Bio-LNG and synthetic LNG: future fuels for maritime decarbonisation25 November 2020 • 14:00-14:45 GMT

Marine FuelsWebinar Week

Part of

23-27 November 2020Panellist documents:Page 2: René Sejer Laursen, ABSPage 11: Sebastiaan Bleuanus, WärtsiläPage 17: Carmelo Cartalemi, WinGD

Setting the Course to

Low Carbon Shipping

ABS Global Sustainability

ABS offers solutions for addressing the key sustainability goals of IMO as they relate to vessels, fleets, and managing organizations.

Environmental Excellence

Social Responsibility

Governance – Operational Excellence

2 | Low Carbon Shipping Outlook

ABS Global Sustainability

3 | Low Carbon Shipping Outlook

The Three Fuel Pathways of the Future

Light Gas

Bio/Synthetic

Heavy Gas

4 | Low Carbon Shipping Outlook

5 | Low Carbon Shipping Outlook

Light Gas Pathway: LNG Bunkering Facilities

Source: Sea-LNG

Light Gas Pathway: 2-Stroke Engine Technology

• LNG is resistant to autoignition, requires ignition source in order to be burned in diesel engines: dual-fuel combustion concept

• 2-stroke engine technology:- Low-pressure gas injection (WinGD X-DF)

• Can comply with Tier III NOx emissions regulations

• Methane slip

- High-pressure gas injection (MAN ME-GI)

• Needs aftertreatment to comply with Tier III NOx

• Negligible methane slip

Low Pressure Gas Injection High Pressure Gas Injection

Low Pressure High Pressure

Gas mode cycle type Otto Diesel

Gas injection LP gas admission valves for pre-

mixed gas/air and in-cylinder

compression with diesel pilot

HP gas injection directly to

cylinder with diesel pilot

Gas supply pressure ~5 bar (4-stroke)

<16 bar (2-stroke)

300 bar

Liquid pilot % @MCR 0.5 – 1.0 3.0 – 5.0

BMEP (bar) ~ 16 - 17.5 20.0 – 21.0

Power density 15-30% lower than diesel Equivalent to diesel

Min load for DF mode (%) 0 ~10

IMO NOx Compliance Tier II (oil mode)

Tier III (gas mode)

Tier II (oil mode)

Tier II (gas mode)

Methane Number/Gas Quality

Sensitive

Yes No

Methane Slip Yes Negligible

Knock/Misfire Sensitive Yes No © WinGD

© MAN ES

6 | Low Carbon Shipping Outlook

• Dual-fuel compression-ignition

- Otto process in gas mode, typically with pre-mixed gas via port injection and ignition by fuel oil pilot

- Low pressure gas system

- Combustion control between misfire and knock

- Methane slip

• Single-fuel jet-ignition using a prechamber

- Spark ignition, typically in pre-chamber

- Low pressure gas system

- Combustion control between misfire and knock

- Can have improved transient response and reduced methane slip

- RR Bergen, Mitsubishi, MTU and Wartsila options

- Wartsila 31SG:

• 8-16 cylinders configuration

• 4.4-8.8 MW

• Rated speed 720-750 rev/min

• 27.1 bar BMEP

• MN ≥ 70

Light Gas Pathway: 4-Stroke Engine Technology

© Courtesy of Wärtsilä 31DF

7 | Low Carbon Shipping Outlook

Light Gas Pathway: Mid- to Long-Term

• Mid-term development- Synthetic/Renewable Natural Gas (SNG/RNG)

- Similar composition and properties as LNG

- Carbon reduction stems from the use of biomass for the production of SNG/RNG

- Challenges: production scale up and cost

• Long-term development: H2

- High LHV but low volumetric energy density

- Cryogenic of high-pressure storage required

- Compressed at 700 bar has 15% the energy density of HFO

- Ammonia may be used as a hydrogen carrier (discussed later)

- Currently produced primarily from coal and natural gas which makes it carbon intensive; future production will require use of renewable energy for electrolysis or biomass conversion

