Influence of environmental
regulations and new
Technologies on shipbuilding
demand
6th Annual Marine Money Korea
1st of November 2012/Busan
Rolf Stiefel
Director Sales, Wrtsil
Wrtsil
Wartsila focus on growth areas
OUR STRATEGIC GOAL
To be recognised as the leading solutions provider in the
marine industry for:
Gas and dual-fuel Environmental
Efficiency
solutions solutions
LEADER IN
OFFERING
THROUGH
Lifecycle solutions for ship owners and operators
Enhanced system integration for the ship building industry
The best product sales and delivery process for the marine industry
Wrtsil
Major trends driving the change in shipping
Environmental regulations are just increasing!
LOCAL LOCAL
Acid rains Acid rains
Tier II (2011) Sulphur content
NOx Tier III (2016)
SOx in fuel
LOCAL GLOBAL
Direct
impact on Greenhouse
humans effect
Particulate Locally Under evaluation
matter regulated CO2 by IMO
High bunker cost are there to stay
Wrtsil
The Container vessel case..
Some time in
the 1990s today
4 Wrtsil
Measures to limit the emissions..
LOCAL measures:
Tier III in ECA ---- as of 2016 (newbuildings)
SECA ---- introduced partly more areas under planning (all vessels)
GLOBAL measures:
Tier II ---- introduced (new buildings)
EEDI ---- as of 2013 first stage (new buildings)
Global sulphur cap in two steps (all vessels) 2012-3,5%; 0,5% as of 2020
Increased CAPEX /// Increased uncertainty which
technology to select
5 Wrtsil
EEDI a figure to label efficiency of a ship.
The EEI index is a transport- efficiency indicator
It displays the ratio between environmental impact and economical benefit
Air pollutant (CO2)
EEI =
Transport work
6 Wrtsil
Energy Efficiency Design Index
EEDI
C F SFC P
Capacity Vref to be calculated by Shipyard
CF Non-dimensional conversion factor between fuel consumption measured in gram and CO2 emission also
measured in gram based on carbon content (CF = approximately 3.11 for HFO and 2.75 for LNG))
SFC Specific fuel oil consumption for the engine in gram per kW per hour
Vref Ship speed, measured in nautical miles per hour (knot), on deep water in the maximum design load
condition (scantling condition) at 75% of the maximum output of the engine(s) and assuming the
weather is calm with no wind and no waves..
Capacity Deadweight (at max design load) in tonnes for container ships, bulk carriers, tankers, gas tankers, and
general cargo ships.
For passenger ships capacity is defined as the ships Gross Tonnage, GT, as such ships are more
volume carriers instead of deadweight carriers.
P Engine power in kW which shall include both the main engine power for propulsion (75% CMCR) and the
auxiliary engine power for other purposes. The latter is interpreted as the power used on a daily basis and
shall be estimated as 3 to 5 per cent of the main engine power, no matter how much auxiliary engine power is
actually installed.
- For main engine power of 10 000 kW or above the auxiliary power is defined as: 0.025 Pprop + 250 kW
- For main engine power of less than 10 000 kW the auxiliary power is defined as: 0.050 Pprop
Pprop: Total installed main engine propulsive power in kW.
