M th Methanol, l

an Alternative Fuel for Shipping

Bengt Ramne ScandiNAOS AB
MARKIS 2011-11-30

 N Natural t l Gas G will ill be b a very important i t t energy source for marine propulsion
H H C H H

Methanol will be an efficient, universal, futureproof, energy carrier

O H C H H H

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

EffShi EffShip
Effi i t Shi Efficient Shipping i with ith Low L E i i Emissions

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

EffShip EffShi
Efficient Shipping with low emissions
Work packages p g WP1 Project Management WP2 Present and Future Maritime Fuels WP3 Exhaust Gas Cleaning WP4 Energy Efficiency and Heat Recovery 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% Dec 2009 March 2013

Duration

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

U Upcoming i regulations l ti

g NOx/kWh
16

IMONOxTechnicalcode
NOxTier II 2011(Global)

14 NOxTier III 2016 (NOx emissioncontrolareas)

12

10

0 0 100 200 300 400 500 600 700 800 900

1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

rpm

EffShip WP2
P Present and dF Future Maritime M ii Fuels F l

HFO LSHFO ULSHFO MDO MGO

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

Biofuel DME Methanol Synthetic diesel

LNG

AlternativeMarineFuel Feedstockandproducts
Crudeoil Refining Natural gas Cooling 163C BioGas Anaerobic digestion Reformation CH4 +H2O CO+3H2 CO+H2O CO2 +H2 Residuals HFO Distillates MGO LNG Coal Biomass Gasification C+O2 CO C+H2OCO+H2 CO+H2OCO2 +H2 CO2 +C2CO Municipal waste Solar Hydro Wind Nuclear Electrolysis ofwater H2O H2 +O2 Carbon capture CO2 Syngas Hydrogen+Carbon monoxide (H2 +CO) Methanol CO+2H2 CH3OH CO2 +3H2 CH3OH+H2O CO2 +H2 CO+H2O DME Dehydrationofmethanol 2CH3OHCH3OCH3+H2O DMEto liquid Mobile process HFOICE Fuel Diesel fuel MGOICE Fuel LNGICE/FC Methanol Fuel ICE/FCFuel Synthetic petrol DMEICEFuel Paraffin Na ptha Diesel Hydrogenas ICE/FCFuel DME Directsynthesis,usingadualcatalystsystem Fixedbedreactorprocess(HaldorTops) Slurry ybedreactorprocess p (JFE, ( AirProductsand Chemicals) Gastoliquid GTL FischerTropsch Cracking Paraffin Naptha Diesel

Dieselfuel

Ottofuel

Ottofuel

Ottofuel

Dieselfuel

Requiresspark Requiresspark g or ignition ignition g , ,dual dualfuel fuelor methanol dieselengine

ScandiNAOS/BR20110323

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

Methanolproducedfromforest products Naturalgaswellheadprice 0.010 183 /kWh $/ton Crude eqv. Methanolcostexworks 0.025 432 /kWh $/ton MGOeqv. 0.072 44 1244 /kWh $/ton MGOeqv. q Methanol alongsideGteborg 0.05 863 /kWh $/ton MGOeqv.

Naturalgaswellheadprice 0.010 183 /kWh $/ton Crude eqv.

LNGcostexworks 0.02 345 /kWh $/ton MGOeqv.

LNGFOBZeebrugge 0.03 518 /kWh $/ton MGOeqv.

LNGalongsideGteborg 0.046 794 /kWh $/ton MGOeqv.

Crudeoilwellheadprice 115 843 $/bbl $/ton

Crudelanded(WTI/Brent approx) 119 0 051 0.051 872 $/bbl /kWh $/ton

MGOportprice 0.062 1070 /kWh $/ton

HFOportprice 0 041 0.041 698 /kWh $/ton

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

North Europe SECA

(Baltic Sea, North Sea and English Channel)

Estimated Marine Fuel Market 2015

Without SECArules HFO 18000000 8 000000 WithSECArules Assuming 40% of the ships will fit a scrubber Assuming 30% of the ships will change to 0.1% MGO Assuming 30% 3 % of the ships will change to a clean fuel that is cheaper than MGO

MDO/MGO

2000000

6000000

Alternativefuel (LNG,Methanol)

6 000000

Metric Tonsfuel oil equivalents

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

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

Estimated Marine Fuel Market 2015

WithSECArules HFO 8000000 Consequence Severalthousand vessels Scrubberinstallationcost: toinstallscrubber SeveralbillionEURO Minimum50%cost increase

MDO/MGO

6000000

Alternativefuel (LNG,Methanol)

6 000000

Newfuelmarketannual turnover4billionEURO

MetricTonsfuel oilequivalents
MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH
Alcohol (Spirit) and Ether as Marine fuel

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH
The Th 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 Stena S Scanrail l

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH - The pilot project

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

SPIRETH
The Th b benefits fit
Methanol can be made available in principle everywhere 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 treatment The Th cost t for f conversion i and/or d/ adaption d ti to t 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)
0.16

+70%

0.14

+43% +28% +25%

LNGconversion LNG

0.12

/kWh mechan nical power

0.1

Methanolconversion Methanol

0.08

MGO Maintenance Sludge

0.06

FW Electricity

0.04

NAOH 50% Scrubber equipment cost per kWh HFO

0.02

0 HFO Scrubber Closeloop MGO Fuel alternatives Methanol LNG

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

EffShip p & SPIRETH

There are a lot of opportunities in methanol!

MARKIS ScandiNAOS/Bengt Ramne 2011-11-30

Thank you