LNGLNG – combining clean ships and cost efficiency · International regulations – current trends, future developments

LNG challenges – research in action · Studies and projects – GL at the forefront of R&D

LNG success stories – the dawn of a new age · Shaping the future

InFocus

Powering the future of shipping

JULY 2012

LNG – driving change in shipping

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Contents

Contents

LNG – combining clean ships and cost efficiency 04

International regulations – current trends, future developments 06

IGC Code 06

IGF Code 06

ECAs and SECAs 07

GL Guidelines 07

LNG challenges – research in action 08

The LNG supply chain 08

LNG in Type-C Tanks 09

The placement of LNG tanks 11

Studies and projects – GL at the forefront of R&D 12

BunGas 12

GasPax 12

The GL / MAN study 13

LNG success stories – the dawn of a new age 16

The "Bit Viking" 16

Official sea trial 16

STREAM – the new design for LNG-powered container ships 17

Shaping the future 19

04

LNG – combining clean ships and cost efficiency

We at GL are supporting the industry at all levels to

make ships more efficient and environmentally friendly. A

key topic in this quest is Liquefied Natural Gas (LNG) as an

alternative to conventional fuels. Compared to oil, natural gas

has an important advantage: it combines efficiency with a

lower environmental impact. LNG offers the prospect of

up to 25 per cent reduction in CO2, a significant reduction

of sulphur emissions and up to 90 per cent reduction in

nitrogen oxides (NOx).

There are four aspects, which, taken together, make LNG as ship fuel one of the most promising new technologies for shipping:

1. Using LNG as ship fuel can reduce to approximately zero

sulphur oxide (SOx) emissions compared with using a high

sulphur content fuel. This reduction will become mandatory

within the so-called Emission Control Areas from 2015 on.

A similar reduction will be enforced for worldwide shipping

from 2020 on, pending a review at IMO which may move

the introduction to 2025.

2. Reduction of nitrogen oxide (NOx) emissions down to IMO

Tier III limits, applicable in ECAs from 2016, is possible for

four-stroke engines which are typically used onboard ships

engaged in short sea and coastal shipping.

3. Due to the lower carbon content of LNG, a 20% to 25%

reduction of carbon dioxide (CO2) emissions is possible.

The actual reduction depends on engine type and possible

measures to reduce the partial slip of unused methane.

4. The current LNG price in Europe and the USA suggests that

LNG could be offered at a price comparable to heavy fuel

oil (HFO). This means that LNG will certainly look commercially

attractive as compared to the low-sulphur marine gas oil (MGO)

which will be required to be used within the ECAs if no other

technical measures are implemented to reduce SOx emissions.

GL has been involved in many national and international

research projects investigating different aspects of LNG as a

propulsion fuel. Our experts are participating in the develop-

ment of the IMO code for gas as a ship fuel. We act as an

advisor to the German Ministry of Transport and we have

put our in-depth knowledge to the test: a spectacular example

of this is the retrofitting of the Bit Viking (see page 16), the

world's first vessel converted to run on LNG while in service.

After successful sea trials under GL supervision, the vessel has

resumed commercial trading. This shows that the fleet in service

can also become greener by using customised technology.

The following pages are designed to give you an overview of

regulatory developments, trends in research and development,

practical implementation, and the environmental and economic

advantages of using liquefied natural gas as a ship fuel.

Stringent international regulations on emissions are forcing the shipping industry to rethink its fuelling options. The IMO’s Marine Environmental Protection Committee has introduced emission controls, which will increasingly affect international shipping over the next decade. The introduction of Emission Control Areas (ECAs) in European, U.S. and Canadian territorial waters means that shipowners must begin to consider alternatives to traditional heavy fuel oil.

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International regulations – current trends, future developments

IGC CodeThe purpose of the IGC Code (International Code for the

Construction and Equipment of Ships Carrying Liquefied

Gases in Bulk) is to provide an international standard for the

safe transport by sea in bulk of liquefied gases and certain

other substances. It prescribes the design and construction

standards of ships involved in such transport and the equipment

they should carry so as to minimise the risk to the ship, its

crew and the environment.

According to the IGC Code only LNG carriers are allowed to

utilise LNG boil-off gas as fuel in the machinery space. Since

2000 a few LNG-fuelled vessels, which are not covered by the

IGC Code, have come into service with the permission of their

national administration. This means that these vessels are only

allowed to sail in national waters or need permission from

each port state where the ship wants to berth and operate.

