Clean Baltic Sea shipping

GL – Your competitive edge Take the lead through innovation

The “zero-emission perspective” Dr. Pierre C. Sames Senior Vice President Rules & Research, Ralf Plump PTP lead “Environment”;

Fridtjof Rohde, Senior Consultant, FutureShip GmbH

A vision for a zero emission container feeder vessel | CLEAN BALTIC SEA SHIPPING MIDTERM

CONFERENCE 2012-09-19, Riga / Latvia | No. 2

Contents

The challenges

One solution

• the vessel

• Hydrogen as fuel

• cost-benefit analysis

• LH2 or CH2

• a ferry concept

Conclusions



The challenges and our motivation

With expected fleet growth to meet world

transport demand for the next decades,

CO2-emissions from shipping will

increase.

Even if known and available measures

will be implemented, shipping will likely

not meet the discussed emission

targets.

Fuel prices will continue to increase with

future oil reserves being more remote

and requiring more technology.

Time to consider novel solutions to

enable future zero-emission shipping.

GL Rules & Research looks at novel

technologies beyond current

applications.

Emission trajectory for international shipping

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1990 2000 2010 2020 2030 2040 2050

mill

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nn

es C

O2

recorded scenario A1B "recent" data emission targets

- 20% from 2005

- 40% from 2005

-40 %

sources: MEPC 59/INF.10 and MEPC 60/WP.5, graph by PCS/GL

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20082010

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2036

US

D /

ton

IFO 380 MGO premium CO2 surcharge

A CO2 emission trading may start in 2013. Costs

are based on IPCC upper estimates.

Price of HFO will continue to rise in the long run (2.5% pa)

In 2020, SOx-limits for fuel apply globally. MGO quality

demands a premium (at least 50% of HFO price).

Source: GL research. The analysis excludes inflation effects.



One solution – Hydrogen as fuel

• Fuel cell systems using Hydrogen

can deliver a zero-emission power

generation.

• Our new container feeder vessel

has fuel cells and special tanks to

hold liquid Hydrogen for a typical

roundtrip in Northern Europe.

• The vessel stops every ten days

at an offshore station for

bunkering.

• The offshore station produces

liquid Hydrogen by using surplus

wind energy. The Hydrogen is

stored for short periods.



The Hydrogen-fuelled container feeder vessel

The new container feeder vessel targets Northern European trades.

• full open-top 1000 TEU intake with 150 reefer slots, 700 TEU @14t

• service speed of 15 knots

• two podded propulsors and thruster for manoeuvrability and redundancy

The vessel will have zero CO2, SOx, NOx and PM emissions.



The Hydrogen-fuelled container feeder vessel

The new container feeder vessel runs on liquid Hydrogen.

• two power generation rooms, forward and aft

• 5 MW fuel cell systems, with 3 MWh battery systems to provide peak power

• multiple type C tanks with 920 m3 to hold liquid Hydrogen for a ten-day roundtrip

• bunkering time estimated at 3 hours with two bunker stations.

The liquid Hydrogen is produced on-site of a offshore wind-energy park.



Liquid Hydrogen offshore production potential

In 2020, that about 3GW is assumed being

delivered from offshore wind energy parks in

the German Exclusive Economic Zone (EEZ).

Up to 30% of the generated power may not be

put into the grid and could be available for

Hydrogen production (up to 3600 GWh/a).

A 500 MW wind farm may thus produce up to

10.000 t liquid Hydrogen (LH2) using its surplus

power. This could serve 3 feeder vessels.

An intermediate storage of LH2 for up to 10

days requires insulated tanks of up to 5000 m3.

