LPG cargo handling and

safe transfer operations

3 August 2021 • 14:00-14:45 BST
Part of
LPG Shipping
Presentation & supporting organisation documents: & Terminals
Page 2: Chris Clucas, Liquefied Gas Consultancy Webinar Week
Page 22: Andrew Scott, Babcock LGE 3-4 August 2021
Page 35: WLPGA company information
#lpg

Supporting organisation
LNG SHIPPING &
TERMINALS
Safely connected – but is the LPG business really joined-up?
We have the IGC Code, Mooring Guidelines, Manifold Standards….
We have the IGC Code, Mooring Guidelines, Manifold Standards….

What could possibly go wrong?

Does the cargo quality match between Shore & Ship?
Any debris in the cargo?
Will the ship’s filters work?
Under IGC Code rules, all LPGC manifold connections
must have an Emergency Shutdown Valve.
 Do both ship & shore fully understand the
pressure & temperature limits of each-others
cargo systems?
 LPGC ESD valves close on “loss of power”. So during a recent
normal loading, “blackout” on an LPGC closed the manifold valve.
The pressure spike tripped the entire refinery. There were no
injuries, but the commercial consequences were significant.
 Loading “warm” Propylene from a modern integrated
Petrochem plant onto a modern “semi-ref” LPGC – should
have been a “routine mission”….
Unfortunately on this occasion there was a hose burst, a fire &
explosion – and one crewmember on board the LPGC lost his life
 What lessons can be learned from these incidents?

It is essential to match the pressure ratings

in all parts of the combined systems
 What lessons can be learned from these incidents?

It is essential to match the pressure ratings

in all parts of the combined systems
 What lessons can be learned from these incidents?

It is essential to match the pressure ratings

in all parts of the combined systems
 What lessons can be learned from these incidents?

Total pressure from shore ~35 Bar(g).

Ship line limit ~ 25 Bar(g).
Hose operating limit 14 Bar(g); failure
was highly likely in this case

It is essential to match the pressure ratings

in all parts of the combined systems
The answer is to fit standard ship-shore ESD links – well proven &
now mandatory for ships under IGC Code. Surely it is high time the
shore terminals were also fitted with these essential safety systems
The answer is to fit standard ship-shore ESD links – well proven &
now mandatory for ships under IGC Code. Surely it is high time the
shore terminals were also fitted with these essential safety systems
Connected – but is the LPG business really safely joined-up?
 LPG cargo handling and
safe transfer operations
Webinar Tuesday 3rd August

Classification:UNCLASSIFIED
 • Babcock LGE – established 1967 • Andrew Scott
• 146 staff – based in Rosyth • Business Development Director,
• World’s leading LPG cargo handling supplier Babcock LGE
with over 300 references • Process Engineering degree
• Delivered world’s first LPG fuel gas supply • 40+ years in the liquefied gas business
system – 21 references

Classification:UNCLASSIFIED
 LPG otherwise known as not-LNG!
LNG is a single cargo carried as a single grade

“LPG” is strictly speaking propane and butane but generically covers anything that is not-LNG

LPG is numerous cargoes often carried as two (or more) segregated cargoes simultaneously

LNG LPG
(1 cargo, 1 segregation) (15 cargoes, 2 segregations)
1 option 105 options

So why is LPG often seen as the “poor relation” of the industry?

Classification:UNCLASSIFIED
 The beginning of the industry
• Agnita – built 1931
• LPG plus gas oil, sulphuric acid

• Rasmus Tholstrup– built 1953

• First purpose built LPG carrier
• 600 m³ in 12 vertical tanks
designed for ~17 bar g

Classification:UNCLASSIFIED
 How far have we come?
Cargo volume increased and number of tanks reduced – modern VLGC typically circa 80,000 - 90,000 m³
with the cargo carried fully refrigerated in 4 cargo tanks.

But what else

has changed in
a conservative
industry?

Classification:UNCLASSIFIED
 Cargoes
Lost – MAPP gas, propadiene

Gained – high ethane content commercial propane, DME.

With the emergence of the shale gas

industry in the USA, ethane has gone from
a “niche” cargo in relatively small ships to a
large scale commodity cargo transported in
VLECs (very large ethane carriers)

The increasing use of “cargo” as fuel in both gas carriers and non-gas carriers alike can only help to
continue growth in the “LPG” sector.

