LNG Fuel for Shipping

Transcription

1 Clean North Sea Shipping Conference London Martin Crawford-Brunt DNV is a provider of classification, verification and advisory services to the Oil & Gas, shipping and Energy markets "What we do" Classification Verification Advisory "Who we serve" Oil & Gas Shipping Energy 2 1

2 NOx abatement Humid inlet air Exhaust Gas Recirculation Questions: Removal efficiency Space/ Weight Chemicals Energy Selective Catalytic Reduction, SCR Low-NOx engine Documentation LNG engine Crewing Answers? 3 NOx Abatement - Selective Catalytic Reactor Reaction with ammonia as reductant: 4NO + 4NH3 + O2 4N2 + 6H2O 2NO2 + 4NH3 + O2 3N2 + 6H2O Concerns: Sulphur may pollute the catalyst Low efficiency at low load Minimum temperature required (challenge for 2-stroke) 4 2

3 SOx Scrubbing Scrubbed & re-heated exhaust gases Efficiency potential: >95 % SOx >40 % PM Overboard Discharge of cleaned water Intimate mixing of exhaust gas and sea water Sea Water Separation and Filtration Plant S.W. Inlet S.W. to cyclone separator & heat exchanger Exhaust Gases Sludge ashore to authorised contractor 5 IMO - Scrubber discharge regulations IMO Guidelines for Exhaust Gas Cleaning Systems adopted at MEPC59, including requirements for monitoring and discharge of wash water Requires monitoring of: ph PAH Turbidity (suspended particles) Nitrates Temperature 6 3

4 Scrubber principles and systems Questions: Open Loop Waste Stream Space/ Stability Chemicals Closed loop with NaOH Vortex / Cyclone Dry scrubber Energy Input Compliance Crew workload Open loop Sea water CSNOx SOx 93% NOx 82% CO 2 74% 7 ECA trading 3 options for SOx removal! 1. 1 LNG as fuel 2. 2 Scrubbers for exhaust gas purification 3. 3 Low sulphur fuel or fleet redeployment, i.e. give up trading in ECAs! The industry is here LNG fuel Sail ships Coal fuelled ships Oil fuelled ships Scrubber Low sulphur fuel NOx demands

5 LNG is supreme for SOx, NOx and PM removal Applies for a typical general cargo ship 3300 kw installed 9 The LNG fuelled fleet in service and on order Ships in operation Year Type of vessel Owner Class Engine type 2000 Car/passenger ferry Fjord1 DNV Gas 2003 PSV Simon Møkster DNV DF 2003 PSV Eidesvik DNV DF 2006 Car/passenger ferry Fjord1 DNV Gas 2007 Car/passenger ferry Fjord1 DNV Gas 2007 Car/passenger ferry Fjord1 DNV Gas 2007 Car/passenger ferry Fjord1 DNV Gas 2007 Car/passenger ferry Fjord1 DNV Gas 2008 PSV Eidesvik Shipping DNV DF 2009 PSV Eidesvik Shipping DNV DF 2009 Car/passenger ferry Tide Sjø DNV Gas+Diesel 2009 Car/passenger ferry Tide Sjø DNV Gas+Diesel 2009 Car/passenger ferry Tide Sjø DNV Gas+Diesel 2009 Patrol vessel REM DNV Gas+Diesel 2009 Car/passenger ferry Fjord1 DNV Gas+Diesel 2010 Patrol vessel REM DNV Gas+Diesel 2010 Car/passenger ferry Fjord1 DNV Gas+Diesel 2010 Patrol vessel REM DNV Gas+Diesel 2010 Car/passenger ferry Fjord1 DNV Gas+Diesel 2010 Car/passenger ferry Fjord1 DNV Gas+Diesel 2010 Car/passenger ferry Fosen Namsos Sjø DNV Gas+Diesel 2011 PSV DOF DNV DF 2011 Chemical tanker Tarbit Shipping GL DF 2011 Car/passenger ferry Fjord1 DNV Gas 2011 PSV Solstad Rederi DNV DF 2011 Inland/port tanker Argonon/Deen LR DF Confirmed orderbook Year Type of vessel Owner Class Engine type 2012 General Cargo Nordnorsk Shipping DNV Gas 2012 PSV Olympic Shipping DNV DF 2012 PSV Eidesvik DNV DF 2012 PSV Eidesvik DNV DF 2012 Ro-Ro Sea-Cargo DNV Gas 2012 Ro-Ro Sea-Cargo DNV Gas 2012 High speed RoPax Buquebus DNV DF Turbine 2012 PSV Island Offshore DNV Gas+Diesel 2012 PSV Island Offshore DNV Gas+Diesel 2012 PSV REM DNV DF 2013 General Cargo Eidsvaag Gas 2013 Ro-Ro Norlines DNV Gas 2013 Ro-Ro Norlines DNV Gas 2013 Car/passenger ferry Torghatten Nord DNV Gas 2013 Car/passenger ferry Torghatten Nord DNV Gas 2013 Car/passenger ferry Torghatten Nord DNV Gas 2013 Car/passenger ferry Torghatten Nord DNV Gas 2013 RoPax Viking Line LR DF 2013 PSV Harvey Gulf Int. Marine ABS DF 2013 PSV Harvey Gulf Int. Marine ABS DF 2013 Patrol vessel Finish Border Patrol DF 2013 Car/passenger ferry Society of Quebec ferries DF 2014 Car/passenger ferry Society of Quebec ferries DF Planned conversion Year Type of vessel Owner 2011 Car/passenger ferry Fjord1 DNV Gas DF= Dual Fuel engine Gas+Diesel= Separate LNG and diesel fuelled engines Gas= Lean burn (mono fuel) LNG engine 10 5

