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2009/04/01 © MAN Diesel [current topic] < 1 > Two-stroke- Sales introduction course October 2009 Carsten Dommermuth Senior Manger Sales Support Business Unit Power Plants

Two-Stroke Sales Intro

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Page 1: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] 2009/04/01© MAN Diesel [current topic] < 1 >

Two-stroke- Sales introduction courseOctober 2009

Carsten DommermuthSenior Manger Sales Support

Business Unit Power Plants

Page 2: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel as a sole provider of all ranges

MAN Diesel engines in comparsion

MAN Diesel at the worldwide power plant market

Environmental policy and engine based power generation

Two stroke vs. four-stroke

Maintenance cost- comparison two-stroke vs. four-stroke

Reference two-stroke power plants

back-up Biofuel for two-stroke engines

Table of content

<2>

Page 3: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Without any comment….

50% of World Trade is Powered by Engines from MAN Diesel

Page 4: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Group

Commercial Vehicles

MAN Latin America

Diesel Engines

Turbo Machinery

RENK (76% stake)

TrucksBusesEnginesServices

Marine applications / power plants Turbochargers Services

CompressorsTurbinesServices

Gear systemsSlide bearingsTesting systemsServices

TrucksBusesServices

Transport-Related Engineering2008: Revenue €14.9 billion; Operating Profit €1.7 billion; 51,300 Employees

Page 5: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Sole Provider of a Diesel Engine Programme from 450 kW to 97,300 kW

<5>

Page 6: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <6>

Development and ProductionLocations

St. Nazaire

Augsburg

Frederikshavn

Copenhagen

Shanghai

Aurangabad

Velká Bìteš

• Germany• Denmark• France• Czech Republic

• China P.R.• India

Holeby

Page 7: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel GroupLocations in Europe

Great BritainMAN Diesel Ltd.After-sales services

FranceMAN Diesel SASFour-stroke engines, after-sales services

GermanyMAN Diesel SEHeadquarters, four-stroke engines, turbochargers, after-sales services

AugsburgVillepinte/Paris

Saint-Nazaire

Stockport

Hamburg

Holeby

Copenhagen

Frederikshavn

Rostock

Sta

tus:

12/

05

Employees worldwide: 7,700

Velká Bìteš

DenmarkMAN Diesel, Two- and four-stroke engines,propellers and propulsion packages, after-sales services

Czech RepublicPBS Turbo s.r.o. Turbochargers

Colchester

<7>

Page 8: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <8>

up to 80 080 kW

MAN Diesel Copenhagen, Denmark

Page 9: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel Licensees

<9>

CroatiaAdriadiesel 1998Brodosplit 1967Uljanik 1984

U.S.A.Fairbanks Morse Engine 1995

Low-Speed Medium-Speed High-Speed Turbocharger CP-Propeller

IndiaKirloskar 1977

JapanDiesel United 1963J.F.E. Engineering 1964Hitachi 1951Kawasaki 1911Mitsubishi 1929Mitsui 1926Niigata 1973

KoreaDoosan Engine 1983Hyundai Heavy Industries 1976STX Heavy Industry, STX Engine 1977STX Enpaco 1995

PolandH. Cegielski Poznan 1959

RussiaBryansk 1959

SpainNavantia 1965

VietnamVinashin 2004

China P.R.Shanghai Xinzhong Power Mach. Plant (CXZ),CSIC 1980Shaanxi Diesel Engine Heavy Ind., (SXD) CSIC 2004Henan Diesel Engine Heavy Industry, (HND) CSIC 2007Wuhan Marine Machinery Plant, (WMMP) CSIC 2006Dalian Marine Diesel, CSIC 1980Yichang Marine Diesel, CSIC 1989Zhenjiang CME, CSSC 1980Hudong, CSSC 1980MES Diesel, CSSC 2007Dalian Locomotive (DLRC) 2004Hangzhou Zhonggao Engine (ZGPT) 2006STX Dalian, STX Fushun 2007Jiangsu Antai (JAD) 2007Shandong Juli 2008Jiangsu Guotai Marine Diesel 2008CSR Ziyang Locomotive 2008Zhongji Hitachi Zosen Diesel Engine (ZHD) 2008Rong An 2008Yungpu 2008Zhejiang Yungpu Heavy Machinery 2008

Page 10: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel Leading Position on the two stroke market

Source: BRL Shipping Consultants Lloyds Ship Manager June 2007

MAN Diesel92%

Mitsubishi2%

Sulzer(Wärtsilä)

