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1.08 Twentyfour7. 17

around the globe

photo quiz

rapidly-growing colonial location?

What is this ancient,

You’ll fi nd the answer on page 71.

around the globe

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18 Twentyfour7. 1.08

THE WORLD OF POWER GENERATION is changing. Uncertainty and change are here to stay. There’ll be no going back to the ‘good old days’ of static utility monopolies, large centralized power systems and secure payback on investments. But we still expect equally good or even better levels of reliability and stability in the supply of electricity to our homes and businesses. And we do have to act to curb global warming.

POWER PLANTS DESIGNED purely for constant baseload operation or for short term peaking with poor energy effi ciency are rapidly becoming less desirable as they do not provide adequate fl exibility for responding to continuously changing conditions. The ability to competitively alter plant operation mode between baseload and peaking, and to deliver ancillary services for grid stability is becoming a true competitive edge. It’s like having a good hand in a game of cards.

WHILE FLEXIBILITY IS BECOMING a real necessity, the common task for the power industry is to actively reduce CO

2 emissions. The main means to this end

are renewable and low-carbon fuels, high effi ciency in electricity generation, carbon capture, and of course saving energy. Wärtsilä’s fl exible products play an increasingly important role in this task: we provide industry-shaping technical solutions and enable a smooth transfer from the generation mix of the past to modern energy solutions for the future. Last year alone, more than 5000 MW of wind power generating capacity was built in the USA, creating a rapidly growing need for fast, fl exible power plants able to balance and support continuous changes in wind conditions. Wärtsilä has recently sold almost 1000 MW of fl exible, gas-fi red power plants to the USA, supporting currently installed wind power systems and enabling further construction to proceed. Our role is to act as the wind power enabler, globally.

We will maintain our position as the industry leader in technology and services. It is the foundation for developing fl exible energy solutions for our customerss in this changing world.

CHRISTOPH VITZTHUMGroup Vice PresidentWärtsilä Power Plants

a changing worldPower for

A dream came true for Kim Salin, a 24-year-old football player from

Karkkila, in October 2007. He won a place in the Special Olympics Finland

football team, which took part in the World Summer Games in Shanghai.

Wärtsilä Stakeholder Magazine

TEXT: TOMI LOUNIO PHOTOS: PETRI HELANDER

[CORPORATE CITIZENSHIP]

A SPECIAL FOOTBALL STAR FROM FINLAND


Having always been physically talent-ed, Salin was disappointed to real-ise in his teenage years that his disa-

bility meant he could no longer compete - in

intellectual terms - with his peers. For a couple

of years he didn’t do that much sport, but got

a real boost when he found out that the HJK

Helsinki football club had established a brand

new team for persons with special needs.

Although the journey he has to make to

train with his new team is a long one, he’s

more than willing to make the trip. “I really

enjoy training hard with my team mates, but

match days are the best,” says this powerful

defender.

KICKING AROUND THE GLOBE

In recent years, Salin’s team has won the

Finnish Championship twice, but last year

was not so good as HJK/Special fi nished in

fourth place. He did however experience the

greatest moments of his footballing career

so far. In June 2007 he participated in the

Special Olympics European Games in Helsinki,

and in October spent two weeks playing

football in China.Many memories run through his mind as

he talks about his most recent trip abroad.

The best moment was winning against

Hong Kong in the Sunshine Soccer Stadium.

A 1-1 draw against Portugal was also a good

result, but recalling the losses to Poland, Ivory

Coast and Trinidad & Tobago makes him an-

gry. Finland’s overall position in their group

was fourth, but in Special Olympics the fi nal

result is not the main thing. As the oath for

the games says: ‘Let me win - but if I cannot

win, let me be brave in the attempt.’

Salin was brave - on and off the fi eld. For a

small town guy, the megalopolis that includes

Shanghai was something beyond reality. Even

though he’s a long way from being a chatter-

box, Salin had the courage to use all his rusty

English to communicate with both his oppo-

nents and the local people.

THE UNFORGETTABLE CITY OF SHANGHAI

The brilliant lights of Shanghai City, the

world’s tallest skyscrapers and busy street life

made a lasting impression on every mem-

ber of the team. Perhaps the most memo-

rable experience was the opening ceremony

at the Shanghai Stadium, attended by more

than 90,000 spectators. Another unforget-

table event was the host town programme in

Qingpu. Visiting a local family resulted in

a great deal of fun, in spite of the fact that

Salin soon gave up trying to catch mouthfuls

of fi sh with chopsticks. After the World Summer Games, Salin was

voted the most valuable player in his team.

According to head coach Jarmo Häggman,

his fearless leadership helped the other players

a great deal. Salin adds that although he was

initially disappointed because Finland didn’t

make a place on the podium, he now feels

quite proud of what was achieved. In May of

this year he’ll be setting off for the European

Games in Switzerland and Austria, and he’ll

be playing better than ever!

90,000 people attended the World Summer

Games opening ceremony in Shanghai Stadium.

Kim Salin (left) and team captain Antti Strömberg in the match against Ivory Coast.

[ AFRICA | AMERICAS | ASIA | EUROPE | OCEANIA ]

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PACIFIC OCEAN

PANAMA CITYAMAAX


TWENTYFOUR HOURS A DAY,

ships make their way through the Panama Canal, south to the

Pacific and north to the Atlantic, smooth as breathing, reliable as

the tides. Now the canal is sailing into its second century with a

bold expansion that promises to reshape the shipping world.

PANAMATO

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TEXT: WIF STENGER PHOTOS: JUKKA RAPO

Julio McInnes and Max Newman have decades of experience on the canal.

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reportage


MAX NEWMAN, a genial giant, leaps onto the tugboat Darién in a lashing

rainstorm. The head of the Panama Canal Authority’s tugboat section greets the crew with backslapping and hearty laughter. Newman spent most of a decade as a tug master before becoming an administrator. And he still keeps his hand in.

“When something new comes out, I want to experience it,” he says with a booming voice and twinkling eye. And there is plenty that is new right now.

The canal is on the cusp of its biggest challenge since it opened in 1914. By the time of the centennial celebrations, the Panama Canal Authority (ACP) intends to more than double the waterway’s capacity, opening a partial second parallel route with a wider set of locks.

This 80-kilometre channel will become an even more crucial crossroads for world trade. Each year, some 13,500 large ships use this shortcut between the great oceans. That number is constantly growing – and close to the canal’s maximum capacity of approximately 40 a day.

“We get more big, heavy vessels now than when I started 30 years ago,” says Capt. Julio McInnes with a slight West Indian lilt. “Things have defi nitely changed for the better. Our operations are safer, we have more power to handle bigger ships, and now we even have GPS and air conditioning onboard!”

Newman takes over the Darién’s joysticks and the tug scoots out into Mirafl ores Lake to assist a vessel through the locks. The car carrier Prestige Ace is a hulking

Today’s mighty tugs are controlled with joysticks.

PANAMATO

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blue-and-white monolith of steel, making the Darién and its sister tug look like bathtub toys. The 200-metre car carrier resembles a loaf of bread, sliced exactly to fi t through these locks. With a beam of 32.2 metres, this Panamanian-fl agged, Japanese-run ship slides into the locks with just half a metre to spare on either side. This is a classic panamax vessel, designed to maximize the amount it can carry through the canal. After 2014, the new channel will be open to post-panamax (PPX) vessels with a beam of up to 49 metres.

“The world’s merchant fl eet was largely built based on the dimensions of the Panama Canal, but this limitation on beam width is mostly disappearing in the shipbuilding industry,” says Heinrich Schmid, General Manager, Application Development, Wärtsilä in Switzerland.

A MAN, A PLAN. The broadest ships ever to navigate the canal were US warships which scraped through with just inches to spare during World War II. The Canal Zone had been US territory since 1903, just before excavation of the canal began. That came two decades after the failure of a French attempt led by Count Ferdinand de Lesseps, mastermind of the Suez Canal. The 1880s attempt claimed the lives of 22,000 workers – mostly West Indian, who fell victim to yellow fever or malaria.

“They knew it was dangerous. I guess they were in it for the adventure and the money,” says McInnes, whose grandfather, a Jamaican of French-Irish ancestry, came to work on the canal a century ago.

The Americans succeeded, thanks in part to the discovery that lethal diseases were transmitted by mosquitoes. Success was driven by US President Teddy Roosevelt, summed up in the famous palindrome “A man, a plan, a canal – Panama!” ‘TR’ engineered Panamanian independence from Colombia with the sole intention of setting up the Panama Canal. The idea was to achieve a fast and safe shipping route between the US coasts, saving a journey of some 13,000 km and avoiding the

p

dangers of Cape Horn.The challenges of building “the Big Ditch” were vast. For one

thing, the two oceans have different sea levels and tides. At the Pacifi c entrance near Panama City, tides can rise and fall by six metres a day, turning the city bay into mud fl ats. On the Caribbean side, tides change the water level by less than a metre.

Another challenge was cutting through the mountain ridge that runs all the way from Alaska to Argentina. The Gaillard Cut is the narrowest part of the canal, with steep sides rising into dense jungle on both sides.

“When I look at the Cut, it’s hard to imagine how a man could

start with a shovel and eventually a ship can pass through a mountain – it’s incredible,” says McInnes.

Now the fi rst major work on the canal since those days is under way. The expansion programme was launched in September by detonating explosives to begin excavation of the new approach channel to the Pacifi c Locks. A year earlier, Panamanian voters approved the plan, which has an approximate budget of USD 5.25 billion, a sum that includes USD 1.5 billion to cover infl ation and contingencies – a massive amount for a nation of just three million people.

“It’s a good investment for the country, for the ACP and for our clients, who are expecting that we expand capacity,” says Francisco Miguez, Coordinator of the ACP’s Expansion Master Plan and Contracts Manager for the programme. “We

reportage


“At the Paci c entrance near Panama City, tides can rise and fall by six metres a day, turning the city bay into mud ats.”

Large vessels wait till dawn to enter the canal.

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EMAXexpect to recoup our investment within 10 to 12 years.” The programme will be fi nanced through a combination of toll revenue and loans. The average vessel pays USD 80,000 to pass through the canal, some giant carriers have to pay more than a quarter-million dollars for the same trip.

FLOATING POWER. A key change brought about by the expansion is an expanded role for tugboats. The new locks will not include locomotives, which now guide – rather than pull – big ships through the locks. Instead, large vessels will be nudged into position by tugs.

The current fl eet of 24 tugs is being roughly doubled. New-generation tugs are 82% more powerful than the old ones, some of which have been in service for four decades. Each of the newest tugs is powered by a pair of Wärtsilä 20 engines, which allow acceleration from standstill to full speed of 12.5 knots in less than 15 seconds without heavy smoke. And those engines run 24/7.

“A tug is simply fl oating power,” says Newman. “It’s basically two big engines fl oating with the aid of a hull.”

We see – and feel – that power as a sudden thunderstorm cuts visibility to zero while the Prestige Ace is waiting to enter a lock. The Panama Canal is the only place in the world where every captain has to give up command of his ship to a local pilot, but McInnes reports that the ACP pilot in charge has no visual point of reference because the rain is so heavy. “We’ll just have to wait.” Amid the cloudburst and the waves, the tugs nudge the ship like tiny terriers, holding it precisely in position.

ANIMALS AND ARTEFACTS. Expansion of the canal is being accompanied by rapid growth in infrastructure. Container terminals are being enlarged and built at both the Atlantic and Pacifi c ends. Wärtsilä began offering ship service here in 2007, and will be boosting it with a new facility and more staff this year. Panama is increasingly being viewed as a convenient place for vessel ‘pit stops’. On average, vessels navigate the Canal in 11 hours but spend 24 hours in the area, including waiting to enter the Canal proper.

Meanwhile, a new parallel highway will be completed this year, and the 150-year-old Panama Canal Railway is experiencing a boom in container transport and tourist passengers. Tourism – including cruise ships – and a construction boom helped push the Panamanian economy to more than 8% growth last year.

Some are worried that this feverish growth threatens Panama’s environment, including the hemisphere’s second-largest expanse of rain forest. The canal area is home to iguanas, sloths and myriad species of birds and butterfl ies. Some 43% of the Panama Canal watershed is protected, essential since its wetlands and rivers supply the water that operates the canal’s gravity-fed locks.

Availability of water for the new locks was “a decisive parameter” for the scale


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reportage


“ The Panama Canal is the only place in the world

where every captain has to give up command of his ship

to a local pilot.”

The largest containerships squeeze through with just centimetres to spare. [Top]

Dressed in their Sunday best, a proud family watches ships sail by just before sunset. [Centre]

Tourists and cruise passangers are watching each other when a cruise vessel sails by. [Centre right]

PANAMATO

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EMAXof the expansion, says Schmid. “The size of the new canal is a compromise between ecological and economical considerations. If the locks were large enough to meet all expected future possibilities, the project could have become too costly from the environmental, fi nancial and social perspectives.”

Miguez stresses that the ACP is taking all necessary steps to mitigate social and environmental impacts on the surrounding area. Critics of the plan warned that an expansion of Gatun Lake would submerge villages and farms, wildlife and archaeological treasures.

“A handful of residences may have to relocate piers and so on, but no-one will have to leave their homes. All work will be done within the canal’s patrimonial areas,” says Miguez. He adds that the ACP will execute programmes to relocate wildlife and archaeological artefacts before construction starts.

The canal’s locks are themselves historical artefacts, something that becomes clear as we guide a Chinese containership into Mirafl ores Lock. Rollercoaster-like locomotives scurry along a monorail, helping to align the vessel. The lock gates close and the water level sinks, revealing century-old cement pocked with stones, moss, scrapes and paint. Despite their age, the locks operate quickly, quietly and smoothly, releasing nearly 100 million litres of water in just eight minutes.

UNFORESEEN OBSTACLES. While the ACP is trying to anticipate potential problems in the post-2014 era, some are beyond its control. A Lloyd’s Register study pointed out one unforeseen obstacle to PPX shipping to the US East Coast: the Bayonne Bridge. As typical post-panamax ships are 49 metres high, its clearance of only 46 metres doesn’t allow them to reach most New York and New Jersey container terminals.

“If they can’t berth the largest vessels, this will be a big problem, as transit cargo to the Midwest, for example, will use alternative

routes,” predicts Andrew Penfold of Ocean Shipping Consultants, who co-authored the Lloyd’s report.

Schmid suggests that feeder vessels may have to serve ports where there are limitations on size or capacity. Others argue that the Canal will still be too small in 2014.

“There have always been ships that don’t fi t here,” says Miguez. “But all of them were designed for other routes. For instance most big petroleum-product or oil carriers would not come through Panama anyway. We’re building these new locks to meet our customers’ actual and future requirements.”

Penfold agrees. “There will be a few container ships that are too large, such as Emma Maersk class vessels, but with the new panamax (NPX) capacity, this will not be a major constraint.”

reportage


CIRCLING THE GLOBE. Penfold sees major changes for container shipping. “The all-water route between East Asia and North America will become the most competitive option,”

he says. “Round-the-world services will become competitive as well – with much higher relay volumes using north-south feeders.”

“From northeast Asia to the east coast of the Americas, we’re going to be attractive to new markets and will continue to be the most competitive, reliable and safest route,” says Miguez. “Our market share is going to increase, so will safety and effi ciency. As we and our customers benefi t from the economies of scale provided by the bigger locks, the Panama Canal route will be more effi cient and profi table for everyone.” Close to 70% of Canal traffi c is already between Asia and the US.

In the meantime, Miguez insists, expansion will not affect current operations in any way. “What we provide to our clients is reliability, and we’re not going to compromise that during the construction.” Clearly, Panama is taking no chances with its cash cow.

“The canal is our petroleum,” said Roberto Roy, a member of the ACP board of directors. Panama is demonstrating that this resource is highly renewable.

“The Panama Canal Authority has launched programmes to minimize the social and

environmental impacts of the expansion.”

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pThings are certainly going Wärtsilä’s way these days. Ship Power’s order book is thicker than ever, and activity in the Power Plants market continues to be robust. Where do we go from here, CEO OLE JOHANSSON?

closecontactTHROUGHOUT ENTIRE LIFECYCLES

TEXT: LENA BARNER-RASMUSSEN PHOTOS: ARTO WIIKARI


SHIP POWER CUSTOMER SEGMENTSWärtsilä offers a wide range of innovative and industry leading products ranging from low- and medium-speed engines and gearboxes to propellers, thrusters, rudders, seals, bearings and ship automation systems. The Wärtsilä Ship Power customer segments are: Merchant, Offshore, Cruise & Ferry, Navy, and Special vessels.

The Merchant segment includes all vessels used for seaborne transportation such as container vessels, tankers, bulk carriers, RoRo vessels and other cargo vessels. Products delivered include main engines, 2-stroke and 4-stroke engines, as well as propellers and complete package solutions.

Offshore caters to the needs of the offshore industry. Wärtsilä delivers a wide range of products and solutions including automation products for use in the vessels and platforms used in oil and gas exploration and production, as well as in support equipment such as drilling rigs and anchor-handling vessels.

