PB PS Report RevA

TANKER PACIFIC MANAGEMENT (SINGAPORE) PTE LTD

Power Barge/Power Ship Projects – Feasibility Study

(New Building & Conversion)

Floating Power Plants

Document Number: TPM-ENGG-PB_PS_-GS-0001

Client Document Number: Pages: 49

A Issued for Review/Reference 13.02.2013 Dr. G. Sinha,

Tanker Pacific Cyril Ducau,

Quatum Pacific -

Rev Issue Status Issue Date Prepared By Checked By Approved By

This document should not be distributed, copied, quoted or reproduced in any manner whatsoever, in whole or in part, without the prior written consent.

Power Barge/Power Ship

DOCUMENT TITLE Power Barge/Power Ship - Feasibility Study (New Building & Conversion)

TPOT DOCUMENT NO. TPM-ENGG-PB_PS-GS-0001

CLIENT DOCUMENT NO. REV A DATE 13-02-13

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REVISION RECORD

Revision Section Page Description Of Changes





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TABLE OF CONTENTS

1 ABSTRACT ....................................................................................................................................................... 4 2 KEY TAKEaWAYS............................................................................................................................................. 4 3 INTERNAL STUDY & MEETINGS..................................................................................................................... 5 4 MAJOR PLAYERS............................................................................................................................................. 6 5 MARKET REPORT............................................................................................................................................ 6 6 DESCRIPTION OF POWER BARGE ................................................................................................................ 7 7 DESCRIPTION OF POWER SHIP..................................................................................................................... 7 8 LIST OF EPCIC, CONSULTANCY COMPANIES & SHIPYARDS ..................................................................... 8 9 FLOATING POWER PLANTS IN DEEP WATER............................................................................................. 10 10 NEW-BUILD POWER BARGE PROJECTS ............................................................................................... 11

10.1 126 MW Power Barge at Nantong Blue Island Offshore, China ............................................................. 11 10.2 125 MW Power Barge at ASRY Shipyard, Bahrain ................................................................................ 12 10.3 110 MW Power Barge at KIM HENG, SINGAPORE .............................................................................. 13

11 TRADE OFF BETWEEN CONVERSION FROM BULK CARRIER OR TANKER....................................... 14 12 POWER BARGE VS POWER SHIP........................................................................................................... 15 13 POWER SHIPS PROJECTS (CONVERSION)........................................................................................... 17

13.1 Already Constructed & in Operation....................................................................................................... 17 13.2 Under Construction................................................................................................................................ 20

14 PROPOSAL TO BUILD NEW 130 MW ~ 136 MW POWER BARGE / POWER SHIP................................ 22 14.1 MAN Diesel & Turbo SE Proposal (130 MW)......................................................................................... 22 14.2 Wartsila Proposal (133 MW) .................................................................................................................. 24 14.3 PROPOSAL FROM CHINESE SHIPYARD (130 MW ~ 142 MW).......................................................... 25

15 CAPEX FOR POWER BARGE (NEW-BUILD) & POWER SHIP (CONVERSION) ..................................... 27 16 REFERENCES .......................................................................................................................................... 29 17 APPENDIX-1: LIST OF POWER BARGES WORLDWIDE......................................................................... 30 18 APPENDIX-A: 130 MW Power Barge Layout (From MAn Diesel & Turbo)................................................. 31 19 APPENDIX-b: 133 MW Power Barge layout (From Wartsila) ..................................................................... 33 20 APPENDIX-C: 132 MW Power Barge GA (FRom CSTC/Nantong BI Offshore) ......................................... 37 21 APPENDIX-D: QUOTATION FROM MAN Diesel & Turbo ......................................................................... 39 22 APPENDIX E: QUOTATIONS FROM WARTSILA ..................................................................................... 44 23 APPENDIX-F: QUOTATIONS FROM CSTC.............................................................................................. 47





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1 ABSTRACT Floating power plants have been around for a long time since 1940, and the demand for these structures has increased for the last fifteen years or so because of desperate shortage of power mostly in developing countries such as Africa, Middle East and South East Asia due to expansion of economies and costly extension of existing land based power grids. Expected future power demands in Indonesia and Myanmar having large sources of natural gases also attract to build the floating power plants. This report on feasibility study considers to explore the floating structures generating power through burning fossil fuels and not using renewable energy concept (wave, wind, solar and nuclear) and the study focuses here mainly on Power Barge (or Barge Mounted Power Plant, BMPP) or Power Ship capable of generating electricity using crude oil, diesel or natural gas. The report covers the extensive investigation on the past, present and future floating power plant projects to understand the engineering challenges, capital expenditure, fabrication yard and the input requirement of the site of installation to finalize the project specification. Especially an effort has been put to investigate the trade off between Power Barge and Power Ship. The proposals and quotations on this are reviewed to estimate budgetary cost or capital expenditure of new Power Barge or Converted Power Ship project. From the study of detail industry reports and feedback from shipyard and expert consultants on these floating power plants, it is interesting to note that the new-build/purpose built Power Barge construction is found to be economically viable option than conversion from an existing Bulk Carrier or Tanker beside the engineering and constructional challenges during conversion exercise. However, risk analysis has to be carried out for any chosen option on fuel disruption and downtime. In addition to exploring available information in public domain, the outcome of preliminary technical discussions with leading power generating equipments manufacturer and power barge owners, MAN Diesel & Turbo SE, Wartsila; classification societies such as BV and ABS; consultancy company, NIKSAM are also taken into account to prepare this brief report. All the major points in this topic are discussed in various sections for more details.

