1/20

15

Turbo

Efficient and profitable

Basic industry challenges

man magazine

02 03

1/2015

06

14

20

18

COVER STORY: MAN supported the globally operative Hengli

Group by installing new production trains at a PTA production plant in Dalian, China.

Turbo

maSThEad

maN magaziNE is published three times a year in English.

publiShEd bY MAN Diesel & Turbo SE, Dr. Jan Dietrich Müller, Group Communications & MarketingStadtbachstr. 1, 86153 Augsburg, Germany EdiTORS iN ChiEf Jan Hoppe, jan.hoppe@man.eu, Felix Brecht, felix.brecht@man.eu publiShER C3 Creative Code and Content GmbH, Heiligegeistkirchplatz 1, 10178 Berlin, Germany Tel.: +49 30 44032-0, www.c3.co, Shareholders of C3 Creative Code and Content GmbH are the Burda Gesellschaft mit beschränkter Haftung (limited liability company), Offenburg, and the KB Holding GmbH, Berlin, with 50% each. Sole share-holder of the Burda Gesellschaft mit beschränkter Haftung is the Hubert Burda Media Holding Komman-ditgesellschaft (limited partnership), Offenburg. Shareholders of KB Holding GmbH are Mr. Lukas Kircher (managing director, Berlin) and Mr. Rainer Burkhardt (managing director, Berlin) with 50% each.EdiTORS & auThORS Cedric Arnaud (resp./C3 Creative Code and Content GmbH, Arabellastraße 23, 81925 Munich), David Barnwell, Hamish Mackenzie, Goeff Poulton, Patricia Preston, Vicki Sussens, Asa C. Tomash, Harry Waterstone pROjECT maNagEmENT Marlene Freiberger gRaphiCS Micheline Pollach, Andrea Hüls phOTO EdiTOR Elke Latinovic, André KirschCOVER imagE Eric Gregory PowellpROduCTiON C3 Creative Code and Content GmbH pRiNTiNg Pinsker Druck und Medien GmbHPinskerstraße 1, 84048 Mainburg, GermanyREpROduCTiON permitted with reference. Any changes must be coordinated with the editors. COpYRighT ©2015 MAN Diesel & Turbo and C3 Creative Code and Content GmbH

Welcomeof maN diesel & Turbo.to the

WiTh ThiS fiRST iSSuE of MANmagazine by MAN Diesel & Turbo, we invite you to explore our universe of versatile technology. Join us on a world tour to Ecuador, Saudi Arabia, China and Switzerland to discover the fascinating and awe-inspiring details of cutting-edge power, marine and turbo applications. As a global player and oftentimes market leader, MAN Diesel & Turbo provides high-end power

engineering solutions for a broad customer range almost anywhere on the planet, and in this publication, we strive to bring our readers the most interesting, illuminating and useful topics and stories. We look forward to all of your feedback and hope you enjoy a good read.

Find a wide range of additional content online at > www.dieselturbo.man.eu

The best of the power Engineering world

04 “my home is with the customer” MAN Diesel & Turbo’s new CEO shares his view on the company’s strategy and markets.

06 paper dewatering The TURBAIR vacuum system supports paper production on a vast scale.

08 Testing the limits In Oberhausen, real-life assessments offer enhanced operation safety.

10 modern getaways With MAN’s fuel-saving technology, NCL embarks on a new era of cruising.

12 lighting up a brighter future Facing still-challenging conditions, Bangladesh is on the move.

14 protecting profitability Optimized machinery trains increase efficiency at a mega PTA plant in China.

18 local hero A new generation of gas turbines offers flexible solutions worldwide.

20 Sand & power Building a complete power plant in the middle of the desert is a daunting task. MAN takes on the challenge.

24 Two voices for one team MAN Diesel & Turbo and Fairbanks Morse join forces to tackle the world’s biggest gas market together.

26 gas giants Global LNG sourcing, transport and storage enters a new era.

30 Smart savings The EcoCam retrofit solution enhances fuel usage for low-load operations.

32 boom or bubble? Where is the global shipping market moving? Two experts share their views.

34 News Brief business updates from around the world

35 facts and figures Formidable insights and numbers

CONTENT

All information provided in this magazine is intended for general guidance only and is not intended to be used as a substitute for specific technical or commer-cial information and advice.

man magazine

02 03

1/2015

06

14

20

18

COVER STORY: MAN supported the globally operative Hengli

Group by installing new production trains at a PTA production plant in Dalian, China.

Turbo

maSThEad

maN magaziNE is published three times a year in English.

publiShEd bY MAN Diesel & Turbo SE, Dr. Jan Dietrich Müller, Group Communications & MarketingStadtbachstr. 1, 86153 Augsburg, Germany EdiTORS iN ChiEf Jan Hoppe, jan.hoppe@man.eu, Felix Brecht, felix.brecht@man.eu publiShER C3 Creative Code and Content GmbH, Heiligegeistkirchplatz 1, 10178 Berlin, Germany Tel.: +49 30 44032-0, www.c3.co, Shareholders of C3 Creative Code and Content GmbH are the Burda Gesellschaft mit beschränkter Haftung (limited liability company), Offenburg, and the KB Holding GmbH, Berlin, with 50% each. Sole share-holder of the Burda Gesellschaft mit beschränkter Haftung is the Hubert Burda Media Holding Komman-ditgesellschaft (limited partnership), Offenburg. Shareholders of KB Holding GmbH are Mr. Lukas Kircher (managing director, Berlin) and Mr. Rainer Burkhardt (managing director, Berlin) with 50% each.EdiTORS & auThORS Cedric Arnaud (resp./C3 Creative Code and Content GmbH, Arabellastraße 23, 81925 Munich), David Barnwell, Hamish Mackenzie, Goeff Poulton, Patricia Preston, Vicki Sussens, Asa C. Tomash, Harry Waterstone pROjECT maNagEmENT Marlene Freiberger gRaphiCS Micheline Pollach, Andrea Hüls phOTO EdiTOR Elke Latinovic, André KirschCOVER imagE Eric Gregory PowellpROduCTiON C3 Creative Code and Content GmbH pRiNTiNg Pinsker Druck und Medien GmbHPinskerstraße 1, 84048 Mainburg, GermanyREpROduCTiON permitted with reference. Any changes must be coordinated with the editors. COpYRighT ©2015 MAN Diesel & Turbo and C3 Creative Code and Content GmbH

Welcomeof maN diesel & Turbo.to the

WiTh ThiS fiRST iSSuE of MANmagazine by MAN Diesel & Turbo, we invite you to explore our universe of versatile technology. Join us on a world tour to Ecuador, Saudi Arabia, China and Switzerland to discover the fascinating and awe-inspiring details of cutting-edge power, marine and turbo applications. As a global player and oftentimes market leader, MAN Diesel & Turbo provides high-end power

engineering solutions for a broad customer range almost anywhere on the planet, and in this publication, we strive to bring our readers the most interesting, illuminating and useful topics and stories. We look forward to all of your feedback and hope you enjoy a good read.

Find a wide range of additional content online at > www.dieselturbo.man.eu

The best of the power Engineering world

04 “my home is with the customer” MAN Diesel & Turbo’s new CEO shares his view on the company’s strategy and markets.

06 paper dewatering The TURBAIR vacuum system supports paper production on a vast scale.

08 Testing the limits In Oberhausen, real-life assessments offer enhanced operation safety.

10 modern getaways With MAN’s fuel-saving technology, NCL embarks on a new era of cruising.

12 lighting up a brighter future Facing still-challenging conditions, Bangladesh is on the move.

14 protecting profitability Optimized machinery trains increase efficiency at a mega PTA plant in China.

18 local hero A new generation of gas turbines offers flexible solutions worldwide.

20 Sand & power Building a complete power plant in the middle of the desert is a daunting task. MAN takes on the challenge.

24 Two voices for one team MAN Diesel & Turbo and Fairbanks Morse join forces to tackle the world’s biggest gas market together.

26 gas giants Global LNG sourcing, transport and storage enters a new era.

30 Smart savings The EcoCam retrofit solution enhances fuel usage for low-load operations.

32 boom or bubble? Where is the global shipping market moving? Two experts share their views.

34 News Brief business updates from around the world

35 facts and figures Formidable insights and numbers

CONTENT

All information provided in this magazine is intended for general guidance only and is not intended to be used as a substitute for specific technical or commer-cial information and advice.

man magazine 1/2015

04 05

15

“My home is where the customers are”

Focused on the future: Dr. Uwe Lauber strives to reinforce the technological

leadership role of MAN Diesel & Turbo.

Phot

o: M

AN

Appointed to assume leadership of MAN Diesel & Turbo as of 2015, Dr. Uwe Lauber embodies both an engineer with a pas-sion for technological innova-tion as well as a staunch believ-

er in customer orientation under any and all cir-cumstances. MANmagazine conducted an interview to explore Lauber’s outlook and plans.

Dr. Lauber, you were appointed Sales Director and CEO all in the same year. How do you tackle such a far-reaching transi-tion? With tremendous motivation, but also a healthy measure of humility. I have respect for the tasks ahead of me and I am fully aware of the responsibility that the company has en-trusted me with. After all, MAN has been suc-cessfully writing industrial history for more than 250 years. Yet more than anything else, I feel honored and I’m looking forward to the challenges in store. Considering the global po-sitioning of our company, we must always re-main in motion. So there’s a lot to do, and I’m confident that my Executive Board colleagues and I will continue to set the right course for the future.

You have a reputation for believing in “uncompromising customer focus.” Would you agree? Our customers and the relation-ships with them are at the heart of everything we do and I am interested in implementing this paradigm to an even greater extent in our company. Therefore, both orders received as well as growth targets and trends are now bundled within a sales director position at the board level for the first time, which is my responsibility. Our partnerships with customers are therefore moving further into the spotlight, both from an organizational perspective and in the mind-sets of our

Leading technology expert MAN Diesel & Turbo serves both a global and a diverse clientele. The company’s new CEO aims to further strengthen customer ties. of MAN experience is part of Dr. Uwe

Lauber’s vita. He became CEO of about 14,000 employees on January 1, 2015.

yeArs

employees. Among my primary tasks will be a continuously sharpened focus on MAN Diesel & Turbo’s entire portfolio of products and services and to promote our business be-yond individual segments.

How do you view the current economic situation and where are further growth op-portunities for MAN Diesel & Turbo? To-day’s economic climate is certainly challeng-ing, but should actually encourage our com-pany to do even better. The future holds vast potential, as MAN Diesel & Turbo plays a pio-neering role in many sectors with regard to increased ef ficiency for its customers through technological advantages. Just one example is our new range of gas engines – excellent products with a strong unique sell-ing point. The 51/60G is the most powerful engine available on the market today. I also feel confident about the Chinese market. Pipelines are under construction, and the in-frastructure for liquid natural gas, or LNG, is being expanded. In the future, turbomachin-ery and engines will also be needed. Thus, natural gas will continue to play a major role in our business model. When converting gas – for example, in coal-to-liquid and gas-to- liquid – we also have a unique product in the MAX1 compressor, which was designed espe-cially for higher volume flows of higher per-formance density and increased effective-ness. Our competitors can rightly envy us.

Born in Bad Säckingen in Germany in 1967, Dr. Uwe Lauber obtained a master’s degree in mechanical engineering from the University of Applied Sciences in Konstanz and also studied business engineering at the business school in St. Gallen. In addition, he received a Ph.D. in mechanical engineering from the University of Kronstadt in 2009. After working at the company BOC Cryostar in different positions for more than nine years, he joined Sulzer Turbo – today MAN Diesel & Turbo – in 2000, where he was responsible for the design, R&D and testing of compressors. In December 2010, he was appointed Head of the Oil & Gas business unit, as well as being named CEO of MAN Diesel & Turbo Schweiz AG. On October 1, 2014, he joined the Executive Board of MAN Diesel & Turbo SE, responsible for the company’s global sales and after sales activi-ties, including the Marine business.

Professional profile

You moved to MAN from Sulzer Turbo in 2000 and headed the Oil & Gas business unit. As your background is in turboma-chinery, do you also harbor a passion for large diesel engines? I’m an engineer to the core, and whether I walk through the produc-tion bays in Augsburg, Oberhausen, Zurich, St. Nazaire, Deggendorf, Ravensburg, Berlin, Hamburg or Changzhou, the giant MAN-made machinery and engines never fail to impress and inspire me. It fills me with pride. Indeed, turbomachinery is the technological area that I’m most familiar with, so I spent weeks prior to my new assignment to introduce myself to colleagues at numerous locations, become better acquainted and seek dialogue with em-ployees on site. It was a marvelous experience, and I encountered many dedicated and talent-ed people who are tremendously committed to the company.

Can you outline what you value most about MAN Diesel & Turbo as a company? Besides a product range that can quicken the pulse of any engineer, I’m also proud of the fact that MAN is part of the Volkswagen Group. We are a long-established company within a global organization and need to fur-ther utilize the effectiveness and strength of two powerful brands.

So far, Zurich has been your base, yet your new role takes you to Augsburg. Will you relocate? While I don’t plan to move my family at the moment, I have taken a small flat in Augsburg. Even though I am CEO, I still remain the board member in charge of sales, and that primarily means interaction with customers. Sales executives should never spend all their workdays in the office. My home is where the customers are.

man magazine 1/2015

04 05

15

“My home is where the customers are”

Focused on the future: Dr. Uwe Lauber strives to reinforce the technological

leadership role of MAN Diesel & Turbo.

Phot

o: M

AN

Appointed to assume leadership of MAN Diesel & Turbo as of 2015, Dr. Uwe Lauber embodies both an engineer with a pas-sion for technological innova-tion as well as a staunch believ-

er in customer orientation under any and all cir-cumstances. MANmagazine conducted an interview to explore Lauber’s outlook and plans.

Dr. Lauber, you were appointed Sales Director and CEO all in the same year. How do you tackle such a far-reaching transi-tion? With tremendous motivation, but also a healthy measure of humility. I have respect for the tasks ahead of me and I am fully aware of the responsibility that the company has en-trusted me with. After all, MAN has been suc-cessfully writing industrial history for more than 250 years. Yet more than anything else, I feel honored and I’m looking forward to the challenges in store. Considering the global po-sitioning of our company, we must always re-main in motion. So there’s a lot to do, and I’m confident that my Executive Board colleagues and I will continue to set the right course for the future.

You have a reputation for believing in “uncompromising customer focus.” Would you agree? Our customers and the relation-ships with them are at the heart of everything we do and I am interested in implementing this paradigm to an even greater extent in our company. Therefore, both orders received as well as growth targets and trends are now bundled within a sales director position at the board level for the first time, which is my responsibility. Our partnerships with customers are therefore moving further into the spotlight, both from an organizational perspective and in the mind-sets of our

Leading technology expert MAN Diesel & Turbo serves both a global and a diverse clientele. The company’s new CEO aims to further strengthen customer ties. of MAN experience is part of Dr. Uwe

Lauber’s vita. He became CEO of about 14,000 employees on January 1, 2015.

yeArs

employees. Among my primary tasks will be a continuously sharpened focus on MAN Diesel & Turbo’s entire portfolio of products and services and to promote our business be-yond individual segments.