6%

Page 11: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel Engine Program

Sole Provider of a Diesel Engine Programfrom 500 kW to 97,300 kW

Page 12: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN B&W Diesel Engine Programme

30,000

20,000

40,000

600

10,000

60,000

50,000

Engine output P (kW)mech

0700

Engine speed (r/min)500200 300 400

Medium speed

70,000

100

Four-stroke

80,000

Two-stroke

Low speed

Page 13: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Two-Stroke Licensees

Spain IZAR – Manises 1941

Korea Hyundai HSD STX

Poland Cegielski 1959

Russia Bryansk 1959

Japan Mitsui Makita Hitachi Kawasaki

Croatia Uljanik 1954 Split 1984

China HHM DMD YMD

1980 1980 1989

1926198119511981

197619831984

AASOKU
Rectángulo
AASOKU
Línea
AASOKU
Línea
Page 14: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

6S35MC and 10K98MC-C on Testbed

Page 15: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <15>

up to 80 080 kW

Two stroke engine 10K98MC-C

Page 16: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison IC engine vs. gas turbine

Carsten DommermuthSenior Manger Sales Support

Business Unit Power Plants

Page 17: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Power Efficiency Comparison at ISO 3046

Operation conditions:Gas turbines:(according to ISO 3977)Diesel engines:(according to ISO 3046)

*Type: MAN Diesel SE

Reference of Graphic:Article from Mr. H. W. Köhler, MAN Diesel SE: „Diesel engines and gas turbines in cruise vessel propulsion – a technical and commercial comparison“, 1999

Page 18: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Influence of Ambient Conditions on Rating of Internal Combustion Engines

25

48

80

Air inlet temperature CCooling water temperature C

Ambient conditions

o

o

46

100

90

Medium speed diesel

3542Design

Overall efficiency

Gas turbine

Low speed diesel

30 35 4520 40

% Power Power restriction

Efficiency, low speed diesel

% Power

2535Min.

4552Max.

50

49

Ambient temperature Co

47

80

100

90

Low speed diesel (%)

„Base Load“

Page 19: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Influence of flexibel load profile on Rating

„Part Load“ Output Reduction Two stroke Engine

Page 20: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Fuel flexibility for a better economical performance

Carsten DommermuthSenior Manger Sales Support

Business Unit Power Plants

Page 21: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Examples of Liquid Fuels Burned in MAN B&WTwo-stroke Low Speed Diesel Engines

Fuel No A B C D E F G H I J K L M N O UnitsViscosity 3.8 84 85 141 198 255 470 520 560 690 710 800 1200 50,000 - cSt/50°CDensity 968 995 970 993 938 977 985 983 1,010 1,008 1,030 935 998 1,040 1.01 kg/m

at 15°CFlash point 98 84 80 103 100 106 90 95 90 79 84 >40 80 >70 °CConradsonCarbon 0.3 17.2 12.1 13.3 9.4 14.5 16.8 14.8 17.3 22.1 24.7 9.4 14,1 24.2 11.7 % weightAsphalt 0.78 15.1 8.9 9.2 3.7 10.0 11.3 12.8 14.6 19.3 29.0 1.02 12 - -Sulphur 0.10 2.72 1.16 0.91 0.83 0.87 0.90 1.18 2.22 3.52 3.30 0.37 4 4.8 2.8Water 0.01 0.01 0.01 0.00 0.01 0.02 0.02 0.01 0.00 0.00 0.00 - 0,65 0.05 -Ash 0.00 0.065 0.025 0.03 0.03 0.025 0.03 0.035 0.04 0.07 0.09 0.043 - 0.035 0.18Aluminium - - - - - - - - - - - - 12 2.0 1 mg/kgVanadium 0 220 20 23 12 17 24 45 122 300 370 415 312 149 - mg/kgSodium 0 27 23 24 25 40 35 22 22 24 50 9 - - - mg/kgCCAI 912 874 849 866 807 843 844 841 868 864 885 - - - - -

3

>60

% weight% weight% weight% weight

Page 22: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN B&W Two-Stroke Dual Fuel Low Speed Diesel, Fuel Type Mode