Classification:UNCLASSIFIED
 Reliquefaction
Then – compression based direct and cascade reliquefaction systems

Now – compression based direct and cascade reliquefaction systems

Why – no one has come up with a better solution (or rewritten the
laws of thermodynamics) so all we can do is tweak the fundamental
designs to reduce cost, space and increase efficiency.

What changes have we seen?

✓ Compact plate type heat exchangers in place of shell & tube

✓ Larger compressors with more capacity  fewer machines  reduced maintenance
✓ Cascade plants moving away from environmentally damaging refrigerants e.g. R22
✓ Efficiency improvements through developments such as the Vent Gas Cooler (VGC™)

What else can we do to make improvements that are more than token gestures?

Classification:UNCLASSIFIED
 Cargo pumping
Then – deepwell pumps in cargo tanks, deck mounted booster pumps

Now – deepwell pumps in cargo tanks, deck mounted booster pumps

Why – no one has come up with a better solution. “If it is not broken, why try to fix it”

What changes have we seen?

✓ Deepwell pumps have become longer as tank sizes increased

✓ Increased capacities to maintain offloading times as cargo volumes increased

What else can we do to make improvements that are more than token gestures? Should more
consideration be given to the use of in-tank pumps (the de facto standard in the non-LPG sector)?

Classification:UNCLASSIFIED
 Ancillary systems
Other than in the advancement (?) in control systems with relays being replaced by computers and
monitors showing very conceivable bit of data/information, has anything else moved on significantly?

Inert gas – still use oil burning IG generators with nitrogen being produced either by pressure swing
absorption (PSA) or membrane separation.

If everything is “fit for purpose”, is there an

argument for change? Will this be “forced”
by the growing environmental and
efficiency demands?

Classification:UNCLASSIFIED
 Cargo as fuel
Non-LPG (LNG) carriers have been burning cargo as fuel for years but the IGC Code effectively prohibited
the use of any other cargo as fuel.

LPG now being used as a primary fuel on a number of

newbuild and retrofit projects.

Ethane is the fuel of choice on VLECs.

Ammonia, despite being toxic and therefore

“prohibited” as fuel by the IGC Code is gaining traction
as a carbon-free fuel

However, as with the growth of LNG as fuel on non-LNG

carriers, the development of the necessary infrastructure
and ships for bunkering of LPG and ammonia to non-gas
carriers will be a major factor in the uptake

Classification:UNCLASSIFIED
 Carbon Dioxide (LCO2)
Carrying carbon dioxide as liquid CO2 i.e LCO2, is not possible in the vast majority of the current LPG
carrier fleet.

LCO2 would typically be carried at around -50°C and 6-7 bar g or -30°C and 13- 15 bar g.

LCO2 is around twice the density of LPG so pumping powers are significantly higher on a like for like
basis.

There is a lot of interest currently in ships that could carry both LPG and LCO2 for medium to long
voyages – both cargoes require reliquefaction but the plant sizes are incompatible.

Likely that for most CCS projects, ships will be designed for short sea voyages and rely on pressure build-
up rather than reliquefaction.

LCO2 looks like the next big thing but what happens when we reach the goal of the clean hydrogen
economy and there is no more CO2?

Classification:UNCLASSIFIED
 Efficiency initiatives
Energy Efficiency Design Index (EEDI) – new-build ships need to meet efficiency criteria

Energy Efficiency Existing Ship Index (EEXI) – existing ships energy efficiency criteria

Carbon Intensity Indicator (CII) – all ships required to reduce carbon intensity (but currently liquefied gas
carriers can discount the reliquefaction plant consumption?)

To meet the ambitious targets, and considering that the “low hanging fruit” has already been picked,
needs some radical changes but where will they come from?

Digitalisation and automation can help reach the end goal but will come at a cost.

Classification:UNCLASSIFIED
 Summary/close-out
LPG plays an important role in the
global energy and manufacturing supply
chains.
It has evolved significantly since 1931 to
today and will continue to transform
into the future… increased ammonia
cargoes for zero carbon energy in
support of the global transition to net
zero and also CO2 transportation for
CCUS plus LPG as a fuel and
ammonia/methanol/DME as a fuel….

Classification:UNCLASSIFIED
 LPG for Marine Engines
The Marine Alternative Fuel

Commercial, Passenger, Offshore Boats/Ships,

Recreational Crafts and Other Boats
Converting or retrofitting for LPG?

