Introductie Dan Veen

Van 1991-1996 studeerde Dan Veen Werktuigbouwkunde aan de Hogeschool Utrecht.  Na het behalen van zijn diploma heeft hij 4 jaar op divers functies binnen het gastechnisch ingenieurs- en onderzoeksbureau Gastec Apeldoorn gewerkt. Hierna heeft hij een overstap gemaakt naar een commerciele buitendienstfunctie bij Freudenberg Simrit in Naarden.

In 2004 is hij bij Wärtsilä Services in Schiedam in dienst getreden als accountmanager, waar hij verantwoordelijk was voor de commerciele relaties en verkoop aan klanten in de baggerindustrie.

Tussen 2005 en 2007 heeft hij zijn master in de Bedrijfskunde, specialisatie Financieel Management gehaald.

Tussen 2008 en medio 2010 is hij verantwoordelijk geworden voor de Services Sales afdeling.  

In 2010 is hij overgestapt naar een functie Manager Sales Development voor de regio Noord Europa.  Zijn specialisme hierin liggen vooral op het gebied van emissieswetgeving, nabehandeling en het gebruik van alternatieve brandstoffen zoals LNG. 

 

Shipping in the future

Dan VeenSales Development Manager – North Europe

Bebeka Seminar

Europort, 10 November 2011

16 largest ships emit as much as all 800 million cars in the worldOne ship can emit 5000 tons of sulphur per year(source: The Guardian)

If the shipping industry were a country, it would be the 7th largest producer of CO2 in the world.(source: Shipefficiency.org)

Absolute numbers

2

IMO sulphur limits

0,1%

4,5%

3,5%

1,5%

1,0%

0,5%

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

World

EU in ports

SECA

4,5 4,5 3,5 3,5 3,5

1,5 1,0 1,0 0,5 0,1

67% 78% 71% 86% 97%

97%78%

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NOx reduction – IMO requirements and methods

0 200 400 600 800 1000 1200 1400 1600 1800 2000

6

8

10

12

14

16

18

2

0

Specific NOx emissions (g/kWh)

Rated engine speed (rpm)

Tier II (global 2011)Ships built 2011 onwardsEngines > 130 kW

Tier III (ECAs 2016)Ships in designated areas, 2016 onwardsEngines > 130 kW

Tier I (present)Ships built 2000 onwardsEngines > 130 kW

Retrofit: Ships built1990 – 2000 Engines > 90 litres/cylinderand > 5000 kW

Dry/Wet Methods

4Selective Catalytic Reduction

Wärtsilä dual-fueltechnology

4 © Wärtsilä

Introduction - Emission control areas

existing ECAs: Baltic Sea, North Sea

planned ECAs: Coasts of USA, Hawaii and Canada

discussed ECAs: Coasts of Mexico, Coasts of Alaska and Great Lakes, Singapore, Hong Kong, Korea, Australia, Black Sea, Mediterranean Sea (2014), Tokyo Bay (in 2015)

Most used trading routes

Proliferation of ECA areas is expected in the next future

5 © Wärtsilä

How to eliminate SOX – Alternatives

Method / Solution Advantage Disadvantage

ScrubberInstallation of exhaust gas cleaning system

Lowest costUse everywhereEasy operationWorks with high % S

ROI depends on LSHFO fuel price

1.5 % S fuel or MDOSwitch over in SECA areas

FlexibleSmall investment

High operating costFuel change overFuel availabilityBN management

MDORun full time on MDO

ConvenientNo change over

High operating costTank size

Other

Emission trading. Not yet in force for SOX

Cold ironing (shore power). Only possible at berth – not a solution for SOX abatement at sea.

Fresh water scrubber working principle

• Closed loop works with freshwater to which NaOH is added for the neutralization of SOX

• Closed-loop means zero discharge in enclosed area

• Parasitic losses approx. 0.5% of the fuel consumption (3% on SW)

Scrubber

pH

pH

NaOH unit

Fresh water

Water Treatment

Cooling

Exhaust gas

Seawater

Process tank

Holding tank

Sludge tank

10 m3/MWh(50 m3*)

0.1 m3/MWh 0.1 m3/ MWh(50 m3*)

0.1 m3/MWh (>50 m3)

1.3 dm3/MWh

* Values in brackets are related to sea water / open loop based systems for comparison

QuickTime™ and a decompressor

are needed to see this picture.

Scrubber Working Principle

September 8th, 2011 Wärtsilä Dan Veen8 © Wärtsilä

Or….gas as a fuel

Why natural gas?