2 KEY TAKEAWAYS From the research on past, existing and future projects on Power Barge/Power Ship, the following can be noted as the key points:

PPA and Clients contractual requirements including the location of installation, coastal/local authorities requirements, land based facilities (fuel source), water depth, metocean data, export voltage and frequency to the grid, years of operation, etc are to be studied carefully to choose between Power Barge and Power Ship and then to finalize the specification for yard to fabricate

It may also be advised to build the Power Barge first based on generic specification and then market to get contracts

Conversion of Ships (Bulker or Tanker) to Power Ships is an engineering and operational challenge as it needs to deal with great extent of structural modification, reinforcements to





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existing structure, perennial vibration and alignment problems, stability and ventilation issues and the vessel needs to be maintained under Class

Bulk Carrier seems to be better candidate vessel than Tanker for Power Ship Conversion Project as the tank bottom is relatively stronger than tanker and the heavy rotating equipments (Gensets) can be installed inside the cargo holds/tanks attainting better stability however, ventilation and maintenance pose a challenge

Conversion from Tanker to Power Ship is not carried out yet; however, FPSOs generally have the facility to generate electricity for own use and to export to shore by installing gensets on main deck (like Petrobras P-63 which has over 100 MW Wartsila power modules to generate electricity from treated well gas or crude as well as marine grade diesel

Power Ship conversion project is not common and until date only one Turkish Company (KARADENIZ Energy Group) involved in this providing Power Ships (Converted from ageing Bulk Carriers) in Sedef Shipyard, Turkey for installations mainly to Iraq and Pakistan. Choice of shipyards for conversion is limited

Shipyards and renowned consultant companies (Waller Marine and NIKSAM) have also recommended for Power Barge project

In contrast, Power Barge to be moored and operated in sheltered water is much more popular/common, easy and relatively cheaper to construct and easy to operate and maintain.

Building Power Barge is cheaper than converted Power Ship From the CAPEX Study, a new build about 130 MW Power Barge (equipped with MAN B&W

Dual Fuel Engines with Steam Turbines) will approximately cost 45 to 50 million USD whereas the expected conversion cost to Power Ship will be 49 to 55 million USD based on budgetary quotations from Chinese Shipyards.

3 INTERNAL STUDY & MEETINGS To this study, numerous meetings are held with the following:

1. BV 2. ABS 3. NIKSAM 4. MAN Diesel & Turbo 5. Wartsila

E-mail/Phone communications have taken place with the following shipyards:

1. Nantong Blue Island Offshore, China 2. Shipyards marketed by CSTC [China Shipbuilding Trading (Shanghai) Co., Ltd] 3. Labuan Shipyard, Malaysia 4. Sabah Shipyard, Malaysia 5. Laem Chabang, Thailand 6. Jurong Shipyard, Singapore 7. Keppel FELS, Singapore 8. DSME, Korea





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4 MAJOR PLAYERS There are numerous companies who own and operate Power Barges. The major players are the vendors of power equipments like Wartsila and MAN B&W. However, there are some other new companies also venturing in this field and most recently BRIGHT DAY Pte Ltd, a subsidiary of Brian Chang Holdings Limited is building a new 126 MW Power Barge in China. On Power Ship, Karadeniz Energy Group in Turkey is found to be the only company to be ventured in conversion projects to convert old freighters. The company has project entitled “Power of Friendship” for countries of the Middle East, Africa and Asia, aiming to fulfill the urgent electricity needs of all countries in the world with their Power ship fleet. Current Powership fleet capacity exceeds 750 MW; with the current vessels under construction the Fleet capacity is scheduled to surpass 2,000 MW or 2 GW before the end of 2013. Power ship fleet will be operating in 15 different countries in the Middle East, North Africa and South Asia.

5 MARKET REPORT The latest market report as received from Chinese Shipyard will be presented here briefly. More than 60 floating power stations are in operation around the world, deploying some 4 GW at continental shores where electricity is most needed. Though these feature a variety of power sources (including nuclear, gas and heavy fuels), most are power barges – they do not have their own propulsion systems and would have to be towed to desired locations. Some are of extraordinary size or feature novel designs. The largest of these, for example, is a 200 MW unit at Mangalore, southwest India, according to Waller Marine, Inc., the project's designer. The maritime services provider is also currently carrying out design work on an even larger project, a 520 MW combined-cycle facility that will provide power to New York City. And at the same time, it is working on a modularized floating integrated gasification combined-cycle power plant, which would be fueled by petcoke. More recent examples include the two revolutionary mobile power stations developed separately by companies in Russia and Germany: Russian investment management company United Industrial Corp.'s (Russian acronym OPK) floating nuclear power station and RWE Power's pilot combined-cycle gas turbine power barge. Both of these projects are expected to be set afloat within the next two years. About 450 feet long, OPK's floating nuclear power station is expected to have a total capacity of 70 MW. It will be located in the north of the Russian Federation, where key energy supplies are lacking, OPK said. The reactors' thermal energy can be sent up to 180 miles away. The plant's design lifespan is 40 years, with refueling evey two to three years. the project is said to have a 12-year payback. RWE Power's power barge will feature a combined-cycle gas turbine power station erected on floating pontoons. When deployed, the 98-foot by 328-foot units would be anchored and connected to the gas or electricity grid, providing electricity to shortage-stricken countries on the eastern Mediterranean and on the Black Sea.





