Wartsila Oyj Abp · OMXHEX:WRT1V
Wartsila Oyj Abp — Wärtsilä — Investor Presentation (October 2013)
30 slides from Wartsila Oyj Abp's investor presentation, Oct 28, 2013
Slide 1: Wärtsilä Exhaust Gas Cleaning
WÄRTSILÄ EXHAUST GAS CLEANING 1 © Wärtsilä 28 October 2013 WÄRTSILÄ ENVIRONMENTAL SOLUTIONS PRODUCTS / MORTEN LETNES
Slide 2: Pioneering SOx Scrubber Systems
PIONEERING SOX SCRUBBER SYSTEMS LOWEST COST FOR MEETING MARPOL ANNEX VI REQUIREMENTS 2 / 30 © Wärtsilä April 2012 Wärtsilä Hamworthy SOx Scrubber / H. johannessen Doc.ID: Revision: Status:
Slide 3: Emissions and Environment
Emissions and Environment NOx SOx CO2 Acid rains Acid rains Greenhouse gas Tier II (2011) 3.5% (2012) Under evaluation Tier III (2016) ECA 0.1% (2015) by IMO 3 © Wärtsilä. STRICTLY CONFIDENTIAL. This document is the property of Wärtsilä Corporation and shall not be copied or reproduced without the c
Slide 4: North American SOx and NOx ECA
North American SOX and NOX ECA SOx and NOx Emission Control Area. • Entry into force August 2011 • 200 miles from coast. • Fuel Sulphur Initially 1%, then 0.1 % from 2015, all ships. • NOX Tier III (Tier I minus 80 %) 2016, new buildings. 4 © Wärtsilä. STRICTLY CONFIDENTIAL. This document is the pro
Slide 5: IMO SOx Emission Control Areas
IMO SOX Emission Control Areas Geographically defined SOx Emission Control Areas North Sea Baltic BalticSea Sea English Channel 5 © Wärtsilä. STRICTLY CONFIDENTIAL. This document is the property of Wärtsilä Corporation and shall not be copied or reproduced without the consent of the owner.
Slide 6: IMO & EU Sulphur Limits
IMO & EU Sulphur Limits Sulphur limit (%) 4.5 World 3.5 –67% –78% –71% –97% –86% 1.5 ECA 1.0 0.5 EU in ports 0.1 2013 2014 2015 2016 2017 2018 2019 2012 2020 2021 2022 2008 2009 2010 2011 Fuel type Not regulated = both HFO and distillate are permitted. Exhaust gas cleaning Permitted alternative unde
Slide 7: Alternatives to reducing SOx
Alternatives to reducing SOx FUEL SWITCH Flexible High operating cost in SECA Switch to low sulphur fuel in Small investment Fuel change over procedures SECA. Lube oil TBN management Fuel availability? CHANGE TO MGO Convenient High operating cost Run full time on Marine Gas Oil No change over Future
Slide 8: Fuel prices (Rotterdam)
Fuel prices (Rotterdam) ∆= 140–700$ / ton MGO–HFO Fuel prices (Rotterdam) 1400 MGO 0.1% S 1300 MDO 1200 LS380 1.0% S 1100 LS380 1.5% S 1000 IFO380 Price (USD/t) 900 800 700 600 500 400 300 200 100 0 Date 8 © Wärtsilä. STRICTLY CONFIDENTIAL. This document is the property of Wärtsilä Corporation and s
Slide 9: The Big Picture: Cost comparison
Cost comparison for 25 years The Big Picture Total engine power: 10 MW Annual fuel consumption: 9800 ton/a *System delivery cost (not including installation) Annual average load: 69% Fuel prices are prices in Rotterdam Interest rate for NPV calculations: 5.0% Case 1: 31.08.2010 Fuel price inflation
Slide 10: Seawater scrubbing system chemistry
Seawater scrubbing system chemistry Engine Exhaust Chemistry: S + O2 → SO2 (~95%) SO2 + 1/2 O2 → SO3 (~5%) Scrubber Chemistry: SO2 + H2O → H2SO3 (Sulphurous Acid) SO3 + H2O → H2SO4 (Sulphuric Acid) Scrubber Reactions: CaCO3 + H2SO3 → CaSO3 + H2O + CO2 2CaSO3 + O2 → 2CaSO4 (Calsiumsulphate) Alkalinit
Slide 11: Example alkalinity in the Baltic Sea
Example alkalinity in the Baltic Sea Finland • Open sea alkalinity • Surface data (0… 15 m) • Data from 2001-2005 Sweden • Typical open sea alcalinity outside Baltic Sea is ca. 2200 – 2400 µmol/L
Slide 12: SOx Scrubbers and Survey Schemes
SOx Scrubbers and Survey Schemes Freshwater closed loop Seawater open loop Hybrid (seawater closed loop) Not dependent on seawater alkalinity Dependent on seawater alkalinity (issue for limited Possibility to operate independently from areas such as lakes, few ports close to estuaries, seawater alka
Slide 13: SOx Scrubbers and Survey Schemes
SOx Scrubbers and Survey Schemes Type of scrubber Fresh water Sea water Hybrid Alkaline reactant NaOH Sea water NaOH / SW Operating modes Closed loop Open loop Closed / open loop Zero discharge mode Periodical No Periodical Scrubbing water flow, m3/MWh 24 45 24/45 Fresh water consumption, m3/MWh 0.1
Slide 14: Scrubber approval alternatives according to IMO
Scrubber approval alternatives according to IMO SCHEME A – Exhaust gas cleaning (EGC) system approval, survey and certification using parameter and emission checks • Compliance demonstrated by emission tests • Possible to obtain for serially manufactured units and for a certain production range SCHE
Slide 15: Wärtsilä Scrubber Portfolio
