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02 2013 Twentyfour7. WÄRTSILÄ TECHNICAL JOURNAL ENERGY A mega size power plant project Constructing two 215 MW dual-fuel plants on the same site 4 48 25 A new service agreement solution Preventing the unexpected for peaking power plants Assessing competence A new insight into professional skills management MARINE Introducing the Wärtsilä X82 Better fuel efficiency for VLCCs 30 COVER STORY page 42 INCREASING FLEXIBILITY in LNG fuel handling
Transcript
Page 1: In-Detail-02-2013

022013Tw

en

tyfo

ur7.

WÄRTSILÄ TECHNICAL JOURNAL

ENERGY

A mega size power plant project Constructing two 215 MW dual-fuel plants on the same site

4

48

25 A new service agreement solution Preventing the unexpected for peaking power plants

Assessing competence A new insight into professional skills management

MARINE

Introducing the Wärtsilä X82 Better fuel efficiency for VLCCs

30

COVER STORY

page42INCREASING

FLEXIBILITY in LNG fuel handling

Page 2: In-Detail-02-2013

DEAR READER

issue no. 02.2013 in detail

E-mail and feedback: [email protected]

2 in detail

Constructing a mega size power plant . . . . . . . . . . . . . .4

Emphasising flexible power generation . . . . . . . . . . . . .9

A future market design for European systems . . . . 12

Flexible energy eases the integration of renewables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

A new service agreement solution . . . . . . . . . . . . . . . 25

Enabling fuel efficiency with the Wärtsilä X82 . . . . 30

Increasing flexibility in LNG fuel handling . . . . . . . . . 42

How do we know what you know? A perspective on professional skills . . . . . . . . . . . . . . 48

Effective implementation of SEEMP . . . . . . . . . . . . . . 54

Wastewater treatment in the marine industry . . . . 61

Publisher: Wärtsilä Corporation, John Stenbergin ranta 2, P.O.

Box 196, FIN-00531 Helsinki, Finland | Editor-in-Chief: Marit

Holmlund-Sund | Managing editor and editorial office: Maria

Norrlin-Asplund | English editing: Tom Crockford, Crockford

Communications | Editorial team: Patrick Baan, Marit Holmlund-

Sund, Christian Hultholm, Dan Pettersson, Minna Timo, Marialuisa

Viani, Tarja Vuorela, Virva Äimälä | Layout and production:

Otavamedia Ltd., Helsinki, Finland | Printed: October 2013 by

PunaMusta, Joensuu, Finland ISSN 1797-0032 | Copyright ©

2013 Wärtsilä Corporation | Paper: cover Lumiart Silk 250 g/m²,

inside pages UPM Fine 120 g/m²

ENERGY

MARINE

Contents

Emphasising flexible power generationWärtsilä’s gas fired combustion technology is capable of solving power system stability problems (see page 9).

THIS ISSUE OF IN DETAIL is also available on iPad as a Wärtsilä iPublication app from Apple's Appstore, as well as in a browsable web version at http://indetailmagazine.com/.

WE AT WÄRTSILÄ take great pride in the fact that our company is

an acknowledged innovator and technology leader, and that our

strong in-house know-how is used to constantly improve the value

proposition we offer our customers.

PRIME EXAMPLES of our pioneering technology achievements

can be seen in Wärtsilä’s Smart Power Generation concept for

land-based power plants, and the development of solutions that

have helped facilitate the use of gas as a marine fuel. In both these

areas, and more, Wärtsilä continues to lead the way to a more

economically and environmentally sustainable world.

IN THIS EDITION OF IN DETAIL magazine, further evidence of our

technology accomplishments can be found. Each of these articles

points to a path that offers a shorter and faster way to customer

profits, and it is for this that we strive day after day. For it is by

optimising the lifecycle efficiency of Wärtsilä installations around

the world, be they on land or at sea, that we build trust and

reputation and become the preferred partner of all our customers.

WE ARE UNIQUELY POSITIONED to combine this technology

leadership with our global experience, our world class service

support network, and the operational data that has been gained to

reduce and control operational costs. Our work towards implementing

an effective Ship Energy Efficiency Management Plan (SEEMP) is

just one good example of this, and you can read more about it in

this magazine. In fact, each of the articles illustrates, in one way or

another, how Wärtsilä helps its marine and power plant customers

to achieve fuel cost reductions and important efficiency gains.

I wish you good reading.

Roger Holm

Senior Vice President

4-Stroke

Contributing editor

to this issue of In Detail

iPad

Web

Page 3: In-Detail-02-2013

WÄRTSILÄ TECHNICAL JOURNAL | WWW.WARTSILA.COM

in detail 3

INCREASING FLEXIBILITY IN LNG FUEL HANDLING

The LNGPac™ ISO fuel gas handling system offers a new and flexible approach

that expands the possibilities for LNG as a marine fuel. PAGE 42

Effective implementation of SEEMP

Wärtsilä’s new offering combines SEEMP with service agreements for greater customer benefits.

Wastewater treatment in the marine industry

Wärtsilä continues to develop state-of-the-art wastewater treatment systems for ships while awaiting regulatory enforcement.

A future market design for reliable electricity systems in Europe The changed market environment requires a new approach to electricity market design.

MORE ON PAGE 54RE

FE

RE

NC

ES

MORE ON PAGE 61MORE ON PAGE 12

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Power demand in the Caribbean island of

the Dominican Republic has been growing

at around 5 per cent per annum. At the

same time, the transmission system is weak

and overloaded. Despite its best efforts, the

government has therefore long struggled to

bring uninterrupted power to the island’s

industry and 10 million inhabitants.

To help ease the situation, the

government has allowed independent power

producers to set up projects that will help

meet this growing demand. Meanwhile,

some industries have taken control of the

situation by opting to install their own

power plants in order to secure supply.

Against this background, Wärtsilä is close

to completing one of it’s largest installations

at a site in San Pedro De Macoris, 70 km

east of the capital Santo Domingo.

Under two separate engineering,

procurement, and construction (EPC)

contracts, Wärtsilä is supplying and

installing two almost identical power plants,

known as Quisqueya I and II, with a total

capacity of 430 MW for two separate clients.

The first project is a captive power plant that

will power the Pueblo Viejo gold mine

operated by Barrick Gold, while the second

will be an important generating asset for

local independent power producer EGE Haina.

Constructing a mega size multi-fuel power plantAUTHOR: Seppo Tiensuu, S enior project manager, Power Plants

Wärtsilä is close to completing two 215 MW combined cycle power plants on a single site in the Dominican Republic. Although a huge undertaking, projects of this size are fast becoming “business as usual” for the company.

Fig. 1 – Aerial view of the Quisqueya site in March 2012 when site works had been started.

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WÄRTSILÄ TECHNICAL JOURNAL 02.2013

5in detail

Power from this plant will be sold to the

national grid.

Neither company is a stranger to Wärtsilä,

as both have purchased Wärtsilä plants in

the past. This time, each plant will consist

of twelve Wärtsilä 50DF engines and a steam

turbine in combined cycle configuration.

Almost identical

Quisqueya I is located some 100 km from

where its output will be consumed at

the Pueblo Viejo gold mine, northwest of

Santo Domingo.

Barrick Gold holds a 60 per cent interest

in the mine and is the operator, with

Goldcorp owning the remaining interest.

The mine achieved commercial production

in January 2013 and is expected to ramp up

to full capacity in the second half of the year.

Having invested some USD 5 billion

in the gold mine, being self-sufficient in

power supply is a smart move for Barrick

Gold – both practically and economically.

Currently, Barrick Gold is buying

electricity from the grid, but by building

this new plant it will both ensure an

adequate supply and achieve considerable

cost savings.

The fact that these two projects are almost

identical and located next to each other is

no coincidence, despite the fact that they

have different owners and functions. EGE

Haina had an existing relationship with

Barrick Gold, and initial discussions between

Wärtsilä and Barrick ultimately led to the

same configuration being selected for

the EGE Haina plant. EGE Haina will also

operate the Quisqueya I plant on behalf of

Barrick Gold.

Flexibility is key

EGE Haina is an important operator in the

country and its new power plant will play a

key role in the island’s network. Considering

the size of the total Dominican grid,

the project’s size is significant – big enough

to provide frequency support.

Operational and fuel flexibility were big

considerations in the selection of Wärtsilä

technology for the project. In addition to

offering frequency control with its fast start-

up, the plant offers high electrical efficiency

and can run on gas and liquid fuel.

Fig. 3 – The Quisqueya site management crew.

Santo Domingo

Caribbean Sea

DOMINICAN REPUBLIC

Atlantic Ocean

San Pedro De Macoris

Fig. 2 – Quisqueya I and II are located in San Pedro De Macoris, 70 km east of the capital Santo Domingo.

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Introduced in 2007, the new Wärtsilä

50DF with its multi-fuel capability is the first

large engine to offer such flexibility.

The Wärtsilä 50DF allows for fuels to be

switched whilst the engine is in operation.

This is a huge benefit in terms of giving

plant owners options as fuel prices fluctuate.

Initially, Quisqueya I and II will burn

HFO until natural gas is available. Although

some gas is available on the island, currently

there is not enough gas for a facility of

this size. There is an import terminal but

no pipeline. An installation of this size

requires a separate import terminal and

its own pipeline from the port to the site.

As this could require an investment in the

region of USD 1 billion, it may be some

time before the projects run on gas.

In addition to fuel flexibility, a big plus

compared to gas turbine plants is that

overall plant efficiency can be maintained

across a much wider load range by simply

shutting down engines according to power

needs. Since the engine’s introduction, it

has been selected for several projects ahead

of gas turbine-based solutions, and the

Quisqueya plants further verify Wärtsilä’s

strategy for the large power plant sector.

Plant configuration

Apart from some minor differences on

the fuel treatment systems, the scope of

supply for both plants is almost the same.

In addition to the power generated by

the Wärtsilä 50DF engines, waste heat will

be recovered in a heat recovery steam

generator (HRSG) to generate steam that

is used to drive a single pressure steam

turbine for additional electricity.

Wärtsilä’s scope of supply covers the

engines, auxiliaries and combined cycle

equipment. The steam turbines were sourced

from Shin Nippon Machinery (SNM) Co.

Ltd, of Japan, while the boilers were

sourced from Aalborg Boilers. Wärtsilä has

responsibility for installing the steam

turbines and boilers as well as the engines

and auxiliaries.

Each Wärtsilä 50DF engine has a power

output of 17 MW, while the contractual

output of each steam turbine is 16.5 MW,

i.e. almost 10 per cent of plant output.

The steam turbine, however, is designed

so that it is capable of producing 20 MW

if more steam is available. Steam is fed

into the steam turbine at a pressure of

15 bar and a temperature of 335°C.

Cooling is provided by means of

radiators for the engines, and a cooling

tower for the steam turbine.

For each plant, there are two engine halls

each housing six engines. The steam turbines

are located in a separate building and the

HRSGs are located outdoors. Office buildings

are located in a row on one side of the plant

and the tank yard is on another side.

Each project has two fuel storage tanks,

each with a capacity of 14,300 m3. This is

sufficient storage to allow each plant to run

at full load for around 700-800 hours.

Adapting the schedule

The site for the two plants occupies an area

of 480,000 m2. With such ample space,

achieving the optimum plant layout was

rather straightforward.

One of the major challenges in executing

the project, however, has been the sheer

size of the power plants and the pressure it

placed on the scheduling and contractors.

The contract for Quisqueya I was signed

in August 2011, while the contract for

Quisqueya II was signed in December.

The initial plan was that there would be a

4-month gap between the two projects, but

Fig. 4 – The Wärtsilä 50DF offers excellent operational and fuel flexibility.

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7in detail

delays caused by factors such as

environmental permitting, meant that both

plants had to be constructed on a very

similar time schedule.

Under normal circumstances, a typical

sequence would be to carry out the

engineering, followed by procurement and

shipment. Foundations are then constructed,

mechanical and electrical equipment is

installed, and then the plant is commissioned.

The shift in schedule, however, meant that

a large number of tasks had to be carried out

in parallel. For example, two or three engine

halls were worked on simultaneously during

installation works. This created a more

crowded site, which put a lot of pressure

on site supervision and the constructors.

Building such a large project on an island

the size of the Dominican Republic was also

a challenge for local contractors, but it did

have its benefits.

During the peak of construction in

the spring of this year, there were around

1400 workers on site. With the total number

of man-hours expected to reach 3.5 million

by completion of the project, the construction

has provided local jobs and boosted

the economy.

Logistical challenge

In addition to supplying and installing the

engines, Wärtsilä’s contract also covered

soil improvement and foundation work.

Although no piling was needed, soil

preparation required the excavation of as

much as 300,000 m3 of soil, which then had

to be filled with caliche, a type of sedimentary

rock that was brought in from a nearby

quarry.

As both plants are designed to withstand

category 4 hurricanes, building adequate

foundations was another major challenge.

Due to the potentially huge wind loads,

foundations and steel structures had to be

much bigger than usual. The foundations

required 18,000 m3 of concrete to be

poured, while the installation of 1700 tons

of reinforced steel, and 3000 tons of steel

superstructures were also necessary.

With site preparation and foundations

complete, the task of delivering equipment

to the site could begin.

The engines were shipped to Boca Chica

Port in Santo Domingo and then transported

by road to the site. Roads between the port

and site are relatively good, so equipment

delivery went smoothly without any hiccups.

As all materials had to be available on site

when needed, the entire project has been

a huge logistical challenge. Total shipment

volume consisted of more than 1200

containers and 33,500 m3 of various break

bulk. Getting all the equipment in the right

place at the right time required careful

planning and good coordination of transport

activities.

Responsibility for transportation was

assigned to one main contractor who was in

charge of the collection and ocean transport.

Local transport and coordination was then

subcontracted to a local company.

A storage yard was also rented at the port

so vessels could be unloaded immediately on

arrival prior to the goods being transported

to the site.

Business as usual

In spite of the challenges, construction has

proceeded extremely well thanks to

successful site management, excellent

cooperation with the clients, and flexible

subcontractors.

Despite the challenging schedule, extremely

good health and safety conditions were

maintained, with the LTI < 0,06 (loss time

Fig. 5 – View of the plants showing the four combined cycle units on the left and storage tanks on the right. One of the six-cell steam turbine cooling towers can be seen in the foreground.

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injury) rate being clearly better than

the target value.

The fact that such a large project has

progressed smoothly is evidence that

constructing these big combined cycle plants

is no longer a daunting task. Years ago,

reciprocating engine-based plants were

significantly smaller. Today, building 200+

MW power plants is in many ways now just

‘business as usual’ for Wärtsilä.

Processes have been put in place and

working methods have been established that

allow power plants of this size to be built

quickly and on schedule.

Quisqueya I and II are further evidence

of this. Site works began in February 2012

and performance tests started in September

2013. With the plants scheduled to be ready

for handover for simple cycle operation this

autumn, this means that from the start of

excavation to simple cycle operation, just 18

months will have passed. Combined cycle

handover is planned for November/

December 2014 , i.e. just 22 months from

the start of site works.

This is quite an achievement for a project

of this size, especially when considering

the shortage of resources on the island.

Clearly, Barrick Gold and EGE Haina have

overall been happy with Wärtsilä’s handling

of the projects. In spite of the demands of

the project, communication and cooperation

with both companies has been excellent.

These are old clients of Wärtsilä, which

may have been one of the reasons why

Wärtsilä was contracted for the projects, but

their smooth execution reaffirms that

Wärtsilä is a good contractor for large or

small projects and provides an excellent

foundation for future cooperation.

Fig. 6 – Impressive Quisqueya site in September 2013, just 18 months from the start of site works.

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WÄRTSILÄ TECHNICAL JOURNAL 02.2013

9in detail

The share of wind and solar power in many

grids has increased rapidly during the last

few years, especially in Europe and the USA.

This trend is sometimes causing severe

problems in stabilising the power systems.

As a result, it can be foreseen that in the

future all electricity generation, with the

exception of nuclear power and power from

renewable energy sources, will need to be

run on a completely flexible basis, responding

rapidly to the prevailing needs of the grid.

Undoubtedly, the business of power production

is profoundly changing.

Wärtsilä's gas fired combustion technology

has the flexibility to enable maximum use of

fluctuating wind and solar energy, while

ensuring optimal power production with

the highest total efficiency. While other

thermal power generating systems typically

need to be started an hour or more

beforehand to reach full load, advanced

power plant solutions can reach full load

for power generation in just a few minutes.

For several years already, Wärtsilä's R&D

activities have focused heavily on developing

means to achieve superior flexibility in power

generation. As a result, the company is

currently the global leader in this technology

field. Highly competitive cost efficiency is

another major target of Wärtsilä's

development work.

The aim is to continue to improve and to

find the most cost effective solutions for

power generation. The company’s Research

& Development team, consisting of hundreds

of experts in different disciplines, is working

Emphasising flexible power generation AUTHORS: Tuula Franck, S enior Manager, Media and S takeholder Relat ions

Thomas Hägglund, Vice President , Power Plants Technology

Developing superior flexibility in power generation and highly competitive cost efficiency have long been major focus areas in Wärtsilä's technology development work.

Fig. 1 – Wärtsilä's gas fired combustion technology is capable of solving power system stability problems.