Cruise & Ferry delivers solutions for cruise ships, passenger ferries, cargo ferries, fast ferries and yachts. Wärtsilä has a strong position in main engines in this segment.

Navy includes different kinds of naval vessels and submarines. In this segment, Wärtsilä deliveries mostly consist of waterjets and seals, but also include some engines.

Special vessels delivers package solutions including 4-stroke engines, gearboxes, and shafts for installation in a wide variety of different vessels such as tugs, fi shing vessels and dredgers.

feature

”DURING the last six years we have witnessed an unprecedented boom in shipbuilding.

Actions taken by Wärtsilä during the fi rst half of the decade, such as streamlining of production and increasing specialization, have put us in a position to enjoy a large share of this cake”, says Ole Johansson.

What will keep Johansson busy in coming years is anticipating what products and services customers will want in the future, and how to deliver these while paying due respect to the environment. Fortunately, these two tasks support each other. Effi ciency usually means lower emission levels in both ship power and power plant applications.

Wärtsilä’s aim is to maintain close contact with each customer throughout the entire lifecycle of any products supplied. In fact, Wärtsilä wants to be in close contact with the customer even before the actual product even exists.

”Only very active and direct relationships can give us the right information about what is going on and what our customers need,” says Johansson.

During the autumn of 2007, actions were taken within Ship Power to follow through on developing and maintaining increasingly close customer relationships. Rather than a product- and solution-based approach, Ship Power is now organized into fi ve customer segments: Merchant, Offshore, Cruise & Ferry, Navy and Special vessels. This new structure enables Wärtsilä to anticipate future customer needs even better than before.

”Customer needs are our most important motivational driver. We need to fully understand the logic of each of our customers’ businesses to be able to address these needs in the most appropriate way”, says Johansson.

Broad product range. Throughout the current decade, Wärtsilä Ship Power has been developing its product range and is now able to offer a wide range of both hardware and software. Further expansion of the product range will remain an important focus in the future.

”We will continue to further develop and specialize what we offer to the fi ve customer segments. The new structure gives our organization even better possibilities to enhance its competences. We learn an enormous amount from our customers.”

The new organizational structure makes it easier to nurture long-term customer relationships that span entire product lifecycles. Buying a Wärtsilä engine is no one-shot experience. Over the last fi ve years, the company has developed from being just a supplier into a true service company.

In terms of personnel, the fastest growing division has been Wärtsilä Services, and according to Johansson, this division will continue to grow in terms of both net sales and staff. ”Every engine is a unique product. Around these products, we build close customer relationships we hope will last at least 20-30 years, or as long as an engine is in use,” he says.

Wärtsilä applies a similar customer-driven logic to its Power Plants organization and products. Power Plant segments are Flexible base load operations, Grid stability and peaking, Industrial self-generation, and Solutions for the Oil and Gas Industry. The product portfolio consists of gas, oil and biofuel-fi red power plants with outputs ranging from 1-300 MW. p


“ONLY VERY ACTIVE

AND DIRECT RELATIONSHIPS

CAN GIVE US THE RIGHT

INFORMATION ABOUT WHAT IS GOING ON

AND WHAT OUR CUSTOMERS

NEED.”


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”COMPARED TO OIL, GAS IS

THE FUEL OF THE FUTURE.”

Environmental responsibility. Gas-based solutions are a special focus area and Wärtsilä’s product range includes the biggest gas engines on the market. ”Compared to oil, gas is the fuel of the future. Demand is driven by environmental aspects, and in this context gas solutions fi t in very well, either as a source of primary energy or as a supplement to windpower,” says Johansson.

Future plans involve investments in smarter power plant solutions and in efforts to take good care of customers. ”We have a very broad product range when it comes to services.”

Smarter power plant solutions involve new ways of squeezing the maximum amount of energy from each drop of oil or cubic centimetre of gas. ”This is the best guarantee of sustainable energy production whether you view it from a production cost or environmental angle.”

Environmental issues have top priority. ”Today, environmental concerns constitute the greatest single source of infl uence on our product development efforts. Fortunately, cost reductions go hand in hand with emission reductions. The more effi cient an engine, the more environmentally sound it is,” says Johansson.

The goals Johansson has set for emissions reductions are ambitious ones. Together with MAN Diesel, Wärtsilä initiated the HERCULES project, which has the specifi c aims of radically improving engine effi ciency and thus reducing emissions.

”We need to think outside the box when it comes to the use of materials and combustion technologies. When it comes to environmental challenges, we have a huge responsibility. They are something we can turn into a source of positive energy for making smarter products,” he says.

Ole Johansson has been with Wärtsilä for more than 30 years, the last seven as President and CEO. What has kept him with the company through these years?

”A fascination with this organization and our customers rather than with the products themselves. It is truly fascinating to see how our people work together with customers to come up with innovations. It gives me an enormous amount of energy,” he says.

Energy is one of Wärtsilä’s three E’s. The other two are Excellence and Excitement. ”These are our values. My job is to make sure that our organization radiates high-level energy, quality and fun.”


ctacfeature

FROM PRODUCTION TO ASSEMBLYOver the last few years, Wärtsilä has worked hard on making the company’s production structure more fl exible. This enables a quick response to new market needs.

”Whatever the subject of an investment decision, we keep in mind the fact that our production facilities should provide us with maximum fl exibility. Compared to the situation a few years ago, our current production arrangements are much leaner even though production volumes have greatly increased. These days, Wärtsilä is actually more of an assembly company than a production company,” says CEO Ole Johansson.

Wärtsilä is limiting its current and future investments to assembly and test running. Investments in component production are left to subcontractors.

Current production arrangements provide the fl exibility required to shift production from one product to another in accordance with changing customer needs and shifting market trends.

Managing the supply chain takes a lot of effort, particularly in times like now when market demand is strong. Subcontractors must not only have the capability to deliver, they must also be highly service-oriented.

”We demand a lot from the companies we work with. The quality of components is just one issue. Our subcontractors need to understand both our business and our customers’ businesses,” says Johansson

Meetings and discussions with Wärtsilä’s network of subcontractors demands an ever increasing amount of Ole Johansson’s time. ”I spend a great deal of time with our subcontractors to make sure that every component is of high quality and arrives on time.”

”LAST YEAR WAS the best ever for Wärtsilä Ship Power in Brazil,” says Tomas Hakala, Managing Director of Wärtsilä in Brazil in Rio de Janeiro.

Both domestic and foreign companies in Brazil are constructing equipment for the country’s rapidly growing oil production and freight traffi c. After a long period of being dormant, the country’s ship construction industry emerged from its beauty sleep a few years ago.

Petrobras, Brazil’s national oil company, is renewing and expanding its existing offshore fl eet as well as subcontracting freight and exploration capacity. As with the ship construction industry, oil and gas activity is located mainly in the state of Rio de Janeiro.

“Petrobras’ investment program includes almost 30 new tankers over the next few years,” says Hakala.

NEW OFFSHORE DISCOVERYWhile Petrobras will need new tankers for production, many believe that Brazil will become a signifi cant oil exporter in the future. This may happen if exploitation of a massive but rather deep offshore discovery at Santos Basin begins. Announcement of the new fi nd in December was followed by widespread enthusiasm. It doubled Brazil’s national oil and gas reserves, lifting them into the global top ten.

Another new element is the decision by Venezuela’s PDVSA oil company to renew a portion of its fl eet in Brazil. In 2007, PDVSA

&BUSINESS WORLD

TEXT: JONI MÄKITALO


FINANCE

Brazil’s foreign trade set new import and export records once again in 2007. Freight transport increased in every direction, especially Asia. Growth in national transportation along the Atlantic coastline also increased the need for engines and maintenance.

ordered ten new tankers from Brazilian constructor EISA, and Wärtsilä will be delivering all the engines.

Brazil is the world’s largest exporter of agricultural products. Soybeans and sugar, high in profi ts and volume, are fl oated all the way from inland locations to the Atlantic by river. “We get regular orders for our medium-speed engines for the river pushers,” says Hakala, mentioning soy producer Hermasa as one major client.

Brazil’s economy ranks as one of the world’s ten largest. In addition to agriculture, the range of industries is wide. Government forecasts indicate that the annual increase in electricity consumption will be at least 4% until 2015.

NEW POWER PLANTS IN THE JUNGLEThermal power plants running on heavy fuel oil (HFO) or natural gas are popular in Brazil and produce more than a fi fth of Brazilian electricity. Last year, Wärtsilä completed the construction of three power plants in the City of Manaus in the Amazon jungle, and currently employs 130 persons there in operation and maintenance activities.

“We’ll be building the next power plants in the northeast of the country, for example in the states of Espírito Santo and Ceará,” says Hakala.

Hydropower is predominant in Brazil, with 75% of the country’s electricity being generated from its rivers. On the other hand, large new hydroelectric projects are no longer possible close to big cities where the electricity is needed most.

Another factor explaining the strong demand for thermal power in Brazil is the availability of heavy fuel oil. Brazilian roads carry plenty of trucks, and HFO is an inexpensive by-product resulting from national diesel production.

TROPICAL GIANT KEEPS LEAPING

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finance & business world

MODERN SOCIETIES are strongly dependent on electricity – the amounts being generated tripled between 1973 and 2005. Within the same timeframe, the world’s total requirement for primary energy has roughly doubled, so electricity’s share of overall energy consumption is substantially increasing. Among the biggest drivers of electricity consumption by consumers are the devices shaping modern lifestyles: air-conditioning equipment, personal computers and a wide variety of entertainment systems.

In catering for the rapid increase in electricity consumption, the problems are twofold: emissions resulting from power generation and the availability of fuels. While the challenge of emissions is very much the focus of today’s energy discussion, the emphasis is shifting from local emissions towards global greenhouse emissions. In the long term, the availability of fuels will be even a bigger challenge, one that requires attention today.

The EU is at the forefront in emphasizing the importance of renewable energy solutions, with ambitious targets of some 30% of electricity generation being based on renewable sources. While this may increase the price that consumers pay for electricity, it will certainly create opportunities for developing new technologies that can help in solving the energy challenge: the target is zero emissions using sustainable fuels.

WÄRTSILÄ IS A TECHNOLOGY PROVIDER. We develop solutions that use oil and gas resources in sound ways, as well as introducing technologies that enable the use of renewable fuels. When oil and gas are the energy source, effi ciency in power generation is of the utmost importance. Wärtsilä’s reciprocating engine power plants contribute to this high effi ciency target in multiple ways; high simple-cycle effi ciency, distributed power generation and combined heat and power (CHP) solutions.

The technologies we offer can provide electrical effi ciency of about 45% in a simple cycle application, and this level of performance is achieved with practically no consumption of water. It is important

to recognize that many power generation solutions consume large volumes of water in their cooling systems or steam processes, and water is already a scarce resource in many parts of the world.

Wärtsilä’s scalable power generation solutions are also easy to locate close to consumers. The advantages are clear: no losses in transmission and distribution results in signifi cantly higher effi ciency at the point of consumption. In fact, the 45% net effi ciency made possible by distributed power generation is diffi cult to achieve using any other solution.

IN LONGER-TERM DEVELOPMENT, we are engaged in providing solutions for new fuel sources. Crude vegetable oils are one of the most promising new ventures in creating new infrastructure in and around power generation. The use of solid biomass is another sector in which Wärtsilä is active.

The challenges facing future power generation are huge. Improved methods of power generation and technological development to allow the use of new fuels are however only half the solution, the other half – of equal importance - is saving energy.

power generation


The emphasis is shifting from local emissions towards global

greenhouse emissions.

A U T H O R : V E S A R I I H I M Ä K I , V I C E P R E S I D E N T, P O W E R P L A N T T E C H N O L O G Y

THE FUTURE OF

820082007 WAS YET ANOTHER RECORD YEAR in many respects. Market activity continued at a high level and once again Wärtsilä’s order intake showed strong growth in spite of a very high base for comparison, with new orders up by 22%. Net sales increased by 18% and profi tability improved to an all-time high of 10.1%.

Ordering activity continued strong both in Ship Power and Power Plants In Ship Power, activity in the offshore segment was clearly dominant at the beginning of the year, with numerous orders being booked for semi-submersible rigs, drillships, fl oating production units and a variety of supply vessels. During the latter part of 2007, orders related to various types of merchant vessel made a strong showing, and ordering activity related to smaller offshore supply vessels showed a slight downturn from the earlier very strong boom. Ship Power order intake in 2007 totalled EUR 2600 million (2270). Growth in Power Plant orders during 2007 was very strong at 38%, with the total reaching EUR 1421 million (1027). The increase in order intake was mainly based on orders for fl exible baseload power plants from Africa, the Americas and Europe. The largest individual orders came from Pakistan, Morocco, Trinidad and Tobago, Senegal and El Salvador. Wärtsilä’s total order intake for 2007 was EUR 5633 million, 22% up on 2006.

Net sales grew strongly and profi tability improved. Wärtsilä’s net sales for January–December 2007 totalled EUR 3763 million (3190), year-on-year growth of 18%. Net sales by Ship Power grew strongly by 34% and totalled EUR 1320 million (985). Net sales by Services grew by 22% to EUR 1550 million (1266), with 19% of the full-year fi gure for Services net sales being organic growth. Net sales by Power Plants were down by 6% to EUR 882 million (934). Growth in Power Plants during 2007 was limited by capacity and slot allocation between Ship Power and Power Plants. Net sales by Services accounted for 41% of Wärtsilä’s total net sales, the corresponding fi gure for Ship Power was 35% and for Power Plants 24%. The Group’s operating result improved to EUR 379 million (262), an increase of 45%. Profi tability was 10.1% (8.2).

Prospects for 2008. Based on the Group’s strong order book, Wärtsilä’s net sales are forecast to grow by some 25% in 2008 and profi tability will exceed 11%. Wärtsilä’s profi tability varies considerably from quarter to quarter and this pattern can be expected to be repeated in 2008. The fi rst quarter is likely to be the weakest and the last quarter the strongest.


[FA

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]Another record year

REVIEW PERIOD 1-12/2007 IN BRIEF

MEUR 1-12/2007 1-12/2006 ChangeOrder intake 5 633 4 621 22%Order book, 31 December 6 308 4 439 42%Net sales 3 763 3 190 18%Operating result 379 262 45%% of net sales 10.1% 8.2%Profi t before taxes 372 255 1) 46%Earnings per share, EUR 2.74 2.03 1)

Cash fl ow from operating activities 431 302 43%Interest-bearing net debt at the end of the period -27 55Gross capital expenditure 231 193 20%

FOR MORE FINANCIAL INFORMATION, PLEASE VISIT WÄRTSILÄ’S INVESTOR SECTION AT WWW.WARTSILA.COM.

In 2008 net sales are expected to grow some 25% and profi tability will exceed 11%.

WITH FURTHER STRONG GROWTH IN ORDERS

1) For comparability reasons

the 2006 fi gure does not

include Wärtsilä’s share of

Ovako’s profi t after taxes, EUR

67 million, and the capital gain

of EUR 124 million from the sale

of Assa Abloy B shares.

A U T H O R : J O S É P H I N E M I C K W I T Z , D I R E C TO R , I N V E S TO R R E L AT I O N S


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Regardless of whether a power planthas 500 employees or none, someonehas to keep watch over it at all times. Condition Based Maintenance (CBM) is a reliable guardian that double-checks a plant’s operational parameters and helps evaluate wear and tear. This ITC-driven remote monitoring concept is becoming the industry standard in securing safe and continuous operation. AL

WATCHTOWER

TEXT: MARJA BERISA ILLUSTRATION: KLAUS WELP

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Constant monitoring of performance parameters is the best way to optimize key component lifecycles.

IMAGINE a huge luxury cruise liner sailing across the Atlantic, hundreds of miles from land. Pilot lights on the engine room control panel suddenly start to blink. It seems there’s a slight problem with the fuel injection system, but what exactly is wrong? A few sweaty manhours later the leaking control valve has been fi xed.

In another scenario, thanks to an ever-vigilant CBM system that has notifi ed the need for replacement well in advance, the leak never materializes. Through a streamlined system of connections between the vessel, an online satellite and Wärtsilä’s CBM Centre, the retrieval and analysis of operational data from an installation forms a reliable basis for proactive maintenance.

Keeping Manaus running. “CBM is an old concept with today’s fl avouring. It’s the opposite of scheduled or reactive maintenance. The IT aspect – the exchange of information via satellite, LAN and fi xed network connections – lends itself to real-time and proactive use, which means that an installation’s service needs can be predicted, optimized and ultimately made more cost-effi cient,” says Tomas Hakala, Managing Director of Wärtsilä in Brazil.

Hakala is no stranger to “hard-core” CBM: under his

leadership, Wärtsilä Brazil operates and maintains three Manaus-based power plants. The three independent power producers – Geradora de Energia do Amazonas (GERA), Companhia Energética Manauara and Rio Amazonas Energia SA chose Wärtsilä as their supplier. The selection criteria included Wärtsilä’s ability to provide full operation and maintenance (O&M) services.

