dr. christian poensgen - cimac
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06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen < 1 >
Challenges of Gas Engine Introduction
Dr. Christian PoensgenEngineering Director
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
LNG for PropulsionBenefits & Challenges
Benefits:
No additional measures to reach NOx and SOx-limits
Will meet future IMO black carbon regulations
Reduced CO2 emissions
Reasonable fuel prize
Safe and redundant operation
Excessive heat recovery possible
Helps for the EEDI
Challenges:
Installation of storage equipment
Regulations not finally settled
Infrastructure and refuelling
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen < 3 >
A look into the Gas Supply Market
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16000
18000
1990 2000 2009 2020 2030
Primary Energy Demand in mtoe
RenewablesNuclearGasCoalOil
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2
4
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22
Crude OilGas (Europe)Gas (Japan)Gas (USA)Coal
USD per GJ
• Natural gas offers:- abundant supply- relatively low prices- relatively low emissions
• Future gas demand growth surpasses that of all other fossil fuels.Total demand growth 2009-30: Gas +46% Coal +24%Oil +14%
Oil reference = 1
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Active and Suggested ECA AreasDoes this provide a Challenge?
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
Liquefactionplants
Regasificationplants
Small scale LNG
Asset in service
Planned / Constr. in progressProposed
Source: California Energy Commission Systems Assessment & Facilities Division Cartography Unit
Worldwide LNG infrastructure has beendeveloping at a fast pace (althoughcurrently being sloweddown). Small scaleLNG-facilities can bederived from large terminals.
LNG for PropulsionLNG availability worldwide
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
LNG-Carrier
Using gas as fuel is a necessary by-product of cargo handling
Market participants:• Limited number of market players with
long-time experience handling gasMDT’s Scope:• Engines & engine related auxiliaries
Relevant Legislation:• International Gas-Carrier Code (IGC-
Code)
Merchant, Pax, Offshore, Navy
Using gas as cheap fuel with minimized effects on core ship operations
Market Participants:• Large number of stake holders with
limited / no experience in handling gasMDT’s Scope:• Consulting / training of customers• Complete system supply (from bunker
station to funnel end)Relevant Legislation:• IGF-Code• Application-related codes like MODU
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Key Driver Market Requirements
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Emission Advantages of Gas Engines
<
Customer Benefit of Dual Fuel Engines Use of full range of fuels from HFO to
natural GAS Mixed fuel operation mode Compliance to Tier II in Diesel mode Compliance to Tier III in Gas mode Secure power supply during switching
from Gas to Diesel operation mode
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
LNG for PropulsionMethane Slip – Facts about Methane Slip
All low-pressure dual-fuel & gas engines have methane slip
All engines working to the ME-GI principle have no methane slip
Methane slip is unburned CH4 which is not participating the combustion in gas engines
Methane is non-toxic
Methane as GHG is 20-25 times more harmful than CO2
No limitations regarding Methane slip exist in marine applications
Minimizing Methane slip is a major target to improve engine efficiency
H
H
H
C H
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
LNG for PropulsionMethane Slip – Total GHG Emissions
Above low loads, DF-engines emit a significant lower amount of total GHG emissions compared to liquid fueled engine
For liquid fuel engines, CO2 and GHG emissions are approx. the same
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100
150
25 50 75 100
Specific GHG [%]
Engine Load [%]
*Reference: CR (HFO) @Full Load
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100
150
25 50 75 100
Specific CO2 [%]
Reference*G (pure gas)CR (MDO)CR (HFO)DF (MZ 80)
Most Critical Area
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen < 10
51/60 DF EngineTier II in Diesel, Fuelsharing and Tier III in Gas Mode
Change over from Diesel to Gas mode Quick changeover change over to Diesel
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
Gas fuelled shipsMarket Scenarios
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Identified main applications for gas fuelled ships:Offshore
S&SGeneral cargoFerries 4-s
containerCruise Offshore
E&P Tug
• A minimum share of 9.5 % gas fuelled ships (after ramp up) was calculated based on hard facts.
• The assumptions for the calculation were made on a conservative base, other effects than the currently known ECAs (North & Baltic Sea and the U.S. and Canada’s coasts ) are not considered.
Expected percentage of total respective market segment:
10%30%
16%48%
18%54%
15%45%
21%63%
7%21%
4%4%
2-s vessels
harbor aux. GenSetslow end expectation
max expectation
Total marine medium speed market forecast
2012 2013 2014 2015 2016 2017 2018 2019 2020
Order forecast
Market forecast 4-s propulsion and auxiliary
DF-market share ~ 30%(max expectation)
DF-market share ~ 9%(min expectation)
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
Legislation IMO Implementation Schedule
00,5
11,5
22,5
33,5
44,5
5Sulphur Content [%]
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
NOx [g/kWh]
Tier I
Tier III
Tier II
in ECAs
in ECAs
Global
For new and existing vessels
For new vessels only
we are here
Will the introduction of lower SOx emissions impact switch to gas?
