Fuels of the future

What will come next after HFO?

Panel : Fuels of the future -What will come next after HFO?

Chair

Nikolaos Kyrtatos

NTUA

Introduction Trends in emissions regulations Conventional & alternative fuels production LSF/MGO: modifications needed, issues Alternative fuels & power options, LNG Engine issues with LSF, biofuels, gas Future fuels: Logistics, operation challenges

Engine Maker Oil Industry User / Operator Research Institute Engine Maker User / Operator

Kjeld Aabo Paul de Hoog Naoyuki Ohno Per Magne Einang Mikael Troberg Jorn Kahle

MAN DIESEL &TURBO SHELL

NYK LINE

MARINTEK

WRTSIL A.P. MLLER

Fuels of the Future What will come next after HFO.

Trends in emission regulation CIMAC 2010, Bergen

Kjeld Aabo
Marine Low Speed Copenhagen

MAN Diesel & Turbo

<1>

Marked demand to engine builders

Safety
Optimum engine layout High efficiency/low fuel consumption Low operation cost (MTBO) Reliability/availability Exhaust

gas emission consideration Todays driver of development

MAN Diesel & Turbo

<2>

IMO NOx Limit Curves Tier I, II & III

1990-1999 engines Tier I

- 15 %

- 20 %

Tier I: (global) Tier II: 2011 (global) Tier III: 2016 (ECAs)

- 80 %

MAN Diesel & Turbo

MEPC 57 Fuel-Sulfur Content Proposal

MAN Diesel & Turbo

Emission Trend
Emission Restricted Areas by IMO ECAs in 07/2009

Top Container Ports :

1. Singapore 2. China, Shanghai 3. China, Hong Kong 4. China, Shenzhen 5. South Korea, Busan 6. Netherl., Rotterdam 7. UAE, Dubai 8. Taiwan, Kaohsiung 9. Germany, Hamburg 10. China, Qingdao Most used trading routes Existing ECAs: Baltic Sea, North Sea Planned ECAs: Coasts of USA, Hawaii and Canada (2012 ) 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)

MAN Diesel & Turbo

International Shipping SOx, NOx, CO2 and GHG Emission

IMO emission legislation, the big challenges for international shipping SOx: Regulation decided NOx : Regulation decided NOx ECAs: Not decided CO2: Items discussed CO2: Design index EEDI CO2: Operational Index EEOI Market based instruments: Global bunker levy (tax) CO2 credits GHG

CO2

SOx

MAN Diesel & Turbo

Fuel cost versus CO2 emission

MAN Diesel & Turbo

Low sulphur fuel

Use of low-sulphur crude oil, but limited availability Blending of fuels is a possibility, and is done today Desulphurisation of HFO
According to the major fuel companies : Much better investment to build high-efficient refineries that can produce more valuable products such as gasoline, diesel and LPG than to build desulphurisation plants for HFO.

MAN Diesel & Turbo

MAN Investigation in Scrubber Technology

Objectives Participants Scrubber Goals PM trapping: >90% Test results PM trapping: 35% Ship test M.V. Banasol 7S50MC-C 9MW Ship test

Development Clean Marine and test of MAN Diesel scrubber for after-treatment

SOX removal: 80% (salts add.) >67% SOX removal: 73% 95% (salts add.)

Development and test of scrubber for after-treatment

Aalborg Industries Alfa Laval DFDS MAN Diesel

PM trapping: >75% SOX removal: >95%

PM trapping: 79% SOX removal: 100% (NaOH)

Tor Ficaria 9L60MC-C 20MW

APM Development and test of MAN Diesel scrubber for after-treatment and EGR

PM trapping: >75% SOX removal: >90%

PM trapping: 73% SOX removal : 96% (NaOH)

Alexander 7S50MC 9MW

MAN Diesel & Turbo

Aalborg Industries & DFDS Exhaust Gas Scrubber Retrofit Project

20MW MAN B&W two-stroke engine Operating in SECA on MDO Exhaust gas scrubber permits HFO operation Expected payback time less than two years

RO RO vessel M/V Tor Ficaria 10

MAN Diesel & Turbo

Sources of Bio Fuel Renewable / vegetable Oil

Castor Bean Soya
Consists of 40 50% usable Oil

Palm Oil

Rape Seed

MAN Diesel & Turbo

< 11 >

Brake 7L35MC-S - CHP Plant

MAN Diesel & Turbo

12

Bio fuels are a real alternative !

