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Twentyfour7.Wärtsilä Quarterly Magazine

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Wärtsilä Quarterly MagazineTwentyfour7.

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WÄRTSILÄ NETWORK

Lean-burn simple-cycle strikes Nevada gold

MORE ON PAGE 51

WESTERN 102, NEVADA, USA

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FOURTEEN DAYS ON THE EDGE

As the helicopter startslanding, its passengers pullup the hoods of their survivalsuits. Petrojarl Varg operates in the middle of the North Sea, a notorious location for storms.

MORE ON PAGE 20.

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Energy NewsInformation about Wärtsilä Power Plants

1.06 Twentyfour7. 5

Marine NewsCoverage of Wärtsilä Ship Power

WattsonAn overview of the Wärtsilä business and market outlook

CORPORATE BRANDS are always evolving. Companies such as Wärtsilä, which has a history stretching back more than 170 years, have different characters in different decades.

Our brand is an everyday tool for communicating with the wide variety of people who we meet on a daily basis. It’s fascinating to sit back and think for a moment of those thousands of Wärtsilä people who are in daily contact with our customers – one of them might be you.

We have people to meet and hands to rely on. Every one of us communicates by refl ecting our company values. We also share passions – for engines, for serving our customers, and for solutions. So it does not matter how much the business has changed over those more than 170 years, one key characteristic has remained – a passion for what we do. This is something you have surely noted.

The magazine you are holding is the face of Wärtsilä for all our stakeholders, a child of our brand evolution. Its proud parents are Marine News and Energy News. Both of them and some of our local customer magazines have given the best of their genes to this lively new creation. We are now presenting our world through new eyes, full of excitement.

Making a magazine for you is a privilege. It is with pride and pleasure that I write to you under the title of Twentyfour7. Through this magazine we want to share our desire to make things work, now and tomorrow.

Twentyfour7. introduces a new generation of the Wärtsilä brand. Our commitment and passion is to offer you the best possible experience – both in our products and services and within these pages.

Yours truly,Mikael SimeliusVice PresidentMarketing Communications & Branding

editorial

Dear Reader,

TWENTYFOUR7. HAS EVOLVED FROM

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“Love looks not with the eyes, but with the mind...”

WE VALUE CREATIVITY.

- William Shakespeare

30 Flexible fuel The range of options for energy generation is increasing. Plus news from the ‘Frying Squad’.

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38 America’s Energy Growing demand and increasing dependence on imported oil. Can the Intelligrid help conquer blackouts, brownouts and unreliable energy supplies?

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44 High on speed Small-scale passions can last a lifetime. Aeromodeller Jari Valo shares some of his secrets.

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E 20 North Sea Harsh conditions that test the skills of offshore professionals, and Europe’s most important source of oil. Gourmet-standard food helps.

Wärtsilä Quarterly Magazine*

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51 NevadaFast start-up, fl exible operation and almost-zero consumption of process water. Barrick’s gas-fi red simple-cycle plant strikes gold in Nevada.

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As safe or safer than diesel fuel when used correctly, LNG is still a rarity for ship power. This Wärtsilä ferry concept is a sound environmental choice.

PLUS: 35 FINANCE & BUSINESS WORLD 47 R&D, INNOVATION

1.06 Twentyfour7. 7

48 INFOGRAPHICS

Environmentally-sound cruising

AROUND THE GLOBE

10 FOLLOW THE SONG Humpback Whales

12 CALENDAR upcoming events NEWS orders, appointments

13 DICTIONARY useful defi nitions

HOW ABOUT A LITTLE BUBBLY? a gentle fi zz…

14 PEOPLE & FACES Meet Wärtsilä in Italy. More NEWS

15 COLUMN by Mikael Mäkinen

16 MY BOOKS light and not-so-light reading YESTERDAY, NOW, TOMORROW M/S Song of Norway becomes a princess.

17 PHOTO QUIZ do you have any idea where this happened?

18 COLUMN by Ole Johansson

19 CORPORATE CITIZENSHIP providing childrens’ education and healthcare in India.

SIGN OFF

*contents Wärtsilä Quarterly Magazine*

The following information contains, or may be deemed to contain “forward-looking statements”. These statements might relate to future events or our future fi nancial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause Wärtsilä Corporation’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identifi ed by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this publication are based only on information presently available in relation to the articles contained in this magazine and may not be current any longer and Wärtsilä Corporation assumes no obligation to update any forward-looking statements. Nothing in this publication constitutes investment advice and this publication shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity. Dis

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inside Energy & Marine

Publisher: Wärtsilä Corporation | John Stenbergin ranta 2 | P.O. Box 196 | FI-00531 Helsinki | Finland | Telephone: +358 10 709 0000 |Email: [email protected] Editor-in-Chief: Mikael Simelius | Managing Editor: Nina Pulliainen | Editorial team: Jussi Heikkinen, Marit Holmlund-Sund, Martina Kranzelbinder, Tom Kreutzman, Maria Nystrand, Dan Pettersson, Joséphine Ramsay | Editorial offi ce and layout: Kynämies Oy | Helsinki | Finland |English editing: Rick McArthur | Printed by Punamusta | Joensuu | Finland |ISSN 1797-2161 | WÄRTSILÄ® is a registered trademark | Copyright© 2006 Wärtsilä Corporation | Paper: cover Galerie Art Silk 250 g/m2 inside pages NovaPress Silk 90 g/m2

| Cover photo: Timo Kauppila

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71 DESSERT a little of what you fancy does you good.

72 AT YOUR SERVICE tips on how to be ahead of the game.

73 TRAVELLERS’ GEAR useful accessories on the road

74 HISTORY CORNER fi rst diesel engine in the Antarctic LITTLE ENGINEER’S PAGE a power-crazy pastime

76 MY PARENTS wisdom from younger generations

56 GUARANTEED POWER FOR HOSPITALSReliable energy supplies are life-critical.

59 BIOPOWERBelgium’s fi rst Wärtsilä BioPower plant

60 LIQUID BIOFUELThe dream of a virtuous circle is now reality.

62 OPTIMUM ENGINE PERFORMANCEWärtsilä O&M agreements in marine environments

64 WÄRTSILÄ THRUSTERSEssential for dynamic positioning, a unique range of technology for the offshore industry

67 CONTAINER FEEDER NEWBUILDINGS OPT FOR A MEDIUM-SPEED SOLUTIONFour-stroke engines offer fuel savings and operational fl exibility.

68 FIRST WÄRTSILÄ RT-FLEX50 ENGINES ENTER SERVICEStrong demand for Wärtsilä’s common-rail low-speed technology

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www.wartsila.com

YESTERDAY, NOW, TOMORROW16

73 TRAVELLERS’ GEAR

BIOPOWER, PAGE 59 WÄRTSILÄ RT-FLEX50, PAGE 68

You can finally retire when your youngest child is in a rest home.

WE OFFER FULL LIFECYCLE SUPPORT.

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FOLLOW THE SONGGIANTS OF THE SEAS, Humpback Whales can be found in all the worlds’ oceans. They are divided into four groups: North Pacifi c, South Pacifi c, North Atlantic and South Atlantic. The current global population of Humpback Whales is estimated to be about 35,000.

MOST POPULATIONS follow regular migration routes, spending the summer months feeding in temperate and polar zones as the colder waters are nutrient-rich. In winter they migrate to warmer tropical waters to breed and calve. As newborn calves have no body fat for insulation, the sub-arctic waters in both the northern and southern hemispheres are too cold for them.

NORTH PACIFIC HUMPBACKS have three primary wintering grounds off the coasts of Japan, Hawaii, and Mexico. South Pacifi c Humpbacks follow the coast of eastern Australia and spend their winters east of Queensland in the sheltered waters of the Great Barrier Reef.

HUMPBACK WHALES have extremely powerful tail muscles and tail fi ns. Some whales have been observed to swim at speeds exceeding 32 kilometres per hour. It takes them just 30 days to reach Alaska from Hawaii.

THE SONGS of the Humpback Whale are a subject of intense study and speculation. Their complex and highly-structured calls are repeated for hours.

TEXT: KRISTIINA KUISMA


SEATRADE CRUISE SHIPPINGMarch 13 – 16, Miami, USA

STAND NO. 1601.

INT. TUG & SALVAGE EXHIBITION & CONFERENCE

April 24 – 28, Rotterdam, NetherlandsSTAND NO. 3.

WORLD BIOENERGY 2006 May 30 – June 1, Jönköping, Sweden

The conference, exhibitions and events are organised to take you

to the most relevant know-how, and from there to the show-how of

bioenergy systems at work. STAND NO. A03:01

POWERGEN EUROPE May 30 – June 1, Cologne, Germany

Conference and exhibition for the European power generation industry.

STAND NO. F2.

POSIDONIAJune 5 - 9, Piraeus, Greece

The International Shipping Exhibition.

NEFTEGAZ 2006June 19 – 23, Moscow, Russia

The 11th International Oil & Gas Exhibition.

THE FINNISH PAVILION; PAVILION 2, HALL 2.

GLOBAL PETROLEUM SHOWJune 13 – 15, Calgary, Canada

Every two years, the Global Petroleum Show presents the latest in oil and

gas products and services. STAND NO. 6231.

WÄRTSILÄ’S FINANCIAL INFORMATION 2006

Wärtsilä will publish three Interim Reports during 2006 as follows: The report on January–March operations

Thursday, May 4, January–June operations Friday, August 4,

January–September operations Tuesday, October 31.

calendararound the globe

First Wärtsilä power plant in Azerbaijan inauguratedLast spring, the Azerbaijan electricity company Azer-Enerji awarded Wärtsilä a contract for fi ve gas-fuelled power plants with

a combined electrical output of 450 MWe. The new plants will serve as decentralized power plants supplying the national grid in fi ve different regions in Azerbaijan.

The fi rst plant, Astara, was inaugurated in February 2006 by President Ilham Aliyev of the Republic of Azerbaijan, and is due to start operating early in 2006. The other four plants are scheduled for completion later in the year. Astara is equipped with ten 20-cylinder Wärtsilä 34SG gas-engine generating sets and has a total output of 90 MW.

Wärtsilä acquires company from Aker Kvaerner in NorwayWärtsilä has acquired Aker Kvaerner Power and Automation Systems AS (AKPAS) from Aker Kvaerner in Norway. AKPAS supplies power and automation systems for oil, gas, marine and industrial applications. The company mainly operates in the North Sea region with customers that include major oil and gas companies as well as Norwegian shipyards. AKPAS is situated in Stord near the municipality of Bomlo, where Wärtsilä already has operations, and employs N

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in the fi elds of drilling, exploration, production,

and environmental protection.

May 1 – 4, Houston, USA

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around the globe

HOW ABOUT

A LITTLE BUBBLY?

Champagne is for celebration. It has launched thousands of ships and toasted billions of weddings, inaugurations and business deals. In more intimate situations, it has witnessed countless special shared moments between couples.

Champagne has succeeded perfectly in building a consumer brand which everyone desires. It’s an excellent example of the mysterious ways in which we humans defi ne ourselves through what we consume, and how we use food and drink to give meaning to social events.

The meaning and appeal of champagne are universal. So… when I tell you my Saturday morning will start with bubbles, don’t you start to feel envious and taste that unique thrill of temptation?

Cheers!


Dictionary 01.2006

Jaakko Eskola has been appointed Group Vice President, Ship Power, and a member of the Board

of Management. Mr Eskola is presently responsible for the global sales of power plants. Executive Vice President Mikael Mäkinen, who currently heads the Ship Power business, is leaving Wärtsilä to pursue other opportunities.

Christoph Vitzthum has been appointed Group Vice President, Power Plants, and a member of the Board of Management. Mr Vitzthum has been Managing Director of Wärtsilä Propulsion since 2002. Pekka Ahlqvist, who is currently Group Vice President, Power Plants, will continue in the group with

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BIOFUELBiofuels are a large source of energy worldwide. They are derived from forest, swamp and agricultural biomass, and from organic solid, liquid and gaseous biowastes recoverable from municipal, agricultural and industrial processes.

COGENERATIONThe simultaneous generation of electricity and heat. Also called Combined Heat and Power (CHP). This method raises total effi ciency levels above 90% since the heat produced during power generation is recovered and used, for example, in industrial processes or to supply district heat.

COMBINED-CYCLE TECHNOLOGYThe use of two different power generation processes, e.g. fuel-burning engines and steam turbines, in the same power plant. The second process utilizes heat recovered from the fi rst.

COMMON RAILA method of fuel injection that eliminates the principle of one pump/cylinder. The common rail is constructed from a series of accumulators inter-connected by small-bore piping. The injection pressure is adjusted as desired and the injection timing (start and stop) is controlled electronically. Wärtsilä has used common-rail technology to develop the “smokeless engine”, which also reduces NOX and CO2

emissions.

IN BOARD OF MANAGEMENT responsibility for supervising those Wärtsilä companies that specialise in automation products and services, and the strategic management of Wärtsilä’s automation activities. Mr Ahlqvist will report to Tage Blomberg, Group Vice President, Services. The above appointments are effective 1 April 2006.

Matti Kleimola, Group Vice President, CTO, will retire on 1 May 2006. Following his retirement, Mr Kleimola will continue to function as an advisor to the Board of Management in matters related to technology.

SHIP POWER BUSINESS

Magnus Miemois has been appointed Vice President, Head of the Solutions business.

Henrik Wilhelms has been appointed Vice President, 4-stroke business.


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135 people. This deal supports Wärtsilä’s growth strategy and increases its product portfolio in electric propulsion systems, power distribution and automation, especially in the oil and gas and offshore sectors. NUCLEP in Brazil to manufacture Wärtsilä enginesWärtsilä signed an engine licence manufacturing agreement with NUCLEP (Nuclebrás Equipamentos Pesados S.A) in Brazil in January 2006. The agreement allows Nuclep to manufacture certain types of Wärtsilä’s most modern

electronically-controlled common-rail 2-stroke marine diesel engines. Nuclep expects to produce six to ten Wärtsilä engines a year with the fi rst one scheduled for delivery in 2008. Nuclep will also acquire technical assistance, training, marketing and production support.

Two power plants for the Russian Arctic regionThe Russian contractor Globalstroy-Engineering and Wärtsilä have agreed on the delivery of a power plant to generate electricity for the Varandey oil terminal in northwest Russia on the Pechora Sea, part of

the Barents Sea. The oil terminal is used for the shipping of crude oil to world markets. Wärtsilä is supplying four 18-cylinder Wärtsilä 32 generating sets and the power plant, which complies with strict safety and environmental protection requirements, is scheduled to be fully operational in 2007.

A contract has also been signed with the Bema Gold Corporation for a cogeneration plant producing electricity and heat for the Kupol project, a high-grade gold and silver mine located in the Chukotka Autonomous Okrug of Siberia. The power plant will have four 12-

cylinder Wärtsilä diesel generating sets and will begin operation in 2008. The Kupol project is located in the continental climatic region of the sub-arctic climate belt.

Dual-fuel engines for captive power plants in PakistanWärtsilä is to supply natural gas-fuelled Wärtsilä 50DF dual-fuel engines for two captive power plants in Pakistan. One will be installed in an extension at the Maple Leaf Cement Factory in the Punjab, the other will operate at the cement works of the D.G. Khan Cement Co in Khairpur in the same

GINO PERIC, AGE 48

I’m working at the same machine as Roberto Trabucco:

tapping, reaming and numerically-controlled functions.IVIS GABRIELE, AGE 27, CREVATIN CORRADO, AGE 46, AND FLAVIO BONAZZA, AGE 34Co-ordinating the duties of mechanics that work in pairs is our responsibility – they tend to work in fi xed teams.

ALESSANDRO VARGIU, AGE 39I’m responsible for the pre-assembly of Wärtsilä 46 engines – crankshafts and a variety of other components.

People & facesWärtsilä, Italia, Trieste

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I work on this V-shaped engine unit, degreasing

engines after they arrive and then leaving a 2 mm

layer of grease on them for the next procedure.

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Cruise industry hasA BRIGHT FUTURE

THE MARINE market is in one of its most interesting business cycles ever. Order intake is at an all-time high, freight rates are high, the oil price is high but at the same time the world economy isn’t growing that fast. The conclusion must be that globalisation is also affecting the marine industry and that transportation by sea is growing faster than world trade.

I want to highlight one specifi c area which is of interest to Wärtsilä, namely the cruise industry. Currently doing well, new and existing consepts being developed mean that the cruice industry’s prospects are even better. In percentage terms, the most-rapid growth is taking place in Europe and very much with European passengers. Many new destinations such as Dubrovnik and Libya are being added to ship itineraries.

The biggest growth in passenger numbers is of course taking place in North America and in cruises out of Florida with large ships featuring climbing walls, ice-skating rinks, wine bars and large spas. Another trend is that all cruise lines have an urgent desire to become more environmentally sound - smoke from a ship’s engines is very visible “pollution”, in a form that both passengers and the public notice.

For an engine builder, engine effi ciency is the main road to environmental soundness. Wärtsilä has taken this one step further by looking at the total propulsion system, including propellers, seals, secondary-clearing methods, lifetime support etc. This has given us a very competitive solution with both the lowest environmental burden and the lowest lifetime cost. The next step when analyzing effi ciency is to integrate ship systems even further, and to be able to do this big solution providers and strategic alliances between sub suppliers and shipyards/shipowners are needed. Wärtsilä will develop in the direction of a solution provider while at the same time developing all the individual components to be cost-competitive and best-in-class.

Mikael Mäkinen Executive Vice President, Head of Ship Power

MIKAEL MÄKINEN IS LEAVING WÄRTSILÄ TO TAKE UP THE POSITION OF

PRESIDENT AND CEO OF CARGOTEC CORPORATION, A FINNISH CARGO-

HANDLING COMPANY. HE WILL START AT CARGOTEC ON 1 APRIL 2006 AND

BECOME PRESIDENT AND CEO ON 1 MAY 2006.


VALENTINO MICAZ, AGE 29I receive engine designs and carry out comparisons. It’s pretty challenging work. I program numerical-control machines for drilling engine units and

also select tools.

region. Both plants are scheduled to be in operation in autumn 2006. Wärtsilä 50 DF engines operate on natural gas with heavy fuel oil (HFO) as back-up, and have both low emissions and high levels of fuel effi ciency.

Wärtsilä service acquisition in the US closedWärtsilä and Gerhardt Holding Co., Inc. in the US have closed the transaction transferring Gerhardt’s service operations to Wärtsilä and the business has been consolidated into Wärtsilä with effect from 1 December 2005. Operations in this

business focus on servicing control and automation equipment for gas and diesel engines.