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Last October, meanwhile, German company MAN Diesel announced a new direction in floating power plants, saying it had signed a contract with Turkish company Karadeniz Powership Co. Ltd. for the supply up to 24 large-bore power-generation diesel engines that would be installed on four Power Ships converted from freighters. The contract, which MAN says is worth over €100 million, includes 21 type-18V51/60DF dual-fuel engines and three 14V48/60 HFO engines, with a total output of 400 MW. The Power Ships will be connected to local power grids to temporarily cover demand whenever onsite power plants which cannot be built quickly enough. Unlike so-called "Power Barges", the "Power Ships" will be equipped with their own propulsion engines and therefore will not need to be towed. They are expected to be used in Africa, Pakistan, regions in the Middle East, and around the Mediterranean.

6 DESCRIPTION OF POWER BARGE The Power Barge or Barge Mounted Power Plant, BMPP is constructed by installing the heavy rotating power generating equipments (diesel engines or gas turbines running on HFO, MDO and Natural Gas) on main deck as this is the integration of two main braches of engineering, marine (hull construction to replace land) and electrical (power generation). The single Power Barge may have as high as 200 MW capacities, which was installed in Mangalore, India. Power Barges are generally operated near coastal sheltered areas subjected to benign weather which does not pose challenges on controlling the vessel motion, deflection of deck machinery interface for proper functioning of alternators. Power Barge needs moorings (vertical piles, anchors) which allow movement vertically with the tides, river levels or storm surges, without any rotational motion. The overall design and construction process are reviewed and surveyed by third party organizations, the international Classification Societies, such as ABS, BV and others, that not only ensure engineering compliance with Class Rules, but also compliance with international protocols concerning pollution and emissions. In addition to this local administration/coastal authorities requirements are also to be complied with. The power plant can have option not to class and then it needs to be certified by consultancy wing of class societies. ABS provides +A1, Barge (unrestricted service for international transit) or +A1, Barge, Harbour, River Service

7 DESCRIPTION OF POWER SHIP Power Ship is the special purpose vessel/ship where power plants are installed either on cargo holds or main deck and is having its own propulsion system with or without the option of storing fuels for power generation. Generally Power Ship has been built by converting bulk carriers because of certain obvious advantages on strength and stability over tankers. The gensets are generally installed in cargo holds bottom for bulk carriers where for tankers are on main deck. Although, not a floating power plant or Power Ship is converted from Tanker until today, but various FPSOs converted from Tanker have onboard power plants like recently delivered Petrobras Papa Terra P-63 has over 100 MW power generations capacity through three topside power modules, each one equipped with Wartsila two 18V50DF tri-fuel engines (treated





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well gas, treated crude and MDO), alternators and other ancillary equipments. Heavy reinforcements on deck beside topside stools installations are expected for this installation. Power Ships are generally to be installed far from the shore as the normal operating depth of the vessel is much higher than the Power Barge. A Typical GA layout of Power Ship from Bulk Carrier has been prepared which can be presented as follows:

For conversion from Tanker, the diesel engines are to be installed as top side modules, which are similar to FPSO process modules installation. Advantages and Disadvantages for this conversion project from Bulk Carrier or Tanker are discussed later in details.

8 LIST OF EPCIC, CONSULTANCY COMPANIES & SHIPYARDS There are several generator manufacturing vendors who build, own and operate gas turbine & diesel driven power barges. Beside these, there are shipyards and consultancy companies who are involved in EPCIC of power barges. On Power Ship, probably only Turkish Karadeniz Energy Group is the major company who converted bulk carriers into Power ships in Tuzla and other shipyards. List of generator vendors, EPCIC & Consultancy companies are:

1. Wartsila, Singapore 2. MAN B & W, Singapore 3. Waller Marine, USA 4. NIKSAM, Singapore 5. Navtek Marine Technology Inc., Tuzla, Istanbul, Turkey





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List of Shipyards for building Power Barges: 1. Labuan Shipyard, Malaysia 2. Sabah Shipyard, Malaysia 3. Laem Chabang, Thailand 4. Jurong Shipyard, Singapore 5. Keppel FELS, Singapore 6. DSME, Korea 7. Nantong Blue Island Offshore, China (http://en.bioffshore.com/) 8. Jinhai Heavy Industry Shipyard, China (http://www.jhzgchina.com/en/index1.asp)