First owners are switching to gas for new buildings
where gas supply is sustainable available or gas equipment gets subsidisedMost will retrofit scrubbing
technology
In can be expected we will see in some areas
of the world well established gas supply networks, hence most of coastal shipping will move to gas for new
building
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Is the DF Engine an intermediate product?
increase
Not a matter of if, but
by when
Rule of the thumb: A DF engine is designed like Otto engine capable to run with Diesel
Once gas supply is sustainable available, DF engines can be retrofitted to spark ignited engines with very limited work There will be an efficiency and maintenance cost benefit which will pay for
the retrofit quickly By this, owners can ring fence their investment
Today DF Future Spark Ingition???
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen < 14 >
Economics Gas – Oil(Example “Container Feeder”)
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50%
100%
150%
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250%
300%
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400%
450%
500%
IMO Tier II1-stage
IMO Tier III 2-stage SCR -
MGO
IMO Tier III 2-stage SCR +
Scrubber
LNG fuelled vessel
Rel
ativ
e co
sts
[%]
First costs of IMO Tier III
LNG System
Main Scrubber
SCR
Dual Fuel Equipment
2-stage TC
Engine
Engine Application
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-500
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0 1 2 3 4 5 6 7 8 9
Del
ta c
umm
ulat
ed In
vest
+ o
pera
tion
Cos
t [€
/kW
]
Years of operation
Payback analysis with an 100% ECAIMO Tier III 2-stage SCR - MGO
IMO Tier III 2-stage SCR + Scrubber
LNG fuelled vessel (LNG price @ HFO level)
LNG fuelled vessel (LNG price between HFO & MGO)
LNG fuelled vessel (LNG price @ MGO level)
Scrubbing technology promises quick payback compared to distillate scenario (< 1 year)
Long-term view shows cost advantage after ~ 3 years for the LNG-fuelled vessel (LNG price @ HFO-level)
LNG pricing scenarios between or close to MGO level cannot compete against scrubbing scenario
System Acquisition Cost
Payback analysis
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
0%
50%
100%
150%
200%
250%
300%
IMO Tier II1-stage
IMO Tier III 2-stage SCR -
MGO
IMO Tier III 2-stage SCR +
Scrubber
LNG fuelled vessel
First costs of IMO Tier III technologies
LNG System's
Main Scrubber's
SCR`s
Dual Fuel Equipment
2-stage TC
Engines (without propulsion pack)
Engine Application
-200
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200
400
600
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1000
1200
0 1 2 3 4 5 6 7 8 9
Del
ta c
umm
ulat
ed In
vest
+ o
pera
tion
Cos
t [€
/kW
]
Years of operation
Payback analysis with an 100% ECAIMO Tier III 2-stage SCR - MGO
IMO Tier III 2-stage SCR + Scrubber
LNG fuelled vessel (LNG price @ HFO level)
LNG fuelled vessel (LNG price between HFO & MGO)
LNG fuelled vessel (LNG price @ MGO level)
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Economics Gas – Oil(Example “RoRo, Pax, Ferry”)
LNG fuelled vessel with gas price scenario @ HFO level most economic & shows also cost advantages compared to scrubbing scenario
LNG pricing scenarios between or close to MGO level cannot compete against scrubbing scenario
System Acquisition Cost
Payback analysis
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen < 16
Alternative: Duel Fuel Modifications CV Neptun 1200 DF
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen < 17 >
Gas Solutions
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
LNG as a Fuel for Large Container Ships
Potential Issues with LNG:
• LNG Tank Location
• LNG Tank Size & Type
• Class & Safety
• Handling of BOG
• LNG Loading Facilities
• Logistics of LNG
Gas Treatment System
LNG Drum HP Pump
LNG Vaporizer
ME-GI Engine
8M
PC
Cool down & mini flow line
PC
NG Damper
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06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
Benefits:
No additional measures to reach NOx and SOx-limits
Will meet future IMO black carbon regulations
Reduced CO2 emissions
Reasonable fuel prize
Safe and redundant operation
Excessive heat recovery possible
Helps for the EEDI
Challenges:
Installation of storage equipment
Regulations not finally settled
Infrastructure and refuelling
< 19 >
Challenges of Gas Engine Summary
more workrequired
06.09.2012© MAN Diesel & TurboChallenges of gas engine introduction – Dr. Christian Poensgen
Discussion
< 20>