New WLSA training centre opens in FinlandA new Wärtsilä Land & Sea Academy (WLSA) opened in Turku, Finland, in January 2006. The facility features 13 different Wärtsilä engines, engine accessories and top-of-the-line simulators to assist with practical training. Already now, around 200 courses are scheduled to train nearly 2000 trainees from all over the world.

www.wartsila.com

ROBERTO TRABUCCO, AGE 35

My post is the numerically-controlled machine

for drilling engine units – it also does tapping

and reaming.

PAOLO VASCOTTO, AGE 44Testing engines when they are running - and measuring the power they produce.

ROBERTO MICCOLI, AGE 57

Installing semi-fi nished cylinder heads and

head valves on engines is a job I like being

assigned to.

EGON KRAVOS, AGE 31I like to work on the tracing machine we use on engine units, transferring measurements in the blocks sent to us from the casting plant into three dimensions to track down any porosity or anomalies.

YESTERDAY M/S Song of Norway was built by Wärtsilä Helsinki Shipyard in 1969. Launched as Newbuilding 392 from a slip berth on 12 December 1968, she had a capacity of 724 passengers and was delivered to Royal Caribbean Cruise Line on the 5

October 1970. Nowadays she sails under the name Dream Princess and is mostly cruising in the Mediterranean for Caspi Cruises.

Her clipper-like bow and slim lines make her a beautiful ship and what was at that time a novel and very high-class interior design made her a favourite choice of cruise passengers all over the world. M/S Song of Norway has inspired many naval architects and ship owners in the development of cruise ships, which are becoming bigger and faster every year. There will always be something beautiful, perhaps nostalgic in the design of

her clipper bow which gives the whole ship an appealing shape. Her extension in Helsinki by some 26 metres (85 feet) in 1978 increased the number of passengers she could carry to 1196 and made her look even better.

M/S Dream Princess has seven Wärtsilä (Vaasa)-designed-and-built 624TS diesel generating sets. At the time she was built the Wärtsilä Helsinki Factory had a foundry which cast the engine blocks and cylinder heads for our own design 24-type engines. Her main engines are four Wärtsilä Sulzer 9ZH40/48 built under licence in Vaasa.

NOW Today’s biggest cruisers are post-panamax size. One series of these is the RCCL Freedom class cruisers. M/S Freedom of the Seas, the fi rst ship in the series, is scheduled for delivery

in May 2006 by Aker Finnyards in Turku. Freedom class cruisers have six 12-cylinder Wärtsilä engines in V-confi guration. These enormous ships offer their 3600 passengers every possible type of entertainment, they have both ice-skating rinks and wave surfi ng in mechanically-propelled waterslides – not to mention all the posh restaurants and shopping malls.

TOMORROW What will the future bring as cruise ships become larger? We have to use our imagination. Perhaps they will remain at sea indefi nitely, and have an airstrip on the upper deck for passengers who are joining or leaving the cruise or who maybe want to make a visit ashore.

around the globe [ YESTERDAY, NOW, TOMORROW | MY BOOKS ]

TEXT: PAOLA VIDAL

AUTHOR IS GENERAL MANAGER, WÄRTSILÄ

CHILE LTDA

silän. Theser 3600

e type of both ice-rfi ng in aterslides


An inspiration to many naval architects and ship owners, M/S Song of Norway was extended in 1978. She is now the M/S Dream Princess.

M/S SONG OF NORWAYThe “mother” of modern cruise ships

My books

TEXT: JOHN ANDERSIN

YESTERDAY

NOW

AUTHOR IS DIRECTOR, WÄRTSILÄ IN FINLAND

AUTHOR IS GENERAL MANAGER, WÄRTSILÄ IN CHILE

TEXT: PAOLA VIDAL

LA HERMANDAD DE LA SABANA SANTA, (The

Brotherhood of the Shroud) Julia Navarro (Spanish)

A fi re in Turin Cathedral where the famous shroud is kept.

A strange murder, mixed up with cults and powerful

businessmen. From long ago in the past to the present day,

relationships across time.

ANGELS & DEMONSDan Brown

The deepest mysteries of history, some of them hidden

for centuries. Symbols, and the most dangerous weapon

in history. Hidden clues left in church documents by the

Illuminati. Fascinating.

RE-IMAGINETom Peters

International best seller, an update on management trends

and everyday innovation, the long and endless road to

excellence. So many thoughts and suggestions, how things are

today and how they will not be tomorrow…

DA VINCI CODEDan Brown

Don’t miss it, absolutely absorbing! Read in just a couple

of days – a record for me. Eye-opening view of the Catholic

religion and all the myths that surround the church and its

rituals and beliefs.


around the globe

What was this event and where did it take place?

photo quiz

The answer can be found on page 73.

around the globe

You are holding the fi rst issue of Twentyfour7., our new customer magazine, and I hope it will prove to be enjoyable reading. You are probably already familiar with Marine News or Energy News, our earlier magazines. You may know Wattson, our magazine for investors. You know Wärtsilä well. We have a challenge!

With Twentyfour7. we will be communicating the wide scope and depth of Wärtsilä solutions i.e. what we stand for in terms of our products, our services and our values. It is our belief that regardless of which particular industrial segment they represent, our customers can learn from a broad-ranging review of technologies and applications. We are also certain that it is in our investors’ interest to understand the true extent of what we offer.

In Twentyfour7., the focus is on the Wärtsilä brand and what it stands for. In our vocabulary, the brand is really the people, those 12,000 Wärtsilä employees who passionately take care of your ship power and power plant solutions. We want you to learn more about us.

Enjoy!

Ole JohanssonPresident & CEO Wärtsilä Corporation

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More about usDEAR READER

A DAY IN A MOBILE DAYCARE CENTRE

MOBILE CRÉCHES (daycare centres) play

an important role in the lives of children

of migrant workers all over India. Children

aged up to 12 receive healthcare, nutrition

and non-formal education. The fi rst créche

was set up in 1969 and there are now more

than 450 centres. In total, the centres have

reached 600,000 children.Mothers bring their children in the

morning at 9 am. Babies of less than two

years are fed a mixture of cereal and milk.

Children aged 3-5 play before they gather

together for story time. Children aged six or

more receive non-formal education if they

are temporarily resident in the area. If their

parents fi nd permanent work, some children

will attend local schools.For lunch the children have a nutritious

meal of khichdi (boiled cereals and pulses).

After lunch, the little ones take a nap.

This gives the staff time to meet and make

notes about topics such as reminding

mothers about doctor’s visits and planning

IN INDIA, WÄRTSILÄ IS BUILDING RELATIONSHIPS WITH NON-

GOVERNMENTAL ORGANIZATIONS DOING SOCIAL WORK AT GRASSROOT

LEVEL. THREE EXAMPLES OF ACTIVITIES BEING SUPPORTED FOLLOW.

information sessions – highlighting the

dangers of waterborne disease, for example.

Before mothers come to collect their

offspring at around 4 pm, the children are

given a simple snack of channa (roasted

chickpeas). The mobile créche is then closed

after another busy day.Wärtsilä is supporting integrated daycare

in mobile crèches in the town of Gurgaon

in northern India.

SCHOOLING FOR STREET CHILDREN

ALREADY IN ITS THIRD decade, the Reach

Education Action Programme (REAP) works

to assist tribal children with their schooling.

As well as supporting children from this

group, it serves as an awareness programme

for city children of school age.It was in 1987 that REAP turned its

attention towards street children. The fi rst

school to cater for them was established

in 1988 in South Mumbai. Since 1992,

REAP has expanded its activities and the

programme now covers both Mumbai city

and its suburbs. Helping children who

have migrated to the city and live in the

streets and slums, the programme is open

to all irrespective of caste, creed or religion.

Currently, there are 300 “pavement schools”

in Mumbai and more than 7000 children are

receiving education.Wärtsilä has adopted 16 of the balwadi

schools (intended for children aged 3-5) run

by REAP in Mumbai. It has been decided

that a further 16 balwadi schools in and

around Govandi will be adopted.

MEDICAL SUPPORT FOR THOSE IN NEED

KHOPOLI IS AN INDUSTRIAL township

located within a circle of undulating hills

near Mumbai. Wärtsilä has opened a medical

facility at its factory in Khopoli, which

also meets the needs of the economically-

disadvantaged people who live in the

surrounding hills. Run by Dr. D.K. Joshi,

the clinic caters to more than 300 outpatients

each month. Medicines used in the centre

are funded by Wärtsilä and are dispensed to

all in need. The response to the clinic has

been overwhelming.In May 2005, a clinic providing medical

services was set up at the school in Vavoshi,

a nearby village with a population of some

1500. Twice a week, the clinic offers both

check-ups and medicines free of charge.

Wärtsilä plans to expand its support

in these locations by caring for patients

suffering from eye ailments.

TEXT: LYDIA D´SA, COMMUNICATIONS MANAGER, WÄRTSILÄ IN INDIA PHOTOS: WÄRTSILÄ INDIA - CORPORATE SOCIAL RESPONSIBILITY

Wärtsilä Quarterly Magazine

SOCIAL WORK IN INDIA

[CORPORATE CITIZENSHIP]

NUTRITIOUS MEALS ARE AN IMPORTANT

ELEMENT IN MOBILE DAYCARE.

CHILDREN AGED SIX OR MORE RECEIVE NON-FORMAL EDUCATION.



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FOURTEEN DAYS ON THE EDGE TEXT: ARTTURI KRÖGER PHOTOS: NICO BACKSTRÖM

The North Sea, the most important oil drilling region in Europe, is a

harsh worksite. Violent storms and repeated

helicopter journeys between the mainland and anchored drilling

platforms test the skills of offshore professionals.

A generous salary and a gourmet-standard staff

restaurant help ease the tough workload.


p

reportage



The orange survival suits they are wearing are made of thick rubber, as required by safety legislation.

Relaxing guitar music is being played through the headphones, but the sound is drowned out by the constant hum of the rotors. Two men are reading newspapers, the others are sleeping.

NEW FINDS AT AN OLD DEPOSIT. After about an hour of vibrating fl ight, two ships become visible on the horizon, one large and one small. The drilling platform towers out of the sea.

The larger ship is the 214-metre Petrojarl Varg, designed for oil processing and interim storage. The small but sturdy Norman Ranger ploughs through the water around it 24 hours a day. It’s there to rescue members of the Petrojarl Varg’s crew if they need to be evacuated, as rescue teams from the mainland could never reach the ship in time.

As the helicopter begins its landing approach, its passengers pull up the hoods of their survival suits.

Petrojarl Varg operates in the middle of the North Sea, a notorious location for storms. This vessel, designed by a British company and built in Singapore, is the fl agship of Petroleum Geo-Services ASA (PGS), a Norwegian company that specialises in oil exploration and production. It has been producing oil at the Varg fi eld since 1998.

THE HELICOPTER RISES gently and tilts forward like a dragonfl y. The rain-drenched asphalt shrinks away as we ascend. The pilot straightens out into horizontal fl ight and heads out from Stavanger in southwest Norway towards the open sea. Six men are riding in this Super Puma helicopter. According to the ILO, the UN’s labour organisation, their workplace in the oil and gas fi elds is the most dangerous job in the world.Occupational safety legislation in Norway has been framed to meet these risks, so serious accidents are rare. These oilmen have said goodbye to their families for the next two weeks, which will be followed by another four weeks vacation.

The twin-engined Super Puma helicopter is very reliable

and a standard in offshore transportation, but many workers fi nd the vibration

during fl ights pretty stressful. Some have eventually decided

to fi nd shore-based jobs.

p


This deposit was declared exhausted at the beginning of the new millennium and its pumping rights were available for almost nothing. PGS purchased the majority of them and started three-dimensional seismic measurements.

Several oil pockets previously inaccessible to drilling were found in the Varg fi eld. Double the amount of oil estimated was discovered, and was then accessed using new horizontal drilling technology.

Many experts have designated the North Sea a twilight zone in terms of oil drilling. They may have to reassess their opinion. The greatest efforts in oil exploration are now however focused elsewhere, in Arctic areas and in the South Atlantic. The seabed off the coast of Brazil has been studied to a depth of 1,860 metres, with promising results.

The helicopter curves towards the helicopter pad, where a man dressed in a bright orange coat and white helmet guides its descent. After its wheels touch the deck, the helicopter settles.

Passengers quickly exit onto the windy deck and make their way inside. The changeover is carried out quickly, and the employees going

on vacation hurry into the helicopter.

IT’S A MAN’S WORLD. Petroljarl Varg is defi nitely a world of men. The 40-person crew mainly consists of engineers, chemists, technicians, mechanics, electricians and deckhands.

Petrojarl Varg is a double-hulled vessel with a capacity of 75,000 cubic metres, equivalent to 470,000 barrels of oil. At early-2006 prices for sweet Brent crude oil from the North Sea, the value of her cargo is well over USD 28 million.

“The unmanned drilling platform pumps oil to the vessel from sediment layers located two and a half kilometres below the seabed,” says Chief Engineer Jan-Erik Tenfjord. “Every two weeks a tanker comes from the mainland to empty the vessel’s tanks.”

The ship only has one maritime professional onboard. This is a sensible solution as it does not move anywhere but is held in place by ten massive anchors.

If necessary, the vessel is turned several times a day to minimize the effect of wind and currents on the pumping process. Control from the bridge ensures that the 360-degree rotatable turret engines move the ship in the desired manner.

Petrojarl Varg is sitting on 84 metres

reportage

“A GENEROUS SALARY AND PLENTY OF TIME OFF, THE STANDARD OF LIVING ON BOARD ALSO HELPS COMPENSATEFOR THE EXTREME CONDITIONS.”

p


This labyrinth of pipes separates the oil, gas and sea

water. The danger of an explosion means that every

possible precaution is taken. Small but sturdy, the safety

vessel Norman Ranger patrols the water around Petrojarl Varg 24/7, on standby for

a possible evacuation.

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reportage

There are two twelve-hour shifts. While engineers and

chemists control the process from warm locations inside

the ship, workers on deck must face everything the

cruel sea has to offer.

1.


TIMELINE OF DAILY ROUTINES

1. Coffee break: 9.15-9.30 am

2. Petrojarl Varg’s cuisine would make many onshore restaurants green with envy.

3. The vessel’s offi cers gather for the daily assessment meeting at 5.30 pm.

4. The supply boat brings fresh foodstuffs once or twice a week – weather permitting.

5. ”Take care when working out!” Reminders about the risk of possible injury are everywhere, even in off-duty activities.

6. The ship’s crew has formed clubs for a whole variety of hobbies including fl y-fi shing, painting, music, fi lm...

2. 3. 4. 5. 6.


of water, a shallow point in the open sea which means that the waves here can be very large. Despite the North Sea’s rough character, oil has been extracted here since the early 1970s.

DEVIATIONS RECEIVE IMMEDIATE ATTENTION. Service Engineer Kjartan Olsen guides us down the steep, narrow metal stairs of his workplace. The noise coming from behind the fi re doors in the engine room is deafening.

The power generated by the massive marine gas/diesel engines equals that of 400 family cars, i.e. 33,750 kilowatts or 45,260 horsepower. Kjartan Olsen is a passionate engine man who has tended these machines for four years. The engines’ primary fuel is natural gas, a by-product of the oil drilling process.

“They’ve never disappointed us,” shouts Olsen in an effort to be heard through the ear protectors we’re wearing. He pours some lubricant into the machine.

The engine room is tidy and everything is where it should be. The standard pin-up calendar is missing.

Kjarten Olsen grabs a rag and starts wiping the side of the engine with a fi rm hand.

“We always leave everything in tip-top shape when the shift changes.”

Life on this vessel is dictated by routine, and the work is handled around the clock in two shifts. On the bridge, the shift changes at 7 am, where all important issues from meeting production targets to possible dangers on deck are discussed. The vessel’s offi cers meet each evening at 5.30 pm.

This morning things were a little less humorous than usual. Members of the night shift explained that something was wrong with the process: a few tenths of millilitres more oil than normal was dripping into the water.

All deviations are recorded and dealt with promptly.

LOBSTER SOUP, MASSAGE AND MOVIES. In addition to a generous salary and plenty of time off, the standard of living on board also helps compensate for the extreme conditions. The tiny cabins on the vessel are austere but functional. The most important feature is a good bed, in which crew members can sleep soundly before their next shift.

The ship’s kitchen is a long way from austere. The menu includes delicacies such as fi let steak and lobster soup. As the work is so physically demanding, good food is essential, and luxury hasn’t been overlooked. The dessert table offers fi ve different kinds of ice cream, a similar number of cakes and puddings, whipped cream, berries and fruit – to say nothing of the remarkable selection of chocolates on the coffee table.

The only thing that’s missing is cognac to go with the coffee – and that’s only available on the mainland. This ship is completely alcohol-free. There is a wild rumour that a glass of wine might have been served with Christmas dinner.

“Gaining weight is a more serious health problem here,” says Olsen, patting his generous waistline.

The crew can exercise in the vessel’s weight room, and are

encouraged to do so. Every ten-minute session of exercise earns the employee a stamp, and these can be collected and exchanged for a gift certifi cate.

As well as working out, the crew can surf the Internet or watch movies on the big screen in the onboard cinema.

There are plenty of leisure time activities on board. Kayaks, knives, fl y-fi shing lures and oil paintings bursting with Rubens-like female fi gures emerge from the workshop on the lower deck. The crew of this production vessel can even put its own band together.

HIGH WAVES ARE A TESTING EXPERIENCE. Snow is fl ying in the early morning darkness. The temperature has dropped close to zero, and a chill that landlubbers cannot comprehend cuts through to the bone. Floodlights turn the snowy deck yellow as the dark-blue sea gently surges.

A cargo vessel nuzzles up to the Petrojarl Varg bringing diesel fuel, food and drinking water from the mainland. On its return trip it takes a few containers of machine parts, dishes and carefully-sorted waste.

Loading is a tricky business. If the container hanging from the Petrojarl Varg’s crane were to strike any part of the cargo ship, the results could be disastrous.

THE ONLYthing that’s missing is

cognac to go with the co ee

– and that’s only available on

the mainland. This ship is completely

alcohol-free.

reportage


Waves of 20 metres are a regular feature of the North Sea, and they sometimes reach 30 metres. The really bad weather is legendary.

“The wind speed was about 40 metres per second when the wave hit. Those panes of glass up there just shattered,” says Chief Engineer Jan-Erik Tenfjord, pointing at a row of windows near the ship’s bow. The windows are some 20 metres above the ship’s waterline.

