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02 I 2013<br />

<strong>LNG</strong><br />

Straight ahead to safe <strong>LNG</strong> bunker supply


<strong>LNG</strong> – driving change in shipping<br />

5%<br />

4%<br />

3%<br />

2%<br />

1%<br />

0%<br />

Sulphur content limits in bunker fuels<br />

Global<br />

2008<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

2017<br />

2018<br />

Local<br />

2019<br />

2020


<strong>In</strong>troduction<br />

Future-proof solutions<br />

for greener shipping<br />

Stringent international regulations on emissions are forcing the shipping<br />

industry to rethink its fuelling options. The IMO has introduced<br />

emission controls, which will increasingly affect international shipping<br />

over the next decade. The introduction of ECAs in European, US and<br />

Canadian territorial waters means that shipowners must begin to consider<br />

alternatives to traditional heavy fuel oil.<br />

WWe at <strong>GL</strong> are supporting<br />

the industry at all levels to make<br />

ships more efficient and environmentally<br />

friendly. A key topic in<br />

this quest is liquefied natural gas<br />

(<strong>LNG</strong>) as an alternative to conventional<br />

fuels. Compared to oil, natural<br />

gas has an important advantage:<br />

It combines efficiency with a lower<br />

environmental impact.<br />

There are four aspects that, taken<br />

together, make <strong>LNG</strong> as ship fuel one<br />

of the most promising new technologies:<br />

1. Using <strong>LNG</strong> as ship fuel can reduce<br />

sulphur oxide (SO x ) emissions, which<br />

are created using fuel with a high<br />

sulphur content, by approximately<br />

90% to 95%. This reduction will<br />

become mandatory within the socalled<br />

Emission Control Areas from<br />

2015 on. A similar reduction will be<br />

enforced for worldwide shipping<br />

from 2020 on, pending a review at<br />

IMO which may move the introduction<br />

to 2025.<br />

2. Reduction of nitrogen oxide (NO x )<br />

emissions down to IMO Tier III limits,<br />

applicable in ECAs from 2016, is possible<br />

for pure gas engines and fourstroke<br />

dual fuel engines which are<br />

typically used onboard ships engaged<br />

in short sea and coastal shipping.<br />

3. Due to the lower carbon content<br />

of <strong>LNG</strong>, a 20% to 25% reduction<br />

of carbon dioxide (CO 2 ) emissions<br />

is possible. The actual reduction depends<br />

on engine type and possible<br />

measures to reduce the partial slip<br />

of unused methane.<br />

4. The current <strong>LNG</strong> price in Europe<br />

and the USA suggests that <strong>LNG</strong> could<br />

be offered at a price comparable to<br />

heavy fuel oil (HFO). This means that<br />

<strong>LNG</strong> will certainly look commercially<br />

attractive against the low-sulphur<br />

marine gas oil (MGO), which will be<br />

required to be used within the ECAs<br />

if no other technical measures are implemented<br />

to reduce SO x emissions.<br />

<strong>GL</strong> has been involved in many national<br />

and international research projects<br />

investigating different aspects of<br />

<strong>LNG</strong> as ship fuel. Our experts are<br />

participating in the development<br />

of the IMO’s IGF Code for gas as<br />

ship fuel. We act as an advisor to<br />

the German Ministry of Transport,<br />

Building and Urban Development,<br />

and we have already put our in-depth<br />

knowledge to the test on ships now<br />

in service. Furthermore, we are also<br />

contributing to the development of<br />

the ISO Technical Specification on<br />

<strong>LNG</strong> bunkering procedures.<br />

The following pages are designed to<br />

give you an overview of regulatory<br />

changes, developments in the supply<br />

chain, trends in research, and practical<br />

implementation of <strong>LNG</strong>.<br />

02 I 2013 03


10<br />

06<br />

SECA AREA<br />

22<br />

30


Overview of existing and planned <strong>LNG</strong><br />

production and terminal sites<br />

Existing <strong>LNG</strong> production plants<br />

Planned <strong>LNG</strong> production plants<br />

Proposed <strong>LNG</strong> production plants<br />

Contents<br />

Existing small-scale export/bunkering facilities<br />

Proposed small-scale export/bunkering facilities<br />

Existing <strong>LNG</strong> terminals<br />

Planned and decided <strong>LNG</strong> terminals<br />

Planned and not decided <strong>LNG</strong> terminals<br />

contents<br />

<strong>In</strong>troduction<br />

Future-proof solutions for greener shipping<br />

INTERNATIONAL REGULATIONS – CURRENT STATUS<br />

08 … IGC Code – safe <strong>LNG</strong> transport<br />

08 … IGF Code – safety for ships using gas or low-flashpoint fuels<br />

09 … ISO Technical Specification – safe <strong>LNG</strong> bunkering<br />

09 … Reputable <strong>GL</strong> guidelines and rules<br />

09 … Emission Control Areas<br />

<strong>LNG</strong> BUNKERING – SAFE AND RELIABLE SUPPLY<br />

12 … Supply infrastructure improving<br />

13 … Main bunkering options<br />

14 … <strong>Focus</strong> on safety issues<br />

15 … BunGas – ship-to-ship bunkering solution<br />

16 ... EMSA study – <strong>LNG</strong> bunkering in ports<br />

19 … TENT-T – EU-wide <strong>LNG</strong> supply project<br />

20 … BMVBS study – bunkering of <strong>LNG</strong> in German ports<br />

<strong>LNG</strong>-FUELLED SHIPS – RESEARCH FINDINGS<br />

24 … GasPax – <strong>LNG</strong> for passenger ships<br />

25 … MariTIM – <strong>LNG</strong> passenger vessel<br />

26 … <strong>GL</strong>/MAN study – costs and benefits of <strong>LNG</strong><br />

SUCCESS STORIES – A NEW ERA<br />

32 … Projects exploring <strong>LNG</strong> as ship fuel<br />

33 … “Bit Viking” – world’s first <strong>LNG</strong>-fuelled tanker<br />

34 … “STREAM” – <strong>LNG</strong>-powered container vessel<br />

02 I 2013 05


INTERNATIONAL REGULATIONS –<br />

CURRENT STATUS<br />

Forefront<br />

of change<br />

There will be a growing number of innovative <strong>LNG</strong>fuelled<br />

vessels over the next years. The reason:<br />

new environmental regulations, which are forcing shipowners<br />

to either change propulsion fuel or invest<br />

in costly exhaust-gas cleaning systems. And this is<br />

in addition to the already high bunkering prices,<br />

which will most likely continue to rise significantly<br />

in future. Due to the strict IMO requirements for<br />

reducing pollutants to sea and air, as of 2015 <strong>LNG</strong>powered<br />

ships will experience a true boom.


Germanischer Lloyd<br />

Safety first<br />

Before <strong>LNG</strong> can be used as a mainstream ship fuel, transported to refuelling facilities or bunkered –<br />

whether ship to ship or land to ship – a number of issues concerning safety and the environment<br />

have to be thoroughly considered first. As <strong>LNG</strong> becomes the fuel of choice for shipping, safe<br />

and environmentally sound regulatory solutions are becoming more and more important.<br />