But you need a lot.

MAN Diesel & Turbo

< 13 >

Container Ships Gas as fuel

LNG fuel supply system

LNG tank Main Engine ME-GI

HFO tank ( shown only for size comparison)

LNG fuel supply system

Containment systems for LNG

IHI type B tanks low pressure tanks, BOR 0,2 %/day TGE type C tanks 4-9 barg pressure (up till 50 travelling days) BOR 0,210,23 %/day

MAN Diesel & Turbo

14

Components to be Modified: ME-GI Compared to a ME Engine

Exhaust receiver

Cylinder Valve block cover

Double wall gas pipes ELGI valve FIVA

MAN Diesel & Turbo

15

Selective Catalytic Reduction (SCR) Process

Exhaust gas
NO

40% urea solution CO (NH2)2 . 5(H2O)

NO2

N O

NH3

N
H

H H

N N O
H

N NH
H

N N N

N O

H H

N2 H2O 4NO + 4NH3 + O2 = 4N2 + 6H20 6NO2 + 8NH3 = 7N2 + 12H2O

L/72695-0.0/0302 (2160/PZS)

O
H

N N

MAN Diesel & Turbo

16

EGR Exhaust Gas Recirculation Ongoing full scale test 7S50MC.

MAN Diesel & Turbo

EGR Integration
Future perspective of EGR integration in engine design: 7S50ME-B9

MAN Diesel & Turbo

Safety Investigations

Engine room explosion study HAZID / HAZOP Double Wall Piping Engine Piping Vibrations Gas Pressure fluctuations Gas control simulation Gas / Fuel injectors reliability
Ventilation
Item Date

HAZID / HAZOP
Owners Class Ship Yard Engine Builder Engine Designer Other Subsuppliers

HAZOP 2006 HAZOP 2007

none none

DNV DNV ABS

HHI DSME SHI

HHI EMD Doosan Doosan

MAN Diesel MAN Diesel MAN DIESEL

Burckhardt Burckhardt Burckhardt

HAZOP 2007 Nov. BG,APM,SHELL,YLNG,Q-GAS, Teekay,BP HAZOP 2009 Jan. EXXON MOBILE HAZOP 2009 Jan. BG

ABS ABS

DSME SHI

Doosan Doosan

MAN DIESEL MAN DIESEL

Cryostar Burckhardt Cryostar Burckhardt

fwd

MAN Diesel & Turbo

Natural Gas Supply and Demand

ME-GI for propulsion of LNG Carriers

Source: Exxon Mobile Energy Outlook 2030 December 2009

MAN Diesel & Turbo

< 20 >

LPG is a By-product of LNG Production,

so LPG Production is not Driven by Demand

30% Increase of LPG production is expected in 2013.

How will this affect the LPG price?

MAN Diesel & Turbo

Diesel or Alternatives?
Fuel cells Nuclear power Kite Power Solar cells
Will take long time to develop , if ever.

Why is Diesel engines selected ?

High efficiency Low cost fuel used, easy fuel access High reliability and safety Low investment cost

Our Diesel will Prevail for many years, with different fuels.
33366965.2010.05.04 (OG/LS) MAN Diesel & Turbo < 22

ME-GI Development Plan

3336924.2010.04.28

(KEA/LSP)

MAN Diesel & Turbo

< 23 >

CIMAC Bergen 2010

We believe that next important fuel in the marine marked, will be LNG and LPG.

Thank you for your attention

MAN Diesel & Turbo

Conventional & alternative liquid & gas fuel sources and production to 2030
CIMAC World Congress, Bergen 2010 Panel Session

Paul de Hoog Shell Global Solutions International BV

Copyright of Shell Global Solution International BV. June 2010 1

Disclaimer statement
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on managements current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing managements expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Groups products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves;(k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this presentation. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document. The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil in place" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575 and disclosure in our Forms 6-K file No, 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1800-SEC-0330.

Copyright of Shell Global Solution International BV.

June 2010

Outline
Conventional & alternative liquid & gas fuel sources and production to 2030 - The Energy Challenge - Legislation will shape future marine fuels - How will the marine energy mix evolve?

THE ENERGY CHALLENGE WILL IMPACT MARINE FUELS

Surge in energy demand Supply will struggle to keep pace Environmental stresses are increasing

Copyright of Shell Global Solution International BV.