“Water poured in and took everything from the cabin corridor along with it, including the television.”

FISHING IN THE BACKYARD. Fortunately, there are also quieter days.

“On really beautiful summer evenings we set up a barbecue on deck seven and enjoy our time off in t-shirts,” says Olsen.

“If the sea is really calm and the captain gives permission, we lower one of the lifeboats and go fi shing!”

Many different fi sh inhabit the waters around the ships. A surprisingly-large number of species from coral to dolphins have been found on the fl oor of the North Sea as a result of oil exploration activity. Underwater

microphones dating back to the days of the cold war have also recorded lively communication between whales.

Oil companies that use high-powered echo sounders for exploration are regulated by legislation designed to protect life in the world’s oceans. If they don’t observe such regulations, the powerful signals from these devices can be very harmful to ocean mammals.

When it’s time to change crews the men who are leaving are as excited as children on Christmas Eve. Many of them still have a long trip home after the helicopter has taken them to Stavanger.

Members of the Petrojarl Varg’s crew live in places such as Spain, Thailand and the Philippines. But when you have a break of four weeks, there’s plenty of time for a trip home that may last half a day.

For years, experts have predicted that oil will run out in the next few decades. New exploration technologies mean that offshore workers may well be kept busy for much longer.

If oil drilling expands to Arctic regions, Jan-Erik Tenfjord, Kjartan Olsen and other professionals will have to don an extra pair of longjohns beneath their orange overalls!

A world of its own surrounded by hundreds of miles of sea, jobs on Petrojarl Varg are in high demand. Hundreds of applications are usually received for each vacancy.


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TEXT: DAITHI O’HANLUAN PHOTOS: FENNOPRESS/PHOTONICA, SKOY, WÄRTSILÄ ARCHIVE.

In 2001, the UK’s Custom and Excise formed a special unit in Wales. The objective was to track down and penalise any drivers using biofuels, such as vegetable oil, to run their diesel engines. Sniffi ng out unusually-fragrant exhaust fumes, highway patrols have collared several dozen offenders who are saving more than 40 pence a litre by diverting oil from the kitchen cupboard to their diesel engines.

In South Wales, an ASDA supermarket in Llanelli has slapped a ration on sales of cooking oil after astonished internal auditors found that it was selling far more than any other outlet in the country. The Customs and Excise unit quickly acquired a nickname: ”The Frying Squad”, and while this is a good refl ection of British humour, it’s even better as a refl ection of the rapidly- changing landscape in fuel supply and regulatory control.

The world’s known oil resources have traditionally been considered suffi cient to cover consumption for approximately 40 years. Recent trends, however, indicate that it is becoming diffi cult to fi nd new oil sources that will cover the massive current increase in oil consumption. At the same time, locations in which oil can be found are increasingly diffi cult to access.

Recent rises and fl uctuations in oil prices, although mainly infl uenced by global politics and a lack of refi nery capacity, have clearly highlighted p

feature

Since the technology already exists, moving from fossil fuels to biofuels is not diffi cult. Fuel availability is the primary concern.

FUEL fl exibility is

CRUCIAL


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Casa Olearia Italiana, an olive oil company located in Italy, now produces electricity for the country’s national grid using liquid biofuel. Wärtsilä has installed three Wärtsilä 18V32 units with a total output of 24MWe. “Small biofuel units are a very viable option for Europe,” says Niklas Haga Senior Development Engineer, Power Plant Technology, “Our experience with liquid biofuel engines is encouraging. In several European countries, the use of biofuel receives credits which make a biofuel operation viable and ensure profi tability. Companies moving in this direction will see a return on their investment in a very short time.”

According to Ari Suominen, General Manager, Environment, Power Plant Technology, combining the highly-effi cient diesel combustion process with clean liquid biofuel ensures low emissions of CO2, CO, particles and hydrocarbons without secondary-emission control systems. “The power generation facility in Casa Olearia Italiana also uses a selective catalytic reduction (SCR) system to achieve a 90% reduction in NOx emissions. From an environmental viewpoint, it’s a very sound proposition.”

Batamindo Industrial Park in Indonesia is a classic example of fuel fl exibility. Four Wärtsilä 18V32 engines were installed in 1993 and another 15 have subsequently been added. After the Sumatra–Singapore pipeline came into operation, natural gas became available on the island of Batam and Batamindo sought to access this new supply of fuel in the most cost-effective way. Wärtsilä has therefore started to convert 12 of the park’s engines from heavy fuel oil to natural gas.

A classic example of fuel fl exibility

the vulnerability of an oil-dependent society. This has led to a situation where alternative fuel solutions, such as emulsifi ed fuels, natural gas and liquid biofuels, are increasing in importance. At the same time, efforts to slow or at least mitigate climate change means that regulations governing emissions multiply.

Companies are thus seeking to maximise energy effi ciency, minimise overall emissions and secure the future of their plant investments. In short, they are looking for fl exibility. Flexibility in the fuels they are using, in the emissions they create, and room for manoeuvre in the face of an uncertain and rapidly-changing energy landscape, both in terms of supply and regulation. There have already been some interesting developments.

In the oil and gas industry, for example, operators increasingly want to use associated gas to power their installations. Associated gas was previously a waste product on oil rigs, burnt off by fl aring. There are now power plants that use this associated gas to supply operational energy to rigs and oilfi elds. This increases the effi ciency and economy of each rig and reduces emissions.

Similarly, in the Liquifi ed Natural Gas (LNG) shipping sector, operators and shipowners are replacing steam boiler-driven turbines with LNG dual-fuel, electricity-generating power plants, a choice which results in a massive increase in the effi ciency and fl exibility of their plant. Flexibility is the key.

“In the 1990s, medium-speed diesel engines usually used heavy fuel oil (HFO) for power generation applications. Diesel engines, with their high simple-cycle effi ciency, were the ideal solution for utilising HFO, a byproduct of the oil-refi nery process,” says Vesa Riihimäki, Vice President, Power Plant Technology in Wärtsilä’s Power Plants business. “But in recent years we have seen a rapid and specifi c increase in applications employing natural gas. We can utilize our long experience in building lean-burn reciprocating gas engines and offer our customers state-of-the-art solutions.”

Fuel comes from a range of sources. Not only are there the various grades, such as natural gas, light fuel oil and different grades of heavy fuel oil, the number of alternatives is increasing. “Lurking just over the horizon are biofuels, a very interesting new market,” says Riihimäki. Biofuels are typically vegetable oils produced from soy beans, rapeseed and palm oil, among other sources.

“Palm oil is one of the best. Currently, the largest sources of palm oil are in Malaysia and Indonesia, but I’m just waiting for the day that Brazil starts to produce liquid biofuel in large quantities for export,” says Riihimäki. “The availability of a fuel is the key. Once security of supply is guaranteed, the market will begin to take off.”

“The great advantage of palm oil is that it is carbon neutral,” he says. “CO2 is released to the atmosphere during the combustion process, but will be absorbed back as the oil palms grow, hence the CO2 will be recycled. As palm oil fuel is used, new crops will use the CO2 that results from its combustion.”

More importantly, this evolution from fossil fuel to biofuel is relatively easy to negotiate, as the UK’s “Frying Squad” p


Liquifi ed Natural Gas (LNG) carriers represent a huge opportunity for dual-fuel (DF) engines and have become popular with shipowners and operators for their effi ciency, fl exibility and low environmental impact.

“Currently there are four dual-fuel-electric LNG carriers u nder construction and another eighteen on order,” says Barend Thijssen, Sales Director, Wärtsilä Ship Power Solutions. “The demand for LNG shipping capacity is expected to double in the next ten years, so this is a growth market.”

Traditionally, gas evaporating from a vessel’s LNG tanks is fed to boilers that drive a steam turbine. “It’s ineffi cient, and the gas coming from the LNG tanks is not suffi cient. Substantial amounts of heavy fuel oil (HFO) have to be used to supplement the gas,” says Thijssen. Switching from steam boilers and turbines to DF engines improves plant effi ciency from 29% to approximately 43%.

Using less additional fuel, either the costly and relatively clean marine diesel oil (MDO) or the cheaper but less clean HFO, yields lower operating costs and lower emissions. As the ship has to carry less additional fuel, more cargo space is available, and the overall effi ciency of the operation is higher.

Currently, Wärtsilä is the only company able to supply dual-fuel engines that are large enough to power LNG carriers. “We are a leading player in this growing market, but that fact hasn’t gone unnoticed by our competitors,” says Thijssen.

LNG carriers are a natural market for dual-fuel engines, where they are becoming the engine of choice. But owners and operators of fl oating oil- and gas-production installations are also interested. As regulatory control over a range of emissions such as nitrogen oxides (NOX), sulphur oxides (SOX) and carbon dioxide (CO2) increase, LNG will certainly enjoy increased popularity as a marine fuel in many more applications.

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discovered. “The technology to run on liquid biofuel exists, and conversion from using HFO to liquid biofuel is relatively straightforward. The primary concern is securing availability of the fuel. Today, liquid biofuels are expensive, but we can see that in certain regulatory environments, they are a clear winner,” says Riihimäki.

Even for those fi rms that commit to one form of energy supply, HFO for example, it’s not diffi cult to switch to another type of supply, for example liquid biofuel. According to Riihimäki, the conclusion is clear: “Businesses need fuel fl exibility, the ability to switch quickly from one source to another, to ensure the security of their supply, to protect the integrity of their investment, and also to adapt to the changing regulatory environment.”

That said, the regulatory environment is currently skewed, since it looks at the concentration of individual emissions that result from combusting a fuel, such as nitrogen oxides (NOX),sulphuric oxides (SOX) and carbon dioxide (CO2), instead of looking at the impact of the fuel as a whole.

“It’s a well known fact that reciprocating diesel engines have very high simple-cycle effi ciency, which results in low greenhouse-gas emissions. At the same time, the high combustion temperatures create NOX emissions” says Riihimäki. “We feel that regulators should look at technologies as a whole. Different technologies have different characteristics, and the emission limits set should therefore recognize the characteristic benefi ts as well as the drawbacks. Having said that, we recognize the need to improve the technology. We are constantly working on improving effi ciency and reducing emissions”.

And this isn’t the only issue that regulators have to face. According to Ari Suominen, General Manager, Environment, Power Plant Technology, emissions control is a balancing act involving the best available technology, cost, effi ciency and impact. “A new technology may reduce emissions, but lowering emissions means that costs rise,” he says. This is an issue regulators need to recognize. Business leaders, meanwhile, need to look at all the options – and keep them open.


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PROJECTED ELECTRICITY GROWTHForecasts indicate that gross generation of electricity in Australia will increase at an annual average rate of 2.1% from 237 TWh in 2004 to 409 TWh by 2030. Mandatory renewable energy targets, compulsory gas schemes, and greenhouse-gas emission benchmarking are all being modelled in electricity growth forecasts.

In projections of energy consumption, one of the most important drivers is growth in economic activity. Over the medium term (2005-2010), it is assumed that GDP will grow at an annual rate of 3.1%. The expected growth in key energy-intensive industries is also a critical element in these forecasts. Strong growth in both the iron and steel and basic nonferrous metals sectors is expected over the medium term.

ELECTRICITY GENERATION BY FUELIn terms of the fuels used, we anticipate that growth in electricity production will be led by natural gas, followed by renewables and black

coal. Growth in the use of brown coal and diesel will be lower.

Abundant reserves of natural gas in our region have resulted in several state governments

mandating the usage of gas for electricity generation. Queensland is in the lead, demanding that 13% of electricity be generated by natural gas within the next decade.

FUTURE BUSINESSState utilities have suffered from electricity shortages, recent droughts have taken their toll, and summer seasons have caused numerous blackouts in all Australian states.

The IPP market is buoyant as a result of the “semi-privatisation” of utilities and federal government “sweeteners” such as renewable energy certifi cates and carbon credits. Gas projects are prolifi c, with natural gas, LNG, CNG, LPG, landfi ll and biogas all making inroads. Mining is buoyant with greenfi eld and the extension of existing projects offering potential. In this sector, gas is becoming the fuel of choice.

LESSONS FROM RECENT BLACKOUTSThe recent blackouts have shown that while electricity reform creates more dynamic system operating conditions, rules and operating practices have changed to only a minor extent, and a comprehensive, integrated policy response is therefore required to avoid blackouts reaching unacceptable levels.

This augurs well for Wärtsilä’s large and effi cient natural-gas-powered intermediate and baseload plants.

IN CLOSINGFor many years Wärtsilä has been promoting the benefi ts of medium-speed gas engines in the Australian market. High effi ciency in high ambient temperatures, minimal water usage in the world’s most arid continent, and the availability of multiple plant confi gurations all mean an exciting future for the Wärtsilä 34 gas range.

The increace in fuel prices means that customers are looking more closely at effi ciencies. The excellent effi ciency of Wärtsilä’s products gives the company a strengthening competitive edge while oil prices are high.

AUTHOR IS BUSINESS DEVELOPMENT MANAGER, WÄRTSILÄ IN AUSTRALIA

Wärtsilä Australia is responsible for power plant sales and marketing in Australia, Papua New Guinea, New Zealand, Fiji and some Pacifi c Islands. Currently, the installed power plant base totals almost 300 MW with sizes in the range 2-80 MW and fuels consisting of diesel, heavy fuel oil, and natural gas.

GAS-FIRED ELECTRICITY GENERATION BY STATE

Generation 2003- 2009- 2019- 2029- 2004 2010 2020 2030 TWh TWh TWh TWh

New South Wales 2.2 2.9 4.7 7.2Victoria 2.4 3.2 5.2 8.4Queens Land 3.5 7.4 12.1 22.2Western Australia 14.9 18.1 22.5 33.7South Australia 8.0 8.5 9.9 11.7Tasmania 0.7 0.7 0.9 1.1Northern Territory 2.1 2.8 3.7 4.7

Total 33.8 43.6 61.5 89.1

AVERAGE ANNUAL GROWTH:2004-2011 4.4% 2004-2030 3.8%

The Australian electricity market

&BUSINESS WORLD

TEXT: RAY VINTON


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2005 was a wild year. Wärtsilä shares rose by 58 per cent, on top of which total dividend yield amounted to more than four per cent. Activity in the global shipbuilding market was robust while high fuel prices also kept investment activity lively in the power sector. Wärtsilä’s net sales and profi tability continued to improve, with earnings growth no longer being solely a result of reduced costs. Currently, strong demand in end markets is driving growth.

Wärtsilä caters for the world’s growing power needsWorld electricity demand is growing. Increasing prosperity, globalization and population growth create a steady two per cent annual growth in use of electricity around the world. Most of this growth comes from emerging economies of Asia, Middle East, Africa and Latin America, where rising standards of living create urgent needs for new generating capacity to run factories and newly-purchased home appliances for air-conditioning, cooking, heating, and refrigeration equipment. As infrastructures are under-developed, large coal or nuclear power plants cannot be added without major grid investments. Engines therefore often turn out to be the preferred technology for power generation in emerging economies. The competitiveness of Wärtsilä’s diesel engines in power generation also comes from the rapid delivery, even to the most remote sites.

In the industrialized nations, the deregulation of power markets has driven investment in smaller-sized power plants with shorter pay-back times. Also, oil-fi red plants are increasingly being replaced by natural gas-fi red plants which have become more competitive with the start of emission trading in the EU. The environmental benefi ts and effi ciency of natural gas are expected to make it a favoured choice for new electricity generation capacity in coming decades. Wärtsilä has recently experienced signifi cant growth in gas power plant orders and these currently represent close to half of Power Plants’ total order intake.

Decentralized power production is often the most sensible solution, which is why the market potential for Wärtsilä will continue to exist for years to come.

Global mix of vessel orders lifts demand for Wärtsilä’s medium-speed enginesThe shipbuilding industry enjoyed another strong year in 2005. After three record years for new vessel orders, shipyards will be the busiest they have ever been. As shipyards are currently running at full capacity and have long delivery dates, some reduction in vessel orders is natural. Last summer appears to have marked a peak in new orders for tankers and bulkers, whereas project activity remains robust in sectors important to Wärtsilä: cruise ships, RORO vessels, LNG carriers and offshore applications, driven by the booming cruise and energy markets. A re-orientation of orders away from the bulk shipping market towards the container and specialized sectors means that Wärtsilä is a clear benefi ciary of the current trends in end markets. Also, lack of capacity in Asia has shifted orders to European shipyards, particularly those for small and specialized vessels. One result is that Wärtsilä has gathered a strong backlog of orders, with deliveries extending through to 2008 and beyond.

Service sales provide a cushion for cyclical ups and downsEngine sales in the Ship Power and Power Plants markets are highly cyclical, and the exact timing of peaks and troughs is really anybody’s guess. On the other hand, Wärtsilä’s increasing share in Service sales provides a cushion against these cyclical ups and downs. Compared to just 30 per cent fi ve years ago, service business now accounts for more than 40 per cent of total sales by the Group’s Power Businesses.

A U T H O R : K A I S A O J A I N M A A , E Q U I T Y A N A LY S T, S E B E N S K I L D A

Could the ride be wilder than 2005?

In the industrialized

nations, the deregulation of power markets

has driven investment in smaller-sized power plants

with shorter pay-back

times.

2002 2010 2015 2020 2025

Fuel shares in world electricity generation, 2002-2025

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Kaisa Ojainmaa is equity analyst at SEB Enskilda in Helsinki.

THE OPINIONS AND VIEWS STATED IN THIS ARTICLE ARE INDEPENDENT OF WÄRTSILÄ. WÄRTSILÄ DOES NOT TAKE RESPONSIBILITY FOR THE VIEWS IN THIS ARTICLE.


2005 was our best year ever in many respects. Net sales by the Group’s Power Businesses climbed to EUR 2,520.3 million (2,224.7 million), an increase of 13.3% compared to 2004. Operating income in Power Businesses totalled EUR 202.5 million and, as planned, reached the profi tability target (EBITA) of 8.0%. Order book at the end of the year was at record level: EUR 2,905.7 million, up by 56.6% compared to 2004.

Ship Power – success in many sectors2005 was an outstanding year for our Ship Power business. The number of orders received was a record and totalled EUR 1,545.3 million, 84.7% up on 2004. Net sales increased to EUR 710.3 million (631.2 million), an increase of 12.5%. Growth in our LNG-carrier segment continued, and major orders included 24 Wärtsilä 50DF engines for AP Møller-Mærsk A/S and Kawasaki Kisen Kaisha carriers. The offshore sector was active throughout the year and we received several signifi cant orders for equipment to be installed on oil platforms and support vessels. Sales of total Ship Power solutions rose strongly during the year. A good example was the order for 32 engines and 16 thrusters from the Danish company AP Møller-Mærsk A/S for an oil-drilling platform.