IGF CodeDue to the lack of international safety requirements for gas

as fuel for non-LNG tankers, the development of an Inter-

national Code for Gas as Ship Fuel (IGF Code) was proposed

to the Marine Safety Committee (MSC) of IMO in 2004. The

goal of the guideline is to provide an international standard

for ships with natural gas-fuelled engine installations. The

Interim Guideline MSC.285(86) was adopted in 2009 and

specifies criteria for the arrangement and installation of LNG-

fuelled machinery to achieve a level of integrity in terms of

safety, reliability and dependability equivalent to conventional

oil-fuelled machinery.

At present, the IMO subcommittee Bulk and Liquid Gases (BLG) is working on the IGF Code which will supersede the interim guidelines and is planned to come into force in the medium term. The IGF Code will:

• provide safety measures for ships using gases as ship

fuel including liquefied gas tankers

• address also other fuels with low flashpoints such as

methanol, ethanol, butane, hydrogen and propane

• cover the energy conversion systems of relevance

(low and high pressure ICE, gas turbines, boilers, fuel cells)

• address issues not already covered by SOLAS and

therefore serve as an addition to SOLAS

• supersede the interim guidelines and Chapter 16 of

the IGC Code

• address requirements for bunker stations

However, there are many open technical issues which need

to be resolved by BLG until an agreed draft IGF Code can be

delivered to the Maritime Safety Committee (MSC) of IMO in

As new environmental regulations force owners to either change the propulsion fuel or invest in exhaust-gas cleaning systems, there will be a growing number of LNG-fuelled vessels over the next years and as of 2015, during the second half of this decade, LNG-powered ships will become even more prevalent. The following Codes and Rules form the regulatory framework within which shipowners must operate.

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the next few years. Open items include the necessary distance

of an LNG tank to the outer hull of the ship, which is relevant

in cases of collision, and the question of whether the LNG

tank may be placed below the accommodation, which is

particularly relevant for passenger ships. Parallel to this, work

has started on ISO TC 67 on standards for LNG bunkering.

Subject to further requirements, ships built according to the

Interim Guideline MSC.285(86) will be allowed to operate

after the IGF Code comes into effect. There is, therefore, no

reason to hesitate building a gas-fuelled ship out of concern

that the interim guidelines may be completely overruled. The

only factor to consider is that the interim guidelines require

owners to obtain permission from flag states and port states

to operate their vessels. This can cause complications for

operators calling at different ports or port states. The IGF

Code, which is expected to come into force in the medium

term, will eliminate this issue and play a major role in the

large-scale use of LNG as ship fuel.

ECAs and SECAsA step-by-step introduction of restrictions will limit emissions

of nitrogen and sulphur oxides (NOx and SOx), unburnt hydro-

carbons, particulate matter, as well as greenhouse gases.

Regional Sulphur Emission Control Areas (SECAs) such as the

North Sea and the Baltic, or Emission Control Areas (ECAs)

already have stricter requirements regarding emissions. From

2015 the maximum sulphur content of fuel oil will be limited

to 0.1% for all vessels operating in SECAs / ECAs, and from

2016 NOx emissions for newbuildings operating in ECAs will

also be limited.

Oceangoing vessels typically spend 5-6% of their operating

time in ECAs. But this figure could grow considerably on a

number of shipping routes once the new requirements for

ship fuel quality, which are equivalent to those in Northern

Europe, take effect along Canadian and U.S. coastlines in

August 2012. In addition, a number of other sea areas are

expected to introduce similar restrictions on emissions before

2020, the effective date of global sulphur limits on heavy

fuel oil.

GL GuidelinesGL has been extensively involved in the development of technology for the next generation of gas-fuelled ships and developed its own set of Guidelines in April 2010: GL Guideline for the use of Gas as Fuel for Ships (VI-3-1).

This guideline incorporates:

• the text of MSC.285(86) in full

• guidance and recommendations on natural gas-fuelled

engines

• criteria for the design arrangements and installation of

propulsion and auxiliary machinery powered by natural gas

The GL Guideline has been in force since May 1, 2010.

Further GL rules and Guidelines for LNG carriers:

• GL Rules I-1-6 – Liquefied Gas Tankers

• GL Rules IV-6-5 Design Requirements for LNG Valves,

Safety Valves, QC/DC Couplings

• GL Rules VI-7-8 Type Approvals

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LNG challenges – research in action

The LNG supply chainAt the end of 2011 there was, as yet, no supply chain for LNG

as a ship fuel with the exception of Norwegian coastal waters.

