FO Conversions 08

Considerations and actions to be taken for engine room conversions from MDO or MGO operation to HFO operation LF

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Eefting Engineering

Eefting Engineering B.V.


General In this paper information is given to review the possibilities of converting ocean going vessels form MDO or MGO to HFO operation. Fuel oil prices have doubled the last few years and the price difference between MDO and HFO (180 or 380) has even tripled. Because more and more new buildings , especially in the range of 3.000 -6.000 GT are now delivered ready for Heavy Fuel Oil operation, existing vessels running on MDO will become less competitive or in the worst case might not be profitable any more. Further more an increasing interest is shown by owners of fishing vessels to convert their vessels to HFO operation. It seems that for a lot of fisherman heavy fuel oil operation is not only more profitable then MDO operation, but even a matter of survival. In this paper you will find a calculation on savings for a specific 2.000 kW installation, a short introduction on Eefting Engineering and a short description of changes and equipment necessary to convert the vessels from MDO to HFO At the end there is an article on conversions in regards of the Intertanko statement that all vessels should run on MDO. The final purpose of this brochure of course being to interest you for having us executing such conversion(s) on one of your vessels. If you have any question feel free to contact us. Eefting Engineering B.V. Albert Plesmanlaan 24 9615TH Kolham The Netherlands T +31 598 395 458 F +31 598 395 485 [email protected]

m.v. Morgenstond II m.v. Morgenstond III Converted from MDO to IFO180 Shipowner: Drent beheer


Calculation FO costs In this sheet you will find calculation of the yearly fuel oil costs base don the following data: Technical data Main Engine 2.000 kW specific fuel oil consumption 195 gr / kWh FO prices (in dollars, source www.bunkerworld.com , dd 30th of October 2007, location Rotterdam) MGO 765 $ / ton = 531 € / ton MDO 686 $ / ton = 476 € / ton HFO180 483 $ / ton = 335 € / ton HFO380 463 $ / ton = 322 € / ton Exchange rate 1,44 $ / € Current FO consumption Q = P90 x be x 24 In which P90 = engine power 90% MCR be = specific fuel oil consumption Q = 8,4 ton / day At 250 sailing days yearly costs of MDO will be: K = Q x fmdo x 250 K = 8,4 x 476,- x 250 K = € 1.003.275,- per year

m.v. Rose Marie, KW34 Converted from MDO to IFO380 Shipowner: Duyn Holding B.V.

Due to the lower calorific value of HFO and increased electrical power requirements for an HFO installation as sludge which cannot be burned, the fuel oil consumption on HFO will be +/- 5% higher, so will rise to 8,8 ton per day. At 250 sailing days yearly costs of HFO180 will be: K = Q x f180 x 220 K = 8,8 x 335,- x 250 K = € 741.707,- per year

m.v. Pex m.v. Pasadena m.v. Perle m.v. Peru m.v. Tinsdale Converted from MDO to IFO180 Shipowner: Reederei Wessels GmbH At 250 sailing days yearly costs of HFO380 will be K = Q x f380 x 220 K = 8,8 x 332,- x 250 K = € 710.994,- per year Increased operational costs When sailing on HFO the operational costs will rise due to shortened maintenance intervals and increased sludge production On average for a 2.000 kW installation the additional costs per year will be € 20.000,- (€ 10.000,- per installed MW)


m.v. Christina m.v. Carina m.v. Clarissa m.v. Claudia Converted from MDO to IFO40 Shipwoner: Wijnne & Barends Savings So yearly savings for a 2.000 kW installation, when changing from MDO to HFO will be approximate € 240.000,- for IFO180 Or € 273.000,- for IFO380 Short term predictions Predictions for FO prices for HFO380 are: end 08 425 $ / ton end 09 410 $ / ton (source www.bunkerworld.com) Assuming that the prices of MDO will change linear with the raise & fall of the prices for HFO380, and seeing that prices will not go down significantly in the coming years, the savings will remain approximately the same.

