18th dnvgl technology week - dnvgl.us - safer smarter greener - dnv … · architect firm glosten...

83
SAFER, SMARTER, GREENER DNV GL © Anthony Teo 18 th DNVGL Technology Week 1 Alternative Maritime fuels & Air Emission Compliance

Upload: others

Post on 27-Jan-2021

6 views

Category:

Documents


0 download

TRANSCRIPT

  • DNV GL © SAFER, SMARTER, GREENERDNV GL ©

    Anthony Teo

    18th DNVGL Technology Week

    1

    Alternative Maritime fuels & Air Emission Compliance

  • DNV GL ©

    Agenda

    1. Introduction

    – The regulatory “game changers”

    – What are the ship fuels in 2020

    – Alternative fuels and technologies

    2. Rules for Alternative fuels

    3. Some thoughts on

    – CO2 impact

    – fuel prices

    – Fuel availability

    – SOx, NOx, PM emissions

    4. Summary

    2

  • DNV GL ©

    The 0.5 % sulphur limit is a potential “game changer”

    3

  • DNV GL ©

    The Initial Green House Gas (GHG) Strategy (MEPC.304(72)) also is a potential “game changer”

    4

    -50%=470 Mio t/a

    705 Mio t/a

    470 Mio t/a

    940 Mio t/a

  • DNV GL ©

    How will ship propulsion power look like in the future?

    5

    2020

    ▪ “Paris Agreement”, 2015-12-12 UN’s climate science panel says net zero emissions must happen by 2070 to avoid

    dangerous warming.; IMO ambition to reduce GHG emission by 50% within 2050 (April 2018)

    ▪ Until now there are no taxes on ship fuel.

    1820 1850 1900 1950 2000 2020 2050 2100

    LNG for LNG Carriers LNG for all ship types

    Liquid and gas fuels from H2 and CO2

    Heavy Fuel Oil Diesel engines

    Sails

    Coal

    Wind supported ship propulsion

    Heavy Fuel Oil steam engines

    Destillates as ship fuel

    DNV GL ETO: 50%

    fossil fuels in 2050

  • DNV GL ©

    Shipping becomes greener and more complex- Regulatory timeline towards 2030 -

    6

    Source: ASSESSMENT OF SELECTED ALTERNATIVE FUELS AND TECHNOLOGIES; DNV GL April 2018

  • DNV GL ©

    Some environmental challenges for shipping today and in future

    7

    ▪ Reduce CO2 footprint

    – IMO GHG Strategy (MEPC.304(72))

    – MRV/IMO DCS start of permanent public

    monitoring of ship efficiency

    – EEDI pressure to improve ship efficiency

    ▪ Reduce SOx, Nox, PM emissions

    – ECA and ECA like areas pressure to reduce ship

    emissions

    – SO2 0.5% limit

    – Pressure on high sulphur HFO as ship fuel

    – opens the way for new technologies in shipping

    ▪ Added values must justify higher investments

    Selected items from regulatory timeline towards 2020

  • DNV GL ©

    The 2020 0.5% S effect on global bunker demand

    ▪ LNG will not play a

    major role

    ▪ Distillates and LSHFO

    will take the role of

    high sulphur HFO

    ▪ High S HFO will drop

    dramatically

    ▪ Development beyond

    2020 is uncertain

    8

    Distillates

    Distillates/blend

    LSHFO

    HFO (Scrubber)

    LNG

    One possible global

    bunker demand

    2020

  • DNV GL ©

    Are we prepared?

    9

    ?

  • DNV GL ©

    DNV GL information on alternative fuels in the www- Link to DNV GL AFI platform and alternative fuel white paper -

    ▪ Alternative Fuels Insight - AFI portal:

    www.dnvgl.com/afi

    – The content of the white paper will be provided and

    maintained on our web platform

    ▪ White paper alternative fuels and technologies

    www.dnvgl.com/alternative-fuel

    ▪ Overview alternative fuels:

    https://www.dnvgl.com/maritime/alternative-fuels-and-

    technologies-in-shipping/index.html

    10

    http://www.dnvgl.com/afihttp://www.dnvgl.com/maritime/publications/alternative-fuel-assessment-download.htmlhttps://www.dnvgl.com/maritime/alternative-fuels-and-technologies-in-shipping/index.html