“The contracts are for 10 and 5+5 years, and we’ve been successful in providing everything required,” says Hakala. “The CBM solutions used in these three plants are crucial to the overall success of these operations. The plants have a 20-year power-purchase agreement with Manaus Energia.”

The importance of these three power plants to the City of Manaus cannot be overestimated – the city is not connected to the national power grid but has its own “island” grid. In a sense, Wärtsilä is responsible for keeping Manaus up and running.

“For better and for worse, Manaus is in the middle of the rain forest, a fairly isolated location. So any of the power plants experiencing stoppages is simply not an option. That’s duly noted in our O&M agreements, which stipulates stringent requirements for availability and reliability. With CBM on stream our experts in Vaasa or Trieste or elsewhere have virtual access to the plants at all times,” says Hakala.

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If it ain’t broken… The CBM concept helps to optimize operations, minimize inspection overhauls, replace parts at optimal intervals and tune maintenance to correspond to other business factors. In practical terms you could think of a familiar brand of car – Volvo, Toyota etc. – and visualise a smart way of dealing with scheduled maintenance.

“If you go by the manufacturer’s manual, the fi rst scheduled maintenance would come up after about 10,000 miles,” says Hakala. “However, depending on the kind of a driver you are, the actual service interval lies somewhere between 8000 and 13,000 miles. If the car was CBM-enabled, an indicator light on the dashboard would go off a hundred miles or so before the actual service was required. Wouldn’t that be much more convenient?”

“According to our calculations, the optimized operation and maintenance resulting from CBM solutions can achieve fuel cost savings of 1-5%,” says CBM Manager Johan Pellas, Wärtsilä Services. “Maintenance cost savings range from 10-20% during an installation’s lifecycle over a period of 30,000 operating hours. Another advantage lies in the solution’s predictive power.”

“As a rule of thumb it’s possible to identify 80% of critical service targets during a 7-14-day advance period,” he says. “In

CONDITION BASED MAINTENANCE 101

THE WORKING PRINCIPLE of a CBM solution is simple enough: operational data from an installation is collected by computers and integral sensors. Data consists of the output from control and monitoring systems – pressures, temperatures, speeds, loads, vibration – and is automatically sent to Wärtsilä’s CBM Centre. Each installation and the centre are linked via a secure Internet connection, digital telephone line or onboard e-mail server.

ONCE THE OPERATIONAL DATA has been received, Wärtsilä’s specialists evaluate it using software developed in house. Factors such as engine specifi cation, installation confi guration, ambient conditions and design criteria are all included.

AFTER THIS EVALUATION, the CBM Centre reports back to the customer. According to the user group, reports focus on environmental, technical or performance assessments. The level of maintenance recommended is illustrated via a ‘traffi c-light’ system, in which a green engine symbol represents ideal operation and red is a prompt for proactive maintenance.


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a similar way, it’s possible to predict 80% of required maintenance 1-4 months in advance. This is a huge help, especially when you bear in mind that up to 80% of failures have to do with human error: the information required to establish an installation’s condition is usually available somewhere, but it’s either misunderstood or service actions are performed incorrectly.” This is the way in which insurance companies, for example, view the possibility of human error.

CBM: reliability, safety and availability. CBM is becoming an industry standard, in the same way as Best Practices or Prudent Utility Practices. “It brings us key technological information that facilitates the jobs of both technical personnel and management,” says Hakala. “Constant monitoring of an installation’s performance parameters is the best way to optimize key component lifecycles. We can eliminate redundant part replacements and unnecessary maintenance that interrupts the operation of a power plant or vessel.”

Safety is also a key issue, especially with marine installations. Here the CBM concept helps pinpoint suitable maintenance intervals so that work can be performed during turnarounds.

“In today’s business, sophisticated engine and auxiliary system solutions are the starting point, not a crucial competitive edge,” says Hakala. “Companies capable of delivering reliability and availability at a sustainable price have the upper hand, and for us CBM is one means to an end. I’m convinced that CBM concepts which result in increased availability and running time will represent a key issue for the entire industry – along with the price of electricity.”

Currently, more than 200 installations around the world are connected to Wärtsilä CBM solutions. Wärtsilä was the fi rst engine manufacturer in the world to sign CBM contracts within the cruise and offshore drilling industries.

CBM SECURES SMOOTH SAILING FOR WEST NAVIGATOR

IN APRIL 2007, the drill ship West Navigator became the fi rst vessel to have a 24/7 online connection to Wärtsilä’s CBM Centre. Built in Korea in 2000 and now operating off the Norwegian coast, the ship is operated by drilling contractor Seadrill Offshore AS. Using dynamic positioning, West Navigator can drill down to 9000 metres in water depths of up to 2500 metres.

THE VESSEL IS POWERED BY seven Wärtsilä diesel generating sets: four 6-cylinder in-line Wärtsilä 46-engined sets and two 16-cylinder Wärtsilä 32-engined sets.

THE CBM ONLINE SERVICE uses a combination of the online monitoring of mechanical and thermal condition, system effi cacy data and other indicators to assess engine condition. All data acquired from the shipboard system is transmitted in real time to Wärtsilä’s service engineers at the CBM Centre in Vaasa, Finland and to Seadrill’s offi ce in Stavanger, Norway. The service team can then make an accurate assessment of the installation’s overall status and condition.

THE ONLINE SERVICE is a valuable development of Wärtsilä’s range of CBM services for the marine industry. Wärtsilä has existing CBM contracts on more than 200 ships and power plants including almost 700 engines with a total global output of more than 5700 MW. To date, the major marine segments for CBM services have been cruise, offshore and general cargo vessels.

REDUNDANT PART REPLACEMENTS AND UNNECESSARY MAINTENANCE THAT INTERRUPT OPERATION CAN BE ELIMINATED.

THE DRUNEN UNIT in the Netherlands is right at the heart of many of Wärtsilä’s advances in ship propulsion. The aim is to extract as much as possible from design effi ciencies in order to reduce fuel consumption and emissions – both of which are urgent questions for customers facing rising fuel bills and tighter environmental regulations.

In the 1.2007 edition of Twentyfour7., Do Ligtelijn, General Manager Propulsion Technology, provided a graphic description of propeller cavitation and global efforts to tackle it. “In general, propeller behaviour predictions since the 1930s have been based on laboratory

INNOVATIONResearch & DevelopmentDR&


AT THE LEADING EDGE. Simply not available in earlier times, high powered information technology is now employed to compute the complex mathematics models. “Universities and research institutes developed Computational Fluid Dynamics (CFD),” says Ligtelijn. “Wärtsilä uses a commercial computer program for engines, propellers, and waterjets as a tool for design and research into problem areas. We can now predict propeller behaviour using CFD methods. In just one day we get ‘full-scale’ feedback which is at least as good as model tests - or better. We’re at the leading edge in applying this science in our fi eld.”

Though current tools are inadequate for predicting cavitation, future CFD methods are viewed as the way forward. “Cavitation is a phenomenon which requires fundamental investigation as the dynamics are not properly understood,” says Ligtelijn.

“Through cooperation with the Aker Arctic Research Centre in Helsinki, we are investigating expected ice loads on both propellers and ships,” he says.

BLADE TIPS YIELD INCREASED EFFICIENCY. All this brainpower and information technology has born fruit. Although state-of-the-art CFD tools have been used in propeller design for some time, a ‘lifting surface-type’ program from the University of Texas Austin is the current workhorse. Even though it involves some simplifi cation, it does the job quicker.

Sophisticated information technology is allowing Wärtsilä scientists to examine the performance of propellers, a ship’s driving force, in ever greater detail.

model tests to fi nd the overall power needed to propel a ship at contract speed, based on which the yard is actually making the fi nal product.”

Propeller research and development now embraces information technology, as tests using models are not able to forecast accurately enough what happens in real life. “Our R&D is concentrated on fi nding methods that overcome these drawbacks, which are called ‘scale effects’. As testing and reality are dissimilar, we are seeking calculation methods that give more reliable results for full scale ship and propeller behaviour than predictions based on model tests.”

TEXT: JOHN PAGNI PHOTOS: WÄRTSILÄ

p

Effi cient propeller design reduces both

fuel consumption and emissions.

Even though digital techniques are used in both design and manufacture, some propeller details still require the human touch.

PROPULSION TECHNOLOGYShaping the future of

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TIP RAKERaking a propeller’s tip changes the fl ow of water around the tip, which results in higher levels of effi ciency. In large fi xed pitch propellers (FPP), the positive effect can be as much as 3%.

BOLLARD PULLA value expressed in tons giving the maximum pull a ship can exert, allowing comparison of different propulsion confi gurations. As model tests are in most cases not performed, bollard pull values are very often based on results of calculations.

DUCTED PROPELLERCompared to open designs, propellers surrounded by a nozzle are more effi cient because the nozzle accelerates the water towards the propeller, thereby reducing its load. This leads to higher effi ciency in moderately- to heavily-loaded propellers.

At Drunen and other Wärtsilä Propulsion Delivery Centres, use of this program has enabled the introduction of high-tech design into special propeller-blade cross-sections resembling an airplane wing. “A correct propeller blade profi le can achieve improved effi ciency and reduced cavitation. Special blade sections can be fi netuned for each individual propeller, which is also tailored to each ship,” says Ligtelijn.

Special blade tips, similar to the ones used on an aircraft’s wings, are also being employed. The fi rst of these, the Lips Tip Rake Propeller, has blade tips that bend towards the rudder and offers several benefi ts: reduced cavitation and lower levels of vibration and noise, all of which raise overall effi ciency by some 2%.

SECRETS IN THE FOUNDRY. Every propeller must be manufactured precisely if it is to meet its design goals. “Although we’ve invested in digital machinery, measurements are vital to ensure that the result is within tolerance limits, as not every detail of a propeller can be numerically machined yet,” says Ligtelijn.

“One of our teams has performed extensive materials trials to look beyond the traditional copper alloys and create new and improved alloys. Also non-metallic composites are being studied. Using higher strength materials allows us to design propeller blades with reduced thickness. As this puts the focus back on performance predictions, casting of the alloys must be spot on.”

At Wärtsilä’s foundries in Drunen, Zhenjiang (China) and Santander (Spain), laboratory tests on

“A correct propeller

blade profi le can achieve

improved effi ciency

and reduces cavitation.”

Research & Development

800820TS


alloys are carried out just before casting takes place. “The small additions come from each foundry’s secret cookbook – they can have a signifi cant infl uence on material properties.”

REDUCING LOSSES BEHIND THE HUB. Teus van Beek, Director R&D, Energy Effi ciency Program, is in the fortunate position of being able to see R&D become reality. One example is the improved CPP E-Hub, which has upgraded strength suitable for ice conditions. It has been gradually introduced to the market over the last two years.

“There are now several operating references which have demonstrated a 2% saving in power demand due to lower losses behind the hub,” says van Beek. More fuel is being transported in icy waters and we were able to support this market requirement for ice-strengthened vessels at just the right time.”

Another example is the Wärtsilä HR Nozzle. According to van Beek, this unique design gives much better bollard-pull characteristics – an improvement of some 8% for the same power input purely as a result of its hydrodynamic shape.

“Nozzled propellers generate 25% more

bollard pull than a propeller alone. Our nozzle development is the fi rst advance in 30 years for vessels that have moderately- to highly-loaded propellers.”

Since many of the world’s ships with suitable propeller loadings are not fi tted with nozzles, Van Beek sees huge potential in replacing old propellers with ducted versions or incorporating these advanced designs in newbuildings.

AT THE END OF THE POWER LINE. “We’ve developed a product called Effi ciency Rudder™ that combines rudder and propeller thinking,” say van Beek. “Designing these two components at the same time offers savings in fuel consumption of 3-7%. One of the original patented features is the ‘torpedo’ positioned behind the propeller.”

There are now 30 installations plying the seas on different vessel types, a clear demonstration of how R&D is redefi ning seaborne transportation. “Wärtsilä’s position in overhauling the entire power train is strengthening. Combining a vessel’s engine, gearbox, propeller and rudder into an integrated whole is a better option than seeking optimised separate solutions,” says van Beek.

HORIZONTAL AND VERTICAL INTEGRATION IN R&D

THE PROPULSION Technology department headed up by Do Ligtelijn has been woven into a new Global R&D unit within Wärtsilä Industrial Operations. Preparations for the move have been under way for some time.

According to Ligtelijn, the new arrangements will benefi t synergies in several fi elds, including computational fl uid dynamics (CFD) concerning fuel and exhaust fl ows in 2-stroke and 4-stroke engines. “We can always learn from each other as these areas involve identical CFD methods, if not exactly the same focus,” he says.

MATERIALS IS ANOTHER area in which synergy benefi ts are expected. “While we are experts in non-ferrous materials, Engine R&D knows a lot about ferrous metals,” says Ligtelijn. Activities in tribology, the science and technology of interacting surfaces - lubricating oil fi lms in pistons and cylinders, controllable pitch propellers, or shafts supported by bearings - also overlap. And vibration and noise levels are items that everyone has to deal with.

Many Wärtsilä products also share common features. “Further integration of our activities makes real sense,” says Ligtelijn. “Working together and exchanging experiences means that synergies already active in engines and propulsion systems – and also those not yet exploited – are certain to result in overall gains.”

TEUS VAN BEEK will also be affected by the new structure. “I’m part of Ship Power R&D which deals with developments in propulsion technology. In Ship Power, the focus is on customer segments merchant shipping, offshore, cruise and ferry market, navy and special vessels.”

“We try to bridge the gap between external and internal customer requirements and put the results into new products and next-generation solutions. Teams working under Do Ligtelijn carry out basic R&D and we interact when making use of Wärtsilä Industrial Operations R&D,” says van Beek.

Research & Development

There is huge potential in replacing

old propellers with ducted versions.

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TEXT: JAN KARLSSON ILLUSTRATION: STEWART GRAY

ENGINE GENERATING SET

1. ENGINE GENERATING SET

The EG set delivers electrical power.

2. ENGINE AUXILIARY MODULE

The EAM supplies the engine with lubricating oil and compressed air. It also pre-heats the water before start-up and controls cooling water temperature when the engine is running.

3. COMPACT BOOSTER UNIT

The CBU delivers fuel at the correct viscosity, pressure and fl ow rate. It also cleans the fuel and collects both clean and dirty leak fuel. A separator for removing impurities from lubricating oil is also located on the CBU.

1.


Wärtsilä has been delivering modular power plant solutions for more than two decades and the degree of modularity has increased over the years. The current module portfolio consists of about 400 module types, with some 200 being Wärtsilä’s own design.

Power plant modules are used in several locations starting from the unloading of fuel, lubricating oil and other process-related functions. The focus of modularisation is around the engine and inside the power house.

Rapid installation time is one of the main benefi ts of using modules. Prefabrication also ensures consistent high quality. Other benefi ts are compact and predefi ned sizes for container transportation, and the use of well-proven components from well-known suppliers.

For customers, modularised design means higher total feasibility in their power plant investment.

2. 3.

MODULARITY IN WÄRTSILÄ POWER PLANTSand fl exibility

AUTHOR IS GENERAL MANAGER, MODULARISATION, WÄRTSILÄ IN FINLAND

ENGINE AUXILIARY MODULE COMPACT BOOSTER UNIT Coolant in and out

Fuel supply

Kp


Kivi communicates constant motion. He’s one of those people who listen with an intense gaze, but at the same time seem to be longing to move around, eager to start work on the next big idea. Somehow, you just know he’s itching to get his hands on an assignment.

After graduating from the University of Art and Design in Helsinki as both an interior architect and industrial designer, Vertti Kivi has run his own design company since 1994, becoming a household name in his fi eld.

While the work of dSign Vertti Kivi & Co has resulted in distinctive focal points in the Helsinki restaurant scene, there is a lot more - hotels both in Finland and abroad, retail stores, the major bank chain Sampo, offi ce spaces. With 250 projects completed, there are plans for more projects abroad. Just recently, Kivi visited an excited future customer based in Hong Kong.

“It would be ideal to have one in every three of projects abroad.” But for a father of three, there are good reasons for not letting work steal too much of his time.

In design, business strategies get their chance to become part of life. For Kivi, design isn’t just about choosing the right kind of chair, nor does it play the role of being mere eye candy.

Through design, strategies - and therefore success stories – are positioned in spaces. Fresh, well-planned design created in line with a client’s business strategy literally acts as a gateway to that company.

“It’s through new spaces that customers step into a revitalised company. Design isn’t something separate, it has to be a seamless component in a company’s functions.” Careful planning pays off

- and innovative solutions aren’t necessarily just a matter of money, says Kivi.

In a new project, the client’s needs and ideas come fi rst. It’s crucially important to get management wholeheartedly involved in the design process. “Everyone’s commitment is important.”