Some of the regulatory aspects to

consider!

Innovation & Technology

 The World LPG Association

The WLPGA was established in 1987 in Dublin, Ireland, under the initial name of The World LPG Forum.

It unites the broad interests of the vast worldwide LPG industry in one organisation. It was granted Category II
Consultative Status with the United Nations Economic and Social Council in 1989.

The WLPGA exists to provide representation of LPG use through leadership of the industry worldwide.

Foreword
A great man once said “To know something and not do it is the same as not knowing it at all”. What we take for granted
today was impossible just a few years ago. The quick adaptation of LPG as a fuel in the marine sector would be a great
step forward for the environment, cleaner air and cleaner water. With its lower cost of implementation and its readily
available infrastructure, LPG, an exceptional energy, has significant advantages over other alternative fuels. As a pioneer
in LPG marine applications, I see as my maritime mission to assist in the rapid adaptation of this exceptional solution
changing the world for the better.

I believe this report, thanks to the World LPG Association, creates that ripple in the water that can carry across the
oceans.

Capt. Bernardo Herzer

Acknowledgements
This report has been developed by the Innovation & Technology Network of WLPGA.

There could be views expressed in this document that are not necessarily shared by all contributors.

Key contributors:

George Nikolaou, NaTco/Liquid Gas Europe

Makoto Arahata, Japan LPG Association

Rubens Basaglia, X-Tech
Niels Frederiksen, Hexagon Ragasco
Peter Hadjipateras, Dorian LPG
Tatsuya Hamaguchi, Astomos
Warring Neilsen, Elgas
Tucker Perkins, PERC
Øyvind Solem, BW LPG
David Tyler, WLPGA
Cameron Ure, Elgas

Nikos Xydas from WLPGA coordinated this project.

Page 1 LPG for Marine Engines, The Marine Alternative Fuel

 LPG for Marine Engines

The Marine Alternative Fuel

Commercial, Passenger, Offshore Vessels,

Recreational Crafts and Other Boats
 Contents Page

Foreword .....................................................................................................................................................1
Chapter One .................................................................................................................................................. 6
Introduction............................................................................................................................................... 6
Chapter Two ................................................................................................................................................ 7
Executive Summary .................................................................................................................................. 7
2.1. Key Messages - Fact Sheet ..................................................................................................... 10
2.2. Key Messages – Roadmap...................................................................................................... 15
2.3. Key Messages – Recommendations ....................................................................................... 16
Chapter Three ............................................................................................................................................ 17
Fact Sheet .............................................................................................................................................. 17
3.1. The Product – LPG as Marine Engine Fuel .............................................................................. 17
3.1.1. Production......................................................................................................................... 17
3.1.2. Worldwide Production....................................................................................................... 18
3.1.3. Transportation .................................................................................................................. 19
3.1.4. Bunkering .......................................................................................................................... 21
3.1.5. Pricing ............................................................................................................................... 23
3.1.6. LPG propulsion – Fuel Cost Benefits ................................................................................... 24
3.1.7. Environmental, emissions to air and water ........................................................................ 25
3.1.8. Order book ........................................................................................................................ 27
3.1.9. Main Advantages of LPG as Marine Fuel ............................................................................ 28
3.1.10. LPG Propulsion Sustainability in Summary ..................................................................... 29
3.2. Marine Engine Technologies .................................................................................................. 31
3.2.1. High-speed engines (>1000prm) ........................................................................................ 32
3.2.2. Medium-speed engines (300-1000prm) ............................................................................. 33
3.2.3. Low speed engines(<300rpm) ............................................................................................ 34
3.2.4. Electric Motors (with LPG power generators) .................................................................... 39
3.2.5. LPG Range extenders ......................................................................................................... 41
3.2.6. LPG Reformer .................................................................................................................... 42
3.3. Marine LPG Engine Types....................................................................................................... 43
3.3.1. Otto petrol/LPG bi-fuel engine........................................................................................... 44
3.3.2. Otto LPG Mono Fuel engine ............................................................................................... 44
3.3.3. Dual-fuel Diesel/LPG engine (diesel engine with direct LPG injection) ................................ 44
3.3.4. Diesel – ignited LPG engine................................................................................................ 47
3.3.5. Gas fuel or Tri-Fuel Propulsion ........................................................................................... 47
3.3.6. LPG Gas turbine ................................................................................................................. 48
3.3.7. LPG Outboard engine, mono fuel or bi-fuel........................................................................ 50
3.4. Ship propulsion...................................................................................................................... 53
3.4.1. Direct Drive ....................................................................................................................... 54
3.4.2. Hybrid, Parallel .................................................................................................................. 54
3.4.3. Hybrid, Serial ..................................................................................................................... 59
3.4.4. Electric with “Range Extender” engine............................................................................... 61
3.4.5. Tri-Fuel Diesel Electric Propulsion (TFDE) Over Diesel Engine Propulsion ........................... 61
3.4.6. Outboard/Inboard engines ................................................................................................ 63
3.4.7. Ethane powered ship engine ............................................................................................. 65
3.4.8. Engines running on LPG could be converted to ammonia................................................... 66
3.5. Marine Engine Application Segments ..................................................................................... 68
3.5.1. Ship Segments Overview ................................................................................................... 68