  • DNV GL ©11

    Alternative Fuels Insight

  • DNV GL ©

    AFI enables users to navigate a constantly changing landscape on alternative

    fuels through comprehensive, up to date and objective information

    12

    ▪ A freely available platform on alternative fuels and technologies

    ▪ Interactive map and statistics with current status on ship uptake and bunkering infrastructure

    ▪ Fuel Finder lets ship owners connect with suppliers of alternative fuels for specific projects

    ▪ Encyclopedia with environmental, technical and financial information on a wide range of fuels and technologies

    ▪ Alternative fuels benchmarking tool to compare financial performance of alternative fuels for a specific project

    Alternative Fuels Insight (AFI)The maritime industry knowledge hub for alternative fuels

  • DNV GL ©

    What can be realistic alternatives for the years to come

    ▪ Fuels

    – Bio Fuels (and PtG, PtL fuels)

    – Hydrogen

    – LNG

    – LPG

    – Methanol

    ▪ Technologies

    – Batteries

    – Fuel Cells

    – Wind assisted propulsion

    13

    Summary: 12 pages Full paper: 40 pages

    Download: www.dnvgl.com/alternative-fuel

    Or look at AFI portal: Encyclopaedia

    http://www.dnvgl.com/maritime/publications/alternative-fuel-assessment-download.html

  • DNV GL ©

    2 pages brief information for discussed fuels and technology in the full version

    14

    ▪ General

    ▪ Price

    ▪ Infrastructure

    ▪ Regulations

    ▪ Availability

    ▪ Environmental impact

    ▪ Technology

    ▪ CAPEX

    ▪ OPEX

    Common structure of

    content for all fuels

    and technologies

  • DNV GL ©

    Total number of ships (in operation and on order)

    15

  • DNV GL ©

    LNG- CH4

    16

  • DNV GL ©

    LNG offers environmental performance superior to any other feasible marine fuel

    LNG Fuel:

    ▪ Clean burning engines

    ▪ No fuel heating

    ▪ No Separators

    ▪ Less filtration

    ▪ Less oil pollution risk

    ▪ Lower fuel cost

    ▪ Attractive payback

    ▪ Simplicity and proven

    technology

    SOx: 100 %NOx: 80 to 90%

    CO2: 20 to 25% PM: 100 %

  • DNV GL ©

    LNG as Fuel

    18

  • DNV GL ©

    There are currently 265 confirmed LNG fuelled ships, and 131 additional LNG ready ships

    19

  • DNV GL ©

    LNG fuelled fleet by vessel type

    20

  • DNV GL ©

    Area of operation for LNG fuelled ships

    21

    In operation On order

  • DNV GL ©

    All gas engine concepts are in use for ship propulsion

    22

    In operation On order

  • DNV GL ©

    PERFECt

    23

  • DNV GL ©

    Batteries

    24

  • DNV GL ©

    Total number of ships with batteries

  • DNV GL ©

    Number of ships with batteries by ship type

  • DNV GL ©

    Battery application and area of operation

    Battery application Area of operation

  • DNV GL ©

    Newbuild or retrofit?

  • DNV GL ©

    Newbuild or retrofit?

    0

    10

    20

    30

    40

    50

    60

    70

    Nu

    mb

    er o

    f sh

    ips

    Retrofit

    Newbuild

  • DNV GL ©

    Technology

    NB! Figure indicative as not all projects state if they are plug-in or not

    Propulsion

    Other

  • DNV GL ©

    Which batteries are being used?

  • DNV GL ©

    AIS-positions of ships with batteries

    32

  • DNV GL ©

    Fuel Cells

    34

  • DNV GL ©

    Fuel Cell Technology

    Output:

    ▪ Electricity

    ▪ Water

    ▪ Heat

    ▪ CO2 (only with fuels having C atoms)

  • DNV GL ©

    Technology Overview

    36

    Fuel Storage

    Fuel Processing

    (Reformation)