Samuli Hintikka, who’s responsible for dSign operations, speaks passionately about the design process. “We need to get inside each client’s dna and then develop ideas together. We like to see ourselves as a new kind of advertising company - strengthening our customers’ brands, employing professionals from fi elds outside just interior architecture.”

It’s all in the doing, seeing the right shapes emerge as the process proceeds. “At the beginning of a project, nobody really knows what the best solutions will turn out to be. Communicating our vision in the right way is important, as is bringing up problems as soon as they arise,” says Kivi.

Kivi imagines the people who will be moving around, working in and enjoying the space he is creating. Ultimately, it’s all about the feel-good factor and atmosphere, getting those “Oohs” and “Aahs” from people as they enter a space.

An appealing space acts like a people magnet. Inspiring offi ce space raises levels of motivation. Customers who enjoy the atmosphere will return.

And the distinctive feeling Kivi searches for certainly came to life in one of his most recent creations, the La Société du Cochon restaurant in the heart of Helsinki. At lunchtime, it is packed with bubbling customers.

It’s a space that takes conscious risks while offering delicious contrasts, right in line with the restaurant’s food philosophy.

Kivi is essentially the creative leader of his pack, the one who lays the foundations for each vision, but he’s also in love with the details. As he tells

SpaceMission for

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TEXT: MINNA TAKKUNEN

PHOTOS: TOMMI TUOMI

Successful interior designer Vertti Kivi knows how to create

that special something. Inviting spaces really

can have strategies integrated into them that boost business.

Ultimately, it’s feelings that show the way.


passion

Achieving a recognizable signature look is not on Vertti Kivi’s list. In his scheme of things, successful solutions must be tailor-made.

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r Kus, grinning, that he drove all over southern Finland on a motorbike searching for just the right type of wooden furniture for this restaurant, it’s easy to imagine.

Listening to his design philosophy, it’s absolutely clear that copying something which worked on a previous occasion isn’t on the list, nor is achieving a recognizable signature look. Successful solutions have to be tailor-made.

“Far too often, spaces seem to have been designed for people who aren’t necessarily using them, like other designers or architects. It’s no use designing environments that people aren’t drawn into. Just as often, it’s pretty clear that design hasn’t been given much thought at all.”

A journey from three-dimensional chaos to spatial heaven. Concentrating on a multitude of details can easily bring about chaos in three dimensions, with such a huge range of options for materials, lighting and colours. Kivi emphasizes the importance of having a good team and says he’s very proud of the one he now has.

”But the design process shouldn’t just be about refi ning chaos. Defi ning everyone’s role in the team keeps everything organized, which gets really important when all the elements keeps changing en route to the correct solutions.”

Success means Kivi has the trust of his clients. It’s also brought a down-to-earth confi dence which helps in concentrating on the right things.

So how does he view the restaurant space we’re sitting in, now that it’s just about up and running? He smiles and says “Yes, well there are some things I’m still thinking about.”

“It’s a good sign – it means you are developing, being positively dissatisfi ed with what you’ve done. Mistakes are not something to be scared of, they provide excellent opportunities to learn. I’m usually only happy with the latest design. Constant questioning is essential.”

Kivi also has a stern belief in completing projects right down to the last detail. And talking about details, he’s on the move again, supervising the installation of some spotlights on one of the restaurant’s walls.

Looking at today’s world, a mission to create more satisfying spaces will be a never-ending story for someone with this strong a drive.

Design isn’t something separate, it has to be a seamless component in a company’s functions.”

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solution


THE RENEWED service categories offer easy access and browsing of the Wärtsilä offering. Of these, the Operations and Management (O&M) category has the broadest scope which packages different products and services to provide the customers with complete solutions according to their needs.

Wärtsilä Operations & Management is responsible for long-term agreements relating to land and sea-based installations. The business has grown steadily and currently Wärtsilä operates more than 140 power plants, marine and offshore installations with a total output of 3600 MW in 32 countries around the world. More than 1900 people worldwide are dedicated to these installations to ensure maximum performance.

Justifi ed risk-transfer. Services provided in this category cover, according to the specifi c contract in question, anything from follow-up checks of engine performance to management of entire plants. According to Arnauld Filancia, responsible for Marketing and Communications for Wärtsilä Services, O&M is a platform where sustained performances build up mutual trust.

“The idea is to build long-lasting partnerships that have a much broader scope than traditional supplier-customer relationships. Letting an external partner basically assume responsibility for your investment is a decision requiring both risk-taking and trust. However, today it’s a necessary step for any business owner hoping to focus on his core business,” says Filancia.

Wärtsilä has, for example, power plant customers in Brazil and India whose main interest in the utility business is fi nancial. As the generation of electricity is cheaper than buying it, these customers produce electricity for their own use and sell the excess to the local power grid. An O&M agreement gives them the freedom to focus on their core business while getting the assurance that their investment will be productive and that the asset value will be maintained.

“Owners often prefer to outsource the entire operation to Wärtsilä via an O&M agreement. Offering improved reliability and continuity, the key issue is to secure availability p

Wärtsilä’s service portfolio can handle customer requests of all sizes. From delivery of a 50-gram valve seal to running a 50-MW power plant, the company is constantly on the lookout for new ways to secure customer profi tability.

THE WHOLE NINE YARDS

TEXT: MARJA BERISA

PHOTOS: WÄRTSILÄ

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of electricity and effective running of the plant.Traditionally, maintenance services are procured from engine manufacturers, but Wärtsilä’s model goes beyond and covers all equipment, from any manufacturer,” says Filancia.

In process industries and related fi elds, a ten-second break in power can cause production downtime leading to millions in lost revenue. As power generation is critical to profi tability, O&M agreements bind the service provider’s and customer’s performance together. In such scenarios, the service provider only wins when the customer’s processes run smoothly and profi tably.

In the middle of the jungle. “Also, many of the plants that we help run are located in diffi cult conditions, locations where grids and networks aren’t always 100% reliable. For example, we run three plants in Manaus, Brazil, which are part of an island grid that has no connection to the national power grid. Running these plants has tuned our skills to the maximum and we’re proud of the fact that we’ve been successful,” says Filancia.

Wärtsilä’s O&M services cover all aspects of operating and maintaining an installation, planning the right maintenance schedules, day-to-day operation, unscheduled maintenance, administration, human resources and training, technical support, logistics management and security. Prior to the operational stage of an installation, the O&M agreement specifi es the necessary

MANY OF THE PLANTS THAT WE HELP RUN

ARE LOCATED IN DIFFICULT

CONDITIONS.

Wärtsilä has been operating and maintaining a 102 MW power plant since January 2005 for PT Aneka Tambang Tbk in Indonesia. The plant is equipped with 6 units of Wärtsilä 18V46 engines.


preparations as well. This includes the recruitment and training of personnel, purchasing of safety stock and tools, establishment of operational infrastructure, maintenance routines and occupational health and safety systems.

In the middle of the ocean. O&M agreements are well known and established in land-based businesses, but the marine sector is just recently getting onboard. The lack of skilled resources and the challenges to keep them up to date with the latest technologies is a real challenge for operators. The key issue is to secure seafaring under all conditions, which means that the maintenance and monitoring of complex machine room and propulsion systems must be carried out by experienced professionals.

“The philosophy of an O&M agreement in the Ship Power business is different: ships are always moving and it makes planning and logistics more challenging. As engines and machineries are becoming increasingly sophisticated, crews are challenged to running them while keeping fi nancial and environmental performance optimized. Against this background, Wärtsilä offers its marine customers O&M personnel: ship engineers that travel around the globe and assist crews in proper maintenance and operation knowledge.”

Contracts made with marine customers are tailored and cover, for example, monthly engine check-ups by Wärtsilä experts, spare parts, essential software updates, as well as condition based maintenance, maintenance planning, logistic support and the training of ships’ personnel. This type of services can easily be extended to the whole crew and a fl eet of vessels within a contractual frame so called Global Customer Agreement, for a fi xed monthly fee. p

More than 1 900 professionals worldwide focus on performance, profi tability and maximizing equipment lifetime.

solution


Tacit knowledge as an extra bonus. “As our experts visit our customers regularly, they almost become part of the crew – they are there when needed. It’s a good and cost-effective way for our customers to get to know our people and way of working,” says Filancia.

In addition to operational reliability, one of the other advantages that customers can look forward to is 24/7 readiness on Wärtsilä’s part. “We are constantly updating and adding elements to our service categories. O&M is no exception, and thanks to our highly-functional CBM concepts we can offer a more comprehensive around-the-clock standby service. The key idea is to build on connectivity - not only between technical solutions but also between people,” says Filancia.

In terms of equipment and technologies, Wärtsilä is now upgrading its propulsion systems connectivity, among other things. As for the human touch, an important part of the service package deals with the generation of know-how. When engines and auxiliary systems are designed, installed, run and maintained by one and the same partner, the streamlined performance that results - and its parameters - are stored for future reference. The longer the partnership, the more fundamental the shared know-how that is gathered. Within Wärtsilä Operations & Management customers get the “whole nine yards”.

THE KEY IDEA IS TO BUILD ON

CONNECTIVITY - NOT ONLY BETWEEN

TECHNICAL SOLUTIONS BUT

ALSO BETWEEN PEOPLE.

Wärtsilä has O&M agreements with SEMCO to supply second engineers and electricians for seven salvage tugs.

Wärtsilä Stakeholder Magazine

CONTEN

TS


in detail Twentyfour7.

aadededdddi lilndetettteeeetataee aa lee aattttetetee aadddddd aaiaaiiaaee

56 INTELLIGENT ENERGY 58 GAS ENGINES FOR GAS STORAGE 61 ENERGY FROM LOW-VALUE BIOMASS 62 OILCUBES IN CENTRAL AMERICA 63 AUXILIARY POWER FROM METHANOL 65 SUBSEA PIPELAYING

67 RE-EXAMINING THE CONCEPT OF HOW SHIPS AND THEIR SYSTEMS FUNCTIONk

Bioenergyfrom spent grain s. 61

[ IN DETAIL ENERGY ] Twentyfour7.

[ D

IRT

Y T

HIR

TY

]


GREENER POWER

FOR EUROPE

THE WORLD WILDLIFE

FUND has identifi ed the problem: the worst polluting power stations in Europe. Wärtsilä has the solution: cleaner, more effi cient, local power plants.

Scientists, politicians and corporate executives are nowadays painfully aware of the threat posed by global warming. Hardly a day goes

by without the public being reminded by the media of the hazards caused by greenhouse gases. And the countries who signed up to the Kyoto Protocol are now being presented with further incentives to reduce their pollution - avoiding extra costs in emissions trading and being seen by the world as doing the right thing. One of the areas in which harmful emissions can be remedied is in power generation.

Th e major cause of climate change is generally considered to be the increased concentration of greenhouse gases (particularly CO₂) in the earth’s atmosphere. Power generation is the largest single source of greenhouse gas emissions, accounting for some 40% of the world total. To improve the current situation, electricity must be both produced and utilized more effi ciently, and renewable energy sources

T E X T: R U S S E L L S N Y D E R | P H OTO : W Ä R TS I L Ä

should be used whenever possible. Some researchers call this ‘intelligent energy’.

Identifying the pollutersThe problems in power generation were recently highlighted by a study commissioned by the World Wildlife Fund. Titled Dirty Thirty - Ranking of the most polluting power stations in Europe, it came as no surprise that the worst polluters turned out to be the biggest and oldest plants using either coal or lignite as fuel.

According to Jacob Klimstra, Senior Energy and Engine Expert, Wärtsilä Power Plants, hard coal emits an average of 900 gram of CO₂ per kilowatthour (kWh) of generated electricity while lignite emits 1.1 kg. Th e reason is that these fuels primarily consist of carbon. With lignite, the specifi c CO₂ emissions are higher than with coal because it contains a signifi cant amount of moisture.

“Processes used to produce electricity from both these fuels operate at very low levels of effi ciency. And in addition to the high levels of CO₂ produced during combustion, large quantities of dust particles, NOx and SO₂ are created, all of which have a negative eff ect on human health and the natural environment,” says Klimstra.

“On the other hand, using natural gas only result in the emission of some 450 g of CO₂ per kWh, and in cogeneration facilities, this fi gure is lowered to just 250. Cogeneration means producing electricity and heat at the same time, as is done in district heating systems. Placed close to where electricity is being consumed, Wärtsilä’s smaller, local plants also reduce both power transmission and system losses, making the effi ciency levels we off er even higher.”

Ineffi cient electricity generationFuel effi ciency in the power generation sector is surprisingly low, even in western industrialized countries. In Germany, for example, the net supply effi ciency is only 31%, a fi gure which includes 5% distribution and 9% system losses. In Poland, where some of the biggest problems are located, the net supply effi ciency is only 25%. “Low effi ciency in power stations means that our precious fossil fuels are being consumed too rapidly,” says Klimstra.

Next to cogeneration, a solution for the more eff ective use of energy sources is to employ diesel generators. On the other hand, diesel is in such demand as a road transportation fuel that it commands a premium price and things are likely to stay that way. Heavy fuel oil can however be a good and eff ective solution for generating power in remote areas.

Wärtsilä CHP & BioPower plant Lextorp in Trollhättan, Sweden

[ IN DETAIL ENERGY ]


The way to cleaner energy“Liquid biofuels are ideal for the purpose of achieving drastic reductions in greenhouse gas emissions,” says Asko Vuorinen, General Manager, Energy Engineering, Wärtsilä.

“Nonetheless, the present cost of using these fuels is still rather high in comparison to other fuels and they must be subsidized to be a viable source of energy. Th is is why many European countries are currently supporting the use of green electricity by feed in tariff s and green certifi cates.”

Bioenergy from waste wood is a promising source of fuel for low CO₂ solutions. Wärtsilä’s BioEnergy steam power plants use wood chips and sawdust as fuel. As these fuels are by-products of other processes, and would be converted to carbon dioxide anyway if just left to rot, they are considered CO₂ neutral. Waste wood is also a substantial resource in many parts of the world. Wärtsilä’s BioPower steam turbine (BST) plants typically produce 1-5 MW of electricity and a signifi cant amount of heat.

“Today we can off er liquid biofuel (LBF) diesel power plants using diesel engines. LBF diesel plants are excellent for peaking power applications, and steam turbines driven using energy derived from biomass are very good at supplying the base load. When combined, LBF and BST plants can produce 100% of the electricity needs of a small city or a factory without net CO₂ emissions.”

Future trendsVuorinen sees a place for fuel cells in future electricity and heat production. “Wärtsilä is developing solid-oxide fuel cells which produce

electricity via a chemical reaction. With no moving parts, the cells can generate both electricity and heat. With a typical size of one megawatt, such plants could power enterprises such as supermarkets or hotels. It will of course be some time before they are ready for use, between fi ve and ten years.”

Biogas produced from animal fats, sugar production, corn and other agricultural leftovers off ers another option for small-scale electricity production. It is especially attractive when these resources are locally available in large quantities. Together with fuel cells, signifi cant developments in generating electricity with such devices can be expected in the next ten years.

Both Vuorinen and Klimstra believe cogeneration gas plants are the best practical way of generating energy in a cleaner and more effi cient way.

“Natural gas commands a relatively high price because it is cleaner and easier to burn. But in the long run it’s much less expensive to use. Th e investment capital required for a modern coal-fi red plant is some EUR 1600 per kWe, whereas

01.2008.

“RENEWABLE ENERGY AND

BIOENERGY PLANTS WILL PLAY A MUCH

LARGER ROLE IN THE FUTURE.”

a power plant based on engines that use natural gas as fuel costs just EUR 800 per kWe,” says Klimstra.

Flexibility is necessary Coal-fi red electricity generating plants are a lot slower in responding to changes in demand than gas plants. They fi rst have to convert chemically stored energy into steam and then use that steam to produce electricity. As steam boilers are not good at tolerating rapid temperature changes, their output can only be changed at a rate of 3% of the nominal output per minute. Wärtsilä gas-fi red plants can ramp their output up or down at a rate of 20% per minute, providing the fl exibility required to meet large fl uctuations in consumer demand.

Th is fl exibility is even more important when renewable energy sources such as wind turbines, hydropower and solar power are components in a power grid. Electricity production based on the wind and solar radiation continually fl uctuates with changes in weather conditions and the time of day. Fast, reliable back-up can only be provided by engine-driven power plants.

Natural gas should be used responsiblyIn the future, Klimstra believes there will still be coal-fi red power plants as well as nuclear facilities. But these will only be for meeting base loads. Renewable energy and bioenergy plants will play a much larger role.

“Th e largest increase in electricity production will come in the form of power plants fuelled by natural gas. Th ere is a lot of natural gas in the world and it should be used responsibly. By that I mean cogeneration.”

