04-04-2019Fuel 2020 and GI / LGI

Mevlüt Civelek

Manager

MAN ES, Sales and Promotion

MAN Energy Solutions

ExpoShipping ExpoMaritt

Volkswagen Group12 brands

MAN Energy SolutionsSystem Supplier for the Maritime Industry

MAN Energy Solutions – Out of one hand:

MAN 2-stroke dual fuel main engine Emission after treatmentTurbocharger

LNG tanks Fuel gas supply system

Auxiliary dual fuel GenSets

Propulsion systemMAN PrimeServ

Most comprehensive engine programme Diesel engines from 450 kW to 82,440 kW

Four-stroke engines 450 -

21.600 kW Two-stroke engines 1950 - 82.440 kW

294Comparison

(number VW Golf

TDI)

195747

Drivers; All about legislation;NOx Emission Control Areas (NECA)Sulphur Emission Control Areas (SECA)

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

Fuel Sulphur Content (Equivalent) [%]

2008 2010 2012 2014 2016 2018 2020 2022

NOx [g/kWh]

Tier I

Tier III

Tier II

in ECAs

in ECAs

General

All vessels (old and new)

Only newbuildings

We are here

Less than 500 days…

Scrubbers

US-ECA N-EU-ECA

Drivers; All about legislation;NOx Emission Control Areas (NECA)Sulphur Emission Control Areas (SECA)

2021 NOx ECA, agreed at MEPC70

October 2016

Note: Thus far no NOx ECAs which are not also SOx ECAs.

Waters within 200 nautical miles

from the coast of USA, and Canada.

Global: Max. 3.5% S

2020: Max. 0.5% S

2016: 0.5%S SECA

parts of Chinese waters

2015: max. 0.1%S SECA

NOx

TIER III

in ECAs

SCR EGR

SOx

2020 Global

Single fuel Scrubber Multi Fuel

CO2

EEDI

Fuel efficiency, New technologies, Low CO2 impact fuels

Market Drivers - Emissions Regulation

Which fuels will be used in 2020 and beyond?

ME-GI / ME-LGI engine

Dual Fuel:

LNG, Ethane, LPG,

MeOH ……..

MC/ME/-C engine

Single Fuel:

0.10%S fuel, 0.50%S fuel

MC/ME/-C engine

0-50%S fuels:

HFO/MDO + Scrubber

Compliant fuel High-Sulphur fuel

Cermet-Coated PistonRings for Operation on Low-Sulphur Fuels (0.5% S or lower) for Fuel 2020

BP prediction of fuel in the future

Source BP p.l.c., not to be reproduced without BP’s permissionInitial reaction period

20 %

47 %

26 %

MDT cal.

3 %

Which

technology?

Logistical issues

with bunkering and

emptying of tanks?

Space

requirements in

engine room?

Which SOx

compliance

strategy?

Which fuels?

Ammonia as

fuel?

First cost of

equipment?

Operation

Cost?

A time of uncertaintyCO2 reduction?

EEDI?

Michael Jeppesen – Platts Fuel Conference, Athens November 2018

Factors influencing the choice of fuel

Fuel choice

CAPEX and

OPEX

Legisla-tion

Logistics

Flexibility

(dual fuel)

Sustain-ability of

fuels

Fuel price

Distillates

ULSFO

LNG

Ethane

LP

G

Me

tha

no

l

Bio

fue

l

Heavy fuel

Fuel Types

Residual

ME / MC

Distillates

ME / MC

ULSFO

ME / MC

Methane

ME-GI

Methanol

ME-LGIM

LPG

ME-LGIP

Ethane

ME-GIE

Biofuel (2nd+3rd gen.)

ME / MC

MAN Diesel & Turbo supports all

Fuel Types

1,5 g

7 g

18 g

224 g

Ship

Train

Truck

Plane

Comparing Transport EfficiencyFuel consumption per tonne-kilometers

Fuel needed per 1km transport of 1 ton of goods

Where does the fuel come from & what will it be?

• The fuels come from the refineries, various blend plants and many suppliers

• Many kind of different streams will be used

• The fuels in 2020 will most probably be blended to comply with ISO 8217

Examples of 0.50% S fuels

• Blends of residuals

• Hydro-treated residuals

• Heavy fractions from hydro-crackers

• Lighter hydro-treated fractionsVarious fuel

grades of very

high density

Where does the fuel come from & what will it be?