    Air / O2

    Complexity of Fuel Cell SYSTEMS

    To be integrated onboard

    Battery

    Consumer

    Electricity

    Exhaust

    Consumer

    Heat

  • DNV GL ©

    Technology overview- Fuel Cells types

    37

    Solid Oxide

    Fuel Cell

    PEM fuel

    cell

    HT PEM

    fuel cell

    Direct

    Methanol FC

    Molten

    Carbonate

    FC

    Alkaline

    fuel cell

    Phosphoric

    Acid FC

    Tolerance for cycling

    Sensitivity for fuel impuritiesRelative cost

    Regenerative fuel cell (RegFC)

    RFC – Redox

    Solid acid fuel cell (SAFC)

    Upflow microbial fuel cell (UMFC)

    Zinc-air battery

    Electro-galvanic fuel cell (EgFC)

    Enzymatic Biofuel Cells (EnzFC)

    Magnesium-Air Fuel Cell (Mg-

    AFC)

    Metal hydride fuel cell (MHFC)

    Protonic ceramic fuel cell (PCFC)

    Microbial fuel cell (MFC)

    Alkaline fuel cell (AFC)

    Direct borohydride fuel cell

    (DBFC)

    Direct carbon fuel cell (DCFC)

    Direct formic acid fuel

    cell (DFAFC)

    Direct methanol fuel cell (DMFC)

    Direct-ethanol fuel cell (DEFC)

    Molten carbonate fuel cell (MCFC)

    Phosphoric acid fuel cell (PAFC)

    Solid oxide fuel cell (SOFC)

    PEMFC

    High Temperature PEM

    Reformed methanol FC (R-MFC)

    Maturity and Relevance

    Flexibility towards type of fuel

    Technological maturity

    Physical size

    Modular power levels (kW)

    Lifetime

    Emissions

    Safety aspects

    Efficiency

  • DNV GL ©

    Maritime FC- Developments

    ▪ Start with first maritime FC

    applications in the early 2000

    ▪ Mostly based on European and US

    development programmes

    ▪ Technology readiness was proven:

    SOFC and PEMFC Technology

    are most promising for

    maritime

    ▪ Recent development projects

    focusing on a common rule frame

    work for maritime Fuel Cells

    38

    Maritime Fuel Cell Project Time table

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

  • DNV GL ©

    Maritime FC- Noteable Projects

    39

    Zero/V - Hydrogen Fuel-Cell Coastal Research Vessel

    Sandia partnered with the Scripps Institution of Oceanography, the naval architect firm Glosten and the class society DNV GL to assess the technical, regulatory and economic feasibility of a hydrogen fuel-cell coastal research vessel.

    Report published on 7th May- http://energy.sandia.gov/transportation-energy/hydrogen/market-transformation/maritime-fuel-cells/

  • DNV GL ©

    e4ships-Fuel cells for Marine Applications

    The Pa-X-ell project is developing a fuel cell ( methanol) module which is to be tested on a cruise ship, where it will provide

    decentralised generation of heat and power.

    The SchIBZ (which stands for ‘ship integration fuel cell’ in German) is developing a seagoing fuel cell system with onboard

    diesel reformer, which will be tested in everyday operation on the high seas.

    DNV GL internal use only

    40

    50 kW demonstrator plant built up

    Aggregate layout

    http://www.e4ships.de/aims-35.htmlhttp://www.e4ships.de/aims-39.html

  • DNV GL ©

    Benefits and Efficiency

    ▪ At optimal load, the fuel cell stacks have an electric efficiency of 50-55 %

    ▪ Compared with state-of-the-art marine diesel generators are just above 40 %. New ones

    claim 45%.

    ▪ Reduced noise and vibrations, improving comfort for crew and passengers

    ▪ Fewer moving parts lead to a reduction in maintenance

    ▪ Cleaner Emissions (Zero when H2 is used)

  • DNV GL ©

    Methanol- CH3OH

    42

  • DNV GL ©

    Methanol CH3OH - Properties

    ▪ Low flash point liquid = 12 degree C (LNG = -188 degree C)

    – Liquid at room temperature but has tendency to evaporate above flash point.

    Methanol vapour is more dense than air

    ▪ Self ignition point = + 465 degree C (LNG = 595 degree C)

    ▪ Toxic when it comes into contact with the skin or when inhaled or ingested

    ▪ Density about 0.78 t/m3

    ▪ Low risk IMO class III chemical, can be carried on easiest chemical carriers/ no

    need for double hull (at present).

