© Wärtsilä
15th Annual
Caribbean Energy
Enabling Project Development – Reforms, Reality Checks, Fuel and Renewable Choices, Grid Firming
Raúl Carral, Ph.D.
Business Development, Mexico, Central America
& The Spanish-Speaking Caribbean
January 29-30, 2015
El San Juan Resort & Casino
San Juan, Puerto Rico
Disclaimer
This document is provided for informational purposes only and may not be incorporated into
any agreement. The information and conclusions in this document are based upon
calculations (including software built-in assumptions), observations, assumptions, publicly
available competitor information, and other information obtained by Wärtsilä or provided to
Wärtsilä by its customers, prospective customers or other third parties (the ”information”)
and is not intended to substitute independent evaluation. No representation or warranty of
any kind is made in respect of any such information. Wärtsilä expressly disclaims any
responsibility for, and does not guarantee, the correctness or the completeness of the
information. The calculations and assumptions included in the information do not necessarily
take into account all the factors that could be relevant. Nothing in this document shall be
construed as a guarantee or warranty of the performance of any Wärtsilä equipment or
installation or the savings or other benefits that could be achieved by using Wärtsilä
technology, equipment or installations instead of any or other technology.
2 © Wärtsilä 29 - January - 2015
Services Power
Plants
Ship
Power
Wärtsilä in brief
Business Areas
• Founded in 1834
• Headquarters in Helsinki, Finland
• Sales USD 6.2 bn (EUR 4.7 bn) in 2013
• Presence in 170 locations in 69 countries
Ship Power 28%
Power Plants 32%
Service 40%
Sales by Business Area
What do we bring to the market?
Fuel
Flexibility Efficiency
Environmental
Solutions
• 2 factories:Trieste(IT) & Vaasa (FI)
• +4300 MW of production capacity
• 4% sales = R&D budget (2013)
• Personnel 18,663 end of 2013
Asia 43%
Europe 25%
Americas 21%
Others 11%
Sales by Region
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R&D Investments in Wärtsilä
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 213
Perc
en
tag
e o
f S
ale
s
Mil
lio
n E
uro
s
Investment
Percentage
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Reference prices per kWh in The Caribbean
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$0.20 $0.20 $0.22
$0.32
$0.36 $0.38 $0.38
$0.40
$0.43 $0.43
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
EDEESTE (República
Dominicana)
EDENORTE (República
Dominicana)
EDESUR (República
Dominicana)
BLPC (Barbados)
JPS (Jamaica)
LULELEC (Santa Lucía)
EDH (Haiti) GRENLEC (Granada)
APUA (Antigua y Barbuda)
DOMLEC (Dominica)
Dls
US
/ k
Wh
Source: “Pre-Feasibility Study of the Potential Market for Natural Gas as a Fuel for Power Generation in The Caribbean”; basaed on annual reports
from BLPC, JPS, LUCELEC, GRENLEC, DOMLEC, data from EDH, publications by APUA & Corporación Dominicana
de Empresas Eléctricas Estatales (CDEEE), EDEESTE, EDENORTE, & EDESUR
Terminology What do we mean by Natural Gas Liquids ?
Source: The US Energy Information Administration - EIA
6 © Wärtsilä 29 - January - 2015
7
Shale Gas from the US: Changing the
game for LNG, Ethane and other NGLs
7 © Wärtsilä 29 - January - 2015
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Ethane - LEG DES Propane DES Henry Hub - LNG DES HFO NY FOB 3% - DES HFO NY FOB 1% - DES Brent
17 DEC 14
US Fuel Prices 1980 – 2014.
Based on estimated Ex-Ship Delivery – Caribbean (excluding regas)
Evolution of LEG, LPG, NG-HH-Brent price
Source: IEA, estimates on Ex-Ship Delivery to The Caribbean
8 © Wärtsilä 29 - January - 2015
Global LNG Market 2013 & Outlook LNG liquefaction and export
LNG exporting countries (17 countries)
Will become LNG exporting country
290.7 MTPA Global liquefaction capacity
at the end of 2013 (282.3 MTPA 2012)
Final Investment Decision Status
117 MTPA
FEED Status
260 MTPA
Papua New Guinea
will become country
number 18 during 2014
Potential to become a LNG export country
Re-exporting countries (Largest amount of LNG from Spain & Belgium 2013)
Qatar is still the
largest global
LNG supplier
77.2 MTPA
Spain re-exported LNG
43 % of total re-export volume
Source: IHS, USDOE, IGU
9 © Wärtsilä 29 - January - 2015
Global LNG Market 2013 LNG import and distribution
LNG exporting countries (17 countries)
LNG Importing countries
236.8 MT Global LNG trade during 2013
LNG is today
10 % (of the global gas consumption)
Total of 94 receiving terminals
80 On-shore & 15 FSRU
688 MTPA Global LNG receiving capacity
Japan
Korea
Taiwan
Source: IHS, USDOE, IGU EXPORT / IMPORT (existing route)
EXPORT / IMPORT (future routes ?)
