02. Marine Market Outlook_Ole Grøne

© MAN Diesel & Turbo < 1 >

MAN Diesel Course BusanPu-Kyong National University

© MAN Diesel & Turbo <3>

up to 80 080 kW

MAN Diesel & Turbo Copenhagen, Denmark

© MAN Diesel & Turbo

MAN Diesel & Turbo, CopenhagenLow Speed Engine business unit

4

Thomas Knudsen

L

Low Speed Engines

Klaus EngbergLL

Licensing

Ole GrøneLS

Promotion & Sales

Søren H. JensenLD

Research & Development

Mikael C. Jensen

LEEngineering


MAN B&W 7S80ME-C9

3337700.2011.06.01 (LS/OG)

© MAN Diesel & Turbo 2011.03.30

Four-Stroke Small Bore “Holeby GenSet” Power Range

Classic EnginesL23/30H 650 – 1,040 kWL28/32H 1,050 – 1,890 kWV28/32S 2,700 – 4,050 kW

Newer EnginesL16/24 500 – 990 kWL21/31 1,000 – 1,980 kWL27/38 1,500 – 2,970 kW

< 7 >


MAN Diesel & Turbo in World Trade

3337435.2010.10.14 (LS/OG)

50% of World Trade is powered byMAN Diesel & Turbo Engines!

< 8 >


MDT LicenseesPresent where Ships are Built

< 9 >

PolandCegielski 1959

RussiaBryansk 1959

JapanMitsui 1926 Makita 1981 Diesel United 2008Hitachi 1951

Incl. IMEXKawasaki 1911

Incl. Hanshin

CroatiaUljanik 1954Split 1967

ChinaHHM 1980DMD 1980YMD 1989CMD 2007STX 2007JAD 2007ZJCME 2008ZHD 2008RPM 2008YungPu 2008

VietnamVinashin 2004

KoreaHyundai 1976Doosan 1983STX 1984

33366942.2010.05.31 (OG/LS)


-30

-25

-20

-15

-10

-5

0

5

10

15

20

1980 1985 1990 1995 2000 2005 2010 2012

Crude oil Oil product total bulk trade Other

Pct change per year

*) *)incl. Containerrised commodities

Ton Miles

< 10 >

Historical Growth Rateof Seaborne Transport

33366937.2010.10.11 (OG/LS)

Generally increasing year by year

Need for more ships


Reported Order Book by Licensees

L/74237-3.75/2011.05.02 (LB/OG)


0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Contracting Deliveries Scrapping/del/con

ShipsPrediction May 2011Actual

All Vessel TypesContracting, Deliveries and Scrapping

< 1233366944.2010.09.16 (OG/LS)

Deliveries will presently behigher than demand


0

5.000

10.000

15.000

20.000

25.000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Tank VLCC Bulkers General Cargo Container vessels LNGC LPGC OTHERS Speculative ordering *)

Deliveries of Shipswith Low Speed Propulsion Engines

< 13>33366946.2010.10.12 (OG/LS)

PredictionActual

Low SpeedGW


Economical Prediction: Seaborne Transport will continue to grow Fuel Cost will increase ECA’s will be expanded

Technical Prediction: Ship will be more Technical Advanced for: Higher Fuel Efficiency and Fuel Flexibility Increased Reliability Lower Emissions Crew Skill Matching

< 14 >

Seaborne Transport Outlook


This meeting could be about:Reducing NOx

Reducing SOx

Reducing CO2

Fuel flexibility

Tier III methods

The ME-GI is the vehicle for this

< 15 >

Factors Driving Development


Marine industry ChallengeMeeting Tier III. SCR and EGR installation

17

NOx reductionwith EGR (ExhaustGas Recirculation)

NOx reductionwith SCR (SelectiveCatalyst Reduction)


IMO NOx Tier IIIExhaust Gas Recirculation (EGR)


IMO NOx Tier IIIExhaust Gas Recirculation (EGR)