How do you view the current economic situation and where are further growth op-portunities for MAN Diesel & Turbo? To-day’s economic climate is certainly challeng-ing, but should actually encourage our com-pany to do even better. The future holds vast potential, as MAN Diesel & Turbo plays a pio-neering role in many sectors with regard to increased ef ficiency for its customers through technological advantages. Just one example is our new range of gas engines – excellent products with a strong unique sell-ing point. The 51/60G is the most powerful engine available on the market today. I also feel confident about the Chinese market. Pipelines are under construction, and the in-frastructure for liquid natural gas, or LNG, is being expanded. In the future, turbomachin-ery and engines will also be needed. Thus, natural gas will continue to play a major role in our business model. When converting gas – for example, in coal-to-liquid and gas-to- liquid – we also have a unique product in the MAX1 compressor, which was designed espe-cially for higher volume flows of higher per-formance density and increased effective-ness. Our competitors can rightly envy us.

Born in Bad Säckingen in Germany in 1967, Dr. Uwe Lauber obtained a master’s degree in mechanical engineering from the University of Applied Sciences in Konstanz and also studied business engineering at the business school in St. Gallen. In addition, he received a Ph.D. in mechanical engineering from the University of Kronstadt in 2009. After working at the company BOC Cryostar in different positions for more than nine years, he joined Sulzer Turbo – today MAN Diesel & Turbo – in 2000, where he was responsible for the design, R&D and testing of compressors. In December 2010, he was appointed Head of the Oil & Gas business unit, as well as being named CEO of MAN Diesel & Turbo Schweiz AG. On October 1, 2014, he joined the Executive Board of MAN Diesel & Turbo SE, responsible for the company’s global sales and after sales activi-ties, including the Marine business.

Professional profile

You moved to MAN from Sulzer Turbo in 2000 and headed the Oil & Gas business unit. As your background is in turboma-chinery, do you also harbor a passion for large diesel engines? I’m an engineer to the core, and whether I walk through the produc-tion bays in Augsburg, Oberhausen, Zurich, St. Nazaire, Deggendorf, Ravensburg, Berlin, Hamburg or Changzhou, the giant MAN-made machinery and engines never fail to impress and inspire me. It fills me with pride. Indeed, turbomachinery is the technological area that I’m most familiar with, so I spent weeks prior to my new assignment to introduce myself to colleagues at numerous locations, become better acquainted and seek dialogue with em-ployees on site. It was a marvelous experience, and I encountered many dedicated and talent-ed people who are tremendously committed to the company.

Can you outline what you value most about MAN Diesel & Turbo as a company? Besides a product range that can quicken the pulse of any engineer, I’m also proud of the fact that MAN is part of the Volkswagen Group. We are a long-established company within a global organization and need to fur-ther utilize the effectiveness and strength of two powerful brands.

So far, Zurich has been your base, yet your new role takes you to Augsburg. Will you relocate? While I don’t plan to move my family at the moment, I have taken a small flat in Augsburg. Even though I am CEO, I still remain the board member in charge of sales, and that primarily means interaction with customers. Sales executives should never spend all their workdays in the office. My home is where the customers are.

06 07

1/2015man magazine

my man

Paper Dewatering Mechanical engineer

Claudio Helbling is responsible for mainte-

nance of the state-of-the-art paper machine.

The PM 7 paper machine is one of the most modern and powerful paper machines in the world. Its production capacity is around 360,000 tons of paper per year.

Newspaper readers all over Europe hold in their hands a sample of MAN Diesel & Turbo’s expertise every morning. We visit Perlen Papier AG., Switzerland’s biggest producer of paper for newspapers and magazines.

Mr. Helbling, what’s this machinery you’re standing next to – what does it do? This is a TURBAIR vacuum system from MAN Diesel & Turbo used for the dewatering pro-cess. A highly diluted mix of water and fiber, comprising recycled paper, is pressure inject-ed onto the paper machine, continuing through the press and drying section until the paper mass comes onto the tambour. As a process step that is essential for the whole energy footprint, the MAN Vaccum blowers efficiently dewater the wet paper mass in the former and the press section. We use a TUR-BAIR single-stage and two multi-stage blow-ers, with vacuum ranges from 27 to 72 kilo-pascals.

Is the system particularly sensitive? Not at all – this is a good-natured piece of equipment. It has done a reliable job ever since it was commissioned in 2010. The first big service is due in a few years.

But the blowers are a small cog in the machinery of a massive paper plant like this. Is the system complicated to operate? Our newest and biggest newspaper produc-tion machine, the PM 7, is the most modern of its kind in all of Europe. As you would expect, it is highly automated. You only need a few people per shift to operate the paper-making and -cutting machine. Of course you have a whole maintenance team on top of that – metal workers, electricians, hydraulic and pneumatic engineers, technicians, chemists and many others. Paper production is a high-ly developed art. Ph

otos

: Cla

udio

Bad

er

06 07

1/2015man magazine

my man

Paper Dewatering Mechanical engineer

Claudio Helbling is responsible for mainte-

nance of the state-of-the-art paper machine.

The PM 7 paper machine is one of the most modern and powerful paper machines in the world. Its production capacity is around 360,000 tons of paper per year.

Newspaper readers all over Europe hold in their hands a sample of MAN Diesel & Turbo’s expertise every morning. We visit Perlen Papier AG., Switzerland’s biggest producer of paper for newspapers and magazines.

Mr. Helbling, what’s this machinery you’re standing next to – what does it do? This is a TURBAIR vacuum system from MAN Diesel & Turbo used for the dewatering pro-cess. A highly diluted mix of water and fiber, comprising recycled paper, is pressure inject-ed onto the paper machine, continuing through the press and drying section until the paper mass comes onto the tambour. As a process step that is essential for the whole energy footprint, the MAN Vaccum blowers efficiently dewater the wet paper mass in the former and the press section. We use a TUR-BAIR single-stage and two multi-stage blow-ers, with vacuum ranges from 27 to 72 kilo-pascals.

Is the system particularly sensitive? Not at all – this is a good-natured piece of equipment. It has done a reliable job ever since it was commissioned in 2010. The first big service is due in a few years.

But the blowers are a small cog in the machinery of a massive paper plant like this. Is the system complicated to operate? Our newest and biggest newspaper produc-tion machine, the PM 7, is the most modern of its kind in all of Europe. As you would expect, it is highly automated. You only need a few people per shift to operate the paper-making and -cutting machine. Of course you have a whole maintenance team on top of that – metal workers, electricians, hydraulic and pneumatic engineers, technicians, chemists and many others. Paper production is a high-ly developed art. Ph

otos

: Cla

udio

Bad

er

1/2015

08 09

man magazine

many miles out at sea or far away from solidly grounded infrastructure, safety and reliability is of paramount importance when operating the heavy machinery and

installations needed to explore for natural re-sources. Extensive equipment testing prior to installation saves time, money and even lives – thus serving the pursuit of lower-risk strate-gies. Completed in 2012, the multi-purpose and open-air test facility (MUENSTER) in Ober-hausen, Germany, can perform gas turbine, compressor and power generation tests for customers in the oil and gas as well as process industries. “Companies are trying to access deeper and more complex sources of oil and gas, which places higher demands on their uti-lized equipment. Comprehensive testing is more important than ever,” explains Thomas Müller, Head of Testing in Oberhausen.

Müller and his team work closely with other MAN teams, especially those in Zurich,

the limits for safer energy sourcing

Phot

o: M

AN

that are engaged in both design and manufac-turing of gas and steam turbines and high-pressure compressors used to transport and store different types of gases. Each test proce-dure is tailor-made according to customer re-quirements. The MAN site recently completed testing of some gas turbine-driven packages – for example, a completely in-house-manu-factured train for the Hejre Offshore field in the North Sea, as well as a gas-turbine-driven compressor train for a UK oil and gas operator focused on North Sea production, appraisal and development activities. Work will also be-gin shortly on another unit for BP, deliverable to the Shah Deniz oil field off the coast of Azerbaijan. “Yet our involvement actually be-gins as early as the design stage, as we have to configure the testing field at the same time,” says Klaus-Dieter Mohr, Head of Assembly, Packaging and Testing at the site. When a compressor skid arrives in Oberhausen, the team must finalize the plumbing, pipe work and other electrical connections required for

The open-site testing area at MAN Diesel & Turbo’s Oberhausen location allows for full-load testing with potentially dangerous gases.

Testingare an expressed objective at the MUENSTER facility to accommodate testing of electrical driver systems with larger outputs.

40mw capaciTies

it to run. “While we usually aim to complete the actual testing in less than a week, the con-figuration phase can easily take months,” adds Müller.

Already equipped to test electrical driver systems with outputs up to 20 MW, the MUENSTER site plans to increase this capacity to 40 MW. “As electrical drivers become more popular, we’ll also be able to accommodate any requested driver frequency,” adds Mohr. Due to its sliding weather protection, the MAN Diesel & Turbo facility can operate under cover or open air, enabling so-called Type 1 testing. “Thus, we run the machinery exactly as on site, with the same gases, rather than compromising in gas density as with Type 2 testing. As these are often explosive or toxic, we need comprehensive safety proce-dures here,” explains Müller. Currently the exception rather than the rule, Type 1 tests will become more common. “The risks for our customers are high, so they must know their equipment has been tested to the limit.”

1/2015

08 09

man magazine

many miles out at sea or far away from solidly grounded infrastructure, safety and reliability is of paramount importance when operating the heavy machinery and

installations needed to explore for natural re-sources. Extensive equipment testing prior to installation saves time, money and even lives – thus serving the pursuit of lower-risk strate-gies. Completed in 2012, the multi-purpose and open-air test facility (MUENSTER) in Ober-hausen, Germany, can perform gas turbine, compressor and power generation tests for customers in the oil and gas as well as process industries. “Companies are trying to access deeper and more complex sources of oil and gas, which places higher demands on their uti-lized equipment. Comprehensive testing is more important than ever,” explains Thomas Müller, Head of Testing in Oberhausen.

Müller and his team work closely with other MAN teams, especially those in Zurich,

the limits for safer energy sourcing

Phot

o: M

AN

that are engaged in both design and manufac-turing of gas and steam turbines and high-pressure compressors used to transport and store different types of gases. Each test proce-dure is tailor-made according to customer re-quirements. The MAN site recently completed testing of some gas turbine-driven packages – for example, a completely in-house-manu-factured train for the Hejre Offshore field in the North Sea, as well as a gas-turbine-driven compressor train for a UK oil and gas operator focused on North Sea production, appraisal and development activities. Work will also be-gin shortly on another unit for BP, deliverable to the Shah Deniz oil field off the coast of Azerbaijan. “Yet our involvement actually be-gins as early as the design stage, as we have to configure the testing field at the same time,” says Klaus-Dieter Mohr, Head of Assembly, Packaging and Testing at the site. When a compressor skid arrives in Oberhausen, the team must finalize the plumbing, pipe work and other electrical connections required for

The open-site testing area at MAN Diesel & Turbo’s Oberhausen location allows for full-load testing with potentially dangerous gases.

Testingare an expressed objective at the MUENSTER facility to accommodate testing of electrical driver systems with larger outputs.

40mw capaciTies

it to run. “While we usually aim to complete the actual testing in less than a week, the con-figuration phase can easily take months,” adds Müller.

Already equipped to test electrical driver systems with outputs up to 20 MW, the MUENSTER site plans to increase this capacity to 40 MW. “As electrical drivers become more popular, we’ll also be able to accommodate any requested driver frequency,” adds Mohr. Due to its sliding weather protection, the MAN Diesel & Turbo facility can operate under cover or open air, enabling so-called Type 1 testing. “Thus, we run the machinery exactly as on site, with the same gases, rather than compromising in gas density as with Type 2 testing. As these are often explosive or toxic, we need comprehensive safety proce-dures here,” explains Müller. Currently the exception rather than the rule, Type 1 tests will become more common. “The risks for our customers are high, so they must know their equipment has been tested to the limit.”

1/2015

10 11

man magazine

With the maiden voyages of the Norwegian Break-away in April 2013 and the Norwegian Getaway in February 2014, Ameri-can cruise line operator

Norwegian Cruise Line (NCL) set out on an am-bitious mission to drastically improve the modern getaway experience. The Norwegian Breakaway and the Norwegian Getaway are part of NCL’s Breakaway line, each with a ca-pacity of 4,028 guests and a crew of 1,640, mak-ing them some of the largest ships to cruise the eastern Caribbean Sea. The Breakaway line serves as the backdrop for NCL’s “Freestyle Cruising” concept, with no set times or seating arrangement for meals, no formal attire, and a brand-new approach to deck design, allowing for easy access to shops, restaurants and bars. Another four ships will added be to the Breakaway fleet over the next years, as part of a new Breakaway Plus line: the Norwegian Escape is set to embark on its maiden voyage in fall 2015, and the Norwegian Bliss will follow in 2016. Finally, another two ships are planned for 2018 and 2019, as well.

The meyer WerfT in Papenburg, Germany, is undertaking the construction of the new ships. “We are very pleased with the continued confidence NCL has shown us by tasking us with expanding their fleet,” says Bernard Meyer, Managing Partner of Meyer Werft. The shipyard relied on the know-how of MAN Diesel & Turbo, equipping the first two Breakaway ships and with two 12V and two 14V 48/60CR four-stroke medium-speed diesel engines, with a com-bined capacity of 62,400 kW. In the planning for the Norwegian Escape and the Norwegian Bliss are three 12V and two 14V 48/60CR en-gines, boosting overall capacity to 76,800 kW. NCL was the first company to introduce MAN 48/6CRs into its operating fleet seven years ago. Ever since, all its MAN powered new-builds have been ordered with the fuel saving electronic CR injection system. “The system pro-vides superior performance compared with conventional engines,” says Benjamin Andres, Head of Order Management Cruise & Ferry at MDT. “We are proud to help bring the modern cruise experience into the future.” The Norwegian Getaway has its

home in New York and will offer luxury cruises in the Caribbean.

The Getaway is the second ship in NCL’s Breakaway fleet of luxury cruise ships.

