Maritime Update Interferry Edition (October 2013) by DNV GL (old account)

Innovative low emission RO/PAX design

New ferries take LNG further

US breakthrough on LNG

maritime update

News from DNV to the maritime industryâ&#x20AC;&#x192; October 2013

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Read this update on your tablet! trond Arne Schistad ferry director Trond.Arne.Schistad@dnv.com

To view this update in PDF format on your tablet, scan the QR code or go to www.dnv.com and download the PDF manually.

Dear Reader,

www.dnv.com

I’m pleased to introduce to you a special edition of this magazine for the Interferry 38th Annual Conference 2013. In this issue we focus on the environmental and efficiency challenges important to the global ferry industry. How to adapt to future environmental regulations is in focus because we are rapidly moving towards tighter eCA requirements as well as other new regulations. The eeDI will force improvements in energy efficiency and IMO is amending the MARPOL regulations. The challenges ahead will have a major impact on profitability and sustainable business performance. Regulatory foresight is key to making the right choices today in order to ensure competitive solutions in the future. We believe operators will benefit from a proactive strategy. Those who resolve some of the key challenges will gain significant benefits compared to late movers. Operators that succeed in finding solutions for cleaning exhaust gases or using alternative fuels will have significantly lower costs than those who need to run their fleets on MGO.

maritime update interferry edition Published by dnV gL editor: marianne wennesland editorial Committee: trond Arne schistad, david wendel design and layout: Coormedia.com 1309-002 printing: Coor media 09-2013 front cover photo: © getty images Please direct any enquiries to dnVupdates@dnv.com

Many solution providers claim to solve these issues or significantly reduce fuel costs. The challenge is that not all these solutions are proven, so making decisions is a gamble. This requires new approaches to the identification, qualification and implementation of new technology. It is therefore interesting to observe how the first movers in the ferry industry are in the very forefront of maritime innovation, actively challenging traditional ways of working and generating new ideas. We are therefore happy to share some of these stories with you in this Interferry edition to inspire further innovations and industry collaboration that will be needed for us to achieve our common ambitions.

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Online edition of maritime update: www.dnv.com/maritimeupdate dnV gL nO-1322 høvik, norway tel: +47 67 57 99 00 fax: +47 67 57 99 11 © dnV gL www.dnv.com

Green Ship

Innovative low emission RO/PAX design Danish partnership Green Ship of the Future works to find commercially feasible solutions for more energy-efficient and sustainable operations at sea. DNV had the pleasure of partaking in its Low-emission RO/PAX ferry study, resulting in significant emission savings and potential fuel bill savings of approx. 23%.

Text: Claus Graugaard, DNV

In the open private/public partnership Green Ship of the Future (GSF) the Danish maritime community joins forces to explore, develop and demonstrate ambitious technical solutions for cleaner, more energy-efficient and sustainable ships and maritime operations. This is done by applying technical developments and innovations to new and existing ships. The initiative evaluates and implements technical solutions in order to push green innovation and thinking within the maritime industry – with an eye on commercial feasibility. In GSF’s Low-emission RO/PAX ferry study, run by 14 GSF partner companies, DNV has headed the machinery and alternative fuel group and coordinated its work in relation to the other group leaders and project manager OSK-Shiptech. The study investigated the possibilities for reducing a RO/PAX ferry’s emissions

and fuel consumption, focusing on technical and logistical elements relating to machinery, propulsion, alternative fuels, light-weight materials and other areas affecting emissions. It was based on an existing RO/PAX ship, Gotlands Bolaget’s M/F Visby. Using a known operation profile made it possible to benchmark emission and fuel reductions from innovative solutions against existing data. Highlights and conclusions The pool of expertise both assessed and produced many innovative and interesting design solutions with significant fuel and emission reduction potential, all of which will be addressed during the GSF presentation at the Interferry 2013. In total, the GSF design gave rise to emission savings of close to 98% SOx, more than 90% NOx and more than 35% CO2 and to fuel bill savings of approx. 23%. Of course, the impact of the

individual technology solutions depends on the total power consumption relative to the ship operations. Amongst the contributing solutions included were a counter-rotating propeller (CRP) of 15 + 20 MW, combined with hull lines and wake field optimised to accommodate this solution. This achieved an isolated fuel saving potential of 12.7%. Other factors in the emissions equation include the vessel being designed to operate with LNG as fuel. Alternatively a methanol fuel solution has been assessed and can be adopted. 

