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RationaleRationale 11 May 2008May 2008
Cofinanced byCofinanced by
May 2008May 2008 RationaleRationale Slide 2
baltic energy forum
The project MAGALOGThe project MAGALOGMarine Gas Fuel LogisticsMarine Gas Fuel Logistics
Liquified Natural Gas (LNG) as a fuel for Liquified Natural Gas (LNG) as a fuel for shipsships
Establishment of LNG supply chainsEstablishment of LNG supply chains
in the Baltic Sea Regionin the Baltic Sea Region
May 2008May 2008 RationaleRationale Slide 3
baltic energy forum
The Core Problem in Port The Core Problem in Port CitiesCities
Welcome to
The Port
of Xxxxxxxxx
May 2008May 2008 RationaleRationale Slide 4
baltic energy forum
Air pollution from Air pollution from shipsships
in in CitiesCities of the of the Baltic Sea Baltic Sea RegionRegion(and others)(and others)
May 2008May 2008 RationaleRationale Slide 5
baltic energy forum
SOSO22-Emissions 80-95% from ships-Emissions 80-95% from ships%
Railway0%
Heating Systems
4% Trucks and cars1%
Ships95%
Public Transport
0%
Total 417 t/a
May 2008May 2008 RationaleRationale Slide 6
baltic energy forum
NONOxx-Emissions up to 80% from -Emissions up to 80% from shipsships
%
Railway3%
Heating Systems
4%
Trucks and cars14%
Ships78%
Public Transport
1%
Total 694 t/a
May 2008May 2008 RationaleRationale Slide 7
baltic energy forum
Growing ships´ emissions in the Growing ships´ emissions in the EUEU
Source: European CommissionSource: European Commission• land-based sources of air emissions are largely abatedland-based sources of air emissions are largely abated
• but ship emissions are growingbut ship emissions are growing
May 2008May 2008 RationaleRationale Slide 8
baltic energy forum
Project ObjectivesProject Objectives
• A pan-Baltic Sea European projectA pan-Baltic Sea European project• To overcome the air pollution problemTo overcome the air pollution problem• To develop supply chains for alternative To develop supply chains for alternative
fuelsfuels• To secure fuel supplyTo secure fuel supply• To further the image of environmentally To further the image of environmentally
engaged cities, ports, ship ownersengaged cities, ports, ship owners
May 2008May 2008 RationaleRationale Slide 9
baltic energy forum
2 LNG-operated offshore supply 2 LNG-operated offshore supply vessels already in service in vessels already in service in
NorwayNorway
May 2008May 2008 RationaleRationale Slide 10
baltic energy forum
New LNG ferry design - Norway New LNG ferry design - Norway 20062006
May 2008May 2008 RationaleRationale Slide 11
baltic energy forum
6 LNG powered ferries6 LNG powered ferriesin operation in Norway (2007)in operation in Norway (2007)
May 2008May 2008 RationaleRationale Slide 12
baltic energy forum
Win-win situationWin-win situation
•Economic Economic benefitsbenefits
•Ecologic Ecologic benefitsbenefits
May 2008May 2008 RationaleRationale Slide 13
baltic energy forum
Economic benefits of LNGEconomic benefits of LNG
• Lower prices for LNG than for MDOLower prices for LNG than for MDO• Harbour dues reduction in Sweden because of good Harbour dues reduction in Sweden because of good
environmental performanceenvironmental performance• Selling of NOSelling of NOxx at a Norwegian exchange at a Norwegian exchange• Compliance with Marpol Annex VICompliance with Marpol Annex VI• Compliance with the European sulphur fuel directiveCompliance with the European sulphur fuel directive• Supply security (Gas from Norway)Supply security (Gas from Norway)• No investments for particle filters requiredNo investments for particle filters required• No investments for catalizers or washing technology No investments for catalizers or washing technology
requiredrequired• Future participation in COFuture participation in CO22 sales (Kyoto mechanism) sales (Kyoto mechanism)
May 2008May 2008 RationaleRationale Slide 14
baltic energy forum
ecologic benefits of LNGecologic benefits of LNG
• 100% less of sulphur dioxides100% less of sulphur dioxides
• 100% less particles100% less particles
• 80% less carbon hydroxides80% less carbon hydroxides
• 70% less nitrogen oxides70% less nitrogen oxides
• 50% less carbon monoxides50% less carbon monoxides
• 25% less carbon dioxides25% less carbon dioxides
May 2008May 2008 RationaleRationale Slide 15
baltic energy forum
The benefits of project The benefits of project participationparticipation
• Exploration of a new fuel at an early stageExploration of a new fuel at an early stage
• Environmental marketingEnvironmental marketing
• Taking part in the definition of European Taking part in the definition of European policiespolicies
• Prestigious collaboration in a European Prestigious collaboration in a European projectproject
• International and national PRInternational and national PR
May 2008May 2008 RationaleRationale Slide 16
baltic energy forum
Activities under the IEE Activities under the IEE programmeprogramme
• Supply chain and market structures for Supply chain and market structures for alternative fuels requiring separate supply alternative fuels requiring separate supply chainschains
• Market demand for alternatively propelled Market demand for alternatively propelled vehiclesvehicles
• Accompanying measuresAccompanying measures
May 2008May 2008 RationaleRationale Slide 17
baltic energy forum
LNG LNG
Gas Reserve
Gas Production& Liquefaction
Facilities(Exploration)