June 2010

COMPLEX ECONOMIC SIGNALS WILL HELP DEFINE MARINE FUEL EVOLUTION Will new refinery projects and expansions be delayed to take advantage of an expectation of lower materials costs and to avoid periods where demand growth is low ? Will Fuel Oil be converted to maximise middle distillate production ? Will refinery capacity additions and current infrastructure capability outpace demand growth through to 2015 and beyond ?
Copyright of Shell Global Solution International BV. June 2010 5 5

REFINERIES NEED INVESTMENT LEADTIME

Minimum lead time for implementation of projects in multiple refineries

Turnaround Feasibility& Engineering& cycle Scouting Construction (see Benchmarking) Project implementation
0 2 4 6 8

Refineries operate 4-6 year Turnaround cycles

10

12

14

16

Time [years]

We could find that when 2020 arrives much of the refining infrastructure may look as it does today.
Copyright of Shell Global Solution International BV. June 2010 6

INCREASED FOCUS ON ENVIRONMENTAL CONSIDERATIONS

Climate change is the next big challenge for shipping New designs & new practices required There are no silver bullets

Copyright of Shell Global Solution International BV.

June 2010

7 7

ENERGY DEMAND BY THE SHIPPING INDUSTRY THE PATH TO THE FUTURE IS NOT STRAIGHTFORWARD

Energy Source:
Hi Sulphur Sulphur Lo RFO RFO Gen 1 Gen 2 Bio Bio LS Wind Gas oil Nuclear LNG/CNG Solar Hydrogen

Engine design Efficiency

Exhaust Cleaning
Scheduling Scrubbing Catalysis Routing Legislation and consensus Carbon Capture Emissions Trading

Reduced environment al impact

Hull design

Copyright of Shell Global Solution International BV.

June 2010

8 8

FUTURE ENERGY SOLUTIONS WILL DEPEND ON:

Legislation and incentives that encourages investment in technological solutions Understanding how world energy demand will develop and how refiners will respond. The shipping industry and stakeholders appetite to tackle environmental stress with a wide range of measures

Copyright of Shell Global Solution International BV.

June 2010

Fuels of the Future

- Challenges of NYK Line -

Naoyuki Ohno
Corporate Officer Technical Headquarters NYK Line CIMAC Congress 2010 Bergen, 17 June 2010
1

Creation of measures for low-sulfur fuel Total reduction of emissions

- Not only SOx but also CO2 and NOx -

Assumptions
Vessels should have the following: Both residual fuel at global cap areas and distillate fuel at ECAs until 2020/2025. Only distillate fuel in all sea areas after 2020/2025. To establish proper operation procedures To modify machinery specifications
3

Low-sulfur-fuel Legislation
MARPOL
Global cap

Phase 1

Phase 2

Residual fuel
Global cap until 2020/25 ECA until 2015

Residual & Distillate Fuel

Distillate fuel
Global cap after 2020/25 ECA after 2015

EU, CARB 0.1%S 4

Low-sulfur-fuel Legislation
MARPOL
Global cap Modify spec.

Phase 1 Newbuildings
Residual + Distillate

Phase 2

ResidualNew design fuel

Existing vessels Retrofit

Newbuildings Distillate fuel

Outlines of Modification
Existing vessels Replace, retrofit and add on: Pipelines, machinery, tanks, safety & protection devices and instruments, lubricating oils, etc. Newbuildings Modify and newly design: Specifications of machinery, pipelines, arrangement and capacity of tanks, etc.

Additional cost
6

Main Points of Modification

For increasing MGO consumption
Increase capacity of MGO storage tanks (e.g. Modify existing HFO storage-tank arrangement) Separately arrange MGO transfer line to prevent contamination with HFO Increase capacity of MGO service tank

For properties of MGO

Replace/retrofit parts of existing oil pumps Replace/retrofit boiler burning equipment and instruments Add on chilling unit for MGO temperature control Add on safety & protection devices and instruments (e.g., double-shut valves, double-flame detector of boiler) Change grade of M/E cyl oil and/or G/E system oil
7

Burning Equipment

Outlines of Modification for Phase 1

Modification MGO CLR MGO Serv. TK New trans. line Additional MGO stor. TK MGO Stor. Tk

