FUEL FLEXIBILITYTHE NEXT CHALLENGE FOR THE POWER GENERATION INDUSTRY

MATTEO NATALIMARINE APPLICATIONS

ENGINES SALES

LNG1811-16 APRIL 2016

PERTH, AUSTRALIA

YESTERDAY

DIESEL

OIL PRICE

100$/BARREL

CRUDE OIL PRICE – 2006 TO 2014

0

25

50

75

100

125

150

2006 2007 2008 2009 2010 2011 2012 2013 2014

US

D/B

AR

RE

L

EIA SHORT TERM ENERGY OUTLOOK, MARCH 2016

EMISSIONS RULES

ECA ZONES

EMISSION CONTROL AREAS

ECA

POSSIBLE FUTURE ECA

TODAY

DUAL FUEL

HIGH EFFICIENCY

LOW OPEX

ANNUAL GAS CONSUMPTION

HFO + SCR + SCRUBBER LNG

24% SAVINGS

77MW DFDE CRUISE SHIP, 7200 HRS/YEAR

LOW EMISSIONS

IMO TIER III

EMISSIONS – HFO ENGINE VS DF ENGINE

0%

20%

40%

60%

80%

100%

CO2 NOx SOx PARTICULATES

FIRST

OSV & LNGC

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ACTIVE FLEET ORDERBOOK

NU

MB

ER

OF

100K

+ C

BM

LN

GC

DFDE 2S DIESEL 2S GAS STEAM TURBINE

LNGC ACTIVE FLEET AND OB

CLARKSONS JANUARY 2016

THEN

FERRY & TUG

0

5

10

15

20

25

30

35

40

45

IN OPERATION ON ORDER

LNGC ACTIVE FLEET AND OB

DNV GL 2015, LNG CARRIERS AND IWW NOT INCLUDED

NOW

ALL SHIPS

SAILING GAS FUELLED VESSELS

0

50

100

150

200

250

300

350

2014 2015 2016 2017 2018 2019 2020

INDUSTRY LEADERS

WÄRTSILÄ

POWER PLANTS

350+ ENGINES | 4900+ MW | 75+ PLANTS

SPECIALS

60+ ENGINES

FERRIES - 9 SHIPS

TUGS - 6 SHIPS

OTHER - 7 SHIPS

RETROFITS

25+ ENGINES

FPSO - 4 SHIPS

RORO - 2 SHIPS

OTHER - 3 SHIPS

OFFSHORE

120+ ENGINES

OSV - 31 SHIPS

FPSO - 10 SHIPS

OTHER - 3 SHIPS

MERCHANT

850+ ENGINES

LNGC - 200 SHIPS

MULTIGAS - 8 SHIPS

OTHER - 4 SHIPS

1400+ ENGINES

14 000 000+ RUNNING HOURS

TOMORROW

?

OIL FUTURE PRICE

UNCERTAIN

CRUDE OIL PRICE – 2014 TO 2016

0

25

50

75

100

125

150

2014 2015 2016 2017

US

D/B

AR

RE

L

IRAN SANCTIONS ?

GEO-POLITICAL SITUATION ?

SUPPLY & DEMAND BALANCE ?

GLOBAL GDP GROWTH ?

US FRACKING ?

ETC…

EIA SHORT TERM ENERGY OUTLOOK, MARCH 2016

OIL & GAS REFINERY

BYPRODUCTS

HYDROCARBON GAS LIQUID PRODUCTION

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

2012 2013 2014 2015 2016 2017

MIL

LIO

N B

AR

RE

LS

PE

R D

AY

AT

NA

TU

RA

L G

AS

PLA

NT

SA

T R

EF

INE

RIE

S

BUTANES/BUTYLENES

PROPANE/PROPYLENE

ETHANE/ETYLENE

NATURAL GASOLINE

BUTANES

PROPANE

ETHANE

EIA SHORT TERM ENERGY OUTLOOK, MARCH 2016

We believe in fuel flexibility

UPGRADE PACKAGE

MOVE TO DFNEW COMPONENTS

TURBOCHARGERS RE-MATCHING

PISTONS AND PISTON RINGS

AIR DRIVEN STARTING MOTORS

CYLINDER HEAD AND LINERS

EXHAUST GAS WASTEGATE

CONNECTING RODS

CAMSHAFT PIECES (MILLER)

PILOT FUEL SYSTEM

GAS FUEL SYSTEM

ENGINE CONTROL SYSTEM

GAS VALVE UNIT

DIESEL TO DF ENGINE CONVERSION

DF ENGINES

ETHANESCOPE OF SUPPLY

2x 6L50DF

2x 6L20DF

SHAFT

SHAFT GENERATOR

TCH350 TWIN IN-SINGLE OUT GEARBOX

4E1540 CPP

CARGO HANDLING PLANT

FUEL SUPPLY SYSTEM

EVERGAS – 8x 27 500CBM MULTIGAS CARRIERS

DIESEL ENGINES

METHANOL

STENA GERMANICA CONVERSION

CONVERSION SCOPE

4X 8ZAL40S ENGINES CONVERTED FOR METHANOL

(NEW CYLINDER HEADS, INJECTORS, COMMON RAIL

SYSTEM AND HP METHANOL PUMP WITH OIL UNIT

DOUBLE WALLED HIGH PRESSURE FUEL PIPES

BALLAST TANK CONVERTED TO METHANOL TANK

HIGH PRESSURE PUMP ROOM

TRANSFER PUMP ROOM

DIESEL CYCLE SELECTED – PROS AND CONS

NO KNOCKING (DIESEL COMBUSTION)

LOW THC, CO AND FORMALDEHYDE

GOOD BACK-UP PERFORMANCE

NO POWER REDUCTION

GOOD LOAD ACCEPTANCE

COST EFFECTIVE

HFO PILOT FUEL

NOX HIGHER THAN DF

NOX DEPENDS ON PILOT FUEL FOR IGNITION

FUEL SHARING AREA

FUEL SHARING

LOW MN GAS

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

FU

EL O

IL/G

AS

RA

TIO

[%

]

LOAD [%]

GAS REFORMER

APG, LPG,

NGL, VOC, …

GAS REFORMER PROCESS

Matteo NataliMarine Applications, Engines Sales

Mobile: +39 340 883 1319

Mail: matteo.natali@wartsila.com