Methanol - Green-Marine...Methanol – An Ultra Clean Marine Fuel Solution GREENTECH 2018 –...
Transcript of Methanol - Green-Marine...Methanol – An Ultra Clean Marine Fuel Solution GREENTECH 2018 –...
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Methanol –An Ultra Clean Marine Fuel Solution
GREENTECH 2018 – Environmental ConferenceJune 1, 2018 I Vancouver, B.C.
Jason Chesko, Sr. Manager, Global Market Development, Methanex Corp.Diego Jaramillo, Manager, Quality & Responsible Care, Waterfront Shipping
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1) Methanex Corporation
2) About Methanol
3) Methanol Marine Fuel• Attributes / Business Case• Commercial Developments
4) Waterfront Shipping: Methanol dual fuel vessels – an operator’s experience
Agenda
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Methanex Corporation
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The world’s largest producer and supplier of methanol to major international marketsMethanex
Production SitesGlobal Office LocationsDistribution Terminals and Storage FacilitiesShipping Lanes
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About Methanol
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• Chemical market - essential ingredient used in countless industrial and consumer products (~55% demand)
• Fuels/oil substitution markets - represent the fastest growing demand segment for methanol (~45% demand)
An essential ingredient of modern lifeMethanol
Vehicle Fuel Marine Fuel Power Generation
Energy/Fuels Markets
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Methanol is typically made from natural gasMethanol Production
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Liquid fuel at ambient temperature & pressure
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• Production from renewables and/or utilizing excess CO2 streams• Lower carbon content fuel for Energy Efficiency Design Index (EEDI) for new vessels
Source: Methanol Institute
Methanol offers pathways to reduce CO2 emissionsMethanol Production
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Methanol Marine Fuel
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• Low emissions• Wide availability• Innovative technology with low
incremental cost • Fuel flexibility• Competitive fuel costs • Safe, environmentally friendly• Successfully in use today• Commercialization activity expanding
Methanol is an innovative alternative fuel solution with many benefitsMethanol Marine Fuel
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Source: IMO
IMO Sulphur Limits – Marpol Annex VI
IMO limits SOx content of fuel to 0.1% in ECAs. Global sulphur cap of 0.5% (from current 3.5%) to come into effect in 2020.
IMO Nitrogen Oxides Limits – Marpol Annex VI
Cleaner-burning marine fuels being phased in due to increasingly strict emissions regulationsMarine Fuel Emissions Regulations
Tier III NOx limits effective in North America in 2016 and North and Baltic effective 2021 (newbuilds only)
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Methanol is a clean-burning fuel that meets stringent environmental regulationsEmissions Reductions
Source: Stena LinesEmission reductions when compared to heavy fuel oil 12
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- Methanol significantly reduces NOx compared to diesel with current engine technology, but not quite to Tier III levels- Tier III NOx limits can potentially be met with water in methanol
Emissions Reductions – Tier III NOx
Source: MAN
EGR1 2 3SCR Water + Methanol
• R&D work underway to meet Tier III NOx with a mixture of methanol & water
• Reduce additional capital and operational expenses related to SCR/EGR after treatment
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Methanol infrastructure already in place and well positioned to reliably supply the global marine industryWide Availability
Source: Methanex
Red flags/circles represent existing methanol supply locations; lines represent rail networksMethanol global terminal locations based on available information; not a complete list
Methanol Global Terminal Locations North America Methanol Market
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Source: Stena Line
Methanol has minor modification requirements and modest incremental costInnovative Technology
New high pressure common rail system
High pressure double walled pipe High pressure
pump
Methanol tank in double bottom
Inert gas system (nitrogen)
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• Liquid fuel at ambient temperature & pressure• Low cost infrastructure • Compatible with diesel infrastructure
- Methanol is a cost-effective, liquid marine fuel alternative- Methanol offers fuel flexibility
Low-Cost Infrastructure and Capital Costs