However, the infrastructure that Norway has in place today will

become more and more commonly available especially as of

2015 when more LNG vessels, which depend on the availability

of adequate refuelling stations in ports, will enter service.

Current developments show that access to LNG bunkering is developing. A number of LNG ports offer or plan to offer LNG facilities, particularly in Northern Europe:

• In 2011 a new LNG terminal was commissioned by Linde at

Nynäshamn, south of Stockholm. This will offer LNG ship

refuelling very soon.

• Recently Gasnor announced they will make LNG available

at the German port of Brunsbüttel. Initially, the company

plans to supply the LNG by truck and possibly build a small

terminal in the future, provided that demand develops

accordingly.

• GL is currently working with the Hamburg Port Authority

to explore options for offering LNG ship fuel in Hamburg.

The supply chain for LNG as a ship fuel, bunkering, and the placement of LNG tanks all remain issues that need to be thoroughly researched and documented. As yet, LNG suppliers are not convinced that this technology will take off, and LNG users are not convinced that LNG will be made available at an attractive price and at convenient locations. However, regulatory changes are driving the need to find solutions quickly.

LNG challenges – research in action

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• The Netherlands is implementing four different projects

along the Rhine to provide LNG refuelling stations for

inland vessels.

Further, a re-export from existing large-scale LNG terminals is

an option to feed the supply chain for LNG fuel. Small-scale

LNG carriers (~10,000 m3), built for regional supply, will be the

link between these liquefaction plants or re-export terminals

and dedicated bunkering locations. A number of small LNG

carriers like NORGAS Innovation owned by I.M. Skaugen SE,

Coral Methane and Pioneer Knudsen are already in service,

and further newbuildings are under construction. But these

small-scale LNG carriers are designed for transfer operations

at dedicated locations and not for bunkering gas-fuelled

ships directly.

The last step of supplying LNG to the end-user will require

LNG bunker vessels, which are still to be built. This involves

the direct bunkering of gas-fuelled ships, using gas carriers

or special barges for refuelling, provided they are properly

equipped and are able to carry enough gas for large ships. At

the moment, bunkering takes place at specially equipped gas

terminals during dedicated refuelling timeslots for the limited

number of vessels operating on LNG as fuel, and the vessels

are taken out of service for bunkering. However, several bunker

vessel designs for LNG feeder carriers have been published

and it is assumed that these could be built today. The next

generation of LNG bunker requirements for a larger container

vessel operating between Asia and Europe could be up to

10,000 m3 per round trip, which would necessitate another

bunkering strategy.

Eventually, there will be a LNG bunkering procedure that follows

the same pattern as that of heavy fuel oil – customers will

expect a similarly convenient bunkering, including an acceptable

time frame and guarantees for the safety of crew and

passengers.

”Today the process of preparing for LNG bunkering involves

cooling down and inerting the systems and potentially the

tank itself before beginning the actual refuelling process.

But there are efforts underway to reduce the required

preparation time. For example, it is possible to begin cool-

ing down the hoses before making the actual connection.

Similarly, the ship's crew could start cooling down the

board-side system before connecting. There are a number of

options still to be explored,” says Dr. Pierre C. Sames, Sen-

ior Vice President, Strategic Research and Development at

GL. ”As commercial interest builds we will see the rapid de-

velopment of new technology to facilitate LNG bunkering

that is not established today, and it is one of the reasons

why short-sea shipping is at the forefront of LNG adoption.

You might say, it serves as an experimental laboratory for

deep-sea vessels.”

It is the upcoming challenge to develop a LNG bunkering

system that covers all organisational, safety and technical

aspects and requirements.

LNG in Type-C TanksAs LNG moves into focus, the existing LNG distribution and

transport infrastructure needs to be upgraded and adapted.

In particular, there is a growing need for short-distance

waterway transport of smaller quantities of LNG, and therefore

a growing demand for smaller-sized LNG carriers. A GL study

investigates whether proven LPG tank designs could be used

for new small-scale carrier ships. Understandably, shipowners

have an interest in using proven designs for independent

cargo tanks on board LPG carriers for the new small-scale

LNG carriers they wish to build.

