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Page 1: METHANOL AS A MARINE FUEL - Platts · PDF file  chris chatterton. coo. methanol as a marine fuel. platts bunkering & storage asia 2017. june 29 – 30. th, 2017 - singapore

WWW.METHANOL.ORG

CHRIS CHATTERTONCOO

METHANOL AS A MARINE FUEL

PLATTS BUNKERING & STORAGE ASIA 2017JUNE 29 – 30TH, 2017 - SINGAPORE

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About MI

What is Methanol?

Methanol as a Marine Fuel

Case Study: Stena Germanica

Case Study: GreenPilot

Summary

Contents

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ABOUT MI01

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• The Methanol Institute (MI) formed in 1989 to represent US methanol producers in Washington

Singapore | Washington | Brussels | Beijing

HISTORY

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MEMBERS

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MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА• China Nitrogen Fertilizer Industry Association

• Asian Clean Fuels Association

• Chinese Association of Alcohol & Clean Ether Fuels & Automobiles (CAAEFA)

• Gulf Petrochemicals and Chemicals Association (GPCA)

• International DME Association (IDA)

• International Methanol Producers & Consumers Association (IMPCA)

• Peking University Center for New Global Energy Strategy Studies

• Lloyd’s Register

• International Bunker Industry Association

MI STRATEGIC PARTNERS

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WHAT IS METHANOL?02

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C O H

H

H

H

SIMPLEST MEMBER OF ALCOHOLS GROUP

An efficient, universal, future-proof, energy carrier

that can be sustainably produced in large quantities

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ESSENTIAL CHEMICAL BUILDING BLOCK

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ABUNDANT SUPPLY WITH DIVERSE MARKETS

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MSF ВЕДЕТ СВОЮ ДЕЯТЕЛЬНОСТЬ В БОЛЕЕ ЧЕМ 60 СТРАНАХ МИРА

• China accounts for over 50% of the world’s methanol production - mainly from coal, and consumption in fuel and energy applications

• Methanol production occurs mainly in gas-advantaged countries

• Significant new US capacity expected in the coming years

WHERE IS METHANOL PRODUCED?

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PRACTICAL LIQUID FUEL

Page 13: METHANOL AS A MARINE FUEL - Platts · PDF file  chris chatterton. coo. methanol as a marine fuel. platts bunkering & storage asia 2017. june 29 – 30. th, 2017 - singapore

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METHANOL AS A MARINE FUEL03

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MARINE FUEL IN TRANSITION

HFO

MGO

LNG

HFO MGO LNGSources: Wood McKenzie

170 mln mtpa

30 mln mtpa

< 1 mln mtpa

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EMISSIONS

Eyring et al. J Geophys Res 110 (2005) - Presented by Erik Fridell

73%

11%

15% Fuel

Road trafficAviationShipping

74%

12%

15%CO2

54%

5%

42%

NOx

27%1%

73%

SOx

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$562 bln/yr in Global Health Related Costs [1] 50% of Particulates in air [2]

3.7 mln/yr premature deaths globally[3] $1 tln - $3 tln Coping Cost [4] (1.5% of GDP in 2014)

REGULATION DRIVERS

Sources: Wartsila, [1] IIASA, [2] NOAA, [3]WHO 2014, [4] IPCC

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EMISSION CONTROL AREAS (ECAs)

Sources: IMO

North America• SOx established 2009• Enforced since 2012• New keels from 2016

NOx compliant

Europe• SOx established 2005• Enforced since 2006• 2015: SOx < 0.1%

China• 2015: HK ECZ

established for OGV• 2016: PRD ECZ• 2019: China-wide ECZ

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Stena / Effship Project / example for 4-stroke engines)

ENVIRONMENTAL SOLUTION

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FUEL CONSUMPTION BY MAIN CATEGORIES

Fuel Consumption, million tons/year

Sources: Smith et al, 2014; Buhaug et al, 2009

Note: Coastwise shipping is mainly ships <15,000 dwt, ro-pax, cruise, service and fishing

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GLOBAL PORT TERMINAL AVAILABILITY

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MARINE EXPERIENCE

• March 2015: Stena Germanica – Wärtsilä methanol-fueled marine engine

• Apr 2016: Methanex’s Waterfront Shipping – dual-fuel MAN methanol/diesel engines

• Lloyd’s Register MethaShip project

• LeanShips dual-fuel demo

• Oct 2015: Billion Miles Singapore develops small-marine applications

• Jun 2016: ScandiNAOS Green Pilot Boat conversion

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CASE STUDY:STENA GERMANICA04

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THE GERMANICA – BEFORE

Source: Stena

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THE GERMANICA – AFTER

Source: Stena

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GERMANICA – FUEL PUMPS

Source: Stena

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GERMANICA – BEFORE & AFTER (COMMON RAIL)