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to constantly improve the technology and

to develop Wärtsilä’s offering as a total

solutions provider. Furthermore, an important

area of research and development is the use

of new fuels. This work has resulted in

power solutions with market leading fuel

flexibility, making them extremely competitive.

When rapid up and down ramps of power

generation are necessary to stabilize the

system load, Wärtsilä's gas fired combustion

technology offers the highest total efficiency

on the market. The essence of this fast-access

efficiency is that the power generation can

be started and stopped so rapidly that one

could speak in terms of generating power

in pulses. The length of such a ”pulse”,

containing one cycle of power generation,

could typically be from half an hour to

a few hours.

The Wärtsilä system reaches full load

for power generation in just a few minutes,

while other thermal power generating

systems typically need to be started an hour

or more beforehand to reach full load.

Wärtsilä’s technology makes it possible to

achieve fast ramps up and down that take just

one minute, while providing very high total

efficiency for the cycle of power generation.

The shorter a single cycle of power

generation is, the greater the importance

of a quick starting time to reach full load

and total efficiency during the cycle. For

example, when running a 60 minute cycle, a

Wärtsilä gas power plant can operate well

at full load for more than 50 minutes.

With a net electrical efficiency of over

45 per cent at full load, the efficiency for

the whole cycle thus exceeds 44 per cent.

A short ramp up time, together with high

total efficiency, further implies that the

exhaust emissions are minimized. Emissions

from power generation are generally

measured at full load, since they vary and

are difficult to measure during the start-up

phase. With short up and down ramps you

save in fuel costs and reduce emissions.

Speed and flexibility needed in future

Coal combustion is not suitable for use as

fast regulating power, while to get the full

effect from combined cycle gas turbines

(CCGT), the system has to be started at least

one hour before power is needed. As a

consequence, when used as back-up, turbines

in these power plants are continuously

spinning and thus lose a lot in total efficiency.

Furthermore, conventional plants have to

run for many hours at a time to make power

generation profitable. In order to generate

a positive cash flow, today’s high efficiency

gas fuelled power plants need to be run for

more than a couple of hours at a time.

On the spot market electricity is

normally traded by the hour, but in fact

the fluctuations in both demand and

price are a lot faster than that - and are

accelerating. Clearly, the business of

power production has changed radically

and is becoming ever harsher. For a

power plant that is not fast enough, yet is

working as back-up to the growing load

from renewables like wind and solar, the

situation is getting more and more difficult.

It is not just a question of levelling out the

peaks and valleys in the fluctuating power

output from renewables. The real challenge

is that at any point in time the decision

must be made as to when is the right time

to start up or shut down different power

units. At the same time, one has to take

into account the fact that the power plant

is slow in starting, and once having started

it, one must be able to sell the electricity

over a period of several hours, and not to

produce it at a loss. Forecasting the daily

load pattern is no longer sufficient, since

the production of wind and solar power

needs also to be taken into consideration.

It is, therefore, predictable that in the

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Win

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ou

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t (M

W)

Spain

Germany rest

DK east

DK west

Germany NW

Germany NE

Ireland

12

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145

169

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217

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Fig. 2 – Variable wind.

Wind Power output major wind energy countries Europe,

January 2012

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11in detail

future all power generation, with the

exception of nuclear power and power

from renewables, must be run completely

flexibly, according to the prevailing grid

needs. Such a power generating system

has to be extremely fast and flexible.

Problems in stabilizing power systems predicted

International energy policies are changing,

and the European Union, for instance,

continues to persuade its member countries

to increase their share of energy production

from renewable energy sources. This trend

implies severe problems in stabilizing

these power systems.

For example, within a very short period of

time Germany has installed a large amount

of photovoltaic systems feeding solar power

into the grid. Additionally, Germany had

previously invested in extensive wind power

installations, which now produce some eight

per cent of the country's electricity. As a

result, there are indications of increasing

instability in the German grid and, as

a consequence, a need for fast regulating

power generation.

Production of electricity with wind

turbines is not stable since it fluctuates all

the time with occasional rapid changes.

Adding electricity produced with solar

panels makes the generation of electricity

even more unstable – even though the daily

and annual rhythm of solar conditions

should be easier to forecast than wind

conditions. To this should be added the fact

that the storage of enough electricity to

level out these fluctuations is very difficult,

if not impossible, to achieve.

When peaks and lows in energy

production from renewable energy sources

are local, a grid covering an extensive

geographical area can level out the largest

fluctuations. However, occasionally not

even an all-European grid is large enough to

balance the fluctuations. The study of some

historical data shows that the fluctuations

in the combined wind power output

from three leading European wind power

countries – Spain, Germany and Denmark

– are not necessarily levelled out, but are in

fact somewhat reinforced. (see Figure 2)

Fast and flexible balancing power is

needed, not only to enable more renewable

energy, but also to enable adequate use of

today's fossil fuel power plants. Without

flexibility, the benefits from renewable

energy are lost in lower efficiencies and

higher emissions from the existing plants.

There are several features that contribute towards achieving a fast start-up, and

the technical solutions are continuously being further fine-tuned. An example of

what can be accomplished is the two power stations that Wärtsilä has supplied

to Elering AS, the Estonian transmission system operator. The plants are under

construction at Kiisa, near Tallinn, and will have a combined output of 250 MW.

The Kiisa installations are intended to secure the availability of Estonia's

electricity supply in case of sudden drops, and are capable of compensating

for a system failure within 10 minutes. The 27 Wärtsilä 34DF engines

involved will operate individually on average for 200 hours per year.

Heat pumps and efficient insulation are used to keep the temperature

inside the engine hall relatively high during stand-by. In that way the loss

of heat in the engines during stand-by can be reduced and, consequently,

the need for pre-heating prior to starting can also be lessened.

Pressure air speed up the engine (starting air), and when defined speed reach

the fuel supply start and followed by ignitions. Using compressed air makes the

procedure fast, and no electricity is needed to start the system. When the engine

is warm at start, it reaches full speed in 30 seconds, after which it is individually

synchronised and connected to the grid. Adding load and ramping up the

engine to full load takes approximately two minutes with a warm engine.

Also ramping down is a fast procedure, normally taking about one minute. While

compressed air is used to get a rapid start, letting off the pressure from an engine

by opening a valve is an efficient way to instantly stop the engine, if needed.

During the ramp down, preparations are made at the same time for the next

cycle of power generation with, for instance, residual gas being vented out.

Within five minutes the engine is ready to start again and the heat remains in

the engine for quite a while. The number of starts and cycles of operation is not

relevant since the engines are not affected by how often they are started.

FULL SPEED IN 30 SECONDS WITH A WARM WÄRTSILÄ ENGINE

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Market situation in the EU

Reliable operations in electric power

systems having increasing amounts of

Renewable Energy Sources (RES) require

increasing balancing capabilities. This

is because the output from variable RES

generation is never fully predictable

(forecast errors), and has variability that

adds to the normal variations in electricity

demand. Since RES production generally

has feed-in priority, the remaining power

generation capacity has to adjust its

output in order to balance total electricity

production and demand. Electricity

demand, as well as the output from RES,

can change rapidly and not necessarily

in the same direction. System operators

therefore need to have capacity available

that can respond quickly to these changes.

The impact of RES deployment on

electricity markets is severe. Variable RES

generates electricity at very low marginal

costs and thermal capacity is, therefore,

pushed higher up in, or completely out

of, the merit order. This means reduced

operating hours and less revenue for

thermal capacity. In addition, subsidized

RES output depresses electricity prices,

which makes the feasibility of thermal

plants even more challenging. Thermal

Future market design for reliable electricity systems in EuropeAUTHORS: Matti Rautkivi, General Manager, L iasion Off ice, Power Plants

Melle Kruisdijk, Market Development Director Europe, Power Plants

De-carbonising the energy sector is one of the main objectives of the EU. To meet this objective, significant amounts of variable renewable capacity have been installed already and a lot more will be deployed by 2020. This development raises the need for more flexible generation in power systems, and a new kind of electricity market design to reward flexible generation.

This article is based on a paper that won the best paper award in Power Gen Europe 2013.

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capacity is still needed in systems with high

levels of RES to balance the system, but the

profitability of these assets is jeopardized.

Several EU member states have raised

a concern that, as a result of plant closures

and the lack of investment in new

capacity, there may become insufficient

capacity available under current market

arrangements. There is a potential market

failure that is associated with the perceived

political risk of allowing prices to reach

high levels at peak times. Such high

prices would be required to remunerate

plants running at lower load factors, so

that they are able to recover fixed costs

whilst operating for only a small number

of hours per year. This issue has been

termed the “missing money” problem.

However, there is another issue that

must be addressed since it is not simply

“capacity” that is required in high RES

systems. Consideration must also be given

to delivering the “right types” of capacity,

and in particular, that a sufficiently flexible

mix is available. Without appropriate

price signals, there is an equally important

concern around “missing flexibility”.

The value of flexibility

If more intermittent renewable power

sources are to be implemented into

power systems, more flexible generation

capacity has to be added to the mix as

well. Though this has been recognised

among transmission system operators

(TSOs) and market players, the value

of flexibility has not been quantified or

identified in the market arrangements.

To identify and quantify the market value

of flexibility, Wärtsilä has developed

several studies around this topic with

the approach summarised in Figure 1.

The savings that flexibility in power

systems can provide has clearly been

demonstrated by two recent studies

commissioned by Wärtsilä. The first

study, carried out by Redpoint Energy and

London Imperial College concerning the

UK market, is covered in another article in

this magazine (See article "Flexible energy

allows efficient and cost effective integration

of renewables into power systems"). The

analysis demonstrated that, depending on

the wind scenario, flexible gas generation

could save UK consumers

Fig. 1 – An approach for defining the value of flexibility.

MO

DE

LLIN

G O

PE

RA

TIO

NS Optimize

the operation of capacity mix to minimise costs and emissions

Required inputs available

Capabilities and features of technologies

Weather and load data

System requirements

Cost optimized system operations for each hour

STEP 2

PO

WE

R S

YS

TE

M A

RC

HIT

ECT

UR

E Objectives of future energy system?

CO2 reduction

Reliability

Cost

Available technologies

Capacity scenarios

Physical system layout

STEP 1

Smart Power System

Affordable

Reliable Sustainable

VA

LUE

OF

FLE

XIB

LIT

Y Results of scenarios

System operating costs

CO2 emissions

Reasons behind results

How much savings and CO2 reduction can be achieved through more flexible generation?

STEP 3

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ENERGY MARKET FLEXIBILITY MARKET CAPACITY MARKET

PurposeOptimal utilization of assets

to generate electricity

PurposeEfficient provision of flexibility

to meet system requirements

PurposeEnsure capacity adequacy

Objectives• Low cost of electricity

• Low CO2 emissions

Objectives• Reliable system in all

situations

• Low cost of system balancing

• Maximum utilization of low

cost generation assets

Objectives• Adequate capacity

• Bankability of new

investments

• Keep competitive generation

assets in the system

Market setup• Liquid short term markets

• Efficient competition

• Balancing responsibility

for all market participants

• Transparent price formation

Market setup• Transparent price for

flexibility

• Flexibility traded in short term

• Efficient competition on

electricity and flexibility

market

Market setup• Central capacity market

• Competitive auctions

• Competition on equal basis

• Efficient market entry

and exit

Investment signals• Electricity price

• Electricity demand

• Merit order

Investment signals• Need for flexibility

• Flexibility price

• Flexibility capabilities

Investment signals• Required capacity payment

to support investments

Approach to market design for high RES system

Fig. 2 – Market design for high RES power systems.

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between GBP 380 million and GBP 550

million per year by 2020 through reduced

balancing costs. The modeled savings

are estimated to be significantly higher

in 2030 (GBP 580 million to GBP 1,540

million) since the system’s volume of wind

generation is anticipated to increase further.

In another paper, KEMA DNV analyzed

the Californian system for 2020 with

a 33 renewables penetration [http://

www.smartpowergeneration.com/spg/

downloads]. In this context two alternative

scenarios were modeled. The first

scenario covered the additional capacity

requirement of 5.5 GW with traditional

gas turbines, and the second with Smart

Power Generation (SPG). The study shows

that by introducing 5.5 GW of SPG instead

of 5.5 GW of gas turbines in the system,

Californian consumers could save around

900 MUSD per year, representing some 11

savings in system level operating costs.

Based on the studies, it is evident that by

including SPG into the generation portfolio,

total system operating costs in systems

with high penetrations of RES are reduced.

This is due to the specific characteristics of

SPG, such as ultra quick start-up, that allow

this technology to provide flexibility to

the system at much lower costs compared

to other thermal generating technologies

that have to run part-loaded. In addition,

by adding SPG to the capacity mix of a

power system, other thermal plants no

longer need to run part-loaded and can

produce electricity at higher efficiency,

which reduces the overall generating costs.

A system without SPG can provide flexibility

by running plants at part load, but such

actions significantly increase the cost to

consumers, as is shown in the studies.

The value of flexibility in the examined

60 GW (UK and California) peak load systems

having high RES penetration is analysed as

being more than EUR 500 million per year.

Translating this to a European size system,

the value of flexibility is approximated to

be more than EUR 5 billion per year, already

in 2020. Consequently, flexibility should

be one of the key parameters of future

power system and energy market designs.

Current market challenges

Lately, there has been an active debate

regarding capacity mechanisms in many

European Union member states. In

February 2013, the European Commission

asked for input from stakeholders on

potential ways to secure capacity adequacy

and system reliability in a future system

with high amounts of RES. However, such

a power system also calls for flexibility,

not just capacity. As clearly indicated in

the studies mentioned above, in high RES

power systems flexibility is no longer an

invisible and low cost side product of

power generation, but is a key factor in

power system design and optimization.

Though the studies presented earlier

clearly show the benefit of having

flexibility in the capacity mix, current

market arrangements do not reflect the

value of flexibility, nor do they incentivize

investments in flexibility. There are several

issues within current market setups

that “hide” the cost of inflexibility into

consumer bills, and consequently prevent

investments in new flexible capacity.

Simultaneously, energy-only market setups

are struggling to keep capacity adequacy

at healthy levels in this new reality.

The electricity market vision

Wärtsilä studied several electricity market

models with the aim of developing an

electricity market model that will incentivize

flexibility and ensure capacity adequacy for

systems having high levels of variable RES.

The market model should secure capacity

adequacy, incentivize the right type of

capacity, and lead to lower costs to the

consumer. The overall market model design

that will deliver this is shown in Figure 2,

and is based on two markets existing next to

each other. The Energy Market, consisting

of the wholesale electricity markets (day-

ahead, intra-day, and the balancing

market), together with a Flexibility

Market establishes a competitive market

environment where all market players can

compete on an equal basis. A competitive

Capacity Market would be introduced only

if needed, to secure capacity adequacy.

A competitive Energy Market forms the

basis of the market model. The objectives

of energy markets are to provide low cost

electricity and low CO2 emissions in all

situations through competitive short term

markets. Cost reflecting imbalance prices

will increase the imbalance exposure of all

market participants (where all participants

are responsible for balancing), which creates

the incentive to be in balance at gate closure

(when the market trading is closed and TSO

takes control of the system). Supply and

demand for energy closer to gate closure is,

therefore, expected to increase because each

market player, in order to reduce

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out-of-balance penalty risk, will take

efforts to be in a balanced position at gate

closure. This will be done either through

changed positions within its own portfolio

of options (changing outputs from their

own power plants, DSR, etc.), or through

trading. This development enhances the

liquidity in intra-day markets, and provides

additional income for flexible assets

through balancing and intra-day markets,

because these units will be in a position to

supply energy shortly before gate closure.

However, it would be hard, or even

impossible, for providers of flexibility to

capture the total value of flexibility through

energy prices only. Therefore, in addition

to the Energy Market, we propose the

introduction of a market place for flexibility.

A competitive Flexibility market would be

a day-ahead option market for having the

flexibility to increase/decrease energy the

following day. The flexibility market would

replace the existing procurement strategies

of TSOs, and would make the procurement

of system services more transparent to

market players. TSOs would procure the

required flexibility (reserves) to satisfy the

system needs for the following day from

the flexibility market, when the volumes

are not locked away under long-term

contracts. The flexibility market would also

be open for market participants to procure

flexibility to hedge against intra-day prices

and imbalance exposure. The key features

of the flexibility market are as follows:

Buyer of flexibility: Voluntary

procurement of market participants. The

TSO would always procure flexibility for

the system needs, but the procurement

of market participants could reduce

the amount procured by the TSO.

Volume: Market participants determine

their own volume requirements, depending

on their willingness to hedge against price

risk, and the TSO provides the backstop in

the Day Ahead (DAH) auctions to ensure

that the system has the flexibility needed.

The total volume requirement of flexibility

is known through the TSO procurement

strategy, which provides stable volumes

and liquidity in the flexibility market.

Products: Multiple products (e.g. 5 min

ramping, 30 min ramping etc.) defined

by the TSO in consultation with industry

players, to ensure the needs of the system

are met. All products require an option to

deliver, and increase or decrease in physical

energy within a future settlement period.

