Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — ESG Presentation (November 2020)
23 slides from Wartsila Oyj Abp's sustainability presentation, Nov 25, 2020
Slide 1: Kari Hietanen, 25 November 2020
25 NOVEMBER 2020 KARI HIETANEN, EXECUTIVE VICE PRESIDENT, CORPORATE RELATIONS AND LEGAL AFFAIRS © Wärtsilä
Slide 2: Innovating together since 1834 for a sustainable future
INNOVATING FOR A SUSTAINABLE TOGETHER SINCE 1834 FUTURE 2 © Wärtsilä 25 November 2020 Kari Hietanen
Slide 3: Sustainability strategy and targets
SUSTAINABILITY STRATEGY AND TARGETS RECOGNISED HIGH ETHICAL TRANSPARENCY DEFINED PROCESSES SUSTAINABILITY Strong focus on STANDARDS Sustainability reporting Certified QEHS WORK reducing environmental Values and code of according to GRI management systems I.a. DJSI and impact and on ensuring conduct
Slide 4: Focus on decarbonization in both shipping and energy sectors
FOCUS ON DECARBONIZATION IN BOTH SHIPPING AND ENERGY SECTORS SHIPPING ENERGY GHG reduction strategy: • EU: Climate neutral by 2050 • 40% lower GHG/vessel • China: Carbon neutral by 2060 by 2030 • USA*: carbon free electricity • 50% lower GHG production by 2035, net zero in shipping (total) by 2050 e
Slide 5: Regulation driving marine emission reduction
REGULATION DRIVING MARINE EMISSION REDUCTION Inert Gas System mandatory for Global cap 0.5% SOx newbuild tankers above 8,000 DWT North sea and Baltic as of 1 January 2018 sea become NECA 2016 2017 2018 2019 2020 2025 2050 Carbon emissions halved NOx Tier III in IMO Ballast Water Global 0.5% SOx NECA
Slide 6: Mitigating climate change
MITIGATING TARGETS FOR RAPIDLY DECREASING INCREASING EMERGING NEW CLIMATE CHANGE RENEWABLES AND PRICE OF RENEWABLES ELECTRICITY DEMAND TECHNOLOGIES DECARBONISATION 6 © Wärtsilä 25 November 2020 Kari Hietanen
Slide 7: The energy transition is a global trend
THE ENERGY TRANSITION IS A GLOBAL TREND… Installed capacity by region (GW) North America1 Europe APAC 67% 55% 62% 42% 54% 17% 31% 31% 58% 2020 2030 2040 2050 54% 2020 2030 2040 2050 40% META 22% Latin America 57% 49% 7% 26% 12% 26% 43% 50% 2020 2030 2040 2050 2020 2030 2040 2050 2020 2030 2040 2050
Slide 8: Supported by the increased competitiveness of renewables
… SUPPORTED BY THE INCREASED COMPETITIVENESS OF RENEWABLES Most competitive source of new bulk Most competitive source of new bulk generation in 2014 generation in 1H 2020 Note: Reflective of the cheapest benchmark project for each technology Note: Reflective of the cheapest benchmark project for ea
Slide 9: Our solutions support the energy transition
OUR SOLUTIONS SUPPORT THE ENERGY TRANSITION ENERGY STORAGE AND FLEXIBLE POWER PLANTS LIFECYCLE SERVICES OPTIMISATION Flexible power plants utilising Energy storage solutions that Lifecycle services encompass modular and future-proof build a resilient and intelligent performance and maintenance techn
Slide 10: The benefits of flexibility in practice
THE BENEFITS OF FLEXIBILITY IN PRACTICE Tucson Electric Power, Arizona AGL Energy Limited, Australia Kraftwerke Mainz-Wiesbaden • 211 MW power plant AG, Germany • 200 MW flexible gas plant and 10 MW/2.5 MWh energy storage system • Enables the retirement of coal and • Flexible 100 MW combined heat an
Slide 11: Flexibility needed to fully utilise renewable energy
FLEXIBILITY NEEDED TO FULLY UTILISE RENEWABLE ENERGY AND ENABLE THE PATH TOWARDS CARBON NEUTRALITY CASE GERMANY 5TH JULY 2020 Enough renewable generation to cover load Excess power pushes down market price Baseload coal and nuclear power is exported with high price tag Emission reductions limited So