IGC Code – safe<br />

<strong>LNG</strong> transport<br />

The <strong>In</strong>ternational Code for the Construction<br />

and Equipment of Ships<br />

Carrying Liquefied Gases in Bulk (IGC<br />

Code) has specifically been laid down<br />

for ensuring the safety of gas carriers,<br />

including <strong>LNG</strong>.<br />

The purpose of the IGC Code is to<br />

provide an international standard<br />

for the safe transport by sea in bulk<br />

of liquefied gases and certain other<br />

substances. It prescribes the design<br />

and construction standards of ships<br />

involved in such transport as well as<br />

the equipment they should carry so<br />

as to minimise risk to the ship, its<br />

crew and the environment.<br />

According to the IGC Code, only <strong>LNG</strong><br />

carriers are allowed to utilise <strong>LNG</strong><br />

boil-off gas as fuel in the machinery<br />

space. Since 2000, a few <strong>LNG</strong>-fuelled<br />

vessels, which are not covered by the<br />

IGC Code, have come into service<br />

with the permission of their national<br />

administration. This means that these<br />

vessels are only allowed to sail in<br />

national waters or need permission<br />

from each port state where the ship<br />

wants to berth and operate.<br />

IGF Code – safety<br />

for ships using<br />

gas or low-flashpoint<br />

fuels<br />

Due to lack of international safety requirements<br />

for gas as fuel for non-<strong>LNG</strong><br />

carriers, the development of an <strong>In</strong>ternational<br />

Code for Gas as Ship Fuel<br />

(IGF Code) has been proposed to the<br />

IMO’s Marine Safety Committee.<br />

The goal of the IGF Code is to provide<br />

an international standard for ships<br />

that employ engine installations<br />

powered by natural gas or other<br />

low-flashpoint fuels. At present, the<br />

IMO sub-committee Bulk and Liquid<br />

Gases (BLG) is working on the development<br />

of the IGF Code, which is<br />

planned to come into force in 2016.<br />

When it is approved,<br />

the IGF Code will:<br />

••<br />

provide safety measures for ships<br />

using gases as ship fuel, including<br />

liquefied gas tankers<br />

••<br />

address other fuels, too, with low<br />

flashpoints such as methanol,<br />

ethanol, butane, hydrogen and<br />

propane relevant for future attachments<br />

••<br />

cover the energy conversion systems<br />

of relevance (low and high<br />

pressure ICE, gas turbines, boilers,<br />

fuel cells)<br />

••<br />

address issues not already covered<br />

by SOLAS and therefore serve as<br />

an addition to SOLAS<br />

••<br />

supersede the interim guidelines<br />

and Chapter 16 of the IGC Code<br />

in future<br />

••<br />

address requirements for bunker<br />

stations<br />

However, until the IGF Code is<br />

approved, the <strong>In</strong>terim Guideline<br />

MSC.285(86) specifies criteria for<br />

the arrangement and installation of<br />

<strong>LNG</strong>-fuelled machinery – with the<br />

aim of achieving a level of integrity<br />

in terms of safety, reliability and dependability<br />

equivalent to conventional<br />

oil-fuelled machinery. Subject<br />

to further requirements, ships built<br />

according to this interim guideline<br />

will be allowed to continue to operate<br />

after the IGF Code comes into<br />

effect. There is, therefore, no reason<br />

to hesitate building a gas-fuelled ship<br />

out of concern that interim guidelines<br />

may be overruled.<br />

08 02 I 2013


ISO Technical<br />

Specification – safe<br />

<strong>LNG</strong> bunkering<br />

To close the gap regarding the bunkering<br />

of <strong>LNG</strong> within the regulatory<br />

framework, a Norwegian initiative led<br />

to the establishment of the Working<br />

<strong>Group</strong> 10 (WG 10), part of the ISO’s<br />

Technical Committee 67 (TC 67).<br />

The objective of the ISO TC 67 WG<br />

10 is the development of international<br />

guidelines for the bunkering<br />

of gas-fuelled vessels, with a focus<br />

on requirements for the <strong>LNG</strong> transfer<br />

system, the personnel involved<br />

and the related risk of the entire <strong>LNG</strong><br />

bunkering process. The scope of the<br />

standard will cover shore-to-ship,<br />

truck-to-ship and ship-to-ship<br />

transfer.<br />

The members of the WG 10 decided<br />

to develop a technical specification<br />

as a high-level document to be finalised<br />

by 2014. As experience with<br />

the bunkering of <strong>LNG</strong> increases, the<br />

WG 10 will in future be able to<br />

develop an international standard<br />

for the procedure.<br />

Reputable <strong>GL</strong> guidelines<br />

and rules<br />

Germanischer Lloyd (<strong>GL</strong>) has been extensively<br />

involved in the development of next-generation<br />

gas-fuelled ships and has therefore set up its<br />

own set of guidelines.<br />

The <strong>GL</strong> Guideline for the Use of Gas as Fuel for Ships<br />

(VI-3-1) has been in force since 1 May 2010.<br />

It incorporates:<br />

••<br />

the MSC.285(86) in full<br />

••<br />

guidance and recommendations on natural<br />

gas-fuelled engines<br />

••<br />

criteria for the design arrangements and installation<br />

of propulsion and auxiliary machinery powered by<br />

natural gas<br />

Notes on the rules pertaining to the <strong>GL</strong> Guideline for<br />

the Use of Gas as Fuel for Ships (VI-3-1) were subsequently<br />

published in 2011.<br />

<strong>GL</strong> rules for <strong>LNG</strong> carriers include:<br />

••<br />

<strong>GL</strong> Rules I-1-6 – Liquefied Gas Tankers<br />

••<br />

<strong>GL</strong> Rules IV-6-5 – Design Requirements for <strong>LNG</strong><br />

Valves, Safety Valves, QC/DC Couplings<br />

••<br />

<strong>GL</strong> Rules VI-3-1 – Machinery <strong>In</strong>stallations<br />

••<br />

<strong>GL</strong> Rules VI-7-8 – Type Approvals<br />

Emission control areas<br />

A step-by-step introduction of restrictions will limit<br />

emissions of nitrogen and sulphur oxides (NO X and SO X ),<br />

unburnt hydrocarbons, particulate matter, as well as<br />

greenhouse gases. Regional Sulphur Emission Control<br />

Areas (SECAs) such as the North Sea and the Baltic,<br />

or Emission Control Areas (ECAs) already have<br />

stricter requirements regarding emissions.<br />

From 2015, the maximum sulphur content<br />

of fuel oil will be limited to 0.1% for all<br />

vessels operating in SECAs/ECAs, and<br />

from 2016 NO X emissions for newbuildings<br />

operating in ECAs will<br />

also be limited.<br />

Ocean-going vessels typically<br />

spend 5% to 6% of their<br />

operating time in ECAs. But<br />

this figure is growing considerably<br />

on a number of shipping<br />

routes, especially now<br />

that new requirements for ship<br />

fuel quality are in force along<br />

Canadian and US coastlines. <strong>In</strong><br />

addition, a number of other sea areas are<br />

expected to introduce similar restrictions on emissions<br />

before 2020, the effective date of global sulphur<br />

limits on heavy fuel oil.<br />

02 I 2013 09


<strong>LNG</strong> BUNKERING –<br />

SAFE AND RELIABLE SUPPLY<br />

Availability<br />

is key<br />

The supply chain for <strong>LNG</strong> as ship fuel and bunkering<br />

remain issues that are currently being thoroughly<br />

researched and documented. <strong>LNG</strong> suppliers are slowly<br />

becoming convinced that this technology will take off,<br />

and potential <strong>LNG</strong> users are discovering that <strong>LNG</strong> will be<br />

made available at an attractive price and at convenient<br />

locations.<br />

SECA AREA


<strong>LNG</strong> <strong>In</strong>frastructure<br />

in Northern Europe<br />

Overview of existing and planned <strong>LNG</strong><br />

production and terminal sites<br />

Existing <strong>LNG</strong> production plants<br />

Planned <strong>LNG</strong> production plants<br />

Proposed <strong>LNG</strong> production plants<br />

Existing small-scale export/bunkering facilities<br />

Proposed small-scale export/bunkering facilities<br />

Existing <strong>LNG</strong> terminals<br />

Planned and decided <strong>LNG</strong> terminals<br />

Planned and not decided <strong>LNG</strong> terminals


Source: Bomin Linde AG<br />

Supply infrastructure improving<br />

At the end of 2012, there was as yet no full-scale supply chain for <strong>LNG</strong> as ship fuel,<br />

with the exception of Norwegian and Swedish coastal waters.<br />

However, the infrastructure<br />

that Norway has in place today will<br />

become more and more commonly<br />

available – especially as of 2015,<br />

when more <strong>LNG</strong> vessels, which depend<br />

on the availability of adequate<br />

refuelling stations in ports, will<br />

enter service.<br />

Current developments show<br />

that access to <strong>LNG</strong> bunkering<br />

is developing.<br />

A number of <strong>LNG</strong> ports offer or plan<br />

to offer <strong>LNG</strong> facilities, particularly in<br />

Northern Europe:<br />

••<br />

<strong>In</strong> 2011, a new <strong>LNG</strong> terminal by<br />

Linde was officially opened in<br />

Nynäshamn, south of Stockholm.<br />

••<br />

Vopak teamed up with Swedegas<br />

to develop the <strong>LNG</strong> terminal in<br />

Gothenborg.<br />

••<br />

Vopak and Gasunie are developing<br />

an <strong>LNG</strong> Break Bulk facility in the<br />

Port of Rotterdam, as a spin-off<br />

from Gate terminal.<br />

••<br />

The Netherlands is implementing<br />

four different projects along the<br />

Rhine to provide <strong>LNG</strong> refuelling<br />

stations for inland vessels.<br />

••<br />

Gasnor will soon be making <strong>LNG</strong><br />

available at the German port of<br />

Brunsbüttel. <strong>In</strong>itially, the company<br />

will supply <strong>LNG</strong> by truck and then<br />

possibly build a small terminal in<br />

the future, provided that demand<br />

develops accordingly.<br />

••<br />

<strong>GL</strong> is currently working with the<br />

Hamburg Port Authority to explore<br />

options for offering <strong>LNG</strong> as ship<br />

fuel in Hamburg.<br />

••<br />

An <strong>LNG</strong> bunker facility is planned<br />

for Singapore at the end of 2014<br />

to serve small-scale distribution<br />

in Asia.<br />

••<br />

bremenports has announced that<br />

an <strong>LNG</strong> bunker station will be built<br />

in Bremerhaven in cooperation<br />

with Bomin Linde.<br />

12 02 I 2013


<strong>LNG</strong> BUNKERING – SAFE AND RELIABLE SUPPLY<br />

Main bunkering options<br />

Apart from specific <strong>LNG</strong> ports, which will only be feasible in the long term, re-export from<br />

