LNG Shipping Seminar - GoLNG | Main page · LNG Shipping Seminar Small-scale distribution for costal and short-sea shipping Frederikshavn/Esbjerg ... Please note, that provided figures

LNG Shipping SeminarSmall-scale distribution for costal and short-sea shipping

Frederikshavn/Esbjerg

LNG Conversions yes/no/yes/no/yes/no/yes/no/yes

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© 2014 Rolls-Royce plcThe information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other

than that for which it is supplied without the express written consent of Rolls-Royce plc.

This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning

such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or

associated companies.

BD & MarketingStein Ruben Larsen

Agenda 2

• Rolls-Royce Overview

• Regulations

• Conversions

• Uncertain factors• Uncertain factors

• Business cases

• Examples

• Summary

Rolls-Royce Overview

Regulations (Why are we here today?)

2013EEDI & SEEMP

entered into force

2012Global Sulphur limit:

3,5 %

2011NOx tier II for

newbuildings

2010ECA Sulphur limit:

1.0 %

20132013EEDI & SEEMP

entered into force


3,5 %

2011NOx tier II for

newbuildings


1.0 %

Sulphur

NOx

CO2


0.1 %

2016NOx tier III for

newbuildings in ECA

2020202020 % CO2 reduction based

on EEDI for newbuildings



0.5 %

2025202530 % CO2

reduction based

on EEDI for

newbuildings

Note:Note:Tier IV in US not included

2020 Global limit for SOx to be

decided in 2018

US/AMERICA ECA EUROPE ECA

Conversions

LNG-Conversions

Not just: “Change the engine, install a fuel-tank and off we go”

Some topics that needs to be highlighted:

• Location of LNG tank

• Stability

• LNG piping arrangement

• Bunker-station(s)• Stability

• Ventilation capacity

• Cooling capacity

• Water glycol system

• Documentation

• Alarm-system

• Starting air system

• Bunker-station(s)

• Switchboard

• Backup systems (PTH)

• LNG control systems

• Crew competence

• Cold start issues

• Hazardous zones

Uncertain factors

Decision on how to comply with future regulations are divided into several options based on factors like:

• Time spent in ECA

• Age of vessel

• Engine size

• Financial situation

• Financial support

• SOx AND CO2• Engine size

• LNG availability

• LNG price (now and future)

• LSMGO price (now and future)

• HFO price (now and future)

• Maintenance cost

• Investment cost

• Payback-time

• SOx AND CO2

• Annual fuel consumption

• Conversion vs. Newbuilding

• Port regulations

• Which technology to chose

• Safety

• Change of charter (area)

Business cases

The following studies are roughly calculations done to highlight the difference between four options:

• Base case : Operate with HFO (base-case)

• Install scrubber and run with HFO

• Switch fuel from HFO to LSMGO

• Convert the vessel to run on LNG

Please note, that provided figures are for guidance only.

Business cases

Inputs used:

• Annual fuel consumption (HFO)

• Bunkers price (HFO, LSMGO and LNG)

• % of operational time in ECA

• Annual maintenance cost (Engine/Fuel system)• Annual maintenance cost (Engine/Fuel system)

• Investment cost (For Scrubber or LNG-system)

• Financial support

• LNG operations are calculated to be 18% more efficient

• 16 % more energy content in LNG vs HFO

• 2 % due to lower lub-oil consumption (50%) and efficiency of engine

Business case (example 1)

• 3000 mt annual HFO consumption

• HFO price: 580 USD/t

• LNG price: 810 USD/t

• LSMGO price: 950 USD/t

• Time in ECA: 80%

• Investment cost:

• LNG system: 5 MUSD

• Scrubber: 2 MUSD

• Financial support: NONE• Financial support: NONE





















Examples (of conversion projects)

BERGEN TANKERS

FJORDLINE

FJORD 1

Examples (of new-buildings)

Examples (of concepts)

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LNG Shipping Seminar - GoLNG | Main page · LNG Shipping Seminar Small-scale distribution for costal and short-sea shipping Frederikshavn/Esbjerg ... Please note, that provided figures