List of Shipyards for Conversion to Power Ship:

1. Tuzla Shipyard, Turkey (already have project experience) 2. Sedef Shipyard, Turkey (already have project experience) 3. Huarun Dadong Shipyard (Not yet experienced on Power Ship Conversion Project) 4. Chengxi Shipyard, China (Not yet experienced on Power Ship Conversion Project)

List of Classification Societies for Power Barge/Power Ship:

1. BV (Karadeniz Energy Group’s Power Ships are classed with BV) 2. ABS (many power barges are classed with ABS)





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9 FLOATING POWER PLANTS IN DEEP WATER The generation of power offshore and the transmission of that electrical energy from the offshore generation plant to the domestic power grid is also the topic on which feasibility and research work going on. This Option satisfies the conservation requirements, and may provide a viable economic alternative to pipelines, liquefaction or compression technologies or installation of capital expensive FLNG structure. The concept is illustrated below; however, FPSO itself can also be designed as FPP:

The technical challenges can be categorized mainly in four areas:

Submarine cable technology The conceptual layout of floating ship shaped power plant (Power Ship) is presented below:

Generation plant size and configuration Electric power transfer systems

Gas delivery from production unit to the generation plant





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10 NEW-BUILD POWER BARGE PROJECTS

10.1 126 MW POWER BARGE AT NANTONG BLUE ISLAND OFFSHORE, CHINA Bright Day Pte Ltd (“Bright Day”) signed a contract with Nantong Blue Island Offshore Co., Ltd (“Blue Island”) in July 2012 to build two 126 MW power barges powered by two (2) Siemens Westinghouse 701 DU gas Turbines purchased earlier, which shall be shipped from Turbocare (Siemens) in Italy to Blue Island’s facilities in Qidong, China. Bright Day is a subsidiary of Brian Chang Holdings Limited. The barges are scheduled to be commissioned and delivered this year. The main features are furnished below:





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10.2 125 MW POWER BARGE AT ASRY SHIPYARD, BAHRAIN The Bahrain-based Arab Shipbuilding & Repair Yard (ASRY) and UK based Centrax Limited have formed the JV company, ASRY-CENTRAX Ltd in year 2011 to build two cutting edge multi-application purpose built power barges to be equipped with twin Rolls-Royce Trent 60 aero derivative gas turbine-powered generator sets. The 82 m long TPB125 Power Barge is 28 m wide, 6 m deep and having an operational draft of just 4.5 m, which will allow for easy deployment of the unit close to the shore line with minimal coastal resources. The vessel’s double skin fuel and oil tanks, low emissions and low noise (80dBA at 1m) also ensure the highest environmental standards. Salient Features of the Power Barge:

high efficiency Rolls-Royce turbines 0 to 100% load in less than 15 minutes Island and parallel operations 50 and 60 Hz compatible Multi-Fuel Two unit flexibility ABS classification CE and PED certified.

At approximately $1m per MW, the Power Barge will not come cheap, but financiers will look favorably upon any non-fixed location asset which can be moved quickly at the first hint of political unrest in any host nation.





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10.3 110 MW POWER BARGE AT KIM HENG, SINGAPORE Karadeniz built barge mounted power platform in 2010 to join the existing power ship, KAYA BEY to generate the power output of 232 MW (requirement 300 MW) of total power capacity requirement of 330 MW in Karachi, Pakistan. The barge is producing electricity since 2011. The barge mounted power platform is understood to be the assembly of second hand purchase gas turbines from China into a second hand dumb barge. From the feedback of consultant, it is to be noted that as not adequate pre-purchase engineering was carried out, it seems was not a successful project. The actual photos of the barge are presented below:





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11 TRADE OFF BETWEEN CONVERSION FROM BULK CARRIER OR TANKER Ship Type Advantage Disadvantage Bulk Carrier Generators are generally placed on the tank

tops inside the hold as these are usually stronger than tanker structures. The conversion is believed to be easier and quicker. Need very little reinforcements on the existing structure, thereby expected steel renewal is less. As there will be less HFO volume and watertight bulkheads are removed, the operating draft is expected to be lesser than tanker, and hence come closer to shore line/coastal line to connect to grid. The market value of an existing bulk carrier of same size and year of built will be generally less expensive than a tanker.

As the cargo holds are closed, heating, ventilation and maintenance are the key concerns Lots of penetrations through cargo hatches Very little fuel storage onboard and full dependency on land supply (HFO). The water tight bulkheads are to be cut inside the cargo holds, the time and cost of modification/construction is expected to be more than tanker in this respect.

Tanker The cargo holds can be used as HFO storage tanks; need less support from the onshore fuel supply except if it is on Natural Gas. Very little modification is expected within cargo holds.

Generators are generally placed on the main decks. Generally require top sides or stools to support the heavy rotating equipments. Need more reinforcements on upper deck supporting members; thereby expected steel renewal is more. As the equipments are located on main deck, the CG of the vessel is relatively higher than bulk carrier, which may pose some issue on stability of the vessel. The area of winterization or protection of equipments on deck is more, thereby escalating cost of conversion. Need to address the vibration and alignment issues. The market value of an existing bulk carrier of same size and year of built will be generally less expensive than a tanker.