Costs for LH2 are based on invest for

production, liquefaction and storage.

source: BSH,

http://www.bsh.de/en/Marine_uses/Industry/CONTIS_maps/index.jsp

Offshore wind farms in German

EEZ of North Sea



Could liquid Hydrogen become commercially attractive?

incl. 2.5% price increase pa, demand increase from 2015 to 2020, CO2 surcharges from 20$/t CO2 to 100 $/t CO2 from 2015 to 2025

Historic and predicted fuel prices

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2010 $

/mm

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LNG Zeebrugge (w/o distribution) MGO Rotterdam (delivered)

LH2 North Sea (lower estimate) LH2 North Sea (upper estimate)

May 2011

sources: GL Research, bunkerworld, apxgroup, x-rates, LBST wind hydrogen study



Container feeder vessel –

installed power and liquid Hydrogen tank capacities

At design draft of 8m, the vessel sails

with 15 knots running on 4000 kW.

With installed power of 5000 kW and an

equivalent full ten-day operation, the

amount of Hydrogen needed is 920 m3

with the fuel cell system operating at

55% efficiency.

Based on the study for an LNG-fuelled

container feeder vessel in 2009, we

estimate that around 6% of the TEU

capacity needs to be sacrificed for the

Hydrogen fuel tanks.

installed power 5000 kW

range 10 days

required energy 1,200,000 kWh

4,320,000 MJ

liquid hydrogen

spec energy 120 MJ/kg

density 71 kg/m3

MCFC efficiency 0,55

fuel mass 65 tons

fuel volume 920 m3



Investment for LH2-fuelled container feeder vessel

The LH2-fuelled container vessel has

significant higher investment costs than a

traditional design of similar size:

• LH2-fuelled: 35 m$

• HFO-fuelled: 22 m$

The additional invest is mainly for the type-

C tanks (37%), the fuel cell systems (57%)

and the battery system (6%).

Data from the 2009 LNG-fuelled feeder

study and from the GL market study on fuel

cell systems were used as principal source

to estimate the costs.

specific fuel cell system costs (€/kW)



Sample cost benefit analysis

MGO-fuelled LH2-fuelled

Fuel consumption 19,38 5,56 t/day

Fuel price 2020 * 40 65 $/mmBTU

1728 7800 $/t

Equiv. full op days 270 270 days/year

Annual fuel costs 9,04 11,72 m$/year

Other costs 1,43 1,43 m$/year

Total capital required 25,11 39,51 m$

Lifetime 25 25 years

Interest 5,00% 5,00%

Annuity 1,78 2,80 m$/year

Total costs 12,25 15,95 m$/year *) the upper bound of LH2 cost was used for 2020



Annual cost for container feeder vessel

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$/t MGO

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MGO-fuelled LH2-fuelled (lower estimate) LH2-fuelled (upper estimate)

Will a LH2-fuelled container feeder vessel be competitive?

MGO historic

high: 1319 $/t,

June 2008

Annual cost include capital costs, other operating costs and fuel costs.

MGO average for

2000: 252 $/t

MGO today:

978 $/t



LH2 or CH2 / Bunkering at ports (1/2)

Liquid Hydrogen: from Windpower to Bunker Station

4591 MWh wind energy

230MWh grid losses

1561MWh electrolyses

1722MWh liquefaction

46MWh transport

1033MWh LH2

100%

5%

34%

37,5%

1% 22,5%



LH2 or CH2 / Bunkering at ports (2/2)

Gaseous Hydrogen: from Windpower to Bunker Station

3083MWh wind energy

154MWh grid losses

1048MWh electrolyses

308MWh compression

540MWh transport

1033MWh GH2

34%

10%

17,5%

33,5%

100%

5%



Design concept for a zero-emission ferry

battery

system fuel cell system

H2-tanks

Flettner rotors

podded propulsors source: Scandlines 2012



Conclusions

A vision for a zero-emission container

feeder vessel was created. The vessel

will run on liquid Hydrogen produced

by offshore wind farms’ surplus

energy.

The LH2-fuelled container feeder

vessel may become economically

attractive when MGO prices increase

beyond 2.000 $/t.

A design concept for a zero-emission

ferry was developed with Scandlines.

GL expects first dedicated zero-

emission ships on short-sea routes.

Thank you for your kind attention.

[email protected]

[email protected]

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