1 SCR reactor

2 Turbocharger bypass

3 Temperature sensor after SCR

4 Large motors forauxiliary blowers

5 Urea injector

6 SCR bypass

7 Temperature sensorbefore SCR

8 Additional flange in exhaustgas receiver

32

1

5

6

78

4

Deck

6S35MC

21

IMO NOx Tier IIISCR Selective Catalytic Reduction


SCR on low Speed EnginesHitachi, Ariake, Japan

< 22 >

6S46MC-C-SCRon testbed

© MAN Diesel & Turbo3336745.2010.04.27 (NK/LDF)

SO2 Removal with Wet ScrubberM/V Tor Ficaria, 20 MW 9L60MC-C

< 23 >


Scrubber

Venturi

3336755.2010.04.27 (NK/LDF)

Scrubber Installation for M/V Tor Ficaria 9L60MC-C 20 MW

< 24 >


Reducing Green House Gas

3337432.2010.10.14 (OG/LS)

CO2 is one of several GHG’s (Green House Gasses) What can be done to reduce:

Improve Engine and Propulsion Efficiency

Apply Waste Heat Recovery

Use gas like LNG and LPG as Fuel

Introduce Bio Fuels

Improve other influencing factors like Ship Design

CO2 from shipping is about 3-5% of all, but increasingRules to control are being developed

EEDI now a factor in play


Driving DevelopmentFuel Consumption / CO2 Emission

< 26 >33366967.2010.10.11 (OG/LS)

SFOC continuously in focus. Low SFOC = low CO2

SFOC lately reduced taking advantage of updatedperformance parameters with MK 8/9.2 engine

More emphasis on fuel consumption in service at relevant load

Introducing part load and low load tuning

Introducing longer stroke engines.

Advantage of ME engines at any load


0

10

20

30

40

50

60

70

80

90

100

2005 2006 2007 2008 2009 2010 2011(Jan-Apr)

2012* 2013*

MC ME

27

Updated end May2011 Ships>=2,000 DWT/GT Source: IHS Fairplay 27

Contracting MAN B&W Diesel EnginesDivided on Engine Models

% GW


ME-GI Dual Fuel EngineDiesel Research Centre, Copenhagen


12K80MC-GI-S – Chiba Power PlantThe 10 Years GI Experience

1994 - 2003

Mitsui

GI = High Pressure Gas Injection


ME-GI Dual Fuel EngineFrom Gas Tank to Engine

ME-GI Engine

300 bar 45oC

Fuel Gas Supply System


Cryostar LNG Pump System

Hamworthy Gas SystemLNG Tank & Pump System

TGELNG Tank & Pump System

DSMELNG Tank & Pump System

Burckhardt CompressionLaby-GI Compressor

HHILNG Tank & Pump System

ME-GI6 Different Gas Supply Systems


ME-GI Dual Fuel EngineFuel Gas Supply System of DSME


ME-GI: Gas and Pilot Oil Injection

Background

Dual fuel experience since 1994

Well-proven ME technology

New components

Double wall gas pipes

Gas Injections valves

Large volume accumulators

ELGI valves

Control and safety system

Modified components

Cylinder cover

Exhaust receiver

4T50ME-GI was presented

18th of May 2011

< 34 >


ME-GI Dual Fuel EngineDesign for the Research Engine


ME-GI Dual Fuel EngineOperational Advantages


ME-GI and IMO NOx Tier IIIExhaust Gas Recirculation (EGR)

ME-GI + EGR

Tier III in Gas Mode + Tier III in Fuel Mode

Full Fuel Flexibility


Driving engine development: SFOC reduction

SFOC continuously in focusLow SFOC equivalent to Low CO2ME (-GI) superior to MC at all loads

SFOC reduction of 1.0 g/kWh1 g/kWh x 10.000 kW x 6.000 h/year x 500 USD/ton =

30.000 USD saving per year

< 40 >

Envrionmental Concerns

The ME-GI has same efficiency as ME and ME-C


ME-GI Application for new vessels

Twin screw or single screw?

