I am going to talk about the use of LNG as a fuel in Norway
The useof LNG as a fuel has been a greatsuccess and wewish to expand it further. A wordleadingknowledgeclusteron LNG as a fuel is now in place. The techology is nowmature and LNG is a sage and economictechnology, as I will show youtoday. As wespeakthereare 20 ships in order and we have 10 more in the pipe line. We have alsobeenable to developthenecessaryinfrastructure to make LNG available at sensible prices.
SOx = Sulphur Oxide NOx = Nitrogen Oxide SECA = Sulphur Emission Control Area
Baltic Sea emission 1x SweDan for NOx and 2x SweDan for SOx Containerskip kw3300 dwt 3250 TEU 260 LNG investment USD 3.5 mill. Loss of container TEU capacity of 2%. Loss of revenue of 1.5%. Fuel consumption of 2000 t/yr LNG 40-50 40ft 30cbm 15 ton. HFO 2500 t/år. Energy 40 42 50 (25% more for LNG compared to HFO)LNG price of usd 570/ton = usd 12/mmBTU. Stor scala 6-8/. MGO 800/ton HFO 500/ton. Price projection as shown in chart later. Sea Water Scrubber USD 1 mill. Operation cost of 100-200k/yrSCR: Selective Catalytic Reduction usd 0.5-1.0 mill. ECA rules: LNG is best for environment and most economic NOx red 85-90%, SOx and particles 100%, GHG 15-20%
SECA:Less than 1% sulphur content in 2010 july, Less than 0.1% from Jan 2015. Scrubber
NOx: Jan 2011 20% reduction from Tier I. Another 75% from Jan 2016.
To succeed the Norwegian government and the industry had to tackle these challenges.
Three major pillars contributed to the success::
Single gas engine mechanical driveTwo 50 m3 LNG storage tanksOne to two weeks operation between refuelingExtra building cost for LNG operation – about 1.5 mill Euro (2008)
Efficient distribution is required to bring down the LNG prices. Three elements are required: LNG carriers for shipment, reginal distribution depots and LNG Bunker Vessels to bring the LNG to the ship.
Lng as marine fuel norway
The case for LNGA successfull story in Norway<br /><ul><li>Hans Kristian Haram
December 2010</li></li></ul><li>LNG Success Story<br />LNG knowledge cluster<br />Safe and economic technology<br />20 ships in operation<br />10 more on order<br />LNG distribution infrastructure<br />Saving the environment!<br />
Presentation<br />LNG is the solution for ECA<br />Norwegian LNG policy<br />LNG fuelled fleet<br />LNG technology<br />LNG infrastructure<br />LNG price development<br />Golden opportunity<br />
Meeting ECA* requirements<br />SOx < 0.1% in 2015<br />Expected NOx reduction<br />Expected increased CO2 fees<br />* Emission Control Area<br />The solution is LNG<br />
LNG is most economic<br />5 year pay-back time for LNG compared to alternatives<br />Typical shortsea vessel of 2700 grt, engine of 3300 kW, 5250 sailing hours/yr – Source DnV<br />
No SOx<br />Emission for typical Baltic Sea cargo vessel - Source DnV<br />
Active LNG Policies in Norway<br />Research and development funding<br />LNG required in government tenders<br />NOx fund for LNG investments<br />
Norwegian Policy - LNG<br />Meeting ECA requirements with LNG<br />Develop LNG company cluster<br />International cooperation<br />Chairman Council of Baltic Sea<br />Major conference on use of LNG in Baltic next year<br />
Light weight</li></li></ul><li>Minimal loss of cargo space<br />Development of a new LNG storage system (IMO A tank)<br />
State of the Art<br />New hull design<br />LNG powered<br />Increased dwt<br />50% lower CO2 per tonne<br />No SOx, limited NOx<br />No particles<br />75% lower CO2 emission compared to truck<br />