Gas

100% load30 - 40% Fuel

Fuel 100%

8%

“Minimum fuel” mode

100% load

Fuel

Fuel 100%

Fuel-oil-only mode

100% loadFuel

Gas

Fuel 100%

8%

“Specified gas” mode

Page 23: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

40 MW Plant, Chiba, Japan

Power Plant at CHIBA Power Plant in Japan

Engine:MAN B&W 12K80MC-GI

Page 24: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Examples of Gaseous Fuels Burned in MAN B&WTwo-Stroke Low Speed Diesel Engines

Composition Units Natural gas types VOC fuel typesCH4 vol.% 88.5 91.1 26.1 - - -C2H6 vol.% 4.6 4.7 2.5 1.1 6.3 -C3H8 vol.% 5.4 1.7 0.1 65.5 - -C4H10 vol.% 1.5 1.4 - 23.9 5.0 6.1C5+

vol.% 6.5 88.7 93.9CO2 vol.% - 0.5 64.0 - - -N2 vol.% - 0.6 7.3 - - -

Molar mass kg/kmol 18.83 17.98 35.20

Lower calorific value kJ/kg 49170 48390 7050Lower calorific value kJ/Nm3 41460 38930 11120

Density:at 25 oC/ 1 bar abs kg/m3 0.76 0.73 1.43at 25 oC/ 200 bar abs kg/m3 194 179 487

Page 25: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Waste Energy UtilisationEnvironmental friendly and a chance for optimising also economical efficiency of the electrical generation process

Carsten DommermuthSenior Manger Sales Support

Business Unit Power Plants

Page 26: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Low Speed Diesels – Waste Energy Utilisation

Turbo generator

Process steam

District heating

Process heating

(60-65 C)o (80-85 C)o

(230-260 C)o

Process water

District heating

PressurisedProcess heat

District heating

Electricalenergy

Turbo generator

Process steam

District heating

(80-130° C)

Energy fromlubricatingoil coolingA) Heat

exchanger

Energy fromjacket coolingA) Heat

exchangerB) Direct use

Exhaust gas energyA) Steam boilerB) Heat exchanger

Air cooler energyA) Hot water

=> 100 CB) Hot water

=> 100 C

o

TCS unitA) Power

turbine

Page 27: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Two-stroke Low Speed DieselCombined Cycle

50 60 70 80 90 100 110 Load [%]

57

55

53

51

Thermal efficiency [%]

MAN B&W 2-stroke diesel engines are well known for theirlow specific fuel oil consumption, overall efficiency, andlong-term reliability.The recent dramatic increase in fuel oil costs has revivedinterest in methods for maximising fuel economy in 2-strokeengine systems, while ensuring continued high systemreliability.

Page 28: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

600 kW MAN B&W TCS Unit for Exhaust Gas Energy Recovery

Generator Gear box Exhaust gas turbineCoupling

Page 29: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Typical Utility Installation (Macao)

Heat balance data: Unutilisedenergy

Generatorcooling: 1.5%

Radiation: 0.5%

Lub. oil cooling: 4.1%

Exhaust gas: 22.5%

Jacket watercooling: 7.0%

Heat exchanger

Total energy utilisation:Electrical energy = 50.0%Thermal energy = 1.2%Total energy utilisation = 51.2%

Engine shaftgeneratoroutput 47.7%

Turbogenerator

1.3%

Energy in fuel: 100%

Utilisedenergy

TCSgenerator

1.0%

1.2%

High temp.Low temp.

Charge air cooling: 22.5%

A Sankey diagram is a specific type of

flow diagram, in which the width of the

arrows is shown proportionally to the

flow quantity. Is shows exactly the well

known first law of thermodynamics

Page 30: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel SE Power Market

<30>

Carsten DommermuthSenior Manager

Business Unit Power Plants

Page 31: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] 3/333363416 (GMD12/ACJ)

Two-stroke Low Speed Engines for Stationary Applications

Range from 20-50 MW

Page 32: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

2009 and 2010Stationary two-stroke projects

Actual and upcoming projects only two-stroke (as of 09-2009)

Western Pacific Ocean: 80 MW (12K80-MC-S)

Greece: 100 MW Tender (12K90MC-S)

North America: 50 MW Tender (12K90MC-S)

Italia: 20 MW Private Project (12K60MC-S)

Albania 120 MW Private Project (12K80MC-S)

Southwest Asia 600 MW governmental project (12K90MC-S)

Several enquiries for Bio projects (range from 4-max. 20 MW) L35MC-S

<32>

Page 33: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] < 33 >

Environmental policy The new driver for modern power plant solutions

Carsten DommermuthSenior Manager

Business Unit Power Plants

Page 34: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <34>

Emission facts

The emission issue will become more and more important in the future.

