The case for LNG and LPG-fuelled tankers12 May 2021 • 11:00-11:45 BST
Tanker Shipping & Trade
Webinar Week
Part of
10-14 May 2021
Supporting organisations
Panellist documentsPage 2:Angus Campbell, Schulte GroupPage 9: Nikos Xydas, WLPGA, World LPG AssociationPage 21: Kjeld Aabo, MAN Energy SolutionsPage 32: Steve Esau, SEA-LNG
The case for LNG and LPG fuelled tankers Angus Campbell
The new reality for shipping
Increasing climate concern will force action.
Global industry, (our customer), has committed to decarbonise rapidly.
Shipping is part of the energy transition, but is unlikely to define zero carbon fuel choice……
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Global energy supply, updated 4th September 2020
Total about 15 billion toe annuallyShipping consumes about 400 million tons annually
+ IEA, World total energy supply by IEA region, 1971-2018, IEA, Paris https://www.iea.org/data-and-statistics/charts/world-total-energy-supply-by-iea-region-1971-2018
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Sector coupling will define destination fuel choice and availability.
This will allow infrastructure costs to be shared across all sectors.
Change will be forced by global governments and market forces. The IMO will have to adapt at pace.
Transition and destination fuels………
Critical decision when ordering an asset with service life spanning decades.
Do you invest in the transition or aim for the zero carbon destination?
Can you use LNG and LPG, (which are both transition fuels), while building a ship that is ready for zero carbon fuel when available?
Yes, but there may be significant design considerations…….
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✓ LPG and LNG fuel cost
✓ LPG and LNG global availability
✓ LPG and LNG global infrastructure
o Impact of carbon price?
➢ Zero carbon design maturity
➢ Zero carbon risk management
➢ Automated engine room and fuel system?
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LPG, LNG green hydrogen or ammonia ready ?
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A quote that has been used over the last decade, but this
variation is appropriate for shipping’s new reality:
“The Stone Age didn’t end because they ran out of
stones-it ended because better technologies were
developed to meet humanity’s changing needs.
Likewise, the age of fossil fuel won’t end because we
run out of oil and coal. Non-renewable energies will be
replaced by renewable sources as new technologies
make them more cost-effective than non-renewable
sources.”*
Market forces will drive change.
* 2000 May/June, The Futurist, Volume 34, Issue 3, Article: The age of eco-electricity, Author: Cynthia G. Wagner, Start Page 68, Quote Page 68, Publisher: World Future Society, Washington. (ProQuest ABI/INFORM Collection)
Thank Youwww.linkedin.com/in/angus-campbell-mni-183bb617
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LPG The Marine Fuel of the Future - Today
Nikos Xydas
World LPG Association
Riviera Maritime
Tanker Shipping & Trade Webinar Week
The Case for LNG and LPG Fuelled Tankers
12th May 2021
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LPG - The Bunker Fuel for the Next Decades
• Already a long way ahead on the Green Pathway
• Compared to 2020 compliant fuels
• 99% les SOx
• 15% less CO2
• 10% less NOx
• 90% less particular matter PM
• Meets IMO 2020
• Not a GHG, greatly supports IMO 2050 GHG strategy
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Only Advantages
Source: Bureau Veritas
Only advantages
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LPG Bunkering - Available Everywhere
Page43LPGBunkering
regioniscomingoffathree-yearperiodduringwhichLPGdemandincreased230,000bbl/dannually,accordingtoESAI
Energy.
Copyright © 2018 Argus Media group
| 29 Stat ist ical Review of Global LPG
TRADE, INFRASTRUCTURE AND SHIPPING
Regional LPG Trade Flows
— Showing select ed annual import / export changes in 2017 for t rade
US
Exports: +28pc
Imports: +7pc
Mexico
Imports: +16pc
Brazil
Imports: +30pc
Argent ina
Exports: -15pc
Europe
Exports: +2pc
Imports: +4pc
Russia
Exports: +3pc
China
Imports: +18pc
Exports: +4pc
Qatar, Saudi Arabia & UAE
Exports: +7pc
India
Imports: +17pc
Thailand
Imports: -66pc
Australia
Exports: +14pc
Niger ia
Exports: +3pc
Algeria
Exports: -3pc
South Korea
Imports: -2pc
Japan
Imports: -2pc
Regional LPG expor t s and impor t s, 2007-17
2007 2017
Impor t s Expor t s Impor t s Expor t s
North America 11,341 6,523 5,704 39,226
Sout h and Cent ral America 5,950 4,403 11,035 2,574
Europe and Eurasia 18,001 18,871 26,870 23,130
Middle East 1,494 27,229 1,352 37,056
Afr ica 3,813 10,454 6,571 10,195
A s ia-Pacifi c 29,382 6,694 60,027 4,263
Tot al 69,981 74,174 111,559 116,444
Regional LPG Movements & Markets
Twinza Oil 10
• Pacific Region mostly supplied via pressure ships out of Brisbane & Sydney
• Market is > 30,000 metric tons per annum Propane and ~ 50,000 metric tons per annum Butane
▪ More than
1000 existing
storage
facilities and
terminals
▪ More than
700 small
carriers for
ship to ship
bunkering
▪ All LPG
terminals can
become
supply pointsSTS operations are possible around the world and can provide LPG impetus
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First 4 LPG Powered VLGCs already sailingBW LPG
Home ! Our Fleet ! Pioneering LPG Propulsion
As the world’s largest owner and operator of VLGCs, BW LPG leverages on our scale and deep expertise in maritime shipping to invest in R&D and
implement pioneering technology onboard that will push our industry towards decarbonization - technology that can be implemented on at least 50
percent of current global VLGC ! eet without the need for dedicated newbuilding orders. This is our commitment to sustainable development, which
we pursue while keeping our focus on safe and reliable operations, so that we can continue to provide industry-leading customer service and
generate better returns for our shareholders.