    ▪ Heat value about 50% of LNG = need twice as much volume!

    43

  • DNV GL ©

    Alternative fuels - parameters

    Source: MAN

    Fuel type LNG Ethane Methanol LPG

    Heat capacity 49200 kJ/kg 47500 kJ/kg 20000 kJ/kg 46000 kJ/kg

    Specific Gravity 0.42 0.55 0.80 0.58

    Volume factor(ref. MDO)

    1.83 1.47 2.40 1.44

    FGSS cost 15 MW

    2.5 mill.USD 2.8 mill.USD 0.41 mill.USD 0.90 mill.USD

    Availability + - + +++

    Engine price +20 % + 20% +30% +30%

    Fuel Price (ref. MGO)

    ++ +++ + ++

  • DNV GL ©

    Methanol: Engine technology

    ▪ Fuel

    – Methanol is an excellent fuel for internal combustion engines

    – Methanol burns very cleanly with low NOx and particulate (soot) emissions

    and contributes to reduced emissions when mixed with typical fuels.

    ▪ Both Dual Fuel and “pure” methanol fuel engines have be developed

    – DF engines will be less efficient compared with oil engines in FO mode and

    less efficient than methanol engines in methanol mode

    ▪ Newbuilding

    – Both 2-stroke and 4-stroke marine engine technology available

    ▪ Conversion

    – Conversion of most existing engines possible

    – Much easier as conversion for LNG

    – Converted engines will have lower efficiency

    48

  • DNV GL ©

    Methanol: Advantages

    ▪ No need for pressurized or cryogenic tanks

    – Methanol can be stored/ transported in ship tanks similar as oil products

    – Much less CAPEX compared with LNG. Less loss of cargo space compared with LNG option

    ▪ Almost similar air emissions reduction as compared with LNG

    – No SOx, No Particular Matter (PM)

    – Less NOx (MAN LGI engines need “small scale” EGR or SCR only to be Tier III compliant

    – Less GHG, No methane slip

    ▪ Biodegradable

    49

  • DNV GL ©

    Methanol fuel for ships

    ▪ Technically Methanol could be a viable fuel option for shipping

    – Methanol is a green fuel (when produced from bio mass)

    – Due to it’s toxicity and low flash point methanol is somewhat more complicated to handle

    compared with HFO/ MGO BUT much easier to handle as LNG

    – Tank and engine technology is available

    ▪ HOWEVER

    – Commercially methanol doesn’t look as an attractive fuel option at this stage as price per

    energy content is much higher compared with MGO and HFO and additional investments are

    necessary to allow vessels to use methanol fuel UNLESS one has access to cheap methanol

    – Methanol as fuel does not solve the NOX/ Tier III challenge on its own but engines need to be

    equipped with small scale EGR or SCR on top

    50

  • DNV GL ©

    LPG- C3H8, C4H10

    51

  • DNV GL ©

    LPG

    – LPG is widely accepted

    – Meeting SOx requirement ( Max. 0.1 % sulphur )

    – Potential fuel cost savings ( Cheaper than MGO )

    – Cheaper in first cost when compared to a

    downstream SOx scrubber solution

    – Speculation in future fuel cost variation

    – An easy retrofit solution

    – Savings of both time and fees for fuel bunkering

    (When fuel can be taken from cargo tanks).

    52

    Emissions Reduction Estimation

  • DNV GL ©

    LGIP engine >>Top section

  • DNV GL ©

    Low Flashpoint Diesel Fuel Oils

    54

  • DNV GL ©

    Low Flashpoint Diesel Fuel Oils for Marine Use

    Motivation

    ▪ Reducing pollutant emissions caused by maritime shipping

    is on IMO‘s agenda

    ▪ Change to low sulphur diesel fuels is offering an effective

    short-term reduction potential

    ▪ Reduction potential of automotive diesel higher than for

    MGO due to less sulphur content

    Challenge

    ▪ Flashpoint of fuels used on board seagoing vessels not to

    be less than 60°C (SOLAS)

