Introduction of Gas Turbine-Powered, LPG Fueled Ship

Byeongyeol BaekAdvanced Lead EngineerGE’s Marine SolutionsMarch 6 to 7, 2018

February 9, 2018

Presentation Title

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Tapping GE capabilities to accelerate change

GE Store SolutionsAeroderivative gas turbines, diesels, pumps, compressors, power management, energy recovery, generator sets

POWER

Aeroderivative gas turbines, diesels, electric pods, propulsion motors and drivesPROPEL

Dynamic positioning, automation and vessel control solutions

POSITION

Up to

70% reduced

emissions

Up to

10% fuel savings

Up to

5-10% efficiency

gain

PREDICTIVITY GE Predictivity* solutions, increasing productivity through asset optimisation

70+ Drill Ships

50 Semi-Sub Drill

Rigs

24 FPSOs

90+LNG

Carriers

8Ice

Breakers

300+OSV / PSVs

+1,400 Vessel References

GE solutions to power, propel, position and predict the marine industry

Up to

20%Target non productive

time

*Indicates a trademark of the General Electric Company and/ or its subsidiaries.

GE’s Marine Solutions

LM6000PC

LM2500+

CF6-80C2

CF6

B747, 767A300/310/330

DC-10

Applications

LM500CF34 BombardierEmbraer

LM2500

All ratings are at ISO no losses

Power Output - shp/kWThermal Efficiency

70,656 / 52,68942.5%

40,500 / 30,20039%

6,130 / 4,57032%

33,600 / 25,06038%

LM2500+G4 47,370 / 35,32040%

GE’s marine gas turbine genealogy

Same factory = same proven technology, same quality, same reliability

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LM6000PG

61,851 / 46,12342.7%

COmbined Gas turbine, Electric and Steam (COGES) system for propulsion and power

• Dual fuel capable… LPG and MGO

Bringing aircraft engine quality, reliability and power density to marine5

Heating SteamSteam Steam Loads

Ship Service Load

Hotel Load

Propulsion LoadE

lect

rical

Dis

tribu

tion

HeatRecoverySteamGenerator

Dual Fuel GasTurbine Generator

Gas Fuel Supply System Vapor LPG

DiverterValve

Liquid LPG

MGO

Steam Turbine Generator

COGES valueEmissions

Tier III IMO compliance today… without exhaust after

treatment

Support Network

Worldwide service networkGas turbine “swap out” in

24-48 hours

Engine Availability

High standards inherited from Aviation flight engines

>99% engine reliability

Power Density = Flexibility

Weight & volume advantages … 80% lighter and 30% smaller

vs. slow speed diesel

Fuel Flexibility

Dual fuel engine able to handle wide gas variation with no

methane slip

Savings in lube oil, pilot fuel, maintenance and crew versus

diesel technology

COGES

diesel

Life Cycle Cost

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Integrating proven technology for LNG power andpropulsion

FPSOs

Dual Fuel and Gas Operation

Dry Low Emissions LNG FueledCombined Cycle Operation

Land-based and

Offshore

18,200,000operating hours

industrial installations

67012,200,000operating hours

cruise ships17

installations42 Offshore

land-based installations

179

1st LNG fueled fast ferry

Fastest World’sship

2 x LM2500make 58 knots

+ + +72,100,000operating hours on gas

Land-based and

Offshore

29,500,000on dual fuel engines

(All figures are LM2500/+/+G4 only)

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COGES maintenance benefits

On Condition Maintenance

> Mean Time Between

Overhauls

Reduced Vessel Downtime

24 Hour Swap-Out

• No “hard” intervals…overhaul only when engine condition warrants

• Alternating partial and full overhauls

• 50,000 operating hours before first expected partial overhaul (5 years)

• Aligned with ship maintenance

• Engine swap out in 24 hours• Large network of lease gas turbine engines

through Global Support network• Maximum port maintenance time = 48 hrs

Gas turbine = 300 man-hours/year of routine operator maintenance… THAT’S IT!

