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©2010 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies. Rolls-Royce Marine Engines Bergen 2011 Reducing emissions by switching to LNG. An affordable, proven technology for today’s environmental challenges. Core to a “green strategy” – May 5th 2011

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©2010 Rolls-Royce plcThe information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc.This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies.

Rolls-Royce Marine Engines Bergen 2011Reducing emissions by switching to LNG.An affordable, proven technology for today’s environmental challenges. Core to a “green strategy” – May 5th 2011

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Rolls-RoyceWorld leading supplier addressing four global markets:

Content1 Rolls-Royce Plc2 Rolls-Royce Marine Engines3 RRM Gas engines4 RRM Hybride Shaft Generating system

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Rolls-Royce

Civil Aerospace Defence Aerospace Marine Energy

39 000 employees

• Aero engines• Helicopter engines

• Aero engines• Helicopter engines

• Ship Design• Equipment systems

• Gas turbines

World leading supplier addressing four global markets:

Turnover 2010: 110,3 bn. NOK Order book per 31.12.10: 589 bn. NOK

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Rolls-Royce Marine

� 9000 employees in 34 countries� Over 30.000 vessels with our design and/or

equipment � Second largest division in Rolls-Royce � Turnover 2010: 25,8 bn. NOK� Order book 31.12.2010: 29,9 bn. NOK

Offshore Merchant Naval

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DESIGN

Rolls-Royce design & integrated ship systems

Customer

One contact, one supplier, one deal = a safe & cost-effective solution

MANOEUVRING

ENGINES

DECK MACHINERY

AUTOMATED HANDLING SYSTEMS

AUTOMATION

ELECTRIC SYSTEM

PROPULSION

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Rolls-Royce MarineEngines Bergen

The Gas Conference BERGEN 2011

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�All Rolls-Royce reciprocated engines are built and tested in this facility

�Core manufacturing activities� Connecting rods machining

� Cylinder head machining

� Engine blocks machining

� Assembly

� 8 + 4 test beds

�Bergen Engines 637 employees March 2011

�Bergen Foundry 160 employees

Rolls-Royce Bergen Diesel and Gas Engines� High HSE focus

� A major manufacturer of medium speed engines within the Offshore segment

� One of the biggest production facilities in Norway

� Established in 1943

� Facilities 32000m2 + 8000m2

� Offices

� Modern machine shop, assembly and test facility

� Aftermarket workshop & spares/ service business

� Dedicated docking facility for sea transportation and overhaul

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Bergen

Rolls-Royce Bergen Engines - Some Key Facts

� 4 segments, Offshore, Merchant, Naval and Energy

� Strong cluster in the area

� World wide sales and service support, GSN

� 6200 engines sold world wide (850 last 5 years), 4000 in operation

� Engine range 1460 kW to 8750 kW

� Center of Excellence

� In house Technology and Development department

Our Markets and Business Streams (CFBUs)

MerchantOffshore Naval Energy

� First HFO engine delivered in 1963

� First lean-burn gas engine delivered in 1991

� Part of Rolls-Royce 1999

� First 16 gas engines for marine operation delivered 2006

� Lloyd’s Quality Certificates ISO 9001:2008, 14001:2002 and OHAS 18001

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Rolls-Royce Marine Engines Bergen

Designed for robustness, harsh operational environments, and

exceptional levels of reliability

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Not much has changed….

New York Harbour 2008

GEIRANGER 2007

Visible smoke 1910

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• Types: C26:33L6-8-9 • Bore: 260 mm• Stroke: 330 mm• Power: max. 244 / 270 kW / cyl• Speed: 600 – 1000 rpm• Power range: 1460 – 2430 kWmech

The gas engines

References:

Fjord1 - Gas fuelled ferry(3xC26:33L9AG + 1xC25:33L9ACD)

Island Offshore – UT776CDG PSV(2xC26:33L9AG + 2xC25:33L6ACD)

NSK Shipping - Bulk carrier(1xC26:33L6PG)

Fjord1 Gas fuelled ferry(1xC25:33L9AG retrofit)

