Latest Solution for Utilizing Various Types of Gas Fuel in DAIHATSU DIESEL

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CIMAC CASCADES 2018 in Kobe Technical Management Division Technical Department 3 Hiroaki Heima Latest Solution for Utilizing Various Types of Gas Fuel in DAIHATSU DIESEL 1

0. Content 1. Company Introduction 4. Gas Reformer 2. Global Trend 5. Development Schedule 3. Motivation 6. Evaluation of Engine Performance 2 7. Conclusion

1. Introduction of DAIHATSU Group 1907 HATSUDOKI Manufacturing Co., Ltd Manufactured 6.0hp GAS Engine 1951 DAIHATSU Motor Co., Ltd The production of diesel engine for diesel locomotive of Japan National Railways Development of the world's smallest displacement diesel engine for of passenger car HATSUDOKI: Mover, Engine / 発動機 / 发动机 1966 Daihatsu Diesel MFG Co., Ltd. Main Products : Diesel Engine for Marine Use Gas Engine & Gas Turbine for Land Use Main Products Passenger Car Sales Million JPY Operating Income Ordinary Income Net Income Million JPY 3 2013 2014 2015 2016 2017

1. History of DAIHATSU DIESEL GAS Engine Year 1907 Event 6.0hp Gas Engine was manufactured in MOVER(HATSUDOUKI) MFG. Co., Ltd Remarks 1908 15.0hp Gas engine was installed to Passenger boat in Nagasaki, Japan The first Gas-Fuel Engine ship in Japan. 1966 Established DAIHATSU DIESEL MFG Co., Ltd 6.0hp Gas Engine The first Gas-Fuel Engine ship 1983~ Launched Spark Ignition type GAS Engine with Three-way Catalyst 2005 Developed Lean burn Gas engine with Micro-Pilot ignition system Launched MD20G, MD36G, GK28G. GK28G Shin Umeda Bld. Osaka 2013 Developed Dual Fuel Engine DE28DF with Micro Pilot ignition system. DE28DF 4 2017 First Commercial Dual Fuel Engine was Shipped to our Customers.

2. Global Trend Reduction of GHG regarding Paris Agreement The Paris Agreement EEDI Reduction Target A) Holding the increase in the global average temperature to well below 2 above preindustrial levels and to pursue efforts to limit the temperature increase to 1.5 above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change. 2005 2013 2030 B) Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production. Reference Year 5 Individual countries achieve individually determined goal for GHG reduction. Engine Manufacturers have to offer the solution to reduce GHG emission.

2. Global Trend Ocean Ship Industry- Required EEDI Reference to http://www.imo.org/ A) The Energy Efficiency Design Index (EEDI) was made mandatory for new ships and the Ship Energy Efficiency Management Plan (SEEMP) for all ships at MEPC 62 (July 2011) with the adoption of amendments to MARPOL Annex VI (resolution MEPC.203(62)), by Parties to MARPOL Annex VI. This was the first legally binding climate change treaty to be adopted since the Kyoto Protocol. g ton mile 2!"g/kWh'!"kW' () ton *+!*!,"mile h' Generally... Ship Speed decreases by about15 15% in order to reduce 30% reduction of EEDI. 6 According to Required EEDI, Engine Manufacturers need to reduce CO 2 emission.

2. Global Trend Global Energy Sources Global Energy Trend Fuel Trend in Ships Industry Gas Energy Trend LNG will occupy more than 10% in Adapted Fuel. And other gas will be utilized as Ship Fuel. LNG MGO MDO Blend Oil Adapted Fuel to Regulation HFO LSHFO Not Adapted 7 http://www.enecho.meti.go.jp/about/whitepaper/2018html/2-2-2.html PIRA Energy: How The IMO is Not Making Shipping Great Again As a global trend, Gas Energy Demand will increase definitely. DDK is developing utilized technology for various types of Gas Fuel to meet Global Needs.

3. Motivation Ship Engine Applied Environmental Regulations EGR High Efficiency CO 2 Scrubber 100 50 0 Diesel Diesel Fuel Fuel LNG LNG LPG 100 100 100 100 77 80 10 12 1 1 0 0 CO2 NOx SOx PM SCR NOx SOx Low Sulfur Fuel Oil 8 DDK is looking into the technical possibility of applying LPG as the marine fuel

3. Motivation World Ocean Tronsport (Million Ton) Utilizing LPG as Ship s Fuel Reference Quote material of Astmos Energy in January 2018 LNG LPG Quality Depend on Site Uniform Supply Chain Very Limited Utilize Conventional Site Boiling Point -161.5[ ] -42.1[ ] Fuel Price[S/GJ](LHV Basis) Reference:https://www.eia.gov/ LNG(US) 7.1 $/GJ LPG(US) 3.5 $/GJ Storage In the long term Not Appropriate How to deal BOG MN reduction Easy Handling Difficult Easy Gas Density Methane Number 0.72 (lighter than Air) 65~102 2.01 (Heavier than Air) 34(Propane) 9 DDK researched how to utilize both LNG and LPG in the same engine by reforming gas.