Vuorinen sees four main steps as a solution to the “Dirty Th irty” problem: Th e fi rst is reducing the CO₂ emissions generated by large coal-fi red plants from the present 900-1100 g/kWh to 250 g/kWh using carbon capture and storage (CCS) systems via sequestration of the produced CO₂. Th e second is decentralized CHP generation using gas engines with maximum emissions of 200 g/kWh. Th ird, BST and LBT plants with zero CO₂ emissions and fourth, solid-oxide fuel cells with zero emissions (including no emissions of CO₂, NOx, SOx and dust particles). Additionally, we should install all kinds of CO₂-free generation technologies to reach EU 20% greenhouse gas reduction target by 2020.

Hopefully, the “Dirty Th irty” will be closed much sooner.

CO² emission by electricity production

specifi c CO² emissions (g/kWh)

electric= 48%

electric= 40%

electric= 55%

electric= 40% total= 85%

brown coal/steam

coal/steam

oil/diesel

gas/steam

gas/comb.cycle

gas engine/cogen

0 200 400 600 800 1000 1200 1400

electric= 30%

electric= 36%



[ G

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If there’s one thing that’s certain, it’s that the need for new energy sources is acute. Partly because of climate change, which is driving

development in the use of non-fossil fuels, and partly because demands for energy are not going to decline in the future. Quite the contrary - the International Energy Agency says the world will need almost 60% more energy in 2030 than was used in 2002, and fossil fuels will still be used to meet most of this need.

Natural gas is one of the winners in this game. “Th e use of natural gas is expected to increase by 50% by 2030,” says Harry Lindroos, Director, Oil and Gas Industry, Power Plants at Wärtsilä. “Natural gas is a clean fuel which makes it a viable alternative to many others.”

Transportation is essential“Since the early years of the current decade, the price of gas has doubled or almost tripled, and estimates indicate that there are ample gas reserves that will last at least a hundred years, even if consumption rises,” says Lindroos. “And as the major sources are in the Middle East, Russia, and central Asia, this gas will have to be transported to Europe and other global consumers in one way or another.”

While peak demand for natural gas is still probably a couple of decades in the future, companies that want to be well positioned at that time had better get to work today. Or, even better, yesterday, as Wärtsilä did.

“It takes a long time to build up the gas production facilities and pipelines and the overall infrastructure. Almost regardless of the type of investment, fi ve years is the minimum time for major projects to be completed in this industry,” says Lindroos.

“Gas companies have to employ a planning timespan of 10-15 years - as do the companies who are doing business with them. In this business, those three-month quarters are not so important - it’s more to do with quarters of a century,” he adds, laughing.

Storage space undergroundIn July 2007, Wärtsilä won a major contract from MOL Hungarian Oil & Gas plc to deliver gas-engine mechanical drives and auxiliaries for a compressor plant for underground gas storage at Szõreg, in the Csongrad region of southern Hungary. Scheduled for completion by the end of 2009, the plant will be equipped with fi ve Wärtsilä 9L34SG gas engines driving gas-reciprocal compressors supplied by US-based Cameron. The fi ve engine-drive compressors and two electric motor-driven compressors will compress natural gas into underground storage caverns.

Storing gas is intended to provide security for public gas consumption in Hungary - these strategic gas reserves will only be used if long-term problems with the gas supply occur.

Compression sets are also needed to provide pumping pressure for pipelines, or when gas is

IN GAS COMPRESSION, THE OUTLOOK FOR GAS ENGINES IS GOOD

GLOBAL DEMAND for natural gas is expected to increase by 50% by 2030. And with growing demand come business opportunities. For Wärtsilä, some of those opportunities lie in the use of gas-fuelled engines for gas compression.

T E X T: R I STO PA K A R I N E N | P H OTO S : W Ä R TS I L Ä

Gas is stored under high pressure in underground

former gas reservoirs or in salt dome caverns.



01.2008.

being liquifi ed (LNG) for marine transportation. Quite naturally, the compression set business grows at the same pace as markets in the gas industry, making it a lucrative option for companies such as Wärtsilä.

“When natural gas has to be transported, compressors are required, and those compressors need engines. Another area of development for us is LNG transportation by ship, and the gas-driven engines that are used for propulsion in these vessels,” says Lindroos.

New pipelines and new capacityThe storage facility at Szõreg is one of the fi rst projects for Wärtsilä’s new gas-engine technology. On completion, Szõreg will have fi ve gas-driven engines compressing gas.

Hungary is located right in the middle of the action, at the point where gas pipelines and transportation routes from Russia, central Asia and the Middle East to the European market intersect. Hungary also has old gas fi elds that have already been drained, but which can be used to store transported gas. MOL also has plans to build new pipelines, and new capacity totalling ten billion cubic metres in cooperation with Russia’s Gazprom.

Th e old Szõreg gas reservoir has safe capacity of 1.2 billion cubic metres, in addition to its commercial capacity of 0.7 billion cubic metres. Commercial operation is scheduled to begin early in 2010. By then, the Wärtsilä delivery will have been completed and everything will be ready.

A new generation of engines“The idea is to push gas down into the old gas reservoir at a pressure of 200-300 bar,” says Lindroos. “The two billion cubic metres that MOL expects to store in Szõreg is about half the annual consumption of gas in, for

example, Finland.”According to Lindroos,

supplying engines for gas compression is nothing new for Wärtsilä. “Earlier generation gas engines were manufactured in our diff erent factories during 1996-2001,” he says. “Th e ones we’re delivering to Hungary are of a new technology. Produced

in Vaasa, Finland, they are highly effi cient, a feature well suited to expensive gas markets and very competitive in comparison to normal industry solutions that utilize gas turbine technology.

Work on the Szöreg project has only just begun. “It’s a long-term commitment, and the fi rst step is to get the engines running,” says Lindroos. “Th at’s very important, because older industries tend to be quite conservative and new technologies aren’t always accepted right away.”

Reference installations are a foot in the door, even if all projects are put out to public tender, says Lindroos. “In a project like this, we have to consider what kinds of guarantee we give, so the risks can be high. On the other hand, getting this contract is a chance for us to show what we can do, and that we keep the promises we make,” he says.

High levels of effi ciencyEngine deliveries will begin in September 2008, so the

Underground gas storage facility in Germany. A Wärtsilä gas engine connected to a compressor injects gas into the storage facility.

STORING GAS IS INTENDED TO PROVIDE SECURITY FOR PUBLIC GAS CONSUMPTION IN

HUNGARY.

p



fi rst part of the year will be spent on planning and testing everything, and building the engines. At the same time, Wärtsilä will launch a marketing campaign aimed at the gas industry.

“Th is year will see the roll-out of our new gas-compression engines family,” says Lindroos. It’s their effi ciency compared to previous generations that makes these new engines special. Th ey have also a new control system, which provides a wide operational range.

“Th e improved effi ciency comes from lessons we’ve learned while running engines in power plants where lean burn techniques are used to cut emissions. Since it’s about ten years old, the technology is no longer so very special, but this will be the fi rst time we are applying it to new generation gas engines for compression.”

True and eff ective innovators have a chance to get ahead of the competition, or sometimes leapfrog from behind, leaving competitors in the dust. Although Lindroos is pleased with the new compression engine technology, he doesn’t expect Wärtsilä to take over the market completely.

“Th ere are very few things, if anything, that are

completely secret in this business,” he says. “However, it takes a long time to build and develop a

new engine. First you need a theoretical foundation, then prototypes, then pilot projects, then validating everything before it’s time for some live trials.”

Energy security is the driving forceThat head start is worth a lot in fi nancial terms. According to Lindroos, annual business for Wärtsilä in the new gas-compression sector could total as much as EUR 200 million, with the main markets being Europe, Russia, Asia, South America, and the Middle East.

“Th ere are also opportunities in North America, but they are more in the short term,” he says. As in Hungary, where MOL is building its huge storage facility, energy security is the main driver behind gas compression, especially in Europe and North America.

“Everybody wants to make sure they can obtain natural gas from diff erent sources, reducing their dependence on one supplier or one country for natural gas supplies. Th at’s the main driver, in addition to the environmental imperative,” says Lindroos.

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Easington

Glenmavis

St.Fergus

Teeside

Barrow

Point of Ayr

Milford Haven

Wytch Farm

Balgzand

Bacton

Theddlethorpe

Derry

Coolkeeragh

PINS

Edinburgh

WGT

CATS

LONDON

DUBLIN

BELFAST

Galway

Cork

Dundalk

Carrickfergus

Gormanstown

Drogheda

Ballylumford

Inch

KINSALE

Limerick

ASG

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TRANSPORT

FLAGS NLGP

FUKA

VESTERLED

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INTERCONNECTOR 1

N o r t h

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I R E L A N D

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U N I T E DK I N G D O M

INTERCO

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Bygnes

Trondheim

Nybro

NGT

T H E N E T H E R L A N D S

Daryevka

Aleksandrov Gay

Petrovsk

Smolensk

Torzhok

St.Petersburg

Gryazovets

Kazan

Yelets

MOSCOW

R U S S I A

Dzhubga

G E O R G I A

STREIKOV

Sumy

Pogar

Khariv Kupyansk

Orsha

Petrozavodsk

Medvezhyegorsk

Belomorsk

Teriberka

DARFEELTINAH

MURDOCH

MARKHAM

HEWEIT

Rogatec

Toledo

Cordoba

STATPIPE

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M O R O C C O

S L O V A K I A

S P A I N

Hilvarenbeek

REYKJAVIK

I C E L A N D

Imatra

Nis

Loznica

Zvornik

BELGRADE

ROME

Szeged

Sombor

Leskovac

Zajecar

M O N T E N E G R O

U N M IK O S O V O

S E R B I A

PRISTINAPODGORICA

Niksic Kosovska Mitrovica

TIRANA

ElbasanFier

SKOPJETetovo

SARAJEVO

Banja Luka

Split

Mostar

Vidin

Bansko

Silistra

HorezuMehedinti

Tulcea

Karlovac

Pula

Trieste

Malkoclar

NegruVoda

Isaccea

Ukhta

Deutsch Neudorf

G E R M A N Y

Nürnberg

Waidhaus

BurghausenÜberackern

C Z E C H R E P.

L I T H U A N I A

A t l a n t i c O c e a n

Innsbrück

Kiefersfelden

Oberkappel

PRAGUE

Zürich

Wallbach

A U S T R I ALIECHT.

München

Stuttgart

S W I T Z E R L A N D

NORT

HERN

LIGHTS

YAMAL

BROTHERHOOD

JAGAL

JAGAL

STEGAL

TAG

WAG

TRANSGAS

NETRA

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MID

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WEDAL

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MAGREB-EUROPE GAS (MEG)

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Natural gas is supplied to Europe from Africa, Russia

and the Middle East through an extensive network of pipelines.

Gas safety storage facilities are located

at critical supply points.


Scottish and Newcastle (S&N) is one of the world’s leading beer-led beverage companies, offering top beer brands

such as Baltika, Foster’s and Kronenbourg 1664 - known all over Europe - and national brands such as John Smith’s and Strongbow in the UK, Kronenbourg Red White in France, Sagres in Portugal, Lapin Kulta and Karjala in Finland and Kingfi sher in India.

Th e new BioPower plant will be located on S&N’s brewery premises in Manchester in the UK. It will have a thermal output of 7.4 MWth and an electrical output of 3.1 MWe. Scheduled to come on stream in the fi rst quarter of 2009, it will produce steam and electricity for the

brewery manufacturing processes with any excess electricity exported to the UK national grid.

A by-product becomes fuel for a power plantFuel for the BioPower plant will consist of a mixture of wood chips and spent grain. The wood chips will come from local sources and the spent grain will be delivered by S&N’s own breweries. Spent grain, which is primarily cellulose and includes other residual compounds not converted to fermentable sugars by the mashing process, is a by-product of the brewing process. When delivered from the brew house, the moisture content of spent grain is approximately 80%. This level is subsequently reduced to 58-60% in a belt press and then the spent grain is suitable for use in Wärtsilä’s BioGrate technology without

any additional drying being required. “For a long time, Wärtsilä has been creating

environmentally sound technologies and gaining experience in applications involving alternative fuels. After running a large number of grate fi ring tests and analysing the chemical properties of spent grain, we convinced this customer that our combustion technology is well suited to burning this material. Th e decision to purchase was also supported by the fact that Wärtsilä is one of the few suppliers that can deliver entire power plant systems,” says Tauno Kuitunen, Regional Director, Biopower Sales, Wärtsilä.

“For S&N, burning spent grain as a fuel for energy production allows this by-product to be used in alternative way – as a source of renewable energy. Th is also complies with national demands for the use of renewable energy sources in the UK. Currently the spent grain is sold for animal feed,” says Kuitunen.

Clean and effi cient energy productionWärtsilä’s biomass-fuelled plants are effi cient and have minimal environmental impact. Based on patented Wärtsilä BioGrate combustion technology, they burn fuels at high levels of combustion effi ciency with low NOx and CO₂.

BioPower plants employ a steam-feed water cycle. Steam is generated in an effi cient water-tube boiler and passed to a condensing extraction steam turbine that drives an alternator. Steam extracted from the turbine at a pressure of 10 bars is used in brewery processes.

Wärtsilä’s BioPower plants are modular and based on well-proven standardized components. Delivery and installation times are short and high levels of automation allow unmanned operation.

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01.2008.

CLEAN ENERGY USING RENEWABLE FUEL

T E X T: M A R J AT TA P I E T I L Ä

WÄRTSILÄ HAS SIGNED a contract with Scottish and Newcastle, a major international brewing company, to supply and install a biomass-fuelled combined heat and power (CHP) plant. The BioPower plant will burn a mixture of wood chips and spent grain. This is the fi rst time that spent grain is to be used in energy production.

WÄRTSILÄ TECHNOLOGY IS

WELL SUITED FOR BURNING WOOD CHIPS

AND SPENT GRAIN.



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POWER CUBES FOR CENTRAL AMERICA

T E X T: M A R J AT TA P I E T I L Ä | P H OTO : W Ä R TS I L Ä

SOCIEDAD ELECTRICA DE

CEREN, a Salvadorian electricity development group, has ordered a 17.5 MWe turnkey diesel power plant from Wärtsilä for installation at Hacienda de San Andrés in San Juan Opico in El Salvador’s Departamento Libertad.

The principal owners of the newly-created Sociedad Electrica de CEREN (SEC) are involved in electricity distribution in El

Salvador,” says José Aparicio, General Manager & Sales Development, Central America. “This new SEC plant will deliver electricity to the Salvadorian national grid through Unidad de Transacciones S.A. de C.V., the national organi-zation that manages El Salvador’s wholesale ener-gy market. Part of the electricity production will also be sold directly to private industrial custom-ers and steam will be delivered to a local indus-trial park for use in industrial processes.”

“The plant has important regional signifi cance. As well as improving both the quantity and reliability of electricity services in San Juan Opico and the surrounding regions, it is also expected to create new expertise in the area and encourage the establishment of new industries,” says Aparicio.

“New jobs and an improved employment situation will enable the whole area to develop.”

First OilCubes for Central AmericaThe new power plant for SEC is the fi rst Wärtsilä OilCube power plant order from Central America. Scheduled to be handed over in the third quarter of 2009, it includes two OilCubes, each with a 20-cylinder Wärtsilä 32 diesel engine burning heavy fuel oil (HFO).

Output of the plant will be 17.5 MWe at 13.8 kV and 60 Hz.

Wärtsilä OilCubes are small diesel power plants with outputs ranging from 5-25 MW suitable for industry, utilities and independent power producers. The standardized OilCubes are modular, pre-engineered single-engine power plants that can be installed quickly and are economical and reliable in use.

“As the SEC plant is a combined heat and power (CHP) unit, the two exhaust gas boilers in the waste-heat recovery system will also produce up to 6056 kg/h of saturated steam at a working pressure of 11.8 bar,” says Aparicio.

Remote monitoring and operationWärtsilä PowerCubes are delivered on a turnkey basis with all the components and structure located above ground. Radiators are installed on the roof of the cubical construction and the exhaust gas stack is positioned either close to the PowerCube or integrated into it. The fuel used can be either oil or gas. Wärtsilä OilCubes are equipped with a Wärtsilä 20V32 engine and GasCubes have a Wärtsilä 20V34SG engine. Both confi gurations provide outputs of up to 9MWe. The internal electrical system is low voltage and plant automation and monitoring includes programmable logic control (PLC) is employed.

“Wärtsilä PowerCubes can be monitored and operated either remotely or at a freely-placed working station. Electrical distribution systems and monitoring units can be installed in the customer’s existing facilities or supplied as a separate building,” says Aparicio.

“Standardization also facilitates fast start-up with reliable software and interface solutions. If the demand for power grows, new PowerCubes can be added – interconnecting them is easy. Because their interaction with the surrounding environment is minimized, locations for the PowerCubes can also be chosen freely. As closed-circuit cooling systems reduce water consumption to a minimum, they are easy to locate in places where water is scarce.”

[ IN DETAIL MARINE ]


01.2008.

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In addition to Wärtsilä, who is acting as project coordinator, the METHAPU (The full name of the project: Validation of Renewable Methanol

Based Auxiliary Power System for Commercial Vessels) consortium includes Det Norske Veritas, Lloyd’s Register, the University of Genoa and Wallenius Marine. Although each partner has spe-cifi c areas of responsibility, the project’s nature and scope means they work in close cooperation.