Boiler

System oil

G/E

Pump
Capacity up

Pump
Additional MGO Stor.Tk

HTR M/E
Cylinder oil HFO Serv. TK

Return

Pump

Pump

HFO Stor. Tk
8

Boiler

Outlines of Modification for Phase 2

CLR G/E Pump

MGO Serv. TK

MGO Stor. Tk

Pump
Additional MGO Stor.Tk

M/E
Return

MGO Serv. TK

Pump

Pump

MGO Stor. Tk
9

Impacts on Machinery
- Caused by properties of MGO Low lubricity - Sticking/wearing down of fuel-injection pump Low viscosity - Leakage from fuel-injection pump, oil-pump sealing Low flashpoint and high volatility - Risk of an outbreak of a fire High detergency - Clogging FO filter with sludge accumulated in pipelines
10

Leakage from pump sealing

Serious damage to plunger

Hard to find due to transparency

11

Data : 2010 JAN - APR

Correlation of Vis with HFRR *

650 600 550 500 450 400 350 300 250 200 0 1 2 3 Viscosity cSt 4

Above 460m (6 / 52 samples)

HFRRm

*HFRR : High Frequency Reciprocating Rig

- OEM recommendation Less than 460m (HFRR) - New ISO 8217 Less than 520m (HFRR) - Engine manuf. recommended Vis More than 2 cSt @M/E inlet
12

Advantage of MGO Use

Engine condition Maintain combustion chamber of the engine in good condition Less maintenance work and cost-savings - Extension of MTBO - Almost free of waste-oil treatment - Simple machinery arrangement in the engine room
(HFO purifier, heating steam, waste-oil treatment, etc.)
13

Exhaust Gas Cleanup Technology

- Scrubber as an alternative method -

Benefit - Lower fuel cost compared with MGO

Concern - Developing system - Criteria of discharge water - Extra space in the engine room Expecting development of scrubber which will be matched for our needs.
14

Summary
1, 2, 3, 4, 5, 6, 7, Proper operation procedures for changeover fuel should be established. MGO will be mainly used after 2020/25. Machinery specifications should be modified. Stable supply of MGO will be required. (300 mil tons/year?) Modification cost, namely environmental cost, is an essential investment for the company. MGO is partly an advantage for the engines. Development of a practicable scrubber as an alternative method is expected. Gas/dual fuel engines, and the infrastructure of LNG supply, as an alternative method, are also expected.

8,

15

Total Reduction of Emissions

- Not only SOx but also CO2 and NOx -

Ship Operation Improvement of

Solar Power Generation

Prompt Handling of Cargo

Engines

Energy Efficiency

Energy Savings

Energy Savings

Energy Savings

5%

1%

8%

16%

Ship Design

Energy Savings

27%
Other

Energy Savings

1%

Reduction of approximately 50%

16

Total Reduction of Emissions

- Not only SOx but also CO2 and NOx -

Solar power generation

SOLAR PANEL DC POWER CONVERTER DC AC AC

MAIN LINE (440VAC)

M/V Auriga Leader

17

Total Reduction of Emissions

- Not only SOx but also CO2 and NOx AMP: Alternative Maritime Power

Fixed or mobile

The NYK Group pioneered the development and application of the 6.6 kV AMP system at the port of Los Angeles, ahead of other companies.
18

Total Reduction of Emissions

- Not only SOx but also CO2 and NOx AMP: Alternative Maritime Power

The NYK Group has decided to equip all large container vessels w/ AMP. This system and method can improve the harbor environment.
19

Total Reduction of Emissions

- NYK Super Eco Ship 2030 -

Our concept ship of the future

20

10

Total Reduction of Emissions

- Load map for zero emission -

21

Thank you for your kind attention.

The Earth is Our Home

22

11

Fuels of the future what will come next after HFO Alternative fuels and power sours options Time span 2010 - 2030

Per Magne Einang Research Director MARINTEK www.marintek.com

CIMAC Bergen 2010
MARINTEK 1

Alternative fuels
Long list of alternative fuels: Bio fuel (fame) ( ) GTL (synthetic diesel oil) DME Hydrogen Gas (LNG, LPG) To make a difference the fuel have to be available world wide and be economical viable Based on that and the time frame in question, LNG is consider to be the only alternative fuel to MGO and HFO
MARINTEK 2

Large LNG terminals in Europe

MARINTEK

LNG distribution

Source: Gasnor

Existing ships for distribution of LNG in Norway Capacity of 7500 and 1100 m3 LNG

MARINTEK

Ship to ship LNG transfer p p

LNG transfer by hoses

MARINTEK

Storage of LNG on board the ship

MARINTEK

LNG powered RoRo freight ship (gas only)

Two ships under construction for delivery in 2011-12

Vacuum isolated pressure storage tanks a factor 4-5 times HFO

MARINTEK

Tailor made LNG Fuel tank systems

Storage factor 2-3 times HFO

Anchor handlers

Passenger ferries

Container carriers

Cruise ships

Oil Tankers

Ro-Ro vessels

...and many other sectors. Bespoke design. Under development now.