existing large-scale <strong>LNG</strong> terminals or <strong>LNG</strong> bunker vessels are two viable options for<br />

feeding the <strong>LNG</strong> supply chain today.<br />

Small-scale <strong>LNG</strong> carriers<br />

(between approx. 10,000 m 3 and<br />

20,000 m 3 loading capacity), built<br />

for regional supply, will be the link<br />

between liquefaction plants or<br />

re-export terminals and dedicated<br />

bunkering locations. A number of<br />

small <strong>LNG</strong> carriers are already in<br />

service, and further newbuildings<br />

are under construction.<br />

The last step of supplying <strong>LNG</strong> to the<br />

end user will require <strong>LNG</strong> bunker<br />

vessels, which are still to be built.<br />

This involves the direct bunkering of<br />

gas-fuelled ships, using gas carriers<br />

or special barges for refuelling, provided<br />

they are properly equipped and<br />

are able to carry enough gas for large<br />

ships. At the moment, bunkering<br />

takes place at specially equipped gas<br />

terminals during dedicated refuelling<br />

timeslots for the limited number of<br />

vessels operating on <strong>LNG</strong> as fuel, and<br />

the vessels are taken out of service<br />

for bunkering. However, several bunker<br />

vessel designs for <strong>LNG</strong> feeder<br />

carriers, in accordance with the<br />

IGC Code requirements, have been<br />

published and can be built today.<br />

Eventually, there will be an <strong>LNG</strong> bunkering<br />

procedure that follows the<br />

same pattern as that of heavy fuel<br />

oil – customers will expect a similarly<br />

convenient bunkering, including an<br />

acceptable time frame and guarantees<br />

for the safety of crew and passengers.<br />

It is the upcoming challenge to develop<br />

an <strong>LNG</strong> bunkering system that<br />

covers all organisational, safety and<br />

technical aspects and requirements.<br />

Supply chain<br />

options for <strong>LNG</strong><br />

as ship fuel<br />

local lng<br />

production plant<br />

small<br />

lng tanker<br />

lng<br />

import &<br />

export<br />

terminal<br />

local lng<br />

storage<br />

lng bunker vessel<br />

lng end user<br />

... Future streamlined supply option<br />

02 I 2013 13


Germanischer Lloyd<br />

<strong>Focus</strong> on safety issues<br />

“Throughout the <strong>LNG</strong> bunkering chain, each element should be carefully designed,<br />

and has dedicated safety and operational procedures executed by trained personnel.”<br />

TThis is the ultimate aim of all<br />

studies, research and development<br />

projects for the bunkering of <strong>LNG</strong>.<br />

Protecting the life of crew, the environment<br />

and assets is of paramount<br />

importance. Therefore, Germanischer<br />

Lloyd has also taken a close look at<br />

the potential risks associated with<br />

bunkering gas.<br />

Bunkering of <strong>LNG</strong> presents a number<br />

of safety issues due to the cryogenic<br />

character of <strong>LNG</strong>. At –163°C, it is<br />

capable of crippling steel structures<br />

if spilled, after which it will rapidly<br />

evaporate. Furthermore, this evaporation<br />

would produce a highly inflammable<br />

cloud of gas, which any nearby<br />

sources of ignition could cause to<br />

catch fire. The main focus of current<br />

research is, therefore, on measures<br />

to reduce and ultimately avoid any<br />

<strong>LNG</strong> spillage during bunkering. This<br />

includes technical measures as well<br />

as procedures and training for the<br />

personnel involved.<br />

One example of research that Germanischer<br />

Lloyd is currently undertaking<br />

to examine safety issues while<br />

bunkering <strong>LNG</strong> is the Clean North<br />

Sea Shipping (CNSS) project. Within<br />

this project, <strong>GL</strong> is analysing <strong>LNG</strong> bunkering<br />

processes in port and nautical<br />

risks for safer and more cost-efficient<br />

shipping in the northern waters.<br />

CNSS is an EU Commission-funded<br />

joint project for an <strong>LNG</strong> bunker<br />

showcase. Two main risk areas for<br />

<strong>LNG</strong> leakage have been identified<br />

and further examined: during bunkering<br />

and collision. Preliminary results<br />

of studies by <strong>GL</strong> experts have<br />

already provided helpful risk control<br />

options for carriers. These results,<br />

such as using defined bunkering<br />

areas and QD/CD and ESD couplings<br />

to prevent collisions and leakages,<br />

take the industry a step closer to<br />

realising cost-efficient <strong>LNG</strong> solutions<br />

for the future of shipping in the<br />

North Sea area and beyond.<br />

The next steps for Germanischer<br />

Lloyd will include measuring the<br />

fluctuations in the amount of<br />

emission levels.<br />

14 02 I 2013


<strong>LNG</strong> BUNKERING – SAFE AND RELIABLE SUPPLY<br />

BunGas – ship-to-ship<br />

bunkering solution<br />

To date, standards for the bunkering and the interface between land-based<br />

<strong>LNG</strong> supply and consumers at different locations have not been finalised.<br />

TTo find a solution which can compete with fuel<br />

oil bunkering regarding time, location and procedure,<br />

the BunGas project was initiated by <strong>GL</strong> in 2011 – in<br />

conjunction with project partners: Meyer Shipyard,<br />

MAN Diesel, DNV, AIDA Cruises and Linde.<br />

BunGas will serve as the baseline for<br />

safe and competitive gas refuelling<br />

in European ports, applicable to all<br />

types of gas-fuelled ships.<br />

So far, standards for the bunkering and the interface<br />

between land-based <strong>LNG</strong> supply and consumers at different<br />

locations have not been finalised. BunGas had<br />

the objective to develop technical systems which can<br />

compete with fuel oil bunkering regarding time, location<br />

and procedure. The project serves as the baseline<br />

for safe and competitive gas refuelling in European<br />

ports in such a way that it can be applied to all types<br />

of gas-fuelled ships.<br />

On the basis of these requirements, the basic design<br />

of a bunker vessel with a suitable transfer system will<br />

be developed. One major challenge of bunker system<br />

design is safe <strong>LNG</strong> transfer within normal port limits<br />

and during normal harbour operation. Up until now,<br />

liquefied gas transfer has been limited to gas terminals<br />

for gas carriers or to special locations and dedicated<br />

refuelling time slots for the limited number of vessels<br />

operating with <strong>LNG</strong> as fuel.<br />

The BunGas project is designed to provide the overall<br />

technical basis for the design and operation of safe<br />

bunker stations onboard gas-fuelled commercial vessels<br />

and of the related bunker supply vessels.<br />

02 I 2013 15


Germanischer Lloyd<br />

EMSA study – <strong>LNG</strong><br />

bunkering in ports<br />

Because the use of <strong>LNG</strong> and research on gas fuel is growing so quickly, there is now the need to<br />

gain an overview of regulations and standards currently in place or in development and see where<br />