Claus Graugaard, Claus.Graugaard@dnv.com

Maritime update interferry edition |

dNV INSIGht

efﬁciency through technology choices the global shipping community is entering a challenging future, as both demands for economic results and the upcoming environmental requirements will change shipping and lead to significantly cleaner and more efficient operations. this is driving innovation as the need for efficiency is creating new solutions. we have challenged our experts to provide input on technology choices, fuel solutions, eCA compliance and other regulatory issues brought forward by the imO and governments worldwide. in this complex picture, making the right choices for both new and current ships is essential and a main topic of this issue of maritime update. this article consists of three parts: eCA implementation, alternative fuels and future innovative solutions.

ECA ECA ECA ECA ECA

Existing

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the eCAs for the north sea and the Baltic sea are currently adopted for sOx and Pm. the eCAs for north America and us Caribbean are currently adopted for sOx, The ECAs for North Sea and Baltic Sea are currently adopted for SOx and PM. The ECAs for North America and US Caribbean are currently adopted both for SOx, PM and NOx Pm and nOx. in eCAs the sOx/Pm requirement is currently a 1% sulphur cap on fuels, and from 2015 a 0,1% cap (scrubbers allowed as an alternative). the nOx n ECAs the SOx/PM requirement is currently a 1%to sulphur fuels, and 20151 aJanuary 0,1% cap (scrubbers allowed as an alternative). The NOx requirement is an emission level equal to Tier requirement is an emission level equal tier iiicap for on ships built onfrom or after 2016. II for ships built on or after 1 January 2016

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dNV INSIGht

Cumulative Total Cost (USD) compared to baseline with HFO, LSHFO and MGO $20

GLOBAL CAP: 4.5% S

Sulphur content

4.0

Real costs (2012 USD million)

5.0

3.5% S A review in 2018 may conclude that the 0.5 limit should be postponed to 2025

3.0

Average sulphur content today

2.0 (S)ECA CAP: 1.5% S

1.0% S

1.0

0.5% S 0.1% S

0.0

2005

2010

2015

2020

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mARPOL sOx regulations

plANNING for eCA IMpleMeNtAtIoN TeXT: oCÉane Balland AND Harald Gundersen, DNV

Those operating in dedicated emission Control Areas (eCA) from 2015 have mainly three choices: switch to low sulphur (0.1%) fuel oil, install a scrubber or convert to LNG. each of these options comes with its own set of risks, thus making investment decisions difficult. The solution that appears to be the cheapest investment may turn out to be the most expensive one in the long run. In order to remain competitive in the market, it is crucial to make the right choice. The eCA requirements will affect trade in large parts of europe as well as the United States and Canada, and some 40 per cent of the world fleet enter these areas during a year, with half spending more than five per cent of their time in these waters. eCA requirements are also being considered in several other areas globally

$15

Fuel switch

$10 LNG high price Scrubber

$5 $0 2015

Baseline (LSHFO and MGO)

2020

2025

LNG reference price

2030

$–5

2025

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One example of a financial comparison of the different options for a small container vessel

and this means that eCA requirements must be part of your planning. From 2016, all new ships must comply with the Tier III NOx requirements when operating in the North American/US Caribbean eCA and this requirement is almost certain to be extended to the Baltic Sea and North Sea eCAs as well. Scrubbers allow for the use of high sulphur fuel and there are no availability concerns as to fuel. A scrubber requires significant space and investment costs and will not comply with future NOx requirements. LNG has been used as a marine fuel since 2001 and 38 LNG-fuelled ships are in operation worldwide, with about 30 in the order books. LNG meets the future eCA SOx limits, helps meeting eeDI requirements and can comply with eCA NOx regulations, but requires significant investment and extra space on board for LNG tanks. The main concerns include LNG bunkering availability and the price of LNG. Low sulphur fuel oils are a well proven and tested solution, but both price and

