Alternative Fuels for Maritime Transport Gas Fuelled Ships Dag Stenersen, MARINTEK, Trondheim, Norway

Sulfur Regulation on Baltic Sea. Hearing on Scenarios for The Mid-Nordic Cargo Transport, June 7th, Sundsvall

Norsk Marinteknisk Forskningsinstitutt

Trondheim Norway

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Presentation outline

• Background − Environmental challenges and emission restrictions at sea − Needs for alternative fuels (to replace HFO)

• LNG fuel infrastructure – bunkering logistics − ”Small scale LNG” and Gas fuelled ships

• Gas fuelled propulsion machinery − Natural Gas fuelled marine engines − LNG fuel systems

• Summary and conclusion

Global shipping – Regional and local challenges

Emission Control Areas (ECA)

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IMO MARPOL Annex VI - SOx emission limits Stricter IMO limitation on SOx

Global sulphur limitations  Global cap from 4,5% to 3,5% effective from 1. January 2012  Global cap from 3,5% to 0,5% effective from 1. January 2020 SECA (Sulphur Emission Control Area) limitations*  New sulphur limit from 1,5% to 1,0 % effective from 1. March 2010  New sulphur limit from 1,0% to 0,1 % effective from 1. January 2015 PM (Particulate Matter) regulated indirectly by the sulphur reduction

*(SECA=ECA) 7

IMO MARPOL Annex VI - SOx emission limits Stricter IMO limitation on SOx

Global sulphur limitations  Global cap from 4,5% to 3,5% effective from 1. January 2012  Global cap from 3,5% to 0,5% effective from 1. January 2020 SECA (Sulphur Emission Control Area) limitations*  New sulphur limit from 1,5% to 1,0 % effective from 1. March 2010  New sulphur limit from 1,0% to 0,1 % effective from 1. January 2015 PM (Particulate Matter) regulated indirectly by the sulphur reduction

*(SECA=ECA) 8

LNG as fuel may be a cost efficient way to meet environmental challenges for shipping

Fuel price development • LNG trade are increasing • Major change in prizing and type of contracts. • Traditionally, LNG trade was based on long-term contracts with a prizing model linked to crude oil prize. • Today: Liberalization of gas markets in North America and some European countries allowed the emergence of new pricing rules for natural gas, and shortterm and spots markets are developing • Shale gas production increases and keep LNG prices low

Increasing price gap

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Presentation outline • Background − Environmental challenges and emission restrictions at sea − Need for alternative fuels (to replace HFO)

• LNG fuel infrastructure

– bunkering logistics

− ”Small scale LNG” and Gas fuelled ships

• Gas fuelled propulsion machinery − Natural Gas fuelled marine engines − LNG fuel systems

• Summary and conclusion

Building competence

R&D projects at MARINTEK 1980-2010

• • • •

• Infrastructure projects

Basic research on combustion Lab. infrastructure Engine development projects Demonstration projects

− − − −

Rules and regulation Gas infrastructure Feasibility studies, Market studies

• Gas fuelled ships, concept development • RORO, ROPAX, Bulk and tank ships

Kystgass

1980

1990

2010

2000

R&D results - Industry and commercialisation projects

•

Gas Engine • Rolls-Royce, Wärtsilä • Volvo, Scania, Perkins

•

Small scale LNG chain

• • •

Gasnor, Skangass, Statoil, Aga Industry Maritime

• •

Ship owners, yards, Ship Design and equipment industry

Eidsvaag

Norlines

Norwegian LNG infrastructure 1998

LNG production plant Truck terminals

Small LNG import from Germany, Poland, Finland

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Small scale LNG distribution system in Norway Covering the coast of Norway • LNG source − 4 small scale LNG production plants, 10'-300' ton/year − Total capacity 450' ton/year

• LNG distribution − Distribution of LNG to regional/local receiving terminals − Coastal tankers (1000 m3 – 7500 m3) − Trailers (50m3)

•

LNG receiving terminals

(~ 40)

− 100m3 - 6500m3 LNG − Ship terminals (~ 10) − Other terminals (~ 30)

Source: Gasnor, Skangass, MARINTEK 17 17

Gas fuelled ferry connections Lødingen- Bognes (2) (2012)

Bodø-Lofoten (2) (2012)

Flakk-Rørvik (3) Molde-Vestnes (3)

Halhjem-Våge (1) Halhjem-Sandvikvåg (3) Arsvågen-Mortavika (3) Stavanger-Tau (2) (2013)

Oslo-Nesodden (3) (passenger ferry) 18

Gas fuelled ships in operation • 28 gas fuelled ships in operation: (Dec 2011) − − − − −

Ferries (16) Offshore support vessels (6) Coast guard vessels (3) Product tanker (1) LNG tanker (2)

• 28 gas fuelled ships under construction More than 40 LNG fuelled ships by 2012

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LNG in short-sea shipping in Norway Production- Infrastructure – bunkering- use

Small scale LNG production, Skangass

Receiving terminal 1500 m3

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Bunkering issues

LNG in short sea shipping – bunkering alternatives

Bunkering from trailer

Ship bunkering terminal, supply vessel (CCB)

Ship bunkering terminal, Ferry (Halhjem)

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Bunkering MT Bit Viking with loading arm

Source: Skangass

Ship to Ship transfer Bunkering of Coral Methane by Pioneer Knutsen at Kollsnes

Høegh Galleon(87.000m3) and Pioneer Knutsen(1.100m3). Summer 2007, (Gasnor)

Source: Gasnor

Bunkering experience in Norway • Gasnor: More than 40.000 loading/unloading/bunkering operations (2003-2010) • Total in Norway: 50-60.000 operations (estimate) Safety record: • No serious leaks are reported involving LNG release from hoses • Smaller leaks observed on hoses due to wear and tear (gas phase leaks, no LNG release) • LNG leaks from couplings are observed (LNG drip due to cold contractions during filling).