    ▪ Automotive diesel has a flashpoint of at least 55°C in the

    EU and 52°C in the US

    ▪ Exceptions for marine fuels with a flashpoint less 60°C are

    regulated in the IGF Code

    ▪ Low flashpoint diesel has not yet been included in IGF

    Code

    55

    MGO: Marine Gas Oil

    Results LFPD study - London, 2018-09-12

  • DNV GL ©

    Low Flashpoint Diesel Fuel Oils - Study

    Germany’s Federal Ministry of Transport and Digital Infrastructure

    (BMVI) initiated a study to evaluate diesel fuels with a flashpoint

    between 52°C and 60°C in shipping:

    ▪ Focus is on relative differences between low flashpoint diesel fuels

    and with flashpoint ≥ 60°C

    ➢ Differences in terms of risk

    ▪ Considering preparational investigation on characterization of

    diesel with FP 52°C (CCC 4/3/5, CCC 4/INF.11)

    ▪ Considering IMO Formal Safety Assessment (FSA) guidelines

    – Verify if new hazards exist (hazard identification)

    – Verify if existing risks may be changed (risk analysis)

    ▪ Study carried-out by means of representative machinery space

    considering normal operation and accidental conditions

    56

    FSA: Formal Safety Assessment

    FP: Flashpoint

    Results LFPD study - London, 2018-09-12

  • DNV GL ©

    Low Flashpoint Diesel Fuel Oils -Study Basis: Generic engine room model

    ▪ Generic engine room model representing typical size and

    arrangement for marine diesel operations

    ▪ Model is used for further evaluation of the specific fuel

    behaviour within the HazId workshop and risk

    assessment

    ▪ Model consists in the following sub-systems:

    – Storage tank

    – Transfer system

    – Fuel service system

    – Overflow system

    – Engine system

    – Exhaust gas system

    57

    Results LFPD study - London, 2018-09-12

    HazId: Hazard Identification

  • DNV GL ©

    Low Flashpoint Diesel Fuel Oils- Summary of the Risk assessment

    ▪ The experimental investigation showed:

    – No significant difference in the ignition behaviour due to the lower flashpoint

    – Slight trend to higher mass loss in low flashpoint fuels at 52°C

    – To increase the visibilities of the effect of flashpoint on characteristic properties a third diesel-like fuel with FP 43°C was

    investigated supported findings 52°C

    – Even for diesel fuel with FP 43°C no significant changes

    ▪ The numerical analyses showed

    – No significant difference in the concentration of the settle tank atmosphere of a diesel fuel with FP 52°C to that of a diesel

    fuel with FP 60°C

    – The engine room simulation showed no relevant differences between both fuels

    ➢ No further risks were identified

    ➢ No further risk control measures are deemed necessary

    58

    Results LFPD study - London, 2018-09-12

  • DNV GL ©

    Ammonia-NH3

    59

  • DNV GL ©

    Ammonia

    60

  • DNV GL ©

    Ammonia

    61

  • DNV GL ©

    Ammonia

    62

  • DNV GL ©

    Rules

    63

  • DNV GL ©

    Important condition for alternative fuels - International Regulations -

    ▪ The IGF Code entered into force 1 January 2017

    (practically all LNG fuelled ships ordered after the

    adoption of the IGF-Code in June 2015 follow this

    Code)

    ▪ Mandatory for all ships using gas and other low

    flashpoint fuels (with the exception of gas carriers;

    gas carriers follow the IGC-Code)

    ▪ Detail requirements for natural gas (LNG, CNG)

    ▪ Other low flashpoint fuels allowed, approval based

    on alternative design approach

    ▪ The IGF-Code is currently extended for methanol,

    low flashpoint diesel and fuel cell systems

    (storage of hydrogen will not be covered)

    64

  • DNV GL ©

    Development of international regulations

    ▪ The development of international regulations for low flashpoint fuels continues in IMO by a

    phase 2 development of the IGF Code.

    ▪ More detailed provisions for methyl/ethyl alcohol fuels and fuel cells is currently under

    development in IMO correspondence group reporting to IMO Sub-committee CCC.