Services – growth through acquisitionsStrong growth continued in the Group’s Services business. Net sales were 16.7% higher than in the previous year at EUR 1,093.1 million. We acquired the German company DEUTZ AG’s installed base of engines (totalling 12,500 MW), and thus became the worldwide supplier of original spare parts and services – including technical support – for DEUTZ medium-speed marine engines. We also signed our fi rst Global Maintenance & Support Customer Agreement for ocean-going vessels with Reederei Blue Star GmbH in Hamburg, Germany. This agreement covers a substantial part of the maintenance and operational support for a number of ships in the Blue Star fl eet and is an excellent match for the specifi c requirements of vessels that trade globally in a liner service.

Power Plants – a stronger foothold in gas power plant marketsOrder intake for our Power Plants business was high during 2005 and particularly good in the second half of the year. During the fourth quarter, order intake totalled EUR 346.6 million,

A record-breaking yearA U T H O R : J O S É P H I N E R A M S AY, I R M A N A G E R

an increase of 63.7% on the same period in 2004. New orders received during 2005 totalled EUR 865.2 million (1,019.5 million). In 2004, Wärtsilä received orders of exceptional size from Iraq. We further strengthened our position as a signifi cant supplier of gas power plants during the year, a good example being the order for fi ve power plants received from Azerbaijan.

Good growth outlook going forwardDemand in the ship power and energy markets looks likely to remain favourable for Wärtsilä for at least the fi rst half of the current year. Based on the strong order book, Wärtsilä’s net sales are expected to grow this year by as much as 20%. The profi tability level of 8% reached in 2005 will remain. Net sales are expected to show further growth in 2007.


Key Ratios FAS IFRSEUR million 2004 2004 2005Net sales 2,478.2 2,478.2 2,638.8Ship Power 631.2 631.2 710.3Service 936.8 936.8 1,093.1Power Plants 651.9 651.9 710.3Imatra Steel 254.4 254.4 119.0Operational EBIT 132.0 112.0 224.3

Power Businesses 111.6 87.7 202.5Imatra Steel 20.4 24.3 21.8

Depreciation and writedowns1 -100.0 -77.5 -71.6Power Businesses -87.6 -65.3 -67.2Imatra Steel -12.4 -12.3 -4.4

Operating result 239.8 112.0 224.3Power Businesses 111.6 87.7 202.5Imatra Steel 20.4 24.3 21.8Capital gains 3 107.7 - -

Profi t before taxes 236.5 217.3 212.4Earnings per share, EUR 1.75 1.42 1.80Balance sheet total 2,326.7 2,397.3 2,868.6Interest-bearing liabilities, gross 319.5 320.0 403.6Cash and bank balances 168.5 169.6 119.6Operating result, % 9.7 4.5 8.5Operational EBIT, % 5.3 4.5 8.5

Power Businesses 5.0 3.9 8.0Imatra Steel 8.0 9.5 18.3

ROI, % 20.1 18.0 18.0Power Businesses 10.9 7.5 18.9Imatra Steel 16.8 7.7 46.0

Gearing 0.18 0.17 0.24Megawatts delivered, Power Businesses4 6,011 6,011 7,061Order book, end of period, Power Businesses 1,855.3 1,855.3 2,905.7Order intake, Power Businesses 2,791.4 2,791.4 3,491.1Long-term service agreements, MW 9,609 9,609 9,617Operation and maintenance agreements, MW 2,569 2,569 2,625Personnel, end of period 12,475 12,475 12,008Year end market capitalization 1,441 1,441 2,3491 2004 does not include writedowns included in restructuring. 2 Excluding non-recurring costs. 3 Capital gains are entered below operating income as required by IFRS. 4Including licence-built.

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America’s growing need


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Few people would associate country

singer Willie Nelson with energy

production, but that’s exactly what he is doing. Nelson,

72, has birthed his own brand of alternative fuel, BioWillie, which

he hopes will help American farmers

– BioWillie biodiesel can be made from a

number of crops – and thus reduce the need for foreign oil.

While BioWillie may never become popular, it’s just one of the recent suggestions for solving the problem of the growing American demand for energy.

The US was able to keep the production and consumption of energy in balance until the 1950s, but over the years, energy use has outpaced domestic production. In 2004, about 29% of total US energy consumption consisted of imported energy – and that share is expected to grow. The country’s energy consumption is estimated to increase at an average rate of more than one per cent per year, and domestic production is likely to have a hard time keeping up, the US Department of Energy says.

One of the biggest challenges in meeting the growing demand is the ever increasing disconnection between what Americans want – affordable and environmentally-friendly energy – and how they want to get it, says Jim Owen,Director of Media Relations at the Edison Electric Institute. In order to provide more energy, power companies need to build new plants and lines, but many people don’t like this.

“At the same time as the public’s environmental concerns are understandably becoming more dominant, we need new sources of energy because the population is growing and we are consuming more energy,” he says. “No one wants to live next to a power plant, but somehow everyone expects to get affordable energy.”

Although US energy production takes many forms, fossil fuels exceed all other sources, accounting for 80% of total energy production. Coal is the most important, making up 32% of total energy production, followed by natural gas (28%) and oil (20%). Nuclear power, which constitutes about 12%, and renewable energy sources (9%) such as biomass, hydropower, geothermal energy, wind and solar energy make up the rest. p


TEXT: SOLJA NYGÅRD PHOTO: PETER TURNLEY/CORBIS/SKOY

WILLIE NELSON STORY IN BRIEF

Born in 1933 in Abbot, Texas. Given his fi rst guitar at the age of six, played his fi rst gig when he was 10. Sold his fi rst song “No Place For Me” at the age of 23. Spent ten years writing songs in Nashville then moved back to Texas. Produced a string of great albums during the 70s, 80s and 90s. An American icon, he’s said to be talented, generous and have “a compassion which appears to be endless”.


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THE WAY IN WHICH THE US HANDLES ITS ENERGY BUSINESS MATTERS TO THE REST OF THE WORLD.

Coal may lead production, but Americans, who spend the equivalent of more than EUR 423,000 million each year on energy, consume more oil and gas than coal, nuclear power or renewable energy.

The country’s industrial and manufacturing sector uses about one-third of total energy consumption, while transportation uses some 27%, residential 22%, and commercial 18%.

The appetite for imported energy is driven by petroleum consumption – a fact that is hardly surprising to anyone who has driven on the interstates or even just looked at the map and noted the country’s true size. Since 1994, the US has imported more petroleum than it produces. Today, half of all the oil consumed is imported.

The use of natural gas has also outpaced production. Currently, Texas, Louisiana and Oklahoma account for more than half of all the natural gas produced in the US, but more than 15% of total consumption is made up by imports, which come in the main from Canada. Most of the natural gas is used for heating homes.

Energy supply and demand play a crucial role in national security as well as in economic output. The military and economic strength of the United States mean that the way in which the country handles its energy business also matters to the rest of the world.

To be able to supply residents, motorists, businesses and factories with suffi cient energy, the US can try to increase its own production from either existing or new sources. It could also choose to import more energy or try to clamp down on consumption – or do all three.

Some proposals for the fi rst alternative include opening up the Arctic National Wildlife Refuge in Alaska to oil drilling – an attempt the US Senate recently blocked – and trying to resolve barriers to building new nuclear power facilities after a hiatus of more than two decades.

A third suggestion is the federal government’s USD 1,200 million Hydrogen Fuel Initiative, which is intended to reduce the country’s growing dependence on foreign oil by developing technology for clean hydrogen production and hydrogen-powered fuel cells. The government believes that hydrogen technology has the potential to save 11 million barrels of oil per day – about the same amount as daily net oil imports.

Based on public comments by President George W. Bush, the current administration is interested in making the country less, not more, dependent on foreign sources of energy. Increasing imports does not appear to be high on the president’s agenda, even though that’s what may have to happen .

As far as consuming less energy goes, the administration mentions developing products that give consumers the same and even better performance at lower cost by using less energy. As well as making homes more energy effi cient, the administration wants to do the same for vehicles, and mentions hybrid cars, which are powered by a combination of gasoline and electricity, as an alternative already available to drivers.

People like Willie Nelson are not waiting to see when – and if – the new initiatives materialize, they say they want action now – even if it does mean driving a car that smells like peanuts.


Wärtsilä power plants ARE SHAPING THE US ENERGY LANDSCAPE

Wärtsilä is one of the benefi ciaries of deregulation in the US utility industry. The company’s Power Plants business sells dispersed generation power plants which can help large utility companies handle swings in energy demand. They can also provide municipal utilities and industrial customers with reliable and affordable energy systems.

Wärtsilä sells 50–250 MW decentralized power plants that use either natural gas or liquid fuel – in some cases both – to municipal utilities, industrial customers and large utility companies. A typical 200 MW plant costs USD 130–160 million and can operate for more than six or seven decades, says Frank Donnelly, Vice President, Power Plants, Wärtsilä North America, and adds that most plants are replaced not because they are worn out, but because new technology offers more effi cient solutions.

Power plants supplied by Wärtsilä are often called dispersed generation plants, shaping plants, or extended-peaking plants. Their characteristics include fast start-up times – less than ten minutes – and variable loading as well as good effi ciency, says Donnelly. They are used mainly for electricity generation, though some also produce heat.

According to Donnelly, municipal utilities such as the City of Rensselaer in Indiana buy Wärtsilä’s plants for two main reasons: reliability and cost. Many towns still purchase power from privately-held utility companies, but they also have the option to use their own plant. Sometimes it is cheaper for a municipal utility to generate its own power than to buy it.

The same applies to many industrial companies such as Canada-based Barrick Goldstrike Mines, which selected Wärtsilä to supply a gas power plant for its operations near Reno in Nevada (see “Lean-burn simple-cycle strikes Nevada gold” on page 51). Manufacturing, mining, and other industrial companies who have their own power plants can purchase power from a large utility company when it is cheap, and generate their own energy when prices are high.

Utility companies are also buying Wärtsilä’s plants. As they have to deal with demand that goes up and down like a rollercoaster, they use smaller, fast-starting plants to provide so-called ‘shaping’ power, says Donnelly.

When demand for energy suddenly rises – for example in the morning when the majority of the population are getting up – utility companies need extra muscle. The same applies when an energy source such as a wind turbine stops operating, or when one of the company’s plants breaks down.

“Our plants basically help large utility companies cope with swings in demand,” Donnelly says, adding that such plants are often classifi ed as ancillary services.

“If a utility company suddenly loses the output of a plant, it has to replace that capacity quickly or the whole system can come down.”

Before deregulation, which started some 14 years ago, large utility companies didn’t have to worry very much about swings in demand. They had plenty of excess power-generation capacity and brought it on line when they needed to – and charged their customers for it. Now that plants operate in a competitive market,

no one wants to have excessive capacity because doing so is expensive.

“Our plants can help their systems when they need help,” says Donnelly, who has worked for Wärtsilä for 18 years. “They could be considered a product of deregulation.”

Generating peaking power and ancillary services by using the plants that Wärtsilä supplies is signifi cantly less expensive than having a large coal-fi red installation that is not fully employed. According to Jussi Heikkinen, Marketing Director in Wärtsilä’s Power Plants business, the company’s products are also more economical than the competition.

Although Wärtsilä has been successful in the US, it faces some challenges, says Heikkinen. Major competitors in the US are domestic gas turbines, and Americans are not necessarily familiar with Wärtsilä technology. Most of the competing gas turbines have been developed from aircraft turbines, while Wärtsilä technology is based on reciprocating engines, says Heikkinen.

“Seeing is believing, though,” he says. “We have had people visit Colorado or Nevada, for example, to look at our power plants, and when they come back, they admit to being pretty impressed.”


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MANY PEOPLE ARE NOT WAITING FOR THE US GOVERNMENT OR UTILITY COMPANIES TO ACT.

in-depth

consumers could be made on the basis of real-time pricing information. This initiative is now known as the “Intelligrid,” and has an estimated implementation cost of USD 160,000 million over 20 years.

To guarantee improved electrical reliability, an Electric Power Reliability Organization is being established which will have statutory authority to enforce compliance with reliability standards by different market participants. More than 3100 electrical utilities operate in the US

The US Department of Energy’s Offi ce of Electricity Delivery & Energy Reliability (EDER) is also working on energy storage, transmission reliability, and electricity distribution transformation programs. One example of the energy storage program is a USD 25 million power plant in Mississippi that stores electricity generated during off-peak periods for use when the need for power increases. According to EDER, this plant can provide power for 7500 homes for at least ten hours.

While power outages have been making headlines in the past few years, the US Department of Energy also acknowledges that a prolonged interruption in the supply of basic energy – electrical, natural gas, or oil products – would have a devastating effect on the nation.

Many people are not waiting for the government or utility companies to act. Electricity generators, which can be purchased for as little as USD 350, are becoming more popular. ABI, a technology research fi rm, expects total generator sales in the US to rise from USD 5,300 million in 2003 to USD 6,900 million by 2011.

Almost everyone who lives in the northeastern United States and Canada is likely to remember where they were on 14 August 2003. That’s when a power blackout caused chaos at airports and on roads, resulted in essential appliances shutting down, and left millions of people without either lights or air conditioning.

The outage – North America’s largest-ever – affected some 50 million users in eight US states and Ontario, Canada, and cost businesses an estimated USD 13,000 million in lost production.

While some blackouts are diffi cult, if not impossible, to prevent – those caused by terrorists or natural disasters such as hurricanes – poor practice, the lack of an entity that oversees the whole of the North American electrical system, and continuing delays in improvements to transmission reliability have not helped.

After the 2003 outage, the Electric Power Research Institute, a non-profi t consortium of utility companies, issued a plan for upgrading regional power grids to make use of modern information technology. The central element of the plan is a “smart grid” that monitors itself and takes corrective action as and when required, reporting the occurrence of problems immediately.

Digital control of the power grid would result in an interactive power system that is merged with a communications network to provide the real-time exchange of information and power. Energy consumption decisions by businesses and


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“Intelligrid” to offer real-time pricing

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JARI VALO has been surrounded by model planes all his life. He

seems to have a magical touch. One of his earliest

memories is launching a plane that no-one else

could fl y. Now he’s reaching out for world

records.


HighAT THE AGE OF three, Jari Valo tagged along with his father to the local aviation club in Helsinki. All the men there were trying to fl y a small, free-fl ying model plane, but they just couldn’t. In the end, one of them gave the plane to the kid who took hold of it, gave it a neat little twist and then watched it fl y higher and higher above his head.

“I don’t know what happened, but for some weird reason, I managed to make it fl y,” says Jari. Forty-three years later, we’re in his home in a Helsinki suburb, about fi ve kilometres from that same club. “I have a very vivid memory of the whole event,” he says with a smile.

This three-bedroom apartment has a certain style. The vintage stereo, an antique clock, coffee-table books about cars, the art on the kitchen wall, all contribute to the feeling that nothing is here by chance. The room closest to the front door has wings, engines, paints, tools and rack upon rack of spare parts for the planes that hang on the walls and sit in drawers. He calls it “The Lab”. It’s the epicentre of Jari’s apartment. “I’m in there every day, doing something.”

Trimming the untrimmable. Valo’s career as an aeromodeller didn’t start at the age of three. It was his father’s hobby, not his. It wasn’t until his teens, when one of his friends started building planes – knowing very well that

on speed

Trimmed to the limit


TEXT: RISTO PAKARINEN PHOTOS: ARTO WIIKARI

Jari had access to some serious knowledge – that Jari took a shot at it. And it was a very serious shot. By 19, he was already one of the best in Europe. Today, he has twenty-plus – “21, 22, something like that” – Finnish championships under his belt, and corresponds with a vast network of air model experts around the world.

In the beginning, Jari got his hands on some Italian Rossi engines that were pretty famous at that time. They were in fact so good that according to some experts, there was no way to trim them. What you had was what you got. But the engine’s creators, brothers Ugo and Cesare Rossi, didn’t know Jari Valo. Improving the unimprovable was a challenge he couldn’t resist. Soon, the Rossi engine was spinning like never before.

“Once I succeeded in trimming their motors, there were no boundaries for me. I jumped into this hobby, and I went in deep,” he says. “It was all I did, and with hindsight it’s easy to see that it probably wasn’t good for my grades at school.” p

Parts from the sauna. As Valo now puts it, he had more energy than knowledge. Trial and error was his preferred method. As he wanted to be the best, he was ready to do whatever it took. And since it was the 1970s, and he didn’t have any huge sponsorship deals, he had to be smart.

“Once, I wanted to make wings out of Abachi wood (African maple). It just happens that sauna benches are made of Abachi. So I got hold of some and made wings out of them.”

One of the classes in which he competes is speed. In a competition, planes start on a starting dock, a rack with wheels that support the model before it takes off. The plane travels in circles around the pilot, fi rst on the ground, taking off when it has picked up suffi cient velocity.

The fi rst two rounds are for making sure that the plane is travelling on its own, and not being helped by the pilot yanking the control lines. The next ten rounds are timed. Winning speeds exceed 300 kilometres per hour.

“I built my fi rst speed plane when I was 16. A year or so later, I started experimenting with single-blade propellers, and I realized that my planes were just as fast with those with two-blade propellers. That gave me the potential to build more-effi cient planes and engines.”

Not everyone was happy with the young Finnish innovator. “Some people were saying that my planes were dangerous and that the engines would blow up. Well, they didn’t, and, single-blade propellers are now a standard in the competition,” says Jari. “I guess it was pretty tough for some of the others that this young fellow just left them in the dust.”

Backup from eastern Europe. Valo fi nished fourth in the European Championships in 1979. During the 80s and early 90s he wasn’t particularly active in competitions, but when the spark ignited and passion took over again it was serious. Gone was the lone ranger, and instead, he had an impressive international network of engine builders and other specialists, all of them either European or world champions.

After the Berlin Wall came down, Jari got access to enthusiasts in former Soviet states. He located kindred spirits and established close working relationships with two engine constructors in eastern Europe who now provide him with the top-quality engines that he trims for competition.

The sheer volume of the planes he owns

means he has also outsourced some parts of the construction process. “Between myself and my girlfriend, Laura, who’s also an aeromodeller, we use about 70 planes a year, and since each one takes about twenty hours to build, well, it all adds up”.

