The LNG Fuel Solution in Shipping Dr Gerd Würsig (Segment Director)

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The LNG Fuel Solution in Shipping Dr Gerd Würsig (Segment Director) The LNG fuel solution in shipping Dr Gerd Würsig (Segment Director), 1 DNV GL © SAFER, SMARTER, GREENER Gas for propulsion- before year 2000 . CNG as fuel in ships in Russia, Netherlands, US, Canada, Australia . Gas engine installations offshore (FPSOs) . LNG carriers (dual fuel boiler / steam turbine propulsion) . Today about 400 LNG Carriers DNV GL © 2 The development trend is moving from LOCAL … 2000 – 2013 Norway 3 DNV GL © … to GLOBAL … 4 DNV GL © 59 LNG fuelled ships in operation worldwide (1/2) Ships in operation Year Type of vessel Owner Class Year Type of vessel Owner Class 2000 Car/passenger ferry Fjord1 DNV 2012 PSV Eidesvik DNV 2003 PSV Simon Møkster DNV 2012 PSV Olympic Shipping DNV 2003 PSV Eidesvik DNV 2012 PSV Island Offshore DNV 2006 Car/passenger ferry Fjord1 DNV 2012 General Cargo Nordnorsk Shipping DNV 2007 Car/passenger ferry Fjord1 DNV 2012 PSV Eidesvik Shipping DNV 2007 Car/passenger ferry Fjord1 DNV 2012 PSV Island Offshore DNV 2007 Car/passenger ferry Fjord1 DNV 2012 Car/passenger ferry Torghatten Nord DNV 2007 Car/passenger ferry Fjord1 DNV 2012 Car/passenger ferry Torghatten Nord DNV 2008 PSV Eidesvik Shipping DNV 2012 Car/passenger ferry Torghatten Nord DNV 2009 PSV Eidesvik Shipping DNV 2013 PSV REM DNV 2009 Car/passenger ferry Tide Sjø DNV 2013 RoPax Viking Line LR 2009 Car/passenger ferry Tide Sjø DNV 2013 Car/passenger ferry Torghatten Nord DNV 2009 Car/passenger ferry Tide Sjø DNV 2013 Tug Incheon Port Authority KR 2009 Patrol vessel Remøy Management DNV 2013 General Cargo Eidsvaag DNV 2009 Car/passenger ferry Fjord1 DNV 2013 RoPax Fjordline DNV 2010 Patrol vessel Remøy Management DNV 2013 High speed RoPax Buquebus DNV 2010 Car/passenger ferry Fjord1 DNV 2013 Tug CNOOC CCS 2010 Patrol vessel Remøy Management DNV 2013 Tug CNOOC CCS 2010 Car/passenger ferry Fjord1 DNV 2013 Car/passenger ferry Norled DNV 2010 Car/passenger ferry Fjord1 DNV 2014 Car/passenger ferry Norled DNV 2010 Car/passenger ferry Fosen Namsos Sjø DNV 2014 Tug Buksér & Berging DNV 2011 PSV DOF DNV 2014 RoPax Fjordline DNV 2011* Oil/chemical tanker Tarbit Shipping GL 2014 Patrol vessel Finish Border Guard GL 2014 Tug Buksér & Berging DNV 2011 Car/passenger ferry Fjord1 DNV 2014 Gas carrier Veder Rederijzaken BV 2011 PSV Solstad Rederi DNV 2014 Gas carrier Veder Rederijzaken BV 2012* Car/passenger ferry Fjord1 DNV Updated 17.03.2015 * Conversion project Excluding LNG carriers and inland waterway vessels 5 DNV GL © 59 LNG fuelled ships in operation worldwide (2/2) Ships in operation Year Type of vessel Owner Class 2014 Gas carrier SABIC BV 2014 Gas carrier SABIC BV 2014 PSV Remøy Shipping DNV 2014 General Cargo Egil Ulvan Rederi DNV 2014 General Cargo Egil Ulvan Rederi DNV 2015 PSV Harvey Gulf International ABS 2015 Ro-Ro Norlines DNV GL Updated 17.03.2015 * Conversion project Excluding LNG carriers and inland waterway vessels 6 DNV GL © 80 confirmed LNG fuelled newbuilds – DNV GL also first choice for future projects (1/2) Confirmed orderbook Year Type of vessel Owner Class Year Type of vessel Owner Class 