Methanol as a Marine Fuel CH 3 OH (MeOH) Platts 5 th Annual European Bunker Fuel Conference Rotterdam 22 23 May 2014 Working together for a safer world
Overview What is it and where is it used today, emissions and supply? Its comparative properties to LNG and MGO, Technical and Operational challenges An overview of projects and growth Similar emissions to LNG
What and Where is Methanol Used today? Formaldahyde Acetic Acid Dimethyl Terephthalate Methyl Chloride Energy and MTO High Growth potential markets Pharmaceutical, Wood, Auto Fleece adhesive and paints Basic alcohol compound CH 3 OH = Methyl Alcohol Wood Alcohol, carbonol Recyclable plastic bottles Silicons Fuel Blending, Biodiesel DME and MTO (Methanol to Olefins) NOT to be mistaken with ethanol found in beers, wines and spirits! MeOH IS TOXIC. Colourless, tasteless, flammable, liquid in ambient conditions, quite volatile, slight smell. corrosive
Availability and Supply Infrastructure The methanol industry spans the entire globe, with production Global availability 90 plants combined production Capacity over 90 million t/year - Demand 2013 > 65 million t/year expected to rise to 132 Milliont/yr by 2022 Growing demand in China 12% / yr Global 3%/ yrc. Shale Oil in USA has raised production of MeOH - (plant set up 2yrs.) Easily transported to non LNG accessible sites in regular product tankers Bunker barges could be similar to chemical carriers World 3% growth China 12% growth per annum M85 M100 alternative to LPG auto industry 5% of gasoline demand Flexible Fuel Vehicles FFV in <10yrs 200 MeOH plants from coal Data Source: Methanex Global Leader in MeOH production and marketing
Methanol CH 3 OH - production
Dimethyl Ether (gas) Di-Methyl Ether (DME) DME is mainly produced from methanol through a catalytic reaction (methanol dehydration) (Low Octane) an alternative to LPG 2CH 3 OH CH 3 OCH 3 + H 2 O (DME) DME gas density is 1.97 kg/m 3 compared to the density of air at approximately 1.2 kg/m 3. The flash point of DME is -41 C. Clean colourless gas easy to liquefy (cooling or slight pressure) DME experience mainly in heavy duty vehicle experience (High Cetane)
Methanol Properties Benefits Impact on Emissions Storage & Technical Commercial Contains NO sulphur Reduction NOx Reduction in PM s GHG on par with LNG with Carbon Capture / bio V.G no cryogenic risks and lower volume expansion into gas Modify and use HFO/MGO tanks Can be used on diesel engines Rules developed No purification plant Cheaper retrofit than LNG World Production rising>100 Mt/yr Current demand rising > 65Mt /yr Supply transport easier to set up than LNG Price by energy about = MGO More transparent market pricing than LNG Methanol/DME offers many of the environmental benefits of LNG but without some of the drawbacks
Methanol Properties Drawbacks Handling Storage and Technical Commercial Toxic = health risks. Odourless (slight smell) Corrosive with some materials such as Zn,Al No operational experience with bunkers only carriage New technology/training Needs Inert systems for tanks Half energy value of MGO low flash point 12 C - flammability No Marine ISO specification Supply infrastructure to develop (although this is not complex like LNG) First ship / ferry possibly in service end of 2015 Invisible flame No Lubricity Low Cetane Number On the down side the chemical is toxic and has a low flashpoint and the volume required is approximately twice of MGO
Environment Similar +VE reductions as LNG Formaldehyde emissions GHG in exhaust gases but NO methane slip No SOx, same or Lower NOx and very low PM s Toxic but very low 15-20 ppm (below TA-luft limit) Formic acid not detected in exhaust gases Water pollution Bio degradable soluble in water - pollution issues minimal compared to oils Green credentials energy source potential for the future including CCU (Carbon Capture and Use)! Source ENSUS paper
Alternative fuels - key characteristics for road transport Marine has yet to fully establish well to wake LCA Flash Point >60 SOLAS Biogas Gas NG Methanol FAME Renewable Diesel MGO No No No yes yes Yes ISO 8217:2012 No No No No No Yes Energy [MJ/kg] Density [kg/m 3 ] 45.1 (stripped of CO 2 ) 45.1 19.9 36.8 44 43 gas gas 793 890 780 870 Combustion CO 2 [kg CO 2 /kg] 2.54 2.54 1.38 2.81 3.12 3.16 Net GHG [g CO 2eq /MJf] (Low / High value) -157.1 / -37.7 7.2 / 21.8-66.7 / 42.8-7.1 / -50.1-68.4 / 28.9 Not established Sulphur No after strip No No No No <0.10 mass% Source: EUCAR/JRC/CONCAWE
Source MAN B&W
Supply Meeting Demand Potential for Marine Fuel demand For ECA operations Growth is already understood >65 Mt/yr today Expected 132 Mt/yr 2022 Source: Chemical Market Associates
The Price Market (source Methanex) May 2014 EU Euro450 Mt USA USD 632/Mt Asia USD 590/Mt Expected to drop 3Q -4Q 2014
Driver as a Marine fuel Main drivers for alternative fuels Legislation Emissions, Class, Statutory MeOH = zero sulphur attractive to ECA-SOx operation Availability Technology, Fuel Costs Operating, Service, Investment
Alternative Technology Categorisation (Revised Annex VI ~ Reg. 4 Equivalent Means ) SOx NOx Primary Secondary (HFO+) Primary Secondary Low sulphur fuel Wet scrubber LNG SCR LNG Dry scrubber EGR Source: sea-cargo.no Methanol Non-thermal plasma Common rail DME / OBATE Variable inlet closing Bio fuels/gases Fuel emulsification., air humidification, direct water injection Gases/Ethane /LPG/H 2.others?..