Distribution of temperature

LNG is transported at –162 °C, Ethylene at –104 °C. As a

consequence, the steel structures supporting LNG tanks are

exposed to much lower temperatures than those used for LPG

tanks. Furthermore, the increased thermal contraction of the

tanks subjects the tank support structures to higher stresses.

Nevertheless, there may be ways to reuse proven LPG designs

for LNG under certain circumstances. A detailed analysis �

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LNG challenges – research in action

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� should be performed to determine the temperature dis-

tribution in the tank supports and to verify fulfilment of IGC

Code requirements with respect to the selected steel grades

and plate thicknesses. In a recent study, GL carried out such

analyses for type-C bilobe tanks. Temperature distribution

in the tank supports was determined for the tank filled with

LNG versus the same tank filled with LPG.

A 3-D model of the cargo hold, the tank itself including the

insulation, the wooden bearing and the tank support structures

was created, and the appropriate boundary conditions were

applied (i.e. temperature of the tank contents, ambient air and

water temperatures). In addition, thermal conduction and

convection had to be accounted for. The prevailing tempera-

tures inside the cargo hold as well as heat transfer coefficients

had to be chosen carefully, since both parameters will influence

the analysis results significantly. GL can draw on solid data for

these important input parameters, obtained in long-term

temperature measurements on tank supports and in cargo

hold spaces of LPG and LNG vessels.

In the GL study, the temperature distribution in the fixed

support structure of the LNG-filled tank showed a minimum

temperature at the upper support flange of roughly 10 °C

below that determined for LPG. The lower temperatures of

LNG affect the tank and its supports. To evaluate the stresses,

the temperature field combined with the design loads as

stipulated by the IGC Code were applied to the 3-D finite

element model. When filled with LNG, the tank was shown

to contract much more than with LPG. This means that the

contact surfaces between the tank and its supports are smaller,

and the resulting stresses greater. The more pronounced contrac-

tion in the longitudinal direction aggravates the eccentricity

of the wooden bearing on the sliding support, which further

increases the stresses. In total, the investigation revealed a

35% higher maximum stress for LNG than for LPG.

The GL study demonstrates the need for detailed analyses of

tanks and their support structures designed for new small-

scale LNG carriers, even when adopting an existing LPG carrier

design for LNG. Such detailed analyses should be performed

by recognised experts to ensure appropriate approval in

compliance with the requirements of the IGC Code.

The placement of LNG tanksA further LNG challenge that GL has been analysing is the

placement of LNG tanks. The Interim Guideline stipulates col-

lision resistance for gas-fuelled vessels based on the minimum

required distance between the tank and the outer ship shell.

According to MSC.285(86) the gas storage tanks should be

placed at a minimum of the lesser of B/5 and 11.5 m from the

ship side and not less than 760 mm from the shell plating,

with B representing ship breadth.

GL has begun analysing different LNG carriers and commercial

vessels that use gas as ship fuel. The aim of the first computa-

tions is to estimate which collision resistance can be encoun-

tered in a standard container ship of similar size to a typical

LNG tanker. The procedure for the calculation of collision

energy is described in GL Rules I-1-33. This procedure considers

different drafts of the striking vessel as well as different bow

shapes (bow without bulb and bulbous bow). As GL is actively

involved in the technical process of IGF Code development,

the results of the collision analysis will be used to define feasible

and safe requirements. Legislative needs for gas storage on

board commercial vessels will be identified and presented at

the legislative authority after completing computation and

evaluation of further calculations.

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Studies and projects – GL at the forefront of R&D

BunGasThe BunGas project was initiated by GL in conjunction with

project partners: Meyer Shipyard, MAN Diesel, TGE Marine

Gas Engineering, DNV, AIDA Cruises, Linde and B. Schulte.

The general objective of the research project "BunGas" is to

develop a bunkering system for the refuelling of commercial

vessels with natural gas-fuelled engine installations. This

includes the development of technical and organisational

solutions with a focus on bunkering from ship to ship.

The development of technical solutions includes the evaluation

of bunker requirements of LNG-fuelled ships based on existing

and new regulations which are currently under development –

MSC.285(86), IGF Code 2014.

So far, standards for the bunkering and the interface between

land-based LNG supply and consumers at different locations

have not been developed. "BunGas" is aiming to develop

technical systems, which can compete with fuel oil bunkering

regarding time, location and procedure. The project will

furnish the baseline for safe and competitive gas refuelling

in European ports in such a way that it can be applied to all

types of gas-fuelled ships.