The advanced MDT 48/60 CR four-stroke

engines power the Breakaway fleet.

modern getaways

Phot

o: g

etty

imag

es, I

ngri

d Fi

ebac

k (2

)

1/2015

10 11

man magazine

With the maiden voyages of the Norwegian Break-away in April 2013 and the Norwegian Getaway in February 2014, Ameri-can cruise line operator

Norwegian Cruise Line (NCL) set out on an am-bitious mission to drastically improve the modern getaway experience. The Norwegian Breakaway and the Norwegian Getaway are part of NCL’s Breakaway line, each with a ca-pacity of 4,028 guests and a crew of 1,640, mak-ing them some of the largest ships to cruise the eastern Caribbean Sea. The Breakaway line serves as the backdrop for NCL’s “Freestyle Cruising” concept, with no set times or seating arrangement for meals, no formal attire, and a brand-new approach to deck design, allowing for easy access to shops, restaurants and bars. Another four ships will added be to the Breakaway fleet over the next years, as part of a new Breakaway Plus line: the Norwegian Escape is set to embark on its maiden voyage in fall 2015, and the Norwegian Bliss will follow in 2016. Finally, another two ships are planned for 2018 and 2019, as well.

The meyer WerfT in Papenburg, Germany, is undertaking the construction of the new ships. “We are very pleased with the continued confidence NCL has shown us by tasking us with expanding their fleet,” says Bernard Meyer, Managing Partner of Meyer Werft. The shipyard relied on the know-how of MAN Diesel & Turbo, equipping the first two Breakaway ships and with two 12V and two 14V 48/60CR four-stroke medium-speed diesel engines, with a com-bined capacity of 62,400 kW. In the planning for the Norwegian Escape and the Norwegian Bliss are three 12V and two 14V 48/60CR en-gines, boosting overall capacity to 76,800 kW. NCL was the first company to introduce MAN 48/6CRs into its operating fleet seven years ago. Ever since, all its MAN powered new-builds have been ordered with the fuel saving electronic CR injection system. “The system pro-vides superior performance compared with conventional engines,” says Benjamin Andres, Head of Order Management Cruise & Ferry at MDT. “We are proud to help bring the modern cruise experience into the future.” The Norwegian Getaway has its

home in New York and will offer luxury cruises in the Caribbean.

The Getaway is the second ship in NCL’s Breakaway fleet of luxury cruise ships.

The advanced MDT 48/60 CR four-stroke

engines power the Breakaway fleet.

modern getaways

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1/2015

12 13

man magazine

With a metropolitan popu-lation of more than 12 million, Dhaka is the 10th-largest city in the world and more crowded than Tokyo, London or

New York. The capital city of Bangladesh, one of the most densely populated nations any-where, is most often featured in international news with issues such as horrific traffic jams or flooding. Yet despite many still crushing prob-lems such as deep-rooted poverty, Bangladesh is slowly emerging as an economic player: A 2005 paper published by Goldman Sachs and economist Jim O’Neill already looked beyond the BRIC nations to the countries that would shape the economic future of the 21st century, and identified the Asian country as one of “The Next Eleven.” While GDP growth rates for Ban-gladesh have indeed surpassed 5 percent per year in the last decade, unique challenges re-main for the developing country, with none more vital than providing reliable power sources. According to the CIA World Fact Book 2014, Bangladesh (population about 166 mil-lion) and Hong Kong (7 million) currently share the same power generation capacity, which obviously leaves much room for im-provement. Yet without an established infra-structure, the technology to generate and dis-tribute electricity that might work elsewhere is unsuited for this Asian nation – which is where MAN comes in.

The Bangladesh Power Development Board called on foreign investors to provide an additional 1,000 MW of capacity, with

As Bangladesh’s most populous city, Dhaka has not only a vibrant cultural

life, but also torrential traffic.

Lighting up a brighter future

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India

Bangladesh

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1 man Diesel & Turbo Power plants - already installed:

1 and 2 Shantahar / Katakhali, 2 x 6 x 18V 32/40- new Orders 2013/14:

3 CLC, Dhaka 12 x 18V 32/40 4 Desh Energy 3 x 18V 48/60TS 5 Kodda 9 x 18V 51/60DF 6 Nawabganj 3 x 18V 48/60TS 7 Manikganj 3 x 18V 48/60TS

MAN currently involved in a number of proj-ects throughout the country. In 2013, MAN received a contract to supply 12 engines for a power plant project in the capital, as well as a further nine for the Gazipur District. Two new projects were added in 2014, with the or-der of two identical installations of three 18V 48/60 TS engines each, at the two locations Nawabganj and Manikganj, just outside Dha-ka. All of these new facilities are powered by MAN engines, generating electricity from diesel, while providing the extra power and stability Bangladesh needs to better reach its potential. “Our plants can be set up within a reasonable time frame and operate in remote areas,” says Alexander Stöckler, Head of Sales for Middle East and North Africa for MAN Power Plants. Gas turbines, one of the most common power plant technologies in the de-veloped world, are also not as efficient at this smaller scale, considering the difficult load pattern of the local grid. According to Stöck-ler, the weak network needs power plants that are capable of responding at short notice, be-cause fluctuations in the grid impact the op-erating pattern and diesel engines are far more suitable for responding to these inter-ruptions. “This is one reason why some of the diesel power plants operate at peak load times,” he explains.

Sustainable long-term growth can happen even in the face of still-unresolved challenges, and diesel-powered generators by MAN are another guarantor that the people of Bangla-desh are on the right track for a future of de-velopment and more economic stability.

1/2015

12 13

man magazine

With a metropolitan popu-lation of more than 12 million, Dhaka is the 10th-largest city in the world and more crowded than Tokyo, London or

New York. The capital city of Bangladesh, one of the most densely populated nations any-where, is most often featured in international news with issues such as horrific traffic jams or flooding. Yet despite many still crushing prob-lems such as deep-rooted poverty, Bangladesh is slowly emerging as an economic player: A 2005 paper published by Goldman Sachs and economist Jim O’Neill already looked beyond the BRIC nations to the countries that would shape the economic future of the 21st century, and identified the Asian country as one of “The Next Eleven.” While GDP growth rates for Ban-gladesh have indeed surpassed 5 percent per year in the last decade, unique challenges re-main for the developing country, with none more vital than providing reliable power sources. According to the CIA World Fact Book 2014, Bangladesh (population about 166 mil-lion) and Hong Kong (7 million) currently share the same power generation capacity, which obviously leaves much room for im-provement. Yet without an established infra-structure, the technology to generate and dis-tribute electricity that might work elsewhere is unsuited for this Asian nation – which is where MAN comes in.

The Bangladesh Power Development Board called on foreign investors to provide an additional 1,000 MW of capacity, with

As Bangladesh’s most populous city, Dhaka has not only a vibrant cultural

life, but also torrential traffic.

Lighting up a brighter future

Phot

o: P

eter

Bia

lobr

zesk

i/la

if

India

India

Bangladesh

2

34

5 67

1 man Diesel & Turbo Power plants - already installed:

1 and 2 Shantahar / Katakhali, 2 x 6 x 18V 32/40- new Orders 2013/14:

3 CLC, Dhaka 12 x 18V 32/40 4 Desh Energy 3 x 18V 48/60TS 5 Kodda 9 x 18V 51/60DF 6 Nawabganj 3 x 18V 48/60TS 7 Manikganj 3 x 18V 48/60TS

MAN currently involved in a number of proj-ects throughout the country. In 2013, MAN received a contract to supply 12 engines for a power plant project in the capital, as well as a further nine for the Gazipur District. Two new projects were added in 2014, with the or-der of two identical installations of three 18V 48/60 TS engines each, at the two locations Nawabganj and Manikganj, just outside Dha-ka. All of these new facilities are powered by MAN engines, generating electricity from diesel, while providing the extra power and stability Bangladesh needs to better reach its potential. “Our plants can be set up within a reasonable time frame and operate in remote areas,” says Alexander Stöckler, Head of Sales for Middle East and North Africa for MAN Power Plants. Gas turbines, one of the most common power plant technologies in the de-veloped world, are also not as efficient at this smaller scale, considering the difficult load pattern of the local grid. According to Stöck-ler, the weak network needs power plants that are capable of responding at short notice, be-cause fluctuations in the grid impact the op-erating pattern and diesel engines are far more suitable for responding to these inter-ruptions. “This is one reason why some of the diesel power plants operate at peak load times,” he explains.

Sustainable long-term growth can happen even in the face of still-unresolved challenges, and diesel-powered generators by MAN are another guarantor that the people of Bangla-desh are on the right track for a future of de-velopment and more economic stability.

1/2015

14 15

man magazine

Foto

:

B ased in Dalian, China, the Hengli Group is one of the world’s ma-jor manufacturers of terephthal-

ic acid (PTA), one of the key chemicals used in making plastics and textiles. Recently, the ris-ing costs of raw materials have squeezed mar-gins to the point that some of the company’s competitors have struggled to stay profitable. The Hengli Group, however, has managed to buck that trend. One of the key reasons for this business resilience is its decision to use MAN Diesel & Turbo production trains to upgrade the efficiency of its manufacturing facilities in Dalian. “With the Hengli Group as one of our major partners, we’ve entered the league of mega PTA plants,” says Dr. Lothar Wallscheid, VP Basic Industry segment at MAN Diesel & Turbo. “For the Dalian facility, we initially de-veloped four machinery trains that became operational in 2013. As requirements grew, Hengli ordered another two identical trains – so far the world’s largest of their kind.”

“Our trains are the beating heart of PTA production for Hengli,” adds Marc Groß from MAN Diesel & Turbo’s onsite team. “The train consists of a compressor that powers the pro-duction reactor, an axial expander used to re-cover energy from the production process, as well as a steam turbine and engine generator to produce electricity powering the plant.”

Hengli’s PTA production facilities are of particular strategic importance to the compa-ny, because around 50% of the manufactured

This radial gear stage compressor RG160 reflects the rapid turbine development of recent years.

The rising cost of raw mate-rials exerts pressure on manufacturing margins. By increasing production effi-ciency, MAN Diesel & Turbo production trains facilitate even expanding competi-tiveness for a leading PTA manufacturer in China.

Protecting profitability “With this

partner, we have entered the league of mega PTa plants.”Dr. Lothar Wallscheid, VP Basic Industry segment, MAN Diesel & Turbo

Teamwork and trust is essential for a project of this magnitude.

The PTA plant operated by the Hengli Group is located in Dalian, in the south of China’s Liaoning Province.

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1/2015

14 15

man magazine

Foto

:

B ased in Dalian, China, the Hengli Group is one of the world’s ma-jor manufacturers of terephthal-

ic acid (PTA), one of the key chemicals used in making plastics and textiles. Recently, the ris-ing costs of raw materials have squeezed mar-gins to the point that some of the company’s competitors have struggled to stay profitable. The Hengli Group, however, has managed to buck that trend. One of the key reasons for this business resilience is its decision to use MAN Diesel & Turbo production trains to upgrade the efficiency of its manufacturing facilities in Dalian. “With the Hengli Group as one of our major partners, we’ve entered the league of mega PTA plants,” says Dr. Lothar Wallscheid, VP Basic Industry segment at MAN Diesel & Turbo. “For the Dalian facility, we initially de-veloped four machinery trains that became operational in 2013. As requirements grew, Hengli ordered another two identical trains – so far the world’s largest of their kind.”

“Our trains are the beating heart of PTA production for Hengli,” adds Marc Groß from MAN Diesel & Turbo’s onsite team. “The train consists of a compressor that powers the pro-duction reactor, an axial expander used to re-cover energy from the production process, as well as a steam turbine and engine generator to produce electricity powering the plant.”

Hengli’s PTA production facilities are of particular strategic importance to the compa-ny, because around 50% of the manufactured

This radial gear stage compressor RG160 reflects the rapid turbine development of recent years.

The rising cost of raw mate-rials exerts pressure on manufacturing margins. By increasing production effi-ciency, MAN Diesel & Turbo production trains facilitate even expanding competi-tiveness for a leading PTA manufacturer in China.

Protecting profitability “With this

partner, we have entered the league of mega PTa plants.”Dr. Lothar Wallscheid, VP Basic Industry segment, MAN Diesel & Turbo

Teamwork and trust is essential for a project of this magnitude.

The PTA plant operated by the Hengli Group is located in Dalian, in the south of China’s Liaoning Province.

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man magazine 1/2015

16 17

Each of the machine trains includes an expander for energy recovery.

Condenser of a state-of- the-art steam turbine – integrated energy concepts ensure maximum efficiency.

“Our machinery trains are the heart of Hengli’s PTa production.”Marc Groß, Onsite Project Manager

was the total project duration. Even though upgrading a PTA production train is a complex undertaking, MAN Diesel & Turbo completed the project significantly ahead of schedule.

2years

PTA output is actually consumed within China for the national textile industry. This strategic move also helps protect it from the volatility of the PTA market – another reason why the upgrading of its production trains with MAN Diesel & Turbo equipment plays such an important role for the company.

“MAN Diesel & Turbo is by far the world-wide market leader in the development and manufacturing of machinery trains for PTA production,” says Jörg Meier, project manager at MAN Diesel & Turbo. “Within the last five years, more than 20 such trains were built worldwide at a cost of several million euros each – and most of them came from MAN.”

afTer Having effecTively upgraded four production trains at the plant, Hengli decided to modify its production process for trains 5 and 6 to improve efficiency still further. De-spite tough competition, MAN Diesel & Turbo won the contract based on the quality and reli-ability of its machinery and outstanding tech-nical knowhow, supported by a highly collab-orative customer relationship. “We developed a high level of trust with the Hengli manage-ment team during the upgrade of the first four

Labyrinthine stairs provide access to the overhead oil tank, visible at upper left.

trains and worked hard to build a deep under-standing of Hengli’s specific requirements. That’s why they selected us, even though our bid was higher than some of the others. Our customer was willing to invest a little more to receive the highest quality and most reliable solution. At the end of the day, the fact that our equipment just works was probably the key differentiator for us,” notes Groß.

valued HigHly By THe cusTOmer in Dalian is the fact that MAN Diesel & Turbo team work on trains 5 and 6 was completed in early 2015, significantly ahead of schedule. “There were no major issues with deployment or operation of any installed production trains and we managed to shorten the project duration twice,” he says. “The Hengli Group values that very highly.” Customer focus also plays a key role for Lothar Wallscheid: “As the world’s pop-ulation rises, so does the need for basic mate-rials such as terephthalic acid,” he explains. “The PTA industry offers an excellent example for how our development work allows custom-ers such as the Hengli Group to continuously optimize their processes with regard to effi-ciency and capacity.”

The secret to this success story is the ex-cellent cooperation between teams from across the MAN Diesel & Turbo organization, the Hengli Group and its partner INVISTA, a subsidiary of US-based Koch Industries. “We have had a trusted cooperation with our part-ners from MAN Diesel & Turbo for years,” says Mike Lin, Vice General Manager at Hengli Group. “Together with us, MAN has raised the production of PTA to a new level, hence sub-stantiating the leading position of Hengli.” All of these factors result in enhanced customer satisfaction, which places MAN Diesel & Tur-bo in an excellent competitive position if and when the Hengli Group decides to upgrade more of its PTA production trains.