All the Powerships of Karadeniz Group currently operating and under conversion are the converted bulk carriers. Except some Oil FPSOs and new design concept, tankers are not chosen as the candidate vessel for conversion to powerships. A typical tanker and bulk carrier (DWT below 50,000, built around 1996) are chosen to find tentative cost and time line for the conversion to powership. Once the quote is received from yard, we can get an idea on this. The cost of tanker is around 2 million USD more than that of bulk carrier. However, at this stage, it can be concluded that the bulk carrier can be a better candidate than tanker.





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12 POWER BARGE VS POWER SHIP From the communication with shipyard (Nantong BI, China) and consultancy company (Waller Marine, USA; NIKSAM, Singapore), it is advised that the new-build Power Barge will be a simpler and cost effective solution than Power Ship as until date only one company has ventured into the power ship conversion project. Salient advantages and disadvantages are presented below: Ship Type Advantage Disadvantage Power Barge New purpose build and arrangement can be

customized to optimize the principal dimensions of the barge No additional reinforcements is necessary Major under deck reinforcements for heavy equipments installation, vibration, alignment and stability issues are solved in basic design stage Faster deliveries and higher quality construction resulting in an increased availability and reliability. Highly modularized with extensive pre-outfitting and testing reduces on site commissioning risks The operating draft (around 4.5 m) is substantially less than Ship (around 8.0 m) and hence can be installed at any costal areas without dredging No additional power cables extension and voltage step up Mooring arrangements are simple and relatively cheaper (anchor vertical piles or spread moored) as the unit is to be operated in sheltered water Can be purchased on a turnkey basis or leased with O&M options Capable of pre-designed modification from fast track simple cycle operation to combined cycle mode with minimal operational impact Easily transported (dry tow) between sites creating flexibility to demand growth and location

No propulsion is there; and hence, need a capital investment for dry tow by heavy lift vessel during first installation and re-deployment Tug assistance shall be required to move the unit from stormy weather Generally no onboard accommodation is provided. Fuel storage dependence either from land supply or from other floating source Winterization for protection of equipments Generally no accommodation is provided





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Power Ship As propulsion system is there, the unit is highly mobile. No dry or wet tow is needed (if propulsion unit is active and under class) for the first installation or re-deployment Unit can be moved into a different zone at short notice

Extensive Modification required as the main deck or the cargo hold tank top is not initially designed to support heavy equipments (engines). Lots of equipments and their pipelines are not needed and these either to be removed or to be maintained under class. Such as Main Engine will not run for long period and hence, regular maintenance can be a challenge and the vessel must follow SOLAS requirements. Crew Accommodation and Propulsion System are under utilized during the plant operational period which is generally the design life of the power plant. Class may require minimum crew requirement which will add to OPEX Life extension of the vessel is difficult and expensive The operating draft (around 8.0 m) is substantially higher than barge and hence installation will be generally far from coastal areas Need additional power cables extension and voltage step up Vibration, Alignment and stability will be issues which need to be solved. Mooring requirements are much more than those for a barge unit because the unit will be placed away from shore/sheltered location. Limited shipyards with this type of conversion experience.





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13 POWER SHIPS PROJECTS (CONVERSION) The project “Power of Friendship” was developed and conducted by the Karadeniz Energy Group for countries of the Middle East, Africa and Asia, aiming to fulfill the urgent electricity needs of all countries through rental contracts or power purchase agreements (PPA). Power ship capacities range from 45-500 MW and are delivered between 60-180 days to provide medium-term solutions with contracts of 2 to 5 years. Power ships are constructed with special technology which can operate both on liquid fuels (HFO/RFO) as well as natural gas with a dual fuel option. With high efficiency and availability, Power ships can provide uninterrupted electricity at various high voltage levels. Karadeniz Holdings has been a long-term energy partner for Iraq, supplying the war-ravaged country with electricity via two power plants in Turkey's southeast since 2003.

13.1 ALREADY CONSTRUCTED & IN OPERATION

1. Karadeniz Powership Doğan Bey – (144 MW) Converted in Sedef Shipyard, Turkey, the Karadeniz Powership Doğan Bey was the first Power Ship of the fleet capable of producing 144 MW. She has been converted from 1984 built 41535 MT Bulk Carrier supplying electricity since May 2010 to Umm Qasr port and surplus into Basra's power grid, Iraq.