The METHAPU project has a number of strategic objectives: assessing the maturity of methanol using technology installed on a commercial vessel; validating marine-compatible methanol running SOFC technology; assessing both the short-term and long-term environmental impacts of the application; and enabling future research activities on larger marine-compatible SOFC units and a methanol-based economy.

A fi fth strategic objective is innovation to develop the necessary technical justifi cations for the use of methanol onboard cargo vessels involved in international trade. This is necessary to support the introduction of essential regulations allowing the use of methanol as a marine fuel.

Attractive environmental performanceThe components producing the electrical power in an SOFC unit - the fuel cells - consist of an anode, a cathode and a non-metallic electrolyte.

As Carl-Erik Sandström, Wärtsilä’s Application Engineer (Fuel Cells) explains “The fuel cells used in Wärtsilä applications are planar and assembled in stacks, each of which produces an output of about 1kW.”

“To achieve an electrical output of some 20kW at a high enough voltage, the stacks are connected in series,” says Sandström. “In addition to the fuel cells, items of equipment included in the total SOFC power unit, known as the ‘balance of plant’, include control and automation systems, a fuel system and processing, air and exhaust systems and power conversion.”

SOFCs offer high levels of performance: electrical effi ciency of more than 40% and an overall effi ciency of 80% combined with very low emissions, just water vapour and CO₂ plus minute quantities of CO and NOx. This is what attracts both the power and marine industries - and the EU - not least because restrictions relating to emissions in harbour and in coastal waters will be tighter in the future.

To obtain optimal performance from the electrolyte, high operational temperatures of some 700ºC are required. These very high temperatures mean that materials requirements for components in the balance of plant are more demanding in a SOFC unit than they are for fuel cells running at lower temperatures.

FUEL CELLS - GREEN POWER FOR THE FUTURE

WÄRTSILÄ IS PARTICIPATING in METHAPU - a project supported by the European Commission which is examining marine applications for solid oxide fuel cells (SOFC) that run on methanol. Although in its infancy, the potential for fuel cell power generation has many attractions.

T E X T: J O H N PAG N I | P H OTO : W Ä R TS I L Ä

The Wärtsilä 20 kW SOFC fuel unit.

[ IN DETAIL MARINE ] Twentyfour7.


Excess heat also usedFuel fed into an SOFC unit is reformed into lighter hydrocarbons. The methanol is separated into hydrogen and methane by a ‘methanator’ before being passed to the fuel cell stacks. The electrical output is delivered to the ship’s main switchboard, while the heat that results from the chemical process is extracted and employed in other processes.

Excess fuel is burned off to ensure minimal exhaust emissions and the resulting heat is recycled to the SOFC unit to maintain its high operating temperature as well as being utilized in onboard heating systems, producing fresh water and electricity and in running air conditioning systems. “One objective in METHAPU is to examine onboard heat-recovery alternatives at both the theoretical and feasibility levels, but this work has not yet begun,” says Sandström.

“The high levels of effi ciency and relatively-clean exhaust are major benefi ts of fuel cell technology. With these units, special external equipment to handle and treat exhaust gases is unnecessary.“

No vibration and low noiseMethanol was chosen as a fuel because it offers many positive characteristics: it is widely

available, it is a liquid, and it is easy to handle despite being toxic. It can also be produced from renewable sources.

One outstanding advantage of fuel cell power units is that they are virtually silent in operation, with no vibration or noise. “Apart from the pumps and blowers, there’s no noise,” says Sandström. “Normal procedure nowadays is to try and prevent the engine affecting conditions on the ship – with this technology it’s the other way round!”

After all the planning, the real thingThe METHAPU project is currently in the fi nal planning and preparatory stages before construction of a power unit and its installation on a ship. The acid test – installation on a working vessel – will make demands on all the consortium partners.

Modifi cation work on the ship will be carried out prior to the SOFC unit being connected to the vessel’s power network. Together with all its auxiliary systems, the unit will be housed in its own container and fully tested before being put onboard. Installation will take place during a scheduled call to minimize any disruption to the vessel’s schedule.

As well as the Wärtsilä SOFC 20 kW unit, some 4.5 m long by 1.2 m wide and 1.7 m

high, space has to be found for the fuel tank and the fuel bunkering system. Not big by engine installation standards, but still big enough to necessitate modifi cations to the ship’s structure. Lloyd’s Register will specify the technical requirements concerning safe and secure installation and location on the vessel.

A full year at sea to gain experienceWallenius Marine will provide MV Undine, a Pure Car Truck Carrier (PCTC), which trades between Asia, Europe and the USA. Scheduled to start in the summer of 2008, the trials will last for 12 months as the Undine plies her regular routes, supplying valuable feedback on the performance of the Wärtsilä SOFC unit.

According to Sandström, information of several types will be produced, including reports on equipment performance, personnel reactions and experience, and how the relevant regulations work out in practice.

Publicity will be aimed at generating public support for future SOFC projects with the ultimate aim of develop large-scale units. “Interest among our potential customers is high as the green technology factor is an important feature in terms of both marketing and status,” says Sandström.

Roles played by other partners in METHAPULloyd’s Register is working on the regulations for methanol fuelled fuel cells in marine conditions. Specifi c items for consideration include the design, construction and installation of the SOFC unit, the on-board bunkering system and modifi cation work on the vessel to allow the unit to be installed.

Det Norske Veritas is developing operational safety criteria and contributing to fi eld test measurements and emissions validation.

Lifecycle analysis in METHAPU is being handled by the Thermochemical Power Group which consists of two departments at the University of Genoa.

Wallenius Marine is providing the test vessel and the modifi cations required to install the SOFC unit and a methanol bunkering system. Wallenius Marine will also be working with the Swedish Maritime Authority to ensure that all applicable regulations are complied with.

Flow diagram for SOFC running on methanol.

HEAT RECOVERY

FLUE GAS

METHANOL

HEAT RECOVERY

METHANATOR

ANODE RECYCLE

CATALYTIC BURNER

SOFC

ANO

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AIR



01.2008.

ENVIRONMENTALLY SAFE SUBSEA PIPELAYING

WÄRTSILÄ IS to deliver a power plant and thrusters for the largest pipelaying and crane vessel ever built in China. In addition to the pipelaying vessel, equipment for use in the extensive Deepwater Project includes a semi-submersible drilling rig, two anchor handling tug supply vessels and seismic and research ships. For Wärtsilä, the contract will be an excellent reference with high public relations value.

The contract between Wärtsilä and CNOOC Engineering Ltd, a subsidiary of the China National Offshore Oil

Corporation (CNOOC), was signed in March 2007. Founded in 1982, CNOOC is a state-owned industrial giant which explores for oil and gas and produces petrochemical products and fertilizers. In 2006, sales by CNOOC totalled RMB 132.4 billion with a net profi t of RMB 49 billion. From its base in China, CNOOC has now expanded its operations into more than ten countries.

Innovative and effi cient, CNOOC has been selected by Standard and Poor’s as a “Global Challenger” in three successive years. “CNOOC has made notable progress in deepwater exploration and believes that activity in deepwater areas will expand the company’s

future growth opportunities. The Deepwater Project is a part of that growth scheme,” says Li Xiao-Liang, Sales Manager from Wärtsilä in Shanghai.

A pioneer in ChinaThe double-deck pipelaying and crane vessel DPV7500 will be built in China by Rong Sheng Heavy Industries Co., Ltd. The vessel has an overall length of 204.65 metres, a beam of 39.2 metres and a depth of 14 metres, and has a transit draught of seven metres. The largest pipelaying vessel ever to be built in China, it will lay subsea pipelines in water up to 2000 metres deep at a speed of fi ve kilometres a day using a central fi ring line and a fi xed stinger.

The fi ring line will be located on the main deck and covered by a top deck on which pipes


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The new CNOOC deepwater pipelaying and crane vessel loading pipes from a barge.



are stored. Adjacent to the fi ring line are two double joint-preparation lines. The storage facilities can accommodate up to 9000 tons of pipe. Two travelling gantry deck cranes, rollers and conveyors will be used in pipe handling and transfer.

“At the stern, the vessel will be equipped with a revolving crane able to lift 4000 tons when fi xed and 3500 tons when revolving,” says Göran Österdahl, Sales Director, Merchant, Wärtsilä Ship Power in Shanghai.

The vessel will be equipped with dynamic positioning technology. In practical terms, this means that satellite signals and steerable and retractable thrusters will be utilized to maintain the vessel’s position under all conditions.

The ship will have accommodation for 380 people. After its launch in late 2009 or early 2010, although its main area of operation will be the East China Sea, South China Sea and South-East Asian waters, it will be able to offer its services world-wide.

The Wärtsilä contributionWärtsilä will be supplying six 12-cylinder Wärtsilä 32 diesel generating sets with a combined power output of 34.6 MW, two 4500 kW steerable thrusters and fi ve 3200 kW retractable thrusters. The generating sets are well suited to the varying power demands of the electrically-driven dynamic-positioning thrusters. They comprise an entire onboard

power plant. Wärtsilä’s deliveries will take place in mid 2009.

“The demand for redundancy in this kind of installation is high, because the vessel must be able to maintain its position in extreme conditions even if one of its thrusters or engines breaks down. Environmental regulations in the oil industry are strict. No oil leaks are allowed. It would be bad PR for a large oil company,” says Österdahl.

As a major supplier to the oil industry, Wärtsilä has long experience in well-proven and environmentally sound technologies for the marine and offshore markets. Similar solutions to those employed in the new pipelaying and crane vessel have been delivered and successfully used on a large number of drill rigs.

Business with a reliable supplierCNOOC and Wärtsilä had an established business relationship before negotiations concerning power plant for the pipelaying and crane vessel began. Earlier Wärtsilä projects with CNOOC included delivery of three 16-cylinder Wärtsilä 32 generating sets in V-confi guration with power management and fuel oil treatment for the NB35-2 crude oils platform and three 16-cylinder Wärtsilä 32

generating sets in V-confi guration with fuel oil treatment for the Nanhai FPSO (Xijiang 23) project.

For the pipelaying and crane vessel project, CNOOC was looking for a reliable supplier

who could provide a complete power and thruster solution. “It was in the customer’s interest to simplify their project management by avoiding the need to interface with a large number of suppliers,” says Österdahl. “We were pleased to offer CNOOC

a total solution as well as low rates of fuel consumption and other technical benefi ts - and we won the contract.”

In addition to equipment for the pipelaying and crane vessel Wärtsilä will be supplying the Deepwater Project with eight 12-cylinder Wärtsilä 32 generating sets in V-confi guration with all auxiliaries, and eight 4600 kW underwater-mounting type thrusters for a semi-submersible drilling rig. “We are proud that China’s biggest offshore operator has chosen us as their partner. As a global player this is a very valuable reference for us. We’re convinced it will further strengthen our position as a supplier to the marine and offshore industries in both Asia and other parts of the world,” says Österdahl.

Specifi cation of CNOOC’s new Subsea Pipelaying and Crane Vessel:Design by Gusto (Holland) DPV 7500Built by: Rong Sheng Heavy Industries Co., Ltd.Length (O.A): 204.65 mLength between P.P: 185.00 m (at transit draught)Breadth (MLD): 39.20 mDepth (MLD): 14.00 mDraught (transit): 7.00 m6 x Wärtsilä 12V32 main power generating sets2 x 4500 kW Wärtsilä Steerable Thrusters type LIPS FS3500/MN5 x 3200 kW Wärtsilä Retractable Thrusters type LIPS FS2510/2500MNRThe vessel is double classed, ABS and CCS with a Class III dynamic positioning system (DP3) Subsea pipelines in water of depth up to 2000 mPipelaying speed 5 km/day Pipe storage up to 9000 tonnes

THE VESSEL WILL BE EQUIPPED

WITH DYNAMIC POSITIONING TECHNOLOGY.



01.2008.

The key drivers in ferry design are effi ciency improvement, emissions reduction and compliance with future regulations. New

regulations set by the International Maritime Organisation (IMO) concern passenger ships constructed on or after 1 July 2010 and must be taken into consideration in the design of ferries that are now on the drafting table. Such regulations are for example the new Safe Return to Port regulations and the Probabilistic Damage Stability regulations.

“New regulations encourage innovative solutions and the building of better ships,” says Oskar Levander, Director R&D, Operational Performance Program within Ship Power Technology.

Improving the overall effi ciency of a ferry is no simple task. A very signifi cant proportion of the energy contained in the fuel is either lost or unused because of heat losses, exhaust losses, and transmission, propulsion and other ineffi ciencies. The overall effi ciency of ferries should be improved and the demand for power reduced.

Longer ships, lower resistance“This can be done by utilizing effi ciencies of scale,

lengthening the waterline, taking advantage of new propulsion concepts, improving methods of heat recovery and taking alternative fuels into use. While similar traditional ferries are usually about 180-210 m long, the Ferry of the Future is designed to have a length of 225 m. The longer the ship, the smaller the resistance. This is because of the low speed/length ratio,” explains Levander.

“Size really does matter. As an example, let’s compare two ferries cruising at a speed of 25 knots. The smaller ferry has a length of 185 m and a breadth of 28 m. The larger one is 225 m long and has a breadth of 31 m. The carrying capacity of the smaller ferry is 2000 lane metres, while the larger offers 2900 lane metres, 45% more than its smaller sister,” Levander says.

“At the same time, the power requirement of the smaller ferry is 31,700 kW while the larger one demands only 30,200 kW, some 5% less. If the demand for power is calculated per lane metre, the difference is even more remarkable: 35% less in the larger ferry. On the basis of this type of investigations we believe that one of the future trends will be a continuing increase in ferry size.”

FERRY OF THE FUTURE – FINER IN EVERY RESPECT!

CHALLENGES FOR the marine industry lie in reducing environmental impacts and improving the overall effi ciency and reliability of ships. These demands cannot be met simply by developing better engines and propellers, the whole concept of how a ship and its systems function has to be re-examined. One such concept is Wärtsilä’s Ferry of the Future.


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Artist’s impression of a next-generation ferry.



Conventional shaft lines to historyIn the Ferry of the Future, Levander is ready to abandon the conventional double-shaft-line solution and replace it with new propulsion concepts. These include a solution with counter rotating propellers (CRP) or a Wing Thruster which has a shaft line in the middle and two thrusters pulling at the sides. In CRP, the aft propeller recovers some of the rotational energy in the

slipstream from the forward propeller. The advantage of Wing Thruster propulsion is that individual propeller loadings are reduced by using three propellers, which improves operating effi ciency. Having twin steerable thrusters also increases the ferry’s manoeuvrability at slow speeds.

“These new propulsion concepts reduce resistance and result in lower power demands. This leads to lower fuel consumption and reduced emissions, “ says Levander.

LNG superior to other fuelsNatural gas has many benefi ts. It is mainly methane, which contains the highest amount of energy per amount of carbon compared to any other fossil fuel. Its carbon to hydrogen ratio is 1 to 4 and CO₂ emissions are 25% lower than with conventional fuels. Because of the lean

burn concept employed in gas engines, NOx emissions are reduced by 85%. Sulphur is removed from the fuel when it is liquefi ed, and particulate emissions resulting from the combustion of natural gas are very low.

“There is no visible smoke and no sludge deposits are formed. Furthermore, liquid natural gas (LNG) is extremely cold, and its low temperature can be utilized for cooling in the ferry’s air-conditioning system,” says Levander.

LNG is already a cost-effective fuel alternative. Even though natural gas is only available in some European ports, the fact that ferries usually operate on regular routes means fuel supplies are easy to organise for many itineraries. As Levander points out, “The LNG supply infrastructure can be built faster than the ferries themselves.”

Ferry of the Future concepts Wärtsilä’s Ferry of the Future is available now. The technology and components already exist, the concept simply applies them in a new and innovative way.

All the ‘delicacies’ in the concept are included in the same package. The ferry is powered by combined dual-fuel electric and mechanical machinery using LNG as the primary fuel and marine diesel oil (MDO)

as back-up. “Combining two propulsion concepts – a centre

shaft line fi tted with a CRP plus two Wing Thrusters at the sides – offers clear power savings. A diesel-electric power plant provides optimum effi ciency at low speeds. In addition to propulsion, this power plant handles the electricity demands of the hotel section,“ says Levander.

The Ferry of the Future is large and benefi ts from the resulting economies of scale. It has a large cargo capacity with two extra-wide ten-lane car decks but no lower cargo hold. Loading and unloading is quick because of the new bow-door arrangement and drive-through twin-level link spans.

“Easy manoeuvrability and fast turnaround in port means reduced speeds at sea, which result in lower fuel consumption. The ferry’s overall effi ciency is high and emission rates are low,” says Levander.