improvement is required.<br />

The European Maritime Safety<br />

Agency (EMSA) “Study on standards<br />

and rules for bunkering of gas-fuelled<br />

ships” focuses on an in-depth analysis<br />

of existing gaps in the regulatory<br />

framework for <strong>LNG</strong> bunkering as well<br />

as the different guidelines currently<br />

under development.<br />

The main objectives of<br />

this study are to:<br />

••<br />

provide a detailed analysis of the<br />

current applicable standards and<br />

the ongoing regulatory development<br />

on <strong>LNG</strong> bunkering<br />

••<br />

produce a draft set of a possible<br />

common EU-wide regulatory instrument<br />

in this field to assist the<br />

Commission in assessing whether<br />

the adoption of such standards<br />

are justified<br />

Port considerations<br />

When it comes to bunkering <strong>LNG</strong> as<br />

ship fuel in a port or harbour environment,<br />

there are several critical aspects<br />

to consider. However, one main consideration<br />

stands out above all: What<br />

to do in the event of a collision by<br />

which the integrity of the ship’s <strong>LNG</strong><br />

compartment is compromised? What<br />

is the probability of such an event,<br />

its consequences and the impact on<br />

adjoining port areas?<br />

These questions make clear: a risk<br />

management plan is absolutely necessary.<br />

Measures to mitigate consequences,<br />

local fire-fighting security<br />

and emergency response solutions<br />

all need to be addressed carefully<br />

and thoroughly. Restrictions to waterways<br />

and safety zones are two additional<br />

measures that need further<br />

consideration.<br />

Requirements for ship<br />

connections and safety<br />

To avoid major risk situations during<br />

the bunkering of <strong>LNG</strong>, not only do<br />

the ship’s connections need to be<br />

thoroughly secured, communication<br />

between all parties involved is also<br />

a significant aspect.<br />

Three safety aspects for<br />

ship-to-ship bunkering:<br />

••<br />

Mooring equipment – the vessels<br />

should be well secured and any<br />

forces which could act on the transfer<br />

system should be prevented<br />

••<br />

Process technical connections –<br />

fast and simple connectors make<br />

bunkering easier for the crew,<br />

leading to a reduction in the<br />

number of leakages<br />

16 02 I 2013


<strong>LNG</strong> BUNKERING – SAFE AND RELIABLE SUPPLY<br />

••<br />

Communication – monitoring systems<br />

(e.g. gas sensors and tank<br />

level monitoring pressure alarms)<br />

to avoid any leakage and detect<br />

any leakages<br />

<strong>In</strong> the event of an emergency, additional<br />

measures need to be taken.<br />

An emergency shutdown (ESD)<br />

system should be integrated into the<br />

connection between both ships and<br />

either ship should be able to activate<br />

it; emergency release couplings<br />

(ERCs), emergency release and automatic<br />

closing are necessary should<br />

forces act on the transfer system.<br />

Protective measures for the bunker<br />

station to counteract <strong>LNG</strong> leakage<br />

(e.g. drip tray with temperature monitoring)<br />

and secondary explosion<br />

protection, or reduction of ignition<br />

sources, in areas where <strong>LNG</strong> leakages<br />

could be expected likewise need to<br />

be considered.<br />

Requirements for crew<br />

and personnel<br />

The most advanced technology and<br />

strictest regulations are only as good<br />

as the people operating and adhering<br />

to them. Thus, crew and personnel<br />

need to be thoroughly trained to<br />

handle <strong>LNG</strong> as ship fuel.<br />

The general hazards of bunkering<br />

<strong>LNG</strong>, personal protective equipment<br />

(PPE) and emergency procedures<br />

need to be discussed at length and<br />

tested.<br />

The Standards of Training, Certification<br />

and Watchkeeping (STCW)<br />

should serve as the regulation,<br />

based on existing training requirements<br />

for gas carrier crews, with<br />

model courses to be developed.<br />

02 I 2013 17


Germanischer Lloyd<br />

18 02 I 2013


<strong>LNG</strong> BUNKERING – SAFE AND RELIABLE SUPPLY<br />

TEN-T – EU-wide <strong>LNG</strong> supply project<br />

Sea transport in general is an international undertaking, with various countries and waters<br />

around the globe playing their part. So particularly when it comes to <strong>LNG</strong>, it is essential that<br />

all stakeholders of the key regions are involved in supply solutions.<br />

For this very reason, the European<br />

Union established the trans-<br />

European transport network (TEN-T).<br />

This efficient group aims to break<br />

down the bottlenecks in the EU’s<br />

transport infrastructure to boost<br />

the future sustainability of the<br />

region’s intermodal networks. It<br />

has evolved from Europe 2020,<br />

the EU’s growth strategy for its<br />

Member States.<br />

<strong>In</strong> recent years, TEN-T has focused<br />

on supporting projects relating to<br />

<strong>LNG</strong> bunkering and supply within<br />

Europe. Just recently, it was announced<br />

that TEN-T will contribute<br />

1.2 million euros to conduct a study<br />

aimed at identifying and addressing<br />

potential barriers to the construction<br />

and operation of <strong>LNG</strong>-fuelled<br />

vessels. This is just another step<br />

towards realising full-scale <strong>LNG</strong><br />

for the maritime industry.<br />

Due to its low cost compared to<br />

conventional ship fuels and its<br />

environmentally friendly nature, <strong>LNG</strong><br />

is seen by the European Union as<br />

an attractive ship fuel of the future.<br />

Thus, the project will examine the<br />

technical requirements, regulations<br />

and environmental operation permits<br />

that need to be met to make<br />

the switch to <strong>LNG</strong>. Specific aspects<br />

related to the manufacturing, conversion,<br />

certification and operational<br />

phases of an <strong>LNG</strong>-fuelled ship will<br />

be analysed and the information exchanged<br />

with other ongoing <strong>LNG</strong>related<br />

projects as well as with EMSA.<br />

By involving shipowners, cargo<br />

owners, <strong>LNG</strong> suppliers, ports and<br />

marine equipment manufacturers,<br />

the project will:<br />

••<br />

prepare for the <strong>LNG</strong> certification<br />

process for vessels and operators<br />

••<br />

harmonise land and sea-based<br />

regulations and bunkering<br />

requirements<br />

••<br />

select and demonstrate environmentally<br />

efficient solutions for<br />

vessels<br />

••<br />

identify logistic solutions for<br />

energy efficiency<br />

••<br />

develop safe and efficient technologies<br />

for <strong>LNG</strong> bunkering and<br />

fuelled vessels<br />

••<br />

assess safety issues<br />

••<br />

coordinate with other initiatives<br />

and exchange results<br />

The project is scheduled for completion<br />

at the end of 2014. The results<br />

gained will contribute toward<br />

further advancing <strong>LNG</strong>-related projects<br />

involving Germanischer Lloyd.<br />

02 I 2013 19


Germanischer Lloyd<br />

BMVBS study – BUNKERING OF <strong>LNG</strong><br />

IN GERMAN PORTS<br />

Anticipating a growing global demand for natural gas, the German government sees <strong>LNG</strong> as<br />

having a promising future. Yet the infrastructure needed for <strong>LNG</strong> bunkering of ships in German<br />

sea and inland ports using special <strong>LNG</strong> bunkering vessels needs to be explored further.<br />

