19/11/2012
© Alfa Laval 1
Marine Marine ––solvingsolving environmentalenvironmentalneedsneeds and and savingsaving energyenergy
Joakim ThölinJoakim ThölinHead of Segment Marine & Diesel EquipmentHead of Segment Marine & Diesel Equipment
www.alfalaval.com
Marine & Diesel DivisionMarine & Diesel Division
The acquisition of Aalborg Industries resulted in� 15 main product groups� Leader in environmental and energy saving applications
Thermal fluid heating
Cooling and heating
Crankcase gas cleaning
Separation
Bilge water treatment
Tank cleaning
Steam generation
Waste heat recovery
Exhaust gas cleaning
Inert gas systems
Filtration
Ballast water treatment
Fuel conditioning
Desalination
Cooling and heating
19/11/2012
© Alfa Laval 2
www.alfalaval.com
The leaderThe leader–– in solving environmental needsin solving environmental needs
SOX NOX
Ballast watertreatment
Oily wastetreatment
Emissiontreatment
www.alfalaval.com
The leader The leader –– in saving energy and reducing COin saving energy and reducing CO22
Diesel powerMarine
www.alfalaval.com
Market drivers Market drivers –– Environmental legislationsEnvironmental legislations
More legislation ...and higher demands
19/11/2012
© Alfa Laval 3
www.alfalaval.com
Market Market drivers drivers –– FFuel prices spread and developmentuel prices spread and development
Price graph high sulpher versus low sulpher fuel
Jan Dec Dec
2010 2011
400
500
600
700
800
900
1 000
1 100
US
D/t
on
BW380 BWDI
Price difference
For 2020 estimated
at 400 USD/ton
(Source: POTEN & PARTNERS 2010)
High Sulpher Low Sulpher
(Based on average value 20 ports)
*Note: Nov 9 2012 BW380 = $622 and BWDI = $974 (Bunkerworld)
www.alfalaval.com© Alfa Laval Slide 8
Market driversMarket drivers–– IMO’s energy savings regulations IMO’s energy savings regulations
Source: “Estimated CO2 emissions reduction from introduction of mandatory technical and operational energy efficiency measures for ships” (2011) by Lloyds Register and DNV.
Ship Energy Efficiency
Management PlanSEEMP =
World fleet – Average scenario: A1B and B2-1
3 500
CO
2 (m
illto
nnes)
3 000
2 500
2 000
1 500
1 000
500
0
2010 2015 2020 2025 2030 2035 2040 2045 2050
World fleet CO2 level projections (average of A1B-4 and B2-1 scenarios)
EEDI reduction
SEEMP reduction
New emission level
BAU CO2 emission
transport workEEDI =
www.alfalaval.com
19/11/2012
© Alfa Laval 4
www.alfalaval.com
Treatment systems on-board
� New built vessels from 2009/2012
� Existing vessels after 2014/2016
“USCG has “aligned” rules to IMO, and already in force”
Ballast water treatmentBallast water treatment–– legislationlegislation
www.alfalaval.com
Ballast water treatmentBallast water treatment–– 36 36 countriescountries havehave ratifiedratified and 30 and 30 neededneeded
*Note: convention requires minimum 30 countries representing 35% of the World tonnage
− Albania
− Antigua & Barbuda ~0.7%
− Barbados
− Brazil ~0.5%
− Canada ~0.5%
− Cook Islands
− Croatia ~0.2%
− Denmark
− Egypt ~0.3%
− France ~0.9%
− Iran
− Kenya
− Kiribati
− Lebanon
− Liberia ~9.5%
− Malaysia ~0.9%
− Maldives
− Marshall Islands ~1.3%
− Mexico ~0.2%
− Mongolia
− Montenegro
− Netherlands ~1%
− Nigeria
− Niue
− Norway ~4.2%
− Palau
− Republic of Korea ~1.1%
− Russia ~1.5%
− Saint Kitts & Nevis
− Sierra Leone
− South Africa
− Spain ~0.4%
− Sweden ~0.5%
− Syria
− Trinidad and Tobago
− Tuvalu
www.alfalaval.com
Ballast water treatmentBallast water treatment–– onlyonly 29% of the World 29% of the World fleetfleet has has ratifiedratified
− Panama (22.6%)− Greece (5.3%)− Bahamas (5.0%)− Singapore (4.8%)− Malta (4.4%)− China (3.5%)
35% needed
% of fleet
71%
29%
Ratified Not ratified
65%
29%
6%
*Note: convention requires minimum 30 countries representing 35% of the World tonnage
19/11/2012
© Alfa Laval 5
www.alfalaval.com
Ballast water treatment marketBallast water treatment market–– until now, before ratificationuntil now, before ratification
� 15-20% of contracted vessels were specified with BWT systems in 2011 – 2012
� 10% of systems sold were for retrofit 2011 - 2012
Accumulated number of BWT systems soldall suppliers
0
200
400
600
800
1000
1200
1400
1600
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
20102009 2011 2012
Q2 Q3
www.alfalaval.com
Ballast water treatment marketBallast water treatment market–– development over time, rough estimatedevelopment over time, rough estimate
“Issues discussed”
� Ratification date and USCG
� Time plan
� Exceptions
Source: Alfa Laval analysis
Yearly No of BWT systems ordered
0
1000
2000
3000
4000
5000
6000
7000
8000
New buildings Retrofit Time line
TodayTotal market
next 10 years: ~ 35 000 ships
www.alfalaval.com
Market potential Market potential –– BWTBWT
� Alfa Laval estimates that 35,000 ships will be affected over a ten-year period. About 15,000 newly built and 20,000 existing.