Introduction Eefting Engineering Eefting Engineering is a dynamic company who is specialised in the manufacturing & delivery of components, systems and modules for shipbuilding, shipping and power plant industry. In this we have specialised in heavy fuel oil systems. Several hundreds of ships are sailing world wide with our installations. Service during contract and after delivery is one of our main features. Our (project) management is formed by former ships engineers who have lots of experience in the field of heavy fuel oil operation. During conversions we provide the complete installations from engineering and purchasing, via production modules and installation at shipyards to sea-trials, training and communication with class societies. Co-operating Yards Normally we hire shipyards to perform the installation for us. During complete conversion a surveyor of Eefting Engineering is present to check the quality and quantity of the installation works. Around 75% of our conversions are executed in Poland. Any other shipyard or company of your choice can also be hired. Due to the intense co-operation in Poland the last years, quick conversions and delivery dates as agreed can be guaranteed.

m.v. Flinterzee m.v. Flinterhaven m.v. Flintereems m.v. Flintermaas m.v. Flinterduin m.v. Flinterdijk m.v. Flinterspirit Converted from MDO to IFO380 Shipowner: Flinter management B.V.


Reference list Here under you’ll find a list of turnkey conversion in which Eefting Engineering has been involved.

Name of Vessel Shipyard / customer

country Ship type Delivery

m.v. Rose Marie, KW34 Duyn Holding B.V. NL Fishing trawler Oct 08

m.v. German Bay Reederei Wessels G Schelde Sept 08

m.v. Wotan Reederei Wessels G Schelde sept 07

m.v. Poet Reederei Wessels G Schelde Oct 07

m.v. Flinterhunze Flinter Groningen NL Tille Trader MP3300 June 07

m.v. Flinterlinge Flinter Groningen NL Tille Trader MP3300 July 07

m.v. Faust Reederei Wessels G Schelde May 07

m.v. Westgard Bore Shipowners FIN / NL Peters PCP200 oct 07

m.v. Sydgard Bore Shipowners FIN / NL Peters PCP200 sep 07

m.v. Ostgard Bore Shipowners FIN / NL Peters PCP200 aug 07

m.v. Peru Reederei Wessels G Sava/Rousse mini bulker April 07

m.v. Steffen Sibum Reederei B. Sibum G Schelde Jan 07

m.v. Hagen Reederei S. Bojen G Damen Combi freighter 4.900 jan 07

m.v. Deo Juvante, UK167 Gebr. Kramer NL fishing trawler july 06

m.v. Perle Reederei Wessels G Sava/Rousse mini bulker oct 06

m.v. German Sky Reederei Wessels G Schelde aug 06

m.v. Tinsdale Reederei Wessels G Sava/Rousse mini bulker july 06

m.v. Dependent Schalk Shipping NL Peters PCP200 july06

m.v. Helsinki Reederei S. Bojen G Damen Combi freighter 4.900 April 06

m.v. Pasadena Reederei Wessels G Sava/Rousse mini bulker March 06

m.v. Namai Wagenborg NL Ferus Smit 6.000t March 06

m.v. Pex Reederei Wessels G Sava/Rousse mini bulker Jan06

m.v. Transitorius Rederij Chr. Kornet NL Damen combi feighter 4.900 Jan06

m.v. Memel Reederei S. Bojen G Schelde Nov05

m.v. Flinterdijk Flinter Groningen NL Ferus Smit 6.000t May 04

m.v. Flinterspirit Flinter Groningen NL Ferus Smit 6.000t April 04

m.v. Morgenstond II Rederij Drent NL Ferus Smit 5.000t March 03

m.v. Flinterduin Rederij Flinter NL Ferus Smit 6.000t March 03

m.v. Morgenstond III Rederij Drent NL Ferus Smit 6.000t June 02

m.v. Clarissa Wijnne Barends NL HCC5000 Dec 01

m.v. Claudia Wijnne Barends NL HCC5000 Dec 01

m.v. Christina Wijnne Barends NL HCC5000 Dec 01

m.v. Carina Wijnne Barends NL HCC5000 Nov 01

m.v. Flintermaas Rederij Flinter NL Ferus Smit 6.000t Sept 01

m.v. Flintereems Rederij Flinter NL Ferus Smit 6.000t Sept 01

m.v. Flinterhaven Rederij Flinter NL Ferus Smit 6.000t Aug 01

m.v. Flinterzee Rederij Flinter NL Ferus Smit 6.000t Aug 01

m.v. Lengai Feederlines NL March 01

m.v. Tyr Feederlines NL March 01