I<strong>In</strong> mid-2012, <strong>GL</strong> completed a<br />

feasibility study commissioned by the<br />

German Federal Ministry of Transport,<br />

Building and Urban Development<br />

(BMVBS).<br />

The study investigates the existing<br />

<strong>LNG</strong> infrastructure in Northern Europe<br />

and Germany, proposes an <strong>LNG</strong><br />

bunkering logistics concept, and<br />

examines a specific ship-to-ship bunkering<br />

interface design to assess the<br />

risks. Finally the study presents a draft<br />

safety concept, which accounts for<br />

legislative and competency considerations,<br />

to provide the responsible<br />

authorities with a basis for further<br />

action.<br />

To enable <strong>LNG</strong> bunkering in German<br />

ports, the country needs to build a<br />

supply infrastructure. One option<br />

would be to adopt the Norwegian<br />

method of distributing <strong>LNG</strong> via small-<br />

scale <strong>LNG</strong> carriers, with short-term<br />

<strong>LNG</strong> storage provided by suitable<br />

in-port terminals. The study includes<br />

an in-port <strong>LNG</strong> infrastructure concept<br />

using Hamburg as a reference port,<br />

and accounting for the relevant legal<br />

conditions. As a general conclusion,<br />

the authorities will face considerable<br />

challenges finding appropriate inport<br />

locations for a short-term storage<br />

terminal, the standby berth for<br />

the bunkering vessel and additional<br />

areas for maintaining and commissioning<br />

gas-handling systems.<br />

The study provides a technical concept<br />

for ship-to-ship bunkering of<br />

<strong>LNG</strong> based on an <strong>LNG</strong> bunkering<br />

ship designed by TGE. The concept<br />

reveals the basic engineering challenges<br />

inherent in bunkering liquefied<br />

gases. One of the core assumptions<br />

was that the system should be designed<br />

to allow simultaneous bunker-<br />

ing and cargo loading/unloading.<br />

An evaluation of the technical feasibility<br />

of <strong>LNG</strong> bunkering showed<br />

that the required technology as well<br />

as comprehensive <strong>LNG</strong> handling experience<br />

are already available today.<br />

An analysis of hazards involved in<br />

refuelling an <strong>LNG</strong>-powered ship from<br />

a bunkering vessel revealed a number<br />

of potential errors that could increase<br />

the associated risk. These mainly<br />

include inadequate communication<br />

between the two ships, personnel<br />

falling over board and <strong>LNG</strong> leakage<br />

while bunkering. A ship collision<br />

might cause the refuelling hose to<br />

break or a tank to suffer damage.<br />

<strong>In</strong> the event of hose breakage, the<br />

amount of leakage could be minimised<br />

effectively by a fast-acting<br />

safety chain that would keep the<br />

hazardous effects within controllable<br />

limits.<br />

20 02 I 2013


<strong>LNG</strong> BUNKERING – SAFE AND RELIABLE SUPPLY<br />

With the results of the study in mind,<br />

Germanischer Lloyd is now currently<br />

contributing to the development of<br />

a draft for a European directive by<br />

which inland waterway vessels would<br />

be permitted to load <strong>LNG</strong>, as well<br />

as a standard for the use of <strong>LNG</strong> as<br />

ship fuel. <strong>GL</strong> estimates that the drafts<br />

for both the directive and the standard<br />

will not be completed until after<br />

2015. Until then, there is discussion<br />

concerning handling facilities and<br />

bunker storage in Lübeck and Rostock,<br />

as well as a bunkering option for<br />

ships in Brunsbüttel, near Hamburg.<br />

<strong>In</strong> addition to that, Bomin Linde<br />

GmbH has announced the erection<br />

of small bunker storage facilities in<br />

Bremerhaven and Hamburg, to be<br />

completed in 2014.<br />

02 I 2013 21


<strong>LNG</strong>-FUELLED SHIPS –<br />

RESEARCH FINDINGS<br />

Research<br />

paves the way<br />

<strong>GL</strong> has taken a strong stance in support of <strong>LNG</strong><br />

technology. “We believe that we can be a driving<br />

force in this area, and have become involved in a number<br />

of activities, such as research, the development<br />

of rules and design concepts, and some initial commercial<br />

applications,” says Dr Pierre C. Sames, Senior<br />

Vice President, Strategic Research and Development<br />

for Germanischer Lloyd. “It is very satisfying for us<br />

to contribute to this development, to truly inspire<br />

people to use the technology and to engage with<br />

us to implement it.”


Germanischer Lloyd<br />

GasPax – <strong>LNG</strong> for passenger ships<br />

<strong>LNG</strong> is not just a promising ship fuel of the future for large container vessels and similar.<br />

Passenger ships, too, can benefit from gas fuel. Thus, further research regarding <strong>LNG</strong><br />

and its safety for these ship types is needed.<br />

As a response, the GasPax<br />

project was initiated by Meyer Werft,<br />

Lürssen, TGE Marine Gas Engineering<br />

and <strong>GL</strong> in 2009, and is funded by the<br />

German government. Over the course<br />

of four years, GasPax assessed the<br />

potential of gas as ship fuel for three<br />

specific ship types: a mega yacht, a<br />

cruise ship and a RoPax ferry.<br />

<strong>In</strong> all three of the ships, <strong>LNG</strong> is used<br />

as fuel for dual-fuel engines. These<br />

engines can be used with <strong>LNG</strong> or<br />

diesel to afford greater flexibility and<br />

redundancy. <strong>GL</strong> collaborated to develop<br />

Hazard Identification (HAZID)<br />

studies, which are used to test the<br />

three concepts developed for their<br />

viability and safety. Project teams<br />

identified potential failures and risks<br />

associated with the three different<br />

ship designs via Failure Mode and<br />

Effects Analyses (FMEA).<br />

Although passenger ferries are not<br />

yet subject to the incoming Energy<br />

Efficiency Design <strong>In</strong>dex (EEDI) regulations,<br />

<strong>LNG</strong> enjoyed a significant advantage<br />

over fuel oil – for instance,<br />

the RoPax ferry attained an EEDI of<br />

some 26%. The extra costs of an <strong>LNG</strong><br />

installation had a payback time of<br />

one-and-a-half to two years, and the<br />

reduced emissions to air saved consid-<br />

erable external costs compared to<br />

using conventional fuels – an important<br />

factor in an increasingly stringent<br />

regulatory environment.<br />

The cruise industry is also likely to<br />

move towards <strong>LNG</strong>, with newbuildings<br />

planned for the near future. With<br />

a North American Emission Control<br />

Area (ECA), which entered into force<br />

last year, <strong>LNG</strong> offers cruise lines a<br />

cleaner fuel both in protected marine<br />

environments and during port visits.<br />

The same can be said for the mega<br />

yacht. A dual-fuel system gives yacht<br />

owners the same flexibility and useability<br />

as a conventional-fuel design.<br />

24 02 I 2013


<strong>LNG</strong>-FUELLED SHIPS – RESEARCH FINDINGS<br />

The Type C tanks in all of the GasPax<br />

project’s designs offered the important<br />

of being inherently safe under<br />

the IGC Code. The chosen Type C<br />

tanks have a design pressure of 8–10<br />

bar and could easily be able to hold<br />

3,500 m 3 of <strong>LNG</strong> or more.<br />

Most existing <strong>LNG</strong>-fuelled vessels<br />

typically use highly efficient vacuuminsulated<br />

tanks operating at 6–8 bar<br />

and with a typical design pressure<br />

of 10 bar. This is a potential solution<br />

for tanks up to 1,000 m 3 .<br />

<strong>In</strong> late 2012, Germanischer Lloyd<br />

presented the partners of the GasPax<br />

project – Flensburger Schiffbau-Gesellschaft,<br />

Lürssen, Meyer Werft, and<br />

TGE Marine Gas Engineering – with<br />

Approval-in-Principle Certificates,<br />

recognising the technical<br />

feasibility of the<br />

designs. The<br />

awarding<br />

of the<br />

certificates<br />

showed once<br />

again that there<br />

are market-ready designs available<br />

for owners to take the next step and<br />

move to <strong>LNG</strong>.<br />

W<br />

MariTIM – <strong>LNG</strong> passenger vessel<br />

Due to its large number of sea-going ships, the northwest area of Europe – mainly<br />

the Netherlands and Germany – is ideal for <strong>LNG</strong>. However, the infrastructure and<br />

legal framework for this area needs further exploration.<br />

Within the context of the German–Dutch cooperation<br />

project MariTIM, which is being coordinated by<br />

MARIKO in cooperation with the TechnologieCentrum<br />

Noord-Nederland (TCNN), a feasibility study is being<br />

worked on for conversion of the “MS Ostfriesland” ferry.<br />

Apart from the technical feasibility, the infrastructure and<br />

legal conditions for use and bunkering of <strong>LNG</strong> are being<br />

examined. The activities are taking place in close collaboration<br />

with the Dutch partners, as the topic of <strong>LNG</strong> has<br />

been a subject of intensive debate in the Netherlands for<br />

some time now.<br />

The aims of the MariTIM <strong>LNG</strong> Passenger Vessel project are:<br />

••<br />

Protection of ecologically sensitive wetlands by establishing<br />

a sustainable marine propulsion technology<br />

••<br />

Reinforcement of competitiveness of the passenger<br />

shipping industry in the German–Dutch border area<br />

••<br />

Examination of the technical and economic feasibility<br />

of an <strong>LNG</strong>–electric propulsion system in passenger<br />

shipping<br />

• • <strong>In</strong>novation leadership with regard to the development<br />

of <strong>LNG</strong>–electric passenger shipping<br />

02 I 2013 25


Germanischer Lloyd<br />

<strong>GL</strong>/MAN study – costs and<br />

benefits of <strong>LNG</strong><br />

As <strong>LNG</strong> is gaining more attention, shipowners interested in <strong>LNG</strong> as ship fuel are facing a number<br />

of questions regarding the costs and possible benefits of using such technology.<br />