6 The technology is available and in use today 11 and there are many confirmed projects: 2020 guess:

7 LNG Safety 13 What is LNG Condensed natural gas Volume reduced by factor 600 for transportation LNG is a cryogenic* hydrocarbon liquid. - Contains mainly methane with traces of LPG and Nitrogen - SO 2, CO 2, H 2 O, C6+ and other contaminants removed to allow for cooldown without frost formation, lean fuel. - Normally stored at atmospheric pressure where it boils at -160 deg C - Heat from surrounding will cause boil off. If boil off is contained the pressure and temperature will rise. Alternatively the boil off can be re-liquefied. Density of LNG is approximately 450 kg/ m 3 Energy content of 1m 3 LNG corresponds to 0.65 m 3 diesel Natural gas is flammable (as all fuels) Natural gas is non toxic *Very low temperature LNG 600 x 14 7

8 LNG compared to other Hydrocarbon liquids. - The combustion characteristics are less severe than other hydrocarbons - Ignition requires higher temperatures compared to other HC - The cold and dense gas close to the release and directly above the boiling liquid pool is too rich for ignition - Diluted and flammable gas is buoyant - Burning characteristics are less aggressive than eg propane; detonations are highly unlikely - The cryogenic properties are particular for LNG and require special attention 15 LNG Additional Safety Considerations Releases can lead to - frost burns and personnel injuries - brittle fractures exposed steel - flammable clouds - fires and explosions - RPT (Rapid Phase Transition or cold explosions ) 16 8

9 Procedures to safeguard against LNG releases Safeguards against releases comprise - Operational Procedures - Strict requirements to the integrity of the containment to avoid release - Personnel protective equipment - Protection of exposed structures - Fire and gas safeguards comparable with other hydrocarbons - Training related to the safe handling of LNG 17 Competance / Training 18 9

10 IGF code development Interim Guidelines finalized by IMO BLG 13 in 2009, resolution MSC.285(86) - Only for natural gas and internal combustion engines - Not mandatory - On going development Development of the IGF CODE has started - proposed - Include other gases than methane/ natural gas, also low flashpoint liquids - Include other machinery types like fuel cells, gas turbines etc. September 2009 putting fuel cell on board LNG fuelled Viking Lady for testing (FellowShip project) 19 ISO standard on LNG bunkering Objective: Develop standard for LNG bunkering equipment and procedures Initiated June 2011, duration 4-5 years. Port and bunkering operations for LNG - Universal standard required - Address fully safety considerations 20 companies and individuals have already indicated interest for participation, representing the following countries: - Norway, Belgium, Brazil, Canada, China, France, Germany, Italy, UK 20 10

11 Proposal to TC67 WG10 (ISO standardisation on LNG): A new work Project Team should be established to prepare a new ISO document addressing: Guidelines for systems and installations for supply of LNG as fuel to ships. The proposal was presented by DNV and supported by all members of the SC France, Norway, Canada, Brazil, Japan, China indicated paricipation Norway offered to lead the PT. The document should be developed as a Technical Specification The document should be coordinated with the work related to LNG Fuelling systems for road transport. 21 Stakeholder Projects 22 11

