IMPLEMENTATION OF TIER II AND III

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IMPLEMENTATION OF TIER II AND III TECHNICAL SEMINAR 2009 3.MAJ MOTORI I DIZALICE d.d. AND WÄRTSILÄ SWITZERLAND Ltd. GERMAN WEISSER 1 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 2 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 3 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI The Annex VI to MARPOL 73/78 to date is the single relevant emissions regulation in force worldwide The IMO NOx regulation (Regulation 13 of Annex VI) limits the allowable NOx emissions of marine engines as a function of engine speed Regulation 14 of Annex VI limits the maximum allowable fuel sulphur content worldwide and inside specifically designated SOx control areas Entry into force May 19, 2005 Validity retroactive from 2000 Revision process completed on October 9, 2008 Entry into force of Revised Annex VI by July 1, 2010 4 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI Revision main aspects NOx emissions for new vessels - three Tier approach: Tier I: present regulation, applying globally Tier II: 15.5 to 21.8% NOx reduction from Tier I globally (to be achieved by means of in-engine technology) Tier III: 80% NOx reduction from Tier I within emissions control areas (requiring most probably aftertreatment technology) NOx emissions for existing (pre-tier I) engines: Identification of engines covered, applicable limits and conditions SOx/PM emissions: To be controlled by means of more stringent fuel requirements further development of fuel sulphur limits both globally and in SECAs VOC emissions: Introduction of operational measures for tankers 5 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI NOx emission limits for new vessels IMO Tier I IMO Tier II IMO Tier III NOx emission, g/kwh 20 18 16 14 12 10 8 6 4 2 0 Tier I: 1.1.2000, global Tier II: 1.1.2011, global after 2016, outside emissions control areas -76.4% Tier III: 2016, in emission control areas 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm 6 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI Regulation for pre-tier I vessels Limit: IMO Tier I Scope: All engines satisfying the following criteria: Cylinder displacement at or above 90 l/cyl Power higher than 5000 kw Installed on ships built between 1.1.1990 and 31.12.1999 Condition: An Approved Method exists complying with the following requirements: Approved by an administration Commercially available at the time of the first renewal survey after notification of such approval Satisfying the following approval conditions: Engine rating reduced by no more than 1% Fuel consumption increased by no more than 2% Engine durability and reliability not affected Cost of Approved Method not excessive to be certified by engine designer 7 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI Fuel sulphur limit development Gradual reduction of allowable max. sulphur level: SECAs: Present: 1.5% after July 2010: 1.0% after January 2015 : 0.1% Global Present: 4.5% after January 2012: 3.5% after January 2020: 0.5% 8 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI Fuel sulphur limit development 4.5% 3.5% Global 1.5% 1.0% 0.5% 0.1% SECAs -78% -97% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 9 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI Emission control area designation existing application submitted (including Hawaii) 10 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