Therefore, in 2011, <strong>GL</strong> and<br />

MAN carried out a more systematic<br />

joint study to thoroughly assess the<br />

costs and benefits of <strong>LNG</strong> as ship<br />

fuel for container vessels. It strives<br />

to answer shipowners questions regarding<br />

whether exhaust gas treatment<br />

systems could be the preferred<br />

technical solution. At the same time,<br />

increasing ship efficiency with advanced<br />

waste heat recovery systems<br />

is becoming feasible. This suite of<br />

technologies is the focus of the<br />

<strong>GL</strong>/MAN joint study on container<br />

vessel power generation systems.<br />

Approach<br />

The study assumes costs for key technologies<br />

when applied to five differently<br />

sized container vessels and<br />

predicts their benefits in comparison<br />

to a reference vessel. The reference<br />

vessel uses marine fuel oil as required<br />

by existing and upcoming regulations<br />

depending on the time and location<br />

of its operation i.e. the reference<br />

vessel uses MGO when inside an ECA<br />

by 2015 or within EU ports. Outside<br />

an ECA, HFO is used and a lowsulphur<br />

heavy fuel oil (LSHFO) with<br />

max. 0.5% sulphur content by 2020.<br />

Costs for implementing the technologies<br />

are compared with expected<br />

benefits which are driven by fuel cost<br />

differences. The model assumes that<br />

the fuel with the lowest cost is always<br />

used if a choice is possible. Space<br />

required by the technologies is taken<br />

into account by reducing the benefit.<br />

26 02 I 2013


<strong>LNG</strong>-FUELLED SHIPS – RESEARCH FINDINGS<br />

payback (months)<br />

84<br />

72<br />

60<br />

48<br />

36<br />

24<br />

12<br />

0<br />

Payback for <strong>LNG</strong> system (starting in 2015)<br />

• 2,500 TEU • 4,600 TEU • 8,500 TEU • 14,000 TEU • 18,000 TEU<br />

Larger ECA shares unlikely for larger vessels<br />

10% 20% 30% 40% 50% 60%<br />

Share of operation inside ECA<br />

payback (months)<br />

144<br />

132<br />

120<br />

108<br />

96<br />

84<br />

72<br />

60<br />

48<br />

36<br />

24<br />

12<br />

0<br />

Payback for <strong>LNG</strong> system (starting in 2015)<br />

ECA operation share varies for ship size<br />

• 2,500 TEU<br />

• 4,600 TEU<br />

• 8,500 TEU<br />

• 14,000 TEU<br />

• 18,000 TEU<br />

-6 -4 -2 0 2<br />

Fuel price differential (<strong>LNG</strong>-HFO) in $/mmBTU<br />

4 6<br />

Four technology variants were<br />

investigated in the study:<br />

1. Exhaust gas cleaning by<br />

“scrubber”<br />

2. Scrubber plus Waste Heat<br />

Recovery (WHR)<br />

3. <strong>LNG</strong> system (bunker station,<br />

tank, gas preparation, gas line,<br />

dual-fuel engines)<br />

4. <strong>LNG</strong> system plus WHR<br />

For each technology variant, costs and<br />

space requirements were estimated<br />

and specific fuel oil consumption<br />

was based on current knowledge.<br />

Estimates were independently made<br />

for each selected container vessel<br />

size. The same measures to reduce<br />

NO x emissions to IMO Tier III levels<br />

were assumed for the reference<br />

vessel and each technology variant<br />

and, therefore, these have no effect<br />

on the cost differences between the<br />

reference vessel and the variants.<br />

Ship size variants and<br />

route profiles<br />

Five representative vessel sizes were<br />

selected for the study. Assumed design<br />

speeds account for the current<br />

trend towards lower speeds.<br />

Round trips were selected for three<br />

trades: intra-European, Europe–Latin<br />

America and Europe–Asia. The ECA<br />

exposure was used as the primary<br />

input parameter.<br />

Conclusions of the study<br />

Using <strong>LNG</strong> as ship fuel promises<br />

less emissions and, given the right<br />

circumstances, less fuel costs. The<br />

attractiveness of <strong>LNG</strong> as ship fuel<br />

compared to scrubber systems is<br />

dominated by three parameters:<br />

1. Share of operation inside ECA<br />

2. Price difference between<br />

<strong>LNG</strong> and HFO<br />

3. <strong>In</strong>vestment costs for<br />

<strong>LNG</strong> tank system<br />

With 65% ECA exposure, an <strong>LNG</strong>system<br />

payback time under two<br />

years is predicted for the smaller<br />

vessel sizes (using the standard<br />

fuel price scenario).<br />

payback (months)<br />

84<br />

72<br />

60<br />

48<br />

36<br />

24<br />

12<br />

0<br />

Payback for <strong>LNG</strong> system (starting in 2015)<br />

• 2,500 TEU<br />

ECA operation share varies for ship size<br />

• 4,600 TEU<br />

• 8,500 TEU<br />

• 14,000 TEU<br />

• 18,000 TEU<br />

1,000 2,000 3,000 4,000 5,000<br />

Specific cost for <strong>LNG</strong> tank system (in $/m 3 )<br />

For the 2,500 TEU vessel, a comparison<br />

of payback times for the<br />

scrubber and for the <strong>LNG</strong> system, >><br />

02 I 2013 27


Germanischer Lloyd<br />

>><br />

and varying <strong>LNG</strong> prices, shows that<br />

the <strong>LNG</strong> system is attractive as long<br />

as <strong>LNG</strong> (delivered to the ship) is as<br />

expensive as or cheaper than HFO<br />

when the fuels are compared on<br />

their energy content.<br />

For larger vessels typically operating<br />

at smaller ECA shares, e.g. the<br />

14,000 TEU vessel, the <strong>LNG</strong> system<br />

has the shortest payback time (when<br />

the standard fuel price scenario is<br />

used), and the use of a WHR system<br />

further reduces the payback time.<br />

The price of <strong>LNG</strong> delivered to the<br />

ship is difficult to predict. Base <strong>LNG</strong><br />

prices vary from the USA to Japan<br />

by a factor of four. European base<br />

<strong>LNG</strong> prices appear attractive at<br />

around 10 USD/mm BTU even with<br />

small-scale distribution costs added.<br />

An <strong>LNG</strong> price of up to 15 USD/mmBTU<br />

could give <strong>LNG</strong> systems a competitive<br />

advantage against scrubbers in terms<br />

of payback for the smaller vessels<br />

considered in this study.<br />

Small-scale <strong>LNG</strong> distribution is just<br />

starting to become available in<br />

Europe (outside Norway) and it<br />

remains to be seen which <strong>LNG</strong>-fuel<br />

price levels will be established.<br />

For a more detailed report on the<br />

<strong>GL</strong>/MAN study, please see: “Costs<br />

and benefits of <strong>LNG</strong> as ship fuel for<br />

container vessels. Key results from<br />

a <strong>GL</strong> and MAN joint study” at<br />

www.gl-group.com/lng<br />

Extension for container<br />

feeder vessels<br />

Container feeder vessels operating<br />

in ECAs are seen as potential early<br />

adopters of <strong>LNG</strong> technology. Therefore,<br />

just recently, an extension of<br />

the <strong>GL</strong>/MAN study was performed<br />

to assess the costs and benefits of<br />

both <strong>LNG</strong> and scrubber technology<br />

as applied to six differently sized<br />

feeder vessels in comparison with<br />

a reference vessel using marine<br />

fuel oil.<br />

The results showed that, for a<br />

1,250 TEU vessel using <strong>LNG</strong> or<br />

scrubber technology, significant<br />

annual cost advantages and rapid<br />

payback from 2015 onwards for<br />

ships operating exclusively inside<br />

28 02 I 2013


<strong>LNG</strong>-FUELLED SHIPS – RESEARCH FINDINGS<br />

Specific additional costs for <strong>LNG</strong> installation<br />

ECAs could be predicted. Payback<br />

time is shorter for the smaller container<br />

vessels (900 TEU and 1,250<br />

TEU) since the capital investment<br />

needed for their <strong>LNG</strong> systems is<br />

smaller than for larger vessels.<br />

USD/kw<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

$ $<br />

$ $<br />

$ $<br />

However, changes in <strong>LNG</strong> distribution<br />

costs will significantly affect<br />

payback: within ECAs, the fuel of<br />

choice is marine gas oil (MGO), and<br />

at current prices, the difference between<br />

MGO and <strong>LNG</strong> is significant<br />

enough to yield rapid payback for<br />

all vessel sizes. At a difference of<br />

6 USD/mmBTU to 8 USD/mmBTU or<br />

more between MGO and <strong>LNG</strong>, an<br />

<strong>LNG</strong> system will be more profitable<br />

than a scrubber system.<br />

mUSD<br />

0<br />

900 TEU 1,250 TEU 1,550 TEU 1,800 TEU 2,100 TEU 2,500 TEU<br />

Annual cost advantage for a 1,250 TEU<br />

container vessel compared to standard vessel<br />

using standard fuel<br />

8<br />

6<br />

4<br />

2<br />

0<br />

-2<br />

-4<br />

<strong>In</strong>vest<br />

Scrubber<br />

<strong>LNG</strong>-fuelled<br />

2015 2016 2017 2018 2019 2020<br />

100% ECAs, <strong>LNG</strong> at 13 USD/mmBTU<br />

02 I 2013 29


SUCCESS STORIES – A NEW ERA<br />

The future –<br />

today<br />

As <strong>GL</strong> experts continue their scientific research<br />

into <strong>LNG</strong> as a ship fuel, the first successful <strong>GL</strong>supported<br />