EEDI result in gCO2 / t,nm
Mandatory for new ships > 400 gt
after 1 Jan 2013 (MEPC 62, July 2011)
7 Wrtsil
Natural Gas As Marine Fuel with Wrtsil
-25% Emission
values [%]
100
90
80
70
60
-85%
50
EEDI improved due to less CO2 in ex- 40
haust CO2 -100% 30
IMO Tier III compliant without NOx
20
secondary measures! -100%
SOx
10
LNG cost lower than actual Bunker
Particulates 0
Diesel
Dual-Fuel engine engine
in gas mode
8 Wrtsil
Increased total efficiency with new engines
Propeller Engine De-Rating Total
W-X62 bore* ~ 1-5% ~ 2% ~ 2-3% 5-10%
W-X72 bore* ~ 2-6% ~ 1% ~ 2-3% 5-10%
W-X92 bore* ~ 1-5% ~ 2% ~ 2-3% 5-10%
* Versus todays solution
9 Wrtsil
Case study: 13,200TEU 2010----2014 delivery
Container vessel propulsion with W-X92
Photo: Container vessel
Particulars Base design Particulars W10X92
Vessel service speed = 23.5knots Vessel service speed = 23.5knots
CMCR power = 57,200kW at 102rpm CMCR power = 54,355kW at 80rpm
CSR load = 90% CSR load = 90%
Service power = 51,480kW Service power = 48,920kW
Propeller speed at service power = 98.5rpm Propeller speed at service power = 77.2rpm
Assumed propeller diameter = 9.3m Assumed propeller diameter = 10.0m
10 Wrtsil
Container vessel with W-X92
Base design W10X92
Built year 2010 2014
Vessel speed 23.5 knots 23.5 knots
Service load 90% 90%
CSR power 51,480 kW 48,920 kW
CSR speed 98.5 rpm 77.2 rpm
BSFC at CSR 169.3 g/kWh 161.0 g/kWh
Daily fuel consumption1 (MDO) 209.2 t 189.0 t
Daily fuel consumption 100% 90.0%
Daily fuel consumption1 (HFO) 220.6 t 199.3 t
HFO difference per day - 21.3 t
Annual HFO cost difference2 - 3,460,000 USD
Annual CO2 reduction - 16,560 t
1 LCV of MDO = 42,700kJ/kg / HFO = 40,500kJ/kg
2 HFO price = 650USD/tonne, 250 days/year
11 Wrtsil
Case Study: VLCC
7RT-flex82T-B
as of 2014???
Source: C.R. Weber Tanker report
12 Wrtsil
Fuel efficiency infl. ship investment Yields
10% less fuel efficiency implies 2.9%pt less IRR
10% better fuel efficiency implies 2.4%pt better IRR
Source: J.P. Morgan
13 Wrtsil
Changing the Fuel. Is it economical?
Caofeidian
Rizao
Dalian
Ponta da
Madeira
Tubaro
VLOC case based on Wrtsil low pressure 2/4-stroke DF technology
10/31/2012
Yearly fuel consumption ton VLOC case.
35 000
30 000
Fuel consumption [ton/year]
- 6000 ton/annum
25 000
LNG
20 000
MDO
HFO
15 000
10 000
5 000
0
Reference VLOC VLOC gas-powered
The vessel is assumed to be able to perform about 4,5 roundtrips per year
10/31/2012
Fuel prices assumed
USD/ton EUR/ton USD/mmBTU
HFO 670 462 17,4
MDO 1000 690 24,7
LNG 561 387 12,0
HFO LHV 40 600 kJ/kg
MDO LHV 42 800 kJ/kg
LNG LHV 49 200 kJ/kg
1 EUR = 1.45 USD
10/31/2012
10/31/2012
Yearly fuel consumption - kEUR
Fuel consumption expenses in kEUR/year 18 000
16 000
100%
- 4.5 Mio kEURO/year
14 000
12 000
70%
10 000
LNG
MDO
8 000 HFO
6 000
4 000
2 000
0
Reference VLOC VLOC gas-powered
CapEx- kEUR for machinery and fuel system today..
20 000
17 500 kEUR
18 000
16 000
14 000
12 000
CapEx [kEUR]
10 000
8 000
LNG system
6 200 kEUR
Aux Engines
6 000
Main engine
4 000
2 000
0
Reference VLOC VLOC gas-powered
10/31/2012
Will this all together trigger newbuilds?
Next generation technology is
ready:
Nippon Yusen Kabushiki Kaisha (NYK) to comply with Emission regulations
to use LNG as bunker
to increase propulsion efficiency
Next generation Ship designs are
in development:
economy of scale
"Although high bunker fuel prices
are a difficult problem, they also adapted to reduced vessel speed
represent an opportunity, because Dual Fuel capabilities
we can differentiate ourselves Vessels older than 15 years
from competitors through efforts to (depending on type) will generate lower
save fuel," said NYK line President investment yields
Yasumi Kudo.
environmental retrofits will not be
economical
Building cost are down!
19 Wrtsil
THANK YOU
Rolf Stiefel
Director Sales, 2 stroke engines
[email protected]
+86 13818185466