Modest incremental cost to convert or build new engines to operate on methanol
• Engine technology straightforward/minor modifications required
• Small amount of diesel used as pilot fuel• Flex fuel (diesel or methanol) maintained
mitigating commodity price & technology risks
Utilize existing supply chain/infrastructure
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- Methanol is an economically viable alternative marine fuel over the cycle- Potential for short payback on investment based on historical fuel pricing
Cost Competitive Fuel Cost vs. Marine Gas Oil (MGO)
Chart source: Platts and IHS Chemical• Methanol: USGC spot price adjusted to energy equivalent of MGO (2.16 factor)• MGO: West Coast Average: Vancouver, Seattle, San Francisco, LA; East Coast Average: New York, Philadelphia, Norfolk, Montreal, Charleston
Marine Fuel PricingMethanol adjusted to MGO Energy Equivalency
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$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
US$ /
tonn
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North America (West Coast) MGO
North America (East Coast) MGO
Methanol (Energy Equivalent)
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North America (West Coast) MGO40542407244090741089412744145341638418204200342185423694255142735429164310043250856.8751085.1251056.51032.6251094.251020.6251046.3751080.125733.875723.875493.25622614.45000000000005558.375689.25625000000002814.25North America (East Coast) MGO40542407244090741089412744145341638418204200342185423694255142735429164310043250855.81023.61004914.575000000000051039.675969.8751027.97499999999991056.075705.47500000000002668.375420.77499999999998515.08000000000004575.88484.1638.03000000000009783.3Methanol (Energy Equivalent)40542407244090741089412744145341638418204200342185423694255142735429164310043250790.25303509050491783.38407819148927826.68649926960939818.13798551127354885.054688927701931004.00176701598391183.8722580184187793.12407245686472874.44620585900282800.30166587276392485.49241865142369459.79771355986026688.98420768497942628.97305070392724764.71051656610564846.15731343283585
US$ / tonne
Chart Data
Price Data
Platts Bunkerwire: May 22, 2018
30-Dec-09
Jesse Van Hove: Jesse Van Hove:MDO/MGO30-Jun-10
Jesse Van Hove: Jesse Van Hove:MDO/MGO30-Dec-10
Jesse Van Hove: Jesse Van Hove:MDO/MGO30-Jun-11
Jesse Van Hove: Jesse Van Hove:MDO/MGO30-Dec-11
Jesse Van Hove: Jesse Van Hove:MDO/MGO29-Jun-12
Jesse Van Hove: Jesse Van Hove:Marine Diesel Oil.31-Dec-1228-Jun-1330-Dec-1330-Jun-1430-Dec-1430-Jun-1531-Dec-1530-Jun-1631-Dec-1630-Jun-1731-Dec-1730-May-18
West Coast
Los Angeles$708$698$808$956$978$1,053$1,069$994$1,012$1,016$693$606$451$537$546$491$619$784
San Francisco$763$768$890$1,235$1,088$1,053$1,116$996$1,022$1,098$780$734$529$637$631$611$688$807
Seattle$718$713$845$1,038$1,056$1,029$1,097$1,038$1,048$1,098$671$773$494$657$640$564$731$835
Vancouver$725$765$885$1,113$1,105$996$1,095$1,056$1,104$1,109$792$783$499$657$641$569$719$832
West Coast MGO$728$736$857$1,085$1,057$1,033$1,094$1,021$1,046$1,080$734$724$493$622$614$558$689$814
East Coast
New York$680$696$843$1,030$995$902$1,040$947$991$993$626$629$355$461$532$469$616$773
Philadelphia$678$703$840$1,030$995$903$1,036$959$995$1,054$660$640$361$467$542$469$620$772
Norfolk$680$700$845$1,050$990$920$1,034$964$1,005$1,054$670$636$369$501$573$499$621$788
Montreal$913$773$916$1,043$1,100$931$1,063$994$1,128$1,084$817$732$550$630$622$468$664$810
Charleston$679$678$836$965$940$918$1,026$987$1,022$1,096$755$706$469$516$612$516$669$774
East Coast MGO$726$710$856$1,024$1,004$915$1,040$970$1,028$1,056$705$668$421$515$576$484$638$783
Gulf Coast
New Orleans$615$668$820$980$955$902$1,027$958$1,005$992$677$596$395$467$536$423$605
Houston$608$663$815$943$940$895$1,020$959$1,006$989$673$589$393$473$541$450$605
Gulf Coast MGO$611$665$818$961$948$899$1,024$959$1,006$991$675$593$394$470$539$437$605
Middle East
Kuwait$653$723$809$1,043$1,048$994$984$974$849$727$512$520$555$535$608
Fujairah$653$728$818$1,040$1,043$980$983$995$985$975$850$727$512$520$555$535$608
Khor Fakkan$653$728$818$1,040$1,043$980$983$995$985$975$850$727$512$520$555$535$608
Middle East MGO$653$726$815$1,041$1,044$980$983$994$984$974$849$727$512$520$555$535$608
Asia
Singapore$633$639$786$915$930$865$930$924$975$930$563$564$329$450$497$435$558
Hong Kong$683$663$813$953$960$834$958$921$962$923$591$568$350$458$510$453
South Korea$695$820$985$990$860$948$908$971$944$590$570$342$460$514$470$584
Shanghai$707$722$821$1,083$1,105$1,040$1,060$1,072$1,074$1,056$778$661$490$501$593$563$638
Asia MGO$674$680$810$984$996$899$974$956$995$963$630$590$377$467$528$480$593
Europe
Rotterdam$628$663$791$928$927$849$920$868$925$878$514$536$299$434$470$421$551
Antwerp$623$663$788$923$925$850$925$868$925$878$514$536$299$434$470$421$551
