HURTIGRUTEN SHORE POWER AND HYBRID STRATEGY FOR PASSENGER SHIPS

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1 HURTIGRUTEN SHORE POWER AND HYBRID STRATEGY FOR PASSENGER SHIPS Tor Geir Engebretsen, COO/SVP Maritime Operations, Hurtigruten AS Workshop Sustainable Energy Supply & Innovative Solutions for Emission Reduction Improved Ports Cruise Line Collaboration, Bergen/Norway Bergen / Norway, November 8th-9th 2017

2 HURTIGRUTEN SHORE POWER AND HYBRID STRATEGY FOR PASSENGER SHIPS THE TRAVEL INDUSTRY POST-PARIS: THE POWER OF SUSTAINABLE ADVENTURES

3 Enjoy the most spectacular nature in the world - free from heavy fuel

4 LEGENDARY COASTAL ROUTE SINCE ships 34 ports Bergen-Kirkenes 2 calls a day days a year port calls per year Annual distance covered: nm Regularity: 98 % (YTD 2017)

5 WORLD LEADER IN EXPEDITION TRAVEL 2018: Expedition sailings to more than 200 ports in 28 countries worldwide Antarctica Chile & Argentina The Arctic Norwegian coast, Svalbard, Greenland, Iceland, Arctic Canada, Northwest Passage South America (both coasts), Amazon River, Caribbean, US East Coast, Europe Flexible fleet of explorer vessels: MS Fram MS Spitsbergen MS Midnatsol MS Nordstjernen MS Roald Amundsen (tbd 2018)

6 International shipping and aviation represent 8 percent of total emission Left unregulated we could make up 39% in 2050 (study by European Parliament)

7 POWER IS ESSENTIAL FOR SAFE OPERATIONS

8 We operate under extreme conditions and need to lean on proven power technologies

9 STABLE POWER SUPPLY IS ESSENTIAL - TO ALL PARTS OF OUR OPERATIONS Propulsion Manouvering/thrusters Operation of hotel Heating / AC Recycling heat from exhaust and coolingwater. Using seawater for cooling instead of AC when sea temp < 12C Cargo handling incl cooling and freeze facilities Fresh water treatment systems Black/grey water treatment systems Weather and governmental requirements with major impact on power consumption

10 RECENT ENVIRONMENTAL INITIATIVES Existing fleet Sailing on 500 ppm diesel (no Heavy Fuel Oil - HFO) Propeller changes Engine rebuilds/ De-noxing Lubricant optimalization Shore power Waste water management (grey water/black water) New builds Hybrid power Heat recovery

11 MS Roald Amundsen with HYBRID TECHNOLOGY: Battery pack peak shaving and on board charging

12 PREPARING FOR SHORE POWER PILOT PROJECT WITH PORT OF BERGEN

13 SHORE POWER Supply of electricity when docked, meaning less use of generators, less noise, less fuel and emissions in harbours Hurtigruten prepares most ships for shore power Project supported by government incentives A great opportunity in ports with longer stops (1 hour and more)

14 POWER SUPPLY CONCEPT NG3-technology, adjusted to Hurtigruten needs : «Plug & play» fast connections Plug is stored on car deck when not in use / takes limited space Connected outside the ship, not inside Moves automatically to loading position when connected May be operated by one single crew

15 SHORE POWER BERGEN Each day 1 Hurtigruten vessel is alongside Bergen for 5,5 hours (8 hrs winter) Power demand shore power: 1.0-1,6MW Potential for significant emissions reduction: Approx 150 tons CO2 and 3 tons NOx pr ship/year Low voltage solution 690V/50Hz, same as ships main switchboard. No need for shoreside frequency converter and onboard transformator Aim to connect in all port with more than 1 hour dockin time

16 ENVIRONMENTAL GAIN FROM SHORE POWER FOR HURTIGRUTEN: Annual emissions equivalent to cars saved

17 IMPORTANT TARGET REDUCE LOCAL EMISSIONS

18 PROJECT FINANCING Port side: Port to arrange onshore facilities Financial supported by Enova On board the ship: Hurtigruten to prepare each ship for shore power. Substantial investment per ship Supported by NOx fondet Pricing of power: Need to be on cost coverage basis (Hurtigruten cost for on board el production is 1 NOK kw/h)

19 SHORE POWER AND FUTURE COASTAL ROUTE - SOME CHALLENGES Hurtigruten needs: Standardized system in all ports. Local infrastructure for shore power like in Bergen: Is local power logistics prepared for shore power? Future: What about future plug-in hybrid vessels - needs X times more power than ordinary shore power Significant challenge to most local societies. Is shore power «for all» realistic?

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