Timeframes: The DAH timeframe

aligns (or allows co-optimisation) with

the energy market, and provides a daily

reference price for different flexibility

products. A secondary within-day market

for market participants and the TSO to

trade their options as more information

emerges. Clear DAH reference prices can

allow long-term financial contracts to

be struck between flexibility providers

and market players or the TSO.

Delivery: The option holder (market

participant or the TSO) may exercise the

option by calling for energy to be delivered

prior to gate closure. Self-provided

flexibility must provide information to

the TSO during the day as to whether or

not it will be exercised. After gate closure

any unused options would be exercisable

by the TSO in the balancing market.

Cash flows: Flexibility cleared through

the DAH auctions (other than self-provided

reserve) is paid a market clearing availability

fee (per MW) for the contract period (next

24 hours or hourly products). A utilisation

fee (per MWh) is paid upon exercise.

Unused flexibility must be offered to the

balancing market at the fixed utilisation

fee, for dispatch and payment by the TSO.

Cost recovery: The option holder

pays the availability fee to the flexibility

providers. Availability fees incurred

by the TSO could be recovered via an

information imbalance charge levied on

out-of-balance market participants.

Monitoring: The TSO would certify the

physical capability of capacity providers

seeking to offer at DAH auctions. Any

options exercised would be notified to the

TSO in the same way as physical energy.

A central Capacity market would be

established if the Energy + Flexibility

markets are not delivering investments, or

are not able to keep existing plants in the

system. The purpose of the capacity market

is to ensure capacity adequacy by providing

so-called administrative capacity payments,

which compensate for the “missing money”

from market operations. The future markets

(Energy and Flexibility) are volatile by

their nature, while investors may require

stable cash flows to be able to finance

their new projects. In this case, a capacity

market could enhance the bankability of

new projects. A capacity market (like any

capacity mechanism) should concentrate

on securing adequate capacity, rather

than specifying what type of capacity is

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Criteria Description Evaluation

Impact on capacity adequacy

Delivers adequate peak capacity to mini-mise risks to security of supply

If required, the introduction of market wide capacity mechanism ensures capacity adequacy

Transparent and competitive market provides market based investment incentives

Impact onflexibility

Enables the value of flexibility to be trans-parently revealed, supporting the required volume of new investment

Transparent market for flexibility at the DAH stage can create a liquid reference price to support investment

Reduced imbalance exposure provides strong incentives for market to procure flexibility

SO provides a backstop to ensure that the system needs are met, and to aid liquidity

Facilitates competition, entry and exit

Encourages efficient competition and new entry, as well as retirements where this is economic

DAH flexibility market with clear reference price could encourage new entry from flexibility providers

Capacity mechanism may encourage older less flexible plant to remain on the system. Therefore essential to implement flexibility market before capacity market.

Impact on financing

Long-term bankability for investors, and ability to attract diverse range of investors and sources of finance

Flexibility market revenues allows flexible capacity to be more competitive in the Capacity Market, enhancing bankability

Investment on project finance basis may not be viable Strong cost targeting could encourage joint venture

opportunities, for example between wind developers and flexible capacity providers

Impact on affordability

Consumers pay no more than necessary to deliver decarbonisation and security of supply

All costs visible for market players Competition in all stages SO may be more risk averse than the market with respect

to both capacity and flexibility, increasing overall costs to consumers

Reliance on well-functioning wholesale market

Importance of a liquid and well-function-ing wholesale market to the success of the model

Within-day liquidity likely to be important to facilitate secondary trade in flexibility

Reliance on central decision making

Extent to which investment decisions are made by a central body

Central determination of adequacy requirement Cost of flexibility visible to market players and flexibility

market providing market based tools to hedge against imbalance risk

Complexity Complexity of the market arrangements and the subsequent investment decision

Complexity in central determination of adequacy requirement

Definition of SO role as backstop flexibility provider may be difficult to design, monitor and enforce

Need clear mechanism to reduce imbalance exposure for hedged market participants if flexibility option hold after gate closure

Table 1 – Market model evaluation.

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needed. It should be technology neutral

and treat all forms of capacity (demand

and supply) on an equal basis. A well

functioning energy market, together

with the flexibility market, would reward

capabilities when the capacity market

only provides the “all-in price” required

by investors to make the investment.

Evaluation of the proposed market design

An optimal power system provides

affordable, reliable, and sustainable

electricity to consumers. The electricity

market structure should provide incentives

to investors to invest in new power

generation that meet the set system

objectives. It is relatively easy to design

a market model meeting one or two of

the set cornerstones of an optimal power

system, or that favours some technologies

over others. To assess the feasibility and

compatibility of the proposed market

model, evaluation criteria have been

developed for this purpose. These criteria

assess the market model from different

perspectives, taking into account the most

relevant stakeholders. The developed

evaluation criteria and the high level

impact assessment are shown in Table 1.

How to make the market work

Today, the capacity mechanism is at the

center of the EU electricity debate due

to the risk of capacity shortfalls. While

continuously trying to ensure capacity

adequacy, adding flexibility to the system

should be higher on the agenda. There

are potential market based approaches

to incentivize investments in flexibility,

which do not require administrative

cash flows, but call for a reallocation

of system costs from the TSO to the

market, making the cost of flexibility

visible for market players. To develop a

reliable, affordable, and sustainable power

system, several actions are needed:

Firstly, understand that the energy

market environment has dramatically

changed due to increasing amounts

of variable RES generation, and

that this new environment requires

increased services (flexibility).

Next, recognize the value of flexibility

and make it visible for market

players through cost reflective

imbalance prices and by developing

short term energy markets.

Then create a transparent market place

explicitly for flexibility so as to enable

the efficient procurement of system

services, and to provide clear market

signals for investors in flexibility.

Finally, ensure market entry for

new players and the bankability

of new projects by introducing

a Capacity market, if the Energy

and Flexibility markets are not

delivering the investments.

To avoid the risk of “locking-in” a wrong

type of capacity, it is important to note

that the above steps are implemented

prior to this latter step can be considered.

Many market players are calling for a market

based approach regarding the EU electricity

market structure. It is possible to design an

electricity market that provides investment

signals for the right type of capacity, while

also ensuring capacity adequacy at the

same time. However, this requires a new

approach to electricity market design,

since old tools are no longer suitable in

the changed market environment.

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Flexible energy allows efficient and cost effective integration of renewables into power systemsAUTHORS: Matti Rautkivi, General Manager, L iasion Off ice, Power Plants

Melle Kruisdijk, Market Development Director Europe, Power Plants

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A recent Wärtsilä study in UK study provides strong evidence that by introducing flexibility into power systems that have increasing levels of solar and wind sourced generation, system efficiency can be increased and consumer costs can be lowered.

The changing energy market environment

The generation mix in electricity markets

around the world is changing. Governments

are putting policies in place that address

the energy ‘trilemma’ facing their countries,

often in response to national or regional

targets that mandate a change in one or more

areas. This trilemma is widely accepted

to consist of:

Environmental sustainability:

countries need environmentally

sustainable ways of generating electricity,

without long term dependence

on burning fossil fuels that have

associated carbon emissions.

Security of supply: countries are seeking

ways to ensure that ‘the lights stay on’

in the midst of either growing demand

or old generating capacity shutting

down, which can be exacerbated by the

intermittency of renewable generation.

Affordability: increasing electricity

prices are a concern for all consumers,

and have the potential to disrupt economic

growth and throw households into fuel

poverty.

Efforts to de-carbonise and improve security

of supply often need to be balanced with

affordability. Policies for supporting

domestic industries, especially in times of

economic downturn and recession, are often

necessary. Renewable and low carbon forms

of generation have a vital role to play in the

sustainability effort, and, often, in security

of supply. The key focus for the deployment

of renewables in a 2020 timeframe is wind

and solar generation. In 2010, wind and

solar’s contribution to the world’s gross

electricity production stood at just under

3, and the IEA estimates that wind and

solar would have to grow by 16 and 21

respectively by 2020 in order to follow the

pathway required under its 450 scenario1.

The increasing need for flexibility

Wind and solar forms of renewable energy

are intermittent by nature since their

output fluctuates as a result of weather

conditions. The output from wind turbines

fluctuates with changes in wind speed,

while solar PV output fluctuates as varying

cloud cover impacts light intensity.

Without flexible forms of energy to balance

increasing intermittency, the system

could become unstable and insecure. It

could lead to the system operator taking

actions to curtail power from wind, solar

or other inflexible generation in order to

maintain system security, and in extreme

cases could also lead to black-outs.

Flexibility can be defined as the ability to change the level of

electricity output (or consumption) in response to an instruction

or another signal. All forms of electricity production or

consumption are flexible over certain timeframes. For example

a combined cycle gas turbine (CCGT) can flex from producing

no electricity at standstill to full output over the course

of a couple of hours. Similarly some industrial processes take

hours or even days to entirely shut down to bring their

electricity consumption to zero. Response time is the critical

differentiator for evaluating flexible forms of energy in

the context of balancing intermittent renewables. Flexible

forms of energy must be able to ramp their output at the

same rate that wind and solar output fluctuates, so that a

balance can be maintained. Systems need to respond across

different timeframes, from seconds to minutes to hours.

This presents an increased challenge

for parties responsible for managing flows

across the electricity networks, especially

where the output of many wind and solar

farms are correlated within an area as a

result of regional weather patterns. In

most countries this is a role carried out by

the transmission system operator (TSO).

However, it is also a challenge for energy

companies looking to ensure that the

energy that they buy or generate is sufficient

for the electricity that their consumers

need. Electricity storage technologies are

either not yet commercially developed,

or are not available in all areas (such as

forms of hydropower), so levels of thermal

generation output need to be made to

balance with levels of consumption on a

second-by-second basis. At present this

is mostly achieved by flexing the output

of controllable sources of electricity

generation, such as gas, coal, oil and hydro.

System operators hold flexibility in

reserve already to cover disturbances in

the balance of supply and demand, such as

surges in demand, or for back-up in case of

the failure of a large plant. The impact of

large amounts of intermittent renewables

on systems will need to be handled in a

similar way, though it is widely accepted

that in future the task of balancing wind and

solar generation will be far more significant.

This will mean that system operators may

have to hold significantly larger volumes of

flexible reserves than they do at present.

How can flexible energy be provided?

Flexibility in electricity markets is not a

new concept. There is already a range

of existing technologies that can provide

flexibility within the short timescales that

will be required. Some of the common

forms of flexible energy technologies are:

QUESTION: WHAT IS FLEXIBILITY?

Storage: Includes hydropower, batteries,

flywheels, pressurised gas, and other

developing technologies. Apart from

hydropower, the other technologies

are still struggling to be viably

demonstrated on a commercial scale.

Interconnection: Networks linking

adjacent electricity systems to enable

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cross border trading of electricity –

flowing to where prices are highest.

Thermal generation: Includes

conventional turbines and reciprocating

engines, with either simple or combined

cycles. Thermal generation provides

flexibility either by running at part load

(CCGT and coal) or from stand-by mode

(gas engines, open cycle gas turbine)

Demand side response: Energy

consumers reducing their consumption

in response to an instruction or signal

(causing demand to fall to match

the available supply of electricity).

Hydropower and interconnection offer

flexibility where they are available, and

Demand Side Response (DSR) could

have significant potential in the medium

to long term. However, it is widely

accepted that thermal generation will

still be required in most systems for

providing flexible energy in the future.

The traditional way of providing flexibility from thermal sources

Many systems rely on CCGTs, or existing

coal plants, to provide flexibility. As these

plants cannot typically provide flexibility

from standstill, they often need to be

part-loaded. Part-loading is the practice of

turning down generating units that would

otherwise be running at full load, so that

they can be turned up again to provide

flexible energy if needed. Similarly,

generating units that are not running can be

turned on to produce low levels of output

as a form of standby. It is a way of creating

reserves of flexible energy, as demonstrated

in Figure 1.

However, while this may have been

practical in the past for providing small

amounts of flexibility from existing generating

resources, it is questionable whether such

practices will have the efficiency needed for

integrating renewable generation in the future.

The practice of part-loading conventional

power plants to ensure that they can provide

flexibility is a cause for concern where the

associated costs are inefficient, as these

costs will be passed on to consumers.

These costs arise for a number of reasons:

part-loading a generating unit that is

already supplying energy to customers

means paying another (probably one

with a higher cost of generation)

unit to replace the energy;

part-loading a conventional power plant

from standstill incurs large start-up costs

owing to the time and fuel required to

Fig. 1. – A way of creating reserves with plants in the spinning mode.

Normal running scheduleE

lec

tric

ity

pro

du

cti

on

After part-loading

GeneratorA

GeneratorA

GeneratorB

Generator Aat full output

Potential energy held in reserve for flexibility

Generator B paid to turn on and part-load to replace energy from Generator A

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get the unit running at a stable level, and;

part-loading of conventional power

plants, which also reduces fuel efficiency

since such plants tend to be most

fuel efficient at maximum output.

It can be shown that these costs may be

significant in some systems, and that they

could constitute an increasing proportion

of consumer bills as the level of intermittent

generation grows in electricity systems.

Countries, especially those with a high

share of renewable capacity, will need to

enable more efficient generation solutions

for providing flexible energy to reduce

these unnecessary operating costs.

A new way?

Instead of focusing on part-loaded

conventional generation to provide

the increased flexibility requirement in

the future, we believe that electricity

markets need to embrace new forms

of flexible generation, such as forms

of Smart Power Generation (SPG).

SPG fulfills a set of requirements that

Wärtsilä believes the future generators

must be able to deliver to enable the

transition to a modern, sustainable

power system. These requirements are:

very high energy efficiency,

outstanding operational flexibility, and

multi-fuel operation.

As SPG has an outstanding operational

flexibility characteristic, it can provide

the required flexibility in a new way.

Instead of running thermal plants at part

load to provide the required flexibility,

SPG could provide flexibility from

stand-by mode, due to its fast response

time and superior ramping capabilities.

Where SPG is providing the required

flexibility instead of part loaded thermal

generation, the costs listed in the previous

chapter can be avoided, and consumers

are not paying extra for flexibility.

Value of Flexibility - Great Britain case study

Wärtsilä commissioned Redpoint Energy

to undertake an analysis of the potential

savings to be derived from using SPG for

flexibility in the GB electricity system in

2020 and 2030, by which time the GB

electricity system will contain a significant

share of wind generation capacity. The

analysis looked into the cost difference for

providing flexibility from a version of Smart

Power Generation technology compared to

the current practice of using part-loading

in the Great Britain electricity market.

The GB electricity market is using

increased levels of wind sourced generation,

and the UK Government is aiming for 31 of

electricity to be generated from renewables

to meet its 2020 renewable energy targets.

Modelling of the GB market in 2020 and

2030 considered two scenarios for the

trajectory of wind generation deployment

- ‘base wind’ and ‘high wind’. In each of

these scenarios, 4.8 GW of new build CCGT

generating capacity was replaced with

4.8 GW of SPG. The modelled capacity

mixes with SPG are shown in Figure 2.

PLEXOS, a power market simulation

tool, was used to determine the least cost

dispatch of generators in the GB market,

and also to simulate the actions that

the system operator would have to take

to create the flexible reserves of energy

needed to integrate wind (known as reserve

creation). Constraints caused by the GB

network configuration were also taken

into consideration. This allowed the costs

of these actions using SPG compared to

the costs of using CCGT to be compared.

The results of the study

Taking a typical business day in 2020

from the base scenario as an example, the

chart on the left of Figure 3 shows how

the GB system operator would need to

take actions throughout the day to turn

down coal powered generation (the red

area), while simultaneously replacing this

energy with gas CCGT (the blue area) in

order to provide flexibility2. The chart to

the right of Figure 3 illustrates the system

Fig. 2 – Capacity mixes of modelled scenarios.

SPG

Other

Offshore Wind

Onshore Wind

Pump Storage

Hydro

Peaking

Gas

Biomass

Coal

Nuclear

160

140

120

100

80

60

40

20

0

GW

Base BaseHigh

2020 2030

High

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WÄRTSILÄ TECHNICAL JOURNAL 02.2013

23in detail

operator’s actions in part-loading terms.

By comparison, Figure 3 and 4 shows how

the volume of part-loading is reduced when

SPG replaces CCGT in the market. The need

for flexibility has not disappeared, but rather,

because SPG can be quickly dispatched from

standstill in response to fluctuations in wind,

there is a reduced need to take actions to

prepare flexible sources of energy through

the part-loading of conventional generators.

In a conventional plant, high volumes of

part-loading are still required across peak

periods of the day (07:00-11:00, and 15:00-

21:00), partly because market prices at these

times are driven to levels where it is

economic to sell SPG output on the market,

which means it is unavailable to provide

flexible energy. This is shown in the dispatch

of different generating technologies on the

market across the typical day in Figure 4.

The proportion of flexible reserves

provided by SPG across all the modelled

years and scenarios is shown in Figure 5.

Where SPG is included in the system, it is

the single biggest provider of flexibility, and

the most economical option in all the years

and scenarios modelled, thus mainly having

the impact of displacing the use of gas

CCGT and coal for providing flexibility.

Fig. 3 – Actions taken for flexible reserve creation without and with SPG.