A perfect burn. But the fi nal goal of all this activity is still to be achieved. He has complete trust in his planes and is just about to reach out for what he’s truly aiming at. “I’ve had some really bad luck. Even though I’ve won the world cup total competition, I’ve often fi nished only fourth or fi fth in the world championships. A few years ago, I clocked 311.9 kph in the unoffi cial practices. After the competition, the offi cial world record stayed at 311.2 kph.”

It’s not all about competing. This passion needs fuel. “A Swedish friend of mine once said that the most beautiful sound he knew was when his Nelson engine got up to 30,000 rpm. I know what he means. When my engine gets to 43,000 rpm and the burning process is perfect, it’s certainly music to my ears.”


passion

All engine parts are important, but the glow plug is absolutely crucial. Reliable performance is a must.

“Some people said my planes were dangerous and would blow up – they didn’t!”– JARI VALO

pTHE INNOVATION that improves gas quality was discovered in the autumn of 2004 while working on another Wärtsilä project developing fuel-cell technology. After joining the fuel-cell technology unit, Timo Mahlanen, Development Manager, Fuel Cells, who had previously been marketing Wärtsilä gas engines, realised that the pre-reformer employed in the fuel cell could also be effective when used in gas engines.

“Engine capacity has to be reduced when poor-quality gas containing a lot of heavy hydrocarbons is used,” says Mahlanen. “Since customers quite naturally want to get the most out of their engine, I began to work with Sören Karlsson, who was developing gas systems in Ship Power. We were working on a catalytic process that could be used to improve gas quality.” Their work led to an innovation that is

currently in the process of being patented. The GasPac name has already received international trademark approval, and registrations in Finland and the European Union region are in progress.

Tests on the research and development project’s fi rst-generation unit will be completed in February 2006. “Our target is to prove that the device works seamlessly with a 6-cylinder Wärtsilä 35SG gas engine,” says Jaakko Ruokomäki, System Specialist in Wärtsilä’s Fuel-Cell Group, who is co-ordinating practical development work on GasPac. The innovation is also compatible with Wärtsilä’s other gas engines. The dimensions of

The fi rst-generation GasPac device used in testing is some six metres long, just over three metres high and 2.5 metres wide. It has a thermal capacity of 6 MW. Units delivered to customers are always customised for the engine power and gas employed.

GasPac™ is a Wärtsilä trademark.

AN ENVIRONMENTALLY-SOUND INVENTION INCREASES THE MARKET

1. GasPac gives Wärtsilä the opportunity to expand the market for its gas engines,

since it will be possible to introduce motors of current design to oil refi neries and power plants which use gas with a poor methane value.

2. Since GasPac allows high electrical effi ciency to be achieved with poor-quality

gas, it is also an ecological invention as regards energy production.

3. Environmental soundness is further enhanced by the fact that sulphur

compounds present in the fuel are removed by binding the sulphur into a solid form in the desulphurisation unit. The result is that there are effectively no sulphur emissions.

GasPac gets more out of enginesWärtsilä has developed technology that offers customers the high effi ciency and power of gas engines even when poor-quality natural gas containing heavy hydrocarbon is being used. GasPac uses a catalyst to improve gas quality.

the catalyst are tailored for each customer, with factors such as gas fl ow and the quality of gas used infl uencing module size.

MORE EFFICIENT USE OF GAS In his previous positions at the Helsinki University of Technology and VTT Technical Research Centre of Finland, Jaakko Ruokomäki also worked on improving gas quality. According to him, the technique used in GasPac is based on steam-reforming technology that was already being employed in the 1930s. While the original process aimed at producing hydrocarbons from methane, the target is now to retain the methane while breaking down any heavier components into hydrocarbons and carbon monoxide. In the subsequent catalytic phase, hydrocarbons and carbon monoxide react to become methane and water. The objective is therefore to increase the methane concentration and, consequently, the methane count of the natural gas to the highest extent possible.

“The best thing about this process is that we don’t lose any gas energy at all, it just changes

form,” says Ruokomäki.Development of GasPac continues, with the target for second-

generation devices being to reduce the need for water, lower the feed temperature, improve the sulphur tolerance of the process and reduce the size of the device.

“Wärtsilä engines have better electrical effi ciency than those of our competitors. GasPac makes it possible to apply this benefi t to other related areas,” says Ruokomäki.

Jaakko Ruokomäki

INNOVATIONResearch & DevelopmentDR& TEXT: ANNE KYTÖLÄ

PHOTO: TOMMI TUOMI

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RUISCRUISINCRUISIN

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Environmentally-sound

Skeg Thruster

LNG tank

Primary PTO/PTI Reduction gear

Wärtsilä 32DF, 6-cylinder

Wärtsilä 32DF, 9-cylinder

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SINGGGWärtsilä’s passion for seeking out better propulsion machinery has found concrete form in a ferry concept suitable for cruising up and down the Norwegian coast between small coastal communities. The new concept features a novel machinery confi guration based on dual-fuel (DF) engines using LNG as the primary fuel. Since the natural landscape in which the vessel would operate is still almost untouched, an environmentally-friendly ship solution is essential. The same machinery concept could easily be applied to other passenger-ship operations such as short-route ferries and expedition cruise vessels. To be suitable for the latter purpose, the ship should have a range that can accommodate cruises lasting more than seven days without refuelling.

JUST AS SAFE OR SAFERNatural gas is one of the largest sources of energy worldwide and at current rates of consumption is expected to last about 150 years. On an energy basis, known natural gas resources exceed known oil resources and are widely distributed around the world.

Natural gas is a very safe fuel when the right precautions are taken. In its gaseous form, it is lighter than air, which means that should there be a leak, the gas will disperse upwards and not build up in a ship’s bilges. Also, the ignition temperature of natural gas is relatively high (600°C) when compared to diesel oil (250°C), and natural gas is fl ammable only when mixed with air within a relatively small concentration range (between 5% and 15%).

In its liquid state, LNG is not explosive, corrosive or toxic. Possible spillage does not result in any lasting contamination since the liquid simply boils off as a gas. The low temperatures required for storage are an issue when talking about the normal steels used in ship construction, but this problem can be avoided by using appropriate materials for LNG systems. In overall terms, LNG machinery can be as safe or safer than conventional solutions using diesel oil.

ALL MAJOR EMISSIONS SIGNIFICANTLY REDUCEDWhen burnt, natural gas is very clean. Its high hydrogen-to-coal

As oil prices continue to rise, using liquifi ed natural gas (LNG) as fuel for ship power systems could become more than just a solution which is environmentally-sound, it could also become of considerable economic interest.

LNG tank

Engine exhaust emissions from the ferry running on different fuels

HFO machinery(1,5 % sulphur)

DF engines with MGO

DF engines with LNG

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The new ferry concept has a novel propulsion setup featuring twin Effi ciency

rudders and an integrated skeg thruster.

CRUratio (the highest among fossil fuels) means lower CO2 emissions than with oil-based fuels, and levels of NOX and particle emissions are signifi cantly reduced. When natural gas is liquefi ed, all the sulphur is removed, and this means zero SOX emissions.

Calculations made for the new concept shows a remarkable difference compared to machinery that uses diesel fuel. As all the major emissions can be signifi cantly reduced, the LNG solution is truly environmentally-sound. Comparable reductions in CO

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emissions are particularly hard to achieve with conventional oil-based fuels.

The main problem with using LNG in ships is the relatively-large amount of space required for fuel storage. The range demanded of the new ferry means that very large tanks with a capacity of 520 m3 are required. Regulations concerning the location of the storage tanks are also very strict. Finding suitable space for them inside the vessel is a clear challenge, affecting both the ship’s dimensions and its internal arrangements. In this particular

design, two large LNG tanks are located down on the tanktop in the centre of the vessel inside the B/5 lines, as stated in the classifi cation rules.

NEW ALTERNATIVE SOURCE OF ENERGYThe ferry is equipped with Hybrid Dual Fuel (H-DF) machinery consisting of two Wärtsilä 6R32DF propulsion engines and two 9R32DF generating sets. Total installed power is 10.5 MW, with the engines using LNG as a primary fuel and MDO as pilot and back-up fuel. When manoeuvring and at low speeds, operation is diesel-electric. At higher speeds, the mechanical propulsion engines are engaged in combination with the electric motors to boost shaft power.

The vessel’s machinery is designed according to an Emergency Shut Down (ESD) philosophy. This means that if there is a gas leak in one of the engine rooms, the gas supply is cut off and the engines are switched over to diesel mode. If the leak continues, the entire room is shut down. This in turn requires full redundancy in the machinery.

LNG is a new alternative source of energy for ship power. The new ferry concept shows how this new fuel can be effi ciently integrated into ship design and obtain the environmental benefi ts on offer. The new concept also offers lower operating costs than those for a similar ship using low-sulphur diesel oil. Although some additional space for LNG storage is required, this can be taken into account from the beginning of the design process, and the cost is small when weighed against the enormous reduction in emissions that can be achieved.

Read more at www.wartsila.com/cruise

LNG tank arrangement

LNG compartment

(250 m3)

LNG compartment

(270 m3)

Deck 1

Machinery arrangement

Deck 2

Deck 1

LNG tankLNG tank

Reduction Gear

PrimaryPTO/PTI (2000 kW)

Wärtsilä 32DF, 6-cylinder Wärtsilä 32DF, 9-cylinder

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Although additional space is required for fuelstorage, enormousreductions inemissions can beachieved.


infographics

AUTHOR IS GENERAL MANAGER, CONCEPTUAL DESIGN, WÄRTSILÄ IN FINLAND

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NEVADA GOLDLean-burn simple-cycle strikes

LOCATED NEAR RENO, Nevada, Western 102 is a 115.6 MW facility owned by Barrick Goldstrike Mines Inc. It joins the Wärtsilä-supplied Plains End (111 MW) and Red Bluff (50 MW) plants as suppliers of electricity to the US transmission grid. Declared commercial in early December 2005, Western 102 is demonstrating the fl exibility, effi ciency and reliability of gas engine technology and is the largest power plant of its type in the country.

Contracted in late October 2004, Western 102 consists of 14 gensets, each with a rated output of 8.4 MW at site conditions of 35°C and 1324 metres above sea level. Even under these stringent conditions, plant output to the grid is guaranteed to be 115.6 MW. According to Dennis Finn,Business Development Manager, Wärtsilä North America Inc., this genset project takes advantage of Nevada Assembly Bill 661, which allows industrial customers of the local utility to leave the grid if they meet several requirements. Among the most important of these is to have a hard generating asset located within Nevada which provides the industrial user with electricity, and any such asset must meet the utility’s largest single-component failure criteria.

High availability. The Western 102 gensets are Wärtsilä 20V34SG, modern natural-gas-fuelled spark-ignition engines with pre-combustion-chamber (PCC) technology which employ a lean-burn fuel/gas/air ratio to provide a very low heat rate in conjunction with very low emissions rates.

Clearly fulfi lling the need for intermediate and

peaking power, and with its very rapid start-up

qualifying for use as ready reserve, the

Western 102 power plant is part of a new era of

modern gas power plants in the US.

TEXT: RICK McARTHUR PHOTOS: TIMO KAUPPILA

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The units are also equipped with Selective Catalytic Reduction (SCR) systems for additional NO

xreduction and

Oxidation Catalyst for additional carbon monoxide (CO) and Volatile Organic Compound (VOC) control.

Wärtsilä provided power-plant and engine controls as an integral part of the design. To facilitate the 10-minute start-up and loading to full output from all gensets in warm standby, each genset has the capability of synchronizing with the grid rather than having shared synchronizers for a block of gensets. Dennis Finn comments “The 10-minute start-up to full load output is important because it meets the utility’s ancillary services requirements and provides an additional source of revenue for the owner of the generating asset. Other technologies provide quick start-up, but our solution is more reliable and provides it a higher percentage of the time. We’ve demonstrated that Wärtsilä technology does this much better than a lot of technologies, and also better than the other technologies competing in the intermediate/peaking market segment.”

No process water for engine cooling. The Western 102 power plant building has two engine halls with seven gensets in each, separated by a central section that contains the control room, MV switchgear area, motor-control centre (MCC), maintenance area, and personnel facilities. The building is a typical prefabricated type which includes sound insulation for noise control. Silencers in the charge air piping to the engine turbochargers and the large vertical silencer in the exhaust fl ue/exhaust gas stack provide additional noise control.

Since this is a simple-cycle installation engine, heat is rejected to the atmosphere via a closed loop cooling system using radiators, which allows the gensets to reach their guaranteed performance without consuming process water. To meet the utility-imposed largest-component failure criteria, the plant has a redundant buss bar system and redundant step-up transformers and breakers which allow loss of one transformer without affecting plant output. The technology supplied for the Western 102 plant is designed for remote dispatch and regulation by the utility’s automatic generation control system.

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“WE’VE DEMONSTRATED THAT WÄRTSILÄ TECHNOLOGY DOES THIS BETTER THAN THE OTHER TECHNOLOGIES COMPETING IN THE INTERMEDIATE/PEAKING MARKET SEGMENT.”

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Technology benefi ts. Wärtsilä genset technology offered the plant owner several benefi ts that led to the selection of this set-up over the other technologies that are available. These benefi ts include better ancillary service, a lower cost to meet the largest-single-component failure criteria, lower water requirements, guaranteed heat rate and greater plant fl exibility. Also, since the net plant output comes from a group of 14 gensets, the failure of one unit represents only a 7% loss of full-load-rated output – a signifi cant benefi t compared to competing technologies that feature from just one to three generating components.

Lean-burn, natural-gas-fi red reciprocating engine technology does not require use of water to meet the heat-rate, output, and emissions guarantees even at the high ambient air temperature and elevation of Western 102. The only process water consumed is a small amount needed for washing the engine turbochargers and a small amount used to keep the closed-circuit cooling-loop water expansion tanks at set point. This consumption amounts to only some 7.5 litres per unit per week.

“From the viewpoint of providing both ready reserve and spinning reserve,” says Finn, “We have a heat-rate advantage. And also, something that is peculiar to the west and particularly to Nevada, is the fact that we achieve the heat rate without using process water.” This package of benefi ts, characteristic of the genset technology, allows Wärtsilä to offer signifi cant competitive advantages.

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Rapid start-up, fl exible operation, negligible use of process water and a very-impressive net heat rate make the genset technology employed in Western 102 a very attractive solution.

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Not more than an hour from most Lake Tahoe ski resorts, Reno has an average annual rainfall of 7.5 inches. Average annual rainfall in the Nevada Desert is just four inches.


Plant fl exibility. Under the 35°C, 1324 m-above-sea-level site conditions, the Wärtsilä genset technology offers a guaranteed heat rate of 9179 kJ/kWh, which is clearly superior to any other commercial simple-cycle technology. When gensets are removed from full-power service to match demand reductions, the technology also provides greater operating fl exibility. Having all gensets in operation at minimum load maximizes the spinning reserve. The effi ciency of individual gensets at 50% of rated load is approximately 88% of their effi ciency at full load. Another example of the technology’s fl exibility is that it has the ability to carry full plant output with only 4.5 bar fuel-gas pressure.

“It’s important to understand that this is relatively-new technology which was really not commercialised until the mid 1990s,” says Finn. “That’s not because the hardware wasn’t there, it’s been there for a hundred years. It took the development of very sophisticated electronic controls to operate the genset with natural gas in lean-burn mode, something which makes the heat rate achieved the best in the world as far as simple-cycle technology goes. Secondly, electronics were required to keep the gas-fuelled engines stable in lean-burn mode, since the operating range in which the engine produces both high effi ciency and low emissions is very narrow. Without sophisticated electronic control on the fuel, air and individual cylinders, the high performance offered by these engines would not be possible.”

Flexibility is also demonstrated by the plant’s ability to cycle from shutdown to full load and back to shutdown conditions several times each day without affecting the equipment or adding to the maintenance hours.

As well as supplying the gensets for Western 102, Wärtsilä was also the project engineering, procurement and construction contractor, providing a single point of responsibility for both schedule and performance.

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Reno, known as ”The Biggest Little City in the World”, has a population of some 180,000.


WESTERN 102 CAN CYCLE FROM SHUTDOWN TO FULL LOAD AND BACK TO SHUTDOWN SEVERAL TIMES A DAY WITHOUT AFFECTING THE EQUIPMENT OR ADDING TO THE MAINTENANCE HOURS.

56 GUARANTEED POWER FOR HOSPITALS 59 BIOPOWER CHP PLANT FOR BELGIAN MUNICIPALITY 60 LIQUID BIOFUEL – A VIABLE CHOICE FOR POWER GENERATION 62 OPTIMUM ENGINE PERFORMANCE 64 WÄRTSILÄ THRUSTERS 67 NSB CONTAINER FEEDER NEWBUILDINGS OPT FOR A MEDIUM-SPEED SOLUTION 68 FIRST WÄRTSILÄ RT-FLEX50 ENGINES NOW IN SERVICE

Wärtsilä Quarterly Magazine Twentyfour7.

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56Guaranteed power

for hospitalsRELIABLE ENERGY SUPPLIES ARE LIFE-CRITICAL


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[ INSIDE ENERGY ] Twentyfour7.

Energy is the lifeline of a modern hospital. Since most life-support equipment runs on electricity, an uninterrupted power supply is of the utmost importance. Ever-increasing fuel prices mean that the costs of energy are substantial and any possibilities for

achieving savings should be welcomed. The demand for electricity, steam, hot water, heating and cooling in a hospital makes it an ideal application for cogeneration, and this type of installation can also provide the no-break and emergency-power functions.

Many hospitals have already acquired years of satisfactory experience in cogeneration. Successful results depend on dedicated planning and engineering and installation methodology which incorporates comprehensive information exchange with other users. An integrated approach to operations and maintenance can further help in obtaining optimum performance.

Extensive demands on energyModern hospitals are completely dependent on energy. Proper medical care of many patients in a limited space demands ultimate standards of cleanliness and a well-conditioned internal climate. The bathing of patients requires that clean hot water is always available. Hot water and steam are also required for additional services such as providing meals, sterilising equipment and cleaning textiles. Electricity fulfi ls a crucial role in life-

support systems and in operating theatres, and the lighting of common spaces is a major consumer of electrical energy. Electricity is also used to power productivity-enhancing equipment such as patient lifts, adjustable beds and elevators. Communication systems for data handling and information exchange all run on electricity. The energy supply in a hospital is so important that it is subject to many offi cial regulations designed to ensuring its permanent availability.

