M th l Methanol, an Alternative Fuel for Shipping

Bengt Ramne ScandiNAOS ABMARKIS 2011-11-30

N t l G ill b i t t• Natural Gas will be a very important energysource for marine propulsion

H

HH

HC

H

• Methanol will be an efficient, universal, future-

HH

Oproof, energy carrier

C H

H H

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

EffShiEffShipEffi i t Shi i ith L E i iEfficient Shipping with Low Emissions

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

EffShiEffShip –Efficient Shipping with low emissions• Work packagesp g

– WP1 Project Management

– WP2 Present and Future Maritime Fuels

– WP3 Exhaust Gas Cleaning

– WP4 Energy Efficiency and Heat Recovery

WP5 Energy Transformers– WP5 Energy Transformers

– WP6 System Impact when Using Wind, Wave and Solar Energy

– WP7 Logistic system analysis

– WP8 Demonstration of Findings

– WP9 Final Reporting, Dissemination and Future Projects F di• Funding

– Vinnova 60%, Partners 40%• Duration

– Dec 2009 – March 2013

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

U i l tiUpcoming regulations

12

14

16

IMO NOx Technical code

NOx Tier II ‐ 2011 (Global)

NOx Tier III ‐ 2016 (NOx emission control areas)

gNOx/kWh

6

8

10

0

2

4

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000

rpmMARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

EffShip – WP2 P d F M i i F lPresent and Future Maritime Fuels

• HFO • Biofuel

• LSHFO

• ULSHFO

• DME

• Methanol

• MDO

• MGO

• Synthetic

dieselMGO

• LNGMARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

Alternative Marine Fuel ‐ Feedstock and products

Crude oil Natural gas

Bio GasAnaerobic digestion Coal Biomass

Municipal waste Solar Hydro Wind Nuclear

RefiningCooling Reformation Gasification Electrolysis of water

163CCH4 + H2O → CO + 3 H C + ½O → CO H O→ H + ½O‐163C CO + 3 H2 C + ½O2 → CO H2O → H2 + ½O2

C + H2O → CO + H2CO + H2O → CO2 + H2 CO + H2O → CO2 + H2 Carbon capture

CO2 + C → 2CO CO2

Residuals Distillates LNG SyngasResiduals Distillates LNG Syngas HFO MGO Hydrogen + Carbon monoxide (H2 + CO)

Methanol DME Gas to liquid ‐ GTLDirect synthesis, using a dual catalyst system Fischer Tropsch

CO + 2H2 → CH3OH Fixed bed reactor process (Haldor Topsö) CrackingSlurry bed reactor process (JFE, Air Products and 

CO2 + 3H2 → CH3OH +H2Oy p (

Chemicals)  ParaffinCO2 + H2 → CO +H2O Naptha

DieselDME

Dehydration  of methanol2CH3OH → CH3OCH3 + H2O

DME to liquidMobile process

HFO ICE MGO ICE LNG ICE/FC Methanol Synthetic Na Hydrogen asHFO ICE Fuel

MGO ICE Fuel

LNG ICE/FC Fuel

Methanol ICE/FC Fuel

Synthetic petrol DME ICE Fuel Paraffin Na‐

ptha Diesel Hydrogen as ICE/FC Fuel

Diesel fuel Diesel fuel Otto fuel Otto fuel Otto fuel Diesel fuel

Requires spark ignition or 

Requires spark ignition ,dual g

dual fuelg ,fuel or methanol –diesel engine ScandiNAOS/BR 2011‐03‐23

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

Natural gas well head price

0.010 €/kWh

Methanol cost ex works

0.025 €/kWh

Methanol along side Göteborg

0.05 €/kWh

Methanol produced from forest products

0.072 €/kWh

1244 $/ton MGO eqv.

183 $/ton Crudeeqv.

432 $/ton MGO eqv. 863 $/ton MGO eqv.

44 q

Natural gas well head price

0.010 €/kWh

183 $/ton Crudeeqv.

LNG cost ex works

0.02 €/kWh

345 $/ton MGO eqv.

LNG along side Göteborg

0.046 €/kWh

794 $/ton MGO eqv.

LNG FOB Zeebrugge

0.03 €/kWh

518 $/ton MGO eqv.

Crude oil well head price

115 $/bbl

843 $/ton

Crude landed (WTI/Brent approx)

119 $/bbl

0 051 €/kWh

MGO port price

0.062 €/kWh

1070 $/ton0.051 €/kWh

872 $/ton

HFO port price

0 041 €/kWh0.041 €/kWh

698 $/ton

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

North Europe SECA(Baltic Sea, North Sea and

)English Channel)

Estimated Marine Fuel Market 2015

Without SECA rules With SECA rules

HFO 18 000 000 8 000 000 Assuming 40% of the ships will fit a scrubber

MDO/MGO 2 000 000 6 000 000Assuming 30% of the ships will

change to 0.1% MGO

3 %Alternative fuel(LNG, Methanol) 6 000 000

Assuming 30% of the ships will change to a clean fuel that is

cheaper than MGO

Metric Tons fuel oil equivalents

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

North Europe SECA(Baltic Sea, North Sea and English Channel)

Estimated Marine Fuel Market 2015

With SECA rules Consequence

HFO 8 000 000 Several thousand vessels to install scrubber

Scrubber installation cost:Several billion EURO

MDO/MGO 6 000 000 Minimum 50% cost increase

Alternative fuel (LNG, Methanol) 6 000 000 New fuel market annual 

turnover 4 billion EURO

Metric Tons fuel oil equivalents

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETHSPIRETHAlcohol (Spirit) and Ether as Marine fuel

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH

Th • The concept– Bunker methanol– Upgrade methanol to DME onboard– Use the DME in the existing diesel engines

(only minor modifications required)

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

S S lStena Scanrail

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH - The pilot project

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH

Th b fit• The benefits– Methanol can be made available in principle

everywhereeverywhere– The Methanol market works much better

than the LNG market– Methanol can be stored in hull tanks– Methanol energy cost lower than for MGO– Methanol-DME operation will fulfil tier 3

NOx requirements without after treatmentTh t f i d/ d ti t – The cost for conversion and/or adaption to methanol is a fraction of the comparable cost for LNG

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

Fuel comparison(Based on conversion with 5 years pay-back and 6% interest)(Based on conversion with 5 years pay-back and 6% interest)

0.16 +70%

0.12

0.14

+28%

+43%

+25%

0.1

nica

l po

wer

LNG conversion

LNG

Methanol conversion

Methanol

0.06

0.08

€/kW

h ‐m

echa

n MGO

Maintenance

Sludge

FW

0.04

Electricity

NAOH 50%

Scrubber equipment  cost per kWh

HFO

0

0.02

HFO ScrubberClose loop

MGO Methanol LNGClose loop

Fuel alternatives

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

EffShip & SPIRETHp

There are a lot of opportunities in methanol!There are a lot of opportunities in methanol!

MARKIS – ScandiNAOS/Bengt Ramne 2011-11-30

Thank youThank you