m.v. Deo Juvante, UK167 Converted form MDO to IFO180 Shipowner: Gebr. Kramer, Urk The way we operate First thing to do when a conversion is considered is to find out with the engine manufacturer if the engine is able to run on Heavy Fuel Oil. Every engine will require some adjustments and also not all engine types are suitable to run on heavy fuel oil. This responsibility lies at the ship owner. After a positive outcome the technical installation has to be considered. This is where we come in. First of all the following drawings have to be submitted: - Tank arrangement - P&ID (diagrams) of cooling water, fuel oil, lubricating oil heating systems etc - Electrical load balance

m.v. Memel m.v. Hagen m.v. Helsinki Converted from MDO to IFO180 Shipowner: Reederei S. Bojen.

At this stage we are able to find out possibilities and write a plan for conversion as well as make a quotation for the delivery of the new goods. If this is found in order we will visit the vessel and make an arrangement check where and how to install the new equipment. The previous procedure can be performed within 2-3 weeks After this visit we can give a quotation if installation will be performed at our preferred yard in Poland. If required we can, with the ship owner, tender specific yards of owners request. If goods for conversion are to be ordered, a delivery date of 22-30 weeks is valid, depending on the availability of required goods. A typical conversion at the yard will take 3-5 weeks (power range 2- 5 MW). System alterations Changes to the main engine are under responsibility ship owner System changes involve in general the following Changes in tank configuration HFO booster module LO / FO separators to be checked if necessary to be changed Adjustments in auxiliary power if necessary transfer systems to be altered, HFO transfer pump(s) to be installed heating systems to be expanded / installed changes to main switch board (power supplies) changes / extension of alarm systems. Services provided by Eefting Engineering Engineering Plan approval class society delivery of all necessary goods Hiring shipyard Supervision during conversion commissioning new delivered and installed systems attendance during sea trials


Budgets Prices for conversion can vary a great deal, depending on the installation on board. However due to our experience we can give some estimates, shown in the diagram below. Variation – 10%

Investment x € 1.000,-

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Not included Adjusting main engine such as

- injectors - self cleaning build on LO filter - control valve air cooler - exhaust valves

(normally to be performed by owner ) Shore power Sludge & oil disposal Other operational costs during conversion Coating & painting

Project Duration After signing order, a delivery date of 24-40 workweeks is valid, depending on the availability of required goods. Required time at the yard will be approximate 4 workweeks. Warranty 12 months after sea trials. or 18 months after delivery equipment, which ever comes first. labour & materials included, travel time & expenses not included.

m.v. Ostgard m.v. Westgard m.v. Sydgard Conversion from MDO to IFO380 Shipowner : Bore Shipowners


m.v. Dependent converted from MDO to IFO380 Shipowners: Schalk Shipping Considerations Outline of an article from “Solutions”, edition march 2007. Switch over savings for short-sea When Intertanko proposed that all vessels should switch from heavy fuels to using MDO as a way of reducing SOx emissions the idea was not well received by the shipping world in general. Intertanko’s view that, as well as being a way to meet ever stricter emission rules, the switch would put all ship-owners on an even footing as regards fuel costs was never likely to be a convincing argument for it would have increased an owner’s biggest item of operating expenditure by a huge margin. For most owners the best answer to the SOx issue would be removal or reduction of the sulphur content of oil in the refineries. Not only would that resolve the problem of ensuring sufficient supplies of low sulphur fuel for all, it would also spare the expense of installing SOx abatement equipment onboard individual ships. Intertanko’s membership comes from every sphere of tanker owning and so its members will be operating engines of vastly different types. The biggest ships will be equipped with low-speed two strokes but further down the scale medium-speed diesels will be in the majority.