MARINTEK

Power source options - LNG

No obvious candidates to piston engines Fuel cells? could be possible as auxiliary power

MARINTEK

Gas engine concepts 4 stroke

Lean Burn spark ignited (gas only) Dual Fuel low pressure gas (5 bar) Both can meet IMO tier III and have a significant potential for GHG reduction (methane slip must be reduced) Dual Fuel high pressure gas (about 350 bar) Maintain diesel engine performance No methane slip Need performance. slip. SCR for NOx reduction to meet IMO tier III

MARINTEK

10

Gas engine concept 2 stroke

Dual Fuel high pressure gas (about 350 bar) Maintain diesel engine performance. No methane slip, GHG reduction in the range of 30% Need SCR for NOx reduction to meet IMO tier III Pumping LNG to 350 bar and evaporate is simple and with low energy requirement Flexibility in fuel mix y

MARINTEK

11

Is LNG economical competitive to HFO?

Natural gas prices (including LNG) has been reduced the last two years due to the introduction of shale gas in the US market Due to that LNG has improved its competitiveness to HFO For comparing fuel economy there two cost components for HFO to be considered: Cost purchase the fuel Cost for burning the fuel (levy, tax, operation of exhaust gas cleaning) and than the big question; what will be the price HFO in the future? LNG is competitive to HFO today in some areas and we believe that LNG will improve its competitiveness in the actual time frame considered p p

MARINTEK

12

Summing up
LNG is available world wide Small scale distribution by dedicated ships are available Storage technology for ships are available and under further development Gas engine technology is available for all types of piston engines, can meet the coming emissions li it and i t th i i i limits d contributes to a net reduction of GHG LNG has the potential to be economical competitive to HFO

MARINTEK

13

Engine problems and solutions with: LSF, BIOFULES, GAS, DME

Author: Mikael Troberg Wartsila Industrial operations / R&D Director Testing and Performance WRTSIL CORPORATION

Wrtsil

Cimac June 2010 / Mikael Troberg / Fuel impact June 2010 Cimac sw.pptx

Agenda

Engine problems and solutions with: LSF BIOFULES GAS DME

LSF

In general Wrtsil engines are flexible for using of different fuel qualities Reported field problems related directly to low sulphur operation have not been recorded

Min. viscosity limits for Wrtsil engine types before FIE:

Engine type Wrtsil 2 stroke engines Wrtsil 20 Wrtsil 26, 32, 38, 46CR, 46F Wrtsil 46*), 64 Wrtsil 32DF (main and pilot fuel) Wrtsil 34DF (main and pilot fuel) Wrtsil 50DF (main fuel / pilot fuel)
*) Conventional FIE

Limit [cSt] 2,0 1,8 2,0 2,8 1,5 2,0 2,8 / 2,0

Distillate fuel operation

Low flash point: Safety Aspect, the flash point of < 60 C

Low viscosity:

Leakage in the injection system and cavitations in fuel system

Compatibility: Poor compatibility with heavy fuel can lead to: clogging of fuel filters, increased sludge amount sticking of fuel injection pumps, deposit formation on the engine components. Lubrication oil: 2 stroke engines with a high BN cylinder oil: Hard calcium carbonate deposits on the piston crown. The deposits can be minimised by reducing the cylinder oil feed rate to the lowest possible safe level.

Field experience, ultra low sulphur diesel fuel

Documented field experience (ULSD), example: W 12V32 17,500 service hours Sulphur content of ~ 10 50 mg/kg Standard stellite exhaust valves / valve seats designed for distillate fuel operation Findings: No marks of exhaust valve / valve seat brinelling No claims about excessive wear in the fuel injection equipment Lubricity additives can be added if the specified limit value is exceeded. Lubricating oil BN recommendation: 10 15 mg KOH/g

Agenda

Engine problems and solutions with: LSF BIOFULES GAS DME

Liquid Bio Fuels

Liquid Bio Fuels (LBF)

So far the experience exists from power plant applications only: Crude Vegetable Oil Bio Diesel