Wärtsilä Scrubber Portfolio • Sea water scrubber (SWS) – open loop system • Uses seawater i.e. no freshwater needs • Slightly higher power demand than FWS • Does not need caustic soda • Applications: main alternative for ocean-going ships • Fresh water scrubber (FWS) – closed loop system • Not depen
Slide 16: Wärtsilä Open loop scrubber
Wärtsilä Open loop scrubber Engine Exhaust Gas Possible plume Scrubbed control Exhaust Gas Sea water Sea water from scrubber Laser Gas Sludge Analyser Control data HMI Control Scrubber unit Cabinet Optional Return pump Water treatment Water Water monitoring Monitoring De-aeration vessel Sludge Tank
Slide 17: Wärtsilä Hybrid scrubber
Wärtsilä Hybrid scrubber HMI Control Cabinet Scrubber unit De-aeration vessel Water Monitoring
Slide 18: Wärtsilä Closed loop scrubber
Wärtsilä Closed loop scrubber Exhaust gas fan module Closed loop with NaOH Emission monitoring Scrubber unit (4.4m x 9.2m) By-pass valves Freshwater in Scrubbing water pump module Sea water heat exchanger Bleed-off treatment units Effluent monitoring Sea water pump Sludge tank Alkali feed Alkali (Na
Slide 19: Wärtsilä Integrated Scrubber
Wärtsilä Integrated Scrubber Main features • For diesel engines and oil-fired boilers 9 • One common scrubber unit with suction fan for all 7 combustion units onboard 6 • Suction branches with by-pass valves from all exhaust gas and flue gas pipes 8 • Constant under-pressure at scrubber inlet preven
Slide 20: Containerships VII SOx measurements
Containerships VII SOx measurements •Fuel sulphur content 1.84 %. •Measurement by ackredited third party 2.12.2011. 20 © Wärtsilä. STRICTLY CONFIDENTIAL. This document is the property of Wärtsilä Corporation and shall not be copied or reproduced without the consent of the owner.
Slide 21: Sludge Seawater Systems
Sludge Seawater Systems The collected sludge: Non-hazardous by legislation To be disposed of ashore Can be disposed with the vessels waste oils/sludge Estimated amount closed loop: 2 l/MWh Estimated amount from Engine Manufacturers open loop: 0,1 g/kWh The amount depends on silt content in water and
Slide 22: Wärtsilä's unparalleled reference list: Hybrid – Wilhelmsen
Wärtsilä’s unparalleled reference list Hybrid – Wilhelmsen • Vessel : MV Tamesis • Size of SWS : 1 x 25 MW 1 x 6 MW • Installation type: Retrofit • Delivery : November 2012 • Performance : – 97% SOx Removal – 85 % Particulate Removal – 3,5% fuel sulphur content 22 © Wärtsilä This document is the pro
Slide 23: Wärtsilä's unparalleled reference list: APL England
Wärtsilä’s unparalleled reference list An installation in cooperation with Port of Long Beach and APL • Vessel : APL England • Size of SWS : 1 x 8 MW with 3 inlets Each inlet for a 2,94 MW engine • Installation type Retrofit • Delivery : January 2011 • Performance : – 97% SOx Removal – 85 % Particul
Slide 24: Wärtsilä's unparalleled reference list: Ignazio Messina
Wärtsilä’s unparalleled reference list Ignazio Messina & C • Vessel : DSME Hull 4465/66/67/68 • Size of SWS : 4 x 2 MW auxiliary 1 x 1 MW boiler • Installation type New building • Delivery : January 2011 January 2012 July 2011 June 2012 • Performance : – 98% SOx Removal – 60-80% Particulate Removal
Slide 25: Wärtsilä Moss Test Facility
Wärtsilä Moss Test Facility • 1 MW Exhaust Gas Cleaning installation • Tests run continously • Training for ships crew on Inert Gas Systems • Future training on Exhaust Gas Cleaning Systems • Demonstration for potential customers 25 © Wärtsilä This document is the property of Wärtsilä Corporation an
Slide 26: Scrubber installation, retrofit aspects
Scrubber installation, retrofit aspects For existing ships, the retrofit of a scrubber requires tailor-making. Some aspects to be considered for retrofits are: • Space; design of exhaust gas funnel • Ship stability • Space available for tanks, pumps and water treatment unit(s) • Power demand for the
Slide 27: Wärtsilä – added value partnership
Wärtsilä – added value partnership technology choice to suit the ship type and operational profile turnkey supply capability trusted partnership survey and equipment selection engineering and project management procurement and equipment delivery installation, commissioning and certific
Slide 28: Conclusions
Conclusions
Slide 29: Reflections on fuel prices and attractiveness of solutions
Natural Gas on Reflections Asfuel Marine prices fueland attractiveness of solutions • Global demand for distillates is likely to increase → Price of MGO is expected to increase while price of HFO will stay the same or even decrease • Scrubbers demonstrated to work in marine environment • Scrubbers a
Slide 30: Thank You!
Thank You! morten.letnes@wartsila.com