� Estimated average order value per ship: EUR 200-250,000 over time.
� Alfa Laval has and intends to keep a market leading position.
19/11/2012
© Alfa Laval 6
www.alfalaval.com
Alfa Laval Alfa Laval PureBallastPureBallast–– A market leading positionA market leading position
� First prototype installed 2003
� First system to receive “type approval” in 2008
� Preferred choice by major shipowners
AOT reactor
FilterCIP unit
www.alfalaval.com
www.alfalaval.com
* ECA – Emission Control Area
0.1%
4.5%
3.5%
1.5%
1.0%
0.5%
World
EU in ports
ECA
Review forfuel availability
Su
lph
ur
co
nte
nt
SOSOX X emissions requirementsemissions requirements–– IMO IMO conventionconvention ratifiedratified
Reacheable by using low sulphurfuel or treatmentsystem
19/11/2012
© Alfa Laval 7
www.alfalaval.com
Alfa Laval PureSOAlfa Laval PureSOXX–– technical overviewtechnical overview
Scrubber
Water cleaning system
www.alfalaval.com
Alfa Laval Alfa Laval PureSOPureSOXX
� 21 MW installation in
operation since June 2010.
� 28 MW installation starting up
Q4 2012
� Systems from 1 ~ 80 MW
available to cover all ship
sizes in the market
� Recently commercially
launched and available for all
sizes for both new buildings
and retrofit
11
22
33
66
77 44
8855
www.alfalaval.com
Market potential Market potential –– SOxSOx
� Alfa Laval estimates that 5,000 ships will be affected, i.e. ships sailing >50 percent in the Northern European ECA. In this group, Alfa Laval focuses on bigger, and newer existing vessels as well as newly built ships, representing 1,000-2,000 ships over a five-year period.
� Alfa Laval PureSOx, average order value per ship: EUR 2-3 million.
� Alfa Laval intends to take a market-leading position.
19/11/2012
© Alfa Laval 8
www.alfalaval.com
www.alfalaval.com
NONOX X emissions requirementsemissions requirements–– IMO IMO conventionconvention ratifiedratified. . TierTier III for new III for new buildingsbuildings onlyonly
0
2
4
6
8
10
12
14
16
18
0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2 200
Tier I Year 2011, TierII (Global) Year 2016, Tier III (NOx Emission Control Areas)
NO
Xlim
it, g
/kW
h
Rated engine speed, rpm
2011: 15-22% reduction(Global)
2016: 80% reduction(ECAs)
www.alfalaval.com
Alternatives Alternatives for NOfor NOXX reductionreduction–– IMO’sIMO’s tiertier III III conventionconvention requiresrequires a a technicaltechnical solutionsolution
Selective Catalyst Reduction(SCR)
Exhaust Gas Recirculation (EGR)
Alfa Laval PureNOX
19/11/2012
© Alfa Laval 9
www.alfalaval.com
Dieselengine
NOX reductionExhaust gas recirculation
(EGR)Scrubber
Cleaning
Cleaning
Technology/system Technology/system overviewoverview–– EGR, EGR, oneone of of twotwo technologiestechnologies
SOX reductionExhaust gas cleaning
Fresh or seawater
EGC
Scrubber
Steam (Boiler)
www.alfalaval.com
InstallationsInstallations
MAN’s test engine in Copenhagen (7.5 MW)
On board- Alexander Maersk- APMM 6S80ME-C9-EGR2 (23 MW)
www.alfalaval.com
19/11/2012
© Alfa Laval 10
www.alfalaval.com© Alfa Laval Slide 28
Waste Heat RecoveryWaste Heat Recovery–– saving >10% fuel for large shipssaving >10% fuel for large ships
Radiation0.6%
Exhaust gas25.4%
Scavenge air14.1%
Jacket water6.3%
Lubricating oil4.3%
Radiation0.6%
Exhaust gas12.6%
Scavenge air12.9%
Jacket water6.2%
Lubricating oil4.2%
Condenser8.6%
Electric power5.9%
Shaft power49.0%
Total power54.9%
Diesel engine with waste heat recovery
Shaft power49.3%
Standard diesel engine
Heat balance example for RTA96C diesel engine – ISO conditions, 100% load
www.alfalaval.com© Alfa Laval Slide 29
Waste Heat RecoveryWaste Heat Recovery–– saving >10% fuel for large shipssaving >10% fuel for large ships