PIONEERING, PROGRESSIVE PROPULSION
Works begin on BW Gemini and BW Leo, the " rst two of twelve VLGCs committed for retro" tting with pioneering LPG dual-fuel propulsion engines.
CHARTING OUR PROGRESS
Assembling the Team
A team of representatives
from BW LPG, yard, Class and
engine manufacturers meet at
Yiu Lian dockyard in Shenzhen,
China.
See More "
Transporting DeckTanks
Transporting four 900 cbm
deck tanks to Yiu Lian
shipyard, where BW Gemini
and BW Leo will be retro" tted
with pioneering LPG dual-fuel
propulsion engines.
See More "
Installing Deck Tanks
Deck tanks for BW Geminiwere successfully installedover two days in earlySeptember.
See More "
Undocking
A group picture before
undocking VLGC BW Gemini,
safely and on schedule.
See More "
BW Leo arrives
Welcoming BW Leo to Yiulian
Dockyard, the second of 12
VLGCs committed for
retro" tting.
See More "
LPG Dual-Fuel Propulsion Engines - how the technology works, why we retro" t, and why this technology matters.
EXPLAINER VIDEO SERIES
What if we could deliver cleaner
fuels through cleaner means of
propulsion? How does it work?
Video
Retro! tt ing means reduced
emissions, shorter delivery t ime,
and not adding unneeded capacity
Video
LPG propulsion o" ers
environmental, operational and
economic bene! ts
Video
Outlining ESG at BW LPG, explaining the science behind our e#orts, and highlighting our e#orts to aspire towards a Better World.
SHORT VIDEO SERIES
Because what we do impacts lives
and the environment, ESG is at the
heart of how we do business
See Video
We explain common metrics which
indicate a sustainably-managed
shipping company
(Video coming soon)
Read More
We highlight what we are doing to
decarbonize and play our part to
combat climate change
(Video coming soon)
Read More
We highlight key init iat ives we are
doing to support community
resilience and progress
(Video coming soon)
Read More
We highlight the ways we are
upholding responsible and
transparent business practices
(Video coming soon)
Read More
READ MORE
Frequently Asked Questions
We answer all your questions and more, on
LPG dual-fuel propulsion engines.
Sustainability at BW LPG
At the core of our sustainability approach is
the purpose of our Company – where we
work towards a better world.
Our Business
We deliver clean energy and champion
competitive, sustainable solutions to secure
enduring value for our society and
stakeholders.
Press Release
28 February 2020 BW LPG declares
option for additional LPG dual-fuel
engines, bringing investment to twelve
Press Release
10 February 2020 BW LPG declares
option for additional four LPG dual-fuel
engines, bringing our investment to eight
Press Release
30 Aug 2018 BW LPG announces world's
" rst retro" tting of LPG propelled dual-
fuel engines
TOP DOWNLOAD
Q2 2020 Financial
Results Presentation
ABOUT US
OUR FLEET
INVESTORS CENTRE
SUSTAINABILITY
CAREER
CONTACT US
BW LPG © Copyright 2020.
All Rights Reserved.