• The fuels come from the refineries, various blend plants and many suppliers

• Many kind of different streams will be used

• The fuels in 2020 will most probably be blended to comply with ISO 8217

Examples of 0.50% S fuels

• Blends of residuals

• Hydro-treated residuals

• Heavy fractions from hydro-crackers

• Lighter hydro-treated fractionsVarious fuel

grades of very

high density

Where does the fuel come from & what will it be?

• The fuels come from the refineries, various blend plants and many suppliers

• Many kind of different streams will be used

• The fuels in 2020 will most probably be blended to comply with ISO 8217

Examples of 0.50% S fuels

• Blends of residuals

• Hydro-treated residuals

• Heavy fractions from hydro-crackers

• Lighter hydro-treated fractionsVarious fuel

grades of very

high density

Where does the fuel come from & what will it be?

• The fuels come from the refineries, various blend plants and many suppliers

• Many kind of different streams will be used

• The fuels in 2020 will most probably be blended to comply with ISO 8217

Examples of 0.50% S fuels

• Blends of residuals

• Hydro-treated residuals

• Heavy fractions from hydro-crackers

• Lighter hydro-treated fractionsVarious fuel

grades of very

high density

IMO – Delft report2020 -> Challenges - new 0.50%S as modelled by CE Delft

ISO 8217 WG:

Injector deposits

Instability – in the fuel

Compatibility

– between fuels

Cat fines (Al+Si)

We can learn from the SECAs ULSFO ≤ 0.10% Sulphur fuels

There are a range of different types fuels

These are not distillate types, rather new blends or types

General characteristics are:

Higher viscosity than distillate

Some contain cat fines (Al+Si)

Some have high pour points

Compatibility with other fuels may also be an issue.

Service letter

SL2014-593

ISO 8217:2017(E)Specification for Distillate & Residual Marine Fuels

Petroleum products — Fuels (class F) — Specifications of marine fuels, Tables 1 and 2 are reproduced with the permission of the International Organization for Standardization, ISO. This standard can be

obtained from any ISO member and from the Web site at www.iso.org. Copyright remains with ISO.

2020: Fuel and lube test plan

In order to prepare for the new types of 0.50%S fuels, test

engine, service tests and lab tests will be carried out.

This will be done in collaboration with lube oil suppliers,

fuel oil suppliers, ISO 8217 WG, CIMAC WG Fuels, ship

owners and other relevant partners.

Potential challenges:• Fuel:

a. Technical:

i. Stability

ii. Compatibility

iii. Ignition – knocking

iv. Burn out – deposits

b. Commercial:

i. ISO 8217 -> ISO/PAS or CIMAC

• Lube:

a. Deposit

b. Corrosion – how much?

c. Smearing Feedback from the market?

Overview of damages Found in two-stroke engines and small four-stroke Gensets

Damages found in two-stroke engines Damages found in small four-stroke Gensets

Wear in combustion chamber parts Wear in fuel equipment

Resulting in high wear Resulting in poor combustion

Cleaning of fuel: Remove cat finesSL2017-638

Sample positions

Cleaning of fuel: Remove cat finesSL2017-638

Cleaning of fuel: Remove cat finesSL2017-638

Best practice for cleaning of fuels

– Separator operation

• High temperature

• Low flow

Separator layout:

0.23 l/kWh in relation to CFR

Cleaning of fuel: Remove cat finesSL2017-638

10 µm filter as

standard

Fuel Oil Cleaning, Systems and RequirementsDatabase with Replica Examination

Replica examinations of cylinder liner running surface show:

Size distribution of cat fines: 0-30 µm

Most cases show a size distribution of 5-25 µm

A 10 µm filter will indicate insufficient fuel cleaning

→ Crew should improve fuel cleaning

Service experience shows that a10 µm filter before the engine reduces risk of experience high wear from cat fines. Most probably

because the crew is alerted before major damage occur.

MAN

Green Power for Fuel 2020

MAN

Green Power for Fuel 2020

Summary Future fuels

1. Max. 0.1% S fuels

a. Distillate

b. More ULSFO

2. Max. 0.5% S fuels

a. Very diverse properties

b. Challenges similar to ULSFO

3. High-S fuels

a. Up to 4.5-5% S

4. Alternative fuels

a. LNG

b. Methanol, LPG, Ethane, biofuel,…

5. Cat fines (Al+Si) are and will be in the fuels and they have to be removed. Service Letters

SL2014-587

SL2014-593

SL2015-604

SL2016-633

SL2017-638

<0.10 %S Ultra Low Sulphur Fuel Oils (ULSFO)Conclusions 1

1. SL2014-593 still holds. Viscosity, density, pour point, cat fines! ULSFOs are different from

distillates!