Before Conversion Photo After Conversion Photo Salient Particulars:

Gross tonnage 24729 tons

Type of ship BULK CARRIER

L x B x D (m) 188.14 x 31.00 x 15.20

DWT 41535 tons

Year of build 1984

Builder MITSUI ICHIHARA ENGINEERING & SHIPBUILDING - ICHIHARA, JAPAN

Class society BUREAU VERITAS

Manager & owner KARMARINE KARADENIZ DENIZCILIK - ISTANBUL, TURKEY

Deployed in Iraq





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2. Karadeniz Powership Rauf Bey – (200 MW) Converted in Sedef Shipyard, Turkey, the Karadeniz Powership Rauf Bey having 200 MW capacity joined the Power Ship fleet in 2010. She has been converted from 1982 built 41535 MT Bulk Carrier supplying electricity since May 2010 to Umm Qasr port and surplus into Basra's power grid, Iraq. Before Conversion Photo After Conversion Photo Salient Particulars:

Type of ship BULK CARRIER

Gross tonnage 41449 tons

Length x Breadth 242 m x 32.0 m

DWT 75485 tons

Year of build 1982

Builder VEROLME ESTALEIROS REUNIDOS DO BRASIL - ANGRA DOS REIS, BRAZIL

Class society BV

Manager & owner KARMARINE KARADENIZ DENIZCILIK - ISTANBUL, TURKEY

Deployed in Iraq





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3. Karadeniz Powership Kaya Bey – (220 MW) Built in Turkey, the Karadeniz Powership Kaya Bey is the world’s largest Powership at 220 MW of capacity. Kaya Bey has been supplying electricity since 2011.

4. Karadeniz Powership Irem Sultan – (110 MW) Built in Turkey, the Karadeniz Powership Irem Sultan, with a capacity of 110 MW, has been supplying electricity since January 2012.

5. Karadeniz Powership Enis Bey It is the first tanker support ship to join the Karadeniz Powership project. It is used for fuel supply to the Powership project with its storage and carriage volume of 7,000 tons.





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13.2 UNDER CONSTRUCTION

1. Karadeniz Powership Fatmagül Sultan (175 MW) Dimensions: LOA 135 m, W 42 m Class: ORCA Completion Date: 2012 Fuel Type: HFO, NG Technology: 9 x MAN 18 V 51/60 DF Medium Speed Engines + Steam Turbine

2. Karadeniz Powership Ayşegül Sultan (175 MW)

Dimensions: LOA 135 m, W 42 m Class: ORCA Completion Date: 2012 Fuel Type: HFO, NG Technology: 9 x MAN 18 V 51/60 DF Medium Speed Engines + Steam Turbine

3. Karadeniz Powership Zeynep Sultan (115 MW)

Dimensions: LOA 150 m, W 31 m Class: SHARK Completion Date: 2012 Fuel Type: HFO, NG Technology: 6 x MAN 18 V 51/60 DF Medium Speed Engines + Steam Turbine

4. Karadeniz Powership Nuray Sultan (115 MW)

Dimensions: LOA 100 m, W 31 m Class: DOLPHIN Completion Date: 2013 Fuel Type: HFO, NG Technology: 6 x MAN 18 V 51/60 DF Medium Speed Engines + Steam Turbine

5. Karadeniz Powership Orhan Bey (175 MW)

Dimensions: LOA 135 m, W 42 m Class: ORCA Completion Date: 2013 Fuel Type: HFO, NG Technology: 9 x MAN 18 V 51/60 DF Medium Speed Engines + Steam Turbine

Some Photos of Vessels under Conversion (Courtesy: Karadeniz Holding) are presented below:





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14 PROPOSAL TO BUILD NEW 130 MW ~ 136 MW POWER BARGE / POWER SHIP We have meetings with MAN B&W and Wartsila, the major diesel engine manufacturers and owners of several power barges. Based on our request, they have provided the budgatory quotes for supplying the equipments and services. We had also communications with Nantong Blue Island Offshore yard for building specifications and budgetary quote. This has been also discussed in the sub-sections.

14.1 MAN DIESEL & TURBO SE PROPOSAL (130 MW) MAN Diesel & Turbo SE proposed to supply 8 units of 18V51/60DF MAN B&W dual fuel (HFO, NG) Gensets ((17.55 MW unit capacity) with radiator cooling configuration for 130MW power generation and the tentative delivery time is about 12 months. The major technical information is presented below and the tentative layout of the new barge is shown in Fig.A





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Fig.A Plan & Profile of 130 MW Power Barge The detail GA of the barge is presented in APPENDIX-A.





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14.2 WARTSILA PROPOSAL (133 MW) Wartsila proposed to supply 8 units of 18V50DF dual fuel (LFO, HFO & NG) Gensets (17.1 MW unit capacity) with radiator cooling configuration for 133 MW power generation and and the tentative delivery time is about 12 months. The major technical information is presented below and the typical layout of the new barge with only six (6) units is shown in Fig.B.





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Fig.B Plan & Sectional Views of Power Barge (with 6 Units) The detail GA of the barge is presented in APPENDIX-B. It is to note that as the layout proposed with six (6) units, to add two (2) more diesel engines, the barge length needs to be expanded by atleast 12 m; Hence, the approximate barge dimensions (L x B x D) shall be 99 m x 32 m x 6 m.