Privacy statement
Sitemap
Powered by LPG Retrofit vs Newbuild The Benefits Explained
ESG at BW LPG The Science Behind
E for Environment, E for Energy
S for Social, S for Stakeholders
G for Governance G for Good
ABOUT US OUR FLEET INVESTOR CENTRE SUSTAINABILITY CAREER CONTACT US #
• 79 the total of retrofit and newbuild orders, more including options
• 44 new orders already in 2021 totaling 1,06 million DWT
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MAN Projections
▪ In 2021, 60% of all new
LPG carriers would be
LPG powered (100% so
far)
▪ By 2027, all new LPG
carriers would be LPG
powered
▪ By 2028, 30% of
container vessels could
be LPG powered
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
% -
DF
En
gin
es
of
To
tal
Tw
o-S
tro
ke
Co
ntr
ac
tin
g
Vessel Contract Year
% - DF Engine Development of Two-Stroke Shipbuilding
Contracting (#Ships)
Tankers
VLCC's
Bulkers
Container vessels
LNGC
LPGC (LPG as Fuel)
Total
Jan 2018 Source: FMS/Dept EELC
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ABS - The three pathways to the futureThe Three Fuel Pathways of the Future
Light Gas
Bio/Synthetic
Heavy Gas
3 | Hydrogen as Marine Fuel
Zero
carbon
future
LPG to
Ammonia
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Renewable LPG – the alternative bunker fuel for the next decades
▪ Produced through a variety of technologies, primarily HVO at present
▪ Feedstock: A mix of wastes, residues, sustainably sourced vegetable oils
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Renewable LPG/bioLPG - Already on theMarket
A “drop in” fuel replacement, same molecule, no equipment changes
LPG industry targets:
▪ World : 50% at least of 2050 non-chemical demand to be covered by rLPG
▪ Europe : 100% of 2050 non-chemical demand to be covered by rLPG
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The Alternative Bunker Fuel for the Next Decades
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In Summary
▪ LPG, the proven alternative marine fuel for the next decades - a transition fuel forever
▪ A pathway to net zero carbon future
▪ Zero carbon with carbon capture
▪ Zero carbon with potential simple transition to ammonia
▪ Also as renewable – the great cherry on the cake
▪ LPG is propelling a cleaner – energy future
▪ WLPGA – the support for all stakeholders
w w w . w l p g a . o r g
Thank you!
Email:
182, avenue Charles de Gaulle –92200 Neuilly-sur-Seine, France
Tel. : +33 (0)1 78 99 13 30Fax : +33 (0)1 78 99 13 31Email : [email protected]
C O N T A C T
THE WORLD LPGASSOCIATION
NIKOS XYDAS
Strictly confidentialPublic Future fuels for large merchant marine vessels - Webinar
Kjeld Aabo
Director New technologies
Sales and Promotion Two stroke Marine
Member of WG ISO 8217 & Chairman CIMAC Fuels
The case for LNG and LPG-fuelled tankersDate: Wednesday 12 May - Time: 11:00-11:45 BST
Public
MAN B&W dual fuel portfolio
Lower the pressure on your capital cost – webinar ©2020 2
LNG Ethane Methanol LPG
ME-GAME-GI ME-GIE ME-LGIM ME-LGIP
Ammonia
→ 2024
Public 3
Energy storage type
SpecificEnergy MJ/kg
Energy Density
MJ/L
Required Tank Volume
m3. 1
Supply pressure
bar
Estimated PtX
efficiency
Injection pressure
bar
Emission Reduction Compared To HFO Tier II
MGO 42,7 35,9 1000 7-8 950 SOx NOx CO2 PMLiquefied natural gas
(LNG -162 °C) 50.0 22,4 1602 300 0,56 300 90-99% 20-30% 24% 90%
Liquid ethane gas (LEG -88 °C) 47,5 17,1 2099 380 380 90-97% 30-50% 15% 90%
liquefied petroleum gas(LPG -42,4 °C) 46,4 23,5 1527 50 600-700 90-100% 10-15% 13-18% 90%
Methanol 19.9 15,8 2272 10 0,54 500 90-97% 30-50% 5% 90%Ethanol 26 21,2 1693 10 500
Ammonia(liquid -33 °C) 18,6 11,5 3121 70 0,65 600-700 100%
Compliant with regulation >95% >90%
Hydrogen(liquid -253 °C) 120 8.5 4223 0,68
Marine battery market leader, Corvus, battery rack 0,29 0,33 108.787
Tesla model 3 batteryCell 2170*. 2 0,8 2.5 14360
Alternative fuels
• 1: Given a 1000 m3 tank for MGO. Additional space for insulation is not calculated for in above diagram. All pressure values given a high pressure Diesel injection principle.
• 2: Values for Tesla battery doesn’t contain energy/mass obtained for cooling/safety/classification .