Hamburg$643$668$799$943$950$868$954$897$966$929$560$577$321$450$505$434$572
Europe MGO$631$664$792$931$934$855$933$877$938$895$529$549$306$439$482$425$558
Chart Data
30-Dec-0930-Jun-1030-Dec-1030-Jun-1130-Dec-1129-Jun-1231-Dec-1228-Jun-1330-Dec-1330-Jun-1430-Dec-1430-Jun-1531-Dec-1530-Jun-1631-Dec-1630-Jun-1731-Dec-1730-May-18
Average MGO Prices
North America (Gulf Coast) MGO$611$665$818$961$948$899$1,024$959$1,006$991$675$593$394$470$539$437$605
North America (West Coast) MGO$728$736$857$1,085$1,057$1,033$1,094$1,021$1,046$1,080$734$724$493$622$614$558$689$814
North America (East Coast) MGO$726$710$856$1,024$1,004$915$1,040$970$1,028$1,056$705$668$421$515$576$484$638$783
Europe MGO$631$664$792$931$934$855$933$877$938$895$529$549$306$439$482$425$558
Asia MGO$707$708$820$1,034$1,048$950$1,004$990$1,023$1,000$684$615$416$480$554$517$611
Middle East MGO$653$726$815$1,041$1,044$980$983$994$984$974$849$727$512$520$555$535$608
Methanol Prices
Methanol - USGC Spot
Jesse Van Hove: Jesse Van Hove:USGC spot methanol (FOB Houston). Source: IHS Chemical.$322$331$366$363$383$379$410$465$548$367$405$371$225$213$319$291$354$392
Methanol (Energy Equivalent)
Jesse Van Hove: Jesse Van Hove:Converted using methanol and #2 diesel low heating value BTU/kg$694$715$790$783$827$818$885$1,004$1,184$793$874$800$485$460$689$629$765$846
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Methanol is a clear, colourless liquid that quickly and naturally biodegradesMethanol - Environment, Health and Safety
• More environmentally benign than conventional marine fuels (i.e. HFO and MGO)
• Long history of methanol safe handling
• International standard (IGF Code) under development for methanol as marine fuel
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• Stena Germanica ferry converted to run on methanol in 2015
• Gothenburg to Kiel
• Powered by four Wärtsilä 4-stroke engines (24 MW total)
• Straightforward fueling (liquid fuel)
• Fuel switching (Methanol or MGO) is fast, simple and reliable. No loss in engine speed or output
• Efficiency improvements (i.e. 1-2%) versus diesel
The world’s first methanol-fuelled ferryMethanol in Use Today: Stena Germanica Ferry
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The world’s first methanol-fuelled tankersMethanol in Use Today: Waterfront Shipping Tankers
Lindanger
Taranaki SunMari Jone
Leikanger Mari Boyle
Medium Range Fleet 50,000 DWT Methanol Duel Fuel Engine Class
Manchac Sun
Cajun Sun
• Commercial-ready technology
• In 2016, Waterfront Shipping launched 7 vessels with methanol dual-fuel MAN ME-LGI 2-stroke engines
• 4 new methanol dual-fuel vessels on order for 2019 delivery
• Multiple ship owners
• Operating safely and reliably, across the globe: ~30,000 operating hours
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http://www.wlco.no/Default.aspxhttp://www.mol.co.jp/en/index.html
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Methanol Marine Fuel Commercialization Activities - Small Engine Market
Leanships(Horizon 2020) GreenPilot SUMMETH
Ministry of Transport Billion Miles
Europe Sweden Sweden China Singapore
Engine Conversion
Pilot Boat Conversion
Road Ferry Conversion
Fishing BoatConversion &
Guidelines
Harbour Tug Conversion
Ghent University, Damen Shipyards,
Methanex, Abeking & Rasmussen, Kant Marine & Industrie,
Dredging International
Swedish Maritime & Transport, SSPA
Sweden, ScandiNAOS,
Methanol Institute
Consortium of partners
(academia, technical, industry)
Ministry of Transport, Tianjin University, China
Classification Society, Methanex
Billion Miles
2015-2018 2016-2018 2015-2017 2017-2018 2018+
Methanol Fuelled Pilot Vessel, GreenPilot Project, Sweden
Swedish Road Ferry, SUMMETH Project
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Waterfront ShippingMethanol dual fuel vessels – An operator’s experience
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- 28 vessels, including 7 methanol dual-fuel vessels - 4 new methanol dual-fuel vessels on order (2019)
Waterfront Shipping
Cabo Negro II Caribbean Spirit Global Spirit Magellan Endeavour Patagonian Mystic Falkanger Finnanger
Fjellanger Sabrewing Scarlet Ibis Tamiat Navigator World Navigator Taranger
Lindanger Taranaki Sun Mari Jone Leikanger Mari Boyle
Medium Range Fleet 45,000 - 50,000 DWT
Class
Medium Range Fleet 50,000 DWT
Methanol Dual Fuel Engine Class
Handy Size Fleet20,000 to 30,000
DWT Class
Coastal Fleet1,000 to 10,000
DWT Class
Mariline Marinex Medalta Adventurer Sakhara Lotus Marit
Yelena Argo Chemist
Manchac Sun Cajun Sun
SCT Matterhorn
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Strong partnership between reliable stakeholders
Vessel concept developed together with MANDiesel & Turbo, Alfa Laval, DNV-GL and theNorwegian Maritime Directorate.
