the case for lng and lpg-fuelled tankers

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……

0 4 / 0 5 / 2 0 2 1 T h e n e w r e a l i t y f o r s h i p p i n g 2

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


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…….


✓ 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?


LPG, LNG green hydrogen or ammonia ready ?


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


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

w w w . w l p g a . o r g

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


Only Advantages

Source: Bureau Veritas

Only advantages


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


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


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


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


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


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


The Alternative Bunker Fuel for the Next Decades


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


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

[email protected]

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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100

120

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160

Num

ber o

f ves

sels

LNG fuelled fleet by vessel type

On Order

In operation

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Num

ber o

f ves

sels

Year

Development of LNG-fuelled fleet

LNG ready

On order

In operation

the case for lng and lpg-fuelled tankers

Documents