In local areas, regulations will be even stricter than they are today.

The main driver for sophisticated MAN Diesel two-stroke environmental technology is the market dominance of MAN´s two-stroke engines in the marine business.

Our two and four-stroke power plant solutions fulfill high standards of international regulations like World Bank and IFC.

Page 35: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <35>

Emission facts

Emissions from diesel and heavy fuel oil engines

NOx (Nitrogen Oxides): Function of peak combustion temperatures and oxygen concentration.Reduction: Primary or secondary methods

SOx (Sulphur Oxides): Function of fuel oil sulphur content.Reduction: The most effective means is to lower the sulphur content in the fuel.

CO2 (Carbon dioxide): Function of the thermal effienecy of the complete generating process.

Particulate emissions: A result of:

Ash content in fuel/cylinder and lube oil.Partly burned lube oil dosage.

Page 36: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <36>

Environmental policy and regulations

are the main driver for

modern power plant solutions

Page 37: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

CO2 Emission as function of plant efficiency

3334790.2007.03.28 (3230/JH)

400

450

500

550

600

650

700

750

800

35 40 45 50 55 60% efficiency

CO2g/kWh

CO2

g/kWh

3334790.2007.03.28 (3230/JH)

HFO 380cSt

Page 38: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Exhaust Emissions

Heat

Air8.5 kg/kWh 21% O2 79% N2

Fuel175 g/kWh 97% HC 3% S

Lube1 g/kWh 97% HC 2.5% Ca 0.5% S

Work

Exhaust gas13.00% O2 75.80% N2 5.20% CO2 5.35% H2O1500 vppm NOx 600 vppm SOx 60 vppm CO 180 vppm HC

120 mg/Nm3 Part

Two stroke Engine air and exhaust gas flow

Page 39: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Exhaust Emissions

World Bank (2008) Guideline for thermal power plants > 300 MWth

NOx[mg/m3]

SOx[mg/m3]

PM [mg/m3]

WB 2008 740 580 30-50

1% S in fuel and non degraded air shed

How can we meet the current World Bank or the local emission rules?

Measurements with 15%O2 in dry Exhaust Gas

… or local requirements, or values defined by an Environmental Assessment Study

Page 40: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Schematic SCR Flow ChartExhaust Emissions

2-stroke engines

4-stroke enginesEngine SCR T/C Boiler

Engine T/C SCR Boiler

350 ºC 270 ºC

350 ºC

Page 41: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Exhaust Emissions

Two stroke solution for reduction the SOx (SO2)- “Main driver for this emissions is the available fuel”

To meet minimum World Bank without secondary method a low sulphur content is the driver

Measurements with 15%O2 in dry Exhaust Gas

NOx[mg/m3]

SOx[mg/m3]

PM [mg/m3]

WB 2008 740 580* 50

0

500

1000

1500

2000

2500

3000

0 1 2 3 4 5S-Content in Fuel Oil %wt.

SOx

Emis

sion

s m

g/N

m³ @

15%

O2

*1% S in fuel

… or local requirements, or values defined by an Environmental Assessment Study

Page 42: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Electrostatic Precipitator – Reference List

1990 40MW 4 x 7K60MC-S Cheju, Korea1997 38 MW 3 x 7K60MC-S DCM, India2004 60 MW 2 x 9K80MC-S BLPC, Barbados2005 40 MW 1 x 12K80MC-S Komipo, Korea

1 x MAN 12K80MC-S engines

(40 MW) Engines in Korea

Page 43: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Jeju Island, South Korea

Page 44: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Stationary Applications

Emission Testedtechnology

Proventechnology

Influence on1st cost

Influence on Influence onrunning cost maintenance

Control method effort

CO2

Efficiency X up down

NOx

Engine adjustment

Water emulsification

SCR

EGR

X up

X up up

X up up up

X up up

Particulates

Fuel selection

Engine adjustment

Precipitators

X up

X

X up up

SOx

Fuel selection

DeSOx

X up

X up up up

Liquid fuel two-stroke diesel engine emission control status

Page 45: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <45>

Two-stroke vs. four-stroke

Carsten DommermuthSenior Manger

Business Unit Power Plants

Page 46: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Economics in power generation

Comparison of pricing in power generation for

2-stroke and 4-stroke

Page 47: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison two stroke vs. four stroke

Investors view Driver for a two stroke Solution

Two stroke Engine with a higher thermal efficiency. (Net Heat Rate)

Two stroke has a lower specific Fuel Oil consumption than four stroke.