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• Types: B35:40L6-8-9 & B35:40V12, -16

• Bore: 350 mm• Stroke: 400 mm• Power: 420 / 440 kW / cyl• Speed: 500 - 750 rpm• Power range: 2520 - 8750 kWmech

The gas engines

References:

Sea-Cargo, RoRo vessel(2x1xB35:40V12PG)

Torghatten Nord, Gas ferry( 2 x 1xB35:40V12PG + 2 x 1 x C26:33L9PG)

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Increasing oil prices and new legislation drive technology

Gas powered propulsion

Hybrid propulsion

High efficiency propulsion andmanoeuvring systems: PROMAS

up to -8%

Advanced hull forms

Application for patent protection by Rolls-Royce

up to -8%

-50%

•CO2 - 23%•NOx - 92%

•SOx - 100%•Particulate - 98%

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GHG (Green House Gas) from gas engines

� 1t diesel emits 3,2t CO2

� 1t natural gas emits 2,55t CO2

� The difference is 20% reduction

� Due to higher energy content in gas the possible Greenhouse Gas reduction is over 30%

� Uncombusted methane has a GHG effect 21 times higher than CO2

� If unused methane is released from the combustion the GHG reduction is quickly eroded

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GHG reduction vs fuel consumption

-30-20-10

010203040

200 190 180 170 160 150

0 3 6 9 12E2 weighed methane slip in g/kWh

Gas engine with fuel consumption in g/kWh

Reduction of GHG in % compared to a standard Diesel engine with a specific consumption of 185 g/kWh

%

RR C engine

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Fjord 1; Ferry 6

INTEGRATOR: The Rolls-Royce Gas engine technologyPropulsion system; Gas engines and AZP

Estimated fuel reduction 20-30%,compared to first 5 ships (7% from engine)

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Torghatten Ferry Company; 4 ferries at Remontowa

INTEGRATOR: The Rolls-Royce Gas engine technology

Resulting in a complete system delivery:Propulsion system; Gas engine - Gear box – propeller - LNG tank ACON-HSG system

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NSK Fish Feeder ship(Bulk)

INTEGRATOR: The Rolls-Royce Gas engine technologyResulting in a complete system delivery:

Propulsion system; Gas engine-Gear box – propeller - LNG tank ACON-HSG system

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40-60Hz

60Hz

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HSG - Hybrid propulsion system

Gas mechanical economy mode

• The most economical power generating during transit

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60Hz

40-60Hz

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Hybrid propulsion system

Gas electric slow speed

• Fulfil emergency propulsion requirement

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40-60Hz

60Hz

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Hybrid propulsion systemGas mechanical boost mode

• For ice class fulfilment• Meeting charter speed requirement • With reduced main engine power

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Rolls-Royce lean burn gas-enginesGas consumption & NOx for variable versus fixed RPM

6

9

12

15

18

0 % 20 % 40 % 60 % 80 % 100 %

Engine Power %

MJ/

kWh

0

3

6

9

12

g/kW

h N

Ox

MJ/kWh propellercurve MJ/kWh 1000 rpm g/kWh NOx propellercurve NOx 1000 rpm

Emissions: CO2, SOX = 0, NOX = low, PM = 0 – most important when in harbour – at low load!Additional feature: Response time for manoeuvring purposes is excellent.By direct shaft and CPP/propeller curve - consumption is lowered over the power range.

Note that for propulsion direct drive reduce el.loss

by additional 10%

25%

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Propeller shaft Input power as a function of RPM

0

1000

2000

3000

4000

5000

6000

7000

40 50 60 70 80 90 100

110

120

130

140

Propeller RPM

Pow

er [k

W] Zero Pitch

Sailing 10 knotsSailing 12 knotsSailing 14 knotsSailing 15 knots

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Optimizing propeller efficiency - Hybrid Shaft Alternator, based on the propeller curve example

• By reducing the engine speed down toidling, propeller w 80 rpm, zero pitch losses is almost removed

• By reducing the engine speed down tooptimum efficiency for the propellerwhen vessel is sailing in x knots thepower needed is reduced from3900kW to 2700kW- 1200kW for 24hours is 6000 litersof fuel

• Especially for slow steaming operation this gives a large fuel reduction potential

http://www.freecharts.com/commodities.html?page=quote2&sym=NG

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1. Conventional diesel mechanical propulsion, medium speed\with reduction gear and PTO.