- Challenges: storage volume, safety and handling, production scale up and cost

Hydrogen production costs in 2030 for different technologies [IEA, 2019]

Carbon intensity of hydrogen production [IEA, 2019]

8 | Low Carbon Shipping Outlook

© 2019 American Bureau of Shipping. All rights reserved

www.eagle.org

THANK YOU

© Wärtsilä PUBLIC

SEBASTIAAN BLEUANUS, GENERAL MANAGER RESEARCH COORDINATION & FUNDINGWÄRTSILÄ MARINE POWER SUPPLY25-11-2020

1

© Wärtsilä PUBLIC

Lowest possible speeds and optimum routing and digital port integration

Optimized propulsion systems, propulsion energy saving devices, hull and ballast optimization, trim optimization, air lubrication

Hybrids and associated battery storage, power-take-in from renewable sources such as wind, solar

High efficiency power generation with sustainable fuels

WILL CARBON TAXATION SCHEMES DRIVE FURTHER TECHNOLOGY UPTAKE?

Climbing the emission avoidance staircase, one profitable step at a time

© Wärtsilä PUBLIC Copied with pride from: DNV GL, MARITIME Forecast to 2050 (2020 version)

WE NEED TO FOCUS ON AVAILABLE

TECHNOLOGIES

AND ALSO DEVELOP

ALTERNATIVES

THE TIPPING POINT FOR LNG: TODAY

© Wärtsilä PUBLIC

CO2

H2O

CH4 CH4 CO2LNG

CH4CO2

H2 O2

− +

4

BioLNGSyntheticLNG

e-e-

Grid balancing plantLNG powered shipping

Fossil LNG as starting point, gradually replaced with BioLNG and Synthetic LNG

A SEAMLESS TRANSITION: MOVING FROM LNG TO BIO LNG AND SYNTHETIC LNG

© Wärtsilä PUBLIC5

NOT JUST MARKETING SPIN…

WinGD’s Perspective on LNG as FuelCarmelo CartalemiHead of Global Sales

Orders of LNG Fuelled Ships is Increasing Motivated by CO2 reduction and business case

2 © 2020 WinGD WinGD`s Perspective about the LNG as Fuel

0%

5%

10%

15%

20%

25%

30%

35%

40%

2020 2021 2022 2023 2024 2025

LNG fuelled ships % of the total contract

Tanker

Bulkers

Containers

0%

2%

4%

6%

8%

10%

12%

2013 2014 2015 2016 2017 2018 2019

LNG fuelled ship historical % of the total contract

2S no-LNGC

Historical Forecast

Global Energy System Expected DevelopmentThe transition to lower carbon fuel is led by renewables and natural gas

After 2020• Oil demand is plateauing,but still above 25% share• Natural gas is increasing, reaching 25% share • Renewable is increasing • Coal is decreasing

NOTE: Paris agreement is not meet with this energy mix

WinGD`s Perspective about the LNG as Fuel3 © 2020 WinGD

4 © 2020 WinGD

CAPEX and OPEX ratio

X-Fuels for Marine Application – What Shipping Needs

WinGD`s Perspective about the LNG as Fuel

5 © 2010 WinGD

Availability and sustainability

Global Energy System Expected Development

WinGD`s Perspective about the LNG as Fuel

6 © 2020 WinGD

Energy density

X-Fuels for Marine Application – What Shipping Needs

WinGD`s Perspective about the LNG as Fuel

• Size of the bobblesis proportional tofuel price [$/MWh]

• Fuel prices arebased o currentproduction process.Fuels producedfrom renewableenergy will be moreexpenses based ontoday technologyscale

X-DF 2.0 the Next Generation Reducing methane slip and gas consumption

7 © 2020 WinGD

• Reduced fuel gas consumption by approx. - 4 g/kWh resp. 3%

• Due to the increased compression ratio the liquid fuel consumption in diesel mode is reduced by approx. - 5 g/kWh

• CH4 emission (methane slip) reduced by up to 50%

X-DF 2.0

WinGD`s Perspective about the LNG as Fuel

Thank you!