supply capacity sufficient to meet a sudden increase in demand may be issues if this becomes the preferred solution. In addition, they will not help meet the NOx regulations. DNV has developed a decision support tool that assesses the financial attractiveness and technical feasibility of the available eCA compliance measures. It can be applied to specific ships and operational patterns. The right option will depend on the ship owner’s time horizon – a wrong technical choice may be severely detrimental to competitiveness. The DNV eCA decision support tool includes: ■

■

Analysis of the technical feasibility of available options, operational aspects and related risks Fuel consumption estimates for each option based on the ship’s operational profile High-level financial analysis, including a CAPeX, OPeX, payback-time and sensitivity analysis for critical input parameters such as fuel price scenarios 

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DNV insight

Alternative fuels for shipping Text: Christos Chryssakis, DNV

on the fuel. In principle, existing diesel engines can run on biodiesel blends. Potential problems include fuel instability, corrosion, susceptibility to microbial growth in long-term storage, adverse effects on piping and instrumentation and poor cold-flow properties. Most of these problems can be solved, and testing on board ships is carried out to resolve the remaining issues. The widespread use of alternative fuels in shipping will depend on cost, incentives and availability in sufficient volumes. £

DNV Research & Innovation is invest igating a number of alternative fuels that are available today or are expected to be available in the near future. The most promising alternative today is LNG, but a number of other fuels, such as biodiesel, LPG, DiMethylEther (DME) and methanol, may become part of the fuel

mix in the future and can also be used to comply with sulphur regulations in an ECA. Biodiesel can be used in existing marine engines, while the other fuel solutions can be used in dual fuel engines. Here, typically a pilot fuel oil injection is used for ignition at engine loads of over 25 per cent. At low engine loads, fuel oil is used. In biofuel operations, SOx emissions are eliminated and particulate matter emissions are significantly reduced, while NOx emissions can also be reduced depending

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Demands for economic results and the upcoming environmental requirements will change shipping and lead to significantly cleaner and more efficient operations.

Innovation and adaption of new solutions Text: Tore Longva, DNV

DNV has highlighted six key areas that offer significant potential for innovation and we believe these will be at the core of R&D in the next ten years.

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The low-energy ship Multifunctional ship types and/or technological advances in drag reduction, propulsion and materials are expected to support new ship concepts. Significant efforts have been put into creating energy-efficient ships over the past couple of years, and further progress will be achieved between now and 2020. The green-fuelled ship Reductions in the permitted emission levels

of SOx, NOx and particulate matters will result in the use of cleaner energy sources. Abatement technologies such as exhaust gas recirculation, scrubbers and catalytic reduction as well as the use of LNG and biofuels will be further exploited. The electric ship “The Prius of the Sea” could contain diesel-electric configurations, marine fuel cells, battery

DNV insight

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From left: Tore Longva (DNV International Regulatory Affairs), Harald Gundersen (DNV Maritime Advisory), Océane Balland (DNV Maritime Advisory), Christos Chryssakis (DNV Research & Innovation) and Eirik Nyhus (Environmental Director).

packages, solar panels or retractable wind turbines, and superconducting motors. Such complex powering systems will require energy production to be designed, operated and controlled in an integrated manner. The digital ship “E-navigation” is not new to shipping and by 2020 most of the fleet will have installed such systems. The onboard electronic charts will become the unifying platform on the digital ship, and will also integrate security, navigation risks, port entry information, weather routing and similar needs.