2. ULSFOs are a very heterogeneous group of fuels. There are several types.

3. The fuels are made/blended so they fit in to a fuel grade in the ISO8217.

4. The fuels generally show lower viscosity and density than what the Bunker Grade states.

5. The pour point of the fuels seems to be the deciding factor of which Bunker grade the fuel shall be sold

as.

6. Most ULSFO are sold as RMD.

<0.10 %S Ultra Low Sulphur Fuel Oils (ULSFO)Conclusions 2

7. Heat tracing of the pipes and tanks is highly advisable. Please note that some fuels are formulated with a

pour point depressant to ease the handling.

8. There is no indication of that these fuels would cause any large issues to the engine.

9. Also see SL2017-638 for fuel cleaning

10.However, some deviating quality fuel is out in the market. Analyse the fuel carefully and always keep the

crew informed so they have a chance to act.

Learning how to handle the ULSFOs of today will help us to manage the fuels of tomorrow. Preparation is

the key.

The marine fuels of tomorrow will be diverse group and they may not all play well together so…..

Cylinder Condition

Liner

CorrosionLiner Polish

High liner wear

Piston ring wear

Piston ring land deposit

Low liner wear (?)

Low piston ring wear

Piston topland deposit

LINER SCUFFING

The balance to avoid liner polish and liner corrosion

Which influence will the choice of fuel have at the engine design/ application ?

Introducing Full cermet coated

ring packs for ULS operations.LDCL

RDL

LinersChoice of Cylinder lube oil

Cylinder LubricationGuidelines

In the beginning of March 2014

Introducing:

ACC100 (BN 100) range

0.40-0.20 g/kWh x S% for Mk. 8-8.1 and newer

ACC70 (BN 70) range

0.34-0.20 g/kWh x S% for Mk. 7 and older.

SBJ-LEO 3339346.2014.05.02

MAN Investigation of Scrubber Technology

Objectives Participants Scrubber Goals Test results Ship test Ship test

Development

and test of

scrubber for

after-treatment

Clean Marine

MAN Diesel

PM trapping:

>90%

SOX removal:

>67%

PM trapping:

35%

80% (salts add.)

SOX removal:

73%

95% (salts add.)

M.V. Banasol

7S50MC-C

9MW

Development

and test of

scrubber for

after-treatment

Aalborg Industries

Alfa Laval

DFDS

MAN Diesel

PM trapping:

>75%

SOX removal:

>95%

PM trapping:

79%

SOX removal:

100% (NaOH)

Tor Ficaria

9L60MC-C

20MW

Development

and test of

scrubber for

after-treatment

and EGR

APM

MAN Diesel

PM trapping:

>75%

SOX removal:

>90%

PM trapping:

73%

SOX removal :

96% (NaOH)

Alexander

7S50MC

9MW

Tests and future

Prediction regarding the use of Scrubbers in 2020 and beyond

2020 2025 2035

Number of ships with scrubbers 1,800 5,100 16,000

% of global fleet with scrubbers 2 4 13

Million tons HSFO scrubbed p.a. 6 20 72

Cumulative investment $billion 6 18 66

The relatively low number could be because of : Shortage of investment funds and obtaining a return

Lack of confidence in future price differential between fuels

Still some lack of technology confidence

Uncertainty of future environmental regulations and enforcement

Source: Robin Meech

Public

NOx SOx PM CO2

LNG 20-30% 90-99% 90% 24%

LPG 10-15% 90-100% 90% 13-18%

Methanol 30-50% 90-97% 90% 5%

Ethane 30-50% 90-97% 90% 15%

– Compared with Tier II engines on HFO

– Based on estimates

– Tier III can be met with EGR or SCR

MAN B&W Multifuel Engines New fuels - emissions

Strictly confidential

ME-GI engineFlexible Dual Future - MAN B&W ME-GI Engine - YouTube.mp4

GI components

Strictly confidential

ME-GI ConceptCombustion Concept

Direct injection of pilot oil and gas

Yellow = pilot oil

Blue = gas

Conventional slide fuel valve

Gas fuel valve

Gas distribution channel

Gas block

Gas chain link double-walled pipes

1

2

3

4

5

6

1

2

3

4

5

6

Strictly confidential

FGSS with PVUNon LNGC

Hyd. supply

PVU

Public

– Highest thermal efficiency

– Lowest unburned hydrocarbons

– Largest range of available fuel types

– Best controlled combustion under all dynamic and ambient conditions

The MAN B&W ME-GI and GI engineTwo-stroke market – Dual fuel contracting of total contracting