Bio mass
Resources Conversion technology End Fuel

Oil Palm Jatropha seed Crops Rape seed Wheat Maize Potato Wood Willow/poplar Pine/Spruce Waste fats/oils Straw Municipal waste Hydro Wind Solar Marine

Pressing Pressing Esterification Hydrolysis Fermentation Pyrolysis Gasification Digestion Combustion

Crude Vegetable Oil Bio-oil Bio Diesel DME Ethanol Methanol Bio Methane Hydrogen Internal Combustion engine Fuel Cell Vehicle

Residues

Battery Vehicle Electricity Train

Straight liquid bio fuel utilization

Unrefined Vegetable Oil Food industry

Refinery process Waste oil Refined oil Refinery by-products

Liquid Bio Fuel Power Plant

Power & Heat

Production of fuel; our focus is to require as little refining as possible.

Comparison of fossil liquid fuels and liquid bio fuels

Distillate fuel (MDO, MGO) Heavy fuel

Biodiesel

Straight bio fuels

Liquid bio fuels

Advantages
+ No sulphur oxide emissions + Reduction in CO2 emissions + Lower particulate emissions + Bio diesel mixes well with petroleum diesel + Good lubrication properties

Disadvantages
- Slightly increased NOXs - Contains ~10% less energy than petroleum diesel - Variations in ash content - High acid number (with some types) - Water separate from bio diesel more difficult - Solvent characteristics may degrade rubber and attack certain metals - Can foster heightened microbial activity - Not suitable for long term storage (Acid number increases, oxidation takes place) - Cold flow properties can be a problem

11

Wrtsil 10 June 2010 2007 (updated 14 October 2009) Liquid Bio Fuels in Marine Applications - Kai Juoperi 19 November

Characteristics of vegetable oils

Varying characteristics Ash content
Can vary significantly in different LBF qualities Influence on particulate emissions

Palm Oil 22 C

Palm Oil 60 C

Viscosity is highly temperature dependant

Too cold temperature -> wax formation Too high temperature -> polymerization

Phosphorus content
Influence on the lifetime of DeNOx & OxiCat

Acid number
Influence on fuel oil system wear & tear
Palm Stearin 22 Palm Stearin 60 C C

Mixing of liquid bio fuels and fossil fuels

Straight liquid bio fuel and heavy fuel: Straight LBF operating temperature is about 60 70 C HFO requires about 100 140 C Blending will mean that straight LBF fraction is heated to a higher temperature than it should Result: Risk of polymerization Straight liquid bio fuel and distillate fuel: LBF operating temperature is about 60 70 C MDO / MGO requires max. 45 temperature C Blending will mean that MDO / MGO fraction is heated to a higher temperature than it should Result: Risk of cavitation, since light fractions are evaporating / boiling

Agenda

Engine problems and solutions with: LSF BIOFULES GAS DME

Gas

Reported field problems on Wrtsil gas engines have not been experienced as the engine is optimized by choise of component material and lubricating oil for : SG engines Exhaust valve Lubricating oil Stellit 4-7 TBN DF engines Stellit / Nimonic 4-7/10-20/30-55 TBN

15 Wrtsil 10 June 2010 Mikael Troberg NOx reduction technologies.pptx

Agenda

Engine problems and solutions with: LSF BIOFULES GAS DME

Dimethyl ether (DME)

Properties: Explosion limit: 3,4 17% High cetane number: 55 60 Energy content about half of diesel fuel (28,8 MJ/kg) Good combustion properties Viscosity: 0,19 cSt @ 25 0,17 cSt @ 40 C, C Poor lubricity properties Corrosive Dissolves many rubber and plastic materials Liquefies at pretty low pressure Poor cold properties Sensitive for bacterial growth in fuel system

17

Wrtsil

Dimethylether (DME)
Manufacturing: Fischer-Tropsch process by utilizing methane, black lye, biomass or coal Synthetic fuel: Manufacturing decreases energy balance Emissions: Higher NOx than with fossil fuels No particulate emissions No SOx emissions

Bio diesel and fossil fuels: Bio diesel and fossil diesel fuels (MDO / MGO) are considered to be compatible If bio diesel is mixed with heavy fuel, precipitation of asphaltenes can take place in case heavy fuels stability reserve is low -> compatibility test needed

18

Wrtsil

Thank You!

By Jrn Kahle. Maersk Maritime Technology

"Fuels of the future - What will come next after HFO" Time span 2010-2030 Presented at CIMAC Congress 2010. Bergen.

