ECO optimization with NOx equipment

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Greener Shipping Summit Athens Greece, 14 th November 2017 ECO optimization with NOx equipment Michael Jeppesen Promotion Manager Promotion & Sales, Two Stroke < 1 >

Agenda 1 Influencers of emission compliance technologies 2 NOx Control Proven Technologies 3 Eco EGR Concept 4 Eco EGR Tests, Results 5 Eco EGR Installation- and operation considerations 6 Status, Further Investigations, Conclusions < 2 >

NOx and SOx Emission Controlled Areas NOx for new ships, SOx for all ships Global: Max. 3.5% S 2020: Max. 0.5% S 2016 NECA: US 2021 NECA, The Baltics, North Sea, & English Channel 2015: max. 0.1%S SECA 2016: 0.5%S SECA parts of Chinese waters Waters within 200 nautical miles from the coast of USA, and Canada. Coastal waters around Puerto Rico & the U.S. Virgin Islands (the US Car-ibbean ECA) < 3 >

NOx Emission Rules Overview Date of keel laying of all new vessels Tier I Global Jan. 1 st, 2000 { 17.0 g/kwh Tier II Global Jan. 1 st, 2011 14.4 g/kwh NOx limit Tier III US NOx ECA Jan. 1 st, 2016 3.4 g/kwh Tier III Baltic NOx ECA Jan. 1 st 2021 3.4 g/kwh < 4 >

Influencing Factors on Fuel Choice CAPEX and OPEX Fuel price Legislation Fuel choice Methanol LPG Distillates Heavy fuel ULSFO LNG Ethane Biofuel Sustainability of fuels Flexibility (dual fuel) Logistics < 5 >

NOx and SOx compliance combination Present and post 2020 Fuel to use globally 0-3.5 %S + Scrubber 0-0.5% S Fuel to use in ECA areas 0-3.5 %S + Scrubber 0-0.1% S 0-0.1% S Tier III technologies HS EGR HS HP SCR LS EGR LS HP SCR LP SCR < 6 >

NOx Control Proven Technologies MDT two-stroke Low-sulphur fuel design: Max. 0.10%S High-sulphur fuel design: Max. 3.5%S EGR On-Engine SCR High-Pressure SCR Low-Pressure Status Nov. 2017 68 ordered, 5 in service Status Nov. 2017 124 ordered, 9 in service < 7 >

NOx Control Technology Distribution Firm orders, MDT two-stroke < 8 >

Eco EGR Concept A new Tier II mode for Tier III engines SFOC optimization without considering NOx emission level EGR can with small effort reduce NOx to Tier II level Approx. 10-15% EGR is needed for Tier II compliance Mechanical limitations and combustion parameters limit the SFOC level Eco EGR Tests completed: March 2017 6G70ME-C9.5 EGR BP on test bed: October 2017 7G80ME-C9.5 EGR TC on test bed: < 9 >

Eco EGR Concept SFOC > < NOx trade off Performance matching SFOC Level [g/kwh] Trade Off NOx Level [g/kwh] NOx Technology Fuel nozzles Miller timing, Fuel optimized 2000-2011 TIER I 17.0 None TC matching, Pcomp., Pmax., Vcomp., Inj. press., NOx optimized +2 to +6 NOx optimized +3 to +5 Fuel optimized -3 to -6 2011-2016 Tier II 14.4 2016-202? Tier III 3.4 2018-202? Tier II 14.4 None EGR, HP SCR, LP SCR Eco EGR at 10-15 % etc. < 10 >

Eco EGR Concept Partial exhaust gas recirculation EGR for TIER III Eco EGR for TIER II 35-45 % Exh. Gas Cooling Cleaning Recirculating 10-15 % Exh. Gas Cooling Cleaning Recirculating Basic principle Exhaust Gas Recirculation Exhaust gas is recirculated to the scavenge air receiver. Lower O 2 content (replaced by CO 2 ) Higher heat capacity of scavenge air à Reduces peak temperature of the combustion and formation of NO x Recirculated exhaust gas is cooled and cleaned in the EGR system. The recirculation ratio is controlled based on measured O 2 content in the scavenge air. < 11 >