Radiation0.6%
Exhaust gas25.4%
Scavenge air14.1%
Jacket water6.3%
Lubricating oil4.3%
Radiation0.6%
Exhaust gas12.6%
Scavenge air12.9%
Jacket water6.2%
Lubricating oil4.2%
Condenser8.6%
Electric power5.9%
Shaft power49.0%
Total power54.9%
Diesel engine with waste heat recovery
Shaft power49.3%
Standard diesel engine
Heat balance example for RTA96C diesel engine – ISO conditions, 100% load
www.alfalaval.com
Waste Heat RecoveryWaste Heat Recovery–– after main enginesafter main engines
Yearly savings, ex
� Fuel oil ~4 000 tonnes*
� CO2 ~12 000 tonnes
� Fuel: MUSD 2.4
*Container vessel with WHR’s producing 3 MW power. Ex. typical investment MUSD 4,2 and annual savings MUSD 2,4
19/11/2012
© Alfa Laval 11
www.alfalaval.com
Yearly savings
� Fuel oil ~100 tonnes
� CO2 ~300 tonnes
� Fuel: KUSD 60
Waste Heat RecoveryWaste Heat Recovery–– after auxiliary engines introduced in 2012after auxiliary engines introduced in 2012
*Container vessel with 3 MW gen sets installed. Ex. typical investment KUSD 100 and annual savings KUSD 60
www.alfalaval.com
Market potential Market potential –– WHRWHR
� WHR for main engines: this is an already existing market. Alfa Laval’s current volume is approximately EUR 30-40 million per year.
� WHR for auxiliary engines: This is a new product. Many oceangoing vessels could benefit from this type of solution. Price level around EUR 70,000.
www.alfalaval.com
19/11/2012
© Alfa Laval 12
www.alfalaval.com
PureBilgePureBilge and and PureDryPureDry–– integrated system for oily waste and fuel recoveryintegrated system for oily waste and fuel recovery
� Recovers up to 2%
fuel
� Certified for 5 ppm
(only HSS system)
www.alfalaval.com
Up to 2% fuel lostUp to 2% fuel lost
Waste oil tankThe sources
Fuel oil 20-30%
Oil polluted water, 70-80%
Suspended solids, ~1%
Service tanks Automatic FO filters
Injector pumps Purifiers
www.alfalaval.com
PureDryPureDry–– waste fuel recoverywaste fuel recovery
2012
1 st Engineer Ulf Nyberg - The first operating PureDry system in the worldM/S Silja Symphony
19/11/2012
© Alfa Laval 13
www.alfalaval.com
The technologyThe technology–– Unique combination of decanter and high speed Unique combination of decanter and high speed separator technology creates unique resultsseparator technology creates unique results
XCavator
Separator insert
Superdrysolids
www.alfalaval.com
Market potential Market potential –– PureDryPureDry
� Alfa Laval expects to sell 100 units in 2013. Over time this product will be attractive to most oceangoing vessels.
� The price level of this product is >EUR100,000.
� Alfa Laval is alone in the market with this product
www.alfalaval.com
19/11/2012
© Alfa Laval 14
www.alfalaval.com
www.alfalaval.com
“Optimizes customer processes”“Optimizes customer processes”
PureDry recovers more than 150 tonsof fuel oil onboard Silja Symphony
PureDry Case Study: Silja Symphony April 2012
In November 2010, the Baltic ferry MS Silja Symphony installed PureDry,
a new high-speed separator from Alfa Laval with the capability to recover re-
usable fuel from waste fuel oil. Symphony´s Chief Engineer Mats Göras relates
that since commissioning, the PureDry unit has revocered more than 150 m3 of
oil, which has been returned to the bunker tanks for re-use. ”With bunker oil at
today´s prices, this has meant a significant reduction in fuel costs for us, ”says
Göras, “we have also cut our costs for landing waste oil.”
www.alfalaval.com
� Aalborg acquisition has strengthened our position
� Leading position in solving environmental needs
and saving energy and CO2
� We are continuously bringing new innovations to the market