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50,000 hours

Operating expense considerations…beyond fuel

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Cost of ownership = fuel cost + lube oil cost + maintenance cost + crew cost

Diesel

Annual Operating Expenses Extra Crew …driven by maintenance requirementsCOGES maintenance aligned with dry dock schedule

Emissions• Urea for NOX• Scrubbers for SOX• Maintenance on exhaust treatment

equipment

Lube oil and pilot fuel• Cannot operate on “pure gas”

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Korean LPG fueled ferry

Status

<2016>May GE/Korea LPGA develop LPG fueled shipNov YS Global, Korea LPGA, GE, Dintec and FESDEC form consortium to build

LPG fueled ferry

<2017>Apr LPG fueled ferry receives HAZID and Approval in Principle by Bureau VeritasMay Hyunsung MCT established as joint venture company for LPG fueled newbuild July BV enacted LPG fueled ship design guidance note based on IGF CodeDec HS MCT signs shipyard for new LPG fueled ferry

<2018>Jan Letter of intent signed for LPG fueled shipbuilding between Hyunsung MCT and

Yuil shipyard

Conventional ferry

COGES ferry

COGES offers more power and space…can carry more cargo or fuel

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Very Large LPG Carrier…85,000 CBM cargo

Source: ‘www.maritime-executive.com’

Conventional LPG Carrier• Cargo capacity : 85,000 cbm• Propulsion fuel : HFO

COGES powered LPG Carrier• Cargo capacity : 85,000 cbm• Propulsion fuel : LPG

COGES option with Pod Propeller • Enhanced with pod propulsion efficiency and

maneuverability

COGES advantages:

• IMO Tier III compliant

• 100% of cargo delivered thanks to an extra fuel tank

• 35% additional days available for more revenue

• Reduced fleet and crew size

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Small LPG carrier .. 6,000 CBM cargo

Conventional LPG carrier• LOA 118m / Beam 18m• Cargo capacity: 6,200 cbm• Propulsion fuel: HFO/FO tank 480 cbm

COGES powered LPG carrier

COGES option with pod propeller • Enhanced with pod propulsion efficiency and

maneuverability• Can convert to 5 MW power ship

• LOA 118m / Beam 18m• Cargo capacity : 6,200 cbm• Propulsion fuel : LPG / 1200 cbm

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Containership...extra cargo at every classMega Container ~ 20K TEU

• Generator: COGES x 2 sets• Fuel LPG tank capacity : 20,000 cbm

LPG COGEScargo efficiency

5% more cargo

than HFO conventional

New Panamax ~ 14K TEU

Feeder Max ~ 4K TEU

• Generator : COGES x 2 sets• Fuel LPG tank capacity : 12,800 cbm

• Generator : COGES x 1 set• Fuel LPG tank capacity : 5,700 cbm

5% more cargo

than HFO conventional

8% more cargo

than HFO conventional

COGES also benefits small

container ships:

14% more cargo

than HFO conventional

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LPG fueled Power ShipLeveraging existing value chain for cost effective life cycle cost

LNG value chain to power barge

LPG value chain to power ship

LNG Export Terminal LNG Carrier LNG Storage Small LNG Carrier Small LNG FSU LNG power barge

LPG Export Terminal LPG Carrier LPG Storage Small LPG Carrier LPG Power ship

Existing New build

ExistingMORE COST EFFECTIVE

Retrofitted from 6000 cbm LPG carrier

ExistingMORE COST EFFECTIVE

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More COGES LPG applications

170 cbm LPG Tank

Patrol boat .. 1,000GT class Small Bulk Carrier and Tanker

Requirements and COGES solution

Faster 10% more power with gas turbine, 5% better propeller efficiency with POD

Quick bunkering ship-to-ship LPG bunkering with small LPG carrier retrofit

Economic MGO vs. LPG fuel price

Requirements and COGES solution

Need sufficient fuel tank to cover long voyage Difficult to secure additional fuel tank due to small engine room COGES efficiency similar with small LPG carrier and can

secure LPG fuel tank due to compact and lightweight advantages

• Very Large Bunker Carrier• Very Large Oil Carrier• Large Car Carrier• Cruise Ship

• Heavy Lift Carrier

Safer More Cargo Faster

Leading ship propulsion innovation…

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1st LNG fueled ferry in 2013 1st LPG fueled ferry in 2019

• Compact and lightweight COGES offers more room for cargo and passengers

• Low emissions to meet regulations without exhaust treatment

• Fuel flexible operating on LNG, LPG or liquid fuel

• Demonstrated 99% reliability

• On-condition maintenance for longer time between repairs

Lowest annual operating cost of any propulsion solution

GE gas turbines: Powering the world’s first LNG and LPG fueled ferries