Page 3 LPG for Marine Engines, The Marine Alternative Fuel

 3.5.2. Commercial Vessels ........................................................................................................... 69
3.5.2.1. Cargo ships................................................................................................................ 69
3.5.2.1.1. Large ocean-going ships-VLGCs ............................................................................ 69
3.5.2.1.2. Tankers ................................................................................................................ 75
3.5.2.1.3. Bulk carriers ......................................................................................................... 75
3.5.2.1.4. Containerships ..................................................................................................... 76
3.5.3. Fishing Boat/Ships ............................................................................................................. 77
3.5.4. Passenger Vessels.............................................................................................................. 78
3.5.4.1. Cruise ships ............................................................................................................... 78
3.5.4.2. Ferries....................................................................................................................... 79
3.5.4.3. Yachts ....................................................................................................................... 81
3.5.5. Offshore Service Boats ...................................................................................................... 81
3.5.5.1. Exploration and Production ....................................................................................... 82
3.5.5.1.1. Seismic Vessels .................................................................................................... 82
3.5.5.1.2. Drill Ships ............................................................................................................. 82
3.5.5.1.3. Cable/Pipe Layers................................................................................................. 83
3.5.5.2. Towboats .................................................................................................................. 83
3.5.5.3. Supply + Service Boats............................................................................................... 83
3.5.5.3.1. Platform Supply Vessel ......................................................................................... 83
3.5.5.3.2. Anchor Handling Vessels ...................................................................................... 84
3.5.5.3.3. Safety Standby Vessels ......................................................................................... 84
3.5.5.3.4. Installation vessels ............................................................................................... 84
3.5.6. Recreational Crafts and Other Boats .................................................................................. 85
3.5.6.1. Rib and Speed Boats .................................................................................................. 85
3.5.6.2. House Boats .............................................................................................................. 86
3.5.7. Naval Vessels..................................................................................................................... 87
3.5.7.1. Military ..................................................................................................................... 87
3.5.7.2. Rescue /Patrol .......................................................................................................... 87
3.5.8. Others ............................................................................................................................... 88
3.5.8.1. Dredgers ................................................................................................................... 88
3.5.8.2. Tugs- Work Boats ...................................................................................................... 89
3.5.8.3. Ice Breakers .............................................................................................................. 89
3.6. Conversions and Retrofitting ................................................................................................. 90
3.7. LPG vs LNG ............................................................................................................................ 91
3.8. Bunkering Methods ............................................................................................................. 101
3.9. Main Players ........................................................................................................................ 103
3.10. Regulatory Framework ........................................................................................................ 103
3.10.1. Regulatory Framework in Recreational Craft Sector ..................................................... 104
3.10.2. Regulatory Framework in Commercial Shipping Sector ................................................ 106
3.11. Safety .................................................................................................................................. 117
3.12. Training ............................................................................................................................... 119
3.13. Quality of Fuel ..................................................................................................................... 119
3.14. Environmental Aspects ........................................................................................................ 120
3.15. Main Stakeholders ............................................................................................................... 123
3.15.1. Design Offices ............................................................................................................. 124
3.15.2. Marine engine manufacturers ..................................................................................... 125
3.15.3. Shipyard ...................................................................................................................... 127
3.15.4. Classification Societies................................................................................................. 127
3.15.5. Ship owners, Cargo owners, Ship operators ................................................................. 127
3.15.6. LPG Distribution Companies and Associations ............................................................. 129
3.15.7. Policy Makers, Governments, Regulators..................................................................... 129