Lloyd s Register Projects past and current METHAPU 2009 Methanol/ DME OBATE (On Board Alcohol To Ether) ) Methanol Retrofit 2015 Other joint initiatives in hand
1 - METHAPU Project - Methanol as a Marine Fuel - 2009 Methanol Auxiliary Power Unit (METHAPU) project sponsored by EC under research framework programme FP6 with following aims Use of MeOH on board ship successfully and safely demonstrated Evaluation of Solid Oxide Fuel Cell (SOFC) technology onboard a cargo vessel engaged in international trade Evaluation of methanol as a fuel onboard a cargo vessel engaged in international trade Development of a technical justification for the use of methanol as a fuel onboard a cargo vessel engaged in international trade First bunkering of methanol
3 Methanol/DME (SPIRETH) Nordic Investment Bank, Energimyndighet, Danish Maritime Fund, Nordic Energy Research In a full scale pilot project, test the alternative non-oil-based fuels methanol and DME(OBATE) in order to contribute to finding the best environmental and economical alternative for a sustainable and successful maritime transport industry. Direct injection under pressure as liquid
Storage Flexible solution Methanol can be stored in inerted integral tanks surrounded by cofferdams above water line; single skin below water line Methanol can be stored in double bottom tanks. Single skin is acceptable Double walled fuel piping Coated and inerted bunker tanks (Methanol is fully miscible in water)
2 - Stena Germanica Trials 2015 EU Funded full scale conversion In a full scale project to convert 4 Off main engines to methanol diesel operation (DF) Q4 2015 Full conversion 2 ME s Q4 2016 Full conversion 4 ME s
Use of Methanol in Internal Combustion Engines Diesel engine concept for DME (OBATE)* Traditional HFO or DO is replaced with OBATE-DME in a diesel engine. Since OBATE-DME is a gas at atmospheric pressure you need to pressurize the fuel supply and return system. The challenge is the major modifications of the fuel injection system to handle fuel characteristics such as low viscosity, low heat value, low cetane number and high compressibility. Duel Fuel concept for Methanol In this concept you replace the gas valve on a DF-engine, or complete the engine, with a methanol injector. You ignite the compressed premixed methanol-air mixture with a small pilot fuel diesel spray when the piston is close to TDC. Performance corresponding to the DF concept. Methanol-diesel concept Methanol is injected at high pressure close to TDC and ignited with pilot diesel. By using the diesel principle engine knocking problems may be avoided, which might be faced using methanol in a Dual Fuel engine. Area for adaption is the fuel injection system for the methanol. * Onboard conversion of Methanol to DME/MeOH/water mix Source Wartsila
Test Results Methanol-Diesel concept - NO X acceptable ( Low Tier II values) - CO acceptable ( < 1 g/kwh) - THC acceptable ( < 1 g/kwh) and no methane slip - Very low PM - Formaldehyde emissions low 15-20 ppm (below TA-luft limit) - Efficiency with methanol comparable to diesel - No Formic acid detected in exhaust gases
MAN Engines ( 2- stroke option) MAN B&W ME-LGI main engine running on methanol 9 Methanex Carriers on order to run on methanol ME-LGI
Safety and Regulations Primary hazards associated with the use of methanol onboard ships Fire and explosion highly flammable (flash point 12. Deg.C) Exposure - inhalation and contact with skin to be avoided Invisible flame difficult to extinguish
Safety and Regulations IMO IBC Code - International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk (IBC Code) Carriage of Methanol. IGC Code - International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) LNG and Low Flash Point Fuels New international code of safety for ships using gases or other low-flash point fuels (IGF Code) being drafted. CLASS (Lloyd s Register ) Rules and Regulations for the Construction and Classification of Ships for the Carriage of Liquid Chemicals in Bulk Rules and Regulations for the Construction and Classification of Ships for the Carriage of Liquefied Gases in Bulk
Safety and Regulations SOLAS Methanol may be permitted as a fuel onboard cargo ships SOLAS II-2, Part B, Regulation 4.2.1 states 4.2.1.1 except as otherwise permitted by this paragraph, no oil fuel with a flashpoint of less than 60 C shall be used; 4.2.1.4 in cargo ships the use of fuel having a lower flashpoint than otherwise specified in paragraph 2.1, for example crude oil, may be permitted provided that such fuel is not stored in any machinery space and subject to the approval by the Administration of the complete installation.
Assessment of Risk Based Design To facilitate innovation and change risk based design will become increasingly important Prescriptive rules are slow to develop, deal with well understood hazards, favour existing technology approach provides the foundational basis and detail for developing Prescriptive rules Running title <set on slide master>
Methanol Reflections Use of methanol in marine industry is in its infancy Global demand is being met by ease of developing capacity Long term environmental benefits and pricing benefits attractive. Success of methanol as a future marine fuel depends on price and technological development to apply it to marine Alternatives such as scrubbers/lng competes with methanol and are currently in more advance stage of development for marine. If the price is right and the technology is proven - MeOH has the potential for being one of the top fuel options. Recognising that no one solution will fit all ships; Lloyd s Register aims to support the industry by facilitating without promoting the use of alternative fuels through the provision of timely and appropriate Rules, Regulations, Guidance and Advice
Timothy Wilson Principal Specialist FOBAS Lloyd s Register Mountbatten House Grosvenor Square Southampton, SO15 2JU Thank You T +44 (0)2380 249641 E timothy.wilson@lr.org w www.lr.org/marine Working together for a safer world Lloyd s Register and variants of it are trading names of Lloyd s Register Group Limited, its subsidiaries and affiliates. Copyright Lloyd s Register EMEA. 2014. A member of the Lloyd s Register group.