converting vessels to run on lng as a marine fuel
TRANSCRIPT
Converting vessels to run on LNG as a marine fuel8 March 2021 • 09:00-09:45 GMT
#marinefuels
Marine FuelsWebinar Week
Part of
8-12 March 2021
Panellist documents
Page 2: Guus van der Bles, Conoship InternationalPage 11: Stephan Vetter, KfW IPEX BankPage 18: Björn Munko, TGE Marine Gas Engineering
CO2 CAPTURING ON BOARDLNG-FUELED VESSELS
TURNING EMISSION TO FEEDSTOCK FORSYNTHETIC E-FUELS
BY GUUS VAN DER BLES
08-03-2021 CO2 Capturing on board LNG Fueled vessels 1
INTRODUCTION CONOSHIP INTERNATIONAL
CO2 Capturing on board LNG Fueled vessels08-03-2021 2
Conoship Int. , Groningen, Netherlands• Ship Design office started 1952• > 2000 vessels built of our design• Focus R&D: eCONOmy & eCOlogy
▪ Reduction of fuel & emissions▪ Propulsion on LNG/MeOH/H2▪ Wind Assisted Ship Propulsion▪ CO2 capturing on boardPractical applicable innovations
08-03-2021 CO2 Capturing on board LNG Fueled vessels 3
Capturing CO2: • proven technology• land-based plants: • size/weight/roll&pitch-effects?
Storing CO2 on board:• Liquid: -20 C @ 20 bar in tank(/-
containers)• Energy for cooling? => cool CO2
with LNG
CHALLENGES: CAPTURING & STORING CO2 ON BOARD
08-03-2021 CO2 Capturing on board LNG Fueled vessels 4
HOW DOES CARBON CAPTURE WORK
08-03-2021 CO2 Capturing on board LNG Fueled vessels 5
CO2 CAPTURE ON LNG VESSEL + LIQUIFY CO2 WITH LNG
Combining carbon capture
with LNG:
• Exhaust gases from LNG
contain little contaminants
(SOx, NOx, particulate matter)
=> less complicated capture
• CO2 needs cooling to be
stored: LNG is a cold source
- 163 C -> -20 C @ 20 bar
or -50 C @ 8 bar
08-03-2021 CO2 Capturing on board LNG Fueled vessels 6
CAPTURING INSTALLATION IN SHIP
08-03-2021 CO2 Capturing on board LNG Fueled vessels 7
2019~2021 FEASIBILITY STUDIES ON-BOARD APPLICATION
Fossile LNG => ~ 85% Methane = CH4
CH4 in LNG-engine: => CO2 + H20Capture CO2 on board + liquify +
store in CO2 tank (-containers)Unload & store in empty offshore gasfields f.e. NorhternLightsFulfil UN SDG 13 ‘Climate Action’!
Future: sell tankcontainers CO2…
LNG-FUELED VESSELS & CO2-CAPTURING~ CLOSED CARBON LOOP
08-03-2021 CO2 Capturing on board LNG Fueled vessels 8
Future: tankcontainers liquid CO2 => feedstockfor ‘synthetic E-Fuels’Windenergy -> clean E-power -> ‘green’H2 H2 + CO2 -> CH4 + H2O (Sabatier proces)Example E-Fuel CH4 = synthetic Methane=> liquifying => LSM ready to fuel LNG-vessel
Actual LNG fueled vessels can be CO2-neutralin future with Ship Based Carbon Capture
TURN CO2 EMISSIONS TO FEEDSTOCK FOR E-FUELS
08-03-2021 CO2 Capturing on board LNG Fueled vessels 9
Financing Alternatives for LNG Retrofits
Marine Fuels Webinar Week
04.03.2021
Financing Alternatives for LNG Retrofits, 08.03.2021, Marine Fuels Webinar Week 2
Challenges
LNG Retrofit Financing
Second lien financing
is difficult and expensive.
High investments
for LNG retrofitsneeded.
There are fewbanks
that finance vessel retrofits.
Usually existingship finance
mortgage on thevessel to be
intended for a retrofit.
LNG Retrofit Financing
?
