LPG as a marine fuel: lessons learned from the pioneers8 March 2021 • 14:00-14:45 GMT

Marine FuelsWebinar Week

Part of

8-12 March 2021

Supporting organisation

Panellist documents

Page 2: Bill Liddell, Isle of Man RegistryPage 6: Klaus Dahmcke Rasmussen, MAN PrimeServPage 17: Panos Mitrou, Lloyd’s Register Offshore & Marine

Converting or retrofitting for LPG?

Some of the regulatory aspects to consider!

Is the vessel under consideration for LPG use a gas carrier?

International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code 1983 edition – as amended)

International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code 2016 edition)

If not?International Code of Safety for Ships Using Gases or Other Low-Flashpoint Fuels (IGF Code) Keel laid after 01.01.2016 ?

(current IGC code)LPG can be used as a gaseous fuel stock by design (Ch16.9 via Ch16.1).

Keel laid before 01.01.2016 ?(previous IGC code as amended)LNG is the only permitted gaseous fuel stock (Ch16.1)

Unless…..A “design equivalence” per section 1.4 addressing the necessary safety considerations for LPG use is submitted to the International Maritime Organisation (IMO).

Pros Cons

Regulatory framework exists specifically for gaseous fuel use

Evidenced reduction in vessels exhaust emissions

Potential reduction in operating costs

Wide availability of LPG at ports (LPG can be supplied by road tankers)

LPG doesn’t need cryogenic containment systems (and associated high grade construction materials)

Gaseous fuel use is safe. (LNG carriers have used it as fuelsince LNG was carried as cargo).

Liquid Gas or Liquid Fuel Oil vaporisation for combustion is the same process and easily accommodated in modern engines.

“Pilot fuel” is still required to ensure complete combustion or to take over engine load if the gas supply is lost for safety reasons.

Type of fuel used needs careful consideration as different safety aspects need to be covered for each.

An Internationally Respected Quality Flag of Choice

LPG as a Marine Fuel:What to consider when retrofitting for LPG

SEADARRetrofit ProjectsMAN PrimeServ Copenhagen2020

Webinar Riviera – Monday 8th. of Marts 2021, 14:00 GMT

The Very Large Gas Carriers (LPG) take lead

Nov 2020 2

- lowering all emission types significantly

Webinar: Dual-fuel LPG conversions

Vessel FACTS:BW Gemini, 84,000 cbm VLGC, Owner BW LPGMain Engine 6G60ME-C9.2 - 12,400 kW, • built in 2015 to be fueled with HFO

• converted in 2020 to be fueled with LPG

• first LPG fueled vessel in the world

• 14 sister vessels will also be converted to LPG

Compared to OIL - LPG provide significant emission reductions:

• SOx by 99%

• CO2 by 15%

• NOx by 10%

• PM by 90%

08.03.2021LPG as a marine fuel: lessons learned 3

- Focus on Very Large Gas Carriers and LPG

High Level things to consider when going for engine retrofit

• Will VLGC owners using conventional fuel be able to maintain full vessel speed when new EEXI regulation come into force?

• Will vessel owners be able to obtain todays charter rates – when LPG market get flooded with new vessels propelled by LPG

• Will vessels on conventional fuel be able to maintain their asset values in the future?

• Is there an LPG engine design availed for engine retrofit

• What endurance is needed for the vessel

• Can endurance be obtained just by fuel pumps in cargo tanks or existing deck tanks

• Which FGSS maker should I choose – the vessels cargo system maker – or others

• Whom should project manage the full retrofit project

• Which yards have the competences to execute a retrofit project

• How many resources do we as ship owners/vessel operators have to allocate and when in the process

The future VLGC market The vessel/engine The retrofit project/proces

Fuel type No. of engines Engine type Mk.

LNG 222

6 G 95 ME-C-GI 10.56 S 90 ME-C-GI 10.5

25 G 90 ME-C-Gl 9.5, 10.56 G 80 ME-C-GI 9.52 S 80 ME-C-GI 9.54 S 70 ME-C-GI 7, 8.2, 10.5

153 G 70 ME-C-GI 9.2, 9.5, 10.55 L 70 ME-C-GI 8.26 G 60 ME-C-GI 9.5,10.53 S 60 ME-C-GI 10.5

10 S 50 ME-C-GI 8.2, 9.51 G 50 ME-C-GI 9.52 G 45 ME-C-GI 9.5

Methanol 23 20 G 50 ME-B/ME-C –LGIM 9.3, 9.5, 9.63 S 50 ME-B-LGIM 9.3

Ethane 2320 G 60 ME-C-GIE 9.5

3 G 50 ME-C-GIE 9.54 S 50 ME-C-GIE 8.2

LPG 7148 G 60 ME-C-LGIP 10.5, 9.5, 9.2

6 S 60 ME-C-LGIP 10.56 G 50 ME-C-LGIP 9.66 S 35 ME-C-LGIP 9.7

08.03.2021LPG as a marine fuel: lessons learned 4

Already ordered DF Engines – Parent Engine tests available

1st. Of Marts 2021

• Parent engines are key to retrofit projects as reference engines

• A technical file for the reference engine type has to be available including:

• Engine rating• NOx emissions• NOx components• Engine performance data

08.03.2021LPG as a marine fuel: lessons learned 5

EEXI Impact – LGIP conversion

2.0

4.0

6.0

8.0

10.0

12.0

20,000 30,000 40,000 50,000 60,000

EED

I Val

ues

DWT

Gas Carriers - Estimate

EEDIReference line valuesPhase 1 - 10 %

Phase 2 - 20%

Phase 3 - 30%

Att. EEXI

LGIP EEXI

08.03.2021LPG as a marine fuel: lessons learned 6

Repair yards available with excellent skills

Yiu-Lian Dock Yard –Shenzhen

08.03.2021LPG as a marine fuel: lessons learned 7

From 4 to 15

BW Gemini BW Leo BW Orion BW Libra BW Balder

BW Njord

BW Frigg

BW Var BW Brage BW Tucana BW Volans

√ √ √1 2 3 4 5

6

11

7

12 13

1098

14 15

√

08.03.2021LPG as a marine fuel: lessons learned 8

Internal high level process

08.03.2021LPG as a marine fuel: lessons learned 9

Cold Conversion

Thank youvery much!Klaus Dahmcke RasmussenSEADARKlaus.rasmussen@man-es.com

All data provided in this document is non-binding.This data serves informational purposes only and is especially not guaranteed in any way.Depending on the subsequent specific individual projects, the relevant data may be subject to changes and will be assessed and determined individually for each project. This will depend on the particular characteristics of each individual project, especially specific site and operational conditions.

LPG as Fuel – SnapshotLPG as a marine fuel: lessons learned from the pioneers

Panos Mitrou Global Gas Segment Manager

Marine Fuels Week – 8 March 2021

LPG as Fuel Uptake - Orderbook

Lloyd’s Register 2

Key LPG as Fuel uptake points

• Initial efforts for LPG as Fuel date back to 2012 with the initial EXMAR project

• Uptake today ranges in sizes from the small LPG segment to the largest VLGC designs

• More than 60 units are currently projected for LPGF including retrofit projects

• All major shipbuilding countries currently include LPGF projects in their portfolio

• One of the latest key requirements is the exploration of potential net zero fuel readiness for such units

• LPG as Fuel lacks applications in non LPG Carriers but with mounting experience it seems this may soon change

LPG as Fuel – LR Projects Portfolio

✓ Wideshine 5x86K @ Jiangnan ✓ Exmar 2x86K @ Jiangnan ✓ Avance Gas/Frontline 2+2 x91K @DSME ✓ Byzantine Maritime 2x38K @ HMD ✓ Union Maritime 2 x91K @HHI✓ EPS 3 x 40K @ HMD

The LPG as Fuel Option - Anatomy

Lloyd’s Register 3

Pros Cons

✓ Virtually No Sox emissions and reduced NOx and GHG (13-17%)

✓ Easy to use on LPG Carriers (scale)✓ Extensive Transportation

Infrastructure ✓ More compatible with the Methanol

/Ammonia pathways✓ Lower CAPEX than LNG

➢ LPG extracted from oil resources, still burdened with production GHG emissions

➢ More Flammable than other oil based fuels

➢ Odorless and more difficult to detect➢ Limited GHG saving➢ More susceptible to abnormal

combustion vs LNG

Keeping in mind its Low CAPEX and competitive pricing of LPG today in conjunction with its compatibility to Methanol and Ammonia and potential availability of Green/Blue Methanol and

Ammonia in the next 10-15 years as well as CCS. LPGF could constitute a credible alternative with a projected net zero carbon pathway.

LPG as Fuel – Classification Timeline

Lloyd’s Register 4

● Approval in Principle – Feasibility of LPG as Fuel – 11 July 2012

● EXMAR LPG Fuel System HAZID – 07 September 2012

● Development of LR’s Rules for LPG as Fuel for gas carriers – Incorporate into Gas Rules Ch.16 Appendix

● AiP with HHI for LPG Fueled 84K VLGC with HAZID – June 2018

● HANJIN NTP0173/0174 – 79.5K VLGC (LPG as Fuel) through ‘Risk Based Designs’

● Jiangnan Shipyard: EXMAR Project (Wartsila Design) & Wideshine Project (Babcock LGE Design)

● DSME: Hull No. 2357 Project - AVANCE GAS VLGC (DSME FLGSS Design)

● HMD: Hull No. 8293 – Byzantine

● Jiangnan Shipyard: EXMAR (MGC)

Key Lessons from LPG as Fuel experience

Lloyd’s Register 5

‘Specification Review (LPG Fuel incl.): At the pre-contract stage, review technical specification in detail and apply key features applied in previous projects and based on experience. Fuel readiness represents now one of the key ‘asks’.

Risk Based Assessment of the DesignThe application of a structured detailed methodology for new designs remains one of the elements to successful and practical gas as fuel applications. We have developed our ARBD Methodology which is mandated by LR Rules.

Specialist review of the gas trial procedure:Prior to the sea trials, the shipyard testing procedures relating to the engine gas mode and the transition between gas and MGO will be thoroughly evaluated by a specialist to ensure the gas fuel safety control functions have been adequately considered and will be verified.

Lloyd’s Register 6

Thank you...

For more information, and queries please contact:

Panos Mitrou Global Gas Segment Manager

Panayiotis.Mitrou@lr.org