LPG for Marine Engines, The Marine Alternative Fuel Page 4

 3.15.8. Other Societies ............................................................................................................ 129
3.16. Engagement of Main Stakeholders ...................................................................................... 130
3.17. Market Status ...................................................................................................................... 130
Chapter Four ............................................................................................................................................ 132
Roadmap.............................................................................................................................................. 132
4.1 Market Outlook on Technology Developments .................................................................... 132
4.2 Market Outlook on Regions ................................................................................................. 133
4.3 Barriers to Growth ............................................................................................................... 134
4.3.1 Customer economics: investment for ship owners and economics for fleet operators ..... 134
4.3.2 Positioning LPG to policymakers and decision makers: Need to be on a level playing field
with other alternative fuels .......................................................................................................... 135
4.3.3 Technology Development of new engines: In the recreational sector, there is a slow rate
with limited growth. In big vessels, there are few early development projects under development
135
4.3.4 Commercialisation of new engines: Sales, servicing and maintenance networks are required
136
4.3.5 LPG Awareness/Perception for decision makers: Shared Vision with LPG marine engines,
Equipment and Engine manufacturers, Naval Architects, Ship owners, Ship operators and All Types
of Users as a Preferred Option ..................................................................................................... 136
4.3.6 Bunkering Infrastructure: Development of bunkering infrastructure uncertainty of LPG
supply and bunker price makes it difficult for a ship-owner to invest on LPG-fuelled ship............. 136
4.4 Market Potential.................................................................................................................. 138
4.4.1 Target Regions................................................................................................................. 139
4.4.2 Target Boat/Ship Segments ............................................................................................. 141
Chapter Five .............................................................................................................................................. 143
Recommendations ................................................................................................................................. 143
5.1. Customer Economics- investment for ship owners and economics for fleet operators the
Greatest ........................................................................................................................................... 143
5.2. Positioning LPG to policymakers and decision makers: Need to be on a level playing field with
other 144
5.3. Technology Development of new engines and ship designs: Big vessels - few early projects
under development. Recreational sector - slow rate with limited growth. ........................................ 144
5.4. Commercialisation & Getting Products to Market ................................................................ 145
5.5. LPG awareness for decision makers: Shared vision with marine engine manufacturers, naval
Architects, designers, ship owners, ship operators and traders need to be considered ..................... 145
5.6. Bunkering Infrastructure: Development of bunkering infrastructure, uncertainty of LPG supply
and bunker price, a concern for a ship-owner to invest on LPG-fuelled ship ..................................... 145
Appendices............................................................................................................................................... 146
Appendix 1 ............................................................................................................................................... 146
Appendix 2 ............................................................................................................................................... 148
Abbreviations ........................................................................................................................................... 149

Page 5 LPG for Marine Engines, The Marine Alternative Fuel

 Chapter One

Introduction
The aim of this report is to promote understanding amongst the LPG industry and beyond, of the technical
possibilities, applications and market potential of LPG for marine engines. Ultimately this is to inform the LPG
community of the numerous opportunities in the various related segments, of current development in the gaseous fuel
market and of actions to take, in order to “pave the way” for take-up in the marine routes.

The report scope includes:

u A scan of the market for marine LPG engines and even more in this case for marine engines and particularly those
gas marine engines, which after additional development or conversion could use LPG as a fuel.
u Identification of market characteristics and marine engine applications which are more promising for LPG as a
marine fuel.
u Coverage of commercial and passenger vessels as well as emerging developments in inboards, outboards
recreational boats and other crafts.

The main objective, besides giving a bird-eye’s view snapshot of the sector as a whole, is to identify concrete
opportunities for the LPG industry.

This report contains:

u A ‘fact sheet’ giving an overview of the current marine LPG and other gaseous fuel technologies, main players in
the value chain and market status.
u A ‘roadmap’ providing stakeholders with different types of boat propulsion systems, exploring the market outlook
for each technology and identifying the drivers and barriers for future growth.
u Recommendations targeting stakeholders and association members on how to overcome the barriers for entering
the shipping sector and also on maximising the market opportunity in existing smaller waterborne vessels.

