The world 1 st LNG-fuelled containership

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제품전략 The world 1 st LNG-fuelled containership Focusing on DSME FGSS Technology: HiVAR 27 NOV 2014

Contents 1 Introduction 2 HiVAR System Development 3 Reference Project Status 4 Conclusion 2

The World 1 st LNG-fuelled Containership TOTE Maritime s LNG-powered containerships have been awarded the 2013 Next Generation Shipping award at Nor-Shipping. - 4 Jun 2013 - Built by NASSCO Shipbuilding Company Designed and Purchased by DSEC Fuel Gas Supply System by DSME * DSEC is a subsidiary of DSME

DSME, World Leader in Ocean Technology Company name Daewoo Shipbuilding & Marine Engineering Co., Ltd. Date of incorporation October 11, 1973 Revenue Over 13 billion USD (2013) Yard 4 million m 3 Employees Major Products Website 30,000 (including affiliates) Commercial Vessels Specialty Vessels Offshore & Onshore Plants http://www.dsme.co.kr/

DSEC, Ship & Marine Total Solution Provider This page document is reproduced contains by DSME s under confidential agreement information. with DSEC. No copy or or duplication is allowed is allowed without without prior prior written written permission permission of DSEC. of DSME.

The World 1 st LNG-fuelled 3,100 TEU Containership Cow Containers FGSS (DSME HiVAR) 40/45/53 ft Container on deck 53 ft Container holds 40 ft Container holds MAN DFDG Designed by DSEC MAN ME-GI ENGINE Fructose Tanks Principle Dimension L x B x D ( approx. 233.0 x 32.2 x 18.3 m) Main Engine ME-GI Engine Deadweight 31,830 MT (at 10.5 M of design/scantling draft) BWMS Electrolysis type Cruising Range Cargo Capacity 10,000 NM (LNG 4,000 NM + FO 6,000 NM) 3,100 TEU (Incl. Reefer : 266 sockets and Cow-container: 4 FEU) 1,100 m 3 Fructose tanks Various containers (40, 45 and 53 ft) in hold and on deck Scheduled delivery for the first ship: Q4 2015 / Scheduled delivery for the second ship: Q1 2016 This page document is reproduced contains by DSME s under confidential agreement information. with DSEC. No copy or or duplication is allowed is allowed without without prior prior written written permission permission of DSEC. of DSME.

Innovative Technology

HiVAR System Development 8

Why the ME-GI Engine? The ME-GI is derived from the industry s standard MC and ME engine. Proven design, >20,000 engines in service. Diesel cycle high fuel efficiency ~50% versus much lower for other engine types. High fuel flexibility burn all gas grades without derating. Burns all fuel types. High reliability same as fuel engines. No derating because of knocking danger. Negligible methane slip. Only demonstrated AND ordered 2 stroke dual fuel engine. A robust gas combustion unchanged load respons unaffected by ambient condition - quote from MAN Diesel & Turbo - This page document is reproduced contains by DSME s under confidential agreement information. with MDT. No copy or or duplication is allowed is allowed without without prior written prior written permission permission of MDT. of DSME.

Comparison between Conventional System of LNGC and HiVAR Compressor Driven FGSS System HP Compressor G G G G DF DF DF DF BOG MEGI HFO DSME HiVAR System G DF FG Heater HP Vaporizer HP Pump G DF LNG G DF G DF MEGI HFO

DSME FGS System Basic Concept Conceptual process flow diagram of DSME HiVAR FGSS DSME FGSS *3 *2 DSME HiVAR FGSS HP Pump + HP Vaporizer 330 bar Design Pressure Compact Size Low Power Consumption Low Noise & Vibration Easy Maintenance Power Consumption Comparison (for reference) *4 *1 HP Compressor System HP Pump + HP Vaporizer 1500 kw 100 kw

History Year Event 2007 HiVAR Concept Development (DSME s Patent) 2010 HiVAR FGSS test skid fabrication completed 2011 1st MEGI engine demonstration in MDT, Copenhagen 2012 2nd MEGI engine demonstration in MDT, Copenhagen 2012 TOTE/NASSCO project (world 1 st ME-GI containership) Teekay ME-GI LNGC ordered (world 1 st ME-GI LNG Carrier) 2013 HiVAR FGSS license agreement with MDT for application to QG retrofit project 2014 16 ME-GI LNG Carriers ordered (DSME) DSME HiVAR FGSS *1: LNG STORAGE *2: HP PUMP *3: HP VAPORIZER *4: MEGI ENGINE NG HP Cooler Recondenser *3 *2 *4 *1 Concept Development Design and Verification Commercial Application