    65

    2004

    NMA draft to IMO

    2009 January 2017

    Interim Guidelines

    MSC.285(86)

    IGF CodeEntry into

    force

    June 2015

    MSC95IGF Codeadopted

    Phase 2 development

    of the IGF Code initiated

    September 2014

    Phase 2 development

    of the IGF Code continues

  • DNV GL ©

    Regulation overview - status

    66

    Maritime Fuel Cell Systems

    Requirements for on-board energy generation systems Fuel specific requirements

    IGF code entered into force Jan. 1st 2017

    Contains detail requirements for natural gas as fuel only, and

    internal combustion engines, boilers and gas turbines

    Most classification

    societies have

    established Rules

    covering fuel cells

    and to some extent

    low flashpoint

    liquids

    Work started on technical provisions for methyl-/ethyl- alcohols

    as fuel and fuel cells

    Alternative Design Approach

  • DNV GL ©

    Class rules – prepared for a more complex fuel mix in the future

    67

    Methanol

    Ethanol

    Low flashpoint oil fuels

    Marine diesel oil

    Heavy fuel oil

    Low sulphur diesel

    LNG

    LPG

    CNG

    Hydrogen

    Main Class Gas Fuelled LFL Fuelled Fuel Cells (FC) Battery Power

  • DNV GL ©

    Regulation overview - Alternative Design

    68

    Currently, for Fuel Cells and Hydrogen

    ▪ IGF codes provides the possibility for alternative

    design process

    ▪ The equivalence of the alternative design shall be

    demonstrated by a risk-based approach as

    specified in SOLAS regulation II-1/55 and

    approved by the Administration

    ▪ The “Guidelines on Alternative Design and

    Arrangements for SOLAS Chapters II-1 and III

    (MSC.1 / Circ. 1212)” providing guidance to

    perform the Alternative Design Process

    Preliminary Analysis

    • Identification of rule deviations

    • Hazard Identification

    • Scenarios, methods and

    assumptions for quantification

    Quantitative Analysis

    • Quantification of selected

    scenarios

    • Comparison to conventional design

    Report of Assessment

    • Documentation

    • Presentation to flag

    http://one.dnv.com/imovega/MemberPages/IMODocument.aspx?docId=SL062155ABA

  • DNV GL ©

    CO2 impact

    69

  • DNV GL ©

    CO2 equivalent emissions of some fuel alternatives in shipping

    70

    TTP

    WTT

    For TTP no slip effects considered

    For WTT slip is considered

    Tank To propeller

    Well To Tank

  • DNV GL ©

    Sustainable energy supply Sector coupling (“Sektorkoppelung”)

    71

    Gas- and liquid fuels will be based on electrolysis of

    hydrogen from access electricity and on biomass

  • DNV GL ©

    The “final” fuels for shipping in a sustainable world

    72

    ▪ H2O H2+1/2 O2 (Hydrogen)

    ▪ CO2 + 4H2 CH4 + 2H2O: Methane (PtG)

    ▪ CO2 + 3H2 CH3OH: Methanol (PtL)

    ▪ n*CO2+n*3*H2 (‐CH2‐)*n +n*2*H2O (Synfuel: PtL)

    You only have to have CO2 and H2

    ▪ In a „sustainable energy world „ two energy consuming

    sectors will still need high density fuels

    – Shipping

    – Aircrafts

    Power to Gas (PtoG) and Power to Liquid (PtoL) Fuels (PtoG+PtoL=PtoF, Power to fuel)

  • DNV GL ©

    Low/no carbon fuels – Reduction of carbon footprint beyond fossil fuels is possible with:

    ▪ Fuels from hydrogen and CO2

    – Gaseous fuels (Power to Gas fuels): hydrogen, methane, propane/butane mixtures, DME,…

    – Liquid fuels (Power to Liquid fuels): methanol, diesel and gasoline like fuels

    ▪ Liquid and gas fuels from biomass: (biomass is a form of Energy biofuels are PtoF

    products)

    – 1. generation: based on foot crops: (e.g. ethanol, bio diesel)

    – These fuels are used for road transport

    – competition with foot production

    – 2. generation: based on wood and bio waste

    – These fuels are under development

    – 3. generation: based on algae

    – These fuels are in the research state

    73

  • DNV GL ©

    Price

    74

  • DNV GL ©75

  • DNV GL ©76

  • DNV GL ©

    Are alternative fuels too expensive?

    ▪ The figure gives indications for possible price ranges: values are derived from long time price relations between Crude oil

    Brent and the alternative fuels.

