End users perspective

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1 End users perspective Per Stefenson Stena Teknik

2 Deployment of innovation

3 Typical project

4 Stena Teknik Tanker Newbuilding projects Panamax dwt MR dwt Suezmax dwt Aframax Ice Class 1A Super dwt Panamax Ice Class 1A dwt Aframax Ice Class 1A dwt

5 Technology improvement

6 Energieffektivisering

7 P-Max Air

8 P-Max Air

9 Fuel Efficiency Project Energy saving Estimated cost 1 Aurora Take off nozzle on thrusters + new propellers 2 Aurora and Mercandia VI Powered by re-chargeable batteries instead of diesel-gensets 3 Hybrid Power management system to be arranged to equlize power peaks during operation. Ex batteries could be utilized instead of adding diesel gensets needed for power peaks. Concept study for different vessels to evaluate possible savings. 4 Reduction of air resistance Study including CFD calculations for evaluating arrangement of superstructure 5 Optimal bulb design Changed operational profile for a vessel could result in a need to alter the bulb design to reduce the wave resistance. 6 Propeller design at reduced speed Reduced speed leads to less loaded propeller blades. Taking off two blades of four could give higher propulsion efficiency and less fuel consumption 15% 4 MSEK No exhaust Abt 1% Abt 3% Abt 3% 25MSEK/ vessel 4MSEK 0,5MSEK 3MSEK 0,3MSEK

10 Examples of Started ESP Projects: - Frequency controlled Pumps and Fans. - Installation of propellers with new design, higher efficiency. - Installation of different types of ETA Pilots. - Installation of Exhaust boilers. - Sun Screen film on windows. - Underwater area refreshment, keep the hull in best shape. - Upgrade of fluorescent-lamp eq to new electronic ballasts. - Main Engine Optim. (TC, Fuel PP, Timing, Scav.Air Temp. Reg. - Optimize Ship Schedule. - Training, education of Officers, discussion of New Ideas. Lars-Erik Hellring, Stena Line 10

11 Frequency (rpm) controlled Equipment: - Pumps, Cooling/Heating systems Sea Water Cooling Pumps (FW, SW, Boiler water, Chiller Water..) - Fans (Engine room, accommodation, galley..) - Hydraulic EQ (Steering gears, Ramp EQ..) Lars-Erik Hellring, Stena Line Lars-Erik Hellring 11

12 Stena Saga ME SW Rpm Controlled Pump. (Converted in to values based on shown measurements:) Normal running before installation nearly kwh / Year Savings: - ~ kwh / Year Lars-Erik Hellring, Stena Line Lars-Erik Hellring 12

13 Solar Window Film: Denmark Terminal: Instead of bying expensive glass, we by ordinary and mount Solar film Better price and better performancy Lars-Erik Hellring, Stena Line Lars-Erik Hellring 13

14 Solar Window Film: The film is stopping the heat from the sun light going through the window with around 80 %, By this we can then decrease the power on the air-conditions units. The saving on the compressors on one of our ships was calculated to a saving of kwh/year kwh/year Solar film Test: 1 Cabin with film. 1 Cabin with out. Difference 6 C Lars-Erik Hellring 14

15 -Original ship design: Service speed 25,7 knots, installed engine power kw. Service speed needed to manage the schedule is knots. -New ship design: New blades optimized for 20 knots witch gives needed engine power at kw. Lars-Erik Hellring, Stena Line Lars-Erik Hellring 15

16 Consumption per Trip 2006 / 2007 in %: Base line 2006 = 100% -Saving: Average after propeller change according to 2006: Around 16 % Lars-Erik Hellring, Stena Line

17 Stena Line future challenges Environmental legislations in SECA, 0,1% sulphur Nox regulations Peak oil = Increased fuel prices Global Warming Alternatives: Alternative fuel, exhaust gas cleaning (HFO) or MDO, energy efficiency? Risk: Competition from other transport solutions

