Exploring the different scenario's and economic implications of fuel flexibility in the power generation industry.

1. FUEL FLEXIBILITY
THE NEXT CHALLENGE FOR THE POWER GENERATION INDUSTRY
MATTEO NATALI
MARINE APPLICATIONS
ENGINES SALES
LNG18
11-16 APRIL 2016
PERTH, AUSTRALIA

2. YESTERDAY
DIESEL

3. OIL PRICE
100$/BARREL
CRUDE OIL PRICE – 2006 TO 2014
0
25
50
75
100
125
150
2006 2007 2008 2009 2010 2011 2012 2013 2014
USD/BARREL
EIA SHORT TERM ENERGY OUTLOOK, MARCH 2016

4. EMISSIONS RULES
ECA ZONES
EMISSION CONTROL AREAS
 ECA
 POSSIBLE FUTURE ECA

5. TODAY
DUAL FUEL

6. HIGH EFFICIENCY
LOW OPEX
ANNUAL GAS CONSUMPTION
HFO + SCR + SCRUBBER LNG
24% SAVINGS
77MW DFDE CRUISE SHIP, 7200 HRS/YEAR

7. LOW EMISSIONS
IMO TIER III
EMISSIONS – HFO ENGINE VS DF ENGINE
0%
20%
40%
60%
80%
100%
CO2 NOx SOx PARTICULATES

8. FIRST
OSV & LNGC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ACTIVE FLEET ORDERBOOK
NUMBEROF100K+CBMLNGC
DFDE 2S DIESEL 2S GAS STEAM TURBINE
LNGC ACTIVE FLEET AND OB
CLARKSONS JANUARY 2016

9. THEN
FERRY & TUG
0
5
10
15
20
25
30
35
40
45
IN OPERATION ON ORDER
LNGC ACTIVE FLEET AND OB
DNV GL 2015, LNG CARRIERS AND IWW NOT INCLUDED

10. NOW
ALL SHIPS
SAILING GAS FUELLED VESSELS
0
50
100
150
200
250
300
350
2014 2015 2016 2017 2018 2019 2020

11. INDUSTRY LEADERS
WÄRTSILÄ
POWER PLANTS
350+ ENGINES | 4900+ MW | 75+ PLANTS
SPECIALS
60+ ENGINES
FERRIES - 9 SHIPS
TUGS - 6 SHIPS
OTHER - 7 SHIPS
RETROFITS
25+ ENGINES
FPSO - 4 SHIPS
RORO - 2 SHIPS
OTHER - 3 SHIPS
OFFSHORE
120+ ENGINES
OSV - 31 SHIPS
FPSO - 10 SHIPS
OTHER - 3 SHIPS
MERCHANT
850+ ENGINES
LNGC - 200 SHIPS
MULTIGAS - 8 SHIPS
OTHER - 4 SHIPS
1400+ ENGINES
14 000 000+ RUNNING HOURS

12. TOMORROW
?

13. OIL FUTURE PRICE
UNCERTAIN
CRUDE OIL PRICE – 2014 TO 2016
0
25
50
75
100
125
150
2014 2015 2016 2017
USD/BARREL
IRAN SANCTIONS ?
GEO-POLITICAL SITUATION ?
SUPPLY & DEMAND BALANCE ?
GLOBAL GDP GROWTH ?
US FRACKING ?
ETC…
EIA SHORT TERM ENERGY OUTLOOK, MARCH 2016

14. OIL & GAS REFINERY
BYPRODUCTS
HYDROCARBON GAS LIQUID PRODUCTION
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
2012 2013 2014 2015 2016 2017
MILLIONBARRELSPERDAY
ATNATURALGASPLANTSATREFINERIES
BUTANES/BUTYLENES
PROPANE/PROPYLENE
ETHANE/ETYLENE
NATURAL GASOLINE
BUTANES
PROPANE
ETHANE
EIA SHORT TERM ENERGY OUTLOOK, MARCH 2016

15. We believe in fuel flexibility

16. UPGRADE PACKAGE
MOVE TO DF NEW COMPONENTS
TURBOCHARGERS RE-MATCHING
PISTONS AND PISTON RINGS
AIR DRIVEN STARTING MOTORS
CYLINDER HEAD AND LINERS
EXHAUST GAS WASTEGATE
CONNECTING RODS
CAMSHAFT PIECES (MILLER)
PILOT FUEL SYSTEM
GAS FUEL SYSTEM
ENGINE CONTROL SYSTEM
GAS VALVE UNIT
DIESEL TO DF ENGINE CONVERSION

17. DF ENGINES
ETHANE SCOPE OF SUPPLY
2x 6L50DF
2x 6L20DF
SHAFT
SHAFT GENERATOR
TCH350 TWIN IN-SINGLE OUT GEARBOX
4E1540 CPP
CARGO HANDLING PLANT
FUEL SUPPLY SYSTEM
EVERGAS – 8x 27 500CBM MULTIGAS CARRIERS

18. DIESEL ENGINES
METHANOL
STENA GERMANICA CONVERSION
CONVERSION SCOPE
4X 8ZAL40S ENGINES CONVERTED FOR METHANOL
(NEW CYLINDER HEADS, INJECTORS, COMMON RAIL
SYSTEM AND HP METHANOL PUMP WITH OIL UNIT
DOUBLE WALLED HIGH PRESSURE FUEL PIPES
BALLAST TANK CONVERTED TO METHANOL TANK
HIGH PRESSURE PUMP ROOM
TRANSFER PUMP ROOM
DIESEL CYCLE SELECTED – PROS AND CONS
 NO KNOCKING (DIESEL COMBUSTION)
 LOW THC, CO AND FORMALDEHYDE
 GOOD BACK-UP PERFORMANCE
 NO POWER REDUCTION
 GOOD LOAD ACCEPTANCE
 COST EFFECTIVE
 HFO PILOT FUEL
 NOX HIGHER THAN DF
 NOX DEPENDS ON PILOT FUEL FOR IGNITION

19. FUEL SHARING AREA
FUEL SHARING
LOW MN GAS
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
FUELOIL/GASRATIO[%]
LOAD [%]

20. GAS REFORMER
APG, LPG,
NGL, VOC, …
GAS REFORMER PROCESS

21. Matteo Natali
Marine Applications, Engines Sales
Mobile: +39 340 883 1319
Mail: matteo.natali@wartsila.com