Challenges for sCould New fuels and Sc

Carsten Kruse, Ste

hipping industryrubbers be the answer?

ena Line Danmark

Transport by sea is environmimprovement is needed� Shipping is taking care of the residues

more and more fine distillate to land b� Systematic work to reduce the effect o

in all major shipping companies� The reduction of fuel consumption is a� Example: Stena Superior 20% better

8-9% better than anything today

mentally friendly but

s from refineries that are producing based transporton the environment is common practice

a key issuethan 2009

14.2.22.6Sour

There are many routes and shipsulphur rules

000 individual ships in SECA 2010200 ships 100% of the time600 ships > 50% of their timerce IHS Fairplay

ps that are affected by new

Stena Line is heavily affected

Stricter rule for emission atwo major challenges for th� IMO decisions on SECA with 0,

from 2015, which is 35 times strwill add a massive cost to these

� The oil price has been establishand is not expected to fall

� The shipping community has to

and higher price on oil are he shipping industry1 % maximum sulphur content ricter than the rest of the world, e areashed on a level above 110$/barrel

o look for new types of fuel

Stena has a technichal depacompetitive solutions

• Development of new types of s• The specifications are set by th

ship-owner – not by the yard• Type of propellers, hull design,

engine configuration etc has tospecified

• Saves money in operation• Meet customers demands• Secure compliance to safety, environmental and other standards• Competitiveness

artment to develop new

shipshe

o be

We have looked at four diffthis challenge1. Run on Marine Gas oil with 0,12. New types of fuel LNG or Meth3. Install exhaust gas cleaning eq4. Reduce operations and adjust

The solution is in a comb

ferent ways of meeting

1% sulphurhanolquipment, Scrubberst to the new situation

bination of the things above

1. To go for low sulphurpossible - but expensive

0

200

400

600

800

1000

1200

HFO HFO 1% LSMGO 0,1%

42%

53%

3,5%

8%

r Marine gasoil is e

• The last bit from 0,5 to 0,1 is very expensive

• When demand for 0,1% increases the price is expected to raise more

• Already today there is a lack of LSMGO in EU and new demand will be imported

USD/ton

2. New types of fuel

• LNG Liquefied Natural Gas• LPG Liquefied Petroleum Gas

• Methanol• Ethanol• DME Di-Methyl-Ether• Synthetic Diesel (Gas To Liquid, Coa• RME Raps-Methyl-Ether• Bio oils

Projects are ongoing but ….

l To Liquid)Metan (LNG)

Methanol

2. LNG (liquefied natural

• Natural gas at -163°C• LNG ships use gas from cargo for

propulsion• Reduction of emissions: CO2 -25

- 85%, Sox and particles very low

gas)

r

5%, NOXw

Challenges:• Size of tanks• Methane slip vs. CO2• Distribution / bunkering• Not possible to convert ferries.

2. We believe Methanol

• Can be produced in many ways and used

• Transport with regular tanker

• Infrastructure and safety similar to etha

• Liquid – no high pressure

• Big commodity (45 millions ton/year)

• Similar positive reductions as LNG in ter

• Green energy source for the future?

could be a solution

d for many purposes

nol

rms of Nox & SOx

But• Toxic• Formaldehyd in exhaust gases • Dubble volume vs Diesel

Metanol

Summary new fuels

• Lack of small scale distribution miss- terminals- ships

• Lack of international standards and • Lack of national and regional rule an• Suitable for new buildings but often

ing

regulationsnd standardsproblematic with existing fleet

3. Scrubber study

� Two ships were selected as candidate� (All) suppliers were invited to a semin� Three chosen for further technical ana

esaralysis and cost estimation

Scrubber study

Typical Stena ferry with 20 MW enand 2-4 MW auxillary power.

Operational profile; often running

2 x 12 MW scrubbers found to be

Wet scrubbers 480 ton including l

Dry scrubber >500 ton

ngine power from 4 engines

g on 2 or 3 engines.

best solution

liquids

Total investment 8 M€ / shi

� Cost estimation includes,- Hardware - Installation incl. Site team etc.- Operation and maintenance- Loss of income during installation- Loss of revenue due to lower cargo

� Specific comparison - Single vs multiple inlet

p

capacity

Rev loss installation

12%

Owners delivery4%

Yard delivery41%

Scrubber38%

Other5%

Operating cost is abo

• The reagent is the biggest cost – is highly corrosive and dangerous. Separate piping and tanks has to be constructed.

• Higher cost for maintenance of main engines due to higher sulphur content

out 600T€/year

Caustik soda70%

Energy11%

Freshwater5%

Maintenance Scrubber

9%

Maintenance Main

Engines5%

35 ton per week!

Important factors when takScrubber installation

• Age of vesselHard to get a good return on in20 years at the time for compl

• Deadweight Will limit the possibility for ma

• Anticipated price spread betweThe spread will ultimately deciprofitable or not

• New technology. Both Dry Scruto function but still a risk to chfully tested

king decision about

nvestment for ships older than etion of the installation

ny ships

een 0,1% and 3,5%, de if the investment is

ubber or Wet Scrubber seems hoose a technique that is not

It´s not easy to combin

• The SCR needs high temperature 390 C – not possible after wet scrubbing

• SCRs is not functioning well with high sulphur content (clogging – se picture)

• We don’t have a solution for this today

ne Scrubber and SCR

Important input when takininstallation

• Most suppliers is offering test inreluctant to offer any guarantee

• Amount of caustic soda (NaOH)tonnes/week to be supplied withspecial pipes.

• Problem at this stage to get gooto lack of experience

g decision about Scrubber

stallation and are very e of functionality) when HFO 3,5% approx 40 h lorry and pumped onboard in

od firm offers from shipyard due

In the end the cost increasescrubbers or not

M€

0

1

2

3

4

5

6

7

8

Today F1 1% MGO Ferry 1 0,1%

Scrubber Ferry 1 Today F

-15%

e will still be there,

F2 1% MGOFerry 2 Scrubber Ferry 2

Operation

Investement

Loss of capacity

Fuel

No clear solution for shippingand higher fuelprice� Marine gas oil significantly more� New type of fuel are under deve� Scrubbers not ready for comme

case very expensive

Therefore we will start to ca

g to meet new regulations

e expensive than today's 1% fuelelopment but nothing ready yetercial installations yet and in any

arefully look at our business

Thank you!

www.stenateknik.comm

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