Heating and cooling depend on the local climateA typical hospital with 750 beds and a polyclinic can have an average electric load of close to 1.5 MW, with a base load of 1 MW and a peak load of 3 MW. The levels of heating and cooling required are heavily dependent on the local climate and the thermal properties of the building. For a moderate climate such as that in The Netherlands, the installed power for heating

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ELECTRICITY AND HEAT are of fundamental importance in medical care. No-break and emergency-power functions are also essential.

T E X T: D r J A C O B K L I M ST R A | I L L U ST R AT I O N : W Ä R TS I L Ä

Guaranteed power

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[ INSIDE ENERGY ] 01.2006.

FIGURE 2: TYPICAL ELECTRICITY PRODUCTION AND DEMAND PATTERN IN UMC, UTRECHT

totals some 10 MW and for cooling 1 MW. The variation in heating load is much higher than the variation in electrical load: if the average heat load is 2 MW, the peak load can easily be 10 MW during cold winter spells. If natural gas is available, it is often the preferred fuel because of its price level, easy handling and clean burning characteristics. Hospitals also perform a crucial function during major disasters that could be accompanied by failure in the supply of natural gas and electricity from the grid. For this reason, the availability of back-up liquid fuel for a diesel engine powered generator and for dual-fuel burners in the boilers is often a mandatory requirement.

Advantages of cogeneration in hospitalsAs already mentioned, hospitals have a permanent demand for electricity, steam, hot water and heating/cooling. From the fuel-utilisation viewpoint, this is an ideal application for cogeneration. In most cases, the demand for heat is such that it exceeds the demand for electricity. Consequently, a cogeneration installation can be dimensioned for at least the base load of electricity. If a substantial quantity of running hours can be made for the additional electricity demand, or if surplus electricity can be sold at an attractive price, consideration can be given to a larger installation.

The energy savings from cogeneration can be calculated (see Figure 1). With a presumed total effi ciency of 85% and an electrical effi ciency of 40%, each kWh of electricity is accompanied by 4.05 MJ of heat that can be put to useful application. If this heat was not available, it would have to be produced by a separate burner-boiler combination having an effi ciency of approximately 90%. That means that an extra fuel input of 4.5 MJ

would be required to generate the 4.05 MJ of heat. Relying on separate generation rather than cogeneration would therefore result in 4.5/9.0 x 100 = 50% extra fuel consumption. Cogeneration therefore results in a substantial reduction in the use of fossil fuel, albeit on a national basis.

No-break and emergency power functionsIt can be argued that cogeneration involves additional capital investment in generators and that the associated costs should be counterbalanced by net savings on energy bills. For a hospital however, the no-break function offered by a cogeneration installation is an additional benefi t in this respect. The supply of electricity is so crucial that a no-break and emergency power function will always be needed. Cogeneration installations can perform these tasks without problems. Gas engines with per-cylinder fuel supply have such good stability and load-step response that the quality of their power is more than adequate for sensitive medical equipment. Under normal circumstances, the generators of the cogeneration installation run in parallel with the grid. If the grid fails, the engine-driven generators stay on-line

even though some less-important user groups, such as some lighting functions, may be switched off temporarily. Vital instruments involved in surgery, patient monitoring and life-support systems, and communication systems must certainly remain connected. The presence of a cogeneration installation therefore reduces the level of investment in back-up equipment.

All factors considered, installations that improve the effi ciency of fuel use are so benefi cial for national economies that governments are inclined to support them with subsidies or even make their employment mandatory. The increasing scarcity of fuel all over the world will certainly make energy more expensive in the future. Hospitals are investments which are intended to last many decades and selecting the best options for energy supply is therefore important. These considerations mean that cogeneration should be the standard solution for energy supply in hospitals.

UMC at the University of UtrechtThe University Hospital (UMC) of the University of Utrecht in The Netherlands has more than 20 year experience with gas-engine driven cogeneration. The hospital has, however, recently undergone a signifi cant expansion and the technology used in its cogeneration system was old-fashioned compared to current standards. It was decided that three new gas-fi red units with an electrical rating of 2.1 MW be installed, i.e. a doubling of the existing power supply. There is an existing 3 MW diesel generator which can take over if the gas-supply fails and in such a case, the two steam boilers (11 MW each) can also switch over to diesel fuel. Under normal

“Cogeneration should be the

standard solution for energy supply

in hospitals.”

FIGURE 1: ENERGY SAVINGS FROM COGENERATION

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circumstances, the diesel system is only used during periodic testing.

Reliability considerations revealed that three gas-engine driven generators operating in parallel would provide suffi cient availability. In normal circumstances, the public grid is used as back-up if a generating unit fails. This is also the case during maintenance activities, as only one unit is maintained at a time as remaining engines have to carry the base electric load. If one of these two engines develops a problem, the diesel generator can be added in to ensure that adequate back-up power is available should the public grid fail. The combined level of reliability in supplying electricity is very high. The steam boilers have suffi cient capacity to produce the heat which is otherwise taken from the gas engines.

The gas engines have electromagnetically-controlled gas-admission valves on each cylinder, an arrangement which results in an unsurpassed step response. If the demand for power varies when the system is in island operation (i.e. on emergency power), the control system instantaneously detects the change in demand and instructs the gas-admission valves to supply exactly the amount of fuel which will match electricity production to demand. This ensures good frequency and voltage stability.

High supply securityEconomic modelling revealed the optimum running pattern for the three cogeneration units at UMC, at least for current levels of electricity and natural gas prices (see Figure 2)At night, electricity demand is about 3.5 MW. This is covered by running two engines in parallel at about 83% load. The electrical effi ciency of the units is then close to the nominal value and there is room for dealing with positive load steps should the public grid fail. From 7 am until 11 pm during weekdays, the tariff for electricity is substantially higher than it is during the night. In that time period, therefore, all three engines are run at full load. From 8 am till 6 pm, electricity has to be bought in (i.e. ‘imported’) but this is largely compensated for by some exports early in the morning and considerably more exports in the evening. Should the grid fail during the daytime, electricity production by the two cogeneration units is suffi cient to cover all preferred users, so there is a high security of supply, even if one of the three units fails. If this happens, the 3 MW diesel generator can be started up to meet the demand. Under current economic conditions, it is not profi table to

export electricity during the night or to install additional local power to cover the daytime consumption peak.

Positive experiences with cogeneration.Some hospitals have as much as 30 years of experience with cogeneration and are now deciding to renew or expand their installations. Other hospitals are about to implement cogeneration as a way of complying with regulations for energy saving in buildings. Many governments encourage the use of cogeneration by

offering fi nancial incentives. European rulings mean that electrical utilities are obliged to accept grid-parallel operation. Cogeneration is certain to be the standard in modern hospitals.

Modern gas engines as prime movers for cogeneration installations have good levels of reliability. They are the result of reproducible manufacturing processes that comply with quality standards. Their running stability ensures good power quality. For example, the new facility at UMC in Utrecht has already proven its ability to act as back-up power in case of grid failure. With the proper strategy in respect to the number of generating units on line and a well-defi ned maintenance program, levels of electricity availability can meet the stringent requirements set by a hospital environment.

Extensive and inclusive teamwork brings benefi tsSome hospitals are even investigating a gradual increase of the group of electricity users that will receive uninterrupted power in cases of grid failure. The ideal would be that no user even notices the transition from grid operation to island operation. Achieving this involves the combination of good design, careful testing, and close observance of maintenance and operational specifi cations. It appears that extensive teamwork between operators and maintenance crews helps in properly understanding how installations perform. For this reason, some hospitals avoid any communication problems by fully integrating maintenance procedures into operations. An integrated learning process and maximum information exchange make for a very-reliable installation.

In The Netherlands, technical staff in hospitals have for many years organised workshops at which the regular exchange of experiences takes place. The participation of equipment suppliers and engineering bureaus in such activities has stimulated further improvements in existing cogeneration installations and has also resulted in new designs. Regular contacts of this type are to be highly recommended in all countries.

ConclusionsIn conclusion, hospitals are an ideal site for implementing cogeneration because of the substantial concurrent demand for heating, cooling and electricity. Considerable savings in energy bills can be achieved, especially if governments remunerate the associated national benefi ts. Cogeneration installations have also proven their ability to act as back-up generators in case of grid failure, a capability which removes the need for additional investments in emergency power. For a successful installation, designers must ensure that they choose equipment which can deliver the correct power quality. Planners, designers, engineering bureaus, manufacturers, installers and operations and maintenance personnel should all aim for maximum information exchange and co-operation in order to achieve the most satisfactory result. Energy supply for a hospital is so crucial that problems in project management cannot be accepted.

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AUTHOR IS SENIOR ENERGY AND ENGINE EXPERT, WÄRTSILÄ IN THE NETHERLANDS



Patented Wärtsilä BioGrate combustion technology is clean, effi cient and highly automated.

INNovember 2005, Wärtsilä won a contract to supply the Belgian company Renogen SA

with a biomass-fuelled combined heat and power (CHP) plant for installation in the municipality of Amel in Belgium’s Ardennes region. The new plant will have a net electrical power output of 3.29 Mwe, a thermal output of 10 MWth for district heating, and is scheduled to start operating in January 2007. Renogen subsequently signed a ten-year Operations & Maintenance agreement for the plant with Wärtsilä.

The BioPower 5 CEX plant will burn wood residues from local forest-industry operations and Wärtsilä will also be supplying a 12 MWth oil-fuelled boiler. The Amel plant will deliver hot water to two local factories and electricity generated will be fed into the national grid. The investment is receiving fi nancial assistance from the Belgian government for producing electricity from renewable sources.

Highly modular and employing a conservative design approach, Wärtsilä’s BioPower plants can be delivered and installed quickly. Clean, effi cient and highly-automated, enabling unmanned operation, their proven technology offers a reliable and durable solution which meets the need to use renewable energy supplies with minimum environmental impact.

BIOPOWER CHP PLANT FOR BELGIAN MUNICIPALITYCLEAN AND EFFICIENT solution with minimum environmental impact is scheduled to start operating early next year.

T E X T: R I C K M c A R T H U R | I L L U ST R AT I O N : W Ä R TS I L Ä

Schematic fl owchartof a BioPower CEX plant.

Make up water

Feed water

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Cooling water

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From DH network

To DH network



The virtuous circle in Power Generation is the dream of the modern world: a power plant that is environmentally friendly, that uses renewable fuel, and which uses cash crops that could help to ease poverty in many of the world’s poorest countries.

This is no longer a dream, it is reality. Italy’s ItalGreen Energy and Wärtsilä have built the world’s largest power plant fuelled exclusively by straight vegetable oil. Liquid biofuel can be produced from practically any oil-rich crop - from sunfl ower seeds to rapeseed and palm oil.

The technologyAlthough transesterifi ed bio/vegetable oils, also called biodiesels, can be used as fuel in automotive diesel engines and in medium-speed engines, the price of this refi ned product is too high for power production in many markets.

Diesel engines, which are based on compression technology, offer a much more appropriate route because the oil can be used more or less straight from the crop. This is not a new concept. In fact, Rudolf Diesel ran his fi rst engine back in 1900 on peanut oil. Economics clearly play a major role in the decision to generate power from liquid biofuel rather than fossil fuel, and engine builders have had to overcome a number of technical hurdles.

Controlling fuel temperature is keyWhen optimizing their plant design, Wärtsilä developed a fuel-feed system which controls the fuel temperature throughout the power plant. These modifi cations keep the viscosity of the fuel stable by preventing overheating and eliminating cold zones which can lead to the creation of wax.

– a viable choice for power generationSince August 2004, two Wärtsilä 18V32

generating sets have generated 16 MW of power running at maximum effi ciency in the ItalGreen combined heat and power (CHP) plant in Monopoli, Italy. Installation of a third engine which went on line in June 2005 increased the baseload power output to 24 MW.

Practically zero emissions of CO2Even though liquid biofuels have been around since the beginning of human social development, it is only recently that environmental and commercial pressures have resulted in any substantial research being carried out into extracting maximum levels of effi ciency for the generation of electrical power. Factors contributing to the drive to develop viable liquid biofuel include international governmental pressure driven by fear of the effects of climate change, as defi ned in the Kyoto Protocol, together with a need to reduce our reliance on increasingly-expensive fossil fuels. The use of liquid biomass for power generation results in practically zero emissions of CO

2 to the atmosphere.

Quite naturally, there has been some initial resistance from the major oil companies and it is still diffi cult to fi nd liquid biofuel at most roadside fi lling stations. But liquid biofuel is already being added to the many fuels available on forecourts. Although the US has refused to

A joint project between Wärtsilä and ItalGreen Energy, the Monopoli CHP plant is located in the heart of Italy’s Puglia olive growing region, and has a generating capacity of 24MW. At full output, the three gensets will consume 45,000 tonnes of vegetable oil each year.

LIQUID BIOFUEL

PART OF OUR LIVES since the beginning of social development, only recently has there been any substantial research into extracting maximum levels of effi ciency from this energy source.

T E X T: N I K L A S H A G A | P H OTO : W Ä R TS I L Ä

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ratify the Kyoto Treaty, many thousands of hectares of ‘Corn Belt’ states in the USA have been producing oil for ethanol production for several years. Corn (maize) farmers see this as both a new source of income and a contribution to the ‘green’ debate. In 2005, production totalled 4.4 billion gallons, up by more than 20% over 2004.

Palm oil from Malaysia and IndonesiaDuring the past decade, the price of palm oil has been clearly lower than that for other vegetable oils and it has lately become the most interesting commodity to use as liquid biofuel. In terms of production volume, palm oil is the world’s second most produced vegetable oil after soybean oil. Palm oil exports come predominantly from Malaysia and Indonesia and these two countries can be expected to maintain their dominant position in exports of oils and fats, accounting for 45% of total trade.

Although Malaysia is currently the world leader in palm oil production, that fact that Indonesia is constantly increasing the size of its plantations means it is quite likely to take the number-one position in the course of the next ten years. Indonesia has focused its industrial activity on producing crude palm oil, but that is also set to change as processing resources are being developed at a rapid pace. Currently, most of the oil produced is exported either to Europe or to other countries in Asia such as India and China.

Optimizing use of the new fuelsClearly, though, it is up to the major engine producers to lead the fi eld by ensuring that they build engines which can optimize use of these new fuels. In medium-speed engines, which can run on most qualities of heavy fuel oil (HFO), it is in the fuel feed systems that major research has taken place. For many decades these engines have proven their worth as electrical power generating sets, as direct power for marine drives, and for on- and off-road equipment in the most extreme conditions.

Experience built up by engine builders such as Wärtsilä in the use of fi lters, separators, preheaters and coolers places them in a unique position at the forefront of technology to develop optimal systems for extracting maximum power with the lowest possible emissions.

ItalGreen Energy

Under the Kyoto protocol, the European Union committed its Member States to reductions of

8% from 1990 levels of greenhouse gas emissions between 2008 and 2012. Each country in the EU has set specifi c levels and is working towards a cross-union tradeable system. The details of this system are still evolving. In Italy’s case, the target for greenhouse-gas reduction is 6.5%.

A variety of incentive mechanisms, including Green Certifi cates, exist for motivating companies to reach this target. These are fi nancial contributions at community, national and regional levels, the renewable-energy certifi cate system, and grants of origin. In the case of the Green Certifi cate, local Independent Transmission System Operators have the task of checking self-certifi cations and complying with all the procedural rules. Each power

generation plant that uses non-renewables is currently obliged to produce 2.35% of its annual electricity production using renewables. If they fail to comply with this requirement, they must buy a Green Certifi cate for each and every 50 megawatt-hour included in that calculated 2.35% of annual output.

On the other hand, power companies such as ItalGreen Energy who produce energy from renewables will be awarded Green Certifi cates at the same rate and can then sell these Green Certifi cates to the offending power producers. In this way, power plants with low levels of greenhouse-gas emissions beanefi t from their investment twice over: fi rstly from selling their electricity to the national grid, and secondly by being able to trade their Green Certifi cates.

ItalGreen Energy is the energy division of the Casa Olearia Italiana Group (COI), one of Italy’s

leading suppliers of olive and other vegetable oils. As well as being able to lay claim generations of know-how in oil refi ning and treatment processes, ItalGreen has developed considerable experience in renewables and biomass-fi red power systems. The company have taken full advantage of the current opportunities for green certifi cates provided by the Italian authorities and encouraged by EU directives.

Local legislation in Italy encourages the use of green certifi cates, one benefi t of which is an electricity selling price fi xed for a period of eight years. By law, all power producers and importers in Italy are currently required to supply at least 2.35% of their power to the grid using renewable resources. The amount of power supplied in this way will progressively increase as the technology becomes more widely accepted and incentives encourage more private entrepreneurs to build and operate their own power plants.

ENCOURAGING ENERGY ENTREPRENEURS TO TAKE AN ACTIVE ROLEThis policy is of primary importance in Italy’s energy market. The risk of power shortages, high electricity prices and demanding environmental requirements are further factors which encourage energy investors to take an active role. In such a context, liquid-biofuel-based energy production represents one of the best ways of ensuring the economic viability of this type of ‘green’ energy projects. In addition, the high overall levels of power plant performance that can be achieved using medium-speed reciprocating engines make ‘green’ energy an increasingly attractive proposition.

Casa Olearia Italiana, located in Monopoli in the heart of Italy’s Puglia olive growing region,

covers an area of 100,000 square metres (24.70 acres). The facility produces extra virgin olive oil, olive oil, and refi ned pomace oil and seed oils such as sunfl ower, corn, soy, peanut, grape, rape and palm. Monopoli’s specialist harbour for foodstuffs-oil is one of Italy’s most active and well equipped.

The warehouse for oil storage is fi tted with more than 100 stainless steel tanks with a combined capacity of some 60,000 tonnes. The packaging plant for the company’s own brands and other international household and commercial brands is one of the world’s largest. It has four packaging lines, one of which can produce 11 items a second. Casa Olearia Italiana is an ISO 9002-certifi ed company.

THE MONOPOLI CHP PLANTThe Monopoli CHP plant is a joint project between Wärtsilä and ItalGreen Energy, part of the COI Group. The fi rst two Wärtsilä 18V32 generating sets were commissioned in August 2004 with a total capacity of some 16 MW. A third engine, commissioned in June 2005, increased the plant’s capacity to 24 MW.

It is estimated that the three engines will consume up to about 45,000 tonnes of vegetable oil per year when running at full output. Combustion of liquid biofuels enables simultaneous generation of electricity and heat without sulphur emissions and zero consumption of fossil fuel. Located inside the existing vegetable oil refi nery, the Wärtsilä-designed plant supplies both green electricity to the national grid and steam and power for factory processes. Wärtsilä was responsible for the fuel tests, detailed engineering, delivery of the full generating set package, start-up and erection supervision. ItalGreen Energy handled the civil works, plant erection and site activities.