12 LNG as fuel experience Substantial LNG as fuel advisory experience: - Assisting yards and owners with risk analysis (HAZID and HAZOP) of LNG fuelled vessels, bunkering operations, operating procedures and onshore LNG plants - Advisory services to yards, owners, ports and other stakeholders. Technology and market assessments. Mapping the implementation towards LNG as fuel for ships. 23 DNV examples LNG advisory projects - LNG bunkering in Belgium feasibility study - BunGas (JIP) bunker system for commercial vessel - Feasibility assessment for LNG bunkering (JIP) Singapore - LNG bunkering Ship to Ship (JIP) - Sweden. - LNG infrastructure in Southeast Asia (JIP) - Cost efficient ECA compliance for ship operators and mapping transition 24 12

13 Belgian Ports - Logistics model Scope: - To develop a logistics benchmarking model which enables the client to compare different logistics concepts for different LNG demand scenarios in three different ports i.e.: - To be used as a decision support* tool System boundaries: - From loading of feeder/bunker vessel and truck at LNG plant until unloaded at the LNG fuelled ship - From connection point gas grid/network until unloaded at the LNG fuelled ship 25 Context of the Study More stringent air emission requirements for seagoing vessels One of the possible solutions may be the use of LNG as an alternative fuel for shipping. The lack of adequate bunker facilities for LNG appears to be one of the obstacles for an effective breakthrough of this alternative fuel. Therefore a study to evaluate the possibilities and options for the organisation and facilitation of bunkering of LNG in ports has been instigated. The Flemish Government and the port authorities of Antwerp, Zeebrugge and Ghent, in cooperation with Fluxys LNG (an operator of the LNG terminal at Zeebrugge) are the initiators and stakeholders of this study

14 LNG bunkering station and LNG terminals Maritime LNG providers: Gasnor (dominates N Europe) Nordic LNG (Norway) Skagerak Energi (Norway) Barents LNG (Norway) Gassum OY (Finland) Clean Energy (USA) Excelerate Energy (USA) + newcomers! Norway 2010 Baltic Sea 2015? 27 Financial Drivers 28 14

15 The cost of fuel seems ever increasing Fuel represents the major share of daily costs for any ship Fuel costs will not become less important in the future Ref: PriceWaterhouseCoopers and US Energy Information Administration 29 Growing predicted price disparity oil /gas Increasing distillate prices (demand/ production)? Current LNG fuel sales price in Norway LNG fuel price development? Source: EIA 30 15

16 LNG pricing (volume basis) 4 USD/mmbtu USD/mmbtu USD/mmbtu 31 Economic benefits retrofit Ro-Ro within ECA Delta PV in MNOK (2010) Yard costs -45 Engine costs -14 Equipment costs -19 Loss of income -28 Reduced fuel costs 113 Reduced other OPEX 22 PV b.t. 29 Conversion of exiting ro/ro passenger vessel and 17 years remaining operation. LNG at 12$/mmbtu = 570$/ton and 2,4% inflation vs. MGO at 700 $/ton 32 16

17 LNG pricing in Norway Bulk price MDO 33 Infrastructure 34 17

18 Small scale LNG distribution in Norway 35 LNG fuel distribution 36 18

19 Ship to Ship (STS) transfer of LNG STS an important part of LNG distribution Operational bunkering process and technical solutions need to be developed ISO TC67/WG10 are establishing an international standard and guidelines for safe and time efficient STS LNG bunkering procedures DNV has been involved in several STS bunkering assessments examples - GOT LNG, BunGas, North European infrastructure project This includes concept studies for LNG bunker barges and bunkering vessels 37 Ship to ship LNG bunkering project Starting point for developing ship to ship bunkering procedures Mitigation measures for Hazids indentified in the study developed. Feasibility study bunkering within 50 minutes LNG transfer rate, approx 150 ton (300 m3)/hour 38 19

20 Many technical solutions developed Receiving vessel Bunker vessel LNG/Vapour return/diesel Lube oil/sludge Drip free break away couplings Spill tray Bunker port position Bollards position Mooring plan Pictures: LNG ship to ship bunker project 39 Guideline developed download 40 20

21 LNG Bunkering Example - Coast Centre Base, Ågotnes Base/ Harbour for vessels and companies serving offshore fields off Norway Location Kystbasen Ågotnes Cost Centre Base 21

22 LNG bunkering station, main components Jetty with bunkering equipment Shore based LNG tank Onshore tank arrangement LNG piping arranged underground 44 22

23 LNG transfer equipment 45 LNG bunkering checklist for crew 46 23

24 Supervision from ECR (1) 47 Supervision from ECR (2) 48 24

25 Gas piping on board Gas detector in ER 49 Ongoing transfer 50 25

26 LNG flange 51 Coastal oil bunker vessel with new type LNG tanks! A-type under approval Fuel from cargo boil-off Low cost propulsion Short engine room Design: Rolls Royce Merchant Solutions 52 26