It is Safe:

• Narrow ignition area.

• High ignition temperature (> 500 °C).

• Slow flame rate in atmospheric pressure.

• LNG does not burn, it has to evaporate first.

It is Clean:

• No Particulates.

• 85% lower Nox, 20-30% lower CO2, no SOx

• Meets the future Tier3 /CCR4 requirements

It is Available:• 250 years outlook with current gas reserves.

Wärtsilä Dan Veen10

September 8th, 2011

Lower Flammability Level, LFL

- Pipe leaks are ventilated, mixture stays too lean for ignition

- Storage tanks have a too rich environment for ignition

Wärtsilä Dan Veen

% of methane in air

LFL, 5% methane

50% LFL, 2,5% methane

Upper Flammability Limit, 15% Methane

11 September 8th, 2011

LNG ship - Emissions

CO2 NOX SOX

CO2 -30%

NOX -85%

SOX -99.9%

12

Dual-fuel engine characteristics

High efficiency

Low gas pressure

Low emissions High efficiency Clean fuel Lean-burn combustion

Fuel flexibility Gas mode: Natural gas + MDO pilot Diesel mode: MDO + MDO pilot / HFO + MDO pilot Transfer between modes without loss of power and speed.

Extensive output range Wärtsilä 20DF: 1.0 to 1.6 MW Wärtsilä 34DF: 2.7 to 9.0 MW Wärtsilä 50DF: 5.7 to 17.55 MW

13 © Wärtsilä

Main components – gas fuel supply system

Storage tank

Bunkering station

LNG / gas treatment

Gas valve unit

DF-engine

14 © Wärtsilä

C-type tanks – below deck

September 8th, 201115 © Wärtsilä Wärtsilä Dan Veen

C-type tanks - Alternative arrangement

September 8th, 201116 © Wärtsilä Wärtsilä Dan Veen

LNG storage alternatives

September 8th, 201117 © Wärtsilä Wärtsilä Dan Veen

LNG tank location

The LNG tanks are located on the upper deck behind the superstructure

– Located outside

• Good ventilation– No ventilation casing needed trough

accommodation– Vent pipe for tanks still needed– Visible location for good PR

18 © Wärtsilä

LNG BuSINESS CASE

Emission Legislation and Fuel price

Slowly increasing aw

arenessLocal requirem

ents - mainly PP

World Bank 1998

Word Bank 2000 and IM

O Tier I

IMO fuel S cap in SECA

World Bank 2008

Tighter IMO

fuel S cap IM

O Tier II

Tighter IMO

fuel S cap

IMO

Tier IIIG

lobal tight fuel S cap

and CO

2 /CH

4 trading

EPA Marine Tier 3

EPA Marine Tier 4

EPA Marine Tier 2

HFO priceindication

Indication ofemissionactivity level

Estimation byMarine and Energy Consulting(IBC 2009)

Alternativemoderate estimation

A typical Baltic Sea cargo ship

September 8th,2011 Wärtsilä Dan Veen21 © Wärtsilä 21

547 TEU container vessel (5000 GT) Propulsion power 3960 kWSource DNV

SOx NOx CO2 Particle emissions

With LNG fuel: 0 31 5 500 0

With low-sulphur HFO (LS380 with 1% sulfur): 50 180 7 250 4

Yearly emissions, tonnes/year

A typical Baltic Sea cargo ship

22 © Wärtsilä 22

Typical Baltic Sea cargo ship of approximately 2,700 gross tonnes, 3,300 kW main engine and 5,250 yearly sailing hours.

LNG Capex +2,5 Million EUR compared to MGOScrubber Costs 1 Million EUR

Source DNV

LNG MGO HFO

CAPEX LNG Cryogenic Tank / 2 tanks when mono fuelGas Valve UnitsDouble Walled PipingAutomation

SCR (as of 2016) Heater UnitsBooster UnitsScrubbers (as of 2015)SCR (as of 2016)

OPEX Lower fuel costsLower cargo capacity (?)

Higher Fuel Costs Lower fuel costs

In the end it all adds up….

23 © Wärtsilä

Source: DNV Baltic Report

Business Case Best option varies for every vessel:• Time Spend in (S)ECA area• Fuel Consumption• Remaining vessel lifetime• Caustic Soda price• Scrubber pricing• Conversion costs• …….

And Most Important:• Fuel Prices

September 8th, 2011 Wärtsilä Dan Veen24 © Wärtsilä

Questions ?