Normal running schedule

Ele

ctr

icit

y p

rod

uc

tio

n

After partloading

Coal generation

Coal generation

Gas generation

Gas generation

Coal generation

running at full

output

Coal generation

part-loadedto create flexibility

Gas generation turned on

to part-load to replace

energy from coal

Flexibility made

available

4

3

2

1

0

-1

-2

-3

-4

GW

Gas

Coal

00:00

08:00

12:0

016

:00

20:00

04:00

Normal running schedule

Ele

ctr

icit

y p

rod

uc

tio

n

After partloading

Coal generation

Coal generation

Gas generation

Gas generation

Coal generation

running at full

output

Coal generation

part-loadedto create flexibility

Gas generation turned on

to part-load to replace

energy from coal

Flexibility made

available

4

3

2

1

0

-1

-2

-3

-4

GW

Gas

Coal

00:00

08:00

12:0

016

:00

20:00

04:00

Actions taken for flexible reserve creation (no SPG)

Actions taken for flexible reserve creation (with SPG)

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Savings in the provision of flexibility

In GB, the costs of reserve creation are

recovered as a charge collected from

market participants, which are passed

on to consumers. AS SPG reduces the

need to create reserves by part loading

thermal plants, it produces considerable

savings, which are set out in Table 1.

This modelling indicated that significant

savings in managing the costs of

intermittent wind output could be possible.

Compared to using current practices,

we estimate savings of between GBP 381

million to GBP 545 million per annum in

2020 under different scenarios, and the

modelled savings are estimated to be as

high as GBP 1537 million per annum in

2030 by when the GB system will contain

more intermittent renewable capacity.

As consumers are the ones to ultimately

carry the costs of power system balancing,

using SPG results in significant savings

for consumers. Also, the study shows

clearly that the amount of savings

increases rapidly with increasing wind

penetration. As the share of intermittent

renewables is bound to grow according to

the current policies in several countries,

the value of flexible generation must be

understood when forming future energy

policies and market design principles.

[1] The IEA’s 450 scenario outlines an energy pathway that would limit the concentration of greenhouse gases in the atmosphere to a level of 450 parts CO2 per million.IEA 2011 , “Deploying Renewables: Market development for RE technologies”. IEA 2012, “IEA statistics: Electricity Information 2012”.

[2] The modelling assumptions were such that electricity produced from coal was calculated to be lower in cost than electricity produced from gas, meaning that coal was already on the market and available for being turned down to part-load.

Table 1 – Costs of creating flexible energy (reserve) with and without SPG.

Fig. 4 – System generation with SPG.

Fig. 5 – Proportion of system flexibility provided by different technologies.

GW

Interconnertors

SPG

Other

Offshore Wind

Onshore Wind

Pump Storage

Hydro

Peaking

Gas

Biomass

Coal

Nuclear

Demand

60

50

40

30

20

10

0

10/03/202004:00

10/03/202012:00

10/03/202020:00

10/03/202008:00

10/03/202016:00

10/03/2020

Pro

po

rtio

n o

f Sys

tem

Fle

xib

ility

No SPG

No SPG

No SPG

No SPG

Base BaseHigh High

2020 2030

With SPG

With SPG

With SPG

With SPG

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

SPG

Pump Storage

Hydro

Peaking

Gas

Biomass

Coal

Balancing costs – flexibility provision

(£ mn per annum, real 2011 )

2020 2030

Base Wind High Wind Base Wind High Wind

Cost – No SPG 692 1008 834 2781

Cost – With 4.8 GW SPG 311 464 256 1244

Cost Saving due to SPG 381 545 578 1537

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25in detail

A new service agreement solution for peaking power plantsAUTHOR: Kim Lindqvist , Suppor t & Development , S ervice Agreements, Wär tsi lä S ervices

Stefan Malm , Product S olut ions & Engineering , Wär tsi lä Power Plants

Fig. 1 – Condition monitoring and maintenance planning enable optimisation of lifecycle costs.

A service agreement is more than merely an effective way for ensuring the certainty of operations. It signifies the long-term co-operation of both parties in working towards a shared goal. Wärtsilä works hard to develop service agreements that meet the specific needs of customers.

A service agreement enhances business

With a tailor-made agreement, the

customer signs up for not only a long-

term partnership with Wärtsilä, but

also to achieve improved reliability and

availability. It also means maximised

lifetime for the installation and reduced

operational costs in a safe, reliable, and

environmentally sustainable way.

Technical expertise – locally and globally around the clock

Only a company with a global service

network has the capability to employ local

people to execute the agreement wherever

required. In terms of customer relations

it is important that the personnel speak

the local language, understand the culture

and build trust among customers.

An agreement also minimises the points

of contact for maintenance calls. Individual

equipment suppliers need not be contacted,

since Wärtsilä co-ordinates all maintenance

requests and provides easy access to

Wärtsilä’s local and global knowledge base.

A service agreement ensures certainty of operations for peaking power plants

Owners of peaking power plants expect

trouble-free operations from the facility.

During the first three years of operation, the

new Wärtsilä service agreement solution

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Fig. 2 – With a Wärtsilä customer support engineer on site, operational support is immediately available.

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27in detail

Please check Wärtsilä

Services Solution Studio,

Condition Monitoring:

www.wartsila.com/en/

solution-studio

provides onsite customer-support personnel,

scheduled and unscheduled maintenance,

as well as condition monitoring to

optimise the performance, availability, and

reliability of the asset. In short, the added

value means that the operator can focus

on his core business. A partnership with

Wärtsilä provides that peace of mind.

An investment in a peaking power

plant is mostly derived from the need

to occasionally compensate for a lack of

available electricity. A Wärtsilä service

agreement solution backed up with a

prolonged warranty, valid from the first day

of commercial operation, provides reduced

risk for the customer’s investment and

operations. Ensuring certainty of operations

also provides several other benefits, such as

increased efficiency and cost predictability.

An agreement is a sound investment

There are often significant seasonal, weekly

and daily variations in power demand. In a

multi-unit power plant the units can be

started and stopped as per power demand.

This means that the annual average unit

running hours, depending on the actual

load profile, can be considerably lower than

the annual plant running hours.

Especially in case the load profile varies

significantly, the influence on the maintenance

costs is considerable. In a multi-engine plant

the units can be dispatched, so that the

running hours are unequally spread on each

unit. This concept allows for scheduling the

maintenance one unit at a time, thereby

maximising the available power generation

capacity at any given time. Ideally, the

maintenance is scheduled at periods of

lower power demand. A Wärtsilä service

agreement is a sound investment since it

can directly impact the overall operational

efficiency of the plant. Moreover, this type of

agreement brings several other considerable

benefits. These include optimised and fixed

operational costs; improved operational

reliability; maximised uptime; dedicated

technical expertise and support from a

global network of skilled service experts;

minimised downtime through proper

maintenance and co-ordinated schedules;

online condition monitoring; and the

availability of OEM parts and consumables.

The right solution for peaking plants

This new solution is designed with the needs

of the customer in mind. Not all peaking

power plant customers are familiar with

Wärtsilä technology, nor do they all have

experience of working with the company.

This new service agreement solution is,

therefore, aimed at ensuring that the

customer's investment is secure and

predictable. By building a strong and

trusting partnership with the customer,

operational costs can be accurately estimated

and additional costs avoided. The service

agreement extends the warranty period of

the equipment and ensures that the

customer receives the highest level of support.

In short, the availability and reliability

of the plant will be maximised. All technical

support, maintenance planning, and safety

spare parts management planning is

customised according to the customer's

specific requirements.

On site operational support

A peaking power plant may operate for

many hours a day or for only a few hours

per year. Whatever the case, it is vital that

the plant has the ability to quickly reach

full capacity under all conditions. With

a Wärtsilä customer-support engineer

on site, the operator can be assured of a

reliable plant start-up. It also means that

fast and efficient communication with

Wärtsilä’s technical expertise is maintained.

The onsite customer-support engineer

also serves to minimise the number of

contact points for maintenance calls.

Maintenance planning to support the operating profile

Wärtsilä specialises in customised

maintenance agreements designed

specifically to meet the operational

requirements of individual power plants.

The company’s new agreement for peak-

load plants features prolonged warranty

coverage and a multi-portfolio services mix.

The improved forecasting of maintenance

needs, and the overall function of the

system, are achieved through the remote

monitoring, measuring, and analysis of

engine parameters. Wärtsilä’s technical

support and maintenance planning teams

offer unrivalled resources and know-how

for keeping equipment online and reducing

downtime. Data is analysed and trends

and changes in operating parameters can

be identified well before they might

compromise the performance of

the installation.

A cost-predictable future

Although savings are always important, it is

cost predictability that becomes even more

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vital when dealing with long-term business

performance. With OPEX predictability over

a longer period of time, lifecycle costs can

be forecasted accurately, and maintenance

expenses for the coming years can be

accurately budgeted. Part of this is achieved

through the inventory management of the

customer-owned onsite safety stock, which

is there to support the operating profile.

Preventing the unexpected

This service agreement is available for

new gas-fired peaking power plants in,

among other places, the USA, Europe, and

Australia. The service agreement is valid

from the first day of commercial operation.

A Wärtsilä service agreement is a proven

way of preventing the unexpected, and

keeping the installation productive and

profitable – throughout the entire lifecycle.

A peak-load maintenance agreement

provides optimised performance, and

includes a long-term warranty, an onsite

customer-support engineer with OEM

expertise; OEM services, inventory

management and remote monitoring to

improve reliability; OPEX predictability;

maintenance planning; and optimised

maintenance and logistics.

The basic idea behind a maintenance

agreement for peaking power plants with

Wärtsilä is long-term cooperation, where

both parties work towards a shared goal,

namely the company’s continued

productivity – and profitability.

What are the specific needs?

With more than 17,600 MW under service

agreements, and more than 500 installations

covering a wide variety of land-based,

marine and offshore installations being

operated and maintained by Wärtsilä, the

company is widely recognized as being

the preferred service supplier by customers.

These agreements ensure the availability and

cost-efficient operations of their installations.

Wärtsilä offers four types of standardised

agreements, ranging from supply agreements

to technical management, as well as

maintenance agreements and complete

asset management support. However, all

agreements are customised to fulfil each

customer’s specific needs.

Highlights of a maintenance agreement for peaking power plants

Long-term warranty coverage.

Available for new gas-fired peaking

power plants

Dedicated technical support. Customer-

support engineer with OEM expertise

ensuring fast and efficient communications

Condition monitoring to enable trending

and optimization of equipment

performance

Maintenance management. Maintenance

planning to support the operating

profile. Management of customer-

owned onsite safety stock.

Fig. 3 – Wärtsilä offers four types of standardised agreements.

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29in detail

EXAMPLE

– A FLEXIBLE POWER PLANT WITH A MAINTENANCE AGREEMENT: THE STEC RED GATE POWER PLANT, SOUTH TEXAS ELECTRIC COOPERATIVE

Powered by 12 Wärtsilä 50SG engines running on natural gas having a total output of 225 MW

Flexibility, quick start-up capability, superior load following, and favourable lifecycle costs

High efficiency engines result in fewer emissions of CO2 than simple cycle gas turbine solutions

High simple cycle efficiency achieved with minimal water consumption

Maintenance Agreement

The agreement provides a number of benefits:

Optimised maintenance for long-term plant availability, reliability, and efficiency

Technical and operational assistance with maintenance planning, technical advisors, spare parts, and an on-site inventory

Technical, parts and risk sharing support

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The tanker M/T Samurai.

Improving VLCC propulsion fuel efficiency with the Wärtsilä X82 engine

AUTHOR: Heinrich Schmid, General Manager Appl icat ion Development , Ship Power

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31in detail

With fuel costs currently responsible for

70 to 85 percent of the total costs of operating

vessels, it is hardly surprising that owners and

operators are demanding greater fuel

efficiency. From an average HFO price of

some USD 150 per ton in 2001, prices steadily

rose to an average close to USD 700 per ton

in 2012. Clearly, in order to keep running

costs at a justifiable level, greater fuel

efficiency is needed.

In addition to having to meet the

challenge of high operating costs, owners and

operators are also increasingly confronted

with environmental compliance requirements.

Despite the maritime industry’s claim that

shipping is the most environmentally

friendly mode of transportation it is,

nevertheless, under considerable pressure

from policy makers, regulatory bodies, and

even the general public to reduce emissions.

Since the level of emissions is directly related

to fuel consumption, it is essential that

today’s marine engines achieve the greatest

possible fuel efficiency.

The Wärtsilä X82 engine offers parameters

that meet this need.

The Wärtsilä X82 engine

The Wärtsilä X82 engine is the upgraded

version of the RT-flex82T engine. The

X82 engine was previously also known as

the RT-flex82T-B. The RT-flex82 engine

series was introduced in 2006; the short

stroke version as the RT-flex82C, and the

long stroke version as the RT-flex82T.

Following the accumulation of positive

service experience with the 82T version,

the X82 (RT-flex82T-B) engine was

introduced in 2011 as the upgraded version

with the following adaptations:

Mep increased from 20.0 bar to 21.0 bar

R1 + speed increased from

80 rpm to 84 rpm

R2/R4 speed reduced from 68 to 65 rpm

R4 power reduced to the same mep as R2

The physical shape of the engine is

characterised by its slim appearance, with

the fuel supply pumps arranged with

convenient accessibility close to the engine.

The electronic fuel injection and exhaust

valve control system is based on Table 1 – Parameters of the Wärtsilä RT-flex82T and Wärtsilä X82 engines.

RT-flex82T X82

Bore 820mm 820mm

Stroke 3375 mm 3375 mm

Stroke/bore ration 4.12 4.12

MCR power 4520 kW 4750 kW

MCR speed 76 - 80 rpm 76 - 84 rpm

R3 speed 68 rpm 65 rpm

Mep 20.0 bar 21.0 bar

RT-flex96CRTA96C

RT-flex82-CRTA82-C

RT-flex68-DRTA68-D

RT-flex50-D

RT-flex60C-B

RT-flex50-B

RT-flex48T-D

RT-flex58T-E

RT-flex58T-D RTA58T-D

RTA48T-D

RT-flex84T-DRTA84T-D

W-X82RTA82T-B

W-X35

W-X40

W-X62W-X72

W-X92

80,00070,00060,000

50,000

40,000

30,000

20,000

10,000

8000

6000

4000

3000

Output kWOutput bhp

Engine speed, rev/min60 70 80 90 100 120 140 160 180

100,000

80,000

60,000

40,000

20,000

10,000

8000

6000

Fig . 1 – The Wärtsilä two-stroke engine portfolio.

In order to reduce operating costs, fuel efficiency is essential. The new Wärtsilä X82 engine with its 65 to 84 rpm speed range is perfectly suited for optimal VLCC (Very Large Crude Carrier) operations.

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Fig. 3 – The rating fields of the Wärtsilä RT-flex82T and Wärtsilä X82 engines.

5000

RT-flex82T

4800

4600

4400

4200

4000

3800

3600

3400

3200

3000

280060 65 70 75

Speed (rpm)

Po

we

r p

er

cyl

ind

er

(kW

)

80 85 90

X82

R1 4750kW

4520kW

R1+

R1

R1+

Fig. 2 – The Wärtsilä RT-flex82T engine.

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33in detail

the highly efficient, simple and reliable

common rail technology. The common

rail platform, with its fuel injection and

exhaust valve actuation elements, is

arranged to provide good accessibility

at the engine’s upper platform level.

The rating field is characterised by the

R1+ / R2+ rating points, which offer the same

power as at R1 & R2 but at a higher speed.

The R1+ rating point features a 2 g/kWh

lower specific fuel consumption than the R1.

This R1+ rating field allows shipyards greater

freedom for propeller tuning (see Figure 3).

The Wärtsilä X82 offers an engine speed

as low as 65 rpm at R3 / R4 with a moderate

stroke to bore ratio of 4:12.

Wärtsilä’s common rail engine operating system

Electronically controlled fuel injection and

exhaust valve timing enables optimum

combustion under all circumstances.

The common rail system allows the fuel

nozzles to be individually activated. They

can be either sequentially operated so as to

influence NOX emissions or, alternatively,

one or two nozzles per cylinder can be

switched off to achieve an efficient and clean

combustion for low load operation. In single

nozzle mode, a stable engine speed of about

10 – 12 percent of the nominal engine speed

is possible.

To date, approximately 1000 Wärtsilä

RT-flex common rail engines have been

ordered, of which some 600 are already in

operation (Figure 4). For Very Large Crude

Carrier (VLCC) ships, the RT-flex82T engine

is reputedly the most popular choice of

engine.

Fig. 4 – The common rail engine operating system.

Fig. 5 – The VLCC "Crudmed" is powered by the first Wärtsilä RT-Flex82T engine.

Crankanglesensor

Controlsystem

Exhaust valveactuator

Fuelinjectors

Volmetric fuel injection control unit

Exhaust valveactuating unit

up to 1000 bar fuel HFO / MDO

200 bar servo oil and control oil

30 bar starting air

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Fig. 8 – Definition of the propeller design point.

Fig. 6 – Impact of propeller speed on the propellers optimal diameter and propulsion efficiency.

Fig. 7 – Selection of the optimum propeller speed.

