LNG as marine fuel - ashrae.gr · bunker suppliers unaffected –Readily available in ports –No...

International Conference “GREEN TRANSPORTATION 2016”

GREEN TRANSPORTATIONSaturday June 4, 2016 - Athens, Hellas

Nikolaos P. Ventikos, Assistant ProfessorNational Technical University of Athens

[email protected]

LNG as marine fuel

An expectation becoming a reality?


• Introduction

• LNG development drivers

• LNG compared to alternatives

• Barriers to LNG Development

• LNG Fuelled Vessels

• Instead of conclusions

Outline / Agenda

4/6/16 MARITIME RISK GROUP 2


Introduction

What is LNG?

Liquefied Natural Gas (LNG) is natural gas compressed 50 to 80 times and cooled from ambient temperature until it liquefies.

– At 𝑝 = 1𝑎𝑡𝑚, this happens at 𝑇 = −162°𝐶– 600 volumes of gas equal 1 volume of liquid



Introduction

Liquefied Natural Gas (LNG) is a mixture of hydrocarbons, predominately methane (80 – 95%).

– Alkanes – ethane, propane and butane.

– Nitrogen may also be present at levels up to 1%.



Introduction

Virtually all the LNG produced was used for:1. electricity generation, 2. industrial and commercial gas use, and 3. by residential customers.



LNG Development Drivers

LNGin the

shipping industry

Emission Control Regulations

High supply

Low priceCleaner

burning fuel

High energy content

Environmentally friendly




IMO Emission Control Regulations

• SOX (shipping accounts for 14% of SOX pollution)

– MARPOL Annex VI revision (2010)

• NOX (80% reduction from 2020 for new-builds)

• CO2 (under consideration)



Emission Control Areas (ECAs)


Baltic Sea – Annex I (SOx)2006

North Sea –Annex V (SOx)2007

North America -Appendix VII of Annex VI (SOx, NOx and PM)2013

United States Caribbean - Appendix VII of Annex VI (SOx, NOx and PM)2014




European Emission Control Regulations

• EU Sulphur Directive 2012/33/EC – 3.5% to 0.5% from 1/1/2020– eliminates the possibility to postpone the 0.5% sulphur

content after 2020

• Alternative Fuels Directive 2014/94/EU – EU wide network of refueling points (infrastructure)– Maritime ports (by 2026), inland ports (by 2031)


If IMO decides there is insufficient low sulphur fuel

available, the 0.5% sulphur limit can be delayed until 2025.

EU

IMO



LNG over qualifies for compliance

• Practically NO sulphur (0.004% by mass)

• LNG sulphur levels: 1/875th of current Heavy Fuel Oil (HFO) limits and 1/25th of future ECA limits

LNG is cheaper

• Current low oil and gas prices result largely from an oversupply in the market

Nils Smedegaard Andersen, Maersk’s CEO:“The possible use of LNG as fuel for ships presents an opportunity to reduce both SOx emissions and in reducing the transport sector’s CO2 footprint.”




LNG is in high supply

• Mid-2010s US shale gas revolution

• The biggest producers in 2013 were

Qatar (78 million tonnes)

Malaysia (25 million tonnes)

Australia (22 million tonnes)

• New producers include Egypt, Equatorial Guinea, Norway, Peru and Yemen.




However, in the long term LNG is considered as an intermediate solution with a limited time window for

application!

Angus Campbell, Managing Director of Bernhard Schulte Shipmanagement UK: “LNG will be with us for a very long time – with over 200 years supply in the ground it is sustainable, meets current and planned emission limits and, as it is a clean fuel, offers maintenance cost improvements.”


LNG


LNG compared to alternatives

Viable and realistic alternatives to LNG

Marine Diesel Oil (short term solution - next five years)

– Familiarity for ship-owners

– Commercial relations and/or general contract terms with bunker suppliers unaffected

– Readily available in ports

– No problems regarding regulations, logistics or operations



Viable and realistic alternatives to LNG

Retrofitting Exhaust Scrubbers (medium term option)



+ Ability for ship-owners to maintain their current supply practices

- Potential stability problems (installation on top of the exhaust stack)

- Fuel consumption approx. increase 1- 3%

- Higher maintenance costs and Operating Expenses

- Initial investment (€3-4 million each)



LNG advantages

• LNG retrofit is 50% cheaper than for low sulphur MDO

• LNG combustion emits around 20% less CO2 (tank-to-wheels); Some studies deem 10% reduction (well-to-wheels)

• Cleaner burning fuel means less maintenance and lower costs




Cleaner alternatives

• Ship electrification

– Rapid developments but many issues to be resolved (e.g. energy storage etc.).

• Wind and Solar energy

– Will augment fuels, such as gas or oil, but are unlikely to replace them.

– Electricity production for cold ironing and to charge batteries for fully electric and hybrid ships.

