The Fuel Line for 2020 and beyond
„Final Check 2020“ │ Hafen-Club Hamburg │ 18 June 2019
Dr. Markus
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Hoffmann www.alfalaval.com/marine
Alfa Laval on board
Steam and hot water
Waste heat recovery production 17 Product groups
Thermal fluid heating systems
EGR water Heating and cooling
treatment
Desalination
Exhaust gas Ballast water treatment
cleaning
Inert gas system
Crankcase
Gas
gas cleaning
combustion
Oily waste
treatment
Cargo
Fuel conditioning
pumping
Filtration
Oil cleaning Tank
cleaning
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Outline
Fuel types
Fuels today: some statistics
Marpol Annex VI
Demand and Supply
How does a 0.50% sulfur fuel look like and how can we handle it?
Where is the industry moving after 2020?
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Fuel Types
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Terms and Definitions
Marine fuels can be also be categorized by sulphur content. The international
council on combustion engines (CIMAC) suggests the following nomenclature:
− High sulphur fuel oil (HSFO): max. 3.50% sulphur
− Very low sulphur fuel oil (VLSFO): max. 0.50% sulphur
− Ultra low sulphur fuel oil (ULSFO): max. 0.10% sulphur
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Marine Fuel Specifications
Specifications for marine fuels are developed and defined by ISO/TC 28/SC 4/WG 6 and
stated in ISO 8217:2017
The fuel specifications can also be applied to fuels used in stationary engines
ISO 8217 groups fuels into
− Distillate marine fuels (7 categories: DMX, DMA, DFA, DMZ, DFZ, DMB, DFB)
− Residual marine fuels (6 categories: RMA, RMB, RMD, RME, RMG, RMK)
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Marine Distillate Fuels (ISO 8217:2017)
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Marine Residual Fuels (ISO 8217:2017)
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Extra Engine Requirements
Souce:
© Wärtsilä 46F Product Guide
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Fuel Statistics
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Residual Marine Fuels
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ULSFO (Max 0.10%) Sulphur Fuels
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IMO 2020 or
MARPOL Annex VI
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MARPOL Sulphur Content
86%
Reduction
3.5% 0.5%
3.50% 0.50%
June 18, 2019 Jan 1, 2020
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MARPOL 2020 Compliance
3.50% HSFO and Scrubber
0.50% VLSFO
0.10% ULSFO
LNG (dual fuel with MGO)
LPG, Methanol and others
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Supply and Demand
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It’s all about the price!
Ship operators will choose the lowest cost
route to compliance
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Fuel Price Prediction
$196/ton
Source: Robin Meech (2017)
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MARPOL Compliance with Scrubbers
“We expect the gasoil to HSFO 2020 price spread to
widen to more than 450 USD/ton”
Bjarne Schieldrop, Chief Analyst Commodities at SEB
Source: IMO2020 Report, March 2018
“We expect scrubber installations to rise quickly,
with scrubbed ships keeping a third of current high-
sulfur fuel in compliant use”
Source: Reuters, September 2018
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Marine Fuel Demand post 2020
The majority of vessels needs to use VLSFO in 2020
HSFO will grow strongly as incentive for scrubber installations will remain
Source: Boston Consulting Group, Just how disruptive will IMO 2020 be? (2019)
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How will a 0.50% sulphur
fuel look like?
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New VLSFO (0.50% Sulphur)
Water
Catalytic fines
Asphaltenes
Picture: Alfa Laval
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How will a 0.50% sulphur fuel look like?
Large variety of different fuel blends (majority will be residual)
Average viscosity will decrease (vs 3.50% HFO) with RMD 80 and RMG 180 probably
the most common grades. However, wide range of viscosities: 2 - 500 cSt.
Density will decrease (vs 3.50% HFO)
With a slightly more paraffinic nature, the viscosity index will increase
Catalytic fines will be there in varying amounts: max. 60 ppm (ISO RMG)
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Cat Fine Damages
Source: CIMAC Circle, MAN (2018)
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How will a 0.50% sulphur fuel look like?
Blending residual feedstocks with paraffinic cutter stocks increases the risk of
asphaltene precipitation
Special knowledge needed to avoid stability, compatibility and pour point issues
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Will the new 0.50% fuel fit in ISO 8217?
Yes! The general requirements of ISO 8217:2017 along with the characteristics
included in Table 1 and 2 cover 2020 0.50% max. sulphur fuels in the same way
as they cover today’s fuels including the 0.10% max. sulphur fuels.