This particular partnership also looks promising, as the Hengli Group pursues a broad range of interests and activities across many different manufacturing areas. These include petrochemical refining, a field where MAN Diesel & Turbo offers a high level of ex-perience and expertise in equipment manu-facturing. Considering the supplier’s focus on high quality and reliable machinery, the suc-cessful cooperation in Dalian provides an outstanding platform for future success.Ph

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man magazine 1/2015

16 17

Each of the machine trains includes an expander for energy recovery.

Condenser of a state-of- the-art steam turbine – integrated energy concepts ensure maximum efficiency.

“Our machinery trains are the heart of Hengli’s PTa production.”Marc Groß, Onsite Project Manager

was the total project duration. Even though upgrading a PTA production train is a complex undertaking, MAN Diesel & Turbo completed the project significantly ahead of schedule.

2years

PTA output is actually consumed within China for the national textile industry. This strategic move also helps protect it from the volatility of the PTA market – another reason why the upgrading of its production trains with MAN Diesel & Turbo equipment plays such an important role for the company.

“MAN Diesel & Turbo is by far the world-wide market leader in the development and manufacturing of machinery trains for PTA production,” says Jörg Meier, project manager at MAN Diesel & Turbo. “Within the last five years, more than 20 such trains were built worldwide at a cost of several million euros each – and most of them came from MAN.”

afTer Having effecTively upgraded four production trains at the plant, Hengli decided to modify its production process for trains 5 and 6 to improve efficiency still further. De-spite tough competition, MAN Diesel & Turbo won the contract based on the quality and reli-ability of its machinery and outstanding tech-nical knowhow, supported by a highly collab-orative customer relationship. “We developed a high level of trust with the Hengli manage-ment team during the upgrade of the first four

Labyrinthine stairs provide access to the overhead oil tank, visible at upper left.

trains and worked hard to build a deep under-standing of Hengli’s specific requirements. That’s why they selected us, even though our bid was higher than some of the others. Our customer was willing to invest a little more to receive the highest quality and most reliable solution. At the end of the day, the fact that our equipment just works was probably the key differentiator for us,” notes Groß.

valued HigHly By THe cusTOmer in Dalian is the fact that MAN Diesel & Turbo team work on trains 5 and 6 was completed in early 2015, significantly ahead of schedule. “There were no major issues with deployment or operation of any installed production trains and we managed to shorten the project duration twice,” he says. “The Hengli Group values that very highly.” Customer focus also plays a key role for Lothar Wallscheid: “As the world’s pop-ulation rises, so does the need for basic mate-rials such as terephthalic acid,” he explains. “The PTA industry offers an excellent example for how our development work allows custom-ers such as the Hengli Group to continuously optimize their processes with regard to effi-ciency and capacity.”

The secret to this success story is the ex-cellent cooperation between teams from across the MAN Diesel & Turbo organization, the Hengli Group and its partner INVISTA, a subsidiary of US-based Koch Industries. “We have had a trusted cooperation with our part-ners from MAN Diesel & Turbo for years,” says Mike Lin, Vice General Manager at Hengli Group. “Together with us, MAN has raised the production of PTA to a new level, hence sub-stantiating the leading position of Hengli.” All of these factors result in enhanced customer satisfaction, which places MAN Diesel & Tur-bo in an excellent competitive position if and when the Hengli Group decides to upgrade more of its PTA production trains.

This particular partnership also looks promising, as the Hengli Group pursues a broad range of interests and activities across many different manufacturing areas. These include petrochemical refining, a field where MAN Diesel & Turbo offers a high level of ex-perience and expertise in equipment manu-facturing. Considering the supplier’s focus on high quality and reliable machinery, the suc-cessful cooperation in Dalian provides an outstanding platform for future success.Ph

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man magazine 1/2015

18 19

In times of continuously rising energy costs and efficiency focus, a new

generation of gas turbines offers flexible solutions for applications worldwide.

Local Hero

“Our gas turbines can be deployed anywhere for decentralized power generation.” Sven-Hendrik Wiers, Vice President Gas Turbines, MAN Diesel & Turbo

Starting up in late summer 2013 at the Solvay plant in Rheinberg (above), the first custom-tailored MGT gas turbine package has proven itself an innovative and reliable power generation system.

rate of natural gas results in outstanding economic efficiency and 7,000 tons less CO2 emissions per year.

utiLizatiOn80 %

system also harnesses the turbine’s waste heat, it reaches a high overall utilization rate about 80 percent — thus saving emissions of about 7,000 tons of CO2 per year at just the Rheinberg production site.

tHe new MGt Gas turbine systeM pro-vides state-of-the-art reliability with a small footprint. “Its size, very low maintenance de-mand and short installation schedule makes it suitable for flexible deployment anywhere in the world, where decentralized power gen-eration is needed,” says Sven-Hendrik Wiers, Vice President Gas Turbines, MAN Diesel & Turbo in Oberhausen, Germany. “It can serve as a back-up solution for sites with fluctuating renewable energy input such as solar and wind power or remote locations not easily connected to larger grids.” During the MGT-series development phase, MAN engineers in-vested much time and effort in a particularly clean combustion rate. The MGT6000 series designed for both electricity generation as well as a mechanical drive for compressors and pumps reaches single-digit NOx values in load levels of between 50 and 100 percent - impressively proving that the new gas turbine is not just highly efficient, but also an envi-ronmentally conscious power producer.

With natural gas resources most likely se-cured for decades, even coal traditionalists such as China power producers are moving toward cleaner fuels, global demand for gas turbine-powered energy generation is grow-ing steadily and successful product introduc-tions such as a 50-hertz version for Solvay serve to further strengthen the market posi-tion of MAN Diesel & Turbo. “We are currently developing a version for 60-hertz power grids like those in the US and in Latin America,” re-ports Wiers. “We might supply off-the-shelf systems, but also work with our customers to tailor solutions according to technical condi-tions and individual power requirements. Thus, we are just as flexible as our turbines.”Ph

otos

: MA

N

D ecentralized energy produc-tion to supplement or even replace dependence on con-

ventional power grid infrastructures has cer-tainly been on the minds and drawing boards of engineering experts for a while. Yet as Ger-many currently debates how to best imple-ment its consensus-built energy transition process, including some passionate controver-sy over the construction of high-voltage pow-er line corridors to transfer wind-generated power from the North to the economically booming South, both the public and private sectors increasingly engage in efforts to in-crease their independence.

While solar panels on the roof and a biogas plant down the road might alleviate commu-nal dependency on a conventional infrastruc-ture, the demands of industrial manufactur-ing and other production plants like breweries, paper plants, food processing plants and agri-cultural green house production facilities necessitate a continuous, reliable and high- volume power supply to operate efficiently — including heating and cooling processes.

Many cOMpanies turn to MAN to explore independent power-sourcing options. Solvay, an international chemical group, was the first MDT customer to install and start up a two-shaft MGT6200 gas turbine at its production facility in Rheinberg, Germany. Linked to a generator and equipped with state-of-the-art technical instrumentation, the compact and highly efficient unit features six megawatts of electrical and another 11 megawatts of ther-mal performance and has since — together with the already installed units from MDT — rendered the Solvay facility almost complete-ly independent in terms of electrical power needs. “With this eminently efficient gas tur-bine, we have added another component to our combined heat and power concept at our production site,” emphasizes Richard Rösler, Site Manager of Solvay in Rheinberg. As the

man magazine 1/2015

18 19

In times of continuously rising energy costs and efficiency focus, a new

generation of gas turbines offers flexible solutions for applications worldwide.

Local Hero

“Our gas turbines can be deployed anywhere for decentralized power generation.” Sven-Hendrik Wiers, Vice President Gas Turbines, MAN Diesel & Turbo

Starting up in late summer 2013 at the Solvay plant in Rheinberg (above), the first custom-tailored MGT gas turbine package has proven itself an innovative and reliable power generation system.

rate of natural gas results in outstanding economic efficiency and 7,000 tons less CO2 emissions per year.

utiLizatiOn80 %

system also harnesses the turbine’s waste heat, it reaches a high overall utilization rate about 80 percent — thus saving emissions of about 7,000 tons of CO2 per year at just the Rheinberg production site.

tHe new MGt Gas turbine systeM pro-vides state-of-the-art reliability with a small footprint. “Its size, very low maintenance de-mand and short installation schedule makes it suitable for flexible deployment anywhere in the world, where decentralized power gen-eration is needed,” says Sven-Hendrik Wiers, Vice President Gas Turbines, MAN Diesel & Turbo in Oberhausen, Germany. “It can serve as a back-up solution for sites with fluctuating renewable energy input such as solar and wind power or remote locations not easily connected to larger grids.” During the MGT-series development phase, MAN engineers in-vested much time and effort in a particularly clean combustion rate. The MGT6000 series designed for both electricity generation as well as a mechanical drive for compressors and pumps reaches single-digit NOx values in load levels of between 50 and 100 percent - impressively proving that the new gas turbine is not just highly efficient, but also an envi-ronmentally conscious power producer.

With natural gas resources most likely se-cured for decades, even coal traditionalists such as China power producers are moving toward cleaner fuels, global demand for gas turbine-powered energy generation is grow-ing steadily and successful product introduc-tions such as a 50-hertz version for Solvay serve to further strengthen the market posi-tion of MAN Diesel & Turbo. “We are currently developing a version for 60-hertz power grids like those in the US and in Latin America,” re-ports Wiers. “We might supply off-the-shelf systems, but also work with our customers to tailor solutions according to technical condi-tions and individual power requirements. Thus, we are just as flexible as our turbines.”Ph

otos

: MA

N

D ecentralized energy produc-tion to supplement or even replace dependence on con-

ventional power grid infrastructures has cer-tainly been on the minds and drawing boards of engineering experts for a while. Yet as Ger-many currently debates how to best imple-ment its consensus-built energy transition process, including some passionate controver-sy over the construction of high-voltage pow-er line corridors to transfer wind-generated power from the North to the economically booming South, both the public and private sectors increasingly engage in efforts to in-crease their independence.

While solar panels on the roof and a biogas plant down the road might alleviate commu-nal dependency on a conventional infrastruc-ture, the demands of industrial manufactur-ing and other production plants like breweries, paper plants, food processing plants and agri-cultural green house production facilities necessitate a continuous, reliable and high- volume power supply to operate efficiently — including heating and cooling processes.

Many cOMpanies turn to MAN to explore independent power-sourcing options. Solvay, an international chemical group, was the first MDT customer to install and start up a two-shaft MGT6200 gas turbine at its production facility in Rheinberg, Germany. Linked to a generator and equipped with state-of-the-art technical instrumentation, the compact and highly efficient unit features six megawatts of electrical and another 11 megawatts of ther-mal performance and has since — together with the already installed units from MDT — rendered the Solvay facility almost complete-ly independent in terms of electrical power needs. “With this eminently efficient gas tur-bine, we have added another component to our combined heat and power concept at our production site,” emphasizes Richard Rösler, Site Manager of Solvay in Rheinberg. As the

man magazine 1/2015

20 21

Supplying the massive engines and all ancillary equipment for a new cement plant in the desert of Saudi Arabia, MAN Diesel & Turbo SE once again meets the challenges of problem-solving in a very remote location.

Sand & Power

Slow and steady: Carrying huge engines, trucks rumble

toward their destination 150 kilometers south of Jeddah.

Engineer Ayed Al-Fayedi serves as Vice President of Operations at the UCIC construction site and works closely with the MAN team.

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man magazine 1/2015

20 21

Supplying the massive engines and all ancillary equipment for a new cement plant in the desert of Saudi Arabia, MAN Diesel & Turbo SE once again meets the challenges of problem-solving in a very remote location.

Sand & Power

Slow and steady: Carrying huge engines, trucks rumble

toward their destination 150 kilometers south of Jeddah.

Engineer Ayed Al-Fayedi serves as Vice President of Operations at the UCIC construction site and works closely with the MAN team.

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man magazine 1/2015

22 23

but also all ancillary equipment – ranging from the machine control-room and cooling systems to the processing and disposal sys-tems – while the local consortium partner Al Aman Company is responsible for all civil, electrical and mechanical construction and in-stallation work. The project was signed off in summer 2013, with construction commencing a year later and final power plant handover to the customer scheduled for February 2016. The trailers’ just-in-time arrival at Old Makkha Road, from where they turned east to the UCIC site, was a timing triumph for senior project manager Ralf Göppel and his team at MAN Diesel & Turbo headquarters in Augsburg. Had the engines arrived too early, they would have disrupted work on the project’s ongoing build-ing phase, while laying the foundations for the powerhouse, pumphouse, radiator area or tank farm. Had they arrived too late, the delivery would have delayed the next stage of construc-tion, especially installing the auxiliary mod-ules, steel structure, piping and cabling as well as the installation of the 35-ton alternators in-side the powerhouse.

Timing The exacT arrival is essential in a project like this,” says Göppel, who always has to cope with all kinds of eventualities, includ-ing sandstorms, local incidents, late deliveries or sudden lack of manpower. Delivering all plant components to the UCIC site is a huge ex-ercise in logistics. While the Diesel engines were built in MAN’s Augsburg works, most of the other equipment was purchased from glob-al suppliers as far away as India or Finland. They all must first undertake an almost epic journey via European North Sea ports, to Jed-dah, and finally move down a sandy gravel road to the UCIC site. For the first time, engines of this type were initially put on a train to trav-el from Augsburg to Duisburg in Germany for final assembly, later transported via the Rhine River to Antwerp in Belgium and then shipped to Jeddah in Saudi Arabia. Overall, it took more than a month to arrive at the plant in the des-ert. Saudi Arabia’s cement industry is flourish-ing, due to a construction boom caused by de-mographic and macroeconomic factors. Ph

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“if you need to deal with a problem today, you have made a mistake half a year ago.” Ralf Göppel, Senior Project Manager, MAN Diesel & Turbo SE

A growing population and changing family structures – such as the trend toward smaller households – are increasing demand for resi-dential properties and new industrial areas, in-cluding big oil refineries. At the same time, the government vastly increased infrastructure spending since 2013, resulting from a great year for the oil industry in 2012 and an associated 20% surplus in GDP.