27 Schematic overview of intended bunkering procedure Total time of operation 1-3 hours in total Before bunkering During bunkering After bunkering Call Arrival Mooring Connect el-grounding Checklist to receiving ship ESD cable (Connection link) Connection hose Purging, cooling Return of signed checklist Open manual valves Ready signal both ships Pump start sequence Transfer sequence Pump stop sequence Typical transfer rates: Truck: 50 m3/h LNG bunker vsl: m3/h (LNG carriers: > 1000m3/h) Shut manual valves Disconnection of hose Stripping/purging of cargo line (receiving ship) Disconnection link, el-grounding Delivery cargo document Un-mooring Departure Stripping/purging of cargo lines (bunker ship) Technology and innovation 54 27

28 Ready to retrofit an existing vessel for multi-fuel service The project has been based on: - MV Maersk Drury 5044 TEU - Built at HHI Ulsan Length o.a. 294,1 m - Deadweight mt - DNV class - 1 Main engine MAN B&W KW - 4 Auxiliary engines MAN 2100 KW each - 1 Auxiliary Boiler Aalborg Two auxiliary engines and auxiliary boiler to be modified for dual fuel operation (gas/hfo) 55 Conversion project outline The principal technical elements - Converting cargo hold to a Gas Technology Room - Additional LNG containers on deck - Total LNG fuel capacity m 3 - LNG supply via container only - Efficient bunkering solution - Minor loss of cargo space Timeline for completion - Project started March First LNG fuel onboard possible 2012 Limited economical benefit at least in the very beginning 56 28

29 Kawasaki Heavy Industries, Ltd. AiP to LNG Gas Fuelled 9,000TEU Container Carrier Length overall Breadth Draught LNG fuel tank : m : 48.4 m : 14.5 m : 7,000 m3 A twin island design maximising cargo space available for loading containers. A two stroke dual-fuel main engine which is electronically controlled with a high combustion efficiency coupled with a hull form optimised for safety and fuel efficiency. The engine may be equipped with an exhaust gas recirculation system (EGR) which satisfies IMO Tier-3 requirements for voyages in North American and European Emission Control Areas (ECAs). 57 Kawasaki Heavy Industries, Ltd. AiP to LNG Gas Fuelled 9,000TEU Container Carrier LNG fuel tank : 7,000 m3 The LNG is stored in prismatic low pressure insulated tanks (Type B). KHI has also adopted a unique technology, the Kawasaki Panel System, for heat insulation in order to reduce the rate of evaporation of LNG. Safety Assessment on gas fuelled ship installation will be conducted with DNV

30 Conceptual: Energy efficient designs, including LNG fuel. Product carrier ( tdw) with gas fuelled engines LNG fuel tanks on deck Fuel capacity: 22 days of operation LNG tanks on deck! Source: Stena 59 Liquid Natural Gas (LNG) as Fuel Drive for efficiency, cost reduction, improved energy efficiency & reduced CO 2 emissions m LNG fuelled Sea-Cargo vessel able to carry 5,600 tonnes of cargo, with up to 94 TEU of containers on deck and 1,240 lane-metres of ro-ro capability

31 Innovations of Triality - LNG fuelled 2 stroke slow speed main engines (300 bar pressure gas, dual fuel) Low pressure dual fuel auxiliary engines (or pure gas fuelled) Triple fuel boilers (Natural gas, fuel oil, VOC) MGO as pilot and backup fuel - No heavy fuel oil installations - Fulfils ECA requirements also at low load 61 LNG tanks Type C pressure tanks on cargo deck, 2 tanks of 6750 m3 LNG each - Enough for nm - Insulation on the outside - Inside deck house Benefits pressure tanks: - Simple operation - Safe tanks 62 31

32 Availability of LNG as bunkers 25,000 nm range. LNG supply generally in vicinity of crude oil terminals Evaluated bunkering in the Gulf could be a good option - LNG available, coupled to Henry Hub long term? Supplied by LNG bunker ship or bunker barge LNG price assumed in reference price scenario: 12 USD/ MMbtu (equals a HFO price of 455 USD/ton, taking energy density into account) 63 New generation multipurpose fishing vessel Improved safety Purse seine and pelagic trawling Oil spill, offshore windfarms LNG propulsion Improved efficiency 64 32

33 10 years of safe operation with LNG fuelled ships Rules since 2001 for LNG as fuel * LNG tankers excluded 65 LNG - Part of the environmental and commercial solution Technology exists today, and is proven small scale Requires proper risk mitigation measures LNG will be an increasing part of the fuel mix going forward Potential for modal shift short sea may accelerate adoption 66 33

34 Safeguarding life, property and the environment