2015 Ro-Ro Norlines DNV GL 2015 PSV Siem Offshore DNV GL 2015 Car/passenger ferry Society of Quebec ferries LR 2015 PSV Siem Offshore DNV GL 2015 Car/passenger ferry Society of Quebec ferries LR 2015* Oil/chemical tanker Furetank Rederi BV 2015 Car/passenger ferry Society of Quebec ferries LR 2015 Container ship TOTE Shipholdings ABS 2015 PSV Harvey Gulf Int. ABS 2016 Container ship TOTE Shipholdings ABS 2015* Oil/chemical tanker Bergen Tankers LR 2016 PSV Harvey Gulf Int. ABS 2015 Car/passenger ferry AG Ems DNV GL 2016 Icebreaker Finnish Transport Agancy LR 2015* Car/passenger ferry AG Ems DNV GL 2016 PSV Siem Offshore DNV GL 2015 Car/passenger ferry Samsoe municipality DNV GL 2016 PSV Siem Offshore DNV GL 2015 Tug CNOOC CCS 2016 Gas carrier Chemgas Shipping 2015 Tug CNOOC CCS 2016 Oil/chemical tanker Terntank BV 2015 Tug Drydocks World 2016 Oil/chemical tanker Terntank BV 2015 PSV Siem Offshore DNV GL 2016 Oil/chemical tanker Terntank BV 2015 PSV Siem Offshore DNV GL 2016* Ro-Ro TOTE Shipholdings ABS 2015 PSV Simon Møkster Shipping DNV GL 2016* Ro-Ro TOTE Shipholdings ABS 2015 PSV Harvey Gulf Int. ABS 2016 Car carrier UECC LR 2015 PSV Harvey Gulf Int. ABS 2016 Car carrier UECC LR 2015 PSV Harvey Gulf Int. ABS 2016 Car/passenger ferry Boreal DNV GL 2015 Tug NYK NK 2016 Car/passenger ferry Boreal DNV GL 2015 Gas carrier Chemgas Shipping 2016 Container ship GNS Shipping ABS 2015 Gas carrier Evergas BV 2016 Container ship GNS Shipping ABS 2015 Gas carrier Evergas BV 2016 Ro-Ro SeaRoad Holdings DNV GL 2015 Gas carrier Evergas BV 2016 Car/passenger ferry BC Ferries LR 2015 Bulk ship Erik Thun LR 2016 Car/passenger ferry BC Ferries LR 2015 Container ship Brodosplit DNV GL 2016 Gas carrier Ocean Yield DNV GL 2015 Container ship Brodosplit DNV GL 2016 Gas carrier Ocean Yield DNV GL Updated 17.03.2015 * Conversion project Excluding LNG carriers and inland waterway vessels 7 DNV GL © 80 confirmed LNG fuelled newbuilds – DNV GL also first choice for future projects (2/2) Confirmed orderbook Year Type of vessel Owner Class 2016 Car/passenger ferry Seaspan Ferries BV 2016 Car/passenger ferry Seaspan Ferries BV 2016 Gas carrier Navigator Gas ABS 2016 Gas carrier Navigator Gas ABS 2016 Gas carrier Navigator Gas ABS 2016 Gas carrier Navigator Gas ABS 2016* RoPax Baleària BV 2016 Container ship Universal Marine DNV GL 2016 Container ship Universal Marine DNV GL 2016 Cable layer DEME Tideway DNV GL 2017 Container ship Universal Marine DNV GL 2017 Container ship Universal Marine DNV GL 2017 Tug Østensjø Rederi 2017 Tug Østensjø Rederi 2017 Tug Østensjø Rederi 2017 RoPax Rederi AB Gotland DNV GL 2017 Oil/chemical tanker Groupe Desgagnés BV 2017 Oil/chemical tanker Groupe Desgagnés BV 2017 Container ship GNS Shipping ABS 2017 Container ship GNS Shipping ABS 2017 Car/passenger ferry BC Ferries LR 2017 Oil/chemical tanker Terntank BV 2017 Container ship Crowley Maritime DNV GL 2017 Container ship Crowley Maritime DNV GL 2017 Car/passenger ferry Tallink BV 2018 Container ship Matson Navigation DNV GL 2018 Container ship Matson Navigation DNV GL Updated 17.03.2015 * Conversion project Excluding LNG carriers and inland waterway vessels 8 DNV GL © LNG uptake by vessel segment Updated 17.03.2015 Excluding LNG carriers and inland waterway vessels 9 DNV GL © DNV GL – trusted partner for LNG fuel projects Updated 17.03.2015 Excluding LNG carriers and inland waterway vessels 10 DNV GL © LNG as a fuel for ships - the content in the rules exist - . 