60

65

70

75

80

85

90

95

100

105

110

115

120

88 90 92 94 96 98 100 102 104 106

Engine/Propeller speed (%)

99.0% 100.9%

Po

we

r (%

)

Nominal propeller curve

CMCR power

CSR = 90% CMCR power

CSR = 85% CMCR power

Propeller curve with 4.5% LR margin

Propeller design points

4.5% LR margin

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Fig. 9 – Typical open water propeller efficiencies for different propeller diameters.

Fig. 10 – The wake fraction and thrust deduction correction as a function of vessel length and propeller diameter, as proposed by S.A. Harvald.

Propulsion aspects

The efficiency of the daily fuel consumption

is defined as a result of the efficiency of

the propulsion system, and the specific

fuel consumption of the propulsion

machinery, i.e. the engine’s efficiency.

Propulsion efficiency is defined by

the following propulsion factors:

Open water propeller efficiency (η0)

Relative rotative efficiency (ηR)

Hull efficiency (ηH = (1-t)/(1-w)

Mechanical efficiency (ηM)

Propulsion efficiency ηP = η0* ηR* ηH* ηM

Propulsion efficiency is influenced by

the propeller speed and diameter

(Figures 6 & 7).

It is assumed that the relative rotative

and shaft efficiencies are not influenced

by variations in the propeller speed and

are, therefore, neglected for this study.

The engine’s fuel efficiency (specific fuel

consumption) is influenced by the ratio

between the maximum and mean effective

pressures. The higher the ratio, the higher

the fuel efficiency, i.e. increasing the pmax/

mep ratio results in lower specific fuel

consumption. Reducing the engine speed for

a defined power increases the mean effective

pressure and, therefore, also increases

the engine’s specific fuel consumption.

The following must be considered when

calculating the best propulsion efficiency:

Any variation in propeller diameter

(and speed) affects the open water

efficiency of the propeller.

Variations in the diameter of the

propeller affect the wake fraction

w and the thrust deduction t and,

therefore, the efficiency of the hull.

Variations in the engine / propeller

speed affect the engine’s specific fuel

consumption.

As mentioned earlier, the combination of

propulsion efficiency and engine efficiency

decides the daily fuel consumption. In

order, therefore, to achieve the best fuel

efficiency, it is important to take into

consideration changes in the propulsion

parameters (η0, ηH, BSFC) resulting

from variations in the propeller speed.

Propeller design point

It is assumed that the propeller is

optimised for light running conditions at

CSR power (see Figure 8). With that, the

propeller design point becomes roughly

the CMCR speed of the main engine.

Open water propeller efficiency

The open water efficiency of the propeller

is basically affected by its speed and

diameter. As a general rule, the larger the

propeller diameter, the higher the propeller

efficiency and the lower the propeller

speed. Since there is usually a limitation

in the diameter of the propeller due to

the draught of the vessel, the optimum

propeller speed is defined by the maximum

possible propeller diameter (Figure 7).

The difference in the open water efficiency

of the propeller can become as much as

5.3 for a VLCC, such as when comparing

a 10.9 m propeller running at 60 rpm and

a 9.4 m propeller running at 76 rpm.

The alpha-factor expresses the relative

power at a constant ship speed to

variations in the propeller’s speed and

diameter. For the reference case below,

the alpha-factor has a value of 0.23 within

a relevant propeller speed range of 60 –

76 rpm for VLCC propulsion. (Figure 9)

The open water propeller efficiency

calculation is based on the following:

CMCR power = 24,000 kW, CSR = 85,

w = 0.316, t = 0.265, 4 blades,

BAR = 0.45, 15.5 knots service speed,

5.5 LR margin.

Hull efficiency

Hull efficiency (ηH) is defined by the wake

fraction w and the thrust deduction t.

ηH = (1- t)/(1-w)

Wake fraction and thrust deduction can be

influenced by the diameter of the propeller,

as proposed by S.A.Harvald (Figure 10).

0.10

0.10

0W3 t3

tW

0

+ +

0.10

0.10

VLLC Range

0.02 0.03 0.04 0.05 0.06

D/L

0.07

Propeller diameter correction

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Due to the larger propeller, the wake fraction

becomes slightly lower and the thrust

deduction slightly larger. Thus, the larger

the propeller diameter, the lower the

hull efficiency becomes (Figure 11).

The Hamburg Ship Research Institute

(HSVA) has also studied the impact of

variations in propeller diameter on the

propulsion parameters. Contrary to

Harvald’s suggestion, HSVA proposes that

the thrust deduction is not affected by

changes in the diameter of the propeller, but

only by the wake fraction (see Figure 12).

For further study, the mean values from

both Harvald’s and HSVA’s proposals shall be

taken into consideration. The impact on the

change of propulsion parameters relative to

the propeller diameter is shown in Figure 13.

To ascertain the total propulsion

efficiency one should, therefore, not only

Fig. 11 – The impact of the propeller diameter on the propulsion coefficients according to Harvald´s proposal.

Fig. 12 – Impact of the propeller diameter on the propulsion coefficients according HSVA´s proposal.

consider the effect of the propeller diameter

on its open water efficiency, but the product

of the open water and hull efficiencies η0*

ηH, should also be taken into account.

With the propeller diameter adapted wake

fraction and thrust deduction, the alpha

factor becomes only 0.13, (Figure 14). This is

considerably less than the 0.23 alpha factor

found for the open water propeller efficiency

alone. This shows that the negative effect of

a smaller propeller at higher rotation speed

is not as large as one would conclude when

considering only the open water efficiency.

Engine specific fuel consumption

The engine has a defined specific fuel

consumption at its maximum power R1.

When the engine is derated within the

rating field, the BSFC can be reduced. The

cylinder pressure remains constant within

-3.50-3.00-2.50-2.00-1.50-1.00

-0.500.000.501.001.50

2.002.503.003.504.00

Propeller diameter (mm)

Comparison of wake fraction 1/(1-w), thrust deduction (1-t) and etaH(as proposed by S.A.Harvald)

Delta (1-t) [%]

De

lta

(1-t

), D

elt

a 1/

(1-w

), D

elt

a e

taH

[%]

9200 9400 9600 9800 10,000 10,200 10,400 10,600 10,800 11,000 11,200

Delta 1/(1-w) [%] Delta (etaH) [%]

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37in detail

Fig. 13 – Mean change of propulsion parameters.

Fig. 14 – Propeller diameter corrected propeller efficiency.

Fig. 15 – Impact of specific fuel consumption on engine speed.

the rating field, and the BSFC is similar with

the same ratio (pmax / mep). Since the mep

can be reduced through engine derating,

a more favourable ratio (pmax / mep) is

achieved, thus making a reduced specific

fuel consumption possible (Figure 15).

With an alpha-factor of 0.13, the power is

24,830 kW at 65 rpm and 25,340 kW at 76

rpm, representing a power increase of 2.0.

The specific fuel consumption increase

from 76 rpm (156.4 g/kWh) to 65 rpm

(159.6 g/kWh) is 3.2 g/kWh or 2.0 .

This means that the gain in propulsion

efficiency with a lower propeller speed

and larger propeller diameter is offset

by a loss in the engine’s fuel efficiency.

However, at 65 rpm a propeller diameter

of about 10.5 m is required while at

76 rpm, a propeller diameter of about

9.7 m provides optimum conditions.

No difference in daily fuel consumption

can be seen, regardless of whether a

speed of 65 rpm or 76 rpm is selected.

Instead, the installation with

the 10.5 m propeller

Requires more aft draught for ballast

voyage

Requires the bunkering of more

ballast water

Increases the investment cost

Might become critical for the required

vessel visibility distance

Ballast operation

It is assumed that the forward ballast draught

is 8.5 m. The aft ballast draught depends

on the diameter of the propeller. Assuming

a minimal propeller base line clearance of

0.2m and a minimal propeller

-3.50

-3.00

-2.50

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Propeller diameter (mm)

Comparison between the wake fraction 1/(1-w), thrust deduction (1-t) and etaH(mean values S.A.Harvald / HSVA)

De

lta

(1-t

), D

elt

a 1/

(1-w

), D

elt

a e

taH

[%]

9200 9400 9600 9800 10,000 10,200 10,400 10,600 10,800 11,000 11,200

Mean Delta 1/(1-w)

Mean Delta (1-t)

Mean Delta (etaH)

Diameter 10.9mDiameter 10.6mDiameter 10.3m

Diameter 10.0mDiameter 9.7mDiameter 9.4m

0.500

0.5400.530

0.5200.510

0.550

0.5600.5700.5800.5900.600

0.6100.6200.6300.640

0.650

Propeller speed at CMCR (rpm)

3.0%

56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86

-factor = 0.13

(P1/P2 = [n1/n2] )

20,000

21,000

22,000

23,000

24,000

25,000

26,000

27,000

28,000

29,000

30,000

31,000

32,000

33,000

34,000

35,000

60.0 65.0 70.0 75.0 80.0 85.0

Speed (rpm)

Po

we

r (k

W)

7X82

R2+

mep = 100%

mep = 76%

R1167.0 g/kWh

R1+165.0 g/kWh

167.0 g/kWhR3

159.6 g/kWhat 85% load

156.4 g/kWhat 85% load

160.0 g/kWhR2

160.0 g/kWhR4

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immersion of 0.5m, the aft ballast draught

becomes a function of the propeller

diameter. It is further assumed that by

increasing the ballast draught by 1.0m,

3.0 percent more propulsion power is

required for the same ship speed. This is a

consequence of the increased draught and

trim adding ship resistance (see Table 2).

Since a typical VLCC operates for 30 to

50 percent of the time at ballast draught,

the impact on annual fuel consumption

with the large propeller can become

significant. It can be assumed that for 1.0m

more aft ballast, 9000 m3 more ballast

water must be bunkered (Table 3).

The amount of ballast water that needs to

be bunkered is an operating cost factor.

Ballast water needs to be treated and handled,

both of which take energy and time.

Visibility distance

The visibility distance from the bridge over

the bow must be 2.0 times the length of the

vessel, or at least 500 metres, whichever

is less (SOLAS Chapter V, Regulation 22).

More draught aft due to a larger propeller

reduces the visibility distance. For 1.0m

more aft draught, the visibility distance

increases by some 50 m. It might, therefore,

even be necessary to raise the wheelhouse

should a large propeller be applied so as

to ensure the correct visibility distance.

Table 4 – Daily fuel consumption comparison.

Service speed

CMCR power

CMCR speed

CSR load

CSR power

BSFC

Daily fuel consumption

Difference

knots

kW

rpm

%

kW

g/kWh

tons

tons

24,000

65

20,400

156.8

76.77

0

15.5

7X82

15.5

7G80ME-C9.2

24,370

73

20,715

154.5

76.81

0.04

23,750

60

20,188

160.0

77.52

0.75

24,190

69

20,562

155.6

76.78

0

24,000

65

20,400

158.2

77.45

0.69

85 85

Table 2 – The effect on propulsion power and aft ballast draught resulting from different propeller diameters.

Table 3 – Ballast water bunker versus propeller diameter.

9.4 m

9.7 m

10.0 m

10.3 m

10.6 m

10.9 m

10.1 m

10.4 m

10.7 m

11.0 m

11.3 m

11.6 m

0.0 m

+0.3 m

+0.6 m

+0.9 m

+1.2 m

+1.5 m

0.0 %

+0.9 %

+1.8 %

+2.7 %

+3.6 %

+4.5 %

Propeller diameter

Aftdraught Difference

Additionalpropulsion power

9.4 m

9.7 m

10.0 m

10.3 m

10.6 m

10.9 m

0.0 m3

+2700 m3

+5400 m3

+8100 m3

+10,800 m3

+13,500 m3

Propeller diameter

Additionalwater bunker

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39in detail

Case study

The lifecycle fuel consumption of a VLCC

having the following data is to be studied:

CMCR power: 24,000 kW

CMCR speed: 65 rpm

CSR load: 85

Service power: 20,400 kW

Service speed: 61.6 rpm

Vessel service speed: 15.5 knots

Propeller diameter: 10.5 m

Main engine options (Figure 16):

7- cylinder Wärtsilä X82

CMCR = 24,000 kW at 65 rpm

CMCR = 24,200 kW at 69 rpm

CMCR = 24,400 kW at 73.2 rpm

7G80ME-C9.2

CMCR = 24,000 kW at 65 rpm

CMCR = 23,730 kW at 60 rpm

The specific fuel consumption for the

various engine options is shown in Figure 17.

The fuel consumption characteristic is the

nominal consumption without tolerance.

It is based on an air temperature of 25°C

and a cooling water temperature of 25°C.

The benefits provided by the new FAST

fuel injectors are taken into consideration

concerning the X82 engine’s consumption.

Table 4 shows the daily fuel consumption

for the various engine options.

This case study clearly demonstrates

that, in the case of VLCC propulsion,

a variation in propeller speed and

diameter has no practical influence

on the daily fuel consumption.

Lifecycle fuel costs

Daily fuel consumption gives an indication

of a vessel’s fuel efficiency. However, this

dimension does not give an indication of

the annual or lifecycle fuel costs. Ballast

operation and the vessel’s operating

profile are not taken into consideration

as regards the daily fuel consumption.

For the lifecycle fuel cost calculation,

the following conditions are assumed:

6720 operating hours per year (280 days)

50 loaded, 50 ballast

Operating profile in accordance

with Figure 18

HFO price of USD 700/t

It is assumed that the vessel operates at

the same speed in both loaded and ballast

conditions. It is further assumed that during

ballast operation, about 1.5 knots more

Fig. 17 – Specific fuel consumption comparison.

Fig. 18 – Assumed vessel operating profile.

Fig. 16 – Engine layout.

55.0 60.0 65.0 70.0 75.0 80.0 85.0 90.0

Speed (rpm)

18,000

19,000

20,000

21,000

22,000

23,000

24,000

25,000

26,000

27,000

28,000

29,000

30,000

31,000

32,000

33,000

34,000

35,000

Po

we

r (k

W)

CMCR = 23,750 kWat 60 rpmDprop = 10.9 m

Const speed V = 15.5 kt Alpha = 0.13

CMCR = 24,000 kW

at 65 rpm

Dprop = 10.5 m

CMCR = 24,190 kW

at 69 rpm

Dprop = 10.1 m

CMCR = 24,370 kW

at 73 rpm

Dprop = 9.7 m

7X82

7G80ME-C9.2 Design point

CMCR = 23,750 kWat 60 rpmDprop = 10.9 m

CMCR = 24,000 kW

at 65 rpm

Dprop = 10.5 m

CMCR = 24,190 kW

at 69 rpm

Dprop = 10.1 m

CMCR = 24,370 kW

at 73 rpm

Dprop = 9.7 m

7X82, 24,000 kW at 65 rpm (Delta, FAST)

7X82, 24,370 kW at 73 rpm (Delta, FAST)

7G80ME-C9.2, 23,750 kW at 60 rpm, High Load

7X82, 24,190 kW at 69 rpm (Delta, FAST)

7G80ME-C9.2, 24,000 kW at 65 rpm, High Load

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

Engine load (%)

Nominal Specific Fuel Consumption

Sp

ec

ific

fue

l co

nsu

mp

tio

n (

g/k

Wh

)

35 40 45 50 55 60 65 70 75 80 85 90 95 100

160.0

158.2

156.8

155.6

154.5

Op

era

tin

g h

ou

rs

0

500

1000

1500

2000

2500

3000

3500

15.5 knots

2500

14.5 knots

3000

13.5 knots

1220

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Fig. 20 – Difference in lifecycle costs.

Fig. 21 – The open water propeller characteristic with different numbers of propeller blades.

Fig. 19 – Loaded/ballast power/speed assumption.

Propeller speed (rpm)

0.53

0.54

0.55

0.56

0.57

0.58

0.59

0.60

Op

en

wa

ter

pro

pe

ller

effi

cie

nc

y e

ta 0

(%)

54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88

3-blade, 10.0 m 3-blade, 10.6 m

4-blade, 10.0 m 4-blade, 10.6 m

5-blade, 10.0 m 5-blade, 10.6 m

Speed (knots)

Power / speed characteristic

Loaded

1.5 knots

12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0

0

5000

10,000

15,000

20,000

25,000

30,000

35,000

Po

we

r (k

W)

Ballast

An

nu

al H

FO

(US

$)

7X82

24,000 kW at 65 rpm

dprop = 10.5 m

7X82

24,190 kW at 69 rpm

dprop = 10.1 m

7X82

24,370 kW at 73.2 rpm

dprop = 9.7 m

7G80ME-C9.2

24,000 kW at 65 rpm

dprop = 10.5 m

7G80ME-C9.2

23,750 kW at 60 rpm

dprop = 10.9 m

11,700,000

11,750,000

11,800,000

11,850,000

11,900,000

11,950,000

12,000,000

12,050,000

12,100,000

12,150,000

0

-41,300 $

-81,200 $

+257,600 $+124,600 $

+176,400 $

ship speed is achieved than when in loaded

condition at the same power (Figure 19).

The lifecycle fuel cost calculation in

Table 5 clearly demonstrates that opting

for a lower propeller speed in combination

with a large propeller diameter does

not bring any operational cost benefit

(Figure 20). On the contrary, solutions

involving a very large propeller result in:

Higher total fuel costs

and higher investment costs

More ballast water bunkering

and visibility distance problems

This case as described can be considered

as being just one possible scenario.

