gas well head price

0.010 €/kWh

183 $/ton Crude eqv.

LNG cost ex works

0.02 €/kWh

345 $/ton MGO eqv.

LNG along side Göteborg

0.046 €/kWh

845 $/ton MGO eqv.

LNG FOB Zeebrugge

0.03 €/kWh

518 $/ton MGO eqv.

Natural gas well head price

0.010 €/kWh

183 $/ton Crude eqv.

Methanol cost ex works

0.025 €/kWh

432 $/ton MGO eqv.

Methanol along side Göteborg

0.044 €/kWh

805 $/ton MGO eqv.

Methanol produced from forest products

0.072 €/kWh

1244 $/ton MGO eqv.

HFO port price

0.042 €/kWh

716 $/ton

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Methanol as a marine fuel Conversion factor energyequivalence Methanol andMarine diesel oil

▪ Exhaust emissions – Methanol equivalent to LNG (SOx, NOx, PM)

▪ GHG– Methanol leads towards Zero vision. (Bio- and electro generated)

▪ Energy security – diversifies Europe’s energy imports

▪ Economy per ship – ~4 million USD of added yearly fuel cost avoided

Advantages for EuropePrice comparison

$ per tonne of fuel oil energy content, Europe, average spot price, 2012 YTD

645

925

369

0,1% Marine Diesel Oil

721

352

+12%

Methanol equivalent marine diesel oil

-22%

1% Fuel Oil

Conversion add on Price on the market

X

x2.05

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Methanol is a solution for green shipping

Similar positive reductions as LNG in terms of GHG but no methane slip Similar positive reductions as LNG in terms of Nox & Sox and particles Can be produced from various feedstock Green energy source for the future including CCU (Carbon Capture and Use)! Infrastructure and safety similar to ethanol and oil Liquid – no high pressure or cryogenic storage required Big commodity (55 million ton/year) Conversion to dual fuel engines of existing vessels possible at low cost Bio degradable

But Low flashpoint fuel Toxic Double volume vs Diesel

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Methanol leads towards the zero vision

From Swedish Ship-owners´ research strategy

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Renewable energy + CO2 + H2O

= Methanol

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Conversion from HFO to LNG.

BIT VIKING.

Conversion cost; 1000 EURO/kW

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Methanol Conversion cost; 300 Euro/kW Comparable with Scrubber

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Tests on Stena Scanrail

SPIRETH

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Stena Scanrail

SPIRETH – 2012-01-26

SPIRETH - Stena ScanrailLooking aft at new aux engine room

WT door to

ER

Fuel treatment roomMethanol to OBATE upgrade Auxillary Engine Room

2 x Volvo Penta D13 MG – DME version

SPIRETH

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Stena Scanrail

SPIRETH – 2012-01-26

SPIRETH - Stena ScanrailLooking aft at new aux engine room

WT door to

ER

Fuel treatment roomMethanol to OBATE upgrade

Auxillary Engine Room2 x Volvo Penta D13 MG – DME version

Methanol supply double walled pipe

OBATEDouble walled piping

Ventilation

SPIRETH

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Next step;Full conversion, Gothenburg - Kiel

90.000 Cars90.000 Lorries

Lifted from the roadevery year

2 X

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Methanol Conversion scope

Interface Ship Automation System

Engine Automation System

Engine related updates:Cylinder headsFuel injection injectorsFuel pump plungersFuel injection high pressure piping

Update of Vessel Automation System

Ventilation System

Inerting System

HFO to MeOH fuel tank adaptation

High Pressure methanol pump

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Stena’s global methanol project Initial timeframe for converting Stena’s SECA fleet

Number of ships converted(estimate) 25

20181

20143

201510

201620

2017

800

400

125

25

1,000

Methanol required for fuel

Thousand tonnes of methanol

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THANK YOU

Per Stefenson, Stena Rederi AB

Tel +46 704 855 125

[email protected]