conversions and designs are starting a<br />

new era in shipping. These include the “Bit Viking”<br />

product tanker and the “STREAM” container vessel,<br />

just two examples of <strong>GL</strong>’s commitment to making<br />

<strong>LNG</strong> a reality. At the same time, <strong>GL</strong> has teamed up<br />

with a number of global players within the maritime<br />

industry to continue research on the feasibility<br />

of <strong>LNG</strong> as ship fuel for a number of vessel types.


Germanischer Lloyd<br />

Projects exploring<br />

<strong>LNG</strong> as ship fuel<br />

<strong>In</strong> collaboration with various partners, Germanischer<br />

Lloyd has proven to the maritime industry that <strong>LNG</strong> as<br />

ship fuel could well be the answer to ever-increasing<br />

costs for heavy fuel oil (HFO).<br />

DDaewoo Shipbuilding & Marine Engineering<br />

(DSME) and Germanischer Lloyd (<strong>GL</strong>) proved the feasibility<br />

of running large container vessels on <strong>LNG</strong> in a project<br />

completed in 2011. <strong>In</strong> recognition of the challenges<br />

ahead for shipping, <strong>GL</strong> and DSME have teamed up to<br />

start exploring technology options and safety concepts<br />

for large <strong>LNG</strong>-fuelled container vessels. As a result, <strong>GL</strong><br />

finished Approval in Principle of a 14,000 TEU <strong>LNG</strong>fuelled<br />

container vessel for DSME.<br />

Assessment of the safety performance of the gas supply<br />

system was the key aspect of <strong>GL</strong>’s contribution to<br />

the project.<br />

For the Finnish Ministry of <strong>In</strong>terior, <strong>GL</strong> has classed its<br />

first <strong>LNG</strong>-fuelled marine pollution prevention vessel.<br />

The vessel is powered by one dual-fuel main engine<br />

driving a controllable pitch propeller (CPP), plus two<br />

dual-fuel generator sets for electrical supply, which<br />

also serve as supply two-pod drives for propulsion.<br />

The harbour generator is likewise a dual-fuel engine.<br />

Source: DSME<br />

ME-GI Engine<br />

DF/Gas Engine Generator<br />

HIVAR Fuel Gas Supply System<br />

ACTIB <strong>LNG</strong> Tank<br />

Most recently, <strong>GL</strong> completed a joint development project<br />

with Japan-based IHI Marine United <strong>In</strong>c. (IHIMU).<br />

The project focused on a concept study for a 13,000 TEU<br />

container vessel fuelled by <strong>LNG</strong> – in particular the <strong>LNG</strong><br />

fuelling system consisting of the bunker station, tanks,<br />

gas preparation and gas lines. IHIMU designed the key<br />

structures of the system with <strong>GL</strong> providing design review,<br />

hazard identification, and Approval in Principle of the<br />

<strong>LNG</strong> fuel supply system design.<br />

Furthermore, the class notation includes a dynamic<br />

positioning system with CPPs, two podded propulsors<br />

and thrusters. Vessel capabilities range from oil and<br />

chemical recovery capacity, highest ice class and helicopter<br />

operations, including refuelling, to towing, fire<br />

fighting, crane operations and small craft operations.<br />

The vessel is currently being built by STX Finland and<br />

will be launched in 2013.<br />

32 02 I 2013


SUCCESS STORIES – A NEW ERA<br />

“Bit Viking” – world’s first<br />

<strong>LNG</strong>-fuelled tanker<br />

The “Bit Viking” is the result of <strong>GL</strong>’s participation in the conversion of an existing oil-burning<br />

engine into a dual-fuel one that can burn either fuel oil or gas. The project has put the <strong>GL</strong> <strong>Group</strong><br />

centre stage in the development of <strong>LNG</strong>-fuelled vessels.<br />

Source: Tarbit Shipping AB<br />

Because of its broad <strong>LNG</strong><br />

expertise, <strong>GL</strong>, as the ship‘s classification<br />

society, was also chosen for the<br />

classification part of the conversion.<br />

Furthermore, Germanischer Lloyd<br />

staff played a critical role in the<br />

processes at the shipyard: monitoring<br />

the manufacture and installation<br />

of the components, such as piping,<br />

valves, safety equipment and <strong>LNG</strong><br />

tanks, and ensuring safe construction,<br />

use of suitable materials and<br />

application of appropriate welding<br />

methods.<br />

Official sea trial<br />

The two main engines were converted<br />

from Wärtsilä type 46 D to type<br />

50 DF. Upon completion of the<br />

pipe installation, and testing and<br />

calibration of the newly installed<br />

equipment, the “Bit Viking” was<br />

ready for its first bunkering of <strong>LNG</strong>.<br />

At the end of October 2011, the<br />

“Bit Viking” was finally ready for<br />

its official sea trial, during which<br />

the ship performed with no major<br />

discrepancies.<br />

Key concerns in this world premiere<br />

were the proper interpretation of<br />

class rules for safe construction, ensuring<br />

that the equipment manufacturers<br />

clearly understood the class<br />

rules, and anticipating how the flag<br />

administration would understand<br />

and accept the required risk analysis.<br />

The conversion of the “Bit Viking”<br />

provided a good opportunity to put<br />

the <strong>GL</strong> Rules for gas as ship fuel to<br />

the test.<br />

Environmental footprint<br />

Since conversion, the “Bit Viking” has<br />

proven to reduce greenhouse gases<br />

by 20% to 25% and NO X gases by<br />

90%. Sulphur output has been cut<br />

entirely, and particle emissions have<br />

been brought down by 99%. The<br />

owner, Sweden’s Tarbit Shipping, is<br />

very pleased with the environmental<br />

footprint of their newly converted<br />

vessel. The “Bit Viking” is now<br />

trading the extreme length of the<br />

Norwegian coast between Oslo and<br />

Kirkenes on behalf of oil major<br />

Statoil.<br />

>><br />

02 I 2013 33


Germanischer Lloyd<br />

>><br />

The latest milestone in the “Bit<br />

Viking” project: the first Clean<br />

Shipping <strong>In</strong>dex (CSI) verification,<br />

which <strong>GL</strong> undertook.<br />

<strong>GL</strong> issued the vessel a Statement of<br />

Compliance, confirming that the<br />

data submitted by owner Tarbit Shipping<br />

meets the requirements of the<br />

<strong>In</strong>dex, an essential step for ensuring<br />

the usefulness and transparency of<br />

the data provided for the new project.<br />

The CSI is a Web-based tool which<br />

allows ship operators to voluntarily<br />

submit data on the environmental<br />

parameters of their ships and receive<br />

a ranking based on the overall performance<br />

of the vessel. Operators<br />

can also choose to have this data<br />

verified by a third party. The <strong>In</strong>dex<br />

takes a number of criteria into account,<br />

including pollutants released<br />

into the air – such as carbon and<br />

sulphur dioxides, particulate matter<br />

and nitrogen oxides – and into the<br />

water, as well as the chemicals used<br />

onboard and operationally.<br />

The CSI’s scoring system gives the<br />

vessel a ranking, which then gives a<br />

complete picture of a vessel’s impact<br />

on the environment. Cargo owners<br />

are then able to use the database<br />

to assess shippers in terms of their<br />

environmental performance – a valuable<br />

addition to the information<br />

which they can then use to select<br />

firms to fulfil their charters.<br />

“STREAM” – <strong>LNG</strong>-powered<br />

container vessel<br />

A new <strong>GL</strong>-approved design from IPP <strong>In</strong>genieur Partner Pool is now<br />