Depending on the actual hull lines, the

actual result might be different. However,

the statement that the propeller diameter

has an effect upon the propulsion

parameters is valid for any VLCC hull form.

Variations in the number of propeller blades

Traditionally, four bladed propellers

are used for VLCC propulsion. Either

5-bladed or 3-bladed propellers could

also be considered. Open water

propeller efficiency calculations show

the following results (Figure 21):

A 5-bladed propeller has an optimum

propeller speed at about five

revolutions fewer than a 4-bladed

propeller. Only a very slight efficiency

improvement can be achieved.

A 3-bladed propeller has an

optimum propeller speed at about

six revolutions more than a 4-bladed

propeller. An efficiency improvement

of up to 1 might be possible.

Model tests made by HSVA showed

promising results. Somewhat more

cavitation and higher hull pressure pulses

were experienced, but these were still

within acceptable levels. Since the optimum

speed for the 3-bladed propeller is higher

than that of a 4-bladed propeller, it can

therefore also profit from better engine

specific fuel consumption. A 3-bladed

propeller could well be an alternative

for tanker and bulker propulsion.

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Table 5 – Lifecycle fuel cost calculation.

Service speed

CMCR power

CMCR speed

CSR load

CSR power

BSFC

Daily fuel consumption

Difference

knots

kW

rpm

%

kW

g/kWh

tons

tons

24’000

65

20’400

156.8

76.77

0

15.5

7X82 7X82 7X82 7G80ME-C9.2 7G80ME-C9.2

85

CMCR power

CMCR speed

Propeller diameter

Vessel speed

Loaded operation

CSR load

CSR power

Operating time

BSFC

HFO consumption*

Total

Ballast operation

Power penalty

CSR load

CSR power

Operating time

BSFC

HFO consumption*

Total

Total

Difference

Difference**

kW

rpm

mm

%

kW

hours

g/kWh

tons

tons

%

%

kW

hours

g/kWh

tons

tons

tons

tons

$

24,000 24,190 24,370 24,000 23,750

65 69 73.2 65 60

10,500 10,100 9700 10,500 10,900

15.5 14.5 13.5 15.5 14.5 13.5 15.5 14.5 13.5 15.5 14.5 13.5 15.5 14.5 13.5

85 70 56 85 70 56 85 70 56 85 70 55 85 70 56

20,400 16,701 13,478 20,562 16,833 13,585 20,715 16,958 13,686 20,400 16,701 13,478 20,188 16,527 13,338

1250 1500 610 1250 1500 610 1250 1500 610 1250 1500 610 1250 1500 610

156.8 155.6 158.2 155.6 154.4 157.3 154.5 153.3 156.6 158.2 157.2 160.0 160.0 158.9 161.4

4216 4110 1371 4216 4110 1374 4218 4111 1378 4253 4152 1387 4257 4153 1385

9697 9701 9708 9792 9794

0.0 -1.2 -2.4 0.0 1.2

64.4 51.8 40.9 64.2 51.6 40.8 62.9 50.6 40.0 64.4 51.8 40.9 65.2 52.4 41.4

15,462 12,430 9862 15,398 12,378 9785 15,324 12,319 9738 15,462 12,430 9862 15,485 12,448 9840

1250 1500 610 1250 1500 610 1250 1500 610 1250 1500 610 1250 1500 610

156.3 159.1 162.7 155.4 158.6 162.0 154.7 158.0 161.6 158.1 161.2 164.2 159.6 162.2 165.1

3185 3128 1028 3154 3105 1019 3124 3078 1012 3222 3169 1038 3257 3193 1045

7341 7278 7215 7428 7495

17,038 16,979 16,922 17,220 17,290

-59 -115 183 252

-41,083 -80,797 128,061 176,470

CONCLUSION

The open water efficiency of the propeller

is affected by its speed and diameter. As

a general rule, the larger the propeller

diameter, the higher the propeller efficiency

and the lower its speed becomes. However,

the propeller’s diameter has an influence on

the hull efficiency. With a large diameter

used to achieve low propeller speed, the

hull efficiency is lower than with a smaller

propeller diameter in combination with

a higher propeller speed. Considering

this influence, the impact on propulsion

efficiency becomes moderate when

varying the propeller speed and diameter.

Furthermore, the engine efficiency

(specific fuel consumption) is lowered

with a reduced speed at the same power.

As a result, the gain in propulsion

efficiency with a lower engine/propeller

speed and a larger propeller diameter is

offset by a loss in the engine’s fuel efficiency.

No difference in daily fuel consumption

can be noted when varying the propeller

speed and diameter within the available

speed range of the Wärtsilä X82 engine.

In that respect, it needs to be noted

that the moderate propeller diameter

solution provides better conditions

for ballast operation. This solution,

therefore, provides a concept that offers

the lowest annual fuel consumption.

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Wärtsilä’s fuel gas handling system,

LNGPac™, has aroused huge interest, and

many customers have already selected the

LNGPac™ system for their new-buildings

or gas conversions. However, while

conventional fuel gas handling systems

with stationary tanks (LNGPac™) are, and

will remain, the most popular choice, they

might not be best suited for all ships.

A fuel gas handling system utilizing

removable LNG fuel tank containers is

an option worth considering in many

different cases. For small and medium

sized vessels, which do not require a large

LNG capacity, such a solution offers a viable

alternative to conventional stationary LNG

tanks. If LNG bunkering facilities are not

available or bunkering is not possible,

using LNG as fuel can still be realised by

using LNG fuel tank containers. These

containers can be transported by road to

the nearest LNG terminal for refilling, and

then loaded onboard the ship with no

bunkering procedures required at the port.

The LNG container can also be used as a

cost effective and standardized LNG fuel tank

Increasing flexibility in LNG fuel handling – the LNGPacTM ISO

AUTHORS: Jonatan Byggmästar, Development engineer, Fuel Gas Handl ing , Ship Power

Sören Karlsson, General Manager, Fuel Gas Handl ing , Ship Power

The option of having LNG as fuel for a variety of different ship types is already available. Emission reduction requirements and cost competitive gas prices are the main driving forces behind this increasing trend towards LNG. The LNGPac™ ISO, a fuel gas handling system based on removable LNG fuel tank containers, is a new way of making LNG fuel available when a stationary tank solution is not possible.

Fig. 1 – LNGPacTM

ISO layout arrangement from LNG fuel tank containers to the GVU-EDTM

.

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43in detail

Wärtsilä LNG fuel tank container Standard ISO tank container

Standard ISO frame

Compliance with transportation regulations (IMDG, TPED, ADR, RID, CSC among others)

Compliance with rules for use as LNG fuel tank on board ships:

IMO Type-C tank

Water spraying system

Tank safety relief valves designed for fire case

Connection to external vent mast

LNG leakage detection and protection

Class approved equipment & design

Stainless steel outer shell

Dry disconnect quick couplings

Connections at end for connecting to ship

Connection to automation system on the ship

Connection to safety systems on the ship

for stationary applications. The frame

standard size dimensions and the

modularised skid-based fuel gas handling

system make installation fast and cost

competitive.

LNGPac™ ISO

The LNGPac™ ISO is a fuel gas handling

system based on mobile LNG fuel tank

containers. Besides the LNG fuel tank

container, the system consists of a docking

station and an evaporator skid installed

permanently on the ship. The LNGPac™

ISO is intended to be installed on an

open and naturally ventilated deck.

Tank containers intended for the

transportation of cryogenic liquids, e.g.

LNG, are an alternative for use as fuel

storage tanks onboard LNG fuelled ships.

However, a normal tank container intended

for transporting LNG cannot be used since

it does not fulfil all the requirements for

marine LNG fuel tanks. Modifications

relating to remote monitoring and safety

systems, IMO type C tank requirements,

and leakage & spill protection are a

few items that need to be specifically

considered for marine fuel tanks.

LNG fuel tank containers

Removable and transportable LNG fuel

tank containers are used as fuel tanks in

Table 1 – A standard ISO tank container used for transport of cryogenig fluids does not fulfil the requirement of a LNG fuel tank on a ship.

the LNGPac™ ISO fuel gas handling system.

The containers, which are designed to fulfil

all marine LNG tank requirements, are of

standard ISO frame dimensions (20 ft, 40

ft and 45 ft) and can be transported by

road, rail and sea, although the maximum

gross weight may vary in different

countries for land transportation.

The fuel tank is an IMO type C pressure

vessel enclosed within an outer tank. Both

the inner and the outer tanks are made

of stainless steel, which means that the

outer enclosure will act as a secondary

containment. The LNG fuel tank container

is fitted with process equipment, namely

the valves and instruments required

for operational and safety purposes.

The LNG fuel tank container is also

fitted with a pressure build-up evaporator

(PBE) for building up and maintaining an

operational pressure of approximately 5

bar in the tank. The pressurized tank is

used instead of having rotating equipment,

such as pumps and/or compressors to

feed the gas to the engines. Having a

PBE on the container makes the LNG fuel

tank containers completely redundant.

If, for some reason, a container is

out of service another container can

be easily taken into operation.

The connection points are located at

the end of the LNG fuel tank container

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unloading the LNG fuel tank containers.

The containers are located on cassettes

and secured by twistlocks. On board the

ship the cassette is secured to the deck,

for example with twistlocks and lashing

as a secondary fastening arrangement.

Another possible fastening and securing

option is to directly secure the LNG fuel tank

container with twistlocks and lashing to the

deck. This would be a suitable solution for

container feeders and other vessels where

the containers can be lifted on and off. It

is also possible to utilize these containers

as stationary LNG tanks, which are not

removed frequently for filling. In this

case, a bunkering station can be installed

to allow the LNG fuel tank container to

be bunkered directly on the vessel.

for easy and smooth hook-up of the LNG

fuel tank container to the onboard fuel

gas handling system. These connections

consist of the LNG discharge, the vent mast

connection, heating media connections,

and a connection to the water spraying

system built onto the LNG fuel tank

container. For fuel tanks located above

deck, a water spray system is required

to cool the LNG tank in case of fire.

Fastening and securing

The LNG fuel tank containers have to be

rigidly fastened and secured to the deck.

The fastening and securing system has to

be designed for the maximum dynamic and

static inclinations, as well as the maximum

accelerations, of the vessel. A number

of feasible solutions exist. On RoRo and

RoPax vessels it is possible to use terminal

tractors with trailers for loading and

Docking station

The docking station is the module

whereby the LNG fuel tank containers

are connected to the fuel gas handling

system onboard the ship. The number

of LNG fuel tank container slots in the

docking station is defined according to

the required LNG capacity for the specific

vessel. The engine gas consumption, sea

voyage length, and the interval between

changing the containers defines the required

number of LNG fuel tank containers.

All the necessary connections between

the LNG fuel tank container and the fuel

gas handling system are located in the

docking station for easy and practical

connecting operations. Flexible hoses

fitted with quick couplings are used to

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Fig. 2 – Terminal tractor loading LNG fuel tank containers onboard a RoRo ship.

attach the process connections. The quick

couplings have a closing valve in both

coupling units to prevent any leakage when

connecting and disconnecting the hoses.

The instrument readings and control

signals for the remote controlled valves on

the LNG fuel tank container are connected

to a junction box in the docking station.

There is a data connection and a hard wired

cable connection for increased safety.

Preparation of the gas

The LNG is discharged from the fuel tank

containers via the docking station to the

evaporator skid. The evaporator skid is the

module where the LNG is vaporized and

heated to the conditions required by the

engine (i.e. 0 – 60 °C). The master gas fuel

valve, which is the last safety related stop

valve in the gas supply system outside the

machinery spaces, is installed after the main

gas evaporator on the evaporator skid.

The LNGPac™ ISO is controlled and

monitored by a control and safety

system. All modules, including the LNG

fuel tank containers, are monitored

and controlled by a single dedicated

PLC-based automation system.

Ship arrangement

The LNGPac™ ISO is intended to be located

on an open deck where natural ventilation

is ensured at all times. Drip trays must be

installed under the skids, and also under

the hose connections between the LNG fuel

tank containers and the docking station.

This is to prevent possible LNG leaks from

damaging the deck beneath the skids.

Design and feasibility study

A design and feasibility study has been

conducted together with Germanischer

Lloyd (GL) for the conversion of a RoRo

vessel to gas using the LNGPac™ ISO as the

fuel gas handling system. Four LNG fuel

tank containers, the docking station, and

the evaporator skid were located on the

naturally ventilated aft deck. The LNG fuel

tank containers were located on cassettes,

and secured with twistlocks and lashing.

A second set of LNG fuel tank containers

would be refilled in advance so as to be

ready for switching with the empty LNG fuel

tank containers when the ship is in port.

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LNG fuel tank container 20 ft 40 ft

Frame dimensions (external)

Length m 6058 12,192

Width m 2438 2438

Height m 2591 2591

Tank

Geometrical volume (approx, room temp.) m3

20 40

LNG volume (80 % effective volume) m3

16 32

Other sizes on request.

Fig. 3 – LNG fuel containers loaded and connected to the onboard fuel gas handling system.

Table 2 – Typical characteristics of LNG fuel tank containers of different sizes.

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In the area where the fuel gas handling

system was located, potential existing

ventilation inlets and outlets, as well as

the electrical equipment, would have to

be modified due to the hazardous zones

around the fuel gas handling system.

For protection of the surrounding ship

structures, and for weather protection

of the equipment, the docking station

and evaporator skid would be located on

drip trays in naturally ventilated shelters.

Escape routes were planned from all

areas, especially from the docking station

where the flexible hose connections to the

LNG fuel tank containers were located.

As part of the study, a comprehensive

risk analysis was performed of the fuel gas

handling system. A risk analysis is required

for a gas fuelled ship where operational

risks and risks associated with physical

arrangements are indentified and eliminated

or mitigated. The major hazard for a fuel

gas handling system on a ship is LNG

leakage, and the subsequent damage to the

vessel. Where LNG leakages can occur, two

important things have to be incorporated

into the design. Firstly, no damage that

can harm the integrity of the ship can be

allowed to happen. Secondly, there has to

be a way to detect and identify the leakage

in order to stop and limit the leakage

and the consequences. Potential leakage

sources were identified for the LNGPac™ ISO

modules and corrective actions were taken.

CONCLUSIONS

Wärtsilä is today recognized as a leader

in propulsion solutions for gas fuelled

vessels. The company's strong and early

commitment to this goal has created in

depth knowledge of the use of natural gas

and LNG. The Wärtsilä LNGPac™ ISO is an

addition to Wärtsilä’s portfolio of solutions

for the LNG fuelled ship market. It represents

further proof of Wärtsilä’s expertise and

knowledge of LNG applications, as well

as its dedication to make LNG available

for all ship operators and owners.

Fig. 4 – Environmentally friendly RoRo vessel sailing on gas.

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Sustainable Business is the current business

model that most larger global organisations

are following. But what is a sustainable

business model? Sustainable business is

how an organisation creates, delivers, and

captures value in a truly sustainable way. It

is a means of delivering commercial success

while also being aware of the environment,

and of delivering products and services

that improve people’s quality of life.

Integral parts of this concept include

energy savings, risk management, and

sustainable development. New technologies

and operational requirements bring

ever increasing importance on knowing

exactly the competence level of the people

employed, and their ability to perform

effectively and efficiently. The Wärtsilä

Instructor assessment of auxiliary systems simulator operation exercise.

How do we know what you know? A perspective on professional skills managementAUTHORS: Peter Lancaster, Manager, Training S ales Suppor t

Matti Olli , General Manager, Training S ervices

A regulated competence assessment programme can result in operational cost savings for ship owners or power plant operators. Wärtsilä has in place solutions to the question of how to assess the technical knowledge and skills needed to achieve company goals.

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Land & Sea Academy (WLSA) has been

instrumental since 2002 in establishing and

developing internet based processes and

tools that aid Wärtsilä’s global technical

training infrastructure. The increasing use of

Human Capital Development Management

Systems (HCDMS) and Competence &

Career Development Management Systems

(C&CDMS) by larger global organisations is

well known. However, an essential element

that is not usually included in the supply of

the software platform is an application for

assessment and, most importantly, the

content and methodology for carrying

out this assessment.

Assessment is an essential part of the competence loop

To achieve business growth, the management

of people and their level is an essential part

of business growth.

As seen in the process diagram, the people

skills must match the vision and strategy goals

of the organisation. Competence

management systems enable an organisation

to administrate, develop, and monitor the

competencies of employees and the company

as a whole, so that business objectives can

be met. In short, such systems help both

the company and its employees to

meet future challenges. Competence

management is also;

A strategy based approach to identifying

the core competences of the company

A process to develop further competences

that support the implementation

of the company’s strategies

A way to focus the training budget

on the critical areas for success

Assessment is a critical factor in completing

this loop, and for minimising risk and

enabling the achievement of company goals.

Assessment in practice

There are various ways of carrying out

the assessment process, as shown below.

Being a truly global organisation, Wärtsilä

must select a way of working that will be

accepted by customers and in all regions

of the company’s global network. The

assessment application must be equally

accessible regardless of the location, so that

an equitable and fair result can be attained.

Self Assessment

Self Assessment is an easy way to obtain an

estimation of individual competence, but it

is not reliable since, for obvious reasons, it

is very difficult for employees to present a

realistically valid report on themselves. But

it has a value in itself because of the

Fig. 1 – Standard Competence CIP Model.