This has turned the kingdom into the larg-est projects market in the Middle East, accord-ing to the “Saudi Arabia Projects Market 2014” issued by MEED, a Middle East business intelli-gence provider. “Saudi Arabia is a key market for our power plants division, where we have gathered decades of experience,” says Howard Barnes, Senior Vice President and Global Head of Sales Power Plants. The UCIC power plant will supply 55 megawatts , facilitating a cement pro-duction capacity of around 5,000 tons per day. Remote sites are, by nature, difficult to access and each project presents its own engineering and logistical challenges. The engines at UCIC were designed to withstand local conditions, including temperatures of up to 50°C. Special pulse filter systems in front of the air-intake ducts keep sand particles out, using com-pressed air to blow air filters free when sensors

register a loss of air-intake pressure, while a huge system of radiator coolers is designed to regulate the cooling water systems.

göPPel deScribeS his Saudi-specific chal-lenges as: “Sandstorms! Ramadan! Heavy rain!” In spring and summer, the northwest-erly Shamal wind creates sandstorms that can cut visibility to almost zero. In 2014, such storms interrupted onsite work almost every afternoon from June through August. Al-though rare, rain is also a problem, as cities and environs are not equipped with rainwater drains. Jeddah was completely flooded after heavy rainfalls back in 2010, with hundreds of people killed. “When it started to rain in No-vember 2014, the workers panicked and left to reach their families,” recalls Göppel. Also that year, Ramadan, the ninth month of the Islam-ic calendar, proceeded during the month of July, when daytime temperatures reached 50°C in the shade – if there was any shade. While faithful Muslims may work throughout this period, they must fast during daylight hours. Göppel solved the issue by switching work shifts to night time during the month of Ramadan. Another aspect slowing down work schedules are the five required prayer sessions per day. “We expect less daily progress in Sau-di Arabia than in other countries, which must be reflected by work schedules,” says Göppel. For the four weeks of Ramadan, for example, he calculates a 50% reduction in progress and even 70% less efficiency during the annual fortnight Eid and Hajj holidays. A vital factor is the skilled MAN team of managers and su-pervisors on site, who are coordinating and driving the construction efforts. Some remain in the desert of Saudi Arabia for a year or even longer. On average, MAN has between 18 and 22 months to finalize a power plant project, with significant fines and penalties built into the contract for late handover to the customer. “It’s important to quickly identify any real problems and how to address them,” says Göp-pel, who claims that almost nothing can ruffle him anymore. “When you have a great team like mine, be it on site or at headquarters, this is the most exciting job in the world.”

50°cEach of the five engines features 20 cylinders providing 560 kW/Cyl and renders a performance of more than 15,000 hp.

The MAN team meets with project engineers to discuss the last preparations before the first engine arrives.

b etween Saudi Arabia’s Jeddah Islamic Port on the Red Sea and the Al-Sadiya Mountains, a des-ert area not far from Mecca,

there is little more than sand and a handful of camels and sheep. Yet in November 2014, five giant trucks hauling huge monsters of steel rumbled through the desert – scary black sil-houettes against an ancient golden landscape.

Their cargo was a 130-ton MAN 20V32/ 44CR diesel engine for a new cement plant un-der construction in the limestone-rich Al-Sadi-ya site on behalf of the United Cement Indus-trial Company (UCIC), a Jeddah-based Saudi business established in 2013. MAN Diesel & Turbo had received an engineering, procure-ment and construction (EPC) contract to build an independent diesel power plant for the new facility. In its product portfolio, MAN Diesel & Turbo carries specifically engineered power plants for remote locations with no ac-cess to electricity grids (island mode) all over the world. And as these are the only source of power, technical excellence is essential. Sup-plied MAN engines for this project feature modern common rail technology, an electron-ically controlled injection system that controls fuel consumption and emissions. For the UCIC project, MAN supplies not only the engines,

during dayTimeCrippling ambient temperatures are just one of the challenges when working in the desert. Others are sandstorms and even flooding episodes.

man magazine 1/2015

22 23

but also all ancillary equipment – ranging from the machine control-room and cooling systems to the processing and disposal sys-tems – while the local consortium partner Al Aman Company is responsible for all civil, electrical and mechanical construction and in-stallation work. The project was signed off in summer 2013, with construction commencing a year later and final power plant handover to the customer scheduled for February 2016. The trailers’ just-in-time arrival at Old Makkha Road, from where they turned east to the UCIC site, was a timing triumph for senior project manager Ralf Göppel and his team at MAN Diesel & Turbo headquarters in Augsburg. Had the engines arrived too early, they would have disrupted work on the project’s ongoing build-ing phase, while laying the foundations for the powerhouse, pumphouse, radiator area or tank farm. Had they arrived too late, the delivery would have delayed the next stage of construc-tion, especially installing the auxiliary mod-ules, steel structure, piping and cabling as well as the installation of the 35-ton alternators in-side the powerhouse.

Timing The exacT arrival is essential in a project like this,” says Göppel, who always has to cope with all kinds of eventualities, includ-ing sandstorms, local incidents, late deliveries or sudden lack of manpower. Delivering all plant components to the UCIC site is a huge ex-ercise in logistics. While the Diesel engines were built in MAN’s Augsburg works, most of the other equipment was purchased from glob-al suppliers as far away as India or Finland. They all must first undertake an almost epic journey via European North Sea ports, to Jed-dah, and finally move down a sandy gravel road to the UCIC site. For the first time, engines of this type were initially put on a train to trav-el from Augsburg to Duisburg in Germany for final assembly, later transported via the Rhine River to Antwerp in Belgium and then shipped to Jeddah in Saudi Arabia. Overall, it took more than a month to arrive at the plant in the des-ert. Saudi Arabia’s cement industry is flourish-ing, due to a construction boom caused by de-mographic and macroeconomic factors. Ph

otos

: Wal

eed

Bin

Talip

“if you need to deal with a problem today, you have made a mistake half a year ago.” Ralf Göppel, Senior Project Manager, MAN Diesel & Turbo SE

A growing population and changing family structures – such as the trend toward smaller households – are increasing demand for resi-dential properties and new industrial areas, in-cluding big oil refineries. At the same time, the government vastly increased infrastructure spending since 2013, resulting from a great year for the oil industry in 2012 and an associated 20% surplus in GDP.

This has turned the kingdom into the larg-est projects market in the Middle East, accord-ing to the “Saudi Arabia Projects Market 2014” issued by MEED, a Middle East business intelli-gence provider. “Saudi Arabia is a key market for our power plants division, where we have gathered decades of experience,” says Howard Barnes, Senior Vice President and Global Head of Sales Power Plants. The UCIC power plant will supply 55 megawatts , facilitating a cement pro-duction capacity of around 5,000 tons per day. Remote sites are, by nature, difficult to access and each project presents its own engineering and logistical challenges. The engines at UCIC were designed to withstand local conditions, including temperatures of up to 50°C. Special pulse filter systems in front of the air-intake ducts keep sand particles out, using com-pressed air to blow air filters free when sensors

register a loss of air-intake pressure, while a huge system of radiator coolers is designed to regulate the cooling water systems.

göPPel deScribeS his Saudi-specific chal-lenges as: “Sandstorms! Ramadan! Heavy rain!” In spring and summer, the northwest-erly Shamal wind creates sandstorms that can cut visibility to almost zero. In 2014, such storms interrupted onsite work almost every afternoon from June through August. Al-though rare, rain is also a problem, as cities and environs are not equipped with rainwater drains. Jeddah was completely flooded after heavy rainfalls back in 2010, with hundreds of people killed. “When it started to rain in No-vember 2014, the workers panicked and left to reach their families,” recalls Göppel. Also that year, Ramadan, the ninth month of the Islam-ic calendar, proceeded during the month of July, when daytime temperatures reached 50°C in the shade – if there was any shade. While faithful Muslims may work throughout this period, they must fast during daylight hours. Göppel solved the issue by switching work shifts to night time during the month of Ramadan. Another aspect slowing down work schedules are the five required prayer sessions per day. “We expect less daily progress in Sau-di Arabia than in other countries, which must be reflected by work schedules,” says Göppel. For the four weeks of Ramadan, for example, he calculates a 50% reduction in progress and even 70% less efficiency during the annual fortnight Eid and Hajj holidays. A vital factor is the skilled MAN team of managers and su-pervisors on site, who are coordinating and driving the construction efforts. Some remain in the desert of Saudi Arabia for a year or even longer. On average, MAN has between 18 and 22 months to finalize a power plant project, with significant fines and penalties built into the contract for late handover to the customer. “It’s important to quickly identify any real problems and how to address them,” says Göp-pel, who claims that almost nothing can ruffle him anymore. “When you have a great team like mine, be it on site or at headquarters, this is the most exciting job in the world.”

50°cEach of the five engines features 20 cylinders providing 560 kW/Cyl and renders a performance of more than 15,000 hp.

The MAN team meets with project engineers to discuss the last preparations before the first engine arrives.

b etween Saudi Arabia’s Jeddah Islamic Port on the Red Sea and the Al-Sadiya Mountains, a des-ert area not far from Mecca,

there is little more than sand and a handful of camels and sheep. Yet in November 2014, five giant trucks hauling huge monsters of steel rumbled through the desert – scary black sil-houettes against an ancient golden landscape.

Their cargo was a 130-ton MAN 20V32/ 44CR diesel engine for a new cement plant un-der construction in the limestone-rich Al-Sadi-ya site on behalf of the United Cement Indus-trial Company (UCIC), a Jeddah-based Saudi business established in 2013. MAN Diesel & Turbo had received an engineering, procure-ment and construction (EPC) contract to build an independent diesel power plant for the new facility. In its product portfolio, MAN Diesel & Turbo carries specifically engineered power plants for remote locations with no ac-cess to electricity grids (island mode) all over the world. And as these are the only source of power, technical excellence is essential. Sup-plied MAN engines for this project feature modern common rail technology, an electron-ically controlled injection system that controls fuel consumption and emissions. For the UCIC project, MAN supplies not only the engines,

during dayTimeCrippling ambient temperatures are just one of the challenges when working in the desert. Others are sandstorms and even flooding episodes.

man magazine 1/2015

24 25

Two voices for one team

The U.S. energy market is undergo-ing a revolution, a new gold rush for the 21st century, but this time the prize is natural gas. Thanks to technological developments in horizontal drilling and hydraulic

fracturing, it has become possible to tap natural gas reserves that would not have been econom-ically viable using conventional exploration methods. In 2013, shale gas production ac-counted for approximately 40% of contiguous U.S. Natural gas production, up from about 5% in 2006, and this number is projected to rise further over the next 20 years.

The abundance of gas has pushed down its price, making it far more attractive than be-fore in comparison with more traditional

Through a strategic cooperation with engine expert Fairbanks Morse, MAN Diesel & Turbo broadens its access to the booming natural gas market in the U.S.

“We have had a great response from customers.”Marvin Riley, President, Fairbanks Morse Engine

we wanted to expand our presence that we should work through Fairbanks Morse.

How is the newly installed infrastructure different from the systems it is replacing?MR: With the change in market conditions, there are a large number of coal retirements taking place in the U.S., and the nuclear indus-try is basically flat. The real growth is in dis-tributed power. When you retire a coal plant, you won’t replace that coal plant with an equivalent plant that has the same capacity. You replace the power with smaller, distrib-uted, more efficient gas-fired power plants, and these facilities are a perfect fit for recip-rocating engines.HB: We foresee considerable investment in decentralized gas-based power plants, vary-ing in size between 10 and 200 megawatts. What’s interesting is that we have made a number of developments in gas engine tech-nology over the last few years, and these new gas engines are able to operate in conditions that are suited to the U.S. The market, going decentralized, is looking more and more for peaking applications, and gas engine technol-ogy is very suitable for this.

What do you see as the benefit of this cooperation, for your company?HB: Fairbanks Morse Engine is well estab-lished in the marine and power generation

Phot

os: M

AN

, Ste

phen

Vos

s

Founded in the late 19th century and now an EnPro Industries company, power solu-tions expert Fairbanks Morse Engine (FME) is a manufacturer of heavy-duty, medium-speed diesel, natural gas and dual-fuel en-gines from 0.5 to 3 MW for applications specifically tailored to marine propulsion, power generation, pumps and compressors. FME covers a wide range of municipal, in-stitutional and industrial applications, pri-mary customers being the U.S. Navy and the U.S. Coast Guard: 70 percent of the U.S. Navy fleet uses FME engines, with supplier relations dating back more than 70 years. Based in Beloit, Wisconsin, and represented through service centers across the U.S., FME has been a MAN Diesel & Turbo licens-ee for marine turbine technology since 1995. www.fairbanksmorse.com

About Fairbanks Morse:

been visiting us in Germany to get to know the technology and the gas engine product. During a second phase, we’re launching this product in the marketplace directly, with util-ities, with industrial groups.

How has the market reacted to news of this cooperation?MR: We have had a great response from cus-tomers, and we’ve been very busy. We have al-ready met with at least 16 EPC firms, doing lunch and learns. We have agreed to do much deeper dives with some of the customers that have an extensive project list, and we have also started to bid on a number of projects. HB: I think the cooperation so far really has been very good. Fairbanks Morse is also an engine manufacturer, so we speak the same language. We understand each other. I trust that once we’ve passed the five-year bench-mark, we will have established a business that is profitable and sustainable.

Marvin Riley was appointed President of Fairbanks Morse Engine in 2012, after holding various

positions at EnPro Industries and General Motors.

Howard Barnes is Senior Vice President at MAN Diesel & Turbo as well as Global Head of Sales for the Power Plant business.

sectors, with manufacturing and assembly fa-cilities in the U.S. They have satellite offices in many important segments of the U.S., so the infrastructure is there, and this is infrastruc-ture that we don’t have. While FME does pro-duce engines, they are of a much smaller size, namely in the range of 0.5 to 3 MW. The en-gines we make are substantially larger, so there’s no conflict. There’s really only synergy. MR: And what MAN brings to the table is not only a great product, and a great-performing one at that, but a legacy of engineering excellence.

What has happened since the coopera-tion was signed in June?HB: We kicked off with quite an intensive training and familiarization program where Fairbanks specialists in most disciplines have

sources of energy, primarily coal and nuclear. New infrastructure is being built to transport the gas to its point of use, and U.S. energy pro-viders are replacing existing generation facil-ities with distributed power, a network of smaller gas-powered generators, more effi-cient and more environmentally-friendly.

These new market conditions form the backdrop for a new cooperation between MAN Diesel & Turbo and Fairbanks Morse, one of the top three companies in the U.S. energy market in terms of installed megawatts. Fairbanks Morse will use their contacts and experience to bring MDT engines to a new, broader market in energy production, a synergy with tremen-dous opportunities for both parties. We sat down with Marvin Riley and Howard Barnes to talk about the future of this bold new venture.

Is it fair to say that this is a new golden age for gas in the U.S.? Marvin Riley: Absolutely. We expect 1,900 miles of new natural gas pipelines to be built over the next two years, and this is primarily because of the shale gas revolution. The gas generation market is booming, and we would like to take full advantage of that. The infra-structure is being built to support whatever technologies will take advantage of it. In the future it could be transportation or other technologies, but for now, the growth is in power generation.Howard Barnes: And this has opened up new opportunities to expand our existing part-nership. FME has licensed MAN engines for the marine market since 1995 and they have a strong footprint and a strong presence in the U.S.A. So it was a very logical step for us when

man magazine 1/2015

24 25

Two voices for one team

The U.S. energy market is undergo-ing a revolution, a new gold rush for the 21st century, but this time the prize is natural gas. Thanks to technological developments in horizontal drilling and hydraulic

fracturing, it has become possible to tap natural gas reserves that would not have been econom-ically viable using conventional exploration methods. In 2013, shale gas production ac-counted for approximately 40% of contiguous U.S. Natural gas production, up from about 5% in 2006, and this number is projected to rise further over the next 20 years.