LNG-FeederLNG Import &
ReceptionTerminals
Exporter Importer
LNG Fuel Supply ChainLNG Fuel Supply Chain
Ro-Ro-Ship
May 2008May 2008 RationaleRationale Slide 18
baltic energy forum
ParticipantsParticipants
1.1. Gasnor ASGasnor AS NorwayNorway LNG SupplierLNG Supplier Project Project CoordinatorCoordinator
22 Baltic Energy Baltic Energy Forum e.V.Forum e.V.
GermanGermanyy
IEE Energy IEE Energy AgencyAgency
Assistant Project Assistant Project CoordinatorCoordinator
33 MARINTEK ASMARINTEK AS NorwayNorway Scientific Scientific OrganizationOrganization
Scientific Scientific CounsellingCounselling
44 Hordaland Oil Hordaland Oil and Gasand Gas
NorwayNorway Regional Lobby Regional Lobby OrganizationOrganization
AdvisorAdvisor
55 Stadtwerke Stadtwerke Lübeck GmbHLübeck GmbH
GermanGermanyy
Power and Power and Water Uitility of Water Uitility of LübeckLübeck
Pilot Project in Pilot Project in LübeckLübeck
66 Municipality of Municipality of SwinoujscieSwinoujscie
PolandPoland Port cityPort city ObserverObserver
May 2008May 2008 RationaleRationale Slide 19
baltic energy forum
StrategicObjectives
Workpackages expectedResults
Establishment of LNG supply
chains
Establishment of LNG supply
chains
Project LogicProject LogicDetailedObjectives
Reduction of ship borne Green-house
gases and other
Emissions WP 3
Common (IEEA) Communic. & Dissemination
WP 2Communication&Dissemination
Economic &sustainable
operation of LNG powered regularly commuting ships
Economic &sustainable
operation of LNG powered regularly commuting ships
Reduction of ships emissions in cities
and on fairways
Reduction of ships emissions in cities
and on fairways
StrategicObjective Establish supply chains
for alternative fuels (in this project Liquid Natural
Gas)
Invention of LNG as fuel for ships
Invention of LNG as fuel for ships
Public Relations,Presswork,NewslettersInternet-Site
Electronic Infos
Public Relations,Presswork,NewslettersInternet-Site
Electronic Infos
© 5/02 S
TR
ÄU
SSL
ER
Europa &
Strategy Consultants, L
übeck, [email protected]
WP 4Market demand study for LNG powered ships
1 study on possible
demand for LNG ships
1 study on possible
demand for LNG ships
expectedOutcomes
Economic and
techncial proof of
viability of
LNG supply chains
Good Management Documentation
4 Reports
Good Management Documentation
4 Reports
2 Conferences4 Partnership
Meetings
2 Conferences4 Partnership
Meetings
WP 1Project
Management
WP 5LNG supply
chain feasibility studies
1 overall + 6 individual LNG supply chain
studies in ports and port cities
1 overall + 6 individual LNG supply chain
studies in ports and port cities
WP 6Pilot feasibility
study in Lübeck
May 2008May 2008 RationaleRationale Slide 20
baltic energy forum
DeliverablesDeliverables
1.1. Overall supply chain study in the Baltic Overall supply chain study in the Baltic Sea Region Sea Region
2.2. Individual supply chain studies in 6 portsIndividual supply chain studies in 6 ports
3.3. Market demand study for LNG-powered Market demand study for LNG-powered shipsships
4.4. Preparation for pilot investments in LübeckPreparation for pilot investments in Lübeck
May 2008May 2008 RationaleRationale Slide 21
baltic energy forum
ImpactsImpacts
• Contribution to MARPOL Annex VIContribution to MARPOL Annex VI
• Contribution to the European fuel directiveContribution to the European fuel directive
• Contribution to the European clean air Contribution to the European clean air directivedirective
May 2008May 2008 RationaleRationale Slide 22
baltic energy forum
Target GroupsTarget Groups
1.1. Port CitiesPort Cities
2.2. Inhabitants and tourists in Port CitiesInhabitants and tourists in Port Cities
3.3. Ship owners and ship operatorsShip owners and ship operators
4.4. Energy suppliers and distributorsEnergy suppliers and distributors
5.5. Ship builders and classification bodiesShip builders and classification bodies
6.6. European and national bodiesEuropean and national bodies
7.7. The publicThe public
May 2008May 2008 RationaleRationale Slide 23
baltic energy forum
Project ManagementProject Management
Coordinator
Gasnor A/S
Aksel Skjervheim
Assistant coordinator
Baltic Energy Forum
Jörg Sträussler
Gasnor A/S
TechnicalExpertise
Baltic Energy ForumEnergy
Management
Hordaland Fylkes-
Kommune
Stakeholder
Marinek
Scientific Expertise
Municipality of
Swinoujscie
Stakeholder
Power Utlity Lübeck
Power Distributor
Steering Group
Aksel Skjervheim
Jörg Sträussler
Ralf Giercke
May 2008May 2008 RationaleRationale Slide 24
baltic energy forum
DurationDuration
• From January 1, 2007From January 1, 2007
• Until December 31, 2008Until December 31, 2008
May 2008May 2008 RationaleRationale Slide 25
baltic energy forum
ContactContact
Capt. Jörg SträusslerCapt. Jörg SträusslerBaltic Energy Forum e.V.Baltic Energy Forum [email protected]@t-online.de
+49-(0)38824-81013+49-(0)38824-81013