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1 < > MAN Diesel & Turbo 23.02.2017 Future Fuels HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG Coal Slurry MSAR Methanol Biofuel DME Hydrogen Gasoline Glycerine Marine market: Future Fuels 2020 and Beyond Kjeld Aabo Customer support MAN Diesel & Turbo Copenhagen, Den Presentation to CIMAC Circle at Nor shipping 2017 Oslo, Norway, 31st May 2017

DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

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Page 1: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

1 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

H

FO

Distillates

ULSFO (Ultra Low Sulphur Fuel Oil)

LN

G

Ethane

LP

G

Co

al S

lurr

y MSAR

Methanol

Biofuel

DME

Hydrogen

Gaso

line

Glycerine

Marine market: Future Fuels 2020 and Beyond

Kjeld Aabo

Customer support

MAN Diesel & Turbo

Copenhagen, Den

Presentation to CIMAC Circle at Nor shipping 2017

Oslo, Norway, 31st May 2017

Page 2: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

THE INTERNATIONAL COUNCIL ON COMBUSTION ENGINES

Report of WG7 ‘Fuels’ 35 members

9 on waiting list

Represented stakeholders

Refiners, Suppliers, OEMs, Ship Operators, Fuel Testing Labs, Classification Societies and others

Co-operation with

All CIMAC WGs in case of common topics

ISO8217 fuels group (very close relationship)

Latest Publications

Guideline providing answers to FAQ from ISO 8217:2017 (Mar 2017)

Guideline on the Interpretation of Marine Fuel Analysis Test Results (Feb 2016)

Guideline on Filter Treatment of Residual Fuel oil (Dec 2015)

Position paper: New 0.10% sulphur marine (ECA) fuels (June 2015)

Guideline: Cold flow properties of marine fuel oils (Jan 2015)

06/04/2017 2 CIMAC WG Report April 2017

Page 3: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

THE INTERNATIONAL COUNCIL ON COMBUSTION ENGINES

No 73: October 2015, France

No 74: April 2016, Germany

No 75: September 2016, NL

No 76: March 2017, Switzerland

Report of WG7 ‘Fuels’ – page 2

Current activities, subgroups

High priority SGs

SG 1-1 CFR (centrifuges and efficiency)

SG 5 LNG quality

SG 7 Emulsion fuels

SG9 Fuel grade framework

Low priority SGs

SG 1-2 Separators

SG 6-1 Sampling of marine fuels

SG10 Niche fuels

06/04/2017 3

Recent and upcoming meetings

CIMAC WG Report April 2017

Page 4: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

THE INTERNATIONAL COUNCIL ON COMBUSTION ENGINES

06/04/2017 4

12

5

7

4

4

2

2

Representation in WG7 by sector

CIMAC WG Report April 2017

Page 5: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

THE INTERNATIONAL COUNCIL ON COMBUSTION ENGINES

06/04/2017 5

Representation in WG7 by country

CIMAC WG Report April 2017

Page 6: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

6 < > MAN Diesel & Turbo GGK Company Presentation 2016

Technology Trends for New Ships

Mega CV, VLCC, VLOC, VLGC vs smaller vessels ?

Hull Line Optimising vs Propeller Speed Optimising ?

Global Sulphur Cap - Gas, High S or Low S Fuel ?

With or Without TIII Equipment ?

Digitalisation on the way

Better Efficiency and Lower Cost is called for.

Page 7: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

7 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

Influencing Factors on Fuel Choice

Fuel choice

Fuel price

CAPEX and OPEX

Emission limitations

Logistics

Flexibility

(dual fuel)

Sustainability of fuels

Page 8: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

8 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

Fuel Types

Residual Distillates ULSFO Methane Methanol LPG Ethane Biofuel (2nd+3rd gen.)

MAN Diesel & Turbo supports all

Page 9: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

9 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

What other Fuels and Plants can be

Relevant for Future Propulsion?

Batteries instead of GenSets and power peak-shaving?

Fuel cells?

Use of hydrogen in a diesel engine?

Nuclear power?

Sails, kits and solar panels?

