The ME-LGIM engines For the use of methanol as fuel

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1 International Methanol Conference May 2017 at DTI. Kjeld Aabo Director Customer support MAN Diesel & Turbo Copenhagen, Denmark The ME-LGIM engines For the use of methanol as fuel < 1 >

2 Design and Manufacturing Copenhagen, Denmark Design of Two- Stroke Engines Production of Spare Parts PrimeServ Academy R&D Center Diesel House Employees ( ) : 1,250 MAN Diesel & Turbo GGK Company Presentation 2016 < 2 >

3 Low Speed Licensee Network Engines are built where ships are being built Poland Cegielski 1959 China HHM 1980 DMD 1980 YMD 1989 CMD 2007 DKD 2007 CMP 2008 RPM 2008 Yuchai 2016 QMD 2014 Korea Hyundai 1976 Doosan 1983 STX 1984 Japan Mitsui 1926 Makita 1981 Diesel United 2008 Hitachi incl. IMEX 1951 Kawasaki incl. Hanshin 1911 Croatia Uljanik 1954 Split 1967 MAN Diesel & Turbo GGK Company Presentation 2016 < 3 >

4 CSSC-MES Diesel Co. Celebration Manufacturing 10 million MAN Diesel & Turbo designed BHP < 4 >

5 Current Development Focus Exhaust gas treatment systems Fuel strategy and engine technology CH 4 CH 3 OH Cost-down on the base engine o Higher torque Higher combustion pressure General increase in engine mass and size o Necessary to improve our design practice and develop new designs and tools < 5 >

6 IMO NO x and SO x Limits Tier II & III Compliance Need SO x scrubber in 4 years? Enough low sulphur fuels? Fuel Sulphur Content (Equivalent) 4,5 [%] 4 3,5 3 2,5 2 1,5 1 0,5 0 NO x [g/kwh] Tier I Tier II Tier III 17 All vessels (old and new) in ECAs 14.4 Only newbuildings YOU ARE HERE General 3.4 EGR or SCR in ECAs in ECAs < 6 >

7 New IMO emission regulation Sulphur SECA and NOx NECA controlled areas. SECA: Max. 0.1% sulphur in the fuel after 1st. of Jan NECA: Max. 3.4 g NOx / kwh after the 1st. of Jan < 7 >

8 Green Technologies for SOx compliance Globally and within ECA in 2015 MC/ME/-C engine Single Fuel: MGO MC/ME/-C engine Diesel fuels: HFO/MDO + Scrubber ME-GI / ME-LGI engine Dual Fuel: LNG, Ethane and MGO LPG / MeOH Three basic options available for different levels of fuel flexibility (NK/LDF) < 8 >

9 Influencing Factors on Fuel Choice Fuel price Sustainability of fuels CAPEX and OPEX Fuel choice Flexibility (dual fuel) Emission limitations Logistics MAN Diesel & Turbo Future Fuels < 9 >

10 Fuel Types Residual Distillates ULSFO Methane Methanol LPG Ethane Biofuel (2 nd +3 rd gen.) MAN Diesel & Turbo supports all MAN Diesel & Turbo Future Fuels < 10 >

11 ME-GI and LGI Operation Hours on Dual Fuel Engine type Owner Engine builder Test bed hours on Dual Fuel 4T50ME-X-GI DRC 473 8S70ME-C8.2-GI HHI-EMD 268 6S70ME-C8.2-GI MES 230 2S50ME-GI KHI 100 8L70ME-C8.2-GI TOTE 1 Doosan Delivered 8L70ME-C8.2-GI TOTE 2 Doosan Delivered 5G70ME-C9.2-GI TK 1,2,3,4 HHI-EMD Delivered 5G70ME-C9.2-GI TK 1,2,3,4 Doosan Delivered 6S50ME-C8.2-GI NavGas 1 HHI-EMD Delivered 6S50ME-C8.2-GI NavGas 2,3,4 HHI-EMD delivered 8S70ME-C8.2-GI Crowley MES delivered 8S70ME-C8.2-GI Crowley MES delivered 8S50ME-C8.2-GI Wallenius NYK KHI delivered 7G70ME-C9.5-GI Elcano 1,2 MES delivered 7G70ME-C9.5-GI Knutsen 1,2 HHI-EMD delivered 8S50ME-C8.2-GI Wall., NYK, KHI delivered 7S90ME-C9.5-GI Matson 1, 2 HHI-EMD delivered 5G70ME-C9.2-GI KLC 1,2 Doosan delivered 7S50ME-LGIM MOL 1,2,3 MES delivered 6G50ME-LGIM WL + Marinvest 1,2,3,4 HHI-EMD delivered 19 dual fuel engines in service hours on gas in service hours on methanol in service Delivery of Dual Fuel engines has become a daily routine engines delivered Nakilat, converted, 2 HHI-EMD delivered Note: The GI system has been in service for approx. 20,000 hours on the Chiba Power Plant in Japan. It was a 12K80MC-GI-S version < 11 >

12 ME-LGI Owners Forum Methanol - Development Milestones LGI demonstration event at MDT 4T50ME-X TAT at MES 4S50ME-T9 Test at MES 4S50ME-T9 Test at MDT 4T50ME-X Test at HHI 6G50ME-B9.3 S/T MNS Taranaki Sun Test at MES 7S50ME-B9.3 S/T HMD Lindanger Celebration at MES S/T trial HMD Mari Jone S/T HMD Leikanger S/T HMD Mari Boyle S/T MNS Manchac Sun S/T MNS Cajun Sun < 12 >