The abundance of gas has pushed down its price, making it far more attractive than be-fore in comparison with more traditional

Through a strategic cooperation with engine expert Fairbanks Morse, MAN Diesel & Turbo broadens its access to the booming natural gas market in the U.S.

“We have had a great response from customers.”Marvin Riley, President, Fairbanks Morse Engine

we wanted to expand our presence that we should work through Fairbanks Morse.

How is the newly installed infrastructure different from the systems it is replacing?MR: With the change in market conditions, there are a large number of coal retirements taking place in the U.S., and the nuclear indus-try is basically flat. The real growth is in dis-tributed power. When you retire a coal plant, you won’t replace that coal plant with an equivalent plant that has the same capacity. You replace the power with smaller, distrib-uted, more efficient gas-fired power plants, and these facilities are a perfect fit for recip-rocating engines.HB: We foresee considerable investment in decentralized gas-based power plants, vary-ing in size between 10 and 200 megawatts. What’s interesting is that we have made a number of developments in gas engine tech-nology over the last few years, and these new gas engines are able to operate in conditions that are suited to the U.S. The market, going decentralized, is looking more and more for peaking applications, and gas engine technol-ogy is very suitable for this.

What do you see as the benefit of this cooperation, for your company?HB: Fairbanks Morse Engine is well estab-lished in the marine and power generation

Phot

os: M

AN

, Ste

phen

Vos

s

Founded in the late 19th century and now an EnPro Industries company, power solu-tions expert Fairbanks Morse Engine (FME) is a manufacturer of heavy-duty, medium-speed diesel, natural gas and dual-fuel en-gines from 0.5 to 3 MW for applications specifically tailored to marine propulsion, power generation, pumps and compressors. FME covers a wide range of municipal, in-stitutional and industrial applications, pri-mary customers being the U.S. Navy and the U.S. Coast Guard: 70 percent of the U.S. Navy fleet uses FME engines, with supplier relations dating back more than 70 years. Based in Beloit, Wisconsin, and represented through service centers across the U.S., FME has been a MAN Diesel & Turbo licens-ee for marine turbine technology since 1995. www.fairbanksmorse.com

About Fairbanks Morse:

been visiting us in Germany to get to know the technology and the gas engine product. During a second phase, we’re launching this product in the marketplace directly, with util-ities, with industrial groups.

How has the market reacted to news of this cooperation?MR: We have had a great response from cus-tomers, and we’ve been very busy. We have al-ready met with at least 16 EPC firms, doing lunch and learns. We have agreed to do much deeper dives with some of the customers that have an extensive project list, and we have also started to bid on a number of projects. HB: I think the cooperation so far really has been very good. Fairbanks Morse is also an engine manufacturer, so we speak the same language. We understand each other. I trust that once we’ve passed the five-year bench-mark, we will have established a business that is profitable and sustainable.

Marvin Riley was appointed President of Fairbanks Morse Engine in 2012, after holding various

positions at EnPro Industries and General Motors.

Howard Barnes is Senior Vice President at MAN Diesel & Turbo as well as Global Head of Sales for the Power Plant business.

sectors, with manufacturing and assembly fa-cilities in the U.S. They have satellite offices in many important segments of the U.S., so the infrastructure is there, and this is infrastruc-ture that we don’t have. While FME does pro-duce engines, they are of a much smaller size, namely in the range of 0.5 to 3 MW. The en-gines we make are substantially larger, so there’s no conflict. There’s really only synergy. MR: And what MAN brings to the table is not only a great product, and a great-performing one at that, but a legacy of engineering excellence.

What has happened since the coopera-tion was signed in June?HB: We kicked off with quite an intensive training and familiarization program where Fairbanks specialists in most disciplines have

sources of energy, primarily coal and nuclear. New infrastructure is being built to transport the gas to its point of use, and U.S. energy pro-viders are replacing existing generation facil-ities with distributed power, a network of smaller gas-powered generators, more effi-cient and more environmentally-friendly.

These new market conditions form the backdrop for a new cooperation between MAN Diesel & Turbo and Fairbanks Morse, one of the top three companies in the U.S. energy market in terms of installed megawatts. Fairbanks Morse will use their contacts and experience to bring MDT engines to a new, broader market in energy production, a synergy with tremen-dous opportunities for both parties. We sat down with Marvin Riley and Howard Barnes to talk about the future of this bold new venture.

Is it fair to say that this is a new golden age for gas in the U.S.? Marvin Riley: Absolutely. We expect 1,900 miles of new natural gas pipelines to be built over the next two years, and this is primarily because of the shale gas revolution. The gas generation market is booming, and we would like to take full advantage of that. The infra-structure is being built to support whatever technologies will take advantage of it. In the future it could be transportation or other technologies, but for now, the growth is in power generation.Howard Barnes: And this has opened up new opportunities to expand our existing part-nership. FME has licensed MAN engines for the marine market since 1995 and they have a strong footprint and a strong presence in the U.S.A. So it was a very logical step for us when

man magazine 1/2015

26 27

Worldwide sourcing and distribution of LNG has grown into a major industry player while seeking to balance the growing global appetite for affordable energy with environmental concerns.

Gas

Securing power: The sprawling LNG storage facilities at the

Rotterdam port in the Netherlands.Phot

os: a

ll m

auri

tius

-im

ages

, cou

rtes

y of

OAO

Sov

com

flot

A mong the largest commer-cial vessels cruising the oceans today are liquid n a t u r a l g a s c a r r i e r s

(LNGCs) that are almost 300 meters long and more than 45 meters wide. One of the most common vessel sizes is capable of carrying 170,000 cubic meters of super-cooled LNG from its country of sourcing to where it is needed to generate electricity to light and heat homes and power the wheels of industry. MAN Diesel & Turbo is in the fortunate position to offer ship owners either four-stroke dual fuel engines for diesel-electric propulsion or two-stroke MEGI high-pressure gas injection for conventional propulsion. Typically diesel elec-tric propulsion solutions are powered by two 8L51/60DF and two 9L51/60DF types with a combined total output of 34 MW. And the market is booming. In July 2014, SinoShip News announced that China is planning to build 60 new LNGCs by 2020, at a total cost of $12 bil-lion. While this trend is partially driven by in-creased gas production in the United States through non-traditional methods, LNG is also attractive due to its green credentials.

NAturAl GAs burNs far cleaner than oth-er fossil fuels do, producing 30% less carbon dioxide than petroleum and 45% less than coal, as well as significantly lower levels of sulfur and nitrogen oxides. “Natural gas and air are mixed before entering the combustion

The new LNG carrier “Veliky Novgorod” features a diesel-electric, dual-fuel propulsion MAN Diesel & Turbo system.

Gian

ts

man magazine 1/2015

26 27

Worldwide sourcing and distribution of LNG has grown into a major industry player while seeking to balance the growing global appetite for affordable energy with environmental concerns.

Gas

Securing power: The sprawling LNG storage facilities at the

Rotterdam port in the Netherlands.Phot

os: a

ll m

auri

tius

-im

ages

, cou

rtes

y of

OAO

Sov

com

flot

A mong the largest commer-cial vessels cruising the oceans today are liquid n a t u r a l g a s c a r r i e r s

(LNGCs) that are almost 300 meters long and more than 45 meters wide. One of the most common vessel sizes is capable of carrying 170,000 cubic meters of super-cooled LNG from its country of sourcing to where it is needed to generate electricity to light and heat homes and power the wheels of industry. MAN Diesel & Turbo is in the fortunate position to offer ship owners either four-stroke dual fuel engines for diesel-electric propulsion or two-stroke MEGI high-pressure gas injection for conventional propulsion. Typically diesel elec-tric propulsion solutions are powered by two 8L51/60DF and two 9L51/60DF types with a combined total output of 34 MW. And the market is booming. In July 2014, SinoShip News announced that China is planning to build 60 new LNGCs by 2020, at a total cost of $12 bil-lion. While this trend is partially driven by in-creased gas production in the United States through non-traditional methods, LNG is also attractive due to its green credentials.

NAturAl GAs burNs far cleaner than oth-er fossil fuels do, producing 30% less carbon dioxide than petroleum and 45% less than coal, as well as significantly lower levels of sulfur and nitrogen oxides. “Natural gas and air are mixed before entering the combustion

The new LNG carrier “Veliky Novgorod” features a diesel-electric, dual-fuel propulsion MAN Diesel & Turbo system.

Gian

ts

1/2015

28 29

“Working with well-known and established partners is essential in the lNG business.”Christian Bale, Head of LNG Offshore at MOL

mAN mAGAziNe

All time LNG trade totals 3,667 millioN metric toNs of LNG (the equivalent of 4,978 bcm of gas).

424 lNG ships have been built and more are currently on the order books.

Indonesia: 721 Qatar: 566

Algeria: 525 Malaysia: 439 Australia: 268 Brunei: 238 Others: 911

by exporter

million tons

South Korea: 329 Japan: 116 France: 38 China: 20 USA: 16

Others: 32

LNG fleet by shipbuilding country

no. of ships

Scrapped: 31 Current Fleet: 393 Order book: 127

LNG fleet by current status

no. of ships

by importer

million tons

Japan: 1,707 South Korea: 464

Spain: 295 France: 268 Taiwan: 151

USA: 148 Others: 635

Five decades of lNGCommissioned in 1964, the LNG Tanker “Methane Princess” delivered the world’s first commercial liquefied natural gas to a British re-gasification terminal. Since then, the sector has assumed an impor-tant role in the global energy industry.

destination port, the liquid gas is unloaded before warming up and decompression for fu-ture use. While this had traditionally been ac-complished in on-shore facilities, another so-lution has been available since 2005, namely a floating storage re-gasification unit (FSRU). This unit sits a few miles offshore, allowing LNGCs to dock and unload their cargo of LNG. This gas can then be stored directly at the facility before being pumped ashore through a subsea pipeline. Compared with an onshore facility, an FSRU can be set up with minimal impact while its mobility allows for reloca-tion if market demands change.

iN october oF 2013, the Japanese shipping company Mitsui O.S.K. Lines (MOL) signed a so-called BOOT (build, own, operate and trans-fer) contract for the duration of 20 years with the Montevideo-based joint venture Gas Say-ago for LNG storage and re-gasification servic-es in Uruguay. Currently under construction at Daewoo Shipbuilding & Marine Engineer-ing in South Korea, this FSRU will have a stor-

age capacity of 263,000 cubic meters of LNG, rendering it the largest worldwide. Construc-tion will be completed by September 2016, and the unit will enter service in November 2016, following delivery and commissioning at the port of Montevideo.

“The business success of FSRU technology is rooted in cooperation and trusting rela-tionships among national governments, fi-nancial investors and gas industry operators,” says Christian Bale, Head of LNG Offshore at MOL. “The recent contract with Uruguay re-sults in the FSRU being moored only five kilo-meters off the coast of Montevideo, thus aptly illustrating the necessary cooperation with well-known and established partners.”

Power on the FSRU will be generated by MAN dual-fuel engines with the flexibility to run on diesel or excess LNG, as required. “We chose MAN engines for a number of reasons,” says Bale. “MAN is a credible manufacturer with a good reputation and offers suitable dual-fuel engines that meet our objectives of low liquid and gas consumption, low emis-sions, local support in Korea for the Daewoo Shipyard and also where the vessel operates. As the installation won’t move from its off-shore position for 20 years, it is essential to receive MAN’s support to ensure uninterrupt-ed operations.” Bale also emphasizes that the available training courses on the dual-fuel en-gines are absolutely essential for MOL em-ployees – and not just in Germany, but also

chamber and ignited via a small quantity of injected MDO/MGO pilot fuel. The combus-tion process according to the Otto-cycle en-sures the lowest nitrous oxide (NOx) emis-sions when operating in gas mode, which are lower than projected future emission limits. For the sake of fuel flexibility, the engine can operate alternatively in liquid mode, where fuel oil is injected via conventional main pumps as in the 48/60B HFO engine,” ex-plains Dietmar Zutt, Head of Sales Merchant Marine at MAN Diesel & Turbo.

The booming LNG market is driving more than ship production, however. There is sig-nificant growth and investment at every stage of the process chain, ranging from new production facilities and pipelines to new gas-burning power plants to utilize the abun-dance of gas. One important link in this chain is present at the beginning and end of every LNGC journey, specifically in the ports where the vessels are loaded and unloaded. A lique-faction facility is required to cool and com-press the gas before taking it on board. At the

is the overall storage capacity of an FSRU unit currently under construction in South Korea, so far the largest worldwide.

263,000cubic meters

MAN Diesel & Turbo engines will provide the power for this floating storage and re-gasification unit, anchored four kilometers offshore from Montevideo, Uruguay.

where the vessels are actually built. “Last, but not least,” adds Bale, “the fact that the engines were ‘Made in Germany’ was a factor in the selection process, as this assured us that pro-duction and testing were of the highest qual-ity as far as engine design is concerned.”

“Due to their cuttiNG-eDGe technology, these engines are highly efficient and there-fore attractive to buyers. In gas mode, the en-gine operates according to the lean-burn four-stroke Otto combustion process,” says Zutt. “The premixed lean gas/air mixture is ignited by the compression ignition of a small quantity of injected MDO-pilot fuel into the main combustion chamber. The amount of this injected pilot fuel is less than 1% of the full-load liquid fuel quantity. This ensures the lowest NOx emissions in gas mode, which are even lower than projected future emission limits. In the liquid fuel mode, the fuel oil is injected via the conventional main pumps as in the 48/60B–HFO engine.”

As part of Uruguay’s energy policy plan 2005-2030, the LNG import terminal project is a cornerstone for energy development in this country and considered a top priority by the government. It is projected that it will signifi-cantly change the national energy market by providing an additional clean fuel source and reducing the share of imported oil in the en-ergy mix. This strategy is not only good for business, but also good for the planet.Ph

otos

: GD

F Su

ez S

.A.

Source: Wood Mackenzie

1/2015

28 29

“Working with well-known and established partners is essential in the lNG business.”Christian Bale, Head of LNG Offshore at MOL

mAN mAGAziNe

All time LNG trade totals 3,667 millioN metric toNs of LNG (the equivalent of 4,978 bcm of gas).

424 lNG ships have been built and more are currently on the order books.