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Global LPG Market 2012 LPG production and export
260 MTPA Global LPG production 2012
WORLDWIDE 60 % of LPG from Gas Processing
40 % from crude refining process
LPG production is increasing
in relation to Shale Oil & Gas
production
USA &
Canada about 24 % of
total world
production Middle
East about 20 %
of total
world
production
Asia about 15
% of total
world
production
11 © Wärtsilä 29 - January - 2015
Regional LEG (Liquid Ethane Gas)
Market 2013 & Outlook LEG production and export
LEG exporting countries
USA Ethane export terminal
LEG production is
increasing in relation
to Shale Oil & Gas
production
Source: IHS, USDOE, IGU
?
12 © Wärtsilä 29 - January - 2015
Multifuel solutions for power generation
We offer solutions for liquid, NGL and
renewable fuels
Multifuel allows to generate power
with the cheapest fuels at a given time
Multi-fuel solutions which can flexibly change between fuels (liquid and gas) on-line
Hedge for future, solutions that can easily be upgraded from liquid to gas
13 © Wärtsilä 29 - January - 2015
Different Solutions for different fuels
HFO LNG LEG LPG
W34SG engines 1)
W32/34/50 DF
engines 2)
W32/46GD engines 3)
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Multi Fuel Power Plant Technology
LNG Carrier LNG storage tank
Power Plant
Perfromance of the
plant will be different
depending on fuel LEG Carrier
Re-gasification
LEG storage tank Re-gasification
HFO Storage
Tank
LFO Storage
Tank
HFO Tankerr
15 © Wärtsilä 29 - January - 2015
More diversified fuels, efficient and flexible power • more choices for power generation – HFO, Natural Gas, Ethane, LPG
• riding the curve of what is better and more economical
• high operating variability and ambient conditions while maintaining high efficiency
• reliable, distributed generation wherever is needed
• selected use of combined heat and power (CHP) or tri-generation at up to 90% efficiency
• fast delivery of projects
Smart Power Generation is now critical for reliable, affordable and sustainable operation
Reliable Sustainable
Affordable
Smart
Power
System
Enables
What is Smart Power Generation?
Fuel
Flexibility Operational
Flexibility
Energy
Efficiency
Smart
Power
Generation
16 © Wärtsilä 29 - January - 2015
Examples multifuel power plants
Quisqueya I & II
430 MW Flexicycle™
Estrella del Mar II
105 MW Flexicycle™
17 © Wärtsilä 29 - January - 2015
Los Orígenes,
3 x 20V34DF +
2 x 18V50DF
25 + 34 MW, Multi-Fuel
HFO/Gas/LFO
LNG received by trucks
Gasification using cooling water
Heat exchangers
Examples multifuel power plants
18 © Wärtsilä 29 - January - 2015
Examples multifuel power plants
IPP3 - 38 x 18V50DF 632 MW
Amman Asia Electric Power, is a special purpose independent power producer, in
which Wärtsilä has a minority interest. The other owners of the company are
Korea Electric Power Corporation of South Korea (KEPCO) and Mitsubishi
Corporation of Japan. The project company will supply electricity to the National
Electric Power Company of Jordan (NEPCO).
19 © Wärtsilä 29 - January - 2015
© Wärtsilä
In summary
1. The trend in The Caribbean is to have a wider variety of fuels,
including HFO & NGLs; all of them can be used for power
generation provided their availability and right price
2. Multi-Fuel Wartsila technology enables HFO & NGL - readiness
starting on day 1
3. Wärtsilä has the capabilities to provide our HFO + small scale
and medium scale NGL solutions while integrating power
generation as a turnkey supplier
THANK YOU!
Smart Power Generation Raúl Carral
Business Development Manager, Power Plants
Houston, TX
+1 (281) 233-6200
21 © Wärtsilä 29 - January - 2015