On the basis of these requirements, the basic design of a bunker

vessel with a suitable transfer system will be developed.

One major challenge of bunker system design is safe LNG

transfer within normal port limits and during normal harbour

operation. Up till now, liquefied gas transfer has been limited

to gas terminals for gas carriers or to special locations and

dedicated refuelling time slots for the limited number of

vessels operating with LNG as fuel.

The BunGas project is designed to provide the overall technical

basis for the design and operation of safe bunker stations

on board gas-fuelled commercial vessels and of the related

bunker supply vessels. The project will use the results gained

to build a prototype fuelling station as part of a follow-on

project to verify the feasibility of the technical solution and

perform a reality check.

GasPaxThe Gas Pax project was initiated by Meyer Shipyard, Lürssen

Shipyard, TGE Marine Gas Engineering and GL in 2010, and is

funded by the German government.

The three-year project assesses the potential of gas as ship

fuel for three ship types, a mega yacht, a cruise ship and a

RoRo pax vessel, as it was found that MSC.285(86) does

not include the economic use of LNG in passenger ships.

To address the challenges posed by LNG, GL has initiated and worked in cooperation on a number of important research and development projects involving gas as ship fuel, and is participating in the development of the IMO Rules on behalf of the German government.

As partners in the joint projects GASPAX, BunGas and Helios, we have developed safe and innovative solutions for gas-fuelled passenger vessels, refuelling requirements and dual-fuel solutions for two-stroke engines. In 2009 we prepared a conceptual study for a 900 TEU container vessel together with MAN and TGE Marine Engineering.

Studies and projects – GL at the forefront of R&D

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In all three of the ships, LNG is used as fuel for dual-fuel

engines. These engines can be used with LNG or Diesel, to

afford greater flexibility and redundancy.

The gas systems for the ships were developed in conjunction

with TGE Marine Gas Engineering. GL collaborated to develop

Hazard Identification Studies (HAZID), which are used to test

the concepts developed for viability and safety. Project teams

are currently identifying failure and risk factors via Failure

Mode and Effects Analyses (FMEA), and evaluating the hazards

associated with larger vessels using LNG as a propulsion fuel.

Results are assessed in view of their compliancy with

current guidelines.

The GL / MAN studyIn 2009, GL published the first study on an LNG-fuelled feeder

container vessel and demonstrated technical feasibility as well

as commercial attractiveness when operating inside an ECA.

In 2011, GL and MAN carried out a more systematic joint study

to assess the costs and benefits of LNG as ship fuel for con-

tainer vessels. As LNG has gained more attention not only in

Europe, but also in Asia and the USA, shipowners interested in

LNG as ship fuel are currently facing a number of questions

regarding the costs and the possible benefits of using such

technology. And they wish to learn whether exhaust gas

treatment systems could be the preferred technical solution.

At the same time, increasing ship efficiency with advanced

waste heat recovery systems becomes feasible. This suite of

technologies is the focus of the GL and MAN joint study on

container vessel power generation systems.

Approach

The study assumes costs for key technologies when applied

to five differently sized container vessels and predicts their

benefits in comparison to a reference vessel. The reference

vessel uses marine fuel oil as required by existing and up-

coming regulations depending on the time and location of

its operation i.e. the reference vessel uses MGO when inside

an ECA by 2015 or within EU ports. Outside an ECA, HFO

is used and a low-sulphur heavy fuel oil (LSHFO) with max.

0.5% sulphur content by 2020. Costs for implementing the

technologies are compared with expected benefits which are

driven by fuel cost differences. The model assumes that the

fuel with the lowest cost is always used if a choice is possible.

Space required by the technologies is taken into account by

reducing the benefit.

Four technology variants were investigated in the study:

1. Exhaust gas cleaning by "scrubber"

2. Scrubber plus Waste Heat Recovery (WHR)

3. LNG system (bunker station, tank, gas preparation, gas line, dual-fuel engines)

4. LNG system plus WHR

For each technology variant, costs and space requirements

were estimated and specific fuel oil consumption was based

on current knowledge. Estimates were independently made

for each selected container vessel size. The same measures to

reduce NOx emissions to IMO Tier III-levels were assumed for

the reference vessel and each technology variant and, there-

fore, these have no effect on the cost differences between

the reference vessel and the variants.

Ship size variants and route profiles

Five representative vessel sizes were selected for the study.