Two stroke with longer Time between overhaul (TBO) in service.

Two stroke engine with lower mean piston velocity (MPV) as indicator for lower maintenance costs.

Two stroke is very flexible in fuel share.

Fuel Oil90%

Maintenance6%

Lube Oil4%

Typical Cost Distribution for running costs in Electricity Generation

The equity pay back time for a two stroke solution is under ceteris paribus nearly the same with 4,5 years under a

NPV Analysis. Reasons are the higher thermal efficiency, lower fuel and spare part consumption

*Without cost of capital

Page 48: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison of annual running cost for ~330 MW base load power

Power Plant Solution Calculations without capital costs- capital costs for equity and debt are depending on customers business case

7 x 12K90MC-S With TCS and steam turbine

328,9 MW net

18 x 18V48/60With steam turbine

303 MW net

SFOC 172,3 g/kWh 192 g/kWh

Fuel oil costs per year (230 US$/MT) 91,6 Mio.US$ 93,8 Mio.US$

System oil consumption (per unit) 4,8 kg/h 11,5 kg/h

Cylinder oil consumption (per unit) 1,0 g/kWh -----

Lube and cylinder oil costs 3,8 US$/kg 3,8 US$/kg

System oil costs (plant) 1,1 Mio.US$ 5,66 Mio.US$

Cylinder oil costs (plant) 8,9 Mio.US$ ----

Maintanance costs (7200h/a) 7,0 Mio.US$/year(3,0 US$/MWh)

18,59 Mio.US/year(7,8 US$ /MWh)

Total operating costs per year 108,6 Mio.US$ 121,85 Mio.US$

Specific operating costs per yearbased on 7000 h/a*

0,049 US$/kWh net* 0,057 US$/kWh net*

Page 49: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Electricity generating costs based on a ~330 MW base load power plant solution

Power Plant Solution

Capital costs

7 x 12K90MC-S With TCS and steam turbine

328,9 MW net

18 x 18V48/60With steam turbine

303 MW net

Construction time 2,5 1,5

Equity ratio 40% 40%

Tax rate 30% 30%

Equity costs 15% 15%

Loan costs 5% 5%

Weighted costs of capital 8,1% 8,1%

Full eletricity generation costs 56 US$/MWh 60,2 US$/MWh

Page 50: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Results of comparison two stroke vs. four stroke in annual running costs for ~330 MW

1,1

5,66

0 1 2 3 4 5 6

Two stroke

Four stroke

Lub oil costs per plant in Mio.US$/a

0 2 4 6 8 10

Two stroke

Four stroke

Cylinder oil costs (plant) Mio.US$/a *

*Four stroke engines without a cylinder oil system

Page 51: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Results of comparison two stroke vs. four stroke in annual running costs ~330 MW

7

18,59

0 5 10 15 20

Two stroke

Four stroke

Maintenance costs (7200h/a) Mio.US$/a

115,6

126

110 115 120 125 130

Two stroke

Four stroke

Total operating costs per year in Mio.US$

High price differences are caused by 2 main servicing at 15.000 operating hours and 30.000 operating hours for 4-stroke engine.First main servicing for 2-stroke engine at 32.000 operating hours

Source: B. Jacobsen and P.G. Povelsen, MAN Diesel A/S, -G. Ambrasas, MAN Diesel SE

Page 52: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

The main drivers forpower plant investment decisions

Ranking for Independent Power Producer (IPP)1. Heat Rate.

2. High electricity market prices.

3. Best financial case under Net Present Value - The net added $-value of cash flow/investment in today’s money- adjusted by thediscount rate

4. Return on investment attainable for investors.

5. The internal rate of return of an investment. (IRR)

6. Project implementation time (project development/financing, engineering, construction, etc.).

7. Interest rate/loan tenor.

8. Flexible operation, short start and easy shutdowns.

9. Comparatively low operation and maintenance (O&M) costs.

The focus for IPP power plant investment decisions is more financial orientated

Page 53: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

The main drivers forpower plant investment decisions

Ranking for Publicly Owned power projects 1. High Reliability.