LPG for Marine Engines, The Marine Alternative Fuel Page 6

 Chapter Two

Executive Summary
Global marine propulsion engine revenue market is expected to reach $12 billion by 2022, growing yearly at around
4.1% from 2016 to 20221 and it is expected to witness growth during the forecast period owing to various ongoing
government investments in shipbuilding industry and inland waterways.

The increase in production and sales of ships globally, and the rise in international seaborne trade, partly also due to
increase in demand for resources such as crude oil, coal, steel, and iron from developing countries, drive the market
growth. Over 90% of the world’s goods by weight and volume are transported by sea. Offshore exploration and
production are expected to grow to from 35% to 45% over the next decade2. However, stringent environmental
regulations and large capital investment required to set up new manufacturing facilities hamper the market growth.
Irrespective of these challenges, rise in usage of inland waterways and advancements in technologies, such as new
alternative fuel propulsion engine technologies, are expected to provide various opportunities for these technologies
and boost market growth.

Like all other forms of transportation that burn hydrocarbon fuels for energy, marine transportation releases significant
volumes of emissions as by-products. Of the two types, air polluting sulphur and nitrogen oxides and particulate matter
are dangerous for the environment and human health, while greenhouse gas emissions, such as CO2 and methane,
contribute to climate change.

The use of LPG as an engine fuel is arguably the most commonly accepted alternative fuel in the world today. LPG is
readily available globally and is lauded as a clean, energy efficient and portable fuel with an affordable price tag. It’s

1
https://www.marineinsight.com/shipping-news/marine-propulsion-engine-market-expected-reach-12-billion-2022/

2 https://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/investors/results/presentations-and-briefings/02-introduction-to-marine-
tcm92-61444.pdf

Page 7 LPG for Marine Engines, The Marine Alternative Fuel

 currently sourced mainly from natural gas and oil production activities. However, in the wake of new technologies and
techniques, LPG can also be produced from renewable sources.

Today by using LPG can reduce GHG by 17% and this is also fuel that give quite a good safety margin today on
newbuilding being compliant for the lifetime of the vessel.

In light of the International Maritime Organization (IMO) mandate, LPG could have a role to play in the process of
decarbonising shipping, and it will play a leading role towards IMO’s 2050 regulations, which will require further
reduction on greenhouse gas emissions by at least 50% until 2050, compared to 2008. Advancements in technologies,
such as new alternative fuel propulsion engine technologies, are expected to boost market growth, where the vast
majority of engines are diesel, and alternative fuels solutions such as LNG continue their growth, but LPG is starting to
get some attention as it stands as a likely alternative among the other gaseous fuels.

However, regarding larger commercial and passenger ships, ship operators, with traditional propulsion plants and fuels,
mainly could not meet the new 2020 regulations without installing expensive exhaust equipment or switching to low-
sulphur diesel, low-sulphur residual, or other alternative fuels, all of which have an impact on profit. As attention turns
to an array of possible solutions, heavy-sulphur fuel oil with scrubbers, distillates, blended fuels and LNG, so as to comply
with the IMO’s 0.5% global sulphur cap regulation, LPG starts gain more acceptance as a viable solution, as compared
to LNG, which is more problematic and expensive to implement.

LPG has made its entry into the marine market segment. LPG as marine fuel is available now, diesel engines can be
retrofitted to burn it, and it will aid a transition to zero-emissions shipping in the future. Currently, LPG is already a
preferred marine fuel solution for LPG carriers. Hence, LPG propulsion, starting with the LPG carrier sector, needs to
move beyond a niche fuel option, to gain the acceptance in the wider shipping sector that it deserves. In smaller
commercial and recreational vessels with inboard and outboard engines, LPG has been also little exploited up to now,
although there are some areas/countries where it has indeed been used.

On 4 November 2020, the world’s first LPG-fuelled vessel has set sail. Powered with a MAN dual fuel engine and a
Wärtsilä’s customised and reliable fuel supply system, the vessel represents a major breakthrough in the search for
new ways to reduce marine emissions. After the successful completion of full-scale testing and installation of the
systems, the first BW LPG vessel has completed sea and gas trials sailed a transpacific voyage from China to Enterprise

LPG for Marine Engines, The Marine Alternative Fuel Page 8

 Port in Houston, Texas, on full LPG propulsion. Recently BW LPG announced that three more retrofits have completed
sea and gas trials with pioneering LPG propulsion technology. BW LPG noted that the retrofit process emits around
2,060 tons of carbon dioxide, which is 97% lower when compared to ordering a newbuilding with similar technology.