14.3 PROPOSAL FROM CHINESE SHIPYARD (130 MW ~ 142 MW) CSTC (China Shipbuilding Trading (Shanghai) Co., Ltd.), the subsidiary company of CSSC (China State Shipbuilding Corporation) has sent us proposals for building Power Barge in ALSEN Maritime or Nantong Blue Island Offshore Shipyard, China. The basic design will be supported by the Waller Marine, USA and the detailed production design will be carried out by ALSEN Maritime, China. Nantong Blue Island Offshore Shipyard, China is currently building two ABS Classed 126 MW Power Barges for Bright day Pte Ltd., Singapore. The brief project details are already presented earlier. CSTC has provided us Outline Specifications, GA and preliminary Maker List for Power Barges with dual fuel engines from two major makers, mainly MAN B&W and Wartsila. The new-building can be carried out in Nantong Blue Island Offshore Shipyard or Jinhai Heavy Industry Shipyard, China whereas the conversion project can be done at Huarun Dadong Shipyard (http://www.hrdd.com.cn/en/english.html) and Chengxi Shipyard (http://chengxi.cssc.net.cn/cms_chengxi_en/).





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The specifications/main particulars of the engines and power capacity of barges are furnished below: MAN 18V51/60DF 60HZ 50HZ Engine output power: 18 MW @ 514 RPM 17.55 MW @ 500 RPM Generator output power: 17.586 MW @ 514 RPM, 60Hz 17.146 MW @ 500 RPM, 50Hz 7 Engines, total power: 126 MW 122.85 MW 7 Generators, actual output power: 123.102 MW 120 MW STEAM TURBINE Power output power by using 7 x MAN 18V51/60DF Engines is about 10 MW. Hence, total actual delivery Power Output for 7 x MAN 18V51/60DF Engines + Steam Turbine is about 133MW at 60Hz or 130MW at 50Hz. WARTSILA 18V50DF 60HZ 50HZ Engine output power: 17.55 MW @ 514 RPM 17.1 MW @ 500 RPM Generator output power: 16.94 MW @ 514 RPM, 60Hz 16.5 MW @ 500 RPM, 50Hz 8 Engines, total power: 140.4 MW 136.8 MW 8 Generators, actual output power: 135.52 MW 132 MW STEAM TURBINE Power output by using 8 x WARTSILA 18V50DF Engines is about 12 MW. Hence, total actual delivery Power Output for 8 x WARTSILA 18V50DF Engines + Steam Turbine is about 147 MW at 60Hz or 144 MW at 50Hz. Radiator cooling option is provided for both the options. The specification has been reviewed and initial comments are sent to yard for response. The Principal dimensions of the barge are as follows: Length O. A. 98.80 M; Breadth MLD 34.00 M; Depth MLD 6.00 M; Draft 3.50 M; Displacement 11500 MT Initial GA with eight engines received from shipyard is presented in APPENDIX-C. The profile and side views are presented here for quick reference:





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15 CAPEX FOR POWER BARGE (NEW-BUILD) & POWER SHIP (CONVERSION) The formal budgetary quotations are received from MAN B & W and WARTSILA for power generating equipments, where as for the complete power barge/power ship is received from CSTC. The quotations are presented in APPENDIX-D to APPENDIX-F, which can be summarized as follows: A) 130 MW Power Barge with 7 x MAN 18V51/60DF @50 Hz Deliverables Details Maker Proposed Cost (USD) 7 x MAN 18V51/60DF Engines + Steam Turbine

MAN 35 Million

Barge (Hull) Shipyard 5 Million Outfitting, other equipments, and Installation

Shipyard 5 to 10 Million

Total Cost 45 ~ 50 Million B) 142 MW Power Barge with 8 x WARTSILA 18V50D @50 Hz Deliverables Details Maker Proposed Cost (USD) 8 x WARTSILA 18V50D + Steam Turbine

WARTSILA 42 Million

Barge (Hull) Shipyard 5 Million Outfitting, other equipments, and Installation


Total Cost 52 ~ 57 Million Delivery time for Power Generating Equipments = 12 months (approx) Building of New Power Barge = 6 months (approx) Installation, Test & Commissioning of Power Generating Equipments = 3 months (approx) Hence, Delivery time of Power Barge from Placement of Order = 12 + 3 months (approx) = 15 months





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C) 130 MW Power Ship with 7 x MAN 18V51/60DF @50 Hz Deliverables Details Maker Proposed Cost (USD) 7 x MAN 18V51/60DF Engines + Steam Turbine

MAN 35 Million

Existing Handymax Bulk Carrier* Open Market 7 Million Cost of Conversion Shipyard 2-3 Million Outfitting, other equipments, and Installation