Important issues related to LNG bunkering • Safety related to gas leak − Cryogenic effect − Ignition, explosion, fire

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• Environmental issues − Methane slip

• Require efficient bunkering operation due to: − Short port calls − Simultaneous loading/ unloading and bunkering − Minimize purging

Rules and regulations for safe operation:

• Design and construction to minimize risk − Ship system − Land based systems

• Bunkering procedures − Company specific – approved by NMA

• Education and training of personnel − No specific requirements exist

Rules and regulations - Gas fuelled ships IMO-guidelines • IMO – Interim Guidelines on safety for natural gas-fuelled engine installation in ships, approved in 2009 − BLG 13 (2009) agreed to the draft Interim guidelines − (BLG= Sub-Committee on Bulk Liquids and Gases )

− MSC 86 (2009) approved “Interim guidelines”. − (MSC = IMOs "Maritime Safety Committee", 86. session)

• Classification Societies, (DNV, ABS, GL, LR, BV, ..) − Gas fuelled ship code

• IMO IGF code in progress: − International code for gas fuelled ships – IGF - 2014 (IGF code=International Code of Safety for ships using gas or other low flash-point fuels)

MEPC - Marine Environment Protection Committee IGC Code - Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk 27 27

National Authorities, Norway

Ships • Norwegian Maritime Authorities, (NMA), − Regulation (2005)

Land based • The Directorate for Civil Protection and Emergency Planning (DSB) − "Guideline related to refuelling, december 2011 − § 15.5 Specific requirement on bunkering systems for passenger ships – not allowed with passengers on board during bunkering

Presentation outline • Background •

− Environmental challenges and emission restrictions at sea − Need for alternative fuels (to replace HFO) LNG fuel infrastructure – bunkering logistics” − Small scale LNG” and Gas fuelled ships

• Gas fuelled propulsion machinery − Natural Gas fuelled marine engines − LNG fuel systems

• Summary and conclusion

Development of gas fueled marine engines • Started in 1980 to develop engines for LNG carriers utilizing boil-off gas as fuel • Commercial engine development started 1984 - resulting in 3 engine concepts released 1988-1996: − Spark Ignited Lean Burn engine (Otto cycle) − Dual fuel engine (Combined Otto/Diesel cycle) − High pressure direct injection engine (Diesel cycle)

• Application – stationary power and heat generation (COGEN) • First marine application in 2000 – The “prototype” Gas fuelled ship “MF Glutra” • 2003: Commercial market growing from the Small scale LNG project −

Engine and fuel system development continues to improve performance and safety for marine applications

• 2011: Fast growing interest in deep-sea shipping applications − − −

Driven by emission control legislation and fuel cost Large slow speed engines under development New ships and retrofit installations in existing vessels

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Propulsion system arrangements and fuel systems

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LNG fuel system

The challenges are handling and storing LNG onboard: - Volume/space - Safety - Infrastructure Vacuum isolated pressure storage tanks – a volume factor 4-5 times of MDO/HFO 33 33

Exhaust emission Natural gas vs MDO

g/kWh

SO2 6 4 2

 Sulphur emission is eliminated

0 MDO 1% S

natural gas

g/kWh 0,4

Particulates

0,3

 Particulate matters is close to zero

0,2 0,1 0 MDO 1% S

 CO2 is reduced by 26% Due to unburned methane the net reduction of greenhouse gases are in the range of 0% -15% for sailing ships today

natural gas

g/kWh

800

CO2

600 400 200 0 MDO 1% S

natural gas

g/kWh

 NOx is reduced by 80-90%

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NOx 12 6

Source: Rolls-Royce Marine

0 MDO 1% S

natural gas

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Summary and conclusion  Norway has developed a small scale LNG infrastructure for gas ships and more than 28 gas fuelled ships are today in operation in Norway and will increase to more than 40 ships in 2012.  Gas fuelled ships offer significant emission reductions compared to traditional marine fuels and can contribute significantly to reduce local and regional environmental problems.  Building LNG infrastructure and securing effective bunkering logistics is the main challenge and critical success factor for LNG fuelled ships.  LNG can be cost effective compared to the traditional marine fuels.  Technology is in place – but is continuously improved. (LNG bunker tanks, Gas engines, etc.)  Standardized interface solutions, safety measures and procedures must be developed.

LNG is one of the most promising alternative low carbon marine fuels in the world today

NOx < 2 g/kWh SOx ~ 0 PM ~ 0

Thank you for your attention !

[email protected]

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