4. Gas Reformer General Process Material (C3H8) Desulfurization Steam Size A Image of Size B Very big facility... 1 st Reforming Unit 1 Methanation Unit 2 Decarboxylation Dehydration H 2 O Calorie Adjustment Odorization Unit 3 Size B SNG 3 Substitute Natural Gas 10 DDK and Osaka Gas investigated Configuration Unit in order to minimize existing Gas Reformer

4. Gas Reformer General Process Study of Reformer Design Concept Material (C3H8) Desulfurization 1 st Reforming Steam Unit 1 Size A 1. Simplification of the reforming equipment configuration 2. Gas composition of reforming process Unit1 or Unit2 Chose Unit1 Methanation Unit 2 Unit1 Gas 3. Fuel suitability for Gas engine Check in Eng Test Unit2 Gas Configuration Propane Unit 1 Unit 2 Unit 3 Decarboxylation C 3 H 8 100 % 0 % 0 % 7 % H 2 O Dehydration Calorie Adjustment Odorization Unit 3 Size B Gas Compo sition CH 4 0 % 68 % 77 % 92 % CO 2 0 % 20 % 22 % 0 % Other Gas 0 % 12 % 1 % 1 % SNG 3 Unit3 Gas Methane Number 34 108 120 99 Lower Heating Value[MJ/kg] 27 28 49 11 DDK and Osaka Gas studied the relationship between the Engine combustion and the gas composition. Unit1 was chosen as Prototype Gas Reformer.

4. Gas Reformer General Process Material (C3H8) Steam Boiler Main Chemical Reaction of Reforming Steam Reforming Reaction C 3 H 8 + 3H 2 O 3CO + 7H 2 Desulfurization 1 st Reforming Gas Reformer Dehydration Steam CO Denaturalization Reaction CO + H 2 O CO 2 + H 2 Methanation Reaction CO + 3H 2 CH 4 + H 2 O CO 2 + 4H 2 CH 4 + 2H 2 O H 2 O Storage Tank GAS Engine Generator Storage Tank Gas Reformer LPG Vaporizer LPG Tank Dehydration H 2 O 12 The prototype gas reformer was installed at DDK Moriyama Factory and conducted reformed gas evaluation test with factory power generator.

5. Development Schedule Develop Gas Reformer Evaluate Performance 2015 2016 2017 2018 Gas Composition Check Current Gas Volume Check Adjust Gas Volume & Reform Energy Evaluate Catalytic Endurance Evaluate Engine Performance with Reformed Gas (RG) Check Full Load Operation and Transient Operation Evaluate Gas Composition Effect Full Load Test Transient Test Check Engine Reliability with Reformed Gas Evaluate Engine Reliability 13 Various practical operation evaluation was carried out, and future long-term durability evaluation is ongoing.

6. Evaluation of Engine Performance 1. Gas Engine Test Testing Gas City Gas and Reformed Gas were used Test Purpose 1. Confirm the influence of reformed gas on operability of gas engine. 2. Evaluate for Deterioration Characteristics of Reforming Catalyst in the future term. City Gas & Reformed Gas 2. Gas Composition Test Testing Gas Change mixing ratio of methane and propane respect to engine load. Test Purpose 1. Optimize the amount of Reformed Gas Volume according to Engine Load to reduce Reforming Energy. 2. Risk Assessment of Leaking LPG into Engine directly in case something wrong with Gas Reformer. Confirm combustion characteristics by by changing the the mixing mixing ratio ratio CH 4 CH and CH 3. 4 and C 3 H 8 14 DDK confirmed the reliability of Reformed Gas and the effect of mixing ratio through these Tests

6. Evaluation of Engine Performance Engine Start Steady Operation under Full Load City Gas T1 T2 Generator Power Reformed Gas City Gas T1 120% 100% T2 70% 100% Engine RPM Full Load Time period T1 is 20% longer than that of City gas. Reformed Gas The lubrication temperature is lower during gas reforming test. T1 T2 Time period T2 is 30% shorter than that of City gas. Full Load High MN gas makes it possible to raise Engine Load quickly. 15 Start-up characteristic is slightly different because of the difference of initial lubrication oil temperature. DDK confirmed the Reformed Gas contained 20% of CO 2 can be used as the same with Japanese City Gas.

6. Evaluation of Engine Performance Minimizing Reforming Energy Material (C3H8) H 2 O Dehumidification also needs heat energy Desulfurization 1 st Reforming dehydration Steam Gas Reformer Boiler Reforming Energy is the heat energy of Boiler to make stream. Changing Gas Mixture Ratio 2. Gas Composition Test Testing Gas Change mixing ratio of methane and propane respect to engine load. Test Purpose 1. Optimize the amount of Reformed Gas Volume according to Engine Load to reduce Reforming Energy. 2. Risk Assessment of Leaking LPG into Engine directly in case something wrong with Gas Reformer. Propane 3 Methane Confirm combustion characteristics by changing the mixing ratio CH 4 and C 3 H 8 16 DDK confirmed the reliability combustion of characteristics Reformed Gas and by changing the effect Mixing of mixing Ratio ration of methane through and these propane. Tests

7. Conclusion 1. Regarding the effective use of LPG which accounts for approximately 23% in the world ocean transport volume, DDK confirmed that reformed gas achieve the almost same output performance in case of using LNG. 2. By optimizing the system composition, We carried out downsize the Gas Reformer equipment considering shipboard loading. 3. DDK grasped the characteristics of MN in the low load region in the lean burn combustion and the influence on the combustion stability. 4. And now, reliability evaluation is ongoing in the long-term operation and the evaluation of deterioration characteristics of catalyst are also in progress. 17

CIMAC CASCADES 2018 in Kobe Technical Management Division Technical Department 3 Hiroaki Heima Thank you for your Attention 18