Seven ships in total from Hyundai MipoDockyard and Minaminippon Shipbuilding forMarinvest, Westfal-Larsen and MOL on longterm time charter with Waterfront Shippingowned by Methanex.
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Design Philosophy: General design decision
Primary focus in the Dual fuel system concept has been personal and system safety. Secondly, sustain engine reliability.
Main design considerationsA Gas safe engine roomA single failure results in Second Fuel (SF, Methanol) shut down or SF stopThe Methanol system must not affect the engine running on MGO/HFOThe Methanol system is an “Add-On” to the ME engine
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Methanol concept: Supply System (LFSS)
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LFSS Unit (Liquid Fuel Supply System)
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Safety features Fail Safe System - Auto change over from Secondary Fuel to
Primary Fuel Nitrogen Purging Double Walled Piping and Components Leakage Detection Continuous Ventilation Intrinsically safe components Fixed CO2 Extinguishing System CCTV Monitoring Alarms with shutdown and purging Immediate switch to conventional fuel Fire fighting on deck Fire fighting in Engine Room
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Main Engine - Overview
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Main Engine - Overview
ME-Engine + LGI Technology = ME-LGI-M
HFO/MGO Methanol Dual Fuelled
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Novel ideas based on proven technologyCentered around the MAN Ultra-long-stroke dual fuel engine (6G50ME-B9.3-LGI), ensuring a solid and reliable framework.
Designed with instantaneous, automatic fall-back to conventional fuel in the unlikely event of a disruption of methanol supply.
Able to operate at unrestricted power, equivalent efficiency, reduced emissions, with 5% pilot fuel.
Fuel Booster Injection Valves with integrated pressure booster allow for low pressure supply of methanol fuel, through double wall pipes from the Liquid Fuel Supply System on main deck.
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ME-LGI-M: Additional components compared to a standard engine
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ME-LGI-M: 4 Fuel Valves per Cylinder
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FBIV and conventional fuel injector slide valve
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Fuel Booster Injection Valve (FBIV)Sealing/ cooling / hydraulic oil
MethanolBooster (injection pump)
Injection
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Status
Currently operating on Methanol.
~30,000 operating hours
3 fuel options (HFO, MGO, Methanol): flexibility in many price scenarios
Cylinder chambers are much cleaner.
Engineering crew transfer their knowledge from conventional engines.
MAN provides LGI-M specific training to engineers
Technical improvement and learnings continue
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Thank you!
www.methanex.com
linkedin.com/company/methanex-corporation
@Methanex
VANCOUVER, CANADAJason Chesko
[email protected]+1.604.661.2680
FLORIDA, USARenato Monteiro
[email protected]+1.604.308.0400
- For more information on methanol marine fuels & supply -
Methanol – �An Ultra Clean Marine Fuel Solution ��AgendaMethanex CorporationMethanexAbout MethanolMethanolMethanol ProductionDiapositive numéro 8Methanol Marine FuelMethanol Marine Fuel�Diapositive numéro 11Emissions Reductions�Emissions Reductions – Tier III NOxWide AvailabilityInnovative TechnologyDiapositive numéro 16Cost Competitive Fuel Cost vs. Marine Gas Oil (MGO) Methanol - Environment, Health and SafetyMethanol in Use Today: Stena Germanica FerryMethanol in Use Today: Waterfront Shipping TankersMethanol Marine Fuel Commercialization Activities �- Small Engine Market Waterfront Shipping�Methanol dual fuel vessels – An operator’s experienceWaterfront ShippingStrong partnership between reliable stakeholdersDesign Philosophy: General design decisionMethanol concept: Supply System (LFSS)LFSS Unit (Liquid Fuel Supply System)Safety featuresDiapositive numéro 31Main Engine - OverviewMain Engine - OverviewNovel ideas based on proven technologyME-LGI-M: Additional components compared to a standard engineME-LGI-M: 4 Fuel Valves per CylinderFBIV and conventional fuel injector slide valveFuel Booster Injection Valve (FBIV)StatusThank you!