Properties
Public
ME-GI and ME-LGI engines for future fuels
Public
Combustion Principle - diesel cycle
From actual footage (colorized)Yellow = pilot oil (0.5 to 5%* @100% load)Blue = fuel gas
Conventional slide fuel valveGas fuel valveHigh pressure safety valveGas distribution channel (yellow)Gas distributor blockGas chain link double-walled pipes
1
23
4 5
6
7
1
2
3
4
5
6
7
15.02.2019Marco Costa - Two-stroke power
*) based on main fuel selection
PublicPublic
Future-proof engine Technology.MAN B&W ME-C engines are future-proof and can be retrofitted to use LNG, LPG, Ethane, Methanol and Ammonia as fuel.Proven track record of engine conversions.
*Pictures courtesy of BW Gas. 15 VLGCs will be retrofitted to LPG propulsion with MAN B&W engines.
In Service
‒ ME-GIE: 1
‒ ME-GI: 3
‒ ME-LGIP: 4
Solutions for retrofitting to alternative fuels- Now adding Ammonia (NH3)
In process and on order
‒ ME-LGIP: 11
Ammonia engine presentation - v2 May 2021 6
Public
Total dual fuel engines including options 374 engines
Total power main engine 8.9 GW
Total dual fuel 2-Stroke in service 158 engines
No. of engines Engine type Mk. Gensets
249
22 G 95 ME-C-GI 10.53 S 90 ME-C-GI 10.5
25 G 90 ME-C-Gl 9.5, 10.517 G 80 ME-C-GI 9.5, 10.5 12 X 7L28/32 DF2 S 80 ME-C-GI 9.54 S 70 ME-C-GI 7, 8.2, 10.5 6 x 9L28/32 DF
151 G 70 ME-C-GI 9.2, 9.5, 10.5 8 x 7L35/44 DF 2 L 70 ME-C-GI 8.2 15 x 9L28/32 DF8 G 60 ME-C-GI 9.5,10.53 S 60 ME-C-GI 10.59 S 50 ME-C-GI 8.2,8.5, 9.5
1 G 50 ME-C-GI 9.5 8 x 7L28/32 DF / 4 x 5L28/32 DF
2 G 45 ME-C-GI 9.5 4 X 5L23/30 DF / 8 x 8L23/30 DF
23 20 G 50 ME-B/ME-C –LGIM 9.3, 9.5, 9.63 S 50 ME-B-LGIM 9.3
2316 G 60 ME-C-GIE 9.53 G 50 ME-C-GIE 9.54 S 50 ME-C-GIE 8.2
7957 G 60 ME-C-LGIP 10.5, 9.5, 9.27 S 60 ME-C-LGIP 10.59 G 50 ME-C-LGIP 9.66 S 35 ME-C-LGIP 9.7
MethaneMethanolEthane
LPG
Orders Including Options
26-03-2021Rana Tais - Dual fuel reference list – ©2021 7
Strictly confidentialPublic
LPG as marine fuel
8
Fast uptake in LPG carrier sector
The industry standard‒ Applied to almost 100% of Very
Large Gas Carriers (VLGCs) ordered in 2020.
‒ Several references within handy-size and mid-size LPG carriers as well, however slightly slower transition compared to VLGCs.
Strictly confidential
How to reach TIER III
EGR
SCR HP LP
Public
All data provided in this document is non-binding.This data serves informational purposes only and is especially not guaranteed in any way.Depending on the subsequent specific individual projects, the relevant data may be subject to changes and will be assessed and determined individually for each project. This will depend on the particular characteristics of each individual project, especially specific site and operational conditions.
MAN B&W ME-GA engine – ©2020 V.1 10
Thank youvery much
The commercial case for LNG
Tanker Shipping & Trade Webinar Week: The case for
LNG and LPG fuelled tankers
11th May, 2021
Modelled 300 K DWT VLCCInvestment case for LNG is compelling
• Best ROI on NPV basis over conservative 10 year time horizon
• 3 to 5 years payback
• Diminishing CAPEX hurdle
• Competitive energy costs
• Enables incremental decarbonization, avoiding stranded assets
• Continuously expanding bunkering infrastructure
Source: LNG AS A MARINE FUEL – THE VLCC INVESTMENT OPPORTUNITY, https://sea-lng.org/our-work/
Average of +7 years compliance with Poseidon Principle loan requirementsLNG can offer competitive finance advantage
Source: LNG AVERAGES 7 EXTRA YEARS ADDITIONAL COMPETITIVE ADVANTAGE FOR POSEIDON PRINCIPLE LOANS, https://sea-lng.org/news-views/
LNG uptake as a marine fuel is accelerating
Source: LNG - The Only Viable Fuel https://sea-lng.org/2020/08/lng-the-only-viable-fuel/
Tanker segment in the vanguard
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160
Num
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f ves
sels
LNG fuelled fleet by vessel type
On Order
In operation
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600
700
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Num
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f ves
sels
Year
Development of LNG-fuelled fleet
LNG ready
On order
In operation