Methanol a marine fuel for the future. International Methanol Conference Copenhagen May 8-10

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1 Methanol a marine fuel for the future International Methanol Conference Copenhagen May 8-10

2 Stena Line at a glance 5,000+ EMPLOYEES 20 FERRY ROUTES 36 VESSELS 300 ENERGY SAVING PROJECTS INITIATED (since 2005) 1,3 2 1,5 7 BILLION EURO IN TURNOVER MILLION FREIGHT UNITS MILLION CARS MILLION PASSENGERS

3 Stena Line fleet* Type Vessels Capacity Average age Large RoPax 9 > 3,000 LM 300-1,500 PAX 12 Standard RoPax ,250 LM 180 1,500 PAX 15 Ferry 7 1,000 2,300 LM 900 2,300 PAX 32 RoRo 7 1,600-2,200 LM 12 PAX 12 Fast craft LM 900 PAX *March 2017, excluding 4 newbuilding RoPax with dely 2019/ ships owned.

4 EEOI in gco2 per t.km Shipping s major challenge being the greenest mode of transport? Aviation 100 Road Rail Shipping Average payload tonnes

5 Our network and the SECA regulation 1/1 2015

6 The methanol conversion project - summary The world s first pilot project to convert a ship to methanol-diesel operation (DF) Suitable vessel/route identified EU support granted Development/test of conversion kit by Wärtsilä Supply agreement with Methanex Risk analyses in the Ports of Kiel and Gothenburg Rules in place for IMO IGF code and Class (LR & DnV) Q1 shipyard conversion at Remontowa Bunkering station built on quayside in Gothenburg 2015/16 - Engines convert to methanol one at a time Big interest and recognition from marine industry Built 2001 in Spain Length 240 m Breadth 28,7 m Draught 6,15 m Cargo Capacity lane meters Passenger capacity Main engines 4 x Wärtsila 8ZAL40S, 6000 kw Conversion budget (ship) > 11 million

7 Pilot vessel - Stena Germanica Built 2001 at Astilleros Espanoles (AESA), Puerto Real LOA 240 m Beam 29 m Draft 6,1 m Crew pax Capacity 1,300 pax 4,000 lane meters Swedish flag Heightened at Remontowa Shipyard, Gdansk 2010 Four Wärtsilä-Sulzer main engines 23,000 kw auxiliary engines 2 x Controllable pitch propellers Extended 52 meters in Lloyd Werft, Bremerhaven x bow thrusters Kiel Gothenburg, 13 hour passage 21 knots steaming 365 trips/year

8 After testing in Trieste, conversion of the main propulsion machinery, 4 x Wärtsilä 8ZAL40S (totally kw) was done at Remontowa shipyard in Gdansk during Feb/March 2015

9 Stena Germanica upgrade at Remontowa Bunkering system + New bunkering facility on quay Upgraded engine control system and eight dual diesel/methanol injectors per engine (Wärtsilä development) SOLAS alternative design with risk analyses by Lloyds Inert Gas System with two generators and nitrogen tank New high pressure common rail system Upgrading of fire alarm system Safety and fire education for safety crew Engine room Pump room Fuel tank Flame and gas detectors in engine room Four additional (high pressure) fuel pumps installed - and electrical switchboard room. Separate ventilation system in pump room with airlock. New sensors for leakage New double walled piping between pump room and engine (60 m) Ballast tank in double bottom converted to 500 cbm zink coated methanol fuel tank with IGS

10 Engine before and after conversion

11 Technology: Test results NOx 3-5 g/kwh (Low Tier II, no major conversion) CO (< 1 g/kwh) THC (< 1 g/kwh) PM only from MGO pilot (FSN ~ 0,1) SOx only from MGO pilot (99% reduction) Formaldehyde emissions (~ below TA-luft) No Formic acid detected in exhaust gases No reduction in output and load response unchanged, full fuel redundancy Higher efficiency (tests shows lower fuel consumption in methanol mode) Methanol or diesel can be selected (or re-selected) as source of energy in a fast and reliable way without stopping the engines and without losses in engine speed and output.

12 METHANOL as marine fuel Potential Challenges SOx & NOx less 90% and NOx less 60% in emissions Easy to handle (liquid) with efficient infrastructure Large commodity Feedstock is natural gas (LNG) Green methanol development (Bio- and CO2 captured methanol) leading towards zero vision Low flashpoint and viscosity Corrosive Volume/low energy content (half compared with oil) Regular bunker currently price competitive Fossil Cost

13 Other projects in different sizes Green pilot Swedish Maritime Administration converting a pilot boat to run on bio-methanol. Waterfront shipping and partners new-building of 7 dual fuel 50,000 dwt MR tankers at Hyundai Mipo and Minaminippon during 2016.

14 Our methanol project has been making waves Winner: 1. Swedish Maritime Day Innovation Award Green Ship Technology: GST Ship-owner of the year 3. The Swedish Confederation of Transport Enterprises 2015 Pegasus award Global Business Excellence Awards UK "Outstanding Green Initiative Award 5. Shippax Awards 2015 The Eco Award 6. European Marine Engineering Conference Awards Ship of the year 2016 Finalist: The Economist s Ocean Innovation Challenge Seatrade Awards Clean Shipping Award Fathom Ship Efficiency Awards 2015 as Sustainable Ship Operator of the Year Lloyds Global Awards 2015 Environmental Award

15 Methanol lessons learned so far Conversion project requires very detailed planning as there is no roadmap. Shipyard conversion went according to plan but planning a ship design from scratch is easier. Approving a new fuel has taken long The ship has had a couple of incidents adjusting the safety and injection valves to the fuel pressure. Important for ships crew to be motivated as it is work intense. Difficult to predict energy prices. We are satisfied so far a technically sustainable alternative over time.

16 Thank you for listening #sustainableshipping

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