The switch that Intertanko envisaged would have seen the change occurring in the large ship sector but Dutch-based Eefting Engineering believes that there is a big cost benefit to be had from switching away from MDO and running medium speed engines on IFO 380. So far the company has installed new fuel systems in several ships – mostly from the small size dry cargo sector – and reckons that some owners are saving up to $400,000 per year in fuel costs.

m.v. Faust m.v. Poet m.v. Wotan m.v. German Sky Converted from MDO to HFO180 Shipowner: Reederei Wessels Gmbh

Eefting Engineering B.V. Eefting Engineering is a relatively young company specialising in auxiliary and processing equipment for a range of industries including marine, power and oil and gas. Harm Eefting MD and owner of Eefting Engineering told Solutions that any ship currently running on MDO and with a medium speed main engine of 1,500kW or above is an ideal candidate for conversion.. To date the company has carried out or has orders for 35 conversions and is currently taking on around a dozen every year. A typical conversion for a single engine ship would take between two and four weeks. Slightly longer perhaps than a scheduled drydocking but as Eefting points out, drydocking is not essential for the work which can be done alongside. He adds that the fuel cost saving can in some cases be sufficient motive for the owner to decide to do the work between dry dockings. Although Eefting refers to the work as a conversion, it in fact involves adding in a whole new system for the heavy oil while leaving the fuel treatment system for the MDO intact albeit somewhat modified. The MDO will still be useable for manoeuvring and when environmental regulations such as SECAs demand. Creating tank space for the heavy fuel, if there are insufficient individual tanks already available, can either be done by dividing some of the existing tanks or by creating new fuel tanks in the ballast spaces. As a minimum, Eefting recommends two storage tanks and one settling tank for each type of fuel. There will of course be alterations to the pipe work and transfer system as well as a need to add heating elements to the new heavy fuel tanks.

m.v. Flinterlinge m.v. Flinterdijk Converted from MDO to IFO380 Shipowner: Flinter management

m.v. Steffen Sibum Converted from MDO to IFO180 Shipowner: Reederei Bernd Sibum In the machinery spaces room will need to be found for the booster module with associated pumps, centrifuges and separators. Most of the ships that Eefting has converted have been Dutch flagged but in recent years German and Finnish owners have also been regular customers. In the main they have been typical European short sea types built between 1997 and 2001 when it was fashionable for such ships to be designed to run on MDO which was then relatively inexpensive. Today the price differential is around $200 per tonne with MDO costing $466 and IFO380 just $263. The trading pattern of short sea ships means that they are only at sea for around two days in every three so the potential for savings might be though a little limited. Eefting calculates that, allowing for the fact that slightly more IFO fuel will be consumed than when run on MDO, annual savings of around $138,000 per 1,000kW of main engine power is possible. The cost for a full conversion varies depending on each ship’s own characteristics and ranges from $200,000 to as much as $800,000 with an average of around $478,000. Clearly that is a major investment for an owner to make on a small ship but those that have taken the step have done so on ships that are between three and six years old. Since European short sea vessels regularly trade into their late 20s and beyond, the owners of converted vessels can expect around 20 years of savings making the switch a very attractive proposition. s


New HFO equipment installed on m.v. “Pasadena” from Reederei Wessels

Contact If you are interested and would like to know more about our HFO conversions or any (heavy) fuel related problem, please contact us. We will be more then happy to supply you with any required information. Albert Plesmanlaan 24 9601 TH Kolham The Netherlands T +31 (0)598 395 458 F +31 (0)598 395 485 e-mail [email protected]

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Eefting Engineering

Eefting Engineering Vietnam No65/254 Van Cao street, Hai Phong Vietnam T +84 (0)31 3733466 F +84 (0)31 3733776.

Documents

FO Conversions 08