Eco EGR Concept Different setup depending on engine size TC cut-out EGR (EGR TC) 80-95 bore (2+ turbines) By pass EGR (EGR BP) 35-70 bore < 12 >

Eco EGR Concept Engine running modes Mode 1: Tier II mode (with 10-15% EGR) Mode 2: Tier II fall back mode * (without EGR) Mode 3: Tier III mode (with 35-45% EGR) * The Tier II fall back mode is needed in case of EGR system failure. < 13 >

SFOC Optimization in Tier II with EGR Results 6G70ME-C9.5 EGR BP on test bed Mode 1, Tier II with EGR Result: SFOC is improved 3-6 g/kwh Mode 2, Tier II fall back (without EGR) Result: SFOC is increased 1-2 g/kwh Mode 3. Tier III with EGR Result: SFOC is improved 1-2 g/kwh < 14 >

Overall Test Results Eco EGR 6G70ME-C9.5 & 7G80ME-C9.5 Mode 1, Tier II with EGR Approximately 12% EGR is needed for Tier II SFOC reduction at all loads: 3-6 g/kwh Heat load considerably improved and fully acceptable Mode 2, Tier II fall back (without EGR) SFOC increased at all loads: 1-2 g/kwh Heat load fully acceptable Emissions fully acceptable Mode 3. Tier III with EGR SFOC reduced at all loads: 1-2 g/kwh Heat load fully acceptable Emissions fully acceptable < 15 >

Eco EGR Installation considerations NAOH tank and Sludge tank size estimates WTS NAOH tank Sludge tank < 16 >

Eco EGR Installation considerations NAOH tank and Sludge tank size estimates Example: 7G80ME-C9.5 EGR TC, 26000 kw @ 67.5 rpm Eco EGR in TIER II mode, NCR: 75 % load. Sludge tank NAOH tank WTS Preliminary assumptions: 3 weeks of operation between bunkering of NAOH and/or emptying of sludge tank. Fuel type: 0.5 % sulphur => NAOH consumption: 7 l/hour => ~ 5 m 3 NAOH tank => Sludge formation: 3 l/hour => ~ 2 m 3 Sludge tank Fuel type: 3.5 % sulphur => NAOH consumption: 51 l/hour => ~ 30 m 3 NAOH tank => Sludge formation: 19 l/hour => ~ 10 m 3 Sludge tank < 17 >

Eco EGR Operation Cost Considerations Other consumptions Extra operation cost depend on the Fuel price, Sulphur level and NaOH price, but generally.. El. Power cost will be dominant with low Sulphur (0.1%) operation. NaOH cost will be dominant with high Sulphur (3.5) operation. < 18 >

Status / Further Investigation, Conclusions Status for Eco EGR R&D testing / service testing 6G70ME-C9.5 BP EGR: Eco EGR successfully tested in March 2017 7G80ME-C9.5 TC EGR: Eco EGR successfully tested on test bed in October 2017 Service test planned together with Greek ship owner on a new VLCC The main engine is to be delivered with Eco EGR (Shop test Dec. 2017) 6G60ME-C9.5 BP EGR: Eco EGR to be tested in Japan early 2018 Test of further optimization of fuel injection system with regard to SFOC < 19 >

Conclusions SFOC potential etc. confirmed on G70ME-C9.5 and G80ME-C9.5 Service tests agreed on 7G80ME-C9.5 in 2018 Further investigations / R&D tests will be carried out Final set up for Eco EGR will be decided after further evaluations Eco EGR will be introduced in the Engine Programme in Q3 2018. < 20 >

Thank you for your attention! Thank you for your attention! Michael.Jeppesen@man.eu All data provided on the preceding slides is for information purposes only, explicitly non-binding and subject to changes without further notice. < 21 >

Disclaimer 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. < 22 >