LPG supply surplus is another element in favour, with surpluses ranging from 15 to 27 million tonnes per year3, which
are either used or “lost”. The dropped prices of LPG (comparatively also with LNG) driven by the shale gas revolution
are also an important driver for market entry. Shipbuilders are already considering vessel designs that use LPG as
propulsion fuel.

There is no reason why LPG cannot be used in all sizes of vessels from the largest of ocean-going ships, down to the
smaller boats with inboard or outboard engines. LPG can play a major role in this changing environment and re-establish
itself in the position that it deserves as an ideal alternative clean marine fuel.

LPG could also act as a bridging fuel to ammonia, as the materials used for LPG tanks and systems are, in most
cases, suitable for ammonia. With advanced planning, the adjustments needed for a switch to ammonia from LPG
could also be minimised.

Coordinated action from all related stakeholders is key to address the identified specific issues that hinder development
and release further the market potential.

3
https://www.wlpga.org/wp-content/uploads/2019/12/WLPGA-Annual-Report-2019.pdf

Page 9 LPG for Marine Engines, The Marine Alternative Fuel

 2.1. Key Messages - Fact Sheet

LPG when used as an engine fuel has numerous advantages and a largely untapped potential for marine engines.

u The use of LPG as an engine fuel is one of the largest and fastest ones growing globally. The properties of LPG and
namely its low emissions and its virtually zero particulate emissions, can have an immediate positive impact on air
quality.
u It can also contribute to a 15% reduction in the EEDI (Energy Efficiency Design Index) of new buildings. Engine
technology is commercially available for 2-stroke engines, while 4-stroke engines have been used for power
generation on land and can be
marinised. LPG is also easier to
handle than LNG, as cryogenic
materials are not required for
the fuel tanks. This also results in
lower investment costs for such
a system.
u LPG is a viable alternative
gaseous fuel for all sizes and
types of boats and ships. It is
true that the alternative fuels
industry has grown dramatically
for both liquid and gaseous
fuels, but for LPG, although it is
relatively easier and more
economical to set it up on a vessel compared to LNG, the push remains still limited so far. Only recently, the
shipping industry and more particularly the bunkering sector, is considering a bigger role for LPG as a shipping fuel
for the years to come.
u The bunkering infrastructure for natural gas is not mature, whereas for LPG there is already considerable existing
infrastructure available around the world that can be used, storage facilities, export terminals, coastal refineries
with loading/unloading facilities etc.
u For LPG carriers, there are even more benefits to use LPG as fuel and in doing so save bunkering time.
u Some ship owners and manufacturers have already embraced LPG, and especially so with LPG prices being very
attractive.

The marine propulsion engine market is expected to witness robust growth during the forecast period owing to
various ongoing government investments and new regulations in the shipbuilding industry and inland waterways.

u It is true that today, the availability of large LPG fuelled engines is limited. MAN Energy Solutions developed, and
is commercialising, LPG burning engine to two-stroke dual-fuel line-up and GE’s combined gas, electric and steam
turbines (COGES). However, variants of large engines and propulsion configurations fuelled by natural gas have
been developed, which makes eases the way for further development of such engines to run on LPG.
u Due to advancement in technology, diesel or alternative fuel engines and gas turbines have attained greater
market penetration.
u Small inboard and outboard engines are almost exclusively targets for LPG, either as conversions similar to Autogas
vehicles, or as OEM models as those of Propel and recently also of Tohatsu, Mercury and Yamaha.
u Electric hybrids as a marine propulsion technology, have been used for many years, and recently have seen their
growth as a solution to improve efficiency, reliability and adjustability of the whole powertrain systems of most
types of ships and boats.