The Arctic ship Increases in Arctic ship traffic over the next decade will lead to the faster development of Arctic-related technologies. These include ice-route optimisation software, hull-load monitoring systems and maybe the introduction of new ice-breaking concepts. The virtual ship In order to manage the risks inherent in innovative solutions, there will be wide use of model-based techniques for assessing novel concepts and technologies. These include assessments of the ship’s technical and economic performance from a life cycle perspective. £

Océane Balland, Oceane.Balland@dnv.com Harald Gundersen, Harald.Gundersen@dnv.com Christos Chryssakis, Christos.Chryssakis@dnv.com Tore Longva, Tore.Longva@dnv.com Eirik Nyhus, Eirik.Nyhus@dnv.com

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Long distance ferries

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Fjord Line technical director Captain Morten Larsen.

New ferries take LNG further Two long-distance cruise ferries will be delivered this year to Fjord Line in Norway. The vessels signal a major leap in the use of LNG as bunker fuel and, for Fjord Line technical director Captain Morten Larsen, they represent the future of corporate social responsibility. Text: Wendy Laursen, Freelance journalist

Stavangerfjord, the first of Fjord Line’s two new cruise ferries, was delivered in July and will enter service on a route between Denmark and Norway that will cover over 350 nautical miles. The 170m vessel is the largest cruise ferry in the world – and the first Danish-flagged ship – to be powered purely by LNG. With the latest technology Rolls-Royce LNG engines, SOx emissions will be eliminated and NOx and particulate emissions will be dramatically reduced. For Captain

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Larsen, these emission reductions have been the motivation for adopting LNG engines – the vessel can now meet the new, stricter emission requirements that will enter into force in Northern Europe in 2015. The ship’s propulsive power comes from four engines, each with 12 cylinders delivering 5,400kW (7,300hp). CO2 emissions will be reduced by 22 per cent through the use of LNG and fuel saving devices such as an optimised propeller/

rudder system and an exhaust gas heat recovery system. LNG consumption is estimated to be approximately 13,500 tonnes per year, whereas a traditional design could instead have meant consumption of 19,200 tons of fuel oil per year. Captain Larsen expects fuel cost savings from LNG compared to other possible fuel alternatives, but admits it is difficult to predict costs in the long term. Other operational benefits, though, are certain. “We get a cleaner engine room

Long distance ferries

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Stavangerfjord under construction. CO2 emissions will be reduced by 22 per cent through the use fuel saving devices such as an optimised propeller/rudder system.

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The ship’s propulsive power comes from four engines, each with 12 cylinders delivering 5,400kW (7,300hp).

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because there are no oil spills during bunker operations and less sludge. Also, there is a longer overhaul interval for these new engines and lower lubricant consumption,” he says. Stavangerfjord has 306 cabins and can accommodate 1,500 passengers and 600 cars. As well as servicing the growing Norwegian tourism industry, the vessel is anticipated to contribute to increased shipping of cargo by sea, something that will have significant environmental benefits for Norway. “In the past, cargo operators have only been interested in how much transport costs. However, I believe it is becoming more and more common for producers and manufacturers to think about corporate social responsibility and that they will in future want to use the greenest transport possible. We can now offer that.” Fjord Line’s new vessels are classed to DNV’s Gas Fuelled notation and DNV experts from Denmark and Norway have

been involved in the project. DNV has had rules for LNG propulsion in place for over 10 years. “Stavangerfjord and her sister vessel Bergensfjord represent forward thinking by the shipowner,” says DNV’s project sponsor for the newbuilding at Bergen Group Fosen, Kent Åge Solem. DNV is positive about the environmental benefits of LNG and the growing adoption of LNG amongst the world’s commercial fleet. “There are a lot of local ferries in Norway that use LNG and also fish-feed carriers that operate over greater distances along the Norwegian coast. The progression now to long-distance ferries is a step forward, and we hope it will encourage more owners to examine the benefits of LNG.” By 2015, it is expected that as much as 80 per cent of the daily costs of owning and operating a vessel will be fuel. DNV is promoting LNG as it is proving to be environmentally and economically favourable

for shipowners. Based on international energy analysts’ forecasts of oil and gas prices, LNG is expected to remain competitive for the lifetime of new ships entering the market. Currently, there are about 40 LNGfuelled vessels on order worldwide, and about the same in operation, most to DNV class. These new ships include RoPax, RoRo and platform supply vessels in addition to ferries. £

Stavangerfjord during sea trials in July 2013. Stavangerfjord will enter service on a route between Denmark and Norway. LNG consumption is estimated to be approximately 13,500 cubic metres per year.