    ▪ All prices are related to the energy content of the fuel. No taxes no distribution included. Hydrogen not listed: (will have 3

    to 7 times of todays crude oil price)

    ▪ Energy prices are volatile and real differences at a given time may be significantly different from the figures given.

    77

    Crude oil Brent

    LNG (in Europe)=TTF price (lowest

    possible price for LNG in Europe)

  • DNV GL ©

    Availability

    78

  • DNV GL ©

    Ship fuel consumption is much lower than of diesel and gas oil consumption

    ▪ 25% of all diesel and gasoil consumed are HFO and MGO for shipping

    ▪ 24 % of all natural gas consumed is LNG and 76% is “pipeline” gas

    79

    Yearly diesel and

    gasoil consumption

  • DNV GL ©

    Production of possible ship fuels per year (relative energy content)

    ▪ All fuel alternatives can meet possible shipping requirements for the next 10 years when a small

    growth in shipping applications is assumed.

    ▪ If a rapid increase in market share of ship fuel occur a rapid increase in production capacity is

    needed for all fuels except LNG.

    80

    Approx. 10% of natural

    gas market

  • DNV GL ©

    SOx, NOx, PM emission effects of current ship propulsion technologies

    81

  • DNV GL ©

    FUTURE PROOF

    SCRUBBER

    Tier III: EGR/SCR

    HIGH CARBON

    Overview: How Fuel, Engine system and Emission are related

    82

    HFO LSHFO/MGOLNG (fossil fuel

    with lowest CO2)

    DIESEL

    OTTO

    COGES

    (PERFEcT)

    COMPLIANCE

    Tier III: EGR/SCR

    HIGH CARBON

    COMPLIANCE with 0,1

    MGO

    FUTURE PROOF

    HIGH CARBON

    FUTURE PROOF

    Tier III: EGR/SCR

    Reduced CO2

    FUTURE PROOF

    FUTURE PROOF

    Reduced CO2

    (CH4 SLIP)

    FUTURE PROOF

    Reduced CO2

    (NO CH4 SLIP)

    SOx

    NOx

    CO2

    SOx

    NOx

    CO2

    SOx

    NOx

    CO2

  • DNV GL ©

    NOx emissions can be reduced by changing the fuel (no exhaust gas treatment)

    83

    NOx emissions of alternative fuels

    Source: DNV GL calculations

  • DNV GL ©

    Summary

    84

  • DNV GL ©

    Summary (1/2)

    1. In particular, the decision of the International Maritime Organization (IMO) to limit the sulphur

    content of ship fuel from 1 January 2020 to 0.5 per cent worldwide, and the recently adopted

    ambition to reduce GHG emission by 50% within 2050 have the potential to become game

    changers

    2. There is an accelerating worldwide trend towards lower emissions of CO2, NOX and

    particles.

    3. DNV GL identified LNG, LPG, methanol and hydrogen as the most promising alternative fuels

    for shipping.

    4. DNV GL believes battery systems, fuel cell systems and wind-assisted propulsion have

    reasonable potential for ship applications.

    85

  • DNV GL ©

    Summary (2/2)

    6. The major challenges for alternative fuels are related to environmental benefits, fuel

    availability in the quantities needed for shipping, fuel costs and the international rules

    within the IGF-Code

    7. Of all fossil fuels, LNG produces the lowest CO2 emissions. However, it will not be

    sufficient in view of the IMO vision to de-carbonizing shipping.

    8. In a sustainable energy world where all energy is produced by renewable CO2-neutral

    sources, hydrogen and CO2 will be the basis for fuel production

    9. All propulsion concepts are capable of meeting the emission limits using any of the fuel

    alternatives.

    10.For international shipping, it should be noted that subsidies finance by taxes on fuel do not

    exist because there is no taxation on ship fuels.

    86

  • DNV GL ©

    SAFER, SMARTER, GREENER

    www.dnvgl.com

    The trademarks DNV GL®, DNV®, the Horizon Graphic and Det Norske Veritas®

    are the properties of companies in the Det Norske Veritas group. All rights reserved.

    Thank you for your attention!

    87

    Contact details:

    Anthony Teo

    [email protected]