the case for methanol-fuelled tankers

The case for methanol-fuelled tankers14 May 2021 • 11:00-11:45 BSTSupporting organisations

Tanker Shipping & Trade

Webinar Week

Part of

10-14 May 2021

Panellist documents

Page 2: Patrick Mossberg, MarinvestPage 7: Chris Chatterton, Methanol InstitutePage 21: Toni Stojcevski, Wärtsilä

Pioneering alternative fuels – marine methanol

MARI JONEDelivered April 2016

MARI BOYLEDelivered August 2016

Simplest hydrocarbon Optimal hydrogen carrier

Stable in ambient conditions

Water solventBlue, green, gray,

black Multi source mixable

Rationale on a molecular level

Summary: Methanol as Fuel

EASY TO TRANSPORT AND AVAILABLE

ALREADY TODAY AT +90 PORTS

EASY TO STORE ON BOARD. NO CRYOGENICS

INVOLVED.

PROVEN FUEL USED IN TRANSPORTATION SINCE

1970

MINOR MODIFICATION NEEDED COMPARED TO

OTHER ALTERNATIVE FUEL

TIER III COMPLIANT WITHOUT USE OF EGR

AND SCR

VARIED FEEDSTOCK INCLUDING BIOMASS

AND RECYCLED CO2 FOR FUTURE COMPLIANCE

supply independent on proprietary / oligopolized infrastructure

transportation, storage and bunkering works with existing infrastructure

fragmented supplier industry creates a functioning market

seamlessly future proof

Methanol provides better optionality

Thank you!

[email protected]

mailto:[email protected]

Riviera’s Tanker Shipping & Trade – Webinar Week

May 10 – 14th, 2021

Singapore | Washington | Brussels | Beijing | New Delhi

The Case for Methanol-Fuelled Tankers

Chris Chatterton

www.methanol.org/join-us

Long Term Measures

IMO approval timeline for methanol & measures

CCC 1o Ethyl/methyl alcoholo Fuel cellso Low-flashpoint diesel

2014 2019

CCC 5o Ethyl/methyl

alcoholo Fuel cellso Low-flashpoint

diesel

///2020

CCC 6o Ethyl/methyl

alcoholo Fuel cellso Low-flashpoint

diesel

MSC 102• New Chapter 5• Amendments• Approval• Adoption

Interim Guidelines Confirmed

Interim Guidelines Approved

Short Term Measures

///2023

Mid Term Measures

2030 2040

Short

Mid

Long

“possible short/mid/long-term measures could bemeasures finalized and agreed by the Committeebetween 2018-2023, 2023-2030 and 2030>.Dates of entry into force and when the measurecan effectively start to reduce GHG emissionswould be defined for each measure individually”

40% GHGReduction

12

3


IMO indicative workplan

Source: IMO


IMO CII

• Technical (i.e. design): Energy Efficiency for Existing Ships (EEXI) - EEDI applied to existing ships

• Operational: Enhanced SEEMP (Ship Energy Efficiency Management Plan)with mandatory Carbon Intensity Indicator (CII) rating scheme (A-E)

• Measures consolidated into a singlepackage; the outcome is a finelybalanced political compromise

Source: IMO, DNV GL

Methanol provides immediate compliance with substantial net GHG reductions, coupled with a strong futureproof pathway, supporting a

CO2equivalent approach

NOx


Methanol production routes

Renewable CO2: from bio-origin and through directair capture (DAC)

Non-renewable CO2:from fossil origin, industry

Source: IRENA


Multiple pathways and sub-verticals…

Notes: MeOH = methanol. Costs do not incorporate any carbon credit that might be available. Current fossil methanol cost and price are from coal and natural gas feedstock in 2020. Exchange rate used in this figure is USD 1 = EUR 0.9.

Source: Based on data from MSA 2020, IRENA

…mean less price volatility and better visibility


Heatmap of methanol applicability – ARA scenario

• Most midrange shipping markets havevessels with over-dimensioned tankcapacity, which allows them to bunkermethanol instead of HFO/MGOwithout serious adjustments to thebunker frequency, sailing pattern, ortank capacity/ship design

• For shipping markets with point-to-point sailing patterns and/or shortdistances methanol is certainlyfeasible, however it may compete withother alternative green fuel optionssuch as hydrogen

• Inland shipping appears promising formethanol, though this segment alsomay compete with e-diesel, hydrogenor battery-electric propulsion

Source: TNO Report 24 Sept. 2020 – Green Maritime Methanol – Operation aspects and the fuel supply chain