2. High Availability

3. Long and steady operation up to first major overhaul.

4. Heat Rate.

5. Comparatively low operation and maintenance (O&M) costs.

6. Best financial case under Net Present Value - The net added $-value of cash flow/investment in today’s money- adjusted by thediscount rate

7. Return on investment.

8. The internal rate of return of an investment. (IRR)

9. Project implementation time (project development/financing, engineering, construction, etc.).

10. Interest rate/loan tenor.

The focus for public owned power plant investments is more orientated at save and steady energy supply

Page 54: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

The main drivers forpower plant investment decisions

* EPC package incl. 2x 9K80 MC-S engines, 1x Steam Turbine and 2x TCS Systems

Page 55: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

The main drivers forpower plant investment decisions

Typical cost distribution of a EPC two stroke project (in %)

Full EPC turnkey price:

- Installed capacity: 62.000kW Net

- 115 Mio. US$

- Specific price: 1850US$/kW

Engines20%

Generators11%

Mechanical Equipment

24%

Electrical Equipment

8%

Balance of Plant/Civil

20%

Transport and Logistic

4%

Errection and Comissioning

10%

Engineering3%

Page 56: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] <56>

Two-stroke vs. four-strokeMaintenance costs

Carsten DommermuthSenior Manger

Business Unit Power Plants

Page 57: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison of maintenance costs ~330 MW

<57>

Specific Maintenance costsTwo-stroke 7,3 €/kW/year

Four-stroke 21 €/kW/year

2,40

6,36

Two-stroke Four-stroke

Annual maintenance costs in Mio. €

Page 58: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison of maintenance costs ~330 MW

Accumulated maintenance costs for

20 years

Two-stroke 48,02 Mio.€

Four-stroke 127,26 Mio.€

<58>

48,02

127,26

Two-stroke Four-stroke

Page 59: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison of maintenance costs ~330 MW

<59>

Engine 7 x12K90MC-S

Two-stroke

18 x18V48/60

Four-strokeCylinder 84 324

Valves 84 648

Spare part costs only forvalves in 20 years(140.000h)

8,89 Mio. € 27 Mio. €

Different engine designs a the main reason

for high different in maintenance pricing

Main influence factors for maintenance costs:

Number of cylinders and cylinder heads, number of moving parts and mean piston velocity

Example: Number of Valves

*based on 7000 h/a: Estimated maintenance costs for a 12K90 MC-S engine. Exhaust valve-TBO 16.000 h –pricing 12.000 € plus blue colar costs (7 h x 7€/h) in total 12.100 €

Page 60: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison of maintenance costs ~330 MW

<60>

Specific Maintenance costsTwo-stroke 7,3 €/kW/year

Four-stroke 21 €/kW/year

2,40

6,36

Two-stroke Four-stroke

Annual maintenance costs in Mio. €

Page 61: Two-Stroke Sales Intro

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Comparison of maintenance costs ~330 MW

Accumulated maintenance costs for

20 years

Two-stroke 48,02 Mio.€

Four-stroke 127,26 Mio.€

<61>

48,02

127,26

Two-stroke Four-stroke

Page 62: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Comparison of maintenance costs ~330 MW

<62>

Engine 7 x12K90MC-S

Two-stroke

18 x18V48/60

Four-strokeCylinder 84 324

Valves 84 648

Spare part costs only forvalves in 20 years(140.000h)

8,89 Mio. € 27 Mio. €

Different engine designs are the main reason

for high differences in maintenance pricing

Main influence factors for maintenance costs:

Number of cylinders and cylinder heads, number of moving parts and mean piston velocity

Example: Number of Valves

*based on 7000 h/a: Estimated maintenance costs for a 12K90 MC-S engine. Exhaust valve-TBO 16.000 h –pricing 12.000 € plus blue colar costs (7 h x 7€/h) in total 12.100 €

Page 63: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel SE Two-stroke reference plants

<63>

Carsten DommermuthSenior Manager

Business Unit Power Plants

Page 64: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] 3/333363416 (GMD12/ACJ)

Two-stroke Low Speed Engines for Stationary Applications

Range from 20-50 MW

Page 65: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

As at 2002.10.16

Clifton Pier Power Plant, the Bahamas

Page 66: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Bahamas, 2 x 33 MWProject Organisation

Alstom Power S.A., Spain- Main contractor- Generator- Mechanical and electrical aux. systems- Logistics- Site erection- Commissioning

MAN B&W Diesel A/S, Denmark- Diesel engine design

Manises Diesel Engine Co. S.A., Spain- Diesel engine supply- Site erection- Commissioning Conceptual plant engineering