MARPOL Annex VI Special clauses Equivalents: Alternative approaches for achieving the emission standards are generally permitted, provided there are no negative effects on the environment, human health, resources etc. Reviews: Tier III NOx limit: The status of the technological development towards implementation of the standard shall be reviewed during 2012/13 and the timing of the introduction adjusted if proven necessary Global fuel sulphur limit 0.5%: The availability of fuel oil to comply with the fuel oil standard shall be reviewed by 2018 and the introduction date delayed by 5 years if proven necessary 11 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 12 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Wärtsilä 2-stroke engine portfolio for Tier II / III 13 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Wärtsilä 2-stroke engine portfolio for Tier II / III discontinued: RTA52U-B RTA62U-B RTA72U-B RTA84CU all earlier versions of Tier II / III portfolio engines 14 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 15 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II concept for Wärtsilä RTA and RT-flex engines Increased scavenge air pressure and late exhaust valve closing (Miller concept) to influence internal EGR effect Further adjustment of engine tuning parameters such as compression ratio, exhaust valve and injection timing Re-optimized injector layout Utilization of the flexibility of the RT-flex system for optimizing the injection and exhaust valve actuation parameters throughout the load range Utilization of suitable injection patterns on RT-flex engines (sequential injection) Decrease of scavenge air temperature (40 35 C, at CMCR and 25 C sea water and/or 29 C fresh water ISO reference temperature) Decrease of combustion peak pressure (RTA engines only) 16 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II package Design impact Higher power electrical motor on auxiliary blower on selected engines High efficiency charge air cooler to achieve lower scavenge air temperature Depending on engine size and MEP application of new generation of high pressure turbochargers, engine versions classed as efficiency optimised Use of the current generation of turbochargers, engine versions classed as cost optimised Longer exhaust cam on RTA engines (late exhaust closing) Increased piston protrusion (additional shims) Atomizer with re-optimized fuel nozzle spray geometry 17 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II package Impact on engine performance 2 g/kwh higher fuel consumption (RT-flex, efficiency optimized) 4 g/kwh higher fuel consumption (RT-flex, cost optimized) 6 g/kwh higher fuel consumption (RTA engines) Lower exhaust gas temperature (up to 30 C at part load) Slightly increased airflow (especially at part load) No major influence on combustion chamber component temperatures 18 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II tuning variants illustration (RTA/-flex68-D) 178 176 174 RTA RT-flex cost-opt. RT-flex Standard RT-flex Delta RT-flex Low-load RTA Low-load bsfc, g/kwh 172 170 168 166 164 162 40% 50% 60% 70% 80% 90% 100% 110% 120% load 19 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II package Installation impact High efficiency charge air cooler with efficient water separation (higher temperature after compr.): Adjustment of system capacities to 10-15% increased SAC cooling heat flow, e.g. increased central cooler capacity Option for seawater cooling to be canceled Heat recovery system (boiler) layout data to be adjusted (lower exhaust gas temperature) 20 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 21 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II package Sample results Concept confirmation on RT-flex82C 30 Tier I limit Tier II limit Tier I compliant tuning Tier I compliant tuning Tier II package Tier II package bsnox, g/kwh 25 20 15 10 5 0 25% load 50% load 75% load 100% load weighted average 22 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier II package Validation status Completed verification tests: RT-flex60C-B (on RTX-4) RT-flex82C RT-flex82T RT-flex84T-D Pending / planned tests: RTA48T-D (September) RT-flex50-B (November) RT-flex50-D RT-flex58T-D RT-flex68-D RT-flex96C RTA versions according to market requirements 23 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 24 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

NOx reduction technologies Candidate technologies for achieving IMO Tier III either standalone or through technology combinations Extreme Low-NOx tuning by means of high-pressure turbocharging Exhaust gas recirculation Charge air humidification (Water-fuel emulsion) Direct water injection WaCoReG Selective catalytic reduction 25 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Candidate technologies for achieving IMO Tier III Charge air humidification CWI HAM Wetpac H Evaporated water is partly re-condensing Compressor in the charge air cooler Water injection 130-135 bar Saturated air 40 70 C Injected water mist is evaporated and hot air after compressor is cooled to saturation point Heat from cooling water is reducing re-condensation 26 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER Non-evaporated water Is captured in the water mist catcher and re-circulated