ME-GI is perfectly safe for single screw applications Twin or single screw to be decided by hull considerations, only


ME-GI Engine RetrofitCandidate Vessel Types

400,000 tdw B/C by DSME main engine 7S80ME-C8

Q-Flex LNG carrier with2 x 6S70ME-C

Also VLCC’s and Containerships will be Candidates


With ME-GI cutting edge technologyUse gas and avoid poor quality HFO

It’s safeIt’s cost effective

If ordered nowME-GI is available for ship deliveriesfrom mid 2013 and for retrofit from end 2012

< 43 >

ME-GI Dual Fuel EngineAdvantage and Availability


Reduction of CO2 on ShipsEnergy Efficiency Design Index, EEDI

< 44>

IMO instruments to reduce GHG on shipping Technical measures Mandatory New shipsOperational measures Voluntary All shipsEconomical measures Mandatory All ships

EEDI = CO2 emission / Benefit of Ship

CO2 emission CO2 emission from propulsion and accommodation

Benefit Transported cargo x speed

Unit Gram CO2 / Ton / Nautical Mile

3337437.2010.10.15 (LWB/LSP)

CH4 reduce CO2 compared to HFO


MAN Diesel & TurboWaste Heat Recovery

Steam Turbine Gearbox Generator Gearbox Power Turbine

Increased Efficiency

Reduce CO2

WHRS Marine Generator Unit


Waste Heat Recovery Systems

Power Turbine Stand Alone

PTG – Power Turbine Generator

Steam Turbine Stand Alone

STG – Steam turbine generator

Options for exhaust Gas Utilisation


Long Stroke enginesLayout Evolution Container Ships

3337689.2011.05.12 (OG/LS)

8,000 – 14,000 teu ships

4,500 – 5,000 teu ships

Longer stroke – Lower RPM – Larger, more efficient propeller – 4-8% savings

© MAN Diesel & Turbo 48

Long Stroke Engines in Cont.shipsS90ME-C9.2 and S80ME-C8.2

Engine Type: 9S90ME-C9.2 9K98ME-C7.1

Engine MCR 52290kW @ 84rpm 54190kW @104rpm

Power Requirement for Same Speed [kW] 51400* 54190

SFOC [g/kWh] 166,5 174

Daily Consumption [ton/24h] 205 226

Engine Type: 6S80ME-C8.2

Engine MCR 27000kW@84rpm

SFOC [g/kWh] 168

Daily Consumption [ton/24h] 109

8-10,000 TEU Container Vessel:

4,500 TEU Container Vessel

*Large propeller diameter


Layout diagrams of new Green series of G-ME enginesCompared with existing Super long stroke S-ME engines

Source: LEE4/BGJ

Longer Stroke

Lower rpm

Larger Propeller

Higher Efficiency

Fuel and CO2 Savings

< 50

G-ME Engine SeriesIncreased Stroke to Bore ratio

© MAN Diesel & Turbo 51

Engine RPM Proposed Power/Cyl.

Expected Final drawing delivery

Expected FirstEngine delivery

12S90ME-C9.2 84 5,810 Q4 2011 *

9S90ME-C9.2 84 5,810 Q1 2012 *

G80ME-C9.2 68 4,450 Q2 2012 *

G70ME-C9.2 78 3,420 Q4 2012 *

G60ME-C9.2 91 2,510 Q2 2013 *

G50ME-B9.2 100 1,720 Q2 2012 *

Expected Final drawing delivery is subject to order* Expected Engine Delivery varies depending on the relevant licensees orderbook,

but can normally be obtained 9 – 12 months after Final drawing delivery

New EnginesDrawing delivery Progress


The largest power-rpm range ever.

Two-stroke Engine Programme2011 3rd edition


MAN Diesel Course BusanPu-Kyong National University

< 58 >

Thank you very muchfor your attention

Documents

02. Marine Market Outlook_Ole Grøne