Exploring the LNG Option for OSVs

Terje Nordtun Wrtsil

OSV BRAZIL 22nd 23rd May 2012

1 Wrtsil Exploring the LNG Option for OSVs OSV Brazil 2012

Contents 1. Introduction why use LNG? 2. Dual Fuel Engine Technology

features and benefits

3. LNG Storage and Handling

- Wrtsil LNGPac

4. Proven Vessel Solutions

- arrangement, references, operational experience

5. Conclusion

Wrtsil

1. Introduction

Why use LNG?

Wrtsil

Factor trends: Environment

Wrtsil

Factor trends: Environment

LOCAL

LOCAL

NOx
LOCAL

Acid rains Tier II (2011) Tier III (2016)

SOx
GLOBAL

Acid rains Sulphur content in fuel

Particulate matter

Direct impact on humans Locally regulated

CO2

Greenhouse effect Under evaluation by IMO

Wrtsil

NOx reduction IMO requirements

Specific NOx emissions (g/kWh) 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Rated engine speed (rpm)

Tier I
Ships built 2000 onwards Engines > 130 kW Retrofit: Ships built 1990 2000 Engines > 90 litres/cylinder and > 5000 kW

Dry/Wet Methods

Tier II (global 2011)

Ships built 2011 onwards Engines > 130 kW

Selective Catalytic Reduction

Tier III (ECAs 2016)

Ships in designated areas, 2016 onwards Engines > 130 kW

Wrtsil dual-fuel technology

Wrtsil

Emission Control Areas

Most used trading routes

existing ECAs: Baltic Sea, North Sea planned ECAs: Coasts of USA, Hawaii and Canada discussed ECAs: Coasts of Mexico, Coasts of Alaska and Great Lakes, Singapore, Hong Kong, Korea, Australia, Black Sea, Mediterranean Sea (2014), Tokyo Bay (in 2015)

Wrtsil

Factor trends: Fuel Availability and Prices

35
LNG Japan average [USD/MBtu]

30 25 USD/MBtu 20

NG Henry hub [USD/MBtu] HFO 380cst Rotterdam [USD/MBtu] MGO Rotterdam [USD/MBtu]

15 10 5

0
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 Fe 7 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 Fe 0 b1 Ju 1 n11
Sources: www.lngoneworld.com, www.bunkerworld.com, LR Fairplay
8 Wrtsil

2. Dual Fuel Engine Technology

Features and Benefits

Wrtsil

Gas burning technologies

GAS-DIESEL (GD) DUALFUEL (DF)

1987

1992

1995

SPARK-IGNITION GAS (SG)

10

Wrtsil

Dual-fuel engine - operating principle

Gas mode:
Otto principle Low-pressure gas admission Pilot diesel injection
Ex. In. Ex. In. Ex. In.

* ** * * ** * * *** * * *

*** *** * *

Intake of air and gas

Compression of air and gas

Ignition by pilot diesel fuel

Ex.

In. Ex.

In. Ex.

In.

Diesel mode:
Diesel principle Diesel injection

Intake of air

Compression of air

Injection of diesel fuel

11

Wrtsil

Dual-Fuel Engine Portfolio

20DF 6L20DF 1.0 MW 8L20DF 9L20DF 6L34DF 9L34DF 12V34DF 16V34DF 20V34DF 50DF 6L50DF 8L50DF 9L50DF 12V50DF 16V50DF 18V50DF 0
12 Wrtsil

34DF

17.55 MW 5 10 15

Emission advantage
Emission values [%] 100 90 80 70 60

-25%

-85%

50 40

CO2 NOx SOx Particulates

30

-100% -100%
Dual-Fuel engine in gas mode

20 10 Diesel engine 0

13

Wrtsil

Dual-Fuel advantages
Main advantages of the Dual-Fuel 4-stroke engine compared to SG: Redundancy, backup without interruptions in power or speed. Able to operate on liquid fuel outside ECA-area Simple system, no PTI/take me home or double gas system needed. DP class fulfilled with single tank/gas supply system Operational flexibility - Vessel re-routing possible, gas supply not a limitation

14

Wrtsil

Dual-Fuel applications - References

Power Plants

Merchant

Offshore

Cruise and Ferry

Navy

DF Power Plant 51 installations 186 engines Online since1997

LNGC 108 vessels 429 engines Conversion 1 Chem. Tanker 2 engines conv. Complete gas train Complete design

PSVs/FPSOs 20 vessels 71 engines Online from 1994 New orders: Harvey Gulf; the first 4 LNG-PSV to be operated in the Gulf of Mexico!

LNG ferries 1+1 vessels 4 engines per vessels Complete gas train 2800 passengers In service in 2013

Coastal Patrol Coming

4 segments

177 installations

> 5000000 running hours

15

Wrtsil

3. LNG Storage and Handling

Wrtsil LNGPac

16

Wrtsil

LNG storage Volume

STORAGE VOLUME (RELATIVE)

Fuel
4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0
MDO LNG (10 bar)

Tank

Tank room

17

Wrtsil

LNG system in Principal

LNG filling line Tank room

Pressure build-up circuit

Stop and Master valve

Evaporator LNG tank

Water /glycol Gas Valve Unit (GVU)

18

Wrtsil

Wrtsil LNGPac: A turn key solution

Auxiliary equipment room

Tank room All cryogenic valves Length minimized

19

Wrtsil

Proven Vessel Solutions

Arrangements References Operational experiences

Offshore supply vessel arrangement

21

Wrtsil

Wrtsil LNG PSV

22

Wrtsil

Eidesvik Pioneers in LNG operation

Operational experience with OSVs powered by LNG: (all vessels are of Wrtsil design and equipped with Wartsila DF engines)
Viking Energy From April 2003

Viking Queen From January 2008

Viking Lady From May 2009

Viking Prince From March 2012

23

Wrtsil

The first LNG Powered OSVs Delivered 2003 Main Engines: 4 x Wrtsil 6L32DF Operating in the North Sea for Statoil

Stril Pioner

Viking Energy
24 Wrtsil

Operational Experience - Viking Energy

Gas mode is the normal operational mode, contributing to 97 % of the total energy production onboard. Diesel mode is only required during LNG refueling, certain minor preventive maintenance operations, or if triggered by alarms. Viking Energy has been 9 years in operation without one single hour of technical off-hire caused by the gas system on board.

25

Wrtsil

Dual Fuel Operation and Maintenance

Quote from Eidesvik: LNG and natural gas system proven very reliable. Scavenging air channel after 14 000 hours operation Maintenance interval is now set to 25 000 hours

26

Wrtsil

LNG Powered OSVs in Operation

Viking Queen - 2008 Viking Energy - 2003 Stril Pioneer - 2003

Viking Lady - 2009 Skandi Gamma - 2011 Normand Arctic- 2012

All equipped with Wrtsil DF engines

Viking Prince - 2012
27 Wrtsil

LNG OSVs on Order with Wrtsil DF

1 x PSV for Eidesvik Offshore

1 x PSV for REM Offshore 4 x PSVs for Harvey Gulf

28

Wrtsil

Conclusions The facts:

LNG is an environmental friendly fuel reducing shipping emissions Use of LNG as fuel will also reduce fuel cost Wrtsil has proven solutions for complete LNG propulsion systems including storage and handling onboard ships Application of DF engines gives high flexibility and redundancy and is the preferred solution for OSVs The Wrtsil DF technology is well proven with more than 5.000.000 accumulated running hours

29

Wrtsil

Thank you!

30

Wrtsil