Assumed design speeds account for the current trend towards

lower speeds. Round trips were selected for three trades:

intra-European, Europe-Latin America and Europe-Asia. The

ECA exposure was used as primary input parameter.

Conclusions of the study

Using LNG as ship fuel promises less emissions and, given the

right circumstances, less fuel costs. The attractiveness of LNG

as ship fuel compared to scrubber systems is dominated by

three parameters:

1. Share of operation inside ECA

2. Price difference between LNG and HFO

3. Investment costs for LNG tank system

With 65% ECA exposure, a LNG-system payback time under

two years is predicted for the smaller vessel sizes (using the

standard fuel price scenario).

For the 2,500 TEU vessel, a comparison of payback times

for the scrubber and for the LNG system, and varying LNG

prices, shows that the LNG system is attractive as long as

LNG (delivered to the ship) is as expensive as or cheaper than

HFO when the fuels are compared on their energy content.

For larger vessels typically operating at smaller ECA shares e.g.

the 14,000 TEU vessel, the LNG system has the shortest

payback time (when the standard fuel price scenario is used),

and the use of a WHR system further reduces the payback time.

The price of LNG delivered to the ship is difficult to predict.

Base LNG prices vary from the USA to Japan by a factor of

four. European base LNG prices appear attractive at around

10 $/mmBTU even with small-scale distribution costs added.

An LNG price of up to 15 $/mmBTU could give LNG systems a

competitive advantage against scrubbers in terms of payback

for the smaller vessels considered in this study.

Small-scale LNG distribution is just starting to become available

in Europe (outside Norway) and it remains to be seen which

LNG-fuel price levels will be established.

For a more detailed report on the GL / MAN study please see:

"Costs and benefits of LNG as ship fuel for container

vessels. Key results from a GL and MAN joint study" at

www.gl-group.com/lng

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Studies and projects – GL at the forefront of R&D

Source: NSD – Neptun Ship Design

15

The drivers – LNG tank cost and LNG price

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LNG success stories – the dawn of a new age

The "Bit Viking"The "Bit Viking" is the result of GL’s participation in the

conversion of an existing oil-burning engine into a dual-fuel

one that can burn either fuel oil or gas. The project has put

the GL Group centre stage in the development of LNG-

fuelled vessels.

Ronnie-Torsten Westerman, Business Development Manager at Germanischer Lloyd, recalls the beginnings:

”The project started with a kick-off meeting of representa-

tives from Wärtsilä, the owner of Tarbit Shipping, and GL

in April 2010.”

Because of its broad LNG expertise, GL was chosen for the

classification part of the conversion. Manufacturing of various

new components began in early 2011. The components were

then transported to the shipyard in Landskrona, Sweden.

“The “Bit Viking“ arrived at the yard on time and the con-

version commenced in August,” reports Westerman. The

new equipment necessary for LNG operation was installed in

the vessel. Germanischer Lloyd staff played a critical role in

this process, monitoring the manufacture and installation of

the components, such as piping, valves, safety equipment and

LNG tanks, and ensuring safe construction, use of suitable

materials and application of appropriate welding methods.

Official sea trialThe two main engines were converted from Wärtsilä type 46 D to type 50 DF. Westerman says:

”Virtually everything was replaced except the crankshafts

and frames.” The "Bit Viking" was then taken to Risavika /

Stavanger for completion of the pipe installation, and

testing and calibration of the newly installed equipment.

The vessel was then ready for its first bunkering of LNG. ”The

first time we prepared for bunkering we had to cool down the

LNG storage tanks on the foredeck using liquid nitrogen at

–192 °C,” explains Westerman. The "Bit Viking" then success-

fully bunkered LNG, which has a temperature of –162 °C, for

a main engine test run at the pier. At the end of October, the

"Bit Viking" was finally ready for its official sea trial. ”She

performed as expected and no major discrepancies were

noted. GL had two surveyors on board during the sea trial.”

As GL experts continue their scientific research into LNG as a ship fuel, the first successful GL-supported conversions and designs are opening a new chapter in shipping.

DSME and GL have proved the feasibility of running large container vessels on LNG in a joint project. GL has recently finished Approval in Principle of a 14,000 TEU LNG-fuelled container vessel for DSME.

”New technology is needed as cleaner transport is increasingly demanded and maritime environmental regulations are be-coming ever stricter,” says Mr Frederick Ebers, Vice President and Area Manager for North East Asia, GL. ”DSME and GL have acknowledged this challenge and agreed to jointly start exploring technology options and safety concepts for large LNG-fuelled container vessels.”