Vision Strategy

Goals

Competence and Career Management Process

Position Competence

Requirements

IndividualCompetence Assessment

Skill Gap Analysis

Personal Development

PlanIndividual

Competence Development Are gaps

closed?

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broad knowledge base that is available as

material for revalidation. If we have skills,

for example, that have been learned and

in use for some time already, then we

consider ourselves as having some degree

of current competence in the area. This

degree of current competence is usually

overrated, but nevertheless reported in

a self assessment as a current skill.

Testimonial Assessment

The Testimonial Assessment is given by

a person having a working or personal

relationship with the individual, and like

the Self Assessment, is relatively easy to

implement. It generally has greater value

than Self Assessment when determining

the current and realistic competence of

the individual’s suitability for particular

positions. There is also a reliability issue

here because of personal relationships,

cultures, and career objectives that may

bias the testimonial to the advantage

or disadvantage of the individual.

Practical (and/or simulated) Assessment

WLSA usually covers this assessment

method by utilising the facilities of its

global Training Centres. The practical

assessment is based on a series of task cards

and exercises that the participant completes

using the training engines, auxiliary

components, and calibration and measuring

equipment. The WLSA instructor, or an

experienced service engineer, will supervise

the trainee throughout the assessment task

process. The task cards cover all operations,

maintenance actions, and measurements

required for efficient plant operation.

This assessment can be carried out in the

Training Centre or on site. The performance

of the trainee is evaluated by the instructor,

and a recommendation is made regarding

further actions for improving his/her level of

competence. This method is combined with

the theoretical assessment to give the most

comprehensive means of demonstrating the

knowledge and skills of the participant.

A simulated environment for engine

and auxiliary equipment where practical

Fig. 2 – 360 °Assessment Model.

Overall weighted assessment

Self assessment

Theoretical test/exam based assessment

Testimonialassessment

Practical/simulator based assessment

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51in detail

Fig. 3 – Practical assessment exercise involving measurement practices.

exercises and design and function

concepts are assessed, is available at

selected WLSA Training Centres. Simulator

exercises for engine operation can also

be conducted remotely via the internet.

Theoretical Assessment

Probably everyone has been subjected

to this type of assessment in one form or

another. There are many points of view

about conducting this type of test and

many arguments against the use of this

method, but it is still with us in all spheres

of learning as a method of assessing

the knowledge of the individual. This

method is widely used, mainly because it

is practical and gives a reasonable result.

WLSA uses a form of this method as

part of its Assessment tool. There is an

application that uses the four choice/

multiple choice (4CMC) question

philosophy. The collation of the question

database is the most time consuming part

of the process. Subject matter experts

together with technical writers compose

questions that confirm whether or not the

subject knowledge base is fully understood,

and that the learning objectives have been

achieved. These question banks or modules

are available for Wärtsilä products such as,

Gas engine 4-stroke portfolio

Diesel engine 4-stroke portfolio

Diesel engine 2-stroke potfolio

Engine electrical & automation

Steam plants

Auxiliary machinery

4CMC question modules can be made to

order for specific customers or purposes,

such as a new power plant, as an adjunct in

the selection or training of operating and

maintenance personnel.

As a global company, access is also required

to the assessment tool by all Wärtsilä network

companies and customers. This needs,

therefore, to be operable via the internet.

This tool will in future be cloud based, thus

dramatically increasing the connectivity.

The WLSA Assessment tool has a database

of thousands of 4CMC questions in

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Fig.4 – Assessment tool initial web page.

Fig. 5 – Example of assessment web page.

START YOUR BROWSER Type Type http://wlsa.wartsila.com Click TRAINING COURSES button On the TRAINING COURSES

window, Clik Registered Customer Login link

Step 1

TRAINING COURSES buttonRegistered Customer Login

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Table 1 – Example of competence assessment result matrix.

different categories available for computer

random selection of those needed for any

individual assessment. The compilation

of the question bank is the most work

intensive part of the operation. Experts in

the specific fields of knowledge are actively

involved in the making and updating of

these questions, which are arranged in

different skill sets. At present these skill

sets cover Wärtsilä’s mechanical, electrical,

and environmental products. Development

of these skill sets can also be made project

and customer specific to suit different

training objectives. The whole assessment

process is easy and straightforward.

1. One applies for a specific on

line assessment module.

2. WLSA will register the applicant in

SABA (Wärtsilä HCDMS software) and

allocate an individual ID and password.

3. The applicant follows the opening

instructions and participates

in the assessment.

When the assessment is completed, the

result will be given in the format selected.

The distribution and manner of the

result can be modified to suit individual

requirements. The result can be shown at

the time of the assessment to the trainee

as a percentage, as a pass or fail, or just as

a thank you message. Distribution can be

via an email to the trainee or other party/s

as agreed.

This assessment process, when used by

larger groups, can be a basis for selecting

further training programmes to improve

competence levels. It is highly cost effective

in targeting the major skill gaps within

the group.

WLSA has been co-operating with the PBI

Research Institute, the project consulting

company, to arrive at a suitable grading

system for the 4CMC question method, and

for presenting the result in a meaningful

way that quickly identifies where the

competence risks are. From this result,

WLSA is able to deliver a recommendation

to the trainee and/or customer on the range

of courses available to obtain the needed

competences. Benchmarking pilot assessments

have been conducted involving people from

different responsibility positions (support,

operational and management), as have

theoretical investigations and confirmations

by PBI.

Securing the correct personnel is made

easier by using the WLSA assessment. If new

employees are needed to fill positions as

operators, maintenance staff, and managers

for power plants or marine installations,

then this application can really help.

Assessment is a key element of risk management.

A regulated competence assessment

programme for operation and maintenance

personnel is a wise decision for any ship

owner or power plant operator. If the plant

is operating properly there are savings to be

made in fuel and maintenance procedures,

while also conforming to all the environmental

requirements. WLSA recognises this fact and

has in place solutions to the question of how

to assess the technical knowledge and skills

needed to successfully compliment company

goals. Having people with the correct

knowledge and skills will ensure a meaningful

contribution to a sustainable business model.

W34SG ABB Equipment Safety Operations Management Control System TOTAL

Operator 1*, correct answers 50% 100% 60% 70% 100% 86% 70%

Operator 2*, correct answers 50% 57% 75% 56% 50% 100% 60&

Operator 3*, correct answers 36% 60% 60% 44% 33% 25% 43%

Operator 4, correct answers 14% 50% 0% 60% 67% 67% 40%

Operator 5, correct answers 43% 0% 0% 20% 33% 83% 35%

AVERAGE 39% 53% 39% 50% 57% 72% 50%

High risk Average risk Low Risk

0–60% correct

answers

60%–80% correct

answers

80–100% correct

answers

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SEEMP in brief

At the start of this year, the International

Maritime Organisation (IMO) made it

mandatory for all ships over 400 GT to have

a documented Ship Energy Efficiency

Management Plan (SEEMP). And although

there is as yet no requirement for ship

owners to actually implement their

documented SEEMP, it is likely that it will

be mandatory at some point in the future.

According to the IMO requirements,

energy efficiency should be measured

quantitatively and an Energy Efficiency

Operational Indicator (EEOI) can be

used, although it is not mandatory.

Each plan is ship specific in terms of

planning, implementation, monitoring,

self-evaluation and improvement. Goal

setting is voluntary and achievements

are not required to be published.

However, the goals should be

measurable and easy to understand.

There are two principle ways of

improving a vessel’s energy efficiency:

a) by continuous improvement through

operational and/or maintenance measures

and b) by incremental improvements

through retrofitting solutions. SEEMP

mainly focuses on the operational side,

however, does not exclude the planning

and implementation of retrofits.

Improving operational energy efficiency

can be achieved in several ways, including

optimising the trim, rudder and stabiliser.

Effective implementation of SEEMP and integration with maintenance managementAUTHORS: Andreas Wiesmann , General Manager, Innovation & Business Development , 2-stroke

Tage Klockars , Director, Suppor t and development , Marine Agreements

There has already been tremendous interest in Wärtsilä’s recently introduced solutions and services supporting ship owners in the implementation of an effective Ship Energy Efficiency Management Plan (SEEMP). The next steps will focus on developing the package further and integrating it into the service agreements offered.

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Fig. 1 – Ballast water management and reporting.

By continuously calculating a “combinator

curve”, the engine revolutions and propeller

pitch (in case of a controllable pitch

propeller) can be adjusted to meet changing

load conditions. Vessel speed and voyage

planning also play a very important part.

A Wärtsilä survey showed that some 40

per cent of ship operators were not aware

of the fuel savings that an SEEMP could

create. Wärtsilä has identified savings

from operational improvements of up

to 9 per cent, depending on vessel type,

machinery configuration and condition

and the current operations. Its SEEMP

package is a data gathering, optimisation

advisory and management tool that helps

ship owners achieve these potential savings

and at the same time manage the ongoing

environmental performance of their vessels.

In response to the new requirement

coming in force earlier this year and

to the findings of its investigations,

Wärtsilä set out its capabilities in helping

shippers to both meet and implement

the requirements. It introduced an

SEEMP package aimed at improving

fuel efficiency, reducing environmental

impact, and optimising ship handling. The

offering will also be integrated into the

company’s marine service agreements.

Combining SEEMP implementation, efficiency optimization and maintenance strategies

The mentioned tool is designed to obtain

data from ships and feed it into Wärtsilä’s

Optimiser platform, where it can be

analysed. The company has developed

the system for the last two years, which

included ways of communicating with

ships and retrieving data in order to

enable data analysis for various needs,

particularly for two main directions:

continuous performance and efficiency

optimization on one side and continuous

lifecycle maintenance cost optimization

through implementation of condition based

maintenance (CBM) on the other side.

The aim of combining efficiency

measurements with condition monitoring

and the maintenance systems is an

optimized overall asset management.

This integrated approach makes sense in

many ways. For example, monitoring fuel

consumption and making adjustments not

only allows savings in fuel costs, but also

provides an indicator of things such as

engine health, propeller or hull efficiency.

Such indications in turn help to predict

when and what type of maintenance

will be needed.

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Fig. 2 – Weather routing application on dashboard.

When monitoring efficiency, it can be

observed, if fuel consumption increases.

It then obviously makes economic sense

to do maintenance on items such as for

instance turbochargers or fuel injection

equipment, in order to reduce the fuel

consumption back to normal. This can

be a much cheaper option. Using even

two per cent more fuel on a ship can

equate to hundreds of thousand dollars

a year in additional fuel costs, which is

far more than the cost of maintenance.

The integration also makes practical

sense. A big share of the data acquired

for making efficiency improvements

is the same data that is used for the

evaluation of equipment condition.

Therefore, it simultaneously supports

the implementation of CBM. It is worth

mentioning that this synergy is achieved

without significant increase in costs.

With the help of this integrated tool and

the later described support services, ship

owners and operators will have the choice of

aligning vessel operation and maintenance

towards their business-specific strategies

and key performance targets. If energy

efficiency is the overriding target, it supports

an “energy efficiency centred” maintenance

and operation management; if vessel

availability and operational reliability are

the number one focus, the ship manager will

use it for a “reliability centred” maintenance

and operation management; and if OPEX

reduction for the owner/manager is key

target, it will support implementation

of a “condition-based, cost centred”

maintenance and operation strategy.

Broad scope

One advantage of the system is that it does

not require the ship’s crew to take any

measurements, something that has always

proved challenging due to the administrative

burden it places on a ship’s staff.

The Optimiser platform interfaces with

the ship’s automation system. It includes an

on-board advisory system where operators

can view indicators to see how a particular

piece of equipment or system is performing.

The platform can be accessed by anyone

who can enhance the system’s value. This

means it is open to almost anyone in

Wärtsilä – technical services for engines,

propulsion, electrical and automation,

environmental, maintenance planners,

coordinators, and so on – as well as outside

companies, for example OEM suppliers of

other critical equipment that was not supplied

by Wärtsilä.

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Fig. 3 – Operational performance focus Widget selection.

Wärtsilä can use it to produce reports

and offer advisory services for things such

as propulsion and engine monitoring,

trim and ballast, advanced dynamic

planning, EEOI and other efficiency

indicators, as well as energy audits.

The system allows Wärtsilä to collect

a lot of data on its own equipment

products. And because Wärtsilä has

designed the equipment, such as the

engine or propulsion system, it is easy

to see from the ship’s operation whether

the equipment performance can be

improved by operational or maintenance

measures alone or an upgrade would

eventually provide larger savings.

Having all the efficiency curves and other

data makes it easy to identify the corrections

needed, and to know what the equipment

should be capable of. Wärtsilä can then

either offer advice or update the equipment

because the company has designed it.

Wide attraction

The package will be attractive for ship

owners, managers and operators alike.

For example, both ship owners and ship

managers are interested in optimising

maintenance costs, but ship owners also

want to offer attractive, energy-efficient

vessels to charterers. Charters on the other

hand pay for the fuel, thus have a high

interest in lowest fuel costs, but also in

operational reliability to best serve their

customers with reliable shipping of cargo.

While the SEEMP requirement is quite

general and does not address the specific

business needs of the different stakeholders

in the shipping value chain, the solutions

and support services of Wärtsilä for effective

SEEMP implementation are flexible and

can be tailored to the specific targets of a

shipping company. This makes the offering

attractive for Wärtsilä’s customers.

Although only recently announced,

there has already been a great deal of

interest in Wärtsilä’s SEEMP offering. In

fact, numerous quotations were requested

even before the package was released.

Integrating SEEMP into Services Agreements

The combination of SEEMP with service

agreements is something new that Wärtsilä

is bringing to the table, essentially offering

its customers more than is possible with

the company’s existing CBM contracts.

Guaranteeing items such as fuel

performance, fuel consumption, engine

efficiency, etc. within service agreements

is an area that has long been discussed but

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one that has so far, not been effectively

implemented.

In order to be in a position to guarantee

performance and fuel efficiency, an

integrated way of acquiring accurate

efficiency data of individual equipment,

but also of total vessel efficiency and a

wide range of ambient conditions and

surrounding parameters, all synchronized,

is required. This means large data traffic

and requires sufficient ship-shore data

transmission capacity. All this has only

lately become available in its entirety.

Wärtsilä’s Optimiser platform makes

such comprehensive data acquisition

and processing possible and as a result of

analysing this data, the company is able

to provide value-adding services and

the necessary guarantees on the equipment.

Everything can now be tied together, and

valuable advice for individual equipment or

the entire ship can be given in reports or

online to the operator’s office or

the vessel’s officers.

By integrating this data evaluation with

Services Agreements, Wärtsilä can

guarantee fuel consumption within a

relatively small range. This is something

that is only possible for a company that

is in the position to manage such service

agreement, perform the online performance

measuring and evaluation, execute CBM

and make the necessary adjustments.

Flexible agreements

With the new package, ship owners can

take advantage of a modular service

agreement offering that can be tailored

to their specific needs and key targets.

The benefit of a modular approach is

that the scope can be customized according

to mutually agreed levels of outsourcing,

levels of responsibility and risk sharing,

operational relevance of equipment for

the customer or their budget. The owner

can select just those system applications,

agreement deliverables, services or

guarantees that they specifically need.

This flexibility is also needed on the

Optimiser platform side, because the initial

investment costs for sensors and enabling

certain applications on the platform can

be quite different. Not every ship owner

or operator requires the full scope that the

platform would be capable to provide, nor

are they prepared to take high costs for a

one-fits-all platform, if only a limited scope

of applications and services are required.

The flexibility in the agreements also

enables dynamic maintenance planning and

services, where maintenance is based on

the condition of the equipment. This moves

maintenance away from fixed schedules,

which either don’t fit into the vessel’s overall

utilization schedule or which might request

maintenance to be done too early, although

the equipment’s condition would allow

trouble-free and efficient operation for

longer time.

In addition to issuing reports on the

performance and condition of the equipment,

it is also possible to provide online technical

support as data obtained remotely can be

used to advise the crew onboard.

Choice of contracts

The contract defining the individual reports

and services for each ship is handled by

a competent and dedicated manager who

is responsible for delivering what has been

agreed with the customer. This manager

is supported by a centralized maintenance

planning team and by operation and

technical support experts.

The agreements typically run for three

to ten years, depending on the ship owner’s

requirements and plans for the vessels.

Since it takes six months to properly

establish the entire system and baselines,

these are long term solutions.

There are different levels of contract

depending on the scope. Most marine

agreements are so-called ‘Technical

Management Agreements’, where a small

fixed monthly fee covers the management

and continuous core services such as data

evaluation, technical advisory and

maintenance planning. Spare parts and

onboard labour are covered by separate

supply arrangements and charged when

delivered. Such agreements have been quite

popular because the customer gets sufficient

information and advice to make the right

decisions for operation and maintenance.

The next level is a Maintenance Agreement

where the ship owner outsources the agreed

scope of maintenance to Wärtsilä from

maintenance planning and management

to delivery of all required spare parts,

maintenance crews, workshop services,

etc. These agreements have either a fixed

fee plus a variable fee calculated according

to the running hours of the equipment,

or the total cost for the specified scope

of covered equipment, deliverables and

services for the entire agreement period can

be evenly distributed as a fixed flat fee.