13 Dual fuel Methanol engine reference list Engine type ME-LGIM No. of vsl. No. of opt. vsl. No. of eng. Engine Mk Gas Ship Type Cap. Unit Owner Builder Yard Hull no. Delivery year S 50 ME-B 9.3 LGI Methanol Carrier DWT Mitsui O.S.K Lines MES Minami Nippon M-750/752/ G 50 ME-B 9.3 LGI Methanol Carrier DWT Westfal-Larsen Hyundai HMD HMD2503/ G 50 ME-B 9.3 LGI Methanol Carrier DWT Marinvest Hyundai HMD HMD2504/ Total ME - LGI engine 9 Engines Total dual fuel 2-Stroke in service on gas 12 engines Total dual fuel 2-Stroke in service on methanol 7 engines Total Dual fuel - GI, LGI & GI/E 165 engines Total power main engine - GI, LGI & GI/E 3.02 GW MAN Diesel & Turbo 05/08/2016 LSS RASA/LSP < 14 >

14 ME-GI engine GI components MAN Diesel & Turbo < 15 >

15 Diesel to Dual Fuel Combustion Combustion principles Mr Diesel s process The Diesel Cycle Fuel in cylinder before gas Diesel process maintained Power remains the same Load response unchanged No pre-ignition / no knocking Insensitive to gas mixture Negligible methane slip High-pressure gas injection. Mr Otto s process The Otto Cycle Gas in cylinder before fuel Otto process gas-air pre-mix Power reduction needed Load ramp needed Pre-ignition / knocking risk Gas mixture important Methane slip significant Low-pressure gas injection. ME-GI-S and ME-LGI-S is a two-stroke engine working according to the Diesel Cycle MAN Diesel & Turbo LSS < 16 >

16 ME-LGI Combustion Principle The ME-LGI engine is a dual fuel engine Diesel combustion process High effciency Main injection Pilot injection < 17 >

17 ME-LGI Hydraulic supply LGI FBIV High-pressure fuel pipes LGI block LFL Supply ELFI Hydraulic accumulator FBIV < 18 >

18 ME-LGI FBIV Injection principle with LFL Principle Hydraulic oil in 300 bar Hydraulic oil out 1 bar LFL LFL fuel valve LFL 8-50 bar supply pressure Slide valve Ready LFL boosting & injection LFL suction < 19 >

19 Fuel Booster Injection Valve (FBIV) Cross section Surfaces requiring lubrication/sealing Lubricating/sealing oil booster piston Cooling oil inlet Nozzle Plunger Control oil MAN Diesel & Turbo LSS < 20 >

20 ME-LGI Fuel booster injection valves < 21 >

21 ME-LGI-ECS Control and supervision of LGI injection ACU3 ME-ECS MOP EICUB EICUA ACU2 ACU1 Combined ME-ECS & LGI-ECS Control LGI-ECS Control LGI-ECS Safety ECU B ECU A FIVA CCU n CCU 2 CCU 1 ELFI_L Ok ELFI_L enable ELFI_L Ctrl SACU 2 SACU 1 ELFI_L SPCU SPSU SCSU SCSU SCSU SCSU Valve Ok Valve Ctrl Fuel Oil Injection FBIV MeOH Injection ELBI Safety System ELBI enable < 22 >

22 ME-LGI-S System Overview MAN Diesel & Turbo LSS < 23 >

23 Low Flashpoint Fuel Supply System < 24 >

24 Fuel Valve Train Equivalent safety as Gas Valve Train Functionality modified to application < 25 >

25 Heat release (cyl 1) [W] Heat release (cyl 1) [W] Heat release (cyl 1) [W] Heat release (cyl 1) [W] Heat Release HR Diesel vs Methanol ME-LGI < 26 >

26 ME-LGI Introduction and Results 7S50ME-B9.3-LGI - Mitsui, May 2015 Combustion performance : Emission Efficiency < 27 >

27 MDT Tier III solution with methanol Market potential EGR SCR The 3 rd option tier III: Water in Methanol is under investigation. Tier III can be met with a mixture of 40% water and 60% methanol Long term effect on liner and piston ring wear needs to be investigated < 28 >

28 Gas type Summary Fuel type LNG Ethane Methanol LPG Heat capacity kj/kg kj/kg kj/kg kj/kg Density 425 kg/m3 550 kg/m3 800 kg/m3 580 kg/m3 Volume factor ( ref. MDO) FGSS cost 15 MW 1,83 1,47 2,40 1,44 2,0 mill.usd 2,8 mill.usd 0,5 mill.usd 1,0 mill.usd Availability Engine price +25 % + 25 % +25 % +25 % Fuel Price (ref. MGO) < 29 >

29 MAN B&W Two-Stroke Low Speed Diesel Engines for Power Generation Summary ME-LGI burning methanol Fuel flexibility High efficiency High reliability Low maintenance costs Long technical lifetime Output remain unchanged Proven in service MAN Diesel & Turbo LSS < 30 >

30 All data provided in this document is non-binding. This data serves informational purposes only and is especially not guaranteed in any way. Depending on the subsequent specific individual projects, the relevant data may be subject to changes and will be assessed and determined individually for each project. This will depend on the particular characteristics of each individual project, especially specific site and operational conditions. MAN Diesel & Turbo GGK Company Presentation 2016 < 31 >

31 MAN Diesel Dual Fuel Engine Alternatives All About Marine World s first methanol powered ethanol carrier 50,000dwt Methanol carrier Engine type: 7S50ME-B9.3-LGI World s first LNG containershp 3100 teu Container ship Engine type: 8L70ME-C8.2-GI World s first ethane powered ethane carier Ship type: 36,000 M3 LEG Carrier Engine type: 7G50ME-GI MAN Diesel & Turbo LSS < 32 >

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