2001 first DNV Class rules for gas fuelled ships 2000 . 2004 NMD proposal to develop the IMO IGF Code . 2010 IMO MSC.285(86) in force . 2014 IMO IGF-Code: International Code of safety for ships using Gases or other low- flashpoint Fuels (approved in principle by MSC 94 in Nov 2014) . 2013 ISO Guidelines for systems and installations for supply of LNG as fuel to ships (ISO TS 18683, Jan 2015) . DNV-GL RP-G106: Recommended Practice for the development and operation of LNG bunker facilities (published Nov 2013) 2013 March 2015: In operation: 59 ships (2000/2014) Under construction: 80 ships (2015/2018) DNV GL © 2014 Legislation supports the use of clean fuels - Possible developments towards 2030 - Adopted EU Recycling Regulation US BW requirements EEDI phase 1 EEDI phase 2 NOx tier III for new 0.1% ECA sulphur EU 0.5% sulphur builds in North EEDI phase 3 limit cap America 2015 2016 2018 2020 2025 2030 Ballast Water EU CO2 monitoring, Operational BC, noise, bio- Convention - entry reporting and requirements on fouling and VOC EEDI phase 4 into force verification CO2 regulation Additional ECAs 0.5% global sulphur established cap HK Recycling convention ratified Global CO2 monitoring, reporting Possible and verification 0.5% global sulphur cap DNV GL © 12 What happened to the energy prices during the life time of a ship (25 years: 1990/2015)? Middle of March 2015 4 • IFO 380: 9,09 $/mmBTU=349 $/t 6 • MGO 0,1% S: 15,34 $/mmBTU= 622 $/t • Gas TTF: 7,86 $/mmBTU (lhv) 5 2 1 3 1 4 2 5 3 6 Prices in the figures: yearly average until 2014. 2014 spot prices at the beginning of the month Lhv used for gas. 13 DNV GL © DNV GL internal use only Low oil price is not possible even on the mid term time scale 14 DNV GL © There are different options for dealing with ECAs, each with unique risk aspects making investment decisions difficult Main options for most ships to comply in ECA: Alternative options: Biofuels LNG Scrubber Fuel switch Methanol Option Hydrogen • Lower bunker cost • Easier retrofit No additional • Compliance Battery • Investment cost CAPEX needed • Proven solution Other fuels? Benefits • Technical maturity • Availability • Operating cost High operating • Price • Handling cost Risk Technical maturity • chemicals 15 DNV GL © MGO Scrubber LNG Other (LNG Ready service) (Methanol, Battery ++) Fuel decision ECA and fuel decision support Business Case Concept Scrubber Concept Detailed tech review Concept selection & design feasibility HAZID benchmarking review study Engine/tank Makers Concept selection selection HAZID review review Initial Technology Technology design Approval Qualifica- Qualification in principle tion Risk assessment Risk assessment DNV GL © 16 DNV GL internal use only GAS READY (X1, X2, X3, …) where qualifier XN is: XN Content Comment GAS D The design for the ship with LNG as fuel is found to be in Mandatory READY compliance with the GAS FUELLED notation rules applicable for the new-building, ref.
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