Rene Sejer Laursen – ME-LGPI event – 2018 03.09.2018

Strictly confidential

The dual fuel options

ME-LGI

Available for LPG and Methanol

ME-GI

Available for NG and Ethane

Strictly confidential

ME-GI Gas Fuel Mode Port to port in dual fuel mode

Fuel oil only mode

Operation profile as conventional engine

Dual fuel operation mode

No fuel slip

No knocking problems

Insensitive to gas fuel

Unchanged load response

Automatic

Strictly confidential

Confidential

Total dual fuel engines including options 244 engines

Total power main engine 4.9 GW

Total dual fuel 2-Stroke in service 55 engines

No. of engines Engine type Mk. Gensets

5 S 90 ME-C-GI 10.5

12 G 90 ME-C-Gl 9.5, 10.5

4 S 80 ME-C-GI 9.5

6 S 70 ME-C-GI 7, 8.2, 10.5 6 x 9L28/32 DF

148 G 70 ME-C-GI 9.2, 9.5, 10.5 8 x 7L35/44 DF

5 L 70 ME-C-GI 8.2 15 x 9L28/32 DF

2 S 60 ME-C-GI 10.5

8 S 50 ME-C-GI 8.2, 9.5

5 G 50 ME-C-GI 9.5 8 x 7L28/32 DF / 4 x 5L28/32 DF

4 G 45 ME-C-GI 9.5 4 X 5L23/30 DF / 8 x 8L23/30 DF

11 G 50 ME-B/ME-C –LGIM 9.3, 9.5, 10.5

3 S 50 ME-B-LGIM 9.3

18 G 60 ME-C-GIE 9.5

3 G 50 ME-C-GIE 9.5

10 G 60 ME-C-LGIP 10.5

Methane

Ethane

Methanol

LPG

17/08/2018 RASA/SEL

Orders Including Options

Strictly confidential

New MAN B&W Dual Fuel Engine Orders

World’s first LPG powered VLGC for Exmar

Hanjin Heavy Industries has announced that it will construct 2 × VLGCs (Very Large

Gas Carriers) in Korea for EXMAR, the Belgian energy-supply-chain provider. The

79,500-m3 newbuildings will each be powered by individual MAN B&W 6G60ME-LGIP

Mk9.5 engines

Strictly confidential

The new MAN B&W ME-LGIP Engine

16.01.2019ME-LGIP Engine – ©2019 49

ME-LGIP auxiliaries – LR1 Tanker – with large capacity fuel storage tank(s)

Strictly confidential

The new MAN B&W ME-LGIP Engine

16.01.2019ME-LGIP Engine – ©2019 9

ME-LGIP auxiliaries – LR1 Tanker – with large capacity fuel storage tank(s)

Strictly confidential

The new MAN B&W ME-LGIP Engine

16.01.2019ME-LGIP Engine – ©2019

ME-LGIP auxiliaries – VLGC – with fuel service tank

Fuel Preparation Room Knock Out Drums

Nitrogen System

Fuel Service Tank

Fuel Valve Train

Low-flashpoint Fuel Supply System

Strictly confidential

The new MAN B&W ME-LGIP Engine

16.01.201

9ME-LGIP Engine – ©2019 52

ME-LGIP auxiliaries – VLGC – with fuel service tank

Strictly confidential

The diesel cycle Fully stable combustion under all weather condition.

Heavy weather condition:

Full operational in gas mode

No risk of knocking or misfiring

High efficiency without methane slip is maintained

Higher ambient temperature :

Full operational in gas mode

No risk of knocking or misfiring

High efficiency without methane slip is maintained

Diesel cycle superior performance and efficiency compared to market’s competition!

Strictly confidential

ME-GIE EnginesHartmann

GasChem Beluga, commissioned on gas March 2017

GasChem Orca, commissioned on gas July 2017

Per March 2018:

Beluga * and Orca** have accumulated more than 10,000 Hours on Ethane

*) On the latest voyages Beluga was 99% of the total

voyage time running on Ethane

**) On latest two voyages Gaschem Orca, 97% of time running on Ethane gas

All data provided in this document is non-binding.

This data serves informational purposes only and is especially not guaranteed in any way.

Depending on the subsequent specific individual projects, the relevant data may be subject to changes and

will be assessed and determined individually for each project. This will depend on the particular characteristics

of each individual project, especially specific site and operational conditions.

Disclaimer