Slide 12: Over 80 country and system studies made by Wärtsilä
WÄRTSILÄ PLEXOS MODELLING ACTIVITIES OVER 80 COUNTRY AND SYSTEM STUDIES MADE BY WÄRTSILÄ ALL OVER THE WORLD = PLEXOS study made by Wärtsilä
Slide 13: CHP case example in Germany
100 MW CHP CASE EXAMPLE IN GERMANY INITIAL COST OPTIMAL DECARBONISED 0% 76 % 100 % Renewable energy Renewable energy Renewable energy Solar, wind, storage, engines Running on synthetic fuels (P2X) 78 €/MWhe 475 MW Solar, wind, storage, engines 46 €/MWhe 284 MW 60 MW 55 MW Thermal only 69 MW 69 €/MWh
Slide 14: Adopted in a smart marine ecosystem
ENERGY SOURCE ENERGY EFFICIENT DATA BASED AND FUEL FLEXIBILITY TECHNOLOGIES OPTIMISATION … ADOPTED IN A SMART MARINE ECOSYSTEM 14 © Wärtsilä 25 November 2020 Kari Hietanen
Slide 15: Contributing to the maritime sustainability agenda
CONTRIBUTING TO THE MARITIME SUSTAINABILITY AGENDA MARINE POWER VOYAGE MARINE SYSTEMS Creates a commercially Provides products and Develops technologies, products, viable path towards solutions to connect vessels to and solutions related to the gas decarbonisation by ports, remove inefficiencies val
Slide 16: Dual fuel is a proven technology
DUAL FUEL IS A PROVEN TECHNOLOGY – WÄRTSILÄ 4-STROKE DUAL FUEL ENGINE REFERENCES > 2 600 DF engines > 45 000 000 running hours 409 vessels / 1475 engines 46 vessels / 184 engines 36 vessels / 124 engines 58 vessels / 166 engines 172 plants / 728 engines MERCHANT CRUISE & FERRY OFFSHORE SPECIAL, POWE
Slide 17: Hybrid solutions support a cleaner, safer, more efficient future
HYBRID SOLUTIONS SUPPORT THE ACHIEVEMENT OF A CLEANER, SAFER, MORE EFFICIENT, AND PROFITABLE FUTURE NORTH SEA GIANT VICTORIA OF WIGHT VILJA North Sea Shipping AS Wightlink Isle of Wight Ferries Luleå Hamn AB RETROFIT NEW BUILD NEW BUILD -25% -17% -5O% TOTAL EMISSION FUEL MAINTENANCE REDUCTION CONSUM
Slide 18: Fleet Operations solution enables efficient ship operations
WÄRTSILÄ FLEET OPERATIONS SOLUTION ENABLES EFFICIENT SHIP OPERATIONS AND MAINTENANCE OF ASSET CONDITION Reducing carbon intensity with innovative operational measures • Voyage Performance • Save up to 10% of fuel (and emissions) by automatic efficient planning and execution of routes • Just-in-time
Slide 19: Fuel flexibility and future fuels
FUEL FLEXIBILITY OPTIMISING AND DECARBONISING NEW TECHNOLOGY AND AND FUTURE FUELS DECARBONISING SHIPPING DIGITAL SOLUTIONS ENERGY SYSTEMS 19 © Wärtsilä 25 November 2020 Kari Hietanen
Slide 20: The role of gas is crucial as a bridging fuel
THE ROLE OF GAS IS CRUCIAL AS A BRIDGING FUEL TODAY 2030 2050 EU ENERGY AND TARGETS: TARGETS: CLIMATE TARGETS • 32% renewable energy • Climate neutrality • GHG reduced 40% (55%) Transitioning phase Carbon neutral Energy Flexible generation Flexible generation with natural gas with bio fuels and powe
Slide 21: Engine technology ready for future – towards sustainable fuels
ENGINE TECHNOLOGY READY FOR FUTURE – TOWARDS SUSTAINABLE FUELS Technology ready Industrialisation needed Fossil liquids Bio and synthetic liquids Green methanol • High energy content • GHG reduction 70-100% depending on • Carbon neutral • Widespread availability source (well-to-power) • Can be blend
Slide 22: Conclusions
CONCLUSIONS Environmental awareness and changing energy needs are driving the maritime and energy sector transformation Flexibility, future fuels and new technologies are key to the achievement of climate targets Sustainability is central to our strategy and growth ambitions - with our broad offerin
Slide 23: Thank you
re, WARTSILA