The Green Certifi cate scheme in the European Union

AUTHOR IS SENIOR DEVELOPMENT ENGINEER, WÄRTSILÄ IN FINLAND


[ INSIDE MARINE ] Twentyfour7.

The offshore and energy industry knows how to get the best from its engines in terms of performance and operational

costs – it leaves it all to the engine builder. For the last fi ve years, Wärtsilä has been offering this sector both full performance and operational responsibility for its stationary engines in places as far fl ung as Bangladesh, Columbia, France, India and Kenya, building up a reference list that now totals more than 2600 MW. Wärtsilä is now looking to expand service provision in the marine industry.

Cost and performance effi ciencyWärtsilä Operations & Maintenance is essentially a ship-management system for the engine room in which fi ve or ten-year, fi xed-price service agreements are tailor-made to keep each customer’s investment both cost- and performance-effi cient throughout an engine’s lifetime. In a nutshell, the concept has been designed to ensure safe and reliable ship operation; to eradicate downtime; to ensure the performance and monitoring of both main and auxiliary engines and other Wärtsilä products; to provide trained and skilled seafarers; and to ensure rapid response by maintenance crews wherever and whenever they are required.

Tage Klockars, Operations & Maintenance Systems Manager, explains: “Utilizing the latest technology means that today’s products are very sophisticated. Training engineers in the correct use of modern engines is not an easy task for shipowners and operators.” A case in point is the fact that although 80% of machinery breakdowns are still down to human error, this could in time fall to insignifi cant levels as more and more shipowners sign up to the Operation &

Maintenance concept. “Primary drivers in the ship power industry are running costs and environmental impact, and one consequence of this is that the technology becomes very advanced. Support and back-up from someone operators know and trust is therefore essential.”

Owners of cruise ships frequently opt for Wärtsilä’s common-rail engine technology and the LNG market favours the dual-fuel alternative, so there are defi nite winds of change in the market for this kind of high-end, environmentally-sound multifuel technology. An increasing number of requests from customers for long-term Operations and Maintenance contracts are being received. In late 2005, Blue Star became the fi rst containership owner to sign up to the scheme with the nine two-stroke RT-fl ex engined-vessels in its fl eet. It’s almost certain that other marine industry stalwarts will follow suit.

Centralised managementThe Operations & Maintenance concept is based on two elements: the Part Crew Concept (PCC) and the Technical Management Concept (TMC). In both instances, a centralised, land-based management system is established to administer the operation in a way not dissimilar to the way in which a traditional ship-management company runs its ships – but in this case it’s the engines and engineering staff that are managed.

“We centralise all engine maintenance, scheduling, contract management and invoicing. This makes it cost effective for us and for the customer. At the same time, our network maintenance staff provide close support so it’s easy for them to be on ship or at the yard more or less immediately, wherever and whenever they’re needed,” says Klockars.

Technical managementAs part of the Technical Management Concept Wärtsilä provides a rapid-response crew to carry out all scheduled and unscheduled engine maintenance according to an operational schedule. An exchange parts system helps in shortening downtime, and major overhauls are carried out in conjunction with major maintenance on other machinery or onboard equipment. Overhaul parts are taken ashore for reconditioning in Wärtsilä workshops. All parts are provided by the engine builder, including all software upgrades and the maintenance of computer systems. Technical and operational training can also be conducted on board when this arrangement suits the ship operator.

“We charge a fi xed price which includes all spare parts for both scheduled and unscheduled maintenance, all personnel requirements, condition-based maintenance (CBM) and monthly reporting, on-line monitoring, maintenance management and the coordination of all people and tools, and onboard inventories,” says Klockars. All Wärtsilä’s on-line services are incorporated into the PCC and the TMC concepts.

T E X T: PAT R I K W H E AT E R | P H OTO S : W Ä R TS I L Ä

OPTIMUM ENGINE PERFORMANCE

AS THE MARINE INDUSTRY starts to benefi t from Wärtsilä’s Operations & Maintenance concept, off-hire time and human error could become a thing of the past...

with cost savings

“An increasing number of requests

from customers for long-term

Operations and Maintenance

contracts are being received.”

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No additional crew positionsThe Part Crew Concept (PCC) adds a further dimension to the scheme in that Wärtsilä provides part of the onboard engineering team. There are no additional crew positions and crew costs for the ship owner or operator are not increased.

“We provide a Second Engineer, an Electronics Engineer and junior engineers, all of whom sail with the ship during normal routine operations. They provide specialist skills and have access to all our technical services, on-line services, documentation and expertise. Although employed by Wärtsilä, they fall under the responsibility of the ship’s Chief Engineer who involves them in all onboard duties so that they fulfi l their traditional roles” says Klockars.

When customer opts for the Part Crew Concept, the engine builder takes complete responsibility for Wärtsilä engines and products and can provide performance guarantees. “This is performance-based ship management,” says Klockars. “Wärtsilä’s Operations & Maintenance service offers shipowners signifi cant savings in operational costs. When we‘re able to guarantee optimum performance, further savings in lube and fuel oil consumption can be achieved as we can optimise how the engine performs. Also, having optimum performance data means we can reduce spare-part requirements since wear and tear on engine components is reduced. Off-hire time and human error are signifi cantly reduced if not eradicated completely.”

“Wärtsilä’s Operations &

Maintenance service offers shipowners

signifi cant savings in operational costs.”

Cruising companies can focus on their core business while Wärtsilä takes care of the engines, equipment and associated servicing.



THERE IS NO DOUBT that high oil prices have resulted in increased activity in the offshore market. The many new semi-submersible drilling rigs and drill ships on order are a direct result of the high demand for all types of equipment connected with oil exploration and production.

WÄRTSILÄ THRUSTERS the driving force behind dynamically positioned Offshore Applications [

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DSS21 drilling rigs are a design developed by Keppel and Marine Structure Consultants. This semi-submersible drilling rig for AP Møller-Mærsk A/S is suitable for all-year-round operation and can be used for development drilling in depths of up to 3000 metres.

KEY DATA: STEERABLE THRUSTERS FOR DSS21 SEMI SUB DRILLING RIG

Rig typeNumber of thrusters and typeInput speedInput torqueReduction ratioInput powerPropeller diameterNozzle type

DSS21 Semi Submersible Drilling Rig8 x FS3500-671/NU0 - 600 rpm63,667 Nm3.5384000 kW3800 mmWärtsilä High Effi ciency, 3 degrees tilted

The Safe Concordia accomodation rig, owned by Consafe and built at Keppel Fels, is equipped with four Wärtsilä thrusters with an input power of 2500kW.



Reliable and durableAs already mentioned, the design philosophy in Wärtsilä thrusters focuses on ensuring reliability and durability, both of which are important in ensuring availability of the system and minimizing downtime. All aspects of Wärtsilä thrusters cannot be fully described here, but a few key features are mentioned below.

Transmission parts (i.e. gearwheels and bearings) are designed for continuous running in dynamic positioning conditions. All gearboxes are fi tted with a spiral-bevel gear set, made of special high-quality forged steel, case-hardened and fi ne-machined after hardening to Class 6 - DIN 3965 - (H.P.G. process) or better.

Performance requirements demand that thrusters incorporate a large number of anti-friction bearings. Every Wärtsilä azimuth thruster is fi tted with separate bearings that take axial and radial loads. This ensures long bearing life. The pinion shaft is also supported on both sides of the pinion wheel,

TEXT: HANS LAHEIJ | ILLUSTRATION: WÄRTSILÄ AND KEPPEL FELS

“RELIABILITY AND DURABILITY

ARE THE BASIS FOR DESIGN.”

INaddition to the increased demand for equipment, there is a drive for offshore activities to

move to deeper water. Operating in these conditions requires that offshore structures be dynamically positioned (DP) and these units thus require their own propulsive power. As it is the driving force, propulsion equipment plays an important role in the successful operation of an offshore installation. This article takes a closer look at this type of propulsion equipment, the Steerable Thruster.

Wärtsilä thrusters have their origins in Lips offshore thruster design. First delivered in 1967, the Lips thruster has been further developed to have a power range of 800-7000 kW and comply with the highest requirements for offshore installations.

Wärtsilä offshore thrusters are employed in heavy-duty seagoing applications such as semi-submersible drilling rigs, drilling ships, cable layers, research vessels, and product tankers. The Wärtsilä offshore thruster range covers all types of thruster. To ensure it fulfi ls the operational requirements of an offshore application, the design criteria for each type and size of Wärtsilä offshore thruster focus on: 1. Using components suitable for continuous

operation in heavy offshore conditions,2. Ensuring reliability and durability to

minimize down-time, and 3. Providing a lifetime of at least of 25,000

hours at full continuous load (i.e. at 100% power for 100% of the time)Design of the Wärtsilä thruster also

involves a modular approach which means that standardized sub-assemblies can be used to fabricate different types of the same size of thruster. This approach means that the following types are available:1. Modular Thruster in weld-in, bolt-in

or can-mounted execution2. Retractable Thruster3. Containerised Thruster4. Underwater (de)mountable thruster

All these thruster types are available in input power ratings of up to 7000 kW and can be supplied with either fi xed-pitch propellers (FPP) or controllable-pitch propellers (CPP). Nozzles are commonly used in DP applications to increase thrust, but thrusters can also be supplied without nozzles for specifi c applications.

function of a steerable thruster consists of a hydraulic powerpack connected to a number of hydraulic steering motors. To ensure redundancy in the system, the powerpack is equipped with two 50 % capacity pumps that run at the same time. If one pumps fails, the steering capacity that remains is suffi cient to ensure safe operation.

Lubrication oilThe propeller gearbox in a steerable thruster is completely fi lled with lubrication oil. Each thruster has single lubrication pump which takes suction from the lowest part of the thruster. This ensures optimal circulation of the oil, and also has the advantage that should water enter the unit, it will be immediately noticed as the suction is from the lowest part. As the circulation of oil is not critical, only one pump is supplied for each unit. A header tank is provided to ensure positive pressure across the seals against the surrounding seawater. For semi-submersibles that have a

different draft in transit and operation, this system is extended with either an extra (i.e. higher) header tank or a single header tank with adjustable pressurised air to compensate for the difference in water pressure at different droughts.

Underwater mountable thrustersA type of thruster widely used on semi-submersible drilling rigs and drill ships is the underwater (de)mountable thruster. The fi rst Lips thruster of this type was delivered in 1980. With this type installation, the outboard part can be removed without dry docking the rig or vessel. This arrangement ensures continuous availability of the offshore

Wärtsilä underwater (de)mountable thrustes ready for installation.

an arrangement which ensures that there is no deformations in loaded conditions and that tooth contact between the pinion and crown wheels is optimal under all load conditions.

Sealing systemA good sealing system is essential for trouble-free system operation. A high-quality triple-lip Wärtsilä viton seal is therefore installed on the propeller shaft. A ceramic coating is applied over the full length of the liner. As an option, the sealing system can be extended to a 4BL seal (i.e. four viton sealing rings) with special monitoring possibilities.

A triple lip seal is installed between the rotating steering pipe and the stationary support pipe. An extra-heavy-duty type of lip seal is fi tted at the outside to prevent debris from entering the area between the support and steering pipes.

Hydraulic steering systemThe steering system that provides the azimuth p



“LONG EXPERIENCE COMBINED

WITH IN-HOUSE EXPERTISE.”

installation since thrusters can also be exchanged in the open sea. The installation sequence for the thruster outboard part is shown at the top of this page.

DSS21 Semi-submersible drilling rigOne example of an application for Wärtsilä underwater (de)mountable thrusters is the units

to be supplied for two semi-submersible drilling rigs at Keppel Fels in Singapore.

Keppel Fels, a world leader in the construction of offshore jack-up drilling rigs, semi-submersible platforms and other offshore facilities for the oil and gas industry, ordered a complete package of Wärtsilä generating engines as well as steerable thrusters in August 2005.

The rigs are being built for the Danish company AP Møller-Mærsk A/S and are of the DSS21 design developed by Keppel and Marine Structure Consultants. They will be employed for development drilling in deep water down to a depth of 3000 metres and are intended for all-year-round operation in regions off the coasts of West Africa, Brazil, the Gulf of Mexico ans southeast Asia. Delivery of these semi-submersible rigs is scheduled for 2008 and 2009.

Each dynamically-positioned semi-submersible will be equipped with eight Wärtsilä Steerable Thrusters of underwater (de)mountable design. The input power for each unit is 4000 kW at a variable input speed of 0-600 rpm.

To increase thrust in both DP and transit conditions, the thrusters are equipped with Wärtsilä High Effi ciency nozzles. To reduce interaction between the thrusters and between thruster and hull, the nozzles are tilted so that the jet produced leaves the thruster at an angle.

A special feature of these steerable thrusters are the quadruple seal arrangements on the

propeller-shaft seals. These seals are of the Wärtsilä 4BL type and have four viton sealing rings running on a ceramic-coated liner. This multi-barrier seal has two sealing rings facing the water and two seals facing the oil. There is also a special connection for monitoring to allow early detection of any possible seal leakage.

In addition to the thrusters, the DSS21 rigs will be equipped with eight 16-cylinder Wärtsilä 26 generating sets having a combined electrical output of 39,920 kWe.

The reliable partnerWärtsilä has a long history of supplying steerable thrusters. It also has the in-house hydrodynamic expertise required to make a success of offshore projects. With more than 35 years experience in steerable thrusters, Wärtsilä is the reliable partner in the demanding offshore market.

Cross-section of Wärtsilä azimuth thruster.

Three tubes for hoisting wiresReceptacle with steering gearbox on top

Three inboard hoisting wires

One outboard hoisting wire

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INSTALLATION SEQUENCE FOR UNDERWATER MOUNTABLE THRUSTERS

AUTHOR IS GENERAL SALES MANAGER, WÄRTSILÄ IN SINGAPORE



Reefer containerships and four-stroke diesel engines do not usually form part of the same sentence, but it’s

an increasing trend as more and more newbuildings of this shiptype show interest in using four-stroke engines.

Largely as a result of burgeoning worldwide capacity, shipowners with container feeder newbuildings of up to 2000TEU in mind are looking for alternative means of propulsion rather than wait for a vacant slot at the two-stroke engine-builders yard. Reederei-NSB is taking the lead.

While this shipowner is not the fi rst operator to opt for a medium-speed solution for such a ship, it is perhaps the most prominent as it has a fl eet of more than 40 containerships capable of carrying between 1000 and 6750TEU. Reederei-NSB has selected ten 9-cylinder in-line Wärtsilä 46 four-stroke engines for a series of fi ve 2100TEU containership newbuildings being constructed at the Aker Ostee shipyard.

Wärtsilä signed an agreement with the shipyard last year in May and will deliver the fi rst two 10,395 kW engines to Hull No. 136 in October. To each ship the contract also includes supply of three 9-cylinder Wärtsilä Auxpac 20 generating sets, each with an output of 1600 kWe. The fi rst vessel is scheduled for delivery in March 2007.

Jan-Anders Backman, General Manager at Wärtsilä, Ship Power, 4-stroke business, says this type of installation offers owners a host of benefi ts and is a more fl exible, compact solution.

The lower height of the four-stroke engine alternative permits a much smaller engine room and lower deck head than the conventional cathedral-engine confi guration, freeing up valuable space for cargo. This saving of space is clear in the case of the NSB ships

– the initial drawings depicted a 1900TEU vessel but this has since been increased to 2100TEU, with an appropriate increase in ship length from 190 metres to approximately 210 metres.

Cost savingsCommenting on the benefi ts, Backman says “With a two-stroke engine, the power ratio is normally optimised to run on a higher maximum continuous rating of say 80-90% to

drive a fi xed pitch propeller. With the NSB vessels, two four-stroke engines will drive a single controllable pitch propeller through a twin-in/single-out reduction gear. If the vessels are operating at low speed or in light ship conditions they can run just one engine.”

“This means less fuel is consumed than with a traditional two-stroke engine because a four-stroke will always be running in its optimum speed range. With this arrangement you can run one engine and simply reduce the pitch of the propeller instead of having to lower engine rpm as you would in the two-stroke engine and fi xed-pitch propeller solution. Further cost savings can be made on the lube oil front as two-stroke engines require that cylinders are lubricated by the system oil.”

With a four-stroke engine, the lube oil is treated outside the engine by continuous separation. On its way to the engine, oil passes through a lube oil cooler, a full-fl ow automatic fi lter unit and a safety fi lter which provides fi nal protection. For the purpose of running-in, provision has been made for the mounting of special running-in fi lters in the crankcase in front of each main bearing.

Further cost savings will come when vessels are operating in and out of Ship Emissions Control Areas (SECA). In May 2005, MARPOL Annex VI came into force setting limits on sulphur oxide (SOx) and nitrogen oxide (NOx) emissions from ship exhausts, prohibiting deliberate emissions of ozone-depleting substances. The introduction of this ruling means that engine lube oil may have to be changed to be compatible with low-sulphur bunker fuel when a ship enters a SECA. In contrast to ships operating two-stroke engines, Reederei-NSB’s newbuildings will not have to carry two types of lube oil for situations when the engine is changed from high- to low-sulphur-content fuel: four-stroke engines can temporarily run on the same lube oil during operation with both types of fuel.

NSB CONTAINER FEEDER NEWBUILDINGS OPT FOR A MEDIUM-SPEED SOLUTIONGERMAN SHIPOWNER NSB sets a new trend with a medium-speed solution for a 2000TEU containership.

Length oa approx 210 mBreadth mld 28.8Design draught 9.5 mTonnage 21 000 gtMain engine 2 x 10,000 kWAuxiliary power 3 x 1600 kW (electrical)PTO 1300 kW

The use of 4-stroke engines frees up valuablespace for cargo.

T E X T: PAT R I K W H E AT E R | I L L U ST R AT I O N : W Ä R TS I L Ä

PRINCIPAL PARTICULARS OF THE CONTAINERSHIP NEWBUILDINGS



INJanuary 2006, two ships entered service with the fi rst RT-fl ex50 low-speed engines:

the 37,000 dwt product tanker Aristidis and the 19,625 tdw geared bulk carrier Credo. Both passed their sea trials with fl ying colours, and then sailed on their maiden voyages.