Chemical Fleet: Avg age by DWT size and coating

Source: Argo


Biggest owners and their NB programs

Source: Argo


Net fleet growth in number of ships

Source: Argo


Methanol dual fuel standardized design

www.methanol.org/join-us WWW.METHANOL.ORG

Methanol bunkering & infrastructure

• Much of the required infrastructure is already in place

• Similar to bunkering distillate fuel

• A number of pilots have significantly contributed to the build up in knowledge and understanding of how methanol is safely handled and performs

• Both new builds and retrofits are economically viable

• Planning large-scale methanol bunkering demonstration by May in a major European Port


Availability initially via larger trade hubs


Experience shows methanol is efficient and available

• As much of the required infrastructure is alreadyin place, retrofits can be readily considered…

• …One of the main reasons so many successfulpilots have already been completed

• The molecular structure allows for much moreefficient combustion, giving way to furthertechnical efficiencies at the main propulsion unitlevel

• An efficient H2 carrier for future fuel platformssuch as fuel cells, converting methanol to H2onboard

C O H

H

H

H

2021Today

2030- 40% carbon intensity

2050-70% carbon intensity &

-50% in total GHG emissions2023

EEXI

30,000 VESSELS WILL REQUIRE RECERTIFICATION*

*Source: DNV

© Wärtsilä PUBLIC

NITROGENGENERATOR

DIESEL PUMP

FUEL RETURN

METHANOL TANK ANDLP FEED SYSTEM

EHSVSSV

SSV: Start-up and Safety ValveEHSV: Electro-Hydraulic Solenoid Valve* All methanol lines can be flushed with nitrogen.

NITROGEN PURGE*

CONTROL OIL

METHANOL

METHANOL PUMPnon-ATEX

OIL UNIT

SEALING OIL

TECHNOLOGY – MD SYSTEM LAYOUTPILOT-FUEL ASSISTED DIESEL COMBUSTION CONCEPT

Toni Stojcevski / Wärtsilä10 May 2021


• Engine conversion to dual fuel• New electrical installation• New engine control system for all

four engines• High pressure pipes• Methanol storage tank, painted with

zinc silicate• High pressure pumps

METHANOL CONVERSIONSTENA GERMANICA - FIRST COMMISSIONED IN 2001, RETROFITTED IN 2015



0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0.00 5.00 10.00 15.00 20.00 25.00 30.00

Filte

r Smo

ke N

umbe

r Mea

s 1 [F

SN]

BMEP [bar]

ZA40_reference

Z40_reference 2003_HFO_CSZ40_reference 2014_LFO_CSZ40_load swing_450bar pinjZ40_load swing_600bar pinj

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

0.00 5.00 10.00 15.00 20.00 25.00 30.00

NOx M

arin

e Sp

ecific

ISO

8178

Cor

r[g

/kWh]

BMEP [bar]

ZA40S_reference

Z40_reference 2014_LFO_CSZ40_reference 2003_HFO_CSZ40_load swing_450bar pinjZ40_load swing_600bar pinj

200

250

300

350

400

450

500

550

600

650

0 5 10 15 20 25 30

t5 Te

mp

b Tur

bine

[°C]

BMEP [bar]

ZA40S_reference

Z40_reference 2003_HFO_CS_normZ40_reference 2014_LFO_CS_normZ40_load swing_450bar pinj_norm

Z40_load swing_600bar pinj_norm160165170175180185190195200205210215220225230235240245

0.00 20.00 40.00 60.00 80.00 100.00 120.00To

tal B

SFC

LHV

Corre

cted [

g/kW

h]

Engine Power % [%]

Z40_reference

Z40_reference 2014_LFO_CSZ40_load swing_450bar pinj

Z40_load swing_600bar pinjZ40_reference_HFO_2003

~2%

NO REDUCTION IN OUTPUT, LOAD RESPONSE UNCHANGED, 7-8% CO2 REDUCTION

RESULTS OF WÄRTSILÄ SULZER ZA40S-MD

14-May-21 Toni Stojcevski / Wärtsilä

© Wärtsilä PUBLIC6

W32 Methanol engine development

• Based on proven and reliable W32 engineconcept – > 4 000 engines delivered

• Experience from ZA40S methanol concept• Back up fuel operation possible (LFO + LBF

or HFO)• 6L – 16V , 3000kW - 9000 kW• Main engine in MR or auxiliary in LR tankers• In operation today - 102 tankers with W32• Can be delivered in 2023

WÄRTSILÄ 32 METHANOL ENGINE UNDER PLANNING- AVAILABLE FOR BOTH NEWBUILD AND RETROFIT


the case for methanol-fuelled tankers

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