18 Short Sea Shipping routes

19 Natural gas well head price Methanol cost ex works Methanol produced from forest products /kwh Methanol along side Göteborg /kwh /kwh 1244 $/ton MGO eqv /kwh 183 $/ton Crude eqv. 432 $/ton MGO eqv. 805 $/ton MGO eqv. Natural gas well head price /kwh LNG cost ex works 0.02 /kwh LNG FOB Zeebrugge 0.03 /kwh LNG along side Göteborg /kwh 183 $/ton Crude eqv. 345 $/ton MGO eqv. 518 $/ton MGO eqv. 845 $/ton MGO eqv. Crude oil well head price 115 $/bbl 843 $/ton Crude landed (WTI/Brent approx) 119 $/bbl 872 $/ton MGO port price /kwh 1070 $/ton HFO port price /kwh 716 $/ton

20 LNG (liquified natural gas) Established technology for propulsion of ships Long term availability Lower emissions: CO 2 down 25%, NO X down 85%, SO x and Particles very low But Price No infrastructure for distribution International regulations, IGF code not in place National, regional and local regulations Additional investment in new-buildings and retrofit Cost for conversion of existing fleet

21 LNG operation of ferries Conversion of a Ropax Göteborg - Fredrikshamn, propulsion power 4 x 6500 kw Conversion of main engines ~ USD/kW Investment in tanks, piping, etc ~ USD/kW Other equipment ~ 400 USD/kW Main engines ~90 MSEK Tanks, cool box, etc ~90 MSEK Misc ~70 MSEK ~ 250 MSEK The ship s cargo capacity will be reduced with abt 15% A RoPax new building project equipped for LNG propulsion will be 15-20% more expensive

22 Methanol as a marine fuel Conversion add on X Price on the market Conversion factor energy equivalence Methanol and Marine diesel oil Price comparison $ per tonne of fuel oil energy content, Europe, average spot price, 2012 YTD x % +12% Advantages for Europe Exhaust emissions Methanol equivalent to LNG (SOx, NOx, PM) Green House Gas 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 0,1% Marine Diesel Oil Methanol equivalen t marine diesel oil 1% Fuel Oil

23 Gothenburg - Kiel 2 X Cars Lorries Lifted from the road every year

24 Methanol as marine fuel Availability, distribution and storage Engine technology and adjustment to the ship Environment and cost benefit Safety and regulations

25 Methanol on Stena ferries The benefits Methanol is a Clean fuel Simple supply chain Big commodity with a working trade market Can be stored in hull tanks Energy cost lower than MGO Methanol retrofit lower than LNG retrofit Potential as green fuel

26 SPIRETH - Stena Scanrail SPIRETH

27 SPIRETH - Stena Scanrail SPIRETH

28 SPIRETH - Stena Scanrail Looking aft at new aux engine room Stena Scanrail Fuel treatment room Methanol to OBATE upgrade Auxillary Engine Room 2 x Volvo Penta D13 MG DME version WT door to ER SPIRETH SPIRETH

29 SPIRETH - Stena Scanrail Looking aft at new aux engine room Stena Scanrail Ventilation Methanol supply double walled pipe OBATE Double walled piping WT door to ER Fuel treatment room Methanol to OBATE upgrade Auxillary Engine Room 2 x Volvo Penta D13 MG DME version SPIRETH SPIRETH

30 Methanol Conversion scope Ventilation System Engine related updates: Cylinder heads Fuel injection injectors Fuel pump plungers Fuel injection high pressure piping Inerting System Engine Automation System Update of Vessel Automation System Interface Ship Automation System High Pressure methanol pump HFO to MeOH fuel tank adaptation

31 Metanol leder mot nollvisionen

32 Methanol in the future

33 Solar energy + CO 2 + H 2 O = Methanol

34 Stena s global methanol project Initial timeframe for converting Stena s SECA fleet Methanol required for fuel Thousand tonnes of methanol 1, Number of ships converted (estimate)

35 Clean Shipping

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