Total Cost 49 ~ 55 Million * 1995 Built 46,641 DWT Bulk Carrier (Sold for USD 7 M to Greek Owner) Delivery time for Power Generating Equipments = 12 months (approx) Conversion Time = 6 months (approx) Installation, Test & Commissioning of Power Generating Equipments = 3 months (approx) Hence, Delivery time of Power Ship from Placement of Order = 12 + 3 months (approx) = 15 months D) PROPOSAL: MAN Diesel & Turbo FOR 130 MW POWER GENERATING EQUIPMENTS MAN Diesel & Turbo SE has proposed to supply eight (8) units of 18V51/60DF Gensets for130 MW total power output, which is based on MAN standard supply of power equipments for power barge/power ship. With dual fuel features, it allows burning options of various energy source alternatives such as HFO, diesel and natural gas. The detail proposal and budgetary cost are presented in APPENDIX-D. The total cost = Euro (57.7 + 6.2) Million = Euro 63.5 Million = USD 85.6 Million (1 Euro = 1.35 USD) The proportional total cost of seven (7) units = USD 75 Million (Much more than Shipyard Quote) Delivery Time = 10 to 12 months E) PROPOSAL: WARTSILA FOR 133 MW POWER GENERATING EQUIPMENTS Wartsila Singapore has proposed to supply eight (8) units of 18V50DF Gensets (same engine type was supplied to Petrobras P-63 Project) & building structures to be installed on Power Barge for133 MW total power output. With dual fuel features, it allows burning options of various energy source alternatives such as HFO, LFO and natural gas. The proposal and budgetary cost are presented in APPENDIX-E. The total cost = Euro 74.7 Million = USD 100.9 Million (1 Euro = 1.35 USD) (Much more than Shipyard Quote) Delivery Time = 12 months Based on this, it is observed that the new-build Power Barge Proposal from Chinese Shipyard is cheaper (and simpler) option with no impact on delivery schedule.





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16 REFERENCES Offshore Power Generation Using Natural Gas from Remote Deepwater Developments, OTC 14289, 2002 http://www.maritimejournal.com/news101/new-jv-launches-floating-power-stations www.centraxind.com/~centraxg/.../275-Asry_Barge_Brochure.pdf http://www.karadenizenergy.com/ www.grosstonnage.com http://www.navtek.net http://www.powerbargecorp.com/worldwide.html Budgetary Quotations from Wartsila, MAN B&W, and CSTC





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17 APPENDIX-1: LIST OF POWER BARGES WORLDWIDE Based on data available in Power Barge Corporation’s website (http://www.powerbargecorp.com/worldwide.html), the list is as follows: Diesel Power Barges:

MAN B&W Power Barges (6 power barges): 124 MW MAN B&W medium speed diesels 70 MW MAN B&W medium speed diesels 60 MW MAN B&W medium speed diesels 40 MW MAN B&W medium speed diesels 100 MW B&W slow speed diesels 100 MW B&W slow speed diesels

Wartsila Power Barges (16 power barges):

149 MW Wartsila medium speed diesels 120 MW Wartsila medium speed diesels 72 MW Wartsila medium speed diesels 72 MW Wartsila medium speed diesels 66 MW Wartsila medium speed diesels 57 MW Wartsila medium speed diesels 55 MW Wartsila medium speed diesels 55 MW Wartsila medium speed diesels 55 MW Wartsila medium speed diesels 55 MW Wartsila medium speed diesels 52 MW Wartsila medium speed diesels 40 MW Wartsila medium speed diesels 36 MW Wartsila medium speed diesels 36 MW Wartsila medium speed diesels 30 MW Wartsila medium speed diesels 9 MW Wartsila medium speed diesels

Gas Turbine Power Barges: General Electric Power Barges (25 power barges):

800 MW 32X8 General Electric Frame 5 simple cycle gas turbines 290 MW 9X9 General Electric Frame 6B simple cycle gas turbines 220 MW 4X1 General Electric LM6000 combined cycle gas turbines 185 MW 1X2 General Electric Frame 7 combined cycle gas turbines 70 MW 2X2 General Electric Frame 6 simple cycle gas turbines 56 MW 2X1 General Electric LM5000 simple cycle gas turbines 56 MW 2X1 General Electric LM5000 simple cycle gas turbines 40 MW 2X1 General Electric LM2500 simple cycle gas turbines

Siemens Westinghouse Power Barges (6 power barges):

123 MW 2X1 Siemens Westinghouse V64A simple cycle gas turbines 115 MW 1X1Westinghouse 501D5A simple cycle gas turbine 105 MW 1X1Westinghouse 501D5 simple cycle gas turbine 98 MW 2X1 Westinghouse 251 simple cycle gas turbines 98 MW 2X1 Westinghouse 251B12 simple cycle gas turbines 48 MW 1X1Westinghouse 251 simple cycle gas turbine

Miscellaneous Power Barges:

52 MW Caterpillar high speed diesel engines 52 MW Caterpillar high speed diesel engines 88 MW 4X1 Pratt Whitney FT 4simple cycle gas turbines 150 MW 2X2 thermal power 20 MW nuclear power barge





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18 APPENDIX-A: 130 MW POWER BARGE LAYOUT (FROM MAN DIESEL & TURBO)





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19 APPENDIX-B: 133 MW POWER BARGE LAYOUT (FROM WARTSILA)

Layout Plan +0.00





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Layout Plan +24.00





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Layout Plan +24.00





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Section View A-A





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20 APPENDIX-C: 132 MW POWER BARGE GA (FROM CSTC/NANTONG BI OFFSHORE)





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21 APPENDIX-D: QUOTATION FROM MAN DIESEL & TURBO





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22 APPENDIX E: QUOTATIONS FROM WARTSILA





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23 APPENDIX-F: QUOTATIONS FROM CSTC





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Documents

PB PS Report RevA