•Gear losses 2.0%•Bearings (gear, stern tube, shaft/shaft gen) 2.5%

Total 4.5%2. Diesel mechanical with Azipull propulsion, medium speed engine,

shaftgen.•Gear wheel losses in Azipull 3.0%•Bearings (Azipull, shaft, shaft gen) 2.0%

Total 5.0%3. Diesel electric propulsion with Azipull propulsion

•Gear wheel losses in Azipull 3.0%•Generator losses 3.0%•S/Board/Converter losses 2.5%•Drive motor losses 2.5%•THD lossses (12 pulse plant) 4-5.0%

Total 15-16%

Direct drive – vs. electric drive

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From bunker flange to propeller thrust- Operational benefits with LNG, single fuel main engine:

• Single fuel = single bunkering, • High efficiency with PTO, • Redundancy with PTI.• No purification system for

liquid fuel, • Cleaner engine room,• Less waste oil

• No “switch over” problems - ref SECA or port regulations

• Long-term compliance with local port regulations and potential benefits from taxation/green port dues.

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Rolls-Royce gas engines

� Ramp up time = diesels� Not haunted by knocking problems

during load changes

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Summary 1� Marine Gas engines represents well proven technology

� LNG is available – increased demand will ensure even better distribution network

� RR marine gas engines gives benefits vs. MDO/DF:

� More efficient

� Less expensive in both terms of operating, fuel and life cycle cost

� Less emissions

� Less complex engine supporting systems

� Green profile for the ship owner – marketing tool

� Long term : Increased second hand value

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� More than 500 sold, over 400 in operation

� More than 20 mill hrs experiences

� Plants with more than 140.000 hrs

� The 5 ferries are doing 35 port calls/day-51000/year.

� The ferry Engines have logged more than 25000 running hours since Jan 2007

Summary 2

� So far 18 gas engines for marine are in operation,� 15 more sold,� 17 vessels in total

Rolls-Royce Lean Burn Gas engines for ships – the logical choice:

NO OILSPILL DURING BUNKERING"the most economic way to comply

with future requirements"

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References: RRM gas enginesFjord1 - “Bergensfjord” (2 x KVGS-12G4 + 2 x KVGS-16G4)Fjord1 - “Fanafjord” (2 x KVGS-12G4 + 2 x KVGS-16G4)Fjord1 - “Raunefjord” (2 x KVGS-12G4 + 2 x KVGS-16G4)Fjord1 - “Mastrafjord” (2 x KVGS-12G4)Fjord1 - “Stavangerfjord” (2 x KVGS-12G4)Fjord1 - “Tresfjord” (1 x C26:33L9AG + 1 x BRM-6 (diesel))Fjord1 - “6th ferry” (3 x C26:33L9AG + 1 x C25:33L9LACD (diesel))

Torghatten “ferry 1” (1 x C26:33L9PG)Torghatten “ferry 2” (1 x C26:33L9PG)Torghatten “ferry 3” (1 x B35:40V12PG)Torghatten “ferry 4” (1 x B35:40V12PG)

NSK Shipping (1 x C26:33L6PG)

Sea Cargo “vessel 1” (1 x B35:40V12PG) hull 357Sea Cargo “vessel 2” (1 x B35:40V12PG) hull 358

Coral Methane 2 x KVGB-12G4 + 2 x B32:40L8A (MFO/HFO))

Island Offshore (2 x UT776 CDG) @ 2 x C26:33L9AG + 2 x C25:33L6A CD

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The next steps� Can we get economic energy from the clean

exhaust ?

Without Sulphur and Particles the heat is more accessible for energy recovery - A resource for the future.

”We have only seen the beginning”