Upsizing of Existing Facility
+ Can be done by existing
lenders
- Banks reluctant due to
higher LTV
Secured Loan
+ Typical ship finance
structure (mortgages from
other vessels)
- Provision of mortgage
Unsecured Loan
+ No provision of security
- Expensive
- Only acceptable for top
notch ship owners
- Normally 2-3 years tenor
ECA Covered Loan
+ Longer tenors possible
+ Potentially no provision of
mortgages needed
+ Bigger bank appetite
- Slightly longer execution
period
Financing Alternatives for LNG Retrofits, 08.03.2021, Marine Fuels Webinar Week 3
Financing Alternatives
Excerpt of our recent deals
Several retrofit financings in the last three years
Finance Partner for all kinds of maritime retrofits
Strong structuring expertise in retrofit financings
Access to market leading specialized suppliers for the relevant retrofit equipment
Financing Alternatives for LNG Retrofits, 08.03.2021, Marine Fuels Webinar Week 4
Retrofit Experience
KfW IPEX-Bank´s major maritime financing criteria
European link
− Ship owners and operators
− Shipyards
− Charterer
− Vessel / retrofit equipment
Strong counterparties
− Market leaders
− Sustainable business model
− Robust P&L and balance sheet
Min. ticket size
− EUR [15,000,000]
− Depending on complexity
Sustainable elements
− Green Loans
− Sustainability-Linked Loans
− CO2 efficient vessels / projects
− Environmental-friendly retrofits
Financing Alternatives for LNG Retrofits, 08.03.2021, Marine Fuels Webinar Week 5
Stephan Vetter
Vice President - Maritime Industries
Phone: +49 (0)69 7431-3355
Mobil: +49 (0)173-1457606
Mail: [email protected]
Palmengartenstraße 5‒960325 Frankfurt am Main, Germany
www.kfw-ipex-bank.de
www.linkedin.com/company/kfw-ipex-bank
KfW IPEX-Bank GmbH
Green Steel - Vargas Holding | Structuring and Arranging Proposal | November 2020 strictly private and confidential 7
08 Mar. 2021
Webinar –Converting vessels to run on LNG as a marine fuel
Björn Munko
Company Introduction
Convertiong Vessels to LNG Fuel | 08 Mar 20212 |
• TGE Marine Gas Engineering GmbH
• 40 years of experience with liquefied gas
• More than 200 gas carrier and fuel gas systems contracted
• Fuel gas systems for 4-stroke, 2-stroke engines
• Market leader as independent fuel gas supplier
• EPCS Contractor – Fuel Gas Systems / Fuel Gas Tanks
• Shareholder: Mitsui Engineering & Shipbuilding Co., Ltd. (MES)
260,000 m³ LNG carrier (conversion):• Owner: Nakilat, Qatar• Yard: N-KOM, Qatar• Classification: ABS
• Completion: 2015• Scope: pre-fabricated high pressure LNG fuel gas
system for 2-stroke dual fuel MAN ME-GI main engine• Contract: MAN Diesel & Turbo (MDT)
Convertiong Vessels to LNG Fuel | 08 Mar 2021
LNG Conversions – Gas Carriers
6,500 m³ LNG/LEG carrier:• Owner: Anthony Veder, The Netherlands• Yard: AVIC Dingheng, China• Classification: BV• Completion: 2012• Conversion: 2014 LNG as fuel• Scope: Ship design, complete gas handling and fuel
supply system, complete tanks
3
Conversion of 3,750 dwt Product Tanker:• Owner: Bergen Tankers, Norway• Yard: Noryards, Norway• Classification: BV• Completion: 2015 (for conversion to gas
propulsion)• Scope: LNG fuel tanks (vacuum insulated)
and fuel gas system• Rolls Royce gas engines, 4s/Otto
LNG Conversion - Product Tanker
Convertiong Vessels to LNG Fuel | 08 Mar 20214 |
LNG Conversion - Container Feeder ‚Wes Amelie‘
Conversion2017 at German Dry Docks
TGE Marine scope of supply:LNG Fuel Gas System
LNG Tank with a capacity of 500 m³
Engineering, Supervision & Commissioning
Funding by German Government:Funding program for LNG as marine fuel
Up to 60% of cost for conversion are eligible
Max. funding amount 7 M€ per project
Funding program was extended until end of 2021
Convertiong Vessels to LNG Fuel | 08 Mar 20215 |
LNG fuel gas systems – basic components
Convertiong Vessels to LNG Fuel | 08 Mar 2021
Primary auxiliary systems:
• Water-glycol heating system
• Inert gas system
• Valve remote operation
• Safety systems
• Automation & control
Secondary auxiliary systems:
• Vent / ventilation
• Valve remote operation
• Instrument air
Supply toengines
Master gasfuel valve
Fuel Gas System Battery Limits
BunkeringStation
LNG Containment System (Tank)
Fuel Gas conditioning(pump, vaporizer…)
6 |
Trilobe Tank for 15.000 TEU Container vessel
7 |
Tank type TrilobeTank Dimensions Ø 10.8 x B 18.6 x 43.7 m
Tank Volume (geometric) 7,600 m³
Tank Volume (usable) 6,900 m³
BOR ~ 0.25 %/day (~ 320 kg/h)
Weight ~ 960 t
Convertiong Vessels to LNG Fuel | 08 Mar 2021