Source: Stena

Page 27: METHANOL AS A MARINE FUEL - Platts · PDF file  chris chatterton. coo. methanol as a marine fuel. platts bunkering & storage asia 2017. june 29 – 30. th, 2017 - singapore

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THE GERMANICA – RESULTS

Sources: Stena

• NOx 3-5g/kWh (Low Tier II, no major conversion)

• CO <1g/kWh

• PM only from MGO pilot fuel (FSN ~ 0.1)

• Sox only from MGO pilot fuel (99% reduction)

• Formaldehyde emissions (below TA-luft)

• No formic acid detected in exhaust gas

• No reduction in output and load response unchanged, full fuel redundancy

• Higher efficiency (testing showed lower fuel consumption in methanol mode)

Methanol or diesel can be selected or re-selected as primary fuelquickly and reliably, without the need to stop the engines andwithout loss in engine speed or output

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BUNKERING THE GERMANICA

Sources: Haan Paa, Stena

• Self-contained eye/body wash station

• Gas leak detection

• Flame detection

• Foam fire extinguishing system

• Coffer dam

• No-drip connections

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BUNKERING THE GERMANICA – COFFER DAMS

Sources: Haan Paa, Stena

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BUNKERING THE GERMANICA – FIRE FIGHTING

Sources: Haan Paa, Stena

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BUNKERING THE GERMANICA – FIRE FIGHTING

Sources: Haan Paa, Stena

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BUNKERING THE GERMANICA – NO SPILL / BREAKERS

Sources: Haan Paa, Stena

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BUNKERING THE GERMANICA – PUMP ROOM

Sources: Haan Paa, Stena

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BUNKERING THE GERMANICA – SHIP SIDE

Sources: Haan Paa, Stena

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CASE STUDY:GREENPILOT05

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GREENPILOT

Sources: ScandiNAOS, FiT

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GREENPILOT – OVERVIEW

Sources: ScandiNAOS, FiT

o Funding from Methanol Institute and Swedish Maritime Administration, June, 2016

o 6-cyl M100 converted NG engine in rescue/pilot vessel

o Sea trials started on WeChai engine in May, 2017

o Both the vessel and a second, converted Scania engine were exhibited at Nor-shipping

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GREENPILOT – INSTALLED ENGINE

Sources: ScandiNAOS, FiT

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GREENPILOT – FUEL PUMPS & TANKS

Sources: ScandiNAOS, FiT

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GREENPILOT – NITROGEN BLANKETING

Sources: ScandiNAOS, FiT

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SUMMARY

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NO SILVER BULLET1. HFO / MGO + After Treatment:

a. Burn low-sulfur MGO at cost premiumb. Add after treatment technology

2. SOx & NOx reduction:a. Currently, no diesel fuels will meet NOx regulations on their

ownb. Selective catalytic reduction (SCR)c. Exhaust gas recirculation (EGR)

3. Alternative Fuels:a. Biofuels, methanol, LPGb. Dual-fuel with diesel/LNG or diesel/methanol

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• Capital costs for ship conversion less than LNG and similar to after treatment technologies

• Methanol is already easily and cost effectively stored at any port in the world

• Methanol is one of the top 5 seaborne chemical commodities accounting for 35% of the world seaborne chemical and vegoil trade

• Major engine OEMs confident engines can meet SOx and NOx requirements

BENEFITS OF METHANOL AS A MARINE FUEL

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CONCLUSIONS1. Safe

• Biodegradable• Water soluble• Washed off with soap/water• Harder to ignite than petrol, burns with 1/8 the heat

2. Economical• Economically competitive and costs are falling with experience• Produced from variety of feed stocks – future proof• Simple infrastructure & handling

3. Proven• 80 MMT worldwide demand 2016• 160,000 vehicles in China using methanol fuel | 200 mln km• Can be produced from renewable sources• Stena Germanica, GreenPilot, 7 Methanex new-build tankers

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THANK YOU

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MSF MAINTAINS A PRESENCE IN OVER 60 COUNTRIES

MANY OF THESE COUNTRIES MI HAS TARGETED FOR METHANOL POISONING OUTREACH PROGRAMS, MSF HAS EXISTING OPERATIONS, TO INCLUDE:

• F• F• F• F• F• F• F• F• F• F

CONTACTS

01

02

03

04

• G R E G D O L [email protected]

• C H R I S C H AT T E R T O [email protected]

• D O M L AV I G N EDirector of Government [email protected]

• L AR RY N AV I N

Senior Manager External [email protected]

05

06

07

• E E L C O D E C K E RChief EU [email protected]

• K AI Z H AOChief China Representative

[email protected]

• S H E E V A N O S H I R V A N

Executive [email protected]