turning our gas strategy into a growing...

© Wärtsilä NOT YET CLASSIFIED

Turning our gas strategy into a growing business

Mathias JanssonGM Innovation & Product SupportFuel Gas Handling, Marine Solutions


Table of content

• Local and global regulatory drivers

• LNG as fuel for marine vessel emerges & Gas fired powerproduction

• LNG Infrastructure opportunities

• It starts from the heart – gas engine development

• Expanding the gas solution portfolio

• Our solutions in the gas value chain

• Global presence and local opportunities

• A look into the future and conclusions


Local and global regulatory drivers

LOCAL

GLOBAL

LOCAL

LOCAL

Acid rainsTier II (2011)Tier III (2016)NOx

Greenhouse effectUnder evaluation by IMOCO2

Acid rainsSulphur content in fuelSECA 2015SOx

Direct impact onhumansLocally regulated

Particulatematter


IMO NOX & SOX REGULATIONS

0

2

4

6

8

10

12

14

16

18

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100

NO

x(g

/kW

h)

Rated engine speed (rpm)

Tier I - 130 kW - New ships 2000 Tier II - 130 kW - New ships 2011

Revised Marpol Annex VI

Tier III - 130 kW – Upcoming requirement for new ships 2016 in designated areas

2011 Tier 2 limit (global)14.5 – 9.0 g/kWh NOx IMO limit today

2000 Tier 1 limit (global)17 – 11.3 g/kWh NOx

Upcoming Tier 3 limit (regional; NECA)3.4 – 2.3 g/kWh NOx

~20%

-75%

Wärtsilä engines

–97% –86%–71%

–78%–67%

0.1

4.5

3.5

1.5

1.0

0.5

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

World

EU in ports

SECA

Sulphur limit (%)

California

2012

Baltic Sea

English Channel

NorthSea


LNG as fuel for marine vessel emerges& Gas fired power production

MS Viking Energy 2003MF Glutra 2000

Plains End I and II 2001 & 2006


LNG INFRASTRUCTURE


EXISTING LNG LOGISTIC CHAIN

Large scale terminal- Re-gasification

Gas distribution

Gas distribution

LNG peak shaving plant

Large scale carrier

Large scale carrier

Large scale liquefaction plant

Floating Storage andRe-gasification Unit(FSRU)

PORT

RIVER

Gas distribution

Wärtsilä Supply


FUTURE LNG LOGISTIC CHAIN

PORT

RIVERBunkeringvessel

Satellite &bunkeringstation

Gas distribution

Bunkering vessel

Gas distribution

LNG peak shaving plant

Tank truck / rail

Large scale carrier

Regional feederLarge scale carrier

Regional feeder

Large scale liquefaction plant

Large scale terminal- Break-bulk- Re-gasification- Bunkering(marine / vehicle)

Small/medium scale terminal- Bunkering (marine / vehicle)

Mini liquefaction plante.g. biogas(possibly incl. re-gasification)

PowerPlant

Tank truck

Tank station

Satellite &bunkeringstation

LNG fuelled cargo orpassenger ship

Gas distribution

Power Plant Industry Wärtsilä Supply

EmissionControl Area(ECA) withsulphur limitsmake LNGattractive

Floating Storage andRe-gasification Unit(FSRU)


DUAL-FUEL (DF)

GAS-DIESEL(GD)

It starts from the heart – gas engine development

SPARK-IGNITIONGAS (SG)

1987 1992 1995


Expanding the gas solution portfolio

• Internal development of gas solutions• Gas reformer, Fuel Cell and LNGPac

• Acquisition of good companies• Ship design & Hamworthy


Wärtsilä Gas Solutions, core competencesM

arin

eM

idst

ream

Ups

trea

m

Cargo Handling SystemFully Refrigerated Gas Carrier

Cargo Handling SystemEthylene / Multi Gas Carrier

Cargo Handling SystemFully Pressurized Gas Carrier

VOC recovery systems

Small scale LNG plantsLNG regasification plants BOG reliquefaction

Afte

rmar

ket

Services Start–up support Project life time support

Gas Reformer

Ship- and Cargo Tank design

HC Blanket Gas andRecovery

Flare Gas Recovery andIgnition

Gas Terminal

Cargo Handling SystemSmall LNG Carriers

New MR Biogas

Separation Technology

SparesAugust 2015 Company Presentation11


FUEL GAS HANDLING SOLUTIONS

18 March 2016 Presentation name / Author12 ©Wärtsilä

2009: 2/2 persons in Vasa2015: 30/36 persons in Vasa+ indirect more resources needed tosupport emerging business


THE BACKGROUND

• 2009 Wärtsilä LNGPac™ fuel gas handling developmentbegins

• 2010 First LNGPac™ order

• 2011 Bit Viking conversion to gas

• 2012 Harvey Gulf orders more LNG fueled PSVs

• 2013 Viking Grace – first cruise ferry on gas with

LNGPac™

• 2014 The new upgraded LNGPac™ is revealed• 2015 Wärtsilä Svanehøj ECA Fuel Pump launched and

over 50 LNGPac™ delivered or under construction


ENERGY SOLUTIONS

18 March 2016 Presentation name / Author14 ©Wärtsilä

6 people today working & developingLNG products and business.


OUR SOLUTIONS IN THE GAS VALUE CHAIN


Global presence and localopportunities


A look into the future and conclusions

turning our gas strategy into a growing...

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