At this time no new characteristic is being considered for inclusion to the standard.
ISO/PAS 23263:2019 to be published in Q3: “Considerations for fuel suppliers and
users regarding marine fuel quality in view of the implementation of maximum
0,50 % S in 2020”
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How to treat a VLSFO on board?
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ALCAP automatically adjusts to different fuels
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A conventional fuel line
Recirculation
Fuel feed to separator is independent from engine load
Large portion of oil recirculates during slow steaming
Recirculation adds to energy costs
The high flow rate leads to less efficient separation and an increased risk of engine
damage
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Adaptive Fuel Line with FlowSync
FlowSync adjusts the flow to separators to actual fuel demand by the engine
The result is; lower engine wear and energy savings
Tank level meter
Main
engine
FCM
Settling Feed Pre- Three way Separator Constant Service Supply Flow
tank pump heaters valve switch pressure valve tank pump meter
Aux
engine
Variable
Frequency Drive Controller
(VFD)
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One Separator – Full Speed
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One Separator – Slow Steaming
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One Separator – with FlowSync
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Separators in Parallel – with FlowSync
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Multi Fuel Management
Fuel Conditioning Module
▪ Experience: - More that 30 years, 300+ units per year
▪ Flexibility: - Manages up to 4 different fuel on board
▪ Engine protection: - Controlled Fuel Change Over
- 10µm Moatti Filter on hot side closer to engine
Alfa Laval Moatti 10 μm
▪ Optimization: - Provides data for optimization of fuel treatment system
- Detect fuel losses at an early stage
- Changing fuel faster and saving money
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What will happen after 2020?
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Focus on emissions will continue
SOx
NOx
CO2
PM
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Paris Agreement signed in Dec 2015
To strengthen the global response to the threat of climate change by keeping a
global temperature rise this century well below 2 degrees Celsius above pre-
industrial levels and to pursue efforts to limit the temperature increase even further
to 1.5 degrees Celsius.
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The 2-degree pathway is far away
©Source:
Alfa Laval McKinsey Global Energy Perspective (2019)
Slide 39 www.alfalaval.com/marine
CO2 Emissions by Sector
©Source:
Alfa Laval IEA Slide 40 www.alfalaval.com/marine
Oil consumption in transportation
Global oil consumption in transportation is 2.2 Billion MT
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EV Vehicle Share
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Source: vcoe.at Slide 42 www.alfalaval.com/marine
IMO GHG Strategy
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IMO Greenhouse Gas Emissions (GHG) Strategy
The MEPC adopted an initial strategy on the reduction of GHG emissions from ships
(April 2018)
Ambition to peak GHG emissions from international shipping as soon as possible and to
reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008
To reduce CO2 emissions per transport work, as an average across international shipping, by at least
40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008.
The IMO’s ultimate goal is to completely decarbonize shipping by the end of the century.
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Greenhouse Gas Emissions (GHG)
Anyone planning to finance, design or build a ship in the 2020s will need to consider
how it can switch to a non-fossil fuel later in its operational life
Technological innovation and the global introduction of alternative fuels and/or energy
sources for international shipping will be integral to achieve the overall ambition
Short-term measures could be finalized and agreed to between 2018 and 2023; mid-
term measures, between 2023 and 2030; and long-term measures to half GHG
emissions, beyond 2030.
Slow-steaming is the most effective way to reduce greenhouse gas emissions from
ships in the short-term, but it is hardly an emissions silver bullet. Slow-steaming
significantly reduces fuel consumption, but the longer voyage times lead to higher
operating costs, insurance and employment expenses that come with operating a
greater number of ships at any given time.
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CO2 Emissions of Alternative Fuels
LNG can only be an intermediate solution to reach GHG targets
HFO → LNG
‒25% CO2
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Source: AL with data from University of Birmingham, Ministry of VROM (Netherlands) www.alfalaval.com/marine
CO2 Emissions of Fuel Alternatives
Source:
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HSE Considerations for Ammonia
Really?
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How will ships operate in 30 years?
© Source:
Alfa LavalUCL Energy Institute www.alfalaval.com/marine
CO2 Emission-reduction potential and maturity of
individual measures
Source:
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FCM Low Flashpoint Fuel
MeOH ME-LGIM Engines
Fleet Run Hours: in excess of 20.000+ hrs
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FCM Low Flashpoint Fuel
LPG ME-LGIP Engines
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Thank you very much
for your attention
[email protected] www.alfalaval.com/fuelline
Alfa Laval
Don’t just comply – be a step ahead
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