Other successful GL projects include Approval in Principle for a 4200 TEU container ship designed by TECHNOLOG and the conversion of the "Bit Viking", the world's first vessel converted to run on LNG while in service.

LNG success stories – the dawn of a new age

17

”The technical challenge in steering the conversion process

was immense,” says Westerman. Key concerns in this world

premiere were the proper interpretation of class rules for safe

construction, ensuring that the equipment manufacturers

clearly understood the class rules, and anticipating how the

flag administration would understand and accept the

required risk analysis. ”Particular focus was on bunkering

and how it should be performed, since this is a somewhat

critical operation that requires special knowledge and

equipment.”

The conversion of the "Bit Viking" provided a good opportunity to put the GL rules for gas as ship fuel to the test. Following the success-ful conversion, Westerman is optimistic:

”The existing rules are sufficient for a conversion such as that of the ”Bit Viking”. However, some modifications will be made in the future as regulations such as Marpol are updated to reflect the option of gas as a ship fuel.”

Environmental footprint

”Within the short period of operation since her conversion,

the ”Bit Viking” has already achieved considerable benefits

for the environment,” says Westermann. ”Greenhouse gases

have been reduced by 20-25%. NOx gases by 90%, sulphur

output has been cut entirely, and particle emissions have

been brought down by 99%. An official emissions measure-

ment has been conducted, but the final results have not

yet been publicised. However, these estimates should be

pretty close to the actual outcome.”

The owner, Sweden’s Tarbit Shipping, is very pleased with

the environmental footprint of their newly converted vessel.

The "Bit Viking" resumed commercial trading on 25 October,

2011. Ever since, she has been performing as expected and

the crew has successfully refuelled her from the shoreside

facility at Risavika south of Stavanger. "Bit Viking" is now

trading the extreme length of the Norwegian coast between

Oslo and Kirkenes on behalf of oil major Statoil.

STREAM – the new design for LNG-powered container shipsA new GL-approved design from IPP Ingenieur Partner Pool is

now ready for the market. ”With this design we are showing

that it is no longer just a dream to build environment-friendly

vessels for economic ship operation that fulfil government-

defined green commitments,” says Hans-Jürgen Voigt,

Managing Director of IPP and TECHNOLOG.

The concept, which has been assessed by GL and given an

approval in principle, is for a range of liner or feeder vessels

from 3,000 TEU to 4,200 TEU for worldwide service. From

this range, TECHNOLOG, as responsible marketing partner

of IPP, has presented an LNG-powered, fully cellular open-op

container vessel – the STREAM 4200 LNG. Its 32.25-metre

beam allows passage through the existing Panama Canal

locks. A draft of 10.50m to 12.00m means the vessel can

operate worldwide, including through the Kiel Canal (future

dimensions) between the Baltic and North Sea. The layout can

be configured to suit multiple shipping routes, with optimal

flexibility as it is based on existing technology, says Mr Voigt.

Cargo loading

”We have optimised the design of the vessel so it will be

able to handle the full range of container sizes in use today,”

says Hans-Jürgen Voigt. Apart from this adaptability in sizing,

the container stacks on the deck of the vessel are laid out to

achieve higher stack weights and enable individual storage

patterns and loading operations for each individual cell.

Bunkering system

The LNG fuel systems for the STREAM were developed jointly

with TGE Marine Gas Engineering and include a fixed bunker

tank inside the vessel and a novel portable deck-mounted LNG

tank system which can be used to provide extra capacity. �

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� For fuel supply, the LNG containers will be connected to a

newly developed docking station. One of the most important

factors of new LNG-fuelled vessels is the safety and reliability

of LNG bunkering systems. There must be no spillage, and

the STREAM illustrates that these systems are now being

implemented.

The entire vessel design concept is focused around saving

energy. A single screw is directly driven by a dual-fuel,

two-stroke, 22.9 MW engine developed specifically for LNG

applications by MAN. The same gas fuel supply system is used

for the auxiliary power generators and boilers. Exhaust gas

boilers and waste heat recovery equipment are installed.

Beyond merely saving fuel, the efficiency of the propulsion

system means that a STREAM ship can operate in a wide variety

of ways. When loaded to medium draft, the main engine

can provide all of the vessel’s required electric and propulsive

power. When needed, the auxiliary engines can generate

additional power for added speed or to boost power in poor

weather conditions. As a whole, the design and operational

features result in a significant reduction in fuel consumption

compared to any designs running on standard fuel.

