LNG Part ofMarine Fuels Webinar Week29 June-3 July 2020

Presentation documents:Page 2: Peter Keller, SEA-LNGPage 6: Daniel Kemp, EMERSON

Advocates for LNG as a Marine Fuel

Marine Fuels Webinar30th June 2020

• LNG is a clear winner on Air Quality essentially eliminating SOx and dramatically (90%+) reducing NOx and PM thereby improving human health

• LNG offers a Decarbonization pathway with EEDI to 2030 and through Bio and Synthetic Methane to 2050

• Proven Safety record over 50 years operationally

• LNG is Available Now and Scalable

• Global Supply far exceeds marine fuel demand

• Existing global bulk infrastructure well aligned with major shipping routes

• “Last Mile” bunkering infrastructure building out fast in most major bunkering ports

• Bunker vessels - Over 30 expected in operation in the next two years

• LNG is the only alternative fuel that can enable the shipping industry to remain competitive while phasing-out emissions this century.

The Value of LNG as a Marine Fuel

. LNG is commercially competitive and provides exceptional optionality

• LNG is a mature commodity, highly competitive with less price volatility than conventional fuels

• On a ton for ton basis, LNG has roughly 20% more energy density than conventional fuels

• Compared to unproven alternative fuels such as Renewable Ammonia, LNG has about twice the energy density, therefore much less cargo opportunity cost

• Modern engine technology on the latest Duel Fuel engines can:

• Operate on LNG with pilot fuels less than 1%, exceptional improvement from earlier engines

• Use multiple fuels such as Bio LNG, Liquid Synthetic Methane and Renewable Ammonia

• Methane slip continues to be reduced with significant impact:

• Virtually no slip with High-pressure engines• Low-pressure engines advancing fast – WinGD’s latest engine

technology reduces slip by 50%

The Value of LNG as a Marine Fuel

Our Program. The Investment Case

• Published Multiple Investment Assessments to Inform the Market• LNG Best Return over a 10 Year Horizon

• The Emissions Case• Spehra (thinkstep) LNG GHG Lifecycle Assessment shows 21% in GHG with

LNG on a well to wake basis• DNVGL Alternative Fuels Study • CE Delft Liquid Bio and Synthetic Methane Report shows future opportunity

• The Infrastructure Case• Port Bunkering Case Studies• Bunker Navigator

• Engaging and Informing Key Stakeholders• Regulators and Policy makers• Commercial Influencers – CBI Green Bonds Response• Working with a variety of International and Regional Associations

• Collaborate, Communicate & Demonstrate

We can make a difference nowWaiting is not an option

Hafenamt Bremerhaven

Emerson Confidential 1

Marine Fuels WeekTimely and practical insights on the viability of LNG as a marine fuel

Daniel KempBusiness Development Manager,Marine Solutions,Emerson

Emerson Confidential 2

LNG as a Fuel

Custody Transfer Standards

Application & System Complexity

• Need for engine optimisation

• Monitor of composition

• 2.3% to 4.1% estimate

• Key gas OEMs• AP yards releasing in

house designs • Package costs are

reducing

• Industry standards in their infancy

• No formal transparency in energy content

• Quanity and Quality• Fragmented custody

transfer standards• Certified Body

Methane Slip

Energy Content Measurement

Emerson Confidential 3Emerson Confidential 3

LNG drivers and growth

Global avalibility and owner adoption

Cleaner, greener and easier LNG Fleet size growth • IMO 2020 low sulfur, >20% less CO2• Port LNG expansion increased availability • International bunkering standards MID and

TR56 in cryogenic applications• Cost of LNG as a solution is reducing

• Increase number of none-LNGC fuel vessels on the increase 9%OB, 18% OBG*

• Large newbuild projects by CMA, and Cruise• Cross-industry molecule – bunker – owner

projects

Source: ClarksonSource: Clarkson

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LNG density and slip

Gain Energy Insight to Increase Fuel Efficiency (Operators) or Quality assurance (Bunker Companies)

Energy density and composition• Normally gas composition

is assumed constant• However gas composition

is NOT constant, challenge to know correct energy content, as– LNG from multiple

grades– Tank mixing of various

LNG grades

• Live gas analysis grants complete insight into gas composition and energy content

• Methane number data to reduce knocking and Methane Slip

• Gas composition and energy content incorporated on Bunker Delivery Note

Combustion and methane lipHigh grade

Low grade

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Infrastructure future – Investments

Proven network for the Industry

Ship to Ship bunkering • Large and small bunker barges in operation • 7,500m3 and upwards• Continued apatite for growth driving

newbuilds• Liquid and vapor return measurement • Strategic investment by port to compliment• 19 + barges in operation• 23 on order

New reality • Fleet growth downgraded• What will the fuel mix be?

Sour

ce: C

lark

son

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Let’s connect

Daniel KempBusiness Development Manager, Marine SolutionsEmerson Automation Solutions Daniel.kemp@emerson.com+44 797 3901 669

Go to www.emerson.com/marine for more information