Indonesia: 721 Qatar: 566

Algeria: 525 Malaysia: 439 Australia: 268 Brunei: 238 Others: 911

by exporter

million tons

South Korea: 329 Japan: 116 France: 38 China: 20 USA: 16

Others: 32

LNG fleet by shipbuilding country

no. of ships

Scrapped: 31 Current Fleet: 393 Order book: 127

LNG fleet by current status

no. of ships

by importer

million tons

Japan: 1,707 South Korea: 464

Spain: 295 France: 268 Taiwan: 151

USA: 148 Others: 635

Five decades of lNGCommissioned in 1964, the LNG Tanker “Methane Princess” delivered the world’s first commercial liquefied natural gas to a British re-gasification terminal. Since then, the sector has assumed an impor-tant role in the global energy industry.

destination port, the liquid gas is unloaded before warming up and decompression for fu-ture use. While this had traditionally been ac-complished in on-shore facilities, another so-lution has been available since 2005, namely a floating storage re-gasification unit (FSRU). This unit sits a few miles offshore, allowing LNGCs to dock and unload their cargo of LNG. This gas can then be stored directly at the facility before being pumped ashore through a subsea pipeline. Compared with an onshore facility, an FSRU can be set up with minimal impact while its mobility allows for reloca-tion if market demands change.

iN october oF 2013, the Japanese shipping company Mitsui O.S.K. Lines (MOL) signed a so-called BOOT (build, own, operate and trans-fer) contract for the duration of 20 years with the Montevideo-based joint venture Gas Say-ago for LNG storage and re-gasification servic-es in Uruguay. Currently under construction at Daewoo Shipbuilding & Marine Engineer-ing in South Korea, this FSRU will have a stor-

age capacity of 263,000 cubic meters of LNG, rendering it the largest worldwide. Construc-tion will be completed by September 2016, and the unit will enter service in November 2016, following delivery and commissioning at the port of Montevideo.

“The business success of FSRU technology is rooted in cooperation and trusting rela-tionships among national governments, fi-nancial investors and gas industry operators,” says Christian Bale, Head of LNG Offshore at MOL. “The recent contract with Uruguay re-sults in the FSRU being moored only five kilo-meters off the coast of Montevideo, thus aptly illustrating the necessary cooperation with well-known and established partners.”

Power on the FSRU will be generated by MAN dual-fuel engines with the flexibility to run on diesel or excess LNG, as required. “We chose MAN engines for a number of reasons,” says Bale. “MAN is a credible manufacturer with a good reputation and offers suitable dual-fuel engines that meet our objectives of low liquid and gas consumption, low emis-sions, local support in Korea for the Daewoo Shipyard and also where the vessel operates. As the installation won’t move from its off-shore position for 20 years, it is essential to receive MAN’s support to ensure uninterrupt-ed operations.” Bale also emphasizes that the available training courses on the dual-fuel en-gines are absolutely essential for MOL em-ployees – and not just in Germany, but also

chamber and ignited via a small quantity of injected MDO/MGO pilot fuel. The combus-tion process according to the Otto-cycle en-sures the lowest nitrous oxide (NOx) emis-sions when operating in gas mode, which are lower than projected future emission limits. For the sake of fuel flexibility, the engine can operate alternatively in liquid mode, where fuel oil is injected via conventional main pumps as in the 48/60B HFO engine,” ex-plains Dietmar Zutt, Head of Sales Merchant Marine at MAN Diesel & Turbo.

The booming LNG market is driving more than ship production, however. There is sig-nificant growth and investment at every stage of the process chain, ranging from new production facilities and pipelines to new gas-burning power plants to utilize the abun-dance of gas. One important link in this chain is present at the beginning and end of every LNGC journey, specifically in the ports where the vessels are loaded and unloaded. A lique-faction facility is required to cool and com-press the gas before taking it on board. At the

is the overall storage capacity of an FSRU unit currently under construction in South Korea, so far the largest worldwide.

263,000cubic meters

MAN Diesel & Turbo engines will provide the power for this floating storage and re-gasification unit, anchored four kilometers offshore from Montevideo, Uruguay.

where the vessels are actually built. “Last, but not least,” adds Bale, “the fact that the engines were ‘Made in Germany’ was a factor in the selection process, as this assured us that pro-duction and testing were of the highest qual-ity as far as engine design is concerned.”

“Due to their cuttiNG-eDGe technology, these engines are highly efficient and there-fore attractive to buyers. In gas mode, the en-gine operates according to the lean-burn four-stroke Otto combustion process,” says Zutt. “The premixed lean gas/air mixture is ignited by the compression ignition of a small quantity of injected MDO-pilot fuel into the main combustion chamber. The amount of this injected pilot fuel is less than 1% of the full-load liquid fuel quantity. This ensures the lowest NOx emissions in gas mode, which are even lower than projected future emission limits. In the liquid fuel mode, the fuel oil is injected via the conventional main pumps as in the 48/60B–HFO engine.”

As part of Uruguay’s energy policy plan 2005-2030, the LNG import terminal project is a cornerstone for energy development in this country and considered a top priority by the government. It is projected that it will signifi-cantly change the national energy market by providing an additional clean fuel source and reducing the share of imported oil in the en-ergy mix. This strategy is not only good for business, but also good for the planet.Ph

otos

: GD

F Su

ez S

.A.

Source: Wood Mackenzie

1/2015

30 31

man magazine

Smart SavingS

Illu

stra

tion

: Hok

olo

3D

a simple solution with great impact; this is the premise behind the new MAN Eco-Cam retrofit solution. The

MAN EcoCam takes advantage of existing mechanical engine technology by adjusting the amount of actuator oil in the engine’s hy-draulic pushrod (1). In effect, oil is drained off the circuit through an added pipe (2), which enables the exhaust valve to close earlier than in a traditional diesel engine. The result is higher compression pressure (3), and the cre-ation of a “virtual” or flexible cam profile. This profile serves as the backbone of an optimized circuit that allows higher combustion pressure even at lower fuel-oil consumption (4).

“The MAN EcoCam adjusts the exhaust-valve timing between 10% and 60% load, giv-ing a 2-5g/kW fuel saving with minimal to no interruption to a vessel’s schedule during installation,” says Christian Ludwig, Head of Retrofit & Upgrade. For smaller engines, this could mean payback periods as small as 18 months. Even with oil prices on the low end, the technology is still feasible. The MAN Eco-Cam is available for S50MC-C engine types, and will soon be rolled out for the whole mid-bore and large-bore engine program.

The MAN EcoCam retrofit solution for low-load optimization of low-speed mechanical engines improves fuel efficiency with a simple yet ingenious approach to diesel engineering.

With fuel savings between 2-5 g/kW, the MAN EcoCam could pay for itself in as little as 18 months, for smaller engines.

The amount of actuator oil influences the hydraulic pushrod.

Adjusted valve opening.

The MAN EcoCam’s effect on NOx levels has been taken into

consideration and is in compliance with

IMO regulations.

Earlier closing of the exhaust valve allows

for around 10% higher compression

pressure.

The cam’s profile is controlled by the adjusted

amount of actuator oil. This allows for the new flex-ible or “virtual” cam profile.

1

2

3

4

Draining off actuator oil allows the exhaust valve to close earlier.

1/2015

30 31

man magazine

Smart SavingS

Illu

stra

tion

: Hok

olo

3D

a simple solution with great impact; this is the premise behind the new MAN Eco-Cam retrofit solution. The

MAN EcoCam takes advantage of existing mechanical engine technology by adjusting the amount of actuator oil in the engine’s hy-draulic pushrod (1). In effect, oil is drained off the circuit through an added pipe (2), which enables the exhaust valve to close earlier than in a traditional diesel engine. The result is higher compression pressure (3), and the cre-ation of a “virtual” or flexible cam profile. This profile serves as the backbone of an optimized circuit that allows higher combustion pressure even at lower fuel-oil consumption (4).

“The MAN EcoCam adjusts the exhaust-valve timing between 10% and 60% load, giv-ing a 2-5g/kW fuel saving with minimal to no interruption to a vessel’s schedule during installation,” says Christian Ludwig, Head of Retrofit & Upgrade. For smaller engines, this could mean payback periods as small as 18 months. Even with oil prices on the low end, the technology is still feasible. The MAN Eco-Cam is available for S50MC-C engine types, and will soon be rolled out for the whole mid-bore and large-bore engine program.

The MAN EcoCam retrofit solution for low-load optimization of low-speed mechanical engines improves fuel efficiency with a simple yet ingenious approach to diesel engineering.

With fuel savings between 2-5 g/kW, the MAN EcoCam could pay for itself in as little as 18 months, for smaller engines.

The amount of actuator oil influences the hydraulic pushrod.

Adjusted valve opening.

The MAN EcoCam’s effect on NOx levels has been taken into

consideration and is in compliance with

IMO regulations.

Earlier closing of the exhaust valve allows

for around 10% higher compression

pressure.

The cam’s profile is controlled by the adjusted

amount of actuator oil. This allows for the new flex-ible or “virtual” cam profile.

1

2

3

4

Draining off actuator oil allows the exhaust valve to close earlier.

32

man magazine

Dr. Stopford, the global shipping fleet continues to grow. Is the market overheated? Dr. Stopford: There was talk of a bubble in 2013 when ship orders reached $129 billion — 42% more than the previous year, and the highest rate since 2008. This despite a long re-cession, caused by the excesses of the 2000s and followed by the 2008 financial crisis. Yet while the current spending spree shows char-acteristics of a bubble, it is not unusual in shipping cycles. It is also fed by investment in fuel-efficient ships as a response to Interna-tional Maritime Organization emission rules, as well as highly competitive new ship prices and accessible credit for construction.

In the light of this situation, what must shipping companies take account of? Ship owners typically buy when the market is slow and prices are good. It takes two to three years for delivery and they hope the market will have improved by then. Those keeping a close look on the balance sheets, and not or-dering too much, will emerge as lean players after the cycle, ready to make a profit. This is just market economics. Historically, ship owners made some of their most rewarding investments at a time when ordering hardly made sense. Shipping investors must take risks to win, but it is almost impossible to tell whether there will be a depression in three years or another great Asian boom. So it’s good for the world economy that ship owners

Mr. Nijsen, addressing the same issue: Is the market actually experiencing a boom or rather a bubble?Lex Nijsen: Wondering whether the shipping industry is heading for a boom or bubble re-ally depends on individual applications. This is a highly diversified industry, with many smaller owners serving different markets, so a bubble in one area won’t be overheating the entire global market.

So the shipping market does not render a unified appearance. Where is the current demand coming from?Our order books, which offer an indication of where markets are heading, indicate mixed trends. While the container market has shrunk in the face of a struggling global econ-omy, other markets are booming. Among MAN’s largest markets nowadays are special-ized vessels such as cruise ships, LNG tankers, governmental vessels and ferries – not con-tainer feeders. Let’s take a closer look: The lei-sure ship industry is thriving, as cruising be-comes ever more popular – especially among baby boomers now retiring with generous lei-sure funds. At the same time, political ten-sions in Southeast Asia have actually created a demand for patrol vessels to protect borders, fishing waters, and marine gas and oil re-serves. With developing economies opening up to tourism, the ferry market is also grow-ing. And every catastrophe, like the tragic 2014

Shipping rates have gone up by just 25% since 2008, yet the world fleet has increased by 50%, with shipping companies still on a shopping spree. Dr. Martin Stopford, President of Clarksons Research, and Lex Nijsen, Head of Marine Medi-um Speed at MAN Diesel & Turbo, offer their expert opin-ions on what this trend is all about.

Boom or bub ble?

take these risks, as ships are available when needed. The cycle is one of booms and busts: When freight rates rise, owners buy more ves-sels. Increased capacity and declining rates force ship owners to cut their fleets.

So where are we heading? Apparently, this cyclical development is not unusual … Indeed, it isn’t: There have been 23 shipping cycle booms and busts since 1741, all for very different reasons. I think this cycle will con-

ferry accident in South Korea, raises demand for state-of-the-art ferries.

Are environmental aspects also an issue?Yes, these are also a factor. Investing in clean-er technologies also spurs growth. New emis-sion regulations issued by the International Maritime Organization have spurred a great-er demand for our optimized propulsion sys-tems. I think we will see changes in the fish-ing industry, where there has been little in-vestment. Upcoming environmental regu- lations and the economies of scale will force Il

lust

rati

ons:

Ber

to M

arti

nez

33

1/2015

fisheries to completely renew their fleets. How would you assess the situation of

the container industry? The container market is uneven. Smaller con-tainer feeders and tankers operating in the northwest Baltic area and the Mediterranean, for example, have been harder hit by the glob-al economic slowdown than Southeast Asian markets. As for the current overcapacity of cargo ships, we might see some degree of speculation in lieu of future market growth. This is a normal part of the shipping cycle, and ship owners are generally experienced in judging the market. Also, some capacity has been absorbed through slow steaming. Speaking of Asia: China’s economy growth has been slowing down. Must ship yards fear a crisis? As the world’s top shipbuilder, China now constructs not only for exports, but also local demand. And the nation is diversifying into specialized and high-value market seg-ments, such as dredgers for port and con-struction. I don’t forecast a slow-down here and also expect the current boom in energy transport to last for a while, as China and Japan increasingly switch from coal and nuclear energy to gas. So you remain optimistic?Yes. Overall, I don’t believe that the ship- ping industry is heading for a double-dip recession. I am an optimist by nature.

tinue. Ship owner capacity peaked at 160 mil-lion tons in 2011, driven by high freight rates. This was no doubt a bubble influenced by the very profitable period in the 2000s, when owners earned more than $100,000 per day with some ships. Since 2011, the shipbuilding industry has cut about a third of its capacity, but that reduction isn’t enough. If owners keep buying ships, rebalancing supply and de-mand will take a long time.

Why are the order books of shipyards still bulging? It is an attractive time to buy. The most im-portant factor behind the current buying spree is probably the banking sector, which has not been keen to foreclose on ship own-ers. Without the distressed sales seen in previ-ous recessions, owners have kept prices of sec-ond-hand vessels high, encouraging the pur-chase of new ships rather than pre-utilized ones. And, with all the shipyard capacity in Asia, it is easier to get credit from one of the credit providers based in Korea or China.

From your point of view, are we headed for a boom period or rather a recession? I don’t think the industry will flat-line. We will see some mini booms. Still, considering the combination of shipyard over-capacity, pressure to invest in fuel-efficient ships, easy shipbuilding credit as well as a backlog of sur-plus, it will take a few years to return to a more balanced market.

“Those keeping a close look on ba-lance sheets, and not ordering too much, will emerge as lean players after the cycle.”Dr. Martin Stopford, President of Clarksons Research, London, UK

“This is a highly diversified industry, with many smaller owners serving different markets.”Lex Nijsen, Head of Marine Medium Speed at MAN Diesel & Turbo, Augsburg, Germany

32

man magazine

Dr. Stopford, the global shipping fleet continues to grow. Is the market overheated? Dr. Stopford: There was talk of a bubble in 2013 when ship orders reached $129 billion — 42% more than the previous year, and the highest rate since 2008. This despite a long re-cession, caused by the excesses of the 2000s and followed by the 2008 financial crisis. Yet while the current spending spree shows char-acteristics of a bubble, it is not unusual in shipping cycles. It is also fed by investment in fuel-efficient ships as a response to Interna-tional Maritime Organization emission rules, as well as highly competitive new ship prices and accessible credit for construction.