Passenger comfort is also high on the agenda. Tax-free shops have disappeared. Reasonably-priced outlets for design products are located on both sides of twin-level indoor shopping streets. News and Internet cafés, ice-cream stands and coffee shops offer refreshments, while small restaurants with an intimate atmosphere serve exotic cuisines. This ferry offers its passengers truly memorable experiences.

“Designing ferry interiors isn’t exactly our fi eld, but to develop our own products and technology we sometimes have to step outside our own segment and visualize the needs of our customers’ customers. Viewing the ship as an operational environment helps us take better account of end-user needs,” says Levander.

“WE BELIEVE THAT ONE OF THE FUTURE TRENDS WILL

BE A CONTINUING INCREASE IN FERRY SIZE.”

New bow ramp arrangements could

speed up RoRo cargo

handling. [Above]

Combined CRP and Wing Thruster

propulsion with three pulling thrusters and

one shaft line. [Below]

*Sign off

Wärtsilä Stakeholder Magazine*

AT YOUR SERVICE | TRAVELLERS’ GEAR | HISTORY CORNER | LITTLE ENGINEER | EVENTS

New facilities for growing

businessmore on page 75

In the turbulence of daily life, you value the things that fl oat smoothly - even at a distance. Regardless of your location, the optimized availability of services is what counts. It feels good when your needs - whenever they arise - are taken care of.

Lifelong care

[ SIG

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sign off [ AT YOUR SERVICE ]


“We have interesting

campaigns and activities

in the pipeline at all times.”

When you are responsible for the enormous task of marketing Wärtsilä’s power plants on a global scale, you have to be an outstanding communicator, a good decision maker and an expert in every kind of media. Carl-Gustav Storgård is just the right person for the job of General Manager, Marketing Communication. In fact, he’s been the right person for a variety of positions in Wärtsilä for the past 27 years.

1. WHERE DO YOU FIND ALL YOUR ENERGY? “Finding energy is no problem. The challenge is managing it! I get inspired easily and when I’m

at the right level everything seems possible. Our motto is, “We do the impossible immediately, miracles can take fi ve minutes.”

“I exercise regularly to keep fi t. Sometimes I do long-distance cross-country skiing or run a marathon. My principle is to live a healthy life and also maintain the correct balance between work and leisure time - and sometimes I even succeed.”

2. HOW ABOUT HIGHLIGHTS IN YOUR CAREER?“I started working at a small engine

manufacturer in 1981, and over these years it has developed and grown into a world giant. That’s all you can ask for in a professional career!”

“There have been many highlights. In the 1980s we had to put together a colour brochure in just one night and we had it ready by 6 am. Or the time when I ran a marathon and arrived to fi nish our exhibition, and realised the thoughtful builders had arranged a wheelchair and bed for me to rest on. Or an exhibition in India where everything possible went wrong but we still won a trophy for the best stand.”

3. HOW DO YOU MOTIVATE YOUR TEAM TO DO THEIR BEST?“You’ll have to ask them! Basically, I’m a real

optimist and I hope this rubs off on my colleagues and inspires them. Even though a large organization like ours needs to engage in extensive analytical exercises, I believe more in just getting things done. Everybody knows my strong point is being a man of action.”

Energy action

Global marketing takes both

T E X T: R U S S E L L S N Y D E R P H OTO : K R I ST E R L Ö F R OT H

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JAC ZAGOORY SCROLL PENAn ingenious ballpoint pen with a built-in, replaceable paper cartridge tucked into the top part of the barrel. While the 5 cm mini-reams don’t last forever, cartridge changes are easy and the paper sports cool centimetre and inch markings. A perfect tool for the note-jotting business traveller on the go.

BLUETOOTH VIBRATING BRACELET

The LM Technologies LM959 Bluetooth vibrating bracelet gives users discreet notifi cation of an incoming mobile phone call

by vibrating. A sporty design with a user-friendly interface, it also

features a proximity vibrating alert activated when the phone strays

more than 5 metres from its user.

DIGITAL AUDIO RECORDERSDigital audio recorders can cram

up to 136 hours of sound into tiny enclosures, in formats that can be edited easily on any computer. Essential for important presentations and business meetings.

The Philips Digital Pocket Memo 9600 features crisp audio and a micro-editing feature that allows you to go through a recording and add your own voice notes. A better intro for your presentation? Just fast-rewind and insert audio without affecting the rest of the fi le.

MOBILE PROFESSIONALS who travel frequently know the importance of packing light and taking only what they need on business trips. 2008 could be the year when ultra-mobile PCs fi nally go mass market.

The popular Asus Eee (1) low-cost laptop is the size of a hardback book. It runs open-source Linux software and weighs less than a kilogram. To cut down on weight, it does away with a hard drive in favour of just 4 GB of fl ash memory. Comes with built-in Wi-Fi and a power-effi cient design.

The Nokia N810 Internet Tablet (2) can connect to the nearest Wi-Fi hotspot or operate through your Bluetooth mobile phone. This

pocket-sized device allows you to make internet calls or check e-mail using its slide-out keyboard and touch screen. Built-in maps and integrated GPS satellite navigation help you fi nd your way. With an optional 10 GB memory card, it has a 4.13”-wide screen and is powered by the Linux-based OS2008.

With its powerful processor, bright display, easy input options and support for the latest connectivity standards, the UBiQUiO model 702 Ultra-Mobile PC (3) features an 7” wide-angle LCD display, Wi-Fi and Bluetooth connectivity. Add e-mail, instant messages and web access and you have a quality multimedia tool at your disposal.

ULTRA-MOBILE LAPTOPSlighten your load


T E X T: DA N R I D E R

sign off [ HISTORY CORNER | LITTLE ENGINEER’S PAGE ]

WATER. H2O. Hydrogen hydroxide. Nature’s essential life-giving element. It covers 71% of the earth’s surface and can constitute 78% of the human body.

Making science fun again, the Hydrodynamic Building Set is a unique construction toy that allows you (and of course your children) to learn the basic principles of fl uid dynamics.

Would you like to build models of a water-treatment plant, a distillation plant, a manufacturing plant and many other industrial structures? To discover how a siphon works? Learn to balance fl ow through your plant by adjusting the valves? Together with working tanks, pipes, valves and a pump, the manual provides both building instructions and examples of the different structures you can build with this set.

Your models are built up from the bottom side of the carrying case, which acts as a water reservoir and has a special grid of holes to provide a foundation for each structure. Level by level, you build up your supporting frame and add the tanks. Connect

all the tubes, add the valves and turn on the electric pump. If you’ve done it right, you’ll have an impressive construction to impress your friends (adding a little food colouring will improve the overall effect).

The tray measures approximately 25 cm by 40 cm and is 7.5 cm deep. The footing has a grid of 12 holes for the support columns in a 4 x 3 confi guration. Build up the structure, place the submersible pump in the tray, add water until the inlet on the pump is completely covered, and then enjoy reconfi guring the pipes, opening and closing valves and watching liquid in action. When you take the set down, all the parts pack into the tray and can be safely stored away for future use.

This set features 300 pieces including an electric pump, siphon tank, large square tank, small and large round and cone bottom tanks, fl oat valve, tilt scale, ball fl ow meter, water wheel, spray head, and assorted valves, pipe holders and pipes. Buy additional kits to make even bigger structures. Just keep that towel handy!


HYDRODYNAMIC BUILDING SET

HERITAGE ATHEADQUARTERS

Wärtsilä’s head offi ce has been located at John Stenbergin ranta 2 since

1975, when the John Stenberg engineering workshop was

acquired.

The building, just a short walk from the city centre,

was originally designed as an industrial facility in 1938.

“Valves and pressure gauges were being manufactured

here at that time,” says Building Manager Osmo

Huttunen, who has worked there since 1978.

Before Wärtsilä, the building was home to a printing house and a game and

fi sheries research institute, amongst others. As it

features on the heritage list maintained by the National

Board of Antiquities, the external facades have

remained untouched during renovations. The latest one - in 2005 - introduced airy

open space offi ces.

“During our decades here we have gone international,”

says Huttunen. Historical headquarters by the sea are a fi tting location for a company that operates in 70 countries.

T E X T: DA N R I D E R putting water to work

Photoquiz answer

Panama City, where high-rise

condos are shooting up as the

city becomes a favourite with

expatriate retirees and visitors.

Meanwhile, the charming Casco

Viejo (Old Quarter) quietly

awaits a facelift.

T E X T: M I N N A TA K K U N E NP H OTO S : W Ä R TS I L Ä

[ ONCE UPON A TIME ]


pioneer ing, technolog y- dr iven f i lm director

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Considered one of the greatest and

most technologically-inno-vative fi lm directors of the 20th

century, Stanley Kubrick was born on 26 July 1928 in Manhattan. At 13,

his father Jacques bought him a Grafl ex camera, which triggered his obsession with still

photography. In the late 1940s, Kubrick began visiting cinemas and gained inspiration from the

complex, fl uid camera movement of Max Ophuls, whose fi lms would later heavily infl uence Kubrick’s

own cinematic visual style.In 1951, Kubrick began making documentaries. His

fi rst feature fi lms were Fear and Desire (1953), Killer’s Kiss (1954) and The Killing (1956).

Paths of Glory (1957), an anti-war story about World War I was a commercial and critical success and led to Spartacus (1960), the epic story of a doomed uprising by Roman slaves. However, disillusioned with the Hollywood machine, Kubrick moved to England in 1962, where he lived with his third wife Christiane and their children until his death.

The controversial fi lm Lolita (1962) was made in the same year, and was followed by Dr Strangelove or How I Learned to Stop Worrying and Love the Bomb (1964). Boasting an impressive production design, it is often considered a masterpiece of black humour.

KUBRICK SPENT THE NEXT fi ve years developing his enormously infl uential science fi ction fi lm 2001:

A Space Odyssey (1968). Co-written with author Arthur C. Clarke, this fi lm’s ground-breaking

special effects and revolutionary engineering feats remain legendary to this day. The SFX

techniques pioneered by Kubrick were later used by directors Ridley Scott

and George Lucas for classic fi lms including Alien and

Star Wars.

The controversial A Clockwork Orange (1971) followed, and despite its lower budget, proved to be highly innovative (it included the dropping of cameras from tall buildings) and paved the way for Barry Lyndon (1975), an 18th-century drama about a gambler and social climber.

ONCE AGAIN, KUBRICK’S cinematography and lighting techniques established new benchmarks. Most famously, interior scenes were photographed using a specially adapted high-speed still camera lens, originally invented by NASA, allowing scenes to be lit naturally with nothing more than candlelight.

The Shining (1980), based on Stephen King’s horror novel, made extraordinary use of the newly-invented Steadicam (a stabilizing camera support that allows the cameraman to move around freely) and remains a classic cult fi lm.

Full Metal Jacket (1987), an acclaimed Vietnam war fi lm followed, before Kubrick started work on Eyes Wide Shut, his fi nal fi lm, in 1997. On 7 March 1999, four days after showing the fi nal cut of the fi lm to his family and the (then married) lead actors Tom Cruise and Nicole Kidman, Stanley Kubrick died in his sleep at the age of 70.

An enigmatic, reclusive fi lm visionary, Stanley Kubrick’s technological innovations and obsessive perfectionism continue to be sources of widespread inspiration.

“A Clockwork Orange proved to be highly innovative.”

sign off [ EVENTS ]


An extension to Wärtsilä’s state-of-the-art production plant in Wuxi, China was

offi cially opened in November 2007. Products manufactured at Wuxi include thrusters as well as seals and bearing products for all types and

sizes of marine vessel.

Located about 100 km west of Shanghai, the Wuxi facility serves the global shipbuilding

market as well as major shipbuilding areas in eastern Asia. With this investment, Wärtsilä is better placed to satisfy the rapid growth

in demand from China, as well as improving effi ciency and optimizing production globally.

Wärtsilä currently employs 133 persons in Wuxi.

QUOTES:

“Wärtsilä has a clear strategy of being close to our customers and moving with our markets. Today marks an

important milestone in pursuit of our strategy.”

“The extension to the factory more than doubles the shop fl oor area and

will now, in addition to the production of transverse thrusters, also have

production lines for steerable thrusters and seals and bearings products and

components.”

Lars HellbergGROUP VICE PRESIDENT

Wärtsilä Industrial Operations

“We have a clear strategy of being

close to our customers”, said Lars

Hellberg.

facilityWuxi production

extended

P H OTO S : W Ä R TS I L Ä

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WÄRTSILÄ CORPORATION has opened a new engine and propeller workshop in Cape Town, South Africa. The workshop provides services to shipowners, ship operators and power plants operating 2-stroke and 4-stroke engines.

“The new facility covers 2600 square metres, and includes an engine workshop, a propeller workshop and offi ce space. New premises were sought because our expanding business demanded larger and more modern facilities and increased crane capacity,” says Teppo Suominen, General Manager, Wärtsilä South Africa. “Wärtsilä service operations started in South Africa in 1994 with a staff of just one person, we now have 43 skilled employees. Also, the acquisition in 2007 of Marine Propeller, a propeller service company, resulted in demands for additional space.”

The engine workshop has a ten-ton crane with a lifting height of six metres. Services provided will be extended during 2008 with the addition of fuel-injection and governor workshops.

The propeller workshop is equipped with a 6.4-ton crane with a lifting height of 3.6 metres. There are three welding bays with welding machines and two special grinding bays. The workshop is also furnished with a casting unit capable of casting new fi xed-pitch propellers of up to 1.9 m diameter and new blades with a fi nal weight of 450 kg for controllable-pitch propellers in classes 1 and 2.

“From our facilities in Cape Town and Durban, we provide services for marine and land-based installations over the whole of the sub-Saharan region. A new branch offi ce and a workshop is opening at Walvis Bay in Namibia. And Madagascar will soon have its own branch offi ce. Wärtsilä has gained a strong position in the South African marine industry. Our power plant business is also showing promising growth,” says Suominen.

“We have gained a strong position in South Africa.”

NEW FACILITIES FOR GROWING BUSINESS

T E X T: J O H N PAG N I P H OTO S : W Ä R TS I L Ä

The reason isn’t just our solutions, excellent though they are. Just as important is the

around-the-clock lifecycle care offered by 16,000 of us all across the globe. This is the

kind of simple, practical thinking that will give a better return on your investment, whether

you need it on land or at sea. Learn more about what we can do for you at wartsila.com

EVERY THIRD SHIP YOU SEE IS POWERED BY US.

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Improving propulsion effi ciency

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30 CLOSER THAN EVER Learning from customers and understanding the logic behind their business is essential in predicting future needs.F

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38 THE RELIABLE GUARDIANRobust and sophisticated, CBM is a network of connections where the focus is on dealing with problems before they cause harm.

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51 O&M SERVICES The Wärtsilä model goes beyond traditional boundaries, covering all equipment from any manufacturer.

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If you need lifecycle care on land, at sea - or even

in it – call us. This is the kind of practical thinking

that will give you a better return on your investment,

whether you need a ship power, service or power

plant solution. Learn more of what 16,000 of us can

do for you all across the globe at wartsila.com.

TOMORROW THEY’LL BE DRESSED FOR THE SAHARA.

AROUND THE GLOBE

10 Largest on land

12 CALENDAR upcoming eventsNEWS orders, manufacturing

13 DICTIONARY useful defi nitionssignals: CARNIVAL

14 PEOPLE & FACES More space for thruster production in Holland More NEWS

15 COLUMN by Henrik Wilhelms

16 Q&A surprising facts YESTERDAY, NOW, TOMORROW Lighthouses

17 PHOTO QUIZ What is this ancient, rapidly growing colonial location?

18 COLUMN by Christoph Vitzthum

19 CORPORATE CITIZENSHIP Football and bright lights in China

SIGN OFF

*contents Wärtsilä Stakeholder Magazine*

The following information contains, or may be deemed to contain “forward-looking statements”. These statements might relate to future events or our future fi nancial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause Wärtsilä Corporation’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identifi ed by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this publication are based only on information presently available in relation to the articles contained in this magazine and may not be current any longer and Wärtsilä Corporation assumes no obligation to update any forward-looking statements. Nothing in this publication constitutes investment advice and this publication shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity. D

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Publisher: Wärtsilä Corporation | John Stenbergin ranta 2 | P.O. Box 196 | FI-00531 Helsinki | Finland | Telephone: +358 10 709 0000 |Email and feedback: [email protected] Editor-in-Chief: Mikael Simelius | Managing Editor: Virva Äimälä | Editorial team: Arnauld Filancia, Marit Holmlund-Sund, Maria Nystrand | Editorial offi ce and layout: Kynämies Oy | Helsinki |Finland |English editing: Rick McArthur | Printed byPunamusta | Joensuu | Finland |ISSN 1796-2161 | WÄRTSILÄ® is a registered trademark | Copyright© 2006 Wärtsilä Corporation | Paper: cover Galerie Art Gloss 250 g/m2 inside pages NovaPress Silk 90 g/m2

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56 GREENING EUROPECleaner, more effi cient local power plants have an important role.