ready for the market. The concept is for a range of liner or feeder<br />

vessels for worldwide service.<br />

F<br />

Cargo loading<br />

From this range, TECHNOLOG,<br />

as responsible marketing partner of<br />

IPP, has presented an <strong>LNG</strong>-powered,<br />

fully cellular and hatchcoverless container<br />

vessel: the “STREAM 4200<br />

<strong>LNG</strong>”. The concept has been assessed<br />

by <strong>GL</strong> and given an Approval-in-<br />

Principle Certificate. Its 32.25-metre<br />

beam allows passage through the<br />

existing Panama Canal locks. A<br />

draft of 10.50 m to 12.00 m means<br />

the vessel can operate worldwide,<br />

including through the Kiel Canal<br />

(future dimensions) between the<br />

Baltic and North Sea. The layout can<br />

be configured to suit multiple shipping<br />

routes with optimal flexibility,<br />

as it is based on existing technology.<br />

The design of the vessel has been<br />

optimised so as to be able to handle<br />

the full range of container sizes in<br />

use today. Apart from this adaptability<br />

in sizing, the container stacks<br />

on the deck of the vessel are laid<br />

out to achieve higher stack weights<br />

and enable individual storage patterns<br />

and loading operations for<br />

each individual cell.<br />

Bunkering system<br />

The <strong>LNG</strong> fuel systems for the<br />

“STREAM” were developed jointly<br />

with TGE Marine Gas Engineering<br />

and include a fixed bunker tank<br />

34 02 I 2013


SUCCESS STORIES – A NEW ERA<br />

Source: iPP/Technolog<br />

<strong>GL</strong> Class Notation for the STREAM<br />

7 100 A5 CONTAINER SHIP, HATCHCOVERLESS,<br />

DG, IW, ERS, HLP, BWM, NAV-OC<br />

7 MC, AUT, RCPx/y, GF, EP<br />

DG Dangerous Goods<br />

IW <strong>In</strong>-Water Survey<br />

ERS Emergency Response Service<br />

HLP Hull Lifecycle Programme<br />

BWM Ballast Water Management<br />

NAV-OC Bridge Design One-Man Control Console –<br />

Ocean and Coastal Waters<br />

AUT Unattended Machinery Space<br />

RCP Refrigerated Cargo Protection<br />

GF Gas as Fuel<br />

EP Environmental Passport<br />

EEDI Calculations<br />

inside the vessel and a novel portable<br />

deck-mounted <strong>LNG</strong> tank system<br />

which can be used to provide extra<br />

capacity. For fuel supply, the <strong>LNG</strong><br />

containers will be connected to a<br />

newly developed docking station.<br />

One of the most important factors<br />

of new <strong>LNG</strong>-fuelled vessels is the<br />

safety and reliability of <strong>LNG</strong> bunkering<br />

systems. There must be no spillage,<br />

and the “STREAM” illustrates<br />

that these systems are now being<br />

implemented.<br />

The entire vessel design concept is<br />

focused around saving energy. A<br />

single screw is directly driven by a<br />

dual-fuel, two-stroke, 22.9 MW<br />

engine developed specifically for<br />

<strong>LNG</strong> applications by MAN. The same<br />

gas fuel supply system is used for the<br />

auxiliary power generators and boilers.<br />

Exhaust gas boilers and waste heat<br />

recovery equipment are installed.<br />

Beyond merely saving fuel, the<br />

efficiency of the propulsion system<br />

means that a “STREAM” ship can<br />

operate in a wide variety of ways.<br />

When loaded to medium draft, the<br />

main engine can provide all of<br />

the vessel’s required electric and<br />

propulsive power. When needed,<br />

the auxiliary engines can generate<br />

additional power for added speed<br />

or to boost power in poor weather<br />

conditions. As a whole, the design<br />

and operational features result in<br />

a significant reduction in fuel consumption<br />

compared to any designs<br />

running on standard fuel.<br />

With some extra initial investment,<br />

the vessel can take advantage of a<br />

waste heat recovery system (WHRS)<br />

for even greater fuel efficiency. An<br />

exhaust gas boiler system can be<br />

installed that feeds a MAN Diesel &<br />

Turbo turbo-generator set for electric<br />

power generation. An optional<br />

“minimum fuel-controlled” power<br />

management system from Siemens<br />

can further reduce fuel consumption,<br />

thereby cutting overall energy costs.<br />

Estimates suggest that the slightly<br />

higher initial costs of installing such<br />

a system will pay off in approximately<br />

four to six years depending on<br />

ECA zone application and fuel price<br />

development.<br />

Future-proofed<br />

As currently configured, the “STREAM”<br />

already meets all of the coming<br />

regulations to control air emissions<br />

from shipping. <strong>In</strong> addition, “STREAM”<br />

ships boast an EEDI, based on<br />

preliminary calculations, that is<br />

significantly beneath the required<br />

baseline for 2025. Looking ahead to<br />

2020, projections suggest that when<br />

comparing the operation of the<br />

“STREAM” against a conventional<br />

vessel in an Emissions Control Area<br />

(ECA), a conservative estimate of<br />

fuel cost savings of around 30%<br />

can be achieved.<br />

02 I 2013 35


Germanischer Lloyd SE, Global Sales<br />

Brooktorkai 18<br />

20457 Hamburg, Germany<br />

Phone: +49 40 36149 6397<br />

www.gl-group.com<br />

Germanischer Lloyd SE<br />

Gas Technology<br />

Henning Pewe<br />

Phone: +49 40 36149-653<br />

ptp-gastechnology@gl-group.com<br />

Copenhagen<br />

Hamburg<br />

Piraeus<br />

Houston<br />

Dubai<br />

Shanghai<br />

Singapore<br />

Global Sales Offices<br />

Americas<br />

North / East Europe<br />

Middle East / Africa<br />

Mainland China<br />

Germanischer Lloyd (USA), <strong>In</strong>c<br />

Germanischer Lloyd Denmark A/S<br />

Germanischer Lloyd SE Branch Office Dubai<br />

Germanischer Lloyd (China) Co., Ltd.<br />

1155 Dairy Ashford Rd.<br />

Amager Strandvej 390<br />

White Crown Bldg., Room No. 402<br />

Shanghai Central Plaza, Room 1201<br />

Suite 315<br />

2770 Kastrup<br />

PO Box 8015, Sheikh Zayed Road<br />

381, Huaihai M. Road<br />

Houston, TX USA 77079<br />

Denmark<br />

Dubai, United Arab Emirates<br />

200020 Shanghai, China<br />

Phone: +1 832 320 4658<br />

Phone: +48 91 4315302<br />

Phone: +971 4 3328842 200<br />

Phone: +86 21 233 087 61<br />

gs-am@gl-group.com<br />

gs-ne@gl-group.com<br />

gs-me@gl-group.com<br />

gs-cn@gl-group.com<br />

Central Europe<br />

Southern Europe<br />

Asia / Pacific<br />

Germanischer Lloyd SE<br />

Brooktorkai 18<br />

20457 Hamburg, Germany<br />

Phone: +49 40 36149 3738<br />

gs-ce@gl-group.com<br />

Germanischer Lloyd Hellas M.E.P.E<br />

85 Akti Miaouli<br />

185 38 Piraeus, Greece<br />

Phone: +30 210 429 0373<br />

gs-se@gl-group.com<br />

Germanischer Lloyd Singapore Pte Ltd<br />

180 Clemenceau Avenue #03-01<br />

Haw Par Centre, Singapore 239922<br />

Phone: +65 6835 9610<br />

gs-ap@gl-group.com<br />

0E120 · 2013-05-01<br />

The <strong>GL</strong> <strong>Group</strong> does not warrant or assume any kind of liability for the accuracy, completeness or quality of the information provided. Liability claims against any member of the <strong>GL</strong><br />

<strong>Group</strong> in relation to any loss or damage arising out of or in connection with the use or non-use of information provided, including the use of incorrect or incomplete information, are<br />

excluded to the fullest extent permissible by law. All presentations of services and products may be subject to alteration and are non-binding. Each <strong>GL</strong> <strong>Group</strong> member expressly reserves<br />

the right without notice to change, supplement or delete parts of the pages or the entire presentation of services and products or to stop the publication temporarily or definitively.

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