Please check Wärtsilä Services

Solution Studio, Condition Monitoring:

www.wartsila.com/en/ solution-studio

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Wärtsilä works with the customer to

assess which agreement is the most suitable.

The aim is to set a budget with the customer

so as to determine whether, for example, a

five or 10-year budget is the most applicable.

This kind of cooperation, combined

with the potential that the new package

offers, will not only ensure that ship

owners are able to meet the IMO’s SEEMP

requirements, but will also allow them to

operate and maintain their vessels in the

most cost-effective and environmentally

sustainable manner possible.

Implementation

The new package is available for ship

owners with existing marine agreements,

as well as for those looking to set up

new agreements. For those with existing

agreements, implementing the system

simply involves swapping the existing

computer used for CBM for one running the

Optimiser platform. All agreements offered

after July this year will have computers with

the new Optimiser platform as standard.

The first step is to undertake a baseline

study for the installation, where data is

gathered for 3-6 months to obtain an

Energy Efficiency Operating Index (EEOI).

This establishes a baseline for planning

improvements. Once the improvements

are in place, onshore staff can carry out

continuous monitoring using the Optimiser.

Wärtsilä staff can then offer advice, or

executes the necessary upgrades according

to the results of the continuous monitoring.

There is an ongoing evaluation process where

quarterly reports are produced and annual

reviews carried out so that new goals can be

set. The basis of the SEEMP is that of a rolling

system, involving monitoring, evaluating,

and then finding ways for improvements.

Taking SEEMP to additional efficiency improvements

The so far highlighted solutions focused on

the continuous improvements through

operational measures and smart maintenance

management.

Changes in the vessel speed and operating

profile and the availability of improved or

innovative technologies can offer additional

opportunities to incrementally improve a

vessel’s efficiency by retrofitting solutions.

Particularly the merchant fleet, and as a

forerunner the container shipping industry,

have substantially reduced the average

speeds. Although reduction of speed already

achieves by itself a huge saving on the

annual fuel bill, the vessels’ efficiency is not

optimized in these lower speed ranges.

Two thirds of the world’s container,

tanker and bulker fleet are younger than

10 years. Majority of these ships were

designed to operate at much higher

speeds than what is today the “new

operational reality”. Compared to optimized

vessel designs matching the new speed

requirements and having installed latest

technology equipment, so called “eco”

vessels, there is an efficiency gap of 10-25

per cent on the existing fleet. Wärtsilä

has identified measures and solution

packages that could achieve 10-20 per cent

of additional fuel savings by retrofitting.

One of the focus areas has, therefore, been

to put together a programme of “more

radical” fuel cost reduction upgrades.

There are a lot of specific solutions

where smaller percentages can be gained,

but by combining several solutions

and tailoring such packages to the

specific vessel and its new operational

requirements, far more can be gained.

Ship owners often approach Wärtsilä

for an individual solution, for example

an upgrade solution on the main engine,

or separately for a proposal of a modified

propeller design. Wärtsilä’s combined

capabilities from engines and propulsion

solutions to system integration and

automation up to its ship design offering

provide a unique opportunity for ship

owners to utilize the company as a

total, integrated solutions partner for

vessel efficiency upgrading projects.

The identification of the savings potential

and initiation of upgrading projects could

be an offspring from the measurements

and evaluations through the Optimisers

platform or from the close collaboration

between ship owner and Wärtsilä under a

services agreement. However, it can also

be initiated separately by initial onboard

audits or desk studies and elaborated in

a joint project that evaluates different

options, selects the optimal package

scope depending on saving targets, actual

situation and available budget, and finally

plans, delivers and implements the selected

scope. Wärtsilä’s professionals from various

functions and competence areas are

brought together into the different phases

of such end-to-end efficiency upgrading

projects, in order to ensure successful

implementation and achievement of the

agreed targets and expected savings.

CONCLUSION

The new offering for SEEMP implementation,

for integrated performance and condition

monitoring and advisory services through

the Optimiser platform, the modular and

flexible scope of agreements that integrate

the advantages of the tools and SEEMP

implementation, and the wide capabilities

to take on end-to-end upgrading project

responsibilities for achieving substantial fuel

savings, makes Wärtsilä a very important

sparring and implementation partner for

ship owners and operators in achieving fuel

cost reductions and efficiency gains.

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WÄRTSILÄ TECHNICAL JOURNAL 02.2013

61in detail

Just about 100 years ago, the wastewater

treatment process was invented when our

aqua environment began to deteriorate.

The science, engineering, and regulations

relating to water and wastewater have

evolved slowly but steadily ever since. As

a result, the efforts of municipalities and

land-based industries have led to significant

improvements in water quality, and the

way that it is treated. The marine industry,

meanwhile, continues to explore means

of developing its methods in this area.

So-called ‘grey’ water is the effluent from

living areas, laundries, and galley areas,

while ‘black’ water is the output from toilets.

On land, these waters are collected from our

households and professionally treated in

wastewater treatment works (WWTW). On

a ship, black and grey waters are collected

separately, but often become mingled

during transport, storage and discharge.

Annex IV of IMO's MARPOL Convention,

adopted 40 years ago, set ambitious

standards for ship discharges in MEPC.2(VI).

But there are two shortfalls: 1) grey water

is not regulated, and 2) discharges from

ships have not been monitored.

Grey water pollutes.

On land, nobody expects the grey water

from a restaurant or laundry to be dumped

into a natural water body without treatment.

There are numerous wastewater engineering

text books that explain the scientific basis

Wastewater treatment in the marine industry AUTHOR: Wei Chen , Head of R&D, Wär tsi lä Water Systems Ltd

Over the past 100 years or so, wastewater treatment on land has been successfully developed. However, the marine industry is still working to develop its means of treating wastewater, and Wärtsilä is actively developing the needed technologies for ships.

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for such treatment. Grey water on ships

is just as polluted (Table 1), and Faecal

Coliform concentrations in grey water

exceed the discharge limits of black water

by 100,000 times. Grey water also accounts

for 80 of a ship’s wastewater organic (or

Biochemical Oxygen Demand – BOD5)

loading. Annex IV only covered 20 of

a ship’s wastewater pollution impact.

The technologies are available.

After The U.S. state of Alaska established

that cruise ship discharges were of poor

quality, federal legislation expanding

Alaska’s authority over cruise ship

discharges was swiftly passed in 2000.

Strict rules regarding both grey and black

water were then introduced. This led to

the development of a new generation

of Advanced Wastewater Treatment

(AWT) systems, which have subsequently

exceeded all expectations (Figure 1). This

success has led the USEPA to extend the

stringent grey water requirements to

other US waters (Vessel General Permit,

2008). Most importantly, Alaska has

established the Commercial Passenger

Vessel Environmental Compliance

Program (CPVECP), the one and only

independent monitoring and sampling

regime in the entire global marine

industry. AWTs that were fit for purpose

survived, and those not were weeded out.

Despite being endorsed by the USEPA

as being the Best Available Technology,

and while out-performing WWTWs ashore,

AWT has no clear definition, nor can it

be Type Approved as such. It must do

what it says on the label, year on year,

under the watchful eyes of CPVECP. It

was not easy, but Alaska has provided a

show case of stakeholder commitment

to protect its pristine marine waters.

Wärtsilä has worked with cruise operators

to develop its Membrane Bio Reactors(MBR)

system. MBR works by segregating – or

‘splitting’ – the treatment of black and grey

water on the basis that the latter is less

contaminated and should be treated

separately. The solution has proven to be

extremely successful in meeting all

the Alaska criteria.

The marine industry needs universal regulations.

In addition to Alaska’s clean-up efforts, the

Great Lakes, US waters (EPA Vessel General

Permit, 2013), and inland waterways in

Europe (2012/49/EU) have also regulated

Table 1 – Characteristics of grey waters on ships (USEPA report, 2008)

Faecal Coliform (MPN/100 ml) BOD5 (mg/l)

MEPC.2 (VI) black water discharge limits 200 50

Acoommodation Grey Water 37,000,000 260

Galley Grey Water 29,000,000 1,490

Domestic Wastewater 1,000,000 to 100,000,000 110 to 400

Coliform – Geometric Mean (count/100 ml)

10,000,000

1,000,000

100,000

10,000

100

100

10

1

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Average BODS (mg/l 02)

600

500

400

300

200

100

0

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Fig. 1 – Average performance of wastewater treatment plants on ships (Blue bars – cruise ships with AWTS in Alaska; red bar – 32-ship survey in a European port).

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WÄRTSILÄ TECHNICAL JOURNAL 02.2013

63in detail

grey water treatment in various shapes

and forms (Table 2), each affecting certain

shipping sectors. There are already four sets

of different type approval specifications, and

more than five different compliant regimes.

This assortment of legislation is a source

of confusion for both vendors and ship

operators. The challenge is further

emphasised by the fact that some ports and

coastal waters ban all discharges, regardless

of the existence or type of AWTS onboard.

Ships often have to hold wastewater in

double bottom tanks, for discharge outside

the restricted waters, at the expense

of extra fuel costs and emissions.

Classification Societies also promote

grey water treatment by offering greener

Class Notations. Almost all type approved

sewage treatment plants claim the capability

to treat grey water, while more and more

ship owners and yards are signing up to

these initiatives. For example, the cruise

industry some years ago voluntarily stopped

discharges of untreated grey water into the

Baltic Sea. The industry saw what’s coming,

and is ready to meet new legislation.

However, the variations in requirements

in different parts of the world can create

confusion regarding equipment selection,

system design, and operations. For instance,

grey water is sometimes ‘treated’ only during

the very last stage of a type approved sewage

treatment system, which results in non-

compliant performance.

At the international level, the lack of grey

water regulations has started to affect other

IMO policies as well. One example of this

is that the positive efforts to accommodate

ballast water tanks for holding grey water

under certain operational conditions, has

been stalled. Attempts to address grey water

pollution along the Northern Sea Route

under the Polar Code have also faltered.

While the needs to control grey water in

the marine industry are just as great as they

are on land, Annex IV unfortunately provides

no provisions for monitoring discharges

from ships. The discharge limits are only

applicable to a type approval test at a testing

facility.

Compared to the detailed specifications

of the CPVECP, i.e. the overboard discharge

sampling point, logbooks, flow measurements,

sampling frequencies and procedures, etc.,

Annex IV lacks such monitoring requirements

totally.

This weakness has been exploited. Type

approved sewage treatment plants that

‘utilise the rich oxygen in the sea water to

Fig. 2 – MBR installations on a new built cruise ship.

Fig. 3 – MBR construction on a new built cruise ship in the ship yard.

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remove pollutants’ by drawing sea water

through them, at as much as more than 40

times the sewage flow, are installed on

hundreds of ships. Dilution is, alas, a poor

means of controlling pollution, and in 2016

constraints will be imposed via MEPC.227(64),

albeit with a lack of enforcement measures.

Even then, the practice will continue to

entertain the notion of marine water

protection without enforcement.

In 2012, one member state surveyed the

performance of sewage treatment plants

onboard 32 ships. It was found that ‘the vast

majority of the equipment did not meet

the existing sewage treatment standards

due to improper use of detergent, a lack

of maintenance, or not following the

operational instructions’ (MEPC 64/23).

Actually, none of the ships satisfied even

the most relaxed MEPC.2(VI) rules adopted

in 1973, and the average results missed the

targets by a long way (Figure 1). This

despite the fact that during the past five

years MEPC.2(VI) has been tightened twice

(MEPC.159(55) and MEPC.227(64)).

The fact that grey water is often

intermingled with black water in the tanks

and pumps makes it difficult to create

effective monitoring. Alaska's CPVECP, on

the other hand, deals with this problem

very well.

The industry welcomes science based regulations

It is not always the case that laws become

more effective when made increasingly

stringent. An Alaskan State Law passed

in 2006, for example, demanded that

cruise ships meet the state’s water quality

standards at the point of discharge. This

made drinking water appear to be toxic

to the ocean. It took an independent

Science Advisory Panel to conclude that

this law should be rolled back since such a

requirement is not relevant, and is anyway

not applied to shore-based discharges.

The process lasted three years, but at

least it reached a science-based closure.

Wärtsilä has achieved world leading status

as a technology provider of future-proofing

black and grey water management systems

for ships. The situation is not, therefore,

that effective treatment is not yet available.

It is the will to ensure that this treatment is

carried out that appears to be lacking, and

the fact that 32 ships exceeded the IMO's

discharge limits by a factor of 1000 gives

cause for concern. Regarding the removal

of nutrients from ship sewage discharges,

the Baltic Sea has been designated by the

International Maritime Organisation (IMO)

as being a Particularly Sensitive Sea Area

under its MARPOL Annex IV. However,

passenger ships have contributed just 0.035

of the Baltic Sea’s nitrogen load,and even this

minute contribution hasbeen diverted to

port reception facilities, thanks to the cruise

industry’s proactive stance since 2009.

Nevertheless, this effort has failed to win

the hearts and minds of the Baltic rim

countries. In 2012, a proposal was adopted

to make the discharge levels of nutrients

from passenger ships more stringent than

equivalent standards ashore. This was branded

by industry groups as being ‘a sad day’

but there were, nevertheless, a number of

member states wanting to implement these

standards also for the Mediterranean, and

other sea areas. By the way, the Mediterranean

Sea is defined as nutrient-poor water by

the European Environmental Agency.

Had there been an independent Science

Advisory Panel or a monitoring regime,

this confusion could have been avoided.

Fortunately, more regulators, at least those

ashore, have recognised that environmental

initiatives can have an adverse impact by

consuming natural resources, and incurring

emissions that need to be justified by the

tangible benefits they may bring. Having

science based rules is no longer a question

of the more stringent the better. Since it takes

more than aspirations to find a balance, the

rules can and should be science based,

practicable, and sustainable.

When it comes to black and grey water

pollution from ships, maybe it is time for

the marine community to do something

simple, and to do it right, such as regulating

both black and grey water - and having such

regulations enforced.

Fig. 4 – MBR retrofitted in-situ while the ship was trading.

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Table 2 – Key regulations on black and grey water discharges from the ships.

Standards

IMO MARPL Annex IV EU USA Alaska

MEPC. 2 (VI)

MEPC. 159 (55)

MEPC. 227 (64)

2012 (Inland Water ways)

USC G33CFR 159

Type II MSD

EPAVessel

General Permit

USC G33CFR159Subpart E

GP No. 2009DB0026

Continuous(Underway)

Water Quality

Standards (AWQS)

Enter into force 2003 2010 2016 2013 1975 2013 2000 2009–15 2006–13

Applicable streams

Black Black Black Black & GreyBlack

(Grey in Great Lakes)

Grey Black & Grey

Type Approval IMO IMO IMO EU USCG N/A N/A

Applicable ships AII AII AII AII AII100–499

>500Passenger

> 500Passenger

> 250

F. Coliform (/100 ml)

200 100 100 200 20 20 14 14

TSS (mg/l) 100 35 35Qi/Qe 150 30 30 150 150

BOD (mg/l) 50 25 25Qi/Qe 25 30 30 30 30

COD (mg/l) 125 125Qi/Qe 125

TOC (mg/l) 45

pH 6~8.5 6~8.5 6.5~9 6.5~9 6.5~8.5 6.5~8.5

Chlorine (mg/l) 0.5 0.5 0.01 0.01 0.01 0.01

TN (mgN/l), Spe-cial Area, passenger > 12

20 Qi/Qe or 70%

TP (mgP/l), Special Area, passenger > 12

1 Qi/Qe or 80%

Ammonia (mgN/l) 28 (130) 1

Dis. Copper ( g/l) 87 (130) 3.1

Dis. Nickel ( g/l) 43 (43) 8.2

Dis. Zinc ( g/l) 360 (360) 81

Wärtsilä Water Systems Ltd is an innovative, market

leading company providing conventional and advanced wastewater

treatment systems in response to environmental needs and

marine legislations. During the past 40 years, the company

has provided over 8000 installations across all ship sectors.

Building on the success of its advanced Membrane BioReactor

technology, the company has developed a unique wastewater

management system that allows future proofing compliant

operation at low operational costs and with minimum skill

requirements. This system has been successfully implemented

on multiple cruise ships, many of them sailing in Alaska waters.

Page 66: In-Detail-02-2013

IMPROVING LIFECYCLE EFFICIENCY BY LOOKING AT THE BIG PICTURE

In the current market situation, companies are focusing on improving efficiency and reducing

costs. Wärtsilä improves the lifecycle of ship and power plant installations by looking into three

areas. Preventing the unexpected helps guarantee performance and manage risk. Environmental

efficiency optimises environmental performance. And performance optimisation helps improve

business efficiency and reduce operational expenses. Please read more about improving lifecycle

efficiency at wartsila.com/services.

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in detailWÄRTSILÄ TECHNICAL JOURNAL | WWW.WARTSILA.COM

The information in this magazine contains, or may be deemed to contain “forward-looking statements”. These statements might relate to future events or our future financial performance, including, but not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known and unknown risks, uncertainties and other factors that may cause Wärtsilä Corporation’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this publication are based only on information presently available in relation to the articles contained in this magazine and may not be current any longer and Wärtsilä Corporation assumes no obligation to update any forward-looking statements. Nothing in this publication constitutes investment advice and this publication shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity.


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