• Biofuels (methanol)

• Hydrogen cells (abundant source but experimental)



Barriers to LNG development

Limited availability (chicken-and-egg problem)

Lack of existing LNG infrastructure (bunkering facilities)

Required initial investments (propulsion and fuel handling systems and bunkering facilities)

Safety Requirements

Bunkering, maintenance, commercial operations

Skilled and trained crews

Fragmented regulatory framework

Address every part of the supply chain (Transportation, storage, bunkering, LNG as fuel)




Cost of new-building

According to DNV GL the cost of building a new LNG-fuelledvessel can be up to 30% higher than for vessels running on conventional fuels

Ship design issues

Smaller energy density (22.2 MJ/m3) compared to petroleum fuels (35 – 40 MJ/m3) means larger tanks are required

Space limitations

Reduction of cargo space




Existing Terminal Infrastructure




Existing Bunkering Infrastructure


Europe - Ports of Antwerp, Amsterdam, Rotterdam, Stockholm and Zeebrugge. Norway - Ports of Bergen, Florø, Karmøy, Oslo and Risavika/Stavanger.

South Korea - Port of Incheon

Source: WPCI



Risk and Safety Considerations

Important risk-related items to consider include:

– High energy content of the LNG tank

– Explosion hazard in case of gas leakage

– Extremely low temperatures of the LNG fuel (areas at risk must be protected against accidental LNG spills using drip trays and/or water curtains)

– Location/arrangements of system

– Hazardous vs. non-hazardous spaces

– Inexperienced crew (new fuel source)




Risk and Safety Considerations


LNG spills tend to leave fewer lasting environmental impacts than marine oils

Source: SSPA



Regulatory Framework

• IMO Interim Guidelines (MSC Resolution 285.(86)/2009)

• IMO IGF Code

– safety and operational issues for gas-fuelled seagoing vessels

– The IGF Code is currently being finalized and is expected to be released in the next version of SOLAS (Safety Of Life At Sea) in 2017.

• ISO Technical Committee 67, Working Group 10

– Development of international guidelines for bunkering of gas-fuelled vessels




Regulatory Framework

• Guidelines from Classification Societies

• Existing guidelines for handling and transport of LNG as cargo may be amended and adopted

– International Society of Gas Tanker and Terminal Operator (SIGTTO)

– International Oil companies Marine Forum (OCIMF)





Class Date Title

ABS May 2011Guide for propulsion & auxiliary systems for gas-fuelled ships

BV May 2011 Safety rules for gas-fuelled engine installations in ships

DNV Oct. 2010 Gas-fuelled engine installations

GL May 2010 Guidelines for the use of gas as fuel for ships

KR July 2012 Guidance for gas-fuelled ships

LR July 2012Rules and regulations for the classification of natural gas-fuelled ships

NK Feb. 2012 Guidelines for the issuance of ship fuel gas

PRS July 2012Guidelines on safety for natural gas-fuelled engine installations in ships

RINA June 2011 Rules for the classification of ships


LNG Bunkering System

How can an LNG fuelled vessel be bunkered?


1. Directly from LNG Terminal (Shore-to-Ship)

2. Road Tankers (Truck-to-Ship)

3. Bunker vessels (Ship-to-Ship)

4. Containerized LNG (20 or 40 foot Type C Tank inside a container frame)



LNG Containment

System

Transfer System

Control System for

transfer


Type Description

IMO Type C Tanks Avoids venting any cold gas

Moss Rosenberg spheres • Extremely robust in terms of strength

and operability • Take up very large amounts of space

Prismatic type B (SPB) Tanks Self-supporting

Membrane containment systemsThin metallic barriers supported by the strong hull structure via load-bearing insulation



The transfer system consists of:

• valves;

• a flexible piping system

• safety valves;

• a connector system to the ship’s pipework;

• control system.


LNG Containment

System

Transfer System

Control System for

transfer



Best practice is to connect the two LNG tanks and control systems to:

• allow each side to monitor the filling process

• prevent any hazardous scenarios

– over-filling

– over-pressurization


LNG Containment

System

Transfer System

Control System for

transfer


LNG Fuelled Vessels

Most suitable ship types

• Ships navigating on fixed route

– Car/passenger ferries

– Offshore supply vessels

– Ro-Ro Ferries

• Ships with large deck area

– Oil tankers

– Chemical tankers


Bunkering and ship design are much easier

• Space available for LNG storage tank

• Reduction of cargo tank loss


LNG Fuelled Vessels

Operating vessels and confirmed orders


77 LNG fuelled vessels already in operation


LNG Fuelled Vessels

Operating vessels and confirmed orders


85 confirmed LNG fuelled newbuilds


LNG Fuelled Vessels

Expected developments


Stage 1

• Short sea ships in ECAs with fixed routes (Ro-Ro Ferries, Product Tankers)

• Inland ships

Stage 2

• Deep sea liners (Containerships)

• Mostly new-buildings - retrofitting appears very challenging

Stage 3

• Around 2025 LNG in North American, European and Asian ports

• VLCCs and Bulk Carriers may not convert due to route flexibility requirements


• LNG is the most promising alternative for the shipping industry to comply with new regulations and reduce environmental footprint.

• Momentum is building for overcoming the chicken and egg problem the industry is facing.

• Many techniques have already been developed for bunkering of LNG fuelled vessels.

• Still fragmented regulatory framework needs to include every part of the supply chain.

In stead of conclusions



Thank you for your attention!

Nikolaos P. Ventikos

[email protected]

LNG as marine fuel - ashrae.gr · bunker suppliers unaffected –Readily available in ports –No...

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