Gas turbines ? ( Also MDT )

Page 10: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

10 < > MAN Diesel & Turbo SAKL/EELCC

Fuel price development

0

5

10

15

20

25

30

35

40

$/GJ Fuel prices

Source: Børsen, Bunkerindex, EIA & Methanex

Propane (US)*

HFO (Rotterdam)

Methanol (US)*

MGO (Rotterdam)

LNG (US)** US Export prices

Data retrieved end March 2017

Page 11: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

11 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

Remaining Oil Reserves

BP (2010):

Oil consumption: 4028 x 106 tonnes/year

Oil production: 3913 x 106 tonnes/year

World reserves: 188,8 x 109 tonnes/year

Years of consumption: 188 800/4 028 = 47 years Proven reserves in billions of barrels, Source Oil & Gas Journal

Page 12: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

12 < > MAN Diesel & Turbo

Liquid Marine Fuel will not Go Away. Low Sulphur Fuels,

incl Gas, will be more dominant.

MBDOE

LNG

Distillate

Fuel and Other

Combustibles

Courtesy ExxonMobil

Marine

Marine

Aviation

ExxonMobil suggest that 12 % of the fuel then will be gas in 2040.

This estimate is roughly confirmed by the Fuel oil suppliers in general.

Page 13: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

13 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

New Fuel Types < 0.1% Sulphur

There are a range of new fuels being launched at the moment.

These are not distillate types, rather new blends or types.

General characteristics are:

Higher viscosity than distillate

Some may contain cat fines (Al+Si)

Some have high pour points

Compatibility with other fuels may also be an issue.

Page 14: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

14 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

Production of Low-Sulphur HFO

• Sweet crude oil

• Refining – desulphurisation

• Blending – high-sulphur residual fuels with

low-sulphur distillates

• Residue-thickened distillate fuel.

• Hydro-processed vacuum gas oil,

• Use of hydro-cracker

Complex Refinery Process

Page 15: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

15 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

MAN Investigation of

Scrubber Technology

Objectives Participants Scrubber Goals Test results Ship test Ship test

Development

and test of

scrubber for

after-

treatment

Clean Marine

MAN Diesel

PM trapping:

>90%

SOX removal:

>67%

PM trapping:

35%

80% (salts add.)

SOX removal:

73%

95% (salts add.)

M.V. Banasol

7S50MC-C

9MW

Development

and test of

scrubber for

after-

treatment

Aalborg

Industries

Alfa Laval

DFDS

MAN Diesel

PM trapping:

>75%

SOX removal:

>95%

PM trapping:

79%

SOX removal:

100% (NaOH)

Tor Ficaria

9L60MC-C

20MW

Development

and test of

scrubber for

after-

treatment and

EGR

APM

MAN Diesel

PM trapping:

>75%

SOX removal:

>90%

PM trapping:

73%

SOX removal :

96% (NaOH)

Alexander

7S50MC

9MW

Tests and future

3336461.2009.09.0 LE/SBJ

Page 16: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

16 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

Clean LNG supply Coming to Liner Ports

within 3-5 Years

Page 17: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

17 < > MAN Diesel & Turbo

Comparison of Supply Chain

Export terminal

Floating vessels

STS

LNG-Fueled

vessels

LNG supply ships

(Refrigerated)

STS

Refinery

LPG supply ships

(Pressurized)

STS

LPG-Fueled

vessels

Only 5 vessels

exist

$30mil/vessel

Around 1,000

vessels

$10mil/vessel

Export terminal

Page 18: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

18 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

Methanol Demand Applications

Courtesy of Methanex

Feedstock: Abundant/Sustainable Market: Large/Diverse

Page 19: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

19 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

MAN B&W Two-Stroke Engines MDT Cylinder lube oil standard

Page 20: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

20 < > MAN Diesel & Turbo 23.02.2017 Future Fuels

What will we see in 2020 and beyond

at the Marine Marked. ?

More use of Scrubbers and HFO together.

Many different residuals/diesel 0.5% sulphur fuel-oils.

More vessels using LNG, LPG, methanol, ethane…

But how much depends on price and availability.

Challenges with new fuels, and we need to be prepare and ready to

adapt designs, lubes, auxiliary systems,…

We need to be alert to new Fuels and prepare new CIMAC Fuel

recommendations and ISO standards.

2020-2030 will be a period of uncertainty before the fuel winners

and losers become clear.

Page 21: DME - CIMAC · 2017-06-07 · MAN Diesel & Turbo Future Fuels  Customer HFO Distillates ULSFO (Ultra Low Sulphur Fuel Oil) LNG Ethane LPG y MSAR Methanol Biofuel

21 < > MAN Diesel & Turbo GGK Company Presentation 2016

All data provided in this document is non-binding. This data serves informational purposes only and is

especially not guaranteed in any way. Depending on the subsequent specific individual projects, the relevant data may be

subject to changes and will be assessed and determined individually for each project. This will depend on the particular

characteristics of each individual project, especially specific site and operational conditions.