Aristidis, the fi rst to be delivered, was built for Barclay Shipping Ltd of Greece by Hyundai Mipo Dockyard Ltd, Korea, and left the shipyard on 7 January. Credo, built by Shanghai Edward Shipbuilding Co Ltd in China for its Swedish owner Rederi AB Donsøtank, was scheduled to leave the shipyard at the end of January. Both vessels are equipped with a 6-cylinder Wärtsilä RT-fl ex50 engine having a maximum continuous power of 9720 kW at 124 rpm. Manufacture of the engines was subcontracted by Wärtsilä Corporation to its licensee Diesel United Ltd in Aioi, Japan.

The Aristidis has overall dimensions of about 184 m long, 27.4 m beam

T E X T: B E AT S C H U M A C H E RP H OTO S : W Ä R TS I L Ä , C A P I TA L S H I P M A N A G E M E N T C O R P. A N D R E D E R I A B D O N S Ø TA N K

FIRST WÄRTSILÄRT-FLEX50 ENGINES now in service

View from the bridge of Aristidis during sea trials.

POSITIVE ACCEPTANCE in the market – 41 engines had been ordered when the fi rst two entered service.

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and 17.2 m deep, with a design draught of 9.8 m and service speed at that draught of approximately 15.3 knots. Built to Ice Class 1A Super, the Credo is 158 m long overall, has a beam of 24.6 m and is 13.5 m deep with a design draught of 9.0 m. For the Credo, Wärtsilä also supplied a 5.5 m-diameter Wärtsilä Lips controllable-pitch propeller, three 4-cylinder in-line Wärtsilä 20 diesel generating sets, PTO tunnel gear and an associated 2000 kWe alternator, and a Wärtsilä Lipstronic propeller-pitch control system.

The new RT-fl ex50 common-rail low-speed engine has received positive acceptance in the market with 41 engines having been ordered by the time the fi rst two went into service. Engines have been ordered for newbuildings contracted with shipyards in China, South Korea, Germany, Japan, Croatia and India for a variety of owners in China, Greece, Scandinavia, Germany, India and The Netherlands. These newbuildings include general cargo ships and bulk carriers in the range 20,000–53,800 dwt, product and shuttle tankers of 37,000–52,500 dwt, car carriers and 17,000 m3 LPG carriers.

The RT-fl ex50 has been tailored exactly to the propulsion requirements of various sizes of bulk carriers in the handymax to panamax size range, product tankers and feeder container vessels. With fi ve to eight cylinders, the engines cover a power range of 5800 -13,280 kW at 99 - 124 rpm. A key feature of RT-fl ex50 engines for all such ship types is that they allow a compact engine-room design.

Owners are proving to be very interested in the special benefi ts of electronically-controlled common-rail systems for fuel injection and valve actuation in engines of this size, especially the great fl exibility in engine setting. The resulting benefi ts are lower fuel consumption, lower minimum-running speeds, smokeless operation at all running speeds, and better control of other exhaust emissions.

RT-fl ex system is adaptableThe RT-fl ex common-rail concept, already in service in engines of 960, 600, 580 and now 500 mm bore, has proved readily adaptable to widely-different cylinder sizes. Although the common-rail system has been simplifi ed for the RT-fl ex50 compared to the systems in the larger RT-fl ex engines, reliability and safety have been given the utmost priority in its design. There is

still adequate spare capacity and duplication for redundancy in the supply pumps, main delivery pipes, crank angle sensors, electronic control units and other elements.

The rail unit in the RT-fl ex50 is arranged on the upper platform. The fuel rail is a single-piece pipe on which are mounted the injection control units (ICU) for individual cylinders. This single-piece design reduces the number of fl ange joints and simplifi es trace heating and insulation. Each ICU on the fuel rail serves just two fuel-injection valves in its corresponding cylinder cover, with independent control of each fuel valve.

The supply unit is neatly arranged on a gear drive from the crankshaft thrust collar, with a single intermediate gearwheel. Engines with fi ve or six cylinders have two fuel supply pumps and two servo oil pumps. Engines with seven and eight cylinders have three fuel supply pumps.

RT-fl ex engines are able to run in a very stable manner at very low speeds, slower than camshaft-type engines. This is made possible by the precise control of fuel injection, optimised injection pressures, optimised valve timing, and shutting off individual injectors at low speeds. RT-fl ex engines can run without smoking at 12% of their nominal speed or even slower. This was demonstrated when, during sea trials, the main engine in the Aristidis was able to run stably at 15 rpm.

The RT-fl ex system gives important benefi ts in environmental compliance. The most obvious is smokeless operation of RT-fl ex engines at all engine speeds. The fl exibility of the RT-fl ex system also allows a good balance between fuel consumption and compliance with NOx regulation in the MARPOL 73/78 convention.

By allowing injection pressures to be optimised at all loads, RT-fl ex engines consume less fuel at part load than conventional camshaft-type engines. Advantage has been taken of the complete fl exibility in fuel injection and valve operation allowed by the common-rail system to offer, through Delta Tuning, even lower specifi c fuel consumption at less than 90% load.

Some design featuresA close look through the design of the RT-fl ex50 confi rms its similarity to other Wärtsilä RTA and RT-fl ex engines. It is designed throughout for structural safety, high reliability and long times between overhauls, which are expected to be required after a minimum of three years’ running.

For example, the RT-fl ex50 has the latest piston-running features which allow very low cylinder-lubricating-oil feed rates (0.9–1.1 g/kWh) but with very low wear rates. These features include fully-deep-honed cylinder liners, chromium-ceramic top piston rings, chromium-plated piston

“Owners are very interested in the special benefi ts

of electronically controlled common-

rail systems.”

Both the 21,000 dwt geared bulk carrier Credo (left) and the 37,000 dwt product tanker Aristidis (right) are fi tted with 6-cylinder Wärtsilä RT-fl ex50 engines.

p



ring grooves, an anti-polishing ring at the top of the liner, optimised cylinder-liner surface temperatures, and optimised cylinder lubrication using the long-proven load-controlled accumulator system.

The scavenging system employs the latest high-effi ciency turbochargers. Particular care has been taken to ensure effi cient water separation after the scavenger air cooler. The high-effi ciency separator is located in an underslung air receiver so that air swirl aids water-droplet separation. Ample drainage is provided.

The engine structure has been designed using the latest computer-based tools and

techniques fully incorporating knowledge from existing engine types. The whole is very sturdy with low stresses and high stiffness. The double-walled bedplate has an integral thrust bearing. The double-walled column has thick guide rails for rigidity under crosshead shoe forces.

The main, bottom-end and crosshead bearings all have white-metal running surfaces. The crosshead has a full-width lower-half bearing with the crosshead pin being of uniform diameter.

The piston-rod gland is of a proven design with highly-effective dirt scraping action in the top part and system-oil scraping ability

in the lower part. Losses of system oil are minimised as all scraped-off oil is recirculated internally to the crankcase.

The bore-cooled cylinder cover is secured by eight elastic studs. It has a single central exhaust valve housed in a bolted-on valve cage.

Shop testing and sea trialsThe fi rst production RT-fl ex50 engines, including those for the Aristidis and Credo. successfully completed their offi cial shop tests in summer 2005. The tests included the comprehensive testing programmes which are normal for a new engine design, together with type-approval tests for the RT-fl ex50 engines and the WECS-9520 electronic-control

systems now incorporated in RT-fl ex engines.The engines completed the shop tests with

excellent operating performance results. The type-approval tests were passed on 13 August 2005.

Sea trials for both vessels proceeded according to schedule with no major engine-related problems. The usual minor adjustments to the WECS electronic control systems were made since the actual response of the engine to ship and propeller in shipboard operation cannot be fully simulated during shop tests.

The only unexpected feature of the RT-fl exsystem was the higher-than-anticipated consumption of compressed air for building up rail pressures when starting. In all other respects both engines started well and demonstrated very good low-speed operation, with stable running at speeds down to 15 rpm.

After completion of the sea trials, a detailed inspection was made of the engine onboard Credo and one cylinder in the engine was opened for examination. All running parts were found to be in good condition. The piston crowns had the heavy carbon deposits that are usual after low-speed running but no deposits were found below the top rings. The piston rings and cylinder liners were all in good condition.

“Shop tests were completed with

excellent results.”

The fi rst Wärtsilä 6RT-fl ex50 engine in the fi nal stage of assembly at Diesel United’s Aioi works in Japan.

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AUTHOR IS PRODUCT MANAGER, WÄRTSILÄ IN SWITZERLAND

Twentyfour7. 71

When you lean back at the dinner table after an exhausting day, how would it feel if a waiter were to arrive with a refreshing drink - just before you decided to order one…

In these pages we hope to give you moments to relax with “something sweet” – far from all the things you usually face at work.

Service to remember

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AT YOUR SERVICE | TRAVELLERS’ GEAR | HISTORY CORNER | LITTLE ENGINEER | MY PARENTS

more on page 73

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It’s handy to know specifi c

customs.

sign off Afternoon tea

– with style

[ AT YOUR SERVICE ]


IN THREE WORDS, the London-based Mandarin Oriental Hyde Park is all about anticipatory customer service. Visit this luxury hotel once and the next time you arrive, the staff will remember your name. Otto Hannuksela, Assistant Manager at the Park Restaurant, makes sure that customers leave the dining room with wide, satisfi ed smiles.

1. HOW ARE CUSTOMERS KEPT SATISFIED?The key is tailored service. We look after our guests in a friendly, discreet manner and, in principle, aim to fulfi l

every one of their requests. We’d rather not use the word ‘no’ at all! Service with a smile is a given, and we like to discover and learn our guests’ tastes and preferences. So when Mr X enters the Park Restaurant, he’s given his regular table and asked if he would care to have his usual Apple Martini. We ensure that every guest feels appreciated and important.

2. WHAT MAKES PEOPLE COME BACK TO MANDARIN ORIENTAL HYDE PARK?Friendly staff. That’s the critical factor – ‘I don’t

know’ just isn’t part of our vocabulary. For example, while the Park Restaurant menu has more than 50 alternative items, if a guest cannot fi nd the one that is exactly right, our kitchen can handle pretty much any request under the sun. We also serve that famous and very popular English afternoon tea.

3. HOW DO YOU HANDLE CUSTOMER FEEDBACK?Very seriously. We address every issue and every question, no matter how small. Guests can approach

any member of staff and they’ll make sure the issue gets resolved. Since it’s important to keep all our personnel up-to-date on customer feedback, open communication between staff is crucial. If a guest is unhappy about something, we do our best to correct the situation. We might, for example, invite the guest to dinner – on the house!

T E X T: M A R I S A B E R I S A P H OTO : I L P O M U STO

++

TRAVEL GUIDES

[ TRAVELLERS’ GEAR ]

“WHAT I USUALLY TAKE WITH ME when I’m travelling is a dictionary and a traveller’s guide – Lonely Planet for example. The last one I bought was the guide for Indonesia. In total, I have about fi ve dictionaries and some eight travel guides. For longer trips, I take books by Tom Clancy, David Baldacci and similar writers.

It’s my experience that people are really appreciative it if you can speak some basic words in their language, if it’s not English. Traveller’s guides tell something about the country’s culture and history. This really helps in building a good relationship with customers.

It’s handy to know specifi c customs, and also things that you should NOT do. In the case of Indonesia, it was pretty good to know what had happened during the Dutch colonial period, and especially how Indonesians view that period nowadays. I really saw that our customers appreciate the fact that you know something about their nation.

I usually spend about an hour each day studying during the fi rst week of a trip. After that, I check the guide every now and then, and also when I have the time to go somewhere on a Sunday – if working on Sunday isn’t necessary.”

AUTHOR IS SUPERINTENDENT, FIELD SERVICE, WÄRTSILÄ IN THE NETHERLANDS

Photo bank for travel picsEnthusiastic digital photographers fi ll up their memory cards quickly when on holiday. A handy solution to this problem is to download the photos to a portable photo bank.The Archos™ Gmini 400 device lets you save and view photos transferred from a digital camera or computer (PC or Mac). The device has a 20-gigabyte hard disk and you can copy digital photos to the unit from a CompactFlash® memory card. An adapter for SmartMedia™, MMC, SD™, Memory Stick® and Memory Stick PRO™ cards is sold separately.The Gmini 400 is actually an entertainment centre that can be used for listening to music, watching videos and playing games on the 2.2-inch colour screen.

Keep your belongings dryTake your mobile phone or camera with you on the water. Aquapac waterproof bags protect electronic equipment, passports, money and medicine from water or even sand and come in a variety of sizes. The patented locking system keeps all bag models watertight to a minimum depth of 5-10 metres. www.aquapac.net

A good opponentThe Mephisto travel chess computer (1) is a small but educational opponent when travelling. It’s ideal for players from beginner to intermediate levels. You can start with the easiest level and progress to tougher challenges with the help of the computer. The game includes 64 playing levels, 16 stored openings and 11 teaching modes. If you stop playing in the middle of a game, it will be stored in the memory for up to 300 hours. SAITEK GmbH

Get some peace and quietTalkative fellow travellers, daylight or the lively nightlife of a hotel street are easy to block out with eye shades (2) and ear plugs. www.samsonite.com

TEXT: PETER KOOISTRA PHOTO: TOMMI TUOMI

1.

2.

What to do and say – and what not to do!

Photoquiz answer

The “Dragon Dance” was

performed to celebrate the

opening of Wärtsilä’s new premises

in Singapore on 8 November

2005. Wärtsilä Singapore, Wärtsilä

Propulsion, Chuwac Engineering

and Ciserv Singapore are now

under the same roof.



Tearaways on wide wheels

sign off [ HISTORY CORNER | LITTLE ENGINEER’S PAGE ]

A big boy’s game for relaxing after a heavy week at work. T E X T: K R I ST I I N A K U I S M A P H OTO : TO M M I T U O M I

can start immediately after refuelling.Liquid-fuelled motors usually

promise better performance, and for dedicated enthusiasts, it’s the combination of noise and smell that make model-car racing feel real. Each engine’s ability to perform depends on a reliable fuel supply, a glow plug in good condition, and a carburettor that’s adjusted correctly.

The massive wheels of the Giga Crusher Twin .26-Engine 4WD Monster Truck are driven by two liquid-fuelled motors, each of which has its own fuel tank. Together, the two motors produce fi ve horsepower. As the chassis has double wishbones and twin shock absorbers on each wheel, it should be able to withstand the most punishing demands of its tearaway drivers.

KYOSHO GIGA CRUSHER TWIN .26-ENGINE 4WD MONSTER TRUCK EUR 1,000

ALTHOUGH LEARNING how to handle radio-controlled cars is easy, the possibilities for trimming and enhancing their performance make it a challenging hobby, even for people who have plenty of experience. And those who want to get everything possible out of their cars build them from scratch. As construction of a real competition model demands more waking hours than there are in a weekend, hobbyists desperate to get going purchase their toys ready made.

There are two schools of thought among radio-control enthusiasts concerning power sources. One swears by electric motors, for the other, liquid-fuelled motors are the only possible choice.

Electric motors get their power from rechargeable battery packs. Today’s motors are effi cient and a single charge can provide 10-30 minutes driving time. As recharging takes about an hour, it’s a good idea to have two or three packs with you so that a shortage of current doesn’t cut your driving session short. Electric motors are considered foolproof. Safe for use by young hobbyists, they are also almost silent. Liquid-fuel motors use a combination of methanol, nitromethanol and oil which is sold ready mixed. Each tankful provides 15-30 minutes driving and you

TEXT: INGELA NILSSON

The great breakthrough for diesel engines came in

1912 when the renowned Norwegian polar explorer

ROALD AMUNDSEN reached the ice barrier at the South Pole with Fram, a research

vessel. Fram was equipped with a 180 BHP ‘Polar’ diesel engine supplied by AB Diesels Motorer.

Despite the extremely tough conditions, the engine

worked perfectly and after a satisfi ed Amundsen

returned to civilisation at Hobart in Tasmania,

he sent a telegram to the manufacturer saying “Diesel

engine excellent”. Engines subsequently manufactured

were given the name ‘Polar’ which still is a registered

trademark.The fi rst Polar engine was

delivered by AB Diesels Motorer in Sweden. In 1917 the company merged with

Atlas Diesel, who sold their engine manufacturing

activities to Nyqvist & Holm (NOHAB) in Trollhättan

in 1948. In 1979 NOHAB became a Wärtsilä company.

AUTHOR IS EXECUTIVE ASSISTANT, WÄRTSILÄ IN SWEDEN

AMUNDSENSHOWED THE WAY

When you have a passion for something, it doesn’t matter if you’ve made it or not.

WE SERVICE ANY ENGINE.

sign off [ MY PARENTS ]

WHAT DOES MY MOTHER/FATHER DO IN WÄRTSILÄ?

“He is working hard with his tiny little hand by the computer. He writes big paper notes and he is gentle and nice. I would like to come to work with my father.”

– JULIANA EKLUND, 5 years (DAUGHTER OF ANDERS EKLUND, GENERAL MANAGER FOR PRODUCT

ENGINEERING IN DELIVERY CENTRE VAASA, FINLAND)

“He sits and writes at his computer all the time. Sometimes he travels and builds up a power plant. Well, he doesn’t build them by himself. He just decides who drives the hoisting crane and so on.”

– JULIA VESTMAN, 6 years(DAUGHTER OF KIM VESTMAN, PROJECT MANAGER

IN THE CUSTOMER ASSISTANCE CENTRE, FINLAND)

WHAT KIND OF ENGINE IS NEEDED TO MAKE A SHIP MOVE?

“Well, all kinds of engines: white or black. Maybe the engines are black.”

– JENNY HUHMARSALO, 4 years(DAUGHTER OF MARKO HUHMARSALO,

PROJECT MANAGER IN SERVICE PROJECTS, FINLAND)

“It is moving on the water”

– ALEKSI KAUNISMÄKI, 4 years(SON OF TAPIO KAUNISMÄKI, WORKSHOP MANAGER

FOR PART WORKSHOP IN DELIVERY CENTRE VAASA, FINLAND AND

ELINA KAUNISMÄKI, DEPARTMENT ASSISTANT IN HUMAN RESOURCES,

FINLAND)

WHAT IS A POWER PLANT NEEDED FOR?

“A power plant is needed in a ship. And if there is problem in the ship, you can go in there and get help from the plant.”

– ESSI HUHTANEN, 7 years.(DAUGHTER OF VELI-MATTI HUHTANEN, MANAGER FOR ELECTRICITY

AND AUTOMATION WITHIN PRODUCT ENGINEERING IN DELIVERY

CENTRE VAASA, FINLAND)


Imagine what passion can do.

WE JUST LOVE ENGINES.

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WÄRTSILÄ NETWORK

Lean-burn simple-cycle strikes Nevada gold

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