Foundation design

Commissioning assistance

Page 67: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

As at 2002.10.16

Clifton Pier Power Plant, the Bahamas

Clifton Pier Power Station: Location: Bahamas

Operator: Bahamas Electricity Corp

Fuel: Heavy Fuel Oil

Page 68: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

2 x 100 MW HFO Barges for the Phillipines4 x 12K90MC-S 2 x 100 MW HFO Barges for the Phillipines4 x 12K90MC-S

The world largest Power Barge- 95 Meters long, 45 Meters Wide, 50 Meters high, 22000 Ton

Page 69: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Mindanao Plant Performance

Engine data

Engine type 12K90MC-S

Number of cylinders 12

MCR kW 51.240

r/min rpm 102.9

Bore cm 90

Stroke cm 230

Mean piston velocity m/s 7.89

Mean effective pressure bar 17,0

Length m 23

Width m 7,9

Height m 14,9

Total weight t 1830

Heaviest weight for maintenance t 10

Page 70: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

12K90MC-S, San Carlos, Mexico

Page 71: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

12K90MC-S, San Carlos, Mexico

Olachea (San Carlos) Location: Mexico

Operator: Comision Federal de ElectricidadeConfiguration: 2 X 32-MW, 1 X 42-MW 12K90MC-S engine.

Fuel: Heavy Fuel Oil

EPC: MHI, Hyundai, MAN B&W, ABB

Page 72: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

200 MW GMR Plant at Chennai, India

Page 73: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

125 MW, Ibiza, Spain

Ibiza-Holiday Island in the Mediterranen Sea-

Base and Midle load powered by MAN Diesel two- and four stroke engines

Page 74: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

125 MW, Ibiza, Spain

Ibiza- Location: Baleares, Operator: Endesa SpainConfiguration: 4 X 8.5-MW 6K74ES engines, 2 X 15.4-MW 10K67GSCA enginesOperation: 1973-1981Fuel: HFOE/G supplier: MAN B&W

Page 75: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

90 MW Plant at Fort George, Mauritius3 x 9K80MC-S

Page 76: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

90 MW Plant at Fort George, Mauritius3 x 9K80MC-S

Page 77: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

90 MW Power Plant, Guam

Page 78: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

90 MW Power Plant, Guam

1999 2000 1999 2000

D8 D9

Availability % 96.3 93.1 95.1 93.6

Reliability % 99.0 98.3 97.6 94.0

Scheduled outage hrs. 234 272 217 274

Unscheduled outage hrs. 84 95 207 138

Load factor % 82 94 83 94

Page 79: Two-Stroke Sales Intro

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Many Thanks for your attention….

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MAN Diesel Contacts Power Plants Sales

Carsten Dommermuth

Senior Manager

Two-stroke, stationary power plants

MAN Diesel SE

Business Unit Power Plants

Phone: +49 821 322-3184

Mobil: +49 171 7645070

[email protected]

Postal address:

Stadtbachstr. 1

86153 Augsburg, Germany

Page 81: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

MAN Diesel SETwo-stroke engine bio fuel application

Carsten DommermuthSenior Manager

Business Unit Power Plants

Page 82: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Customer: PBB GmbH, cogeneration IPPC (Independent Power Producer Company) based in Oldenburg,

Scope of delivery: Turnkey CHP (Combined Heat and Power) plant to a site in the city of Brake, near Bremen, Germany.

Engine: MAN B&W 7L35MC-S engine, supplying 4.2 MWel to the national grid and 3.6 MWth to a palm-oil refinery situated nearby. The engine is a two stroke, low-speed, crosshead uniflow diesel engine.

Fuel: Crude palm oil with a Total Acid Number (TAN) of up to 15 mg/KOH/g.

Heat rate: 7,400 kJ/kWh at site ambient conditions, corresponding to an efficiency of 49%; plant total efficiency in CHP-mode 87%.