Claus Graugaard, Claus.Graugaard@dnv.com

Maritime update interferry edition |

US breakthrough on LNG

US breakthrough on LNG Exciting developments in the North American ECA zone as Washington State Ferries, the largest ferry operator in the US, aims for LNG operation.

ÂŠ Thinkstock

Text: Shinta Rotty, DNV

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US breakthrough on LNG

Washington State Ferries With its ten routes, 20 terminals and 23 vessels, Washington State Ferries (WSF) is the largest ferry operator in the United States. It serves eight counties within Washington and the province of British Columbia in Canada. On an annual basis, it transports ten million vehicles and more than 22 million people.

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One of the Issaquah ferries being considered for conversion to LNG. Capacity: 1,200 passengers.

In the coming years, Washington State Ferries (WSF), the largest ferry operator in the US, expects to convert its six existing Issaquah-class ferries to LNG. This development follows in the wake of the first North American order for LNG-fuelled ferries, placed by the Quebec-based ferry operator Société des traversiers du Québec for delivery in 2014. WSF has commissioned a number of studies to better understand the economic, operational and technical aspects related to LNG propulsion and the required infrastructure. In an ongoing project on safety, security and operation planning, the operator has partnered with DNV. “As the biggest ferry operator in the US and the third biggest in the world, WSF can really lead the way for its industry,” says Kenneth Vareide, Director of Maritime Operations, DNV

North America. “We see a clear tipping point when it comes to global interest in LNG‑fuelled ships. Knowing that LNG as a fuel helps reduce emissions and costs, our team of researchers, engineers and business analysts are looking forward to assisting WSF and other companies in managing risks related to their LNG operations.” LNG improves the emission situation both locally and globally. Fuelling vessels with LNG will more or less eliminate particulate matter and sulphur oxide emissions and reduce nitrogen oxide and carbon dioxide emissions by at least 80 per cent and approximately 20 per cent respectively. “WSF burns more than 17 million gallons of ultra-low sulphur diesel each year – and this is the fastest-growing operating expense. LNG has the potential to

Shinta Rotty, Shinta.Yosephine.Rotty@dnv.com

significantly reduce emissions and the cost of fuel,” says David Moseley of the Washington State Department of Transportation. “I’m pleased to have DNV on board to assist WSF in this important look at liquefied natural gas as a possible fuel for the fleet, and I look forward to the next steps that WSF will take with DNV.” The use of LNG as marine fuel has increased dramatically over the past twelve years. Currently, 38 LNG-fuelled ships are in operation, almost all classed by DNV. Today, there are 20 car/passenger ferries operating on LNG, mainly in Norway, and this number is expected to increase in the coming years. Since the late 1990s, DNV has been at the forefront of LNG-fuelled vessel operations and bunkering. The company has taken the leading role in making LNG a safe and viable fuel solution. £

Maritime update interferry edition |

THE WORLD’S FASTEST FERRY IS LNG-FUELLED

29,000 horSepower CoNVerted to A wAter Jet

the world’s fastest high speed ferry Francisco was delivered to dnV class in July 2013. it is to operate between Buenos Aires and montevideo. • top speed: 58.1 knots = 107.6 kilometres per hour. • Powered by: two general electric Lm2500 gas turbines (modified Boeing 747 aircraft engines) which produce a combined 59,000 horsepower. • the 99m vessel can carry nearly 1,000 passengers and 150 cars, and has a 1,100m2 duty-free shop on board. • Owner: Buquebus. yard: inCAt. designer: Revolution design. A total of 179 vessels were delivered to dnV class first half year of 2013. Read more about these vessels on our web page.