58 GAS COMPRESSIONThe outlook for Wärtsilä gas engines is good.

61 POWER BREWINGAnother fi rst – employing spent grain to produce energy.

62 TURNKEY MODULESOilCubes to deliver both electricity and steam in El Salvador.

63 MULTIPLE ATTRACTIONSInvestigating marine applications for fuel cells running on methanol.

65 DEEPWATER PIPELAYINGWärtsilä’s contribution includes gensets, steerable and retractable thrusters.

67 FUTURE FERRYA natural gas-powered concept vessel with high overall effi ciency.

8 Twentyfour7. 1.08

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GREENING EUROPE, PAGE 56 FUTURE FERRY, PAGE 67

69 A SMOOTHER RIDE meeting your needs

70 AT YOUR SERVICE global marketing

71 TRAVELLERS’ GEAR ultra-mobile laptops, making notes, keeping in touch with your mobile, easy audio editing.

72 HISTORY CORNER heritage in Helsinki LITTLE ENGINEERS’ PAGEfl uid dynamics on your kitchen table

73 STANLEY CUBRICK pioneer in the use of special effects

74 EVENTS extension to Wuxi plant opened. EVENTS new workshop in South Africa

Written permission from Wärtsilä Corporation is requiredfor the reproduction of articles in whole or in part.

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Dear Reader,THE CURRENT FOCUS on sustainability and environmental issues is an ongoing theme for all of us. In everything we do - manufacturing, assembling and sourcing - we are constantly searching for improved effi ciency to meet both our internal targets and those set by regulators and our customers. As a world leader in its fi elds of operation, Wärtsilä accepts responsibility for improving, developing and delivering new and existing products and solutions in ever more effi cient ways.

IN JANUARY, the Wärtsilä Board of Management committed the Group to reducing its own energy consumption - heating, electricity and fuels used in energy production and testing - by at least 10% in absolute terms by 2016. The baseline for comparison is average energy consumption in 2005. What will you be doing? Technology is an enabler to face the challenges that lie ahead. However, each and every one of us will also have to make a personal commitment to change.

WHAT IS THE COMMON FACTOR here? I believe it is making intelligent choices. Of course our daily lives will be affected, but we also can exert infl uence through the decisions we make, by choosing companies that share the values we consider important. Apples or power plants, t-shirts or marine solutions - we make decisions based on the products or companies we believe in.

WHAT DOES THIS have to do with Wärtsilä? I am certain that companies who understand their customers and their customers’ customers are the ones who will be winners. This means we have to listen, communicate and act. By understanding our customers we communicate in the right way, strengthening our brand. And a strong brand means a clear identity and reputation – our promise and our performance.

HOPEFULLY WE CAN engage, touch and surprise you once again in this issue of Twentyfour7.

Thank you for choosing Wärtsilä,

Yours truly,

Mikael SimeliusVice PresidentMarketing Communications & Branding

[email protected]

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INCREDIBLE HULKELEPHANTS, of the order Proboscidea, are the largest land animals alive today and comprise three species, the African Bush Elephant, the African Forest Elephant and the Asian Elephant.

AFTER A GESTATION period of 22 months, a calf will typically weigh 120 kg at birth and the largest males can grow to exceed 10,000 kg. With an average lifespan of 70 years, exceptional hearing and sense of smell and a brain mass of more than 5 kg - larger than any other land animal - elephants are capable of eating up to 270 kg of grass and walking 80 km each day.

THEIR EXTRAORDINARY trunk, equipped with 100,000 muscles, can suck up 14 litres of water in a single gulp. Its special sensitivity to low frequency vibrations enables it to be used - with their feet - to communicate with other elephants through the ground over large distances.

NOW A PROTECTED SPECIES, elephants are complex and sociable creatures with excellent memories, high levels of intelligence and a structured social order. They exhibit a wide variety of behaviour characteristics including compassion, the ability to grieve and a sense of self-awareness; revealing elements of empathy and altruism only observed so far in humans, apes and Bottlenose Dolphins. Dumb(o) they are not.

TEXT: DAN RIDER

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MAJOR SHIP OVERHAUL CONTRACT FOR NORWEGIAN OPERATOR

In December 2007, Wärtsilä signed a EUR 9.5 million contract to overhaul Pride of Telemark, a ferry owned by the Norwegian operator New Kystlink AS. The contract emphasizes Wärtsilä’s strength as a total service provider.

The scope of the project includes installation of a complete electrical system, removal and major overhauls of fi ve of the ship’s auxiliary

engines, onboard overhaul of two main engines and the renewal of 31 cabin interiors. The overhaul is scheduled to be completed in the spring of 2008.

CHRISTOPH VITZTHUM APPOINTED CHAIRMAN OF WADE

Mr Christoph Vitzthum, Group Vice President and head of Wärtsilä Power Plants, was appointed Chairman of the Board of Directors of the World Alliance for Decentralized

Energy (WADE) on 1 January 2008.

WADE is an international non-profi t research and promotion organization representing global companies as well as industry and environmental groups. WADE’s direct and indirect membership includes well over 200 organizations.

GAS POWER PLANT FOR TEXAS

Wärtsilä Corporation has been awarded an equipment supply

SEATRADE CRUISE SHIPPINGMARCH 10-13

Miami, Florida, USAThe meeting place for cruise line

decision makers and knowledgeable industry suppliers

STAND 1601

HANNOVER MESSE APRIL 21-25Hannover, Germany

The world’s leading showcase for industrial technology

STAND F32 IN HALL 27

SEATRADE MIDDLE EAST WORKBOATS APRIL 28-30

Abu Dhabi, UAEEvent dedicated to the Workboat

industry in the Middle EastSTAND E3

WORLD BIOENERGY MAY 27-29Jönköping, Sweden

International event promoting commercial implementation of

bioenergy technologies and solutionsSTAND A02:62

POWERGEN EUROPE JUNE 3-5Milan, Italy

Europe’s leading annual power generation conference and exhibition

STAND K27 IN HALL 3

WÄRTSILÄ’S FINANCIAL INFORMATION

Wärtsilä will publish three Interim Reports in 2008. The January-March

Interim Report will be published on Friday, 25 April 2008, the January-June

Interim Report on Thursday, 24 July 2008 and the January-September

Interim Report on Friday, 24 October 2008.

The 21st biennial International Shipping

ExhibitionSTAND 130

June 2-5Athens, Greece

Posidonia

around the globe

Dictionary


FUEL CELLAn electrochemical device that converts the energy of a fuel directly into electrical energy and heat through a chemical reaction. The basic physical structure or ‘building block’ of a fuel cell consists of an electrolyte layer in contact with a porous anode and cathode on either side of it.

GAS COMPRESSIONThe raising of gas pressure and density for further processing. This makes it possible to use smaller storage tanks or pipes to transport a given quantity of gas.

01.2008

CarnivalIt’s festival time. A celebration combining

elements from a circus, a public street party and dressing up, carnivals can last from a

few weeks to several months.

Inspired by the 40-day religious period of Lent, a commemoration of the Passion of

Jesus - historically a time when parties and the consumption of many foods,

particularly meat are forbidden - carnivals represent the last opportunity to celebrate

before fasting begins.

Shrove Tuesday, also known as Mardi Gras, is the high point of the festivities. Brazil’s Mardi

Gras, with its music, colour and Samba dancing, is the biggest. Other well-known

carnivals include the Carnival of Venice dating from 1268 and the elaborate street parades

and masked balls in New Orleans. Let’s party!

Mr Atte Palomäki has been appointed Group Vice President, Corporate Communications. In his new position, Mr Palomäki becomes a member of the Wärtsilä Board of Management and reports to Mr Ole Johansson, President and CEO.

Mr Ad Bertens has been appointed Managing Director and Vice President, Services of Wärtsilä Gulf FZE in Dubai.

Mr Rakesh Sarin, Vice President, Sales, Middle East and Asia for Wärtsilä Power Plants has also been appointed Managing Director of Wärtsilä India.

Mr John Sydney has been appointed Managing Director & General Manager, Services for Wärtsilä Australia. He reports to Mr. Christer Kantola.

Mr Ghazanfar Mirza has assumed the position of Managing Director of Wärtsilä Pakistan (Pvt.) Ltd. He will continue his duties as General Manager, Power Plants.

Wärtsilä Central Africa (WCM), a new company, was established in Cameroon on 1 January 2008. Mr Paavo Wiro has been appointed Managing Director & General Manager, Services, Wärtsilä Central Africa (WCM).

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WITH GRAND FESTIVITIES and a customer seminar, Wärtsilä inaugurated its new thrusters factory extension in Drunen, The Netherlands on 23 January 2008, an important event for both internal and external stakeholders. A sizable investment, it confi rms Wärtsilä as a major player in the shipbuilding community as well as in The Netherlands. Production-related investments at the Drunen site total some EUR 10 million.

THE NEW EXTENSION covers 2100 square metres and annual production capacity of the new factory at full steam will total around 100 modular steerable thrusters. Full capacity will

T E X T: R U S S E L L S N Y D E R P H OTO S : W Ä R TS I L Ä

be achieved in 2009, and 40 people will be employed. Employees are recruited locally using a dedicated team and trained by experienced personnel.

THE MAIN MARKETS for thrusters are in the offshore production sector. Applications for this technology include deepwater drilling and production rigs, offshore supply vessels, tugboats and special vessel applications which require a high level of manoeuvrability. Wärtsilä customers will benefi t from the extended facility as its effi cient layout allows for shorter production times and higher output levels.

A TOTAL OF 1500 PEOPLE are now working at four main Wärtsilä locations in The Netherlands, an extremely important maritime country with a strong supplier base, specialized yards and design companies, and highly effi cient facilities. Maritime know-how and experience in global markets make this a key country for Wärtsilä. Further growth in demand for new systems and services in the maritime market is expected for the foreseeable future.

contract by the South Texas Electric Cooperative (STEC), a non-profi t power generation and transmission organization. Valued at more than EUR 83 million, the contract for the 203 MW gas-fi red power plant includes 24 gas engines, all related mechanical and electrical auxiliaries and SCRs, installation and commissioning support and training.

The fi rst part of the power plant is expected to enter commercial operation in late 2009, with the remaining section coming online by the

end of 2010. Located some 80 kilometres southwest of San Antonio, the new power plant will be connected to the ERCOT grid.

LARGE ORDER FOR RETROFIT CYLINDER LUBRICATION SYSTEM

Wärtsilä has won an order from Hamburg-based Reederei Claus-Peter Offen (CPO) to retrofi t 21 vessels with Wärtsilä’s Retrofi t Pulse Lubricating System (RPLS). Electronically-controlled, the cost-reducing RPLS solution will be installed on all the Wärtsilä RTA96C engines

in CPO’s fl eet of containerships.“Engine lubricants increased

in price by roughly 30% in 2006, the largest proportional growth of any single factor in our vessel operating costs. With its precise timing and accurate metering of cylinder oil, considerable cost savings will be achieved,” said Lothar Knöchelmann, Technical Director, CPO.

AGREEMENT TO MANUFACTURE LOW-SPEED MARINE DIESEL ENGINES IN RUSSIA

Wärtsilä and Bryansk Engineering Works (BMZ),

a manufacturing subsidiary of the Russian company Transmashholding, have signed a licensing agreement for the manufacture of Wärtsilä low-speed marine diesel engines by BMZ. Wärtsilä will provide BMZ with necessary technical documentation and will also arrange training for the company’s specialists.

Through the new licence agreement, BMZ will supply Wärtsilä engines to shipyards in Russia, Ukraine, Romania and Bulgaria.

New assembly hall addsthrust to the Dutch economy

THE WAY IN WHICH Wärtsilä Ship Power is organized is changing. Since our aim is to understand our customers better, the new organization is based on customer segments.

While Ship Power’s product-driven organization: 4-stroke, 2-stroke, propulsion etc. has worked very successfully in the past, we believe that success in the future depends on us becoming better at understanding both our customers and their business - and the ways in which we can add value to it.

SHIP POWER’S NEW customer segments are: Merchant, Offshore, Cruise & Ferry, Navy and Special vessels. Within the new organization, each member of a segment will focus on a limited number of ship types and applications, making it easier to understand each customer’s needs and requirements, and thus we can develop better, more effi cient solutions and value propositions.

The environment is high on the agenda for all of us. Environmentally sound solutions are and will become even more essential in the future, because the rules and legislations regarding emissions are becoming stricter, it is just a question of when and how much. So far, much of the discussion concerning emissions has been about NO

x and SO

x from engines, but as the

impact on the environment is determined by much more than just a ship’s engine, it is important that we look at entire vessels and their overall effi ciency.

WITH THIS IN MIND, many of the latest developments and acquisitions have been made to strengthen our knowledge in this fi eld. One example is the acquisition of a design company in Germany. Now we have the know-how and skills required to tailor highly-effi cient ship solutions in house. Our effi cient engine and propulsion solutions can now be part of optimal vessel confi gurations. This is very important since while everything we do to improve effi ciency also has a positive impact on the environment, and as the price of fuel is high, and will probably remain so in the future it is also high on the agenda for all our customers. So by improving the effi ciency we can help to save both the planet and money for our customers.

HENRIK WILHELMSVice President

Wärtsilä Ship PowerSales & Marketing

[ COLUMN ]


COOPERATION AGREEMENT WITH V.SHIPS

Wärtsilä and V.Ships, the world’s leading ship manager, have agreed to cooperate on the provision of a broad spectrum of marine technical services to third parties in the marine market.

Drawing on Wärtsilä’s strengths as a supplier of highly-rated ship machinery and systems and V.Ships’ proven success in recruiting and training senior offi cers and technicians, the partners plan to offer an integrated portfolio of services that encompasses the full lifecycle of onboard machinery at

competitive cost.

DUAL-FUEL POWER PLANT TO TRINIDAD AND TOBAGO

Wärtsilä has been awarded a contract valued at approximately EUR 52,3 million by the Trinidad and Tobago Electricity Commission (T&TEC), the Republic of Trinidad and Tobago’s national electrical utility, to supply a dual-fuel power plant running on natural gas and light fuel oil. The baseload power plant will be the fi rst natural gas reciprocating engine plant in the region and is scheduled to be commissioned in September 2009.

Understanding the CUSTOMER’S BUSINESS

around the globe [ YESTERDAY, NOW, TOMORROW | Q&A ]


Q&A

YESTERDAY A tower building or framework sending out light, initially from a fi re and then from systems of lamps, refl ectors and lenses, lighthouses are used to mark dangerous coastlines, hazardous shoals or safe entries to harbours. They can also assist in aerial navigation. History’s most famous lighthouse is probably the Lighthouse of Alexandria. Built in 280 BC on the island of Pharos in Egypt and more than 100 metres high, it was one of the world’s tallest man-made structures for many centuries.

NOW Development of the Fresnel lens in 1822 revolutionized lighthouses by enabling 85% of the light from the lamp to be focused

into the beam, far more than with the parabolic refl ectors then in use. In recent decades, many Fresnel lenses have been replaced by rotating aerodrome beacons which require less maintenance.

In modern automated lighthouses, rotating devices are often replaced by high intensity lights emitting brief omnidirectional fl ashes, similar to the obstruction lights used to warn aircraft away from tall structures. To assist in distinguishing between lighthouses and beacons, the time interval of the light or the colour pattern is varied. Many modern lighthouses also have special refl ectors or Racon transponders to make their radar signatures unique.

TOMORROW Light-emitting diode (LED) technology is being introduced to replace incandescent lamps. As they have no glass to shatter or fi lament to break, LED lamps are very durable, and while their light output can equal that of an incandescent lamp, they consume just 10% of the electricity. They also have a life span of up to 100,000 hours, equivalent to some 11 years of continuous use. As the incandescent lamps used in lighthouses burn out after an average of 500 hours of operation, the use of LED lamps will practically eliminate the need for costly maintenance visits.

LIGHTHOUSES

TEXT: RICK McARTHUR

WHICH TAKES LONGER - starting up a Wärtsilä

power plant or making a cup of tea?

Wärtsilä gas power plants are able to provide 25% of

their maximum power in two minutes and to reach full

plant output in less than ten minutes.

IN WHICH COUNTRY can you fi nd the oldest

Wärtsilä-related engine that is still running?

Built in 1912, the Sulzer 1D25 engine originally installed

at the Somerford Pumping Station in Staffordshire is

still running today at Internal Fire, a Museum of Power in Wales. During the summer of 2008, the engine will be run every day to celebrate Dr Rudolph Diesel’s 150th

birthday and his invention.

CAN THE OPERATION of a power plant in Africa be monitored on another

continent?More than 200 marine and

power plant installations around the world

are connected to the Wärtsilä Condition Based

Maintenance centre in Finland, thereby optimizing their operations, improving predictability and reducing both maintenance and fuel

costs.(READ MORE ABOUT

CBM ON PAGES 38-42).

BEACONS THAT SHOW THE WAY

TEXT: MARIA NYSTRAND

SURPRISING FACTSABOUT WÄRTSILÄ

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