Exhaust gas cleaning: The plant is equipped with an SCR (Selective Catalytic Reduction) catalyst, an oxidation catalyst and an electrostatic precipitator

< 82 >

Two-stroke Bio Project under the German EEG in Brake

Page 83: Two-Stroke Sales Intro

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Two-stroke Bio Project under the German EEG in Brake

MAN Diesel B&W 7L35MC-S engine with 4,5 KWmech

Power Plant site from PBB GmbH in Brake, Germany

Page 84: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Name of project Brake Emden Italy DanishTest Method Unit

Free fat acid % 7 6.5 5.56 12.48

Conradson carbon residue ASTM D 189 % wt 0.5 2 0.52 0.74

Water content fuel max. ASTM D 95 % vol 0.5 <1 0.11 0.1Flash point, PMcc ASTM D 93 °C 200 >60 239 -Phosphorus ISO 10478 mg/kg 100 - 15 -Total acid number Din.EN-ISO 660 mg KOH/g 14 13 11.2 24.96

Calorific value, net ASTM D 240 MJ/kg 36 37-39 36.9 35.5

Density at 15°C ASTM D 4052 g/ml 930 kg/m3 0,89-0,92 0.8888 0.9142Viscosity at 50°C ASTM D 445 cSt 32 40 28.3 28

Sulphur IP 336 ppm 10 <50 1 -

Ash ASTM D 482 % wt 0.01 <0.1 <0.01 0.005

Two-stroke Bio Crude Palm Oil Specifications

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Density/15 °C 900 – 930 kg/m³ DIN EN ISO 3675, EN ISO 12185Flash point > 60 °C DIN EN 22719

Lower calorific value > 35 MJ/kg(typical: 37 MJ/kg) DIN 51900-3

Viscosity/50 °C< 40 cSt

(corresponds to viscosity/ 40 °C< 60 cSt)

DIN EN ISO 3104

Cetane number > 40 FIACoke residue < 0,4 % DIN EN ISO 10370Sediment content < 200 ppm DIN EN 12662Oxidation stability (110 °C) > 5 h ISO 6886Phosphorus content < 15 ppm ASTM D3231Na + K content < 15 ppm DIN 51797-3Ash content < 0,01 % DIN EN ISO 6245Iodine Number < 125 g/100g DIN EN 14111Water content < 0,5 % EN ISO 12537TAN (total acid number) < 4 mgKOH/g DIN EN ISO 660

Cold Filter Plugging Point < 10 °C below lowest temperature in fuel system EN 116

Source: Dr. Gehring MAN Diesel SE

MAN Diesel four-stroke BiofuelSpecification

Page 86: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Two-stroke Bio Conversion of Standard Stationary HFO Engine to CPO Engine

Larger fuel valves Introduced (coated)

Reinforced camshaft Introduced

Larger fuel pumps introduced; modifiedMaterials (coated)

Modified components

Page 87: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] < 87 >

Two-stroke Bio Project with Crude Palm Oil

The emission levels are based on the ISO 8178 measurement method, except for PM values, which are stated according to EPA 17.

NOx level assumes to fuel bound nitrogen. The emissions are recalculated to 15% of O2 at dry exhaust gas at ISO 3046 ambient conditions.

No remarkable SOxemissions.

Page 88: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Emissions measured at the test bed withoutexhaust gas cleaning (15% O2)

< 88 >

Two-stroke Bio Project with Crude Palm Oil

CO mg/Nm3

NOXmg/Nm3

HC mg/Nm3

PM mg/Nm3

100% MCR

90 2600 35 80

75% MCR

60 2600 45 70

50% MCR

80 2400 55 65

Page 89: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Two-stroke Bio MAN B&W two-stroke engine L35MC-S at test bed

< 1 >

http://www.manbw.com/engines/TwoStrokeLowSpeedEngines.asp?model=L35MC-S

Page 90: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

The MAN Diesel reference Palm Oilplant in Brake is equipped with an SCR, Oxi-cat and an electrostatic precipitator*

< 90 >

Two-stroke Bio Brake fulfil the strict German TA Luft

Page 91: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic]

Two-stroke Bio SCR Arrangement MAN B&W Low Speed Biofuel Engine

TC

Generator

Cyl.1

Power house

Silencer

Chimney

Exhaust gas boiler

Electrostatic precipitator

SCR

Total back pressure to be below 350 mmWC

Suction blower

Page 92: Two-Stroke Sales Intro

2009/04/01© MAN Diesel [current topic] < 92 >

Two-stroke Bio project investment costs for 4,5 MWmech in a CHP mode

E&M turnkey pricing approx. 1100 €/kW incl, SCR, Oxicat and ESP (4,95 Mio. €)

CHP installation 100 €/kW (450 T€)

Engines20%

Generators11%

Mechanical Equipment

24%

Electrical Equipment

8%

Balance of Plant/Civil

20%

Transport and Logistic

4%

Errection and Comissioning

10%

Engineering3%