In the light of this situation, what must shipping companies take account of? Ship owners typically buy when the market is slow and prices are good. It takes two to three years for delivery and they hope the market will have improved by then. Those keeping a close look on the balance sheets, and not or-dering too much, will emerge as lean players after the cycle, ready to make a profit. This is just market economics. Historically, ship owners made some of their most rewarding investments at a time when ordering hardly made sense. Shipping investors must take risks to win, but it is almost impossible to tell whether there will be a depression in three years or another great Asian boom. So it’s good for the world economy that ship owners

Mr. Nijsen, addressing the same issue: Is the market actually experiencing a boom or rather a bubble?Lex Nijsen: Wondering whether the shipping industry is heading for a boom or bubble re-ally depends on individual applications. This is a highly diversified industry, with many smaller owners serving different markets, so a bubble in one area won’t be overheating the entire global market.

So the shipping market does not render a unified appearance. Where is the current demand coming from?Our order books, which offer an indication of where markets are heading, indicate mixed trends. While the container market has shrunk in the face of a struggling global econ-omy, other markets are booming. Among MAN’s largest markets nowadays are special-ized vessels such as cruise ships, LNG tankers, governmental vessels and ferries – not con-tainer feeders. Let’s take a closer look: The lei-sure ship industry is thriving, as cruising be-comes ever more popular – especially among baby boomers now retiring with generous lei-sure funds. At the same time, political ten-sions in Southeast Asia have actually created a demand for patrol vessels to protect borders, fishing waters, and marine gas and oil re-serves. With developing economies opening up to tourism, the ferry market is also grow-ing. And every catastrophe, like the tragic 2014

Shipping rates have gone up by just 25% since 2008, yet the world fleet has increased by 50%, with shipping companies still on a shopping spree. Dr. Martin Stopford, President of Clarksons Research, and Lex Nijsen, Head of Marine Medi-um Speed at MAN Diesel & Turbo, offer their expert opin-ions on what this trend is all about.

Boom or bub ble?

take these risks, as ships are available when needed. The cycle is one of booms and busts: When freight rates rise, owners buy more ves-sels. Increased capacity and declining rates force ship owners to cut their fleets.

So where are we heading? Apparently, this cyclical development is not unusual … Indeed, it isn’t: There have been 23 shipping cycle booms and busts since 1741, all for very different reasons. I think this cycle will con-

ferry accident in South Korea, raises demand for state-of-the-art ferries.

Are environmental aspects also an issue?Yes, these are also a factor. Investing in clean-er technologies also spurs growth. New emis-sion regulations issued by the International Maritime Organization have spurred a great-er demand for our optimized propulsion sys-tems. I think we will see changes in the fish-ing industry, where there has been little in-vestment. Upcoming environmental regu- lations and the economies of scale will force Il

lust

rati

ons:

Ber

to M

arti

nez

33

1/2015

fisheries to completely renew their fleets. How would you assess the situation of

the container industry? The container market is uneven. Smaller con-tainer feeders and tankers operating in the northwest Baltic area and the Mediterranean, for example, have been harder hit by the glob-al economic slowdown than Southeast Asian markets. As for the current overcapacity of cargo ships, we might see some degree of speculation in lieu of future market growth. This is a normal part of the shipping cycle, and ship owners are generally experienced in judging the market. Also, some capacity has been absorbed through slow steaming. Speaking of Asia: China’s economy growth has been slowing down. Must ship yards fear a crisis? As the world’s top shipbuilder, China now constructs not only for exports, but also local demand. And the nation is diversifying into specialized and high-value market seg-ments, such as dredgers for port and con-struction. I don’t forecast a slow-down here and also expect the current boom in energy transport to last for a while, as China and Japan increasingly switch from coal and nuclear energy to gas. So you remain optimistic?Yes. Overall, I don’t believe that the ship- ping industry is heading for a double-dip recession. I am an optimist by nature.

tinue. Ship owner capacity peaked at 160 mil-lion tons in 2011, driven by high freight rates. This was no doubt a bubble influenced by the very profitable period in the 2000s, when owners earned more than $100,000 per day with some ships. Since 2011, the shipbuilding industry has cut about a third of its capacity, but that reduction isn’t enough. If owners keep buying ships, rebalancing supply and de-mand will take a long time.

Why are the order books of shipyards still bulging? It is an attractive time to buy. The most im-portant factor behind the current buying spree is probably the banking sector, which has not been keen to foreclose on ship own-ers. Without the distressed sales seen in previ-ous recessions, owners have kept prices of sec-ond-hand vessels high, encouraging the pur-chase of new ships rather than pre-utilized ones. And, with all the shipyard capacity in Asia, it is easier to get credit from one of the credit providers based in Korea or China.

From your point of view, are we headed for a boom period or rather a recession? I don’t think the industry will flat-line. We will see some mini booms. Still, considering the combination of shipyard over-capacity, pressure to invest in fuel-efficient ships, easy shipbuilding credit as well as a backlog of sur-plus, it will take a few years to return to a more balanced market.

“Those keeping a close look on ba-lance sheets, and not ordering too much, will emerge as lean players after the cycle.”Dr. Martin Stopford, President of Clarksons Research, London, UK

“This is a highly diversified industry, with many smaller owners serving different markets.”Lex Nijsen, Head of Marine Medium Speed at MAN Diesel & Turbo, Augsburg, Germany

34

man magazine

WHen contracted to build the waste-to-energy plant “Wilton 11” in England, the Paris-based CNIM industrial solutions group brought MAN Diesel & Turbo on board. The state-of-the-art plant will supply northeast England with resource-friendly energy, reduc-ing carbon emissions while at the same time redirecting 90% of the area’s garbage away from landfills. Wilton 11 will generate energy by incinerating 60 metric tons of waste per hour. MAN Diesel & Turbo will supply not only the steam turbine, but also the genera-tor, condenser, lube-oil system and the com-plete instrumentation and control technolo-gy. CNIM’s environmental operations division has often worked with MAN Diesel & Turbo before. “MAN has brought a comprehensive, technical competence to our project and is a partner that we know we can rely on,” com-ments Olivier Serres, Steam Turbine & Con-denser Purchaser at CNIM.

British waste conversion

Rising high above the Strait of Gibraltar, the famous rock looks

down on a bustling economy.

Steam generated by the heat expands in the steam turbine and drives the electrical generator.

2014 ended on a HigH note for MAN Diesel & Turbo. An important contract for the supply and installation of six gas and dual fuel engines to operate a new base load power plant in Gibraltar was signed shortly before Christmas. “This is a significant proj-ect for us,” says Howard Barnes, Global Head of Sales for the Power Plant Business. “The Government of Gibraltar was looking for reliable generation capacities with a low car-bon footprint. The chosen combination of gas and dual fuel grants both: The plant benefits from low CO2 emissions when run on natural gas and yet offers full fuel flex-ibility via the three dual fuel engines.” By mid-2017, three 14V51/60G and three 14V51/60DF engines will supply electrical energy to the British Overseas Territory. The new plant will replace several existing but dated diesel engine plants, which also run on MDT aggregates. The French engineering, procurement and construction contrac-tor Bouygues Energies & Services SAS will build the plant.

man diesel & turBo has won the con-tract to provide Selective Catalytic Reduc-tion (SCR) systems for each of six MAN 16V32/44CR engines ordered last year for the global oil and gas services provider Petrofac. The engines will be installed in the Petrofac JSD 6000 deepwater derrick lay vessel scheduled for delivery in 2016. SRC reduces the emission of polluting nitrogen oxide (NOx) by up to 80% by injecting urea into exhaust gases, passing it through a catalytic converter at temper-

atures of up to 400°C and thus achieving a chemical reaction. MAN engines already comply with Tier II of the International Maritime Organization’s emission rules. MDT and Petrofac have also entered a 12-year service contract for the manage-ment, maintenance and monitoring of the engines. “We are delighted to work with an industry leader on the design and build of the vessel’s key components,” says Yves Inbona, Managing Director of Petrofac’s Offshore Capital Projects business.

Power for gibraltar

green pass for PetrofacPh

otos

: MA

N(2

), ge

ttyi

mag

es

Adding SCR systems raises compliance with new Tier III emission rules.

35

1/2015

Facts & Figuresthe velocities reached by the turning parts of turbomachinery are staggering. Taking a closer look at MAN Diesel & Turbo’s steam turbines reveals that the fastest tip speed of an end stage runs up to …

… is the amount of air that the largest axial flow compressor from MAN Diesel & Turbo can suck in. At this capacity rate, the entire air volume of the Cologne Cathedral could be exhausted in merely 16 minutes.

is the output of the world’s largest engine, a low-speed MAN B&W 12S90ME-C Mark 9.2 type. It powers the “CSCL Globe,” which became the hitherto largest container ship in the world when first launched in November 2014. This engine performance corresponds to the output of 78 Bugatti Veyron Super Sports, the fastest street-legal production car.

That pace amounts to Mach 1.5, the typical cruising speed of a Eurofighter jet.

1760 kph 69,720 kW

Illu

stra

tion

s: M

AN

, shu

tter

stoc

k, fo

tolia

years! that’s how far back MAN’s roots reach. On October 18, 1758, the first blast furnace was fired up at St.-Antony-Hütte, the oldest iron works in Germany’s industrial Ruhr region. Ever since then, MAN has been committed to the company philosophy “Engineering the Future,” with a focus on the key technologies transport and energy.

Proud heritage

1.5 million cubic meters per hour …

man diesel & turbo donated spare parts and services valued at €116,000 in order to keep the engines on board the hospital ship Africa Mercy in top condition. The ship is now bound for Madagascar, where it will remain until June 2015, providing medical assistance.

116,000 euro donation for hospital ship

257

20% more energy is now available to Burkina Faso since the expansion of the power plant near Bobo-Dioulasso. Each of the two expansions, “Bobo II” and “Bobo III,” has two MAN 12V48/60 engines, increasing the capacity of the plant by 24 MWh.

=

34

man magazine

WHen contracted to build the waste-to-energy plant “Wilton 11” in England, the Paris-based CNIM industrial solutions group brought MAN Diesel & Turbo on board. The state-of-the-art plant will supply northeast England with resource-friendly energy, reduc-ing carbon emissions while at the same time redirecting 90% of the area’s garbage away from landfills. Wilton 11 will generate energy by incinerating 60 metric tons of waste per hour. MAN Diesel & Turbo will supply not only the steam turbine, but also the genera-tor, condenser, lube-oil system and the com-plete instrumentation and control technolo-gy. CNIM’s environmental operations division has often worked with MAN Diesel & Turbo before. “MAN has brought a comprehensive, technical competence to our project and is a partner that we know we can rely on,” com-ments Olivier Serres, Steam Turbine & Con-denser Purchaser at CNIM.

British waste conversion

Rising high above the Strait of Gibraltar, the famous rock looks

down on a bustling economy.

Steam generated by the heat expands in the steam turbine and drives the electrical generator.

2014 ended on a HigH note for MAN Diesel & Turbo. An important contract for the supply and installation of six gas and dual fuel engines to operate a new base load power plant in Gibraltar was signed shortly before Christmas. “This is a significant proj-ect for us,” says Howard Barnes, Global Head of Sales for the Power Plant Business. “The Government of Gibraltar was looking for reliable generation capacities with a low car-bon footprint. The chosen combination of gas and dual fuel grants both: The plant benefits from low CO2 emissions when run on natural gas and yet offers full fuel flex-ibility via the three dual fuel engines.” By mid-2017, three 14V51/60G and three 14V51/60DF engines will supply electrical energy to the British Overseas Territory. The new plant will replace several existing but dated diesel engine plants, which also run on MDT aggregates. The French engineering, procurement and construction contrac-tor Bouygues Energies & Services SAS will build the plant.

man diesel & turBo has won the con-tract to provide Selective Catalytic Reduc-tion (SCR) systems for each of six MAN 16V32/44CR engines ordered last year for the global oil and gas services provider Petrofac. The engines will be installed in the Petrofac JSD 6000 deepwater derrick lay vessel scheduled for delivery in 2016. SRC reduces the emission of polluting nitrogen oxide (NOx) by up to 80% by injecting urea into exhaust gases, passing it through a catalytic converter at temper-

atures of up to 400°C and thus achieving a chemical reaction. MAN engines already comply with Tier II of the International Maritime Organization’s emission rules. MDT and Petrofac have also entered a 12-year service contract for the manage-ment, maintenance and monitoring of the engines. “We are delighted to work with an industry leader on the design and build of the vessel’s key components,” says Yves Inbona, Managing Director of Petrofac’s Offshore Capital Projects business.

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green pass for Petrofac

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Adding SCR systems raises compliance with new Tier III emission rules.

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Facts & Figuresthe velocities reached by the turning parts of turbomachinery are staggering. Taking a closer look at MAN Diesel & Turbo’s steam turbines reveals that the fastest tip speed of an end stage runs up to …

… is the amount of air that the largest axial flow compressor from MAN Diesel & Turbo can suck in. At this capacity rate, the entire air volume of the Cologne Cathedral could be exhausted in merely 16 minutes.

is the output of the world’s largest engine, a low-speed MAN B&W 12S90ME-C Mark 9.2 type. It powers the “CSCL Globe,” which became the hitherto largest container ship in the world when first launched in November 2014. This engine performance corresponds to the output of 78 Bugatti Veyron Super Sports, the fastest street-legal production car.

That pace amounts to Mach 1.5, the typical cruising speed of a Eurofighter jet.

1760 kph 69,720 kW

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years! that’s how far back MAN’s roots reach. On October 18, 1758, the first blast furnace was fired up at St.-Antony-Hütte, the oldest iron works in Germany’s industrial Ruhr region. Ever since then, MAN has been committed to the company philosophy “Engineering the Future,” with a focus on the key technologies transport and energy.

Proud heritage

1.5 million cubic meters per hour …

man diesel & turbo donated spare parts and services valued at €116,000 in order to keep the engines on board the hospital ship Africa Mercy in top condition. The ship is now bound for Madagascar, where it will remain until June 2015, providing medical assistance.

116,000 euro donation for hospital ship

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20% more energy is now available to Burkina Faso since the expansion of the power plant near Bobo-Dioulasso. Each of the two expansions, “Bobo II” and “Bobo III,” has two MAN 12V48/60 engines, increasing the capacity of the plant by 24 MWh.

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Here it is – the brand new MAN 175D. A high-performance marine engine, robust and reliable by nature. Ay folks, just like ol’ Tugboat Joe!

Welcome to the future of high speed marine mobility. Find out more: www.175D.man.eu