With some extra initial investment, the vessel can take

advantage of a waste heat recovery system (WHRS) for even

greater fuel efficiency. An exhaust gas boiler system can be

installed that feeds a MAN Diesel & Turbo turbogenerator

set for electric power generation. An optional "minimum-

fuel-controlled" power management system from Siemens

can further reduce fuel consumption, thereby cutting overall

energy costs. Estimates suggest that the slightly higher initial

costs of installing such a system will pay off in approximately

four to six years depending on ECA zone application and fuel

price development.

Future-proofed

As currently configured, the STREAM already meets all of the

coming regulations to control air emissions from shipping. In

addition, STREAM ships boast an EEDI, based on preliminary

calculations, that is significantly beneath the required baseline

for 2025. Hans-Jürgen Voigt is convinced: ”Looking ahead to

2020, our projections suggest that when we compare the

operation of the STREAM against a conventional vessel in

an Emissions Control Area (ECA), we arrive at a conservative

estimate of fuel cost savings in the region of 30 per cent.”

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Shaping the future

However, moving ahead on LNG technology requires not just the support of the shipping industry but also the support of political decision-makers:

• to establish a roadmap at European level initiated by the

European Commission with an indication of the necessary

steps to be taken within a clear time frame

• the roadmap should include amongst other things:

- development of regulatory measures especially with

regard to safety measures

- identifying in detail financial means to support the

sector such as implementation projects, studies

and pilot actions introducing new technologies,

innovative infrastructure and facilities supporting

the deployment of LNG

- creating a one-stop shop for industry, addressing

financial support

- identifying whether there is a need for further

R&D work and / or pilot projects

A number of funded research projects currently focus on LNG as ship fuel.

These are:

• HELIOS – High-pressure Electronically Controlled

Gas Injection for Marine Two-Stroke Diesel Engines,

EU-Commission funded joint industry project

• CNSS – Clean North Sea Shipping, working a

LNG bunker showcase, EU-Commission funded

joint project

• TEN-T LNG Infrastructure – coordinated by the

Danish Maritime Authority

• BUNGAS – LNG bunkering with a focus on

technical aspects, German and Norwegian

funded joint industry project

• GASPAX – ship design for using LNG as ship fuel,

German funded joint industry project

GL is firmly committed to research and development in the field of LNG technology. We believe that LNG will be the fuel of choice for shipping in a world where environmentally sound solutions are becoming more and more important.

GL has taken a strong stance in support of LNG technology. ”We believe we can be a driving force in this area, and have

become involved in a number of activities, such as research, the development of rules and design concepts, and some initial

commercial applications,” says Dr Pierre C. Sames, Senior Vice President, Strategic Research and Development.

”It is very satisfying for us to contribute to this development, to truly inspire people to use the technology and to engage

with us to implement it.”

Hamburg

ShanghaiHouston

Region Europe / Middle East / Africa

Brooktorkai 18

20457 Hamburg

Germany

Phone: +49 40 36149-8786

Fax: +49 40 36149-4051

gl-ema@gl-group.com

Region Americas

1155 Dairy Ashford, Suite 315

Houston, TX 77079

United States of America

Phone: +1 713 543-4337

Fax: +1 713-543-4370

gl-americas@gl-group.com

Region Asia / Pacific

381, Huaihai M. Road

Room 3209-3220, Shanghai Central Plaza

200020 Shanghai, People's Republic of China

Phone: +86 21 6141 6700

Fax: +86 21 6391 5822

gl-asia@gl-group.com

This brochure was produced with consideration for the environment. It is printed on paper that is 100% recycled and has an FSC accreditation.

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The GL Group does not warrant or assume any kind of liability for the accuracy, completeness or quality of the information provided. Liability claims against any member of the GL Group in relation to any loss or damage arising out of or in connection with the use or non-use of information provided, including the use of incorrect or incomplete information, are excluded to the fullest extent permissible by law. All presentations of services and products may be subject to alteration and are non-binding. Each GL Group member expressly reserves the right without notice to change, supplement or delete parts of the pages or the entire presentation of services and products or to stop the publication temporarily or definitively.

Germanischer Lloyd SE

Gas Technology

Henning Pewe

Phone: +49 40 36149-653

Fax: +49 40 36149-917

ptp-gastechnology@gl-group.com

www.gl-group.com