Candidate technologies for achieving IMO Tier III Direct water injection w/f ratio bsfc bsnox water / fuel ratio, % bsfc, g/kwh, bsnox, % 100 80 60 40 20 0-20 -40-60 25% load 50% load 75% load 100% load weighted average 27 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Candidate technologies for achieving IMO Tier III WaCoReG (water-cooled residual gas): Further development of wet Low-NOx technology through combination with other emissions reducing measures: EGR: Internal exhaust gas recirculation by reduced scavenging ports and smaller turbochargers DWI: Direct water injection to reduce combustion chamber temperatures and NOx emissions RT-flex: Common rail technology and variable exhaust valve timing to adjust EGR level NOx reduction: up to 70% 5 g/kwh 28 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Candidate technologies for achieving IMO Tier III Selective catalytic reduction (SCR), integrated with the turbocharging system 400 Auxiliary blower on off on off tropical conditions 45 C suction air temp. ISO conditions 25 C suction air temp. Sulzer 6RTA52U with SCR system Exhaust gas temperature ( C) Shipyard piping Urea injection Air Urea 300 200 10 Static mixers p Flow dresser SCR TI TI TI 12-30 bar starting air for dust blowing NO probe TI minimum temperature for SCR operation on heavy fuel 20 30 40 50 60 70 80 90 100 Engine load (%) to NO analyser As applied for Sulzer 7RTA52U engine on heavy fuel operation Engine SCR system 5 C suction air temp. minimum temperature for SCR operation on marine diesel fuel operating range with increased Urea consumption optimum operating range operating range with the risk of hydrocarbon deposits, depending on heavy fuel quality Shipyard piping TI T/C TI SCR-15.DRW / H.Schmid Engine exhaust gas receiver TI TI TI TI TI TI 29 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 30 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier III options lifecycle cost estimation Underlying assumptions: Considering technology combinations which are compatible and when combined allow achieving the Tier III target Investments on basis of information from prototype installations or recent quotations HFO price and price ratio to low-s fuel according to typical values Water price depending on demanded water quality: Urea price based on market data Options compared for various scenarios: Regional (mostly inside-eca) versus worldwide trade schemes Low versus high Sulphur tolerance of technologies involved (required fuel quality) 31 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier III options lifecycle cost estimation sample (25 years) 32 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 33 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier III options installation impact Requirements associated with the various technologies: Media (water and/or reductant) preparation and storage capacity Accommodation of media supply systems Substantial modification / extension of the turbocharging system Maybe additional waste media handling and storage capacity Consequences: Need for larger space inside the vessel for engine and ancillaries Need for additional storage capacity 34 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 35 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Tier III options certification aspects Specifically when applying aftertreatment systems like SCR, the currently used certification schemes are approaching their limits of applicability Initial certification test on the factory testbed of complete engine and aftertreatment system as to be later installed on the vessel not considered a practicable approach Certification test onboard in compliance with requirements for certification testing considered virtually impossible, even with relaxed requirements, the efforts and costs for the sea trial would increase substantially moreover, availability of certificate in time for the maiden voyage to be considered questionable Discussions of alternative approach initiated 36 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Presentation outline NOx emission, g/kwh IMO Tier I IMO Tier II IMO Tier III 20 18 16 14 12 10 8 6 4 2 0 0 200 400 600 800 1000 1200 1400 1600 engine speed, rpm The Revised MARPOL Annex VI and NOx Technical Code 2008 The Wärtsilä 2-stroke engine product portfolio for IMO Tier II / III The IMO Tier II compliance package for Wärtsilä 2-stroke engines Basic concept Validation status Technologies for IMO Tier III Potential assessment Economical impact Installation impact Certification aspects Conclusions 37 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Conclusions Wärtsilä 2-stroke engines are prepared for achieving compliance with IMO Tier II standards Thereby realizing the lowest possible fuel consumption Offering high flexibility in terms of adjustment of the specification to customer requirements regarding first and operating cost Without major impact on ship installation requirements Various concepts for achieving compliance with IMO Tier III standards are being evaluated in view of their technical development and economical viability Target is to offer the most attractive solution(s) in terms of lifecycle cost of the compliance concept Such solution will most probably entail on-board infrastructure requirements; hence a need for vessel design adjustments Certification procedures will have to be adapted appropriately 38 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER

Thank you for your interest German Weisser Dr. sc. techn. Head of Engine Performance Project Manager HERCULES Research & Development Wärtsilä 2-stroke Engines 39 Wärtsilä September 22, 2009 IMPLEMENTATION OF TIER II AND III / GERMAN WEISSER Wärtsilä Switzerland Ltd PO Box 414, Zürcherstrasse 12 CH-8401 Winterthur, Switzerland Tel. +41 52 26 24433 german.weisser@wartsila.com www.wartsila.com