PRESENTATION BY

Capt. BERNARDO HERZER

LPG in the Marine World Latin America

Innovations and Good Practices for the Andes

Golehr.com

LPG AS A MARINE FUEL

• A major opportunity for the propane industry to displace

gasoline and diesel fuel in the marine market

• Propane Autogas is the most widely used and accepted

alternative to the conventional oil-based transport fuels:

gasoline and diesel.

• Emissions regulations today dictate the use of low sulfur fuels

• Alternative fuels like propane are a viable choice – as they are

almost all sulfur free

• There are many questions about the cost of low sulfur diesel

• The higher costs of low sulfur diesel could make the use of

alternatives a reality much sooner

A CHANGING WORLD IN THE MARINE

Sulphur Emission Control Areas (SECAs) are sea areas where there are stricter requirements

World Emissions SECA

BENEFITS E

NV

IRO

NM

EN

T

•Not a marine pollutant

•Lower greenhouse-gas emissions •No Spills

•CLEANER AIR

•GHG

•CO2

•NOX/SOX

•Particulate

•VOCs

•Hg (Mercury)

CO

ST

•EQUIPMENT COST

•FUEL COST SAVINGS

•REDUCED MAINTENANCE

•LONGER ENGINE LIFE

CO

NV

EN

IEN

CE

•REDUCED MAINTENANCE

•LIQUID FUEL AT LOW PRESSURE

•FUEL STABLE FOR LONGER PERIODS THAN GASOLINE, ETHANOL, OR BIO-DIESEL

PE

RFO

RM

AN

CE

•HIGHER OCTANE –EFFICIENT ENGINE

•COOLER BURNING ENGINE – LONGER LASTING

LPG ENGINE & FUEL EFFICIENCY

• LP Gas has high energy content per ton compared to most other oil products and same emission benefits as LNG

• Higher Octane = Higher Compression = More Efficient Engines

• Difference in BTU is addressed

• LPG Non cryogenic – Can be stored as liquid at LOW pressures

STUDIES & REGIONAL APPLICATIONS

• Spain (2007) – LPG vs. Gasoline in

Outboards

– RESULT: No difference in performance at peak power

– “LPG: Pollutant emission and performance enhancement for spark-ignition four strokes outboard engines”, July 27, 2004, S. Murillo, J.L. Mıguez, J. Porteiro, L.M. Lopez Gonzalez, E. Granada, J.C. Moran, E.T.S. Ingenieros Industriales, Universidad de Vigo, Campus Lagoas-Marcosende, 36200-Vigo, Espana, Spain.

• Italy (2010) – Motorized gondolas and

water taxis switch to LPG

– Reduced GHG, water pollution, and VOCs

– Reduced cost

– RESULT: Still being implemented

– “Using LPG to replace gasoline in boats “, Keith Henderson, November 7, 2010, Maritime Propulsion Magazine

GLOBAL APPLICATIONS

• Chile leads the world in marine LPG uses

• 80% of Salmon fishing boats using LPG in the south of Chile.

• There are many examples in Europe of LPG in use as a marine fuel

LEARNING FROM AUTOGAS

• Global consumption of autogas reached 22.9 million tonnes in 2010, and is increasing rapidly.

• Drivers behind quick adoption in autogas:

– Government policies

– Energy security

– Environmental concerns

• LPG is the leading alternative fuel

– Practical (Ease of use)

– Cost Advantage

KEY DEVELOPMENT DRIVERS E

NV

IRO

NM

EN

T

•MANDATES

•LEGISLATION

•IMO

•EPA

•CE

•LOCAL BODIES

MA

RK

ET

DE

MA

ND

•NEW EQUIPMENT

•CONVERSIONS FROM TRADITIONAL FUELS

•HIGHER EMISSIONS STANDARDS

EC

ON

OM

ICS

•EQUIPMENT COST PREMIUM REDUCTION

•OPERATING AND TOTAL COST OF OWNERSHIP SAVINGS

•LOWER COST OF FUEL

PE

RFO

RM

AN

CE

•TECHNOLOGY IMPROVEMENTS

•LOWER MAINTENANCE

•LIGHTER FUEL

ADVANTAGES: LPG vs. LNG

LPG LNG

Recreational Marine Use

Commercial Marine Use

Efficiency

Operating Cost

Investment Cost

Ease of Refueling

Existing Refueling Infrastructure (Commercial)

Installing Refueling Infrastructure

Safety

CONTROLLING WATER POLLUTION

• Gas and particulate contaminants released into the

air settle to the floor of lakes, rivers and oceans

and are converted into methlymercury

• 50% of the fresh water bodies in the US are under a

water-contamination advisory

• The EPA estimates that as much as 6 MM gal of

gasoline per year are spilled – each gal of gasoline

contaminates 1 MM gal of water

• LPG is not a marine pollutant and emits 96% less

particulate matter

USES OF LPG IN MARINE

• YACHT

• RECREATIONAL

USES OF LPG IN MARINE HARBOR & WORK VESSELS Projects include patrol boats, cleaning boats,

harbor tugs, small ferries, harbor maintenance craft

USES OF LPG IN MARINE ,

• Commercial Use of LPG: Fishing boats, life boats, small ships, short sea shipping, and longer range shipping.

RECREATIONAL BOATS: USA

http://www.nmma.net/assets/cabinets/Cabinet453/2012-US-Abstract-

Preview.pdf

http://www.uscgboating.org/assets/1/Page/1520b_USCG_RBS_NationalSurv

ey_Online_SinglePages.pdf

The propane industry also has an unprecedented opportunity to grow demand in the large marine market

OPPORTUNITIES TO SELL GALLONS INFRASTRUCTURE

Commercial

Intermodal

Dockside

Ship to Ship

Floating Depot

Marinas

Tank Exchange

Dockside Refueling

Small Tanker Ship Refueling

Boat Launches

Launch Site

Refueling

Tank Exchange

MARKET DEVELOPMENT IN MARINE

• The mission is to brand propane as a clean, in some cases domestic, and secure energy source

• Widespread consumer education campaign

• Active involvement in energy and environmental policy and regulatory processes

• Support manufacturers that are building, “GROWING THE INDUSTRY”

• Investment in new technologies and the new marine business model

LEHR PROPANE – TAKING ADVANTAGE OF THE

OEM MARKET OPPORTUNITY

Patented & Patent Pending Gaseous Fueled Engine Technology

LEHR PROPANE – TAKING ADVANTAGE OF THE

OEM MARKET OPPORTUNITY

Patented & Patent Pending Gaseous Fueled Engine Technology

Our partners In Colombia • BonGas has the expertise and infrastructure to do sale and after sales

service and support. • YURI NICOLAY VELEZ TRUJILLO CEO • COMVELMAR S.A. • Porque BonGAS Siempre Te Da Mas

DIVERSE USES OF LPG

Lawn & Garden, Power Generation, Pumps, Personal Propulsion

THANK YOU