The Aalborg product range Sameer Kalra Vice President Marine & Diesel division 1
History 1919 1912 Aalborg Shipyard, Denmark established 1919 First Aalborg boiler built (Scotch marine type) 1937 Danish shipowners J. Lauritzen acquired Aalborg Shipyard 1944 First power station boilers built 1978 First After Sales service company established in Singapore and Rotterdam 1995 MISSION concept introduced 2000 Acquisition of Weisloch B.V., Netherland (Weisloch thermal fluid heaters) 2006 Acquisition of Gosfern Pty Ltd (Gosfern burners) and related control & safety systems, Australia and Smit Gas Systems (SMIT GAS inert gas systems), The Netherlands 2011 Alfa Laval acquires Aalborg Industries Alfa Laval Slide 3 Key areas Energy Safety Environmental Basic needs in many industries 2
Key areas and products Energy Safety Environmental Heat & steam Inert gas Waste heat recovery & emissions Marine product family Waste heat recovery Exhaust gas cleaning Boilers Thermal fluid system Heat exchangers Inert gas systems Energy Safety Environmental 3
Offshore product family Energy Safety Environmental Dual fuel fired low NOx burners and related safetysafety- and control systems Waste heat recovery Skid mounted inert gas systems Large steam capacity deck mounted boilers Land--based product family Land Industrial boilers Safety-- and control Safety systems Waste Heat Recovery Boilers Bio mass boilers Energy Safety Environmental 4
Key areas Energy Boilers our value proposition ENERGY Quality and reliability Lowest life cycle costs Power: Weight ratio Availabilty - Global after sales network 5
ENERGY Boiler and thermal fluid capacity range Pressure (barg) 50 40 Aalborg D (FPSO) Aalborg 3-Pass (Land-based) 30 Aalborg D Aalborg OL 20 Aalborg OM Aalborg TFO 10 Aalborg OS Aalborg OC 0 50 100 150 200 250 Boiler capacity from 1 to 120 t/h Thermal fluid heating capacity from 100 to 20,000 kw 300 350 400 450 Temp ( C) ENERGY Order value based on vessel type VLCC tanker LNG carrier Container ship Bulk carrier 6
Market size estimate former Aalborg portfolio ENERGY Offshore 80 million Industry 110 million Marine 300 million P&S not included Source: Clarkson, IMA Addressed market is vessels > 2000 dwt and Brazil land industry Key areas Safety 7
Why install inert gas systems? SAFETY T/T King Haakon VII cargo tank explosion 29 December 1969 SAFETY Inert gas our value proposition? Quality and reliability Large installed base references Availability - Global after sales network 8
Product range SAFETY System type: Inert gas generators Inert gas systems (flue gas type) Nitrogen systems Capacity: Up to 25,000 m 3 Up to 10,000 m 3 Up to 30,000 m 3 Installation: Product tankers Chemical tankers FPS LNG carriers LPG carriers Crude tankers Product tankers FPS Product tankers Chemical tankers FPS SAFETY Order value based on vessel type LNG carrier LPG carrier Chemical tanker Crude tanker 9
Market size estimate SAFETY Offshore 20 million Marine 80 million P&S not included Source: Clarkson, IMA Inert Gas Systems Mandatory for Tankers > 20,000 dwt Key areas Environmental Waste heat recovery 10
Waste heat recovery system traditional design...extract enough heat from exhaust gas for process needs Steam for ship service- 3~4 tons/hr Alfa Laval Slide 21 Waste heat recovery system modern design...extract as much heat from exhaust gas as economically feasible. From main engine From aux. engines Super heated steam for steam turbine: 5 MW power Steam for ship service :3 ~4 tons/h Alfa Laval Slide 22 11
Waste heat applications MARINE OFFSHORE LAND After diesel engines After gas turbines After process gas Market size estimate waste heat recovery Offshore 40 million Marine 50 million Industry 50 million P&S not included Source: Clarkson, IMA Alddresed market is vessels > 2000 dwt 12
Key areas Environmental Pure SOx Exhaust Gas Scrubber Stricter legislation sulphur emission Sulphur in fuel, % IMO MARPOL Annex VI Decision of MEPC 58 and 59 Exhaust Gas Cleaning allowed as alternative 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2000 2010 2015 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2020 Emission ControlledAreas Global EU Ports 13
Increasing emission controlled areas 1 2 2? 4 3 15% increase in LSFO demand ECA 1 North Europe? ECA 2 U.S + Canada Aug 2012 ECA 3 U.S Carribean - 2012 ECA 4 Japan ECA? Singapore? Australia? Med.?? Fuel price differential scenarios 1 100 Price graph HFO versus MGO (2010-2011) USD 1 000 900 800 700 600 500 400 0101 0423 0813 1203 0325 0715 2010 2011 USD 314 (07/11/2011) BWDI, MGO BW380, HFO Price difference HFO-MGO for 2020 estimated at 400 USD/mt (Source: POTEN & PARTNERS 2010) 14
Ficaria Seaways world s largest scrubber on a vessel Alfa Laval s PureSO x Market size estimate exhaust gas cleaning 20% adoption = 300~ 400 ships per yr. from 2018 Retrofit of 20% trading ECA and 10% of balance = 5,500 ships 2014-2025 Newbuildings Retrofit Long term average 1,500~2000 ships per year World fleet 50,000 ships on HFO Jokers Timing: Delay in implementation of emission regulations. Waste water regulations Adoption of LNG as fuel shore infrastructure Source: Clarkson, IMA All vessels > 2000 dwt 15
Growth Drivers Globalization, Energy, Environment & Increased living standards Transportation demand Natural gas as fuel and fuel prices Emissions regulations- SO x, NO x, CO 2 Demand for power in emerging markets R&D focus areas SO x mitigation Exhaust Gas Cleaning Energy savings Exhaust gas waste heat recovery Natural gas fuelled boilers for marine application NO x reduction Exhaust Gas Recirculation Boiler 16
Summary Strong market position and full range of products in the market niches served. Growth potential in end markets and geographies leveraging Alfa Laval s global presence. Trade growth, energy efficiency and emission legislation demands form a solid base for future growth opportunities. 17