Core Technology Development DSME Intellectual property rights Patent List of DSME FGSS International Patent Application Several patents applied since June 2008 Designated States : EP*(Granted), Singapore(Granted), China, United Arab Emirates United States Patent Several patents applied since Dec 2008 Patented or Patent Application in Korea Several patents applied since May 2007 EP : United Kingdom, Norway, Sweden, Germany, Belgium, France, Denmark, Greece, Switzerland, Finland High pressure fuel gas supply using HP pump and HP vaporizer is subject to intellectual and industrial property rights protected by national and international legislation. Registered to many countries including US and EU. (Previous arts have been exhaustively checked before registration.) It would be general protocol among world esteemed companies that patents and related development efforts are fairly respected. DSME won a patent suit for LNG fuel system at the European Patent Office (EPO) in 2014

Design Approval Approvals for DSME FGSS AIP & HAZID for 14,000 TEU CTN AIP & HAZID for 7,450 TEU CTN AIP & HAZID for 318K VLCC AIP & HAZID/HAZOP for LNGC AIP (Approval in Principle) for MEGI Fuel Gas Supply System for LNGC (Apr. 2009) : GL, BV : ABS : ABS, DNV, KR, LR : ABS Concept Appraisal for MEGI High Pressure Fuel Gas Supply System (Jul. 2010) DSME MEGI High Pressure Fuel Gas Supply System Drawing and Test Procedure for Prototype Test Unit (Dec. 2010)

Verification: DSME HiVAR FGS Test Skid FGS SKID

Verification: DSME FGS System - Integration Test with Engine ENGINE CONTROL SITE FGS SKID SITE ENGINE SITE OVERALL SYSTEM INTERATION TEST LOAD TEST with ENGINE

Verification: Announcement of ME-GI & FGS Development Completion On 18th of May 2011, MAN Diesel & Turbo (MDT) and DSME jointly announced the development of ME- GI engine and its application to commercial ships. Successful demonstration run of ME-GI engine and FGS system was performed at MDT research center in Copenhagen. Presentation of DSME FGS System Demonstration run of ME-GI Engine

Applications: The World 1 st LNG-fuelled Ships TOTE 3,100 TEU Containership The World 1 st LNG-fuelled Containership DSME HiVAR System Under Construction Scheduled delivery in Q4 2015 / Q1 2016 Teekay 173K LNGC World s 1 st ME-GI LNG Carrier DSME s Hybrid FGSS (HiVAR + HiCOM ) Under Construction by DSME To be Delivered in 2015

Status of the Reference Project 19

Successful Test of TOTE ME-GI Engine + FGSS Official Engine Trial (1st: Jun 2014, 2nd: Oct 2014) Engine Delivery to NASSCO Shipyard FGSS Operation by DSME R&D Engineers Good performance and reliable operation of HiVAR

First Engine Test Result (TOTE project) Conclusions on the FAT test results done at Doosan: ME-GI concept available and confirmed Performance and emissions overall meet expectations Operation of the pilot fuel injection confirmed to 3.4% Guaranteed 5% Operation on low load on gas confirmed to 10% Guaranteed 15% Service: Q4 2015 - quote from MAN Diesel & Turbo - This page document is reproduced contains by DSME s under confidential agreement information. with MDT. No copy or or duplication is allowed is allowed without without prior written prior written permission permission of MDT. of DSME.

Conclusion DSME first suggested HiVAR system and has patents, which utilizes HP pump and vaporizer to supply high pressure gas to engine DSME has developed HiVAR system for 7 years including idea & design development, system verification and realization for commercial application The world 1 st LNG-fuelled containership and all of LNG carriers with ME-GI engine have adopted DSME HiVAR system The ME-GI engine trial with FGSS for TOTE project was successfully completed DSME HiVAR technology has contributed to development of shipbuilding industry by accelerating LNG marine fuel market growth