What will come next after HFO 2010-2030

Future fuels. LSF and alternatives

Slide no. 2

Future fuels. LSF and alternatives

LSFO MGO LNG FAME
CONs Fuel LSFO (1,0 % S) is fuel produced from sweet crude. There will be enough LSFO in the market to cover the increased demand toward 2015. Coping with environmental constraints.
Sulphur, NOx (engine design)

PROs

CTL/GTL HVO/BMTL Nuclear Wind/Solar

No imidiate investments required LSFO not in 0,1% S version Extra requirements 2015-2020 (approx 20 mill tons per year) cannot be covered by LSFO. Will have to covered by MGO.

Logistics Limited logistic and operational challenges Operation challenges Opportunities

Slide no. 3

Future fuels. LSF and alternatives

LSFO MGO LNG FAME
CONs PROs Coping with environmental constraints.
Sulphur, NOx (engine design)

Fuel

MGO (0,1% S) is fuel supplied from the general distillate pool.

CTL/GTL HVO/BMTL Nuclear Wind/Solar

No imidiate investments required Only minor operational issue expected With current split. The extra cost for the shipping industry would be in the order of 50.000.000.000 USD per year from 2020 onwards. (+200 USD/tons)

Logistics Limited logistic and operational challenge Operation challenges Can MGO be produced cheaper with new yet Opportunities undiscovered technology?

Slide no. 4

Future fuels. LSF and alternatives

LSFO MGO LNG FAME CTL/GTL HVO/BMTL Nuclear Wind/Solar
CONs PROs Fuel LNG. Liquefied Natural Gas. Some view LNG as the bridge fuel to a future non fossil fuel society. Clean fuel. Coping with most environmental constraints.
Sulphur, NOx (engine design), future particulate matter. Lower CO2

Fuel flexible engine tech. available. CH4 slip (GHG factor 20 higher than CO2) Space requirement (3X HFO) Efficiency. Well to funnel.

Logistics Need for infrastructure. Operation challenges Safety issues (high pressure gas injection) Opportunities Bunker process

Slide no. 5

Future fuels. LSF and alternatives

LSFO MGO LNG FAME CTL/GTL CONs HVO/BMTL Nuclear Wind/Solar
Fuel FAME: Fatty Acid Methyl Esther. FAME is today used by the oil industry as blending component in automotive diesel. FAME is today produced from vegetable oils like rape seed and palm oil.
Drop-in quality. Currently used in AGO. Low sulphur High lubricity Low CO2 Potentially produced from algae

PROs

Logistics Operation challenges Opportunities

Sustainability Availability, Price, Limited logistic challenge Storage stability Equipment impact NOx, Particulate matter ?

Slide no. 6

Future fuels. LSF and alternatives

LSFO MGO LNG FAME CTL/GTL HVO/BMTL CONs Nuclear Wind/Solar
Fuel CTL: Coal to Liquid GTL: Gas to Liquid HVO: Hydrogenated Vegetable Oil BMTL: BioMass to Liquid Hydrocarbon synthesized by Fischer-Tropsch. Resembles fossil fuel. Proven Technology Drop-in quality Low sulphur High cetane number Lower CO2 for some of the products Cost Efficiency. Well to funnel?

PROs

Logistics Limited logistic and operational challenges Operation challenges NOx, Particulate matter Opportunities

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Future fuels. LSF and alternatives

LSFO MGO LNG FAME CTL/GTL HVO/BMTL Nuclear Wind/Solar
CONs PROs Fuel Nuclear power as propulsion for commercial vessels has been parked in the doghouse for decades. The technology however is fully developed for warships. Clean No emissions No infrastructure needed Technology fully developed Nuclear waste Safety Security Cost

Logistics Political environment Operation challenges Opportunities

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Future fuels. LSF and alternatives

LSFO MGO LNG FAME CTL/GTL HVO/BMTL Nuclear Wind/Solar
CONs PROs Clean No emissions No new infrastructure required Cost Capacity Reliability Fuel Sails. Flettner rotors Solar panels.

Logistics Technology breakthrough? Operation challenges Opportunities

Slide no. 9

What will come next after HFO 2010-2030

The most obvious answer:

HFO
With NOx reduction. EGR, SCR or water injection With SOx scrubber. Wet or dry. Open or closed loop And an emerging patchwork of the other alternatives

Slide no. 10