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Shanghai 3:d of December 2009 Mikael Troberg, Director Testing and Performance Wärtsilä Industrial Operations / R&D Medium speed 4 stroke engines Life-cycle Costs – The Impact of Fuel and Emissions Marintec China 2009 CIMAC CIRCLE 2009

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Shanghai 3:d of December 2009Mikael Troberg,

Director Testing and PerformanceWärtsilä

Industrial Operations / R&D

Medium speed 4 stroke engines Life-cycle Costs –

The Impact of Fuel and Emissions

Marintec

China 2009

CIMAC CIRCLE 2009

2 © Wärtsilä MTZ-Konferenz 2009 D. Delneri

NOx reduction technologies

Lifecycle cost

Summary and Conclusions

List of content

3 © Wärtsilä MTZ-Konferenz 2009 D. Delneri

NOx reduction technologies

Lifecycle costLifecycle costLifecycle cost

Summary and ConclusionsSummary and ConclusionsSummary and Conclusions

List of content

4 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

The global approach to reduce engine emissions

NOx reduction technologies

5 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

High pressure TC sys. (2-stage) (ca. NOx -40%)Low NOx combustion tuning (ca. NOx -10%)EGR system (ca. NOx -60%)Charge air humidification (ca. NOx -40%)Water Fuel Emulsion (ca. NOx -25%)Direct Water Injection (ca. NOx -50%)SCR system (ca. NOx -80%)Gas engine and Fuel conversion (ca. NOx -85%)

NOx reduction technologies

NOx Reduction Potential

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

Tier 3

6 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

NOxNOxNOx reduction technologiesreduction technologiesreduction technologies

Lifecycle cost

Summary and ConclusionsSummary and ConclusionsSummary and Conclusions

List of content

7 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

Summary of fuel prices assumptions

• Crude oil = 90 $/bblConservative assumption; crude oil price might be subject to a dramatic increase due to

”crunch” between demand and supply

• HSFO = 485 USD/Mt €

350 €/Mt Price correlated to crude oil

• MGO = 1,8 * price of HSFOPrice correlated to HSFO

• LSFO (0,5%S) = 1,3 * price of HSFOPrice correlated to HSFO

• LNG = 1,4 * price of HSFOPrice correlated to crude oil and than compared to HSFO

NOTE: price factor considers the different energy content of fuels

8 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

Tier 3 Lifecycle cost (25 y) –

4-S solutions / LSF in ECA

Tier III Tech. lifecycle cost (25 year) - 4-stroke engine

0

1000

2000

3000

4000

5000

6000

7000

Base

line

(LS

F in

EC

A)

NOR

Tier

3

2-St

age

+ DW

I +in

t EG

R

DF e

ngin

e

2-S

tage

+E

xter

nal E

GR

Fuel

Con

v.(G

aspa

ck +

DF

engi

ne)

Ext

EG

R +

DWI

2-st

age

Tier

2 +

NOR

2-st

age

+ N

OR

Del

ta C

ost,

€/K

W

Regional Trade

Worldwide Trade

80% ECA (T3)

20% ECA (T3)

Delta cost from Tier II baseline

Baseline Tier II operating on LSF in ECA

SCR solution

Gas engine

Gas engine

Valuable alternatives to SCR alone (2-stage options)

SCR

SCR

SCR

9 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

Tier 3 Lifecycle cost (25 y) –

4-S solutions / Scrubber + HFO in ECA

Tier III Tech. lifecycle cost (25 year) - 4-stroke engine

-500

0

500

1000

1500

2000

SCR

Tie

r3

2-S

tage

+ D

WI +

int E

GR

DF

engi

ne

2-S

tage

+E

xter

nal E

GR

Fuel

Con

v.(G

aspa

ck +

DF

engi

ne)

Ext E

GR

+ D

WI

2-sg

tage

Tie

r2 +

SCR

2-st

age

+ S

CR

Del

ta C

ost,

€/K

W

Regional Trade

Worldwide Trade

Lifecycle cost estimation is very sensitive to fuel and urea market price scenario. No option at this

stage can be easily dropped out

10 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

NOxNOxNOx reduction technologiesreduction technologiesreduction technologies

Lifecycle costLifecycle costLifecycle cost

Summary and Conclusions

List of content

11 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

Summary and conclusions

The upcoming IMO Tier III emission limit is very challenging. 3 main technologies will be available:

Engine technologies

After treatment

Fuels i.e. Gas

Operation flexibility between different emission areas will be a success factor for the future engine concepts. (CR technology and variable valve timing)

Required fuel quality (LSF) in the ECA area will probably affect significantly the lifecycle cost for the ship operators, consequently scrubber technology implementation could become a key factor

12 © Wärtsilä Cimac Shanghai 3.12.2009 Mikael Troberg

Thank you

Thank you for your attention