LPG for Marine Engines, The Marine Alternative Fuel Page 10

 The marine engines and propulsion system technologies segment can be divided into petrol, diesel, LPG, LNG, and
other propulsion system technologies such as gas and steam turbines, hybrids etc. In summary, a categorisation of
engines that can use LPG as a fuel, could be:

u Spark-ignited “petrol-LPG bi-fuel or LPG only” engines, first developed for the land-based power industry with
simplicity and good overall performance at lowest total emissions as prime requirements. They initially came into
the marine industry as engines for outboard and inboard engines.
u Diesel gas engines with direct LPG injection first appeared in the offshore industry where fuel flexibility and very
high-power density was of prime attraction. A concept unique in posing no particular requirements to the self-
ignition stability of the fuel gas and its diesel operating principle ensuring very complete combustion of the gas
fuel but at the cost of higher NOx emissions than other gas engine types. Its use in marine industry is limited.
u Diesel-ignited LPG engines with dual fuel capability originally developed for power plant use where their ability to
operate both on liquid and gaseous fuels at high specific power was a particular advantage. They burn LPG and use
marine diesel oil as pilot fuel. This is the most promising market, capable of operation on gas and/or HFO,
in different applications such as container ships, bulk carriers, ConRo4 vessels, and LPG carriers. Development
focus was originally on low NOx emissions at high loads, recently also on part load performance and variable speed
capability. The diesel-ignited gas/LPG engine was the first type to establish itself in the marine industry and is
currently the dominating engine type in this market.
u Gas turbines (could run on LPG), conventional gas turbines combined with power generator turbines to provide
power to the ship’s propeller, a system of ship propulsion known as “split-shaft gas turbine”. The gas turbine drive
shaft contains the turbine starter, while the auxiliary pumps drive the different systems. The gas turbine hot
exhaust gasses are fed into the power generator turbine. Gas turbine advantages are power density (i.e., high
power in a light weight, small footprint), fuel flexibility and highly reliable Dry Low NOx emissions combustion
system. They also provide superior availability for diverse military applications, ranging from patrol boats,
corvettes, frigates, destroyers and cruisers. Other potential applications include hydrofoils, fast ferries, cruise
ships, floating production storage and offloading vessels, offshore platforms, power barges, high-speed yachts and
LPG carriers.
u Outboard engines “Bi-fuel or LPG only” have become a marine propulsion alternative in protected lakes and rivers,
as well as fish farms, as a replacement of gasoline two and four stroke polluting engines from their exhaust, not to
mention also spillages during refuelling, of detrimental effect on the water and aquatic wildlife. In addition, there
are also noteworthy running cost benefits. The restrictions on the use of internal combustion engines on many
protected areas leave LPG fuelled outboard and inboard engines as the prime alternative.

The marine engine applications and vessel types market could be categorised as follows:
Large commercial ships, cargo ships, large ocean-going ships, very large gas carriers (VLGCs), tankers, bulk carriers,
containerships, passenger ships of all types, offshore service vessels, towboats, dredgers, house boats, recreational
craft, even military vessels, patrol and rescue boats, and many more, can be a target for the use of LPG with varying
attractiveness for each type, benefits and priority.

LPG can compete economically with LNG and probably also with low sulphur fuel oil after the global sulphur cap
changes to 0.5% for new builds.

u Retrofits will be less cost efficient than new builds.

u The current global production of LPG and its future increase opens up possibilities for LPG as a marine fuel.
u The spatial distribution of LPG storage facilities favours LPG over LNG, since the development of a bunkering
infrastructure remains a barrier.

4
Hybrid vessel of a RORO and a container ship

Page 11 LPG for Marine Engines, The Marine Alternative Fuel

 u Market introduction for a non-drop-in fuel, such as LPG, will always be a challenge, but easiest implementation
could be in LPG VLGCs, where fuel is already present (or can be bunkered in connection to cargo loading), and
where handling of LPG is well known and safely managed, thereby reducing the distribution costs.
u LPG has the advantage of more economical implementation and largely available and less costly infrastructure,
terminals, supply points. This is particularly important in certain sectors including small tankers, smaller container
vessels and ro-ro ships that operate in coastal areas and on inland waterways where LPG supply infrastructure is
always in proximity.

Safety issues linked to the use of LPG as a marine fuel must be addressed, but these are no more challenging than for
LNG. New technologies as those related to the use of LPG as marine fuel, as well as the use of LPG as a product itself,
require competent operators hence adequate training.

u Training in the specific installation and the handling of the product itself should always be part of any new project.

Modern equipment and advanced technologies call for increased requirements for fuel quality and the same holds
true also for LPG.

u LPG quality can vary significantly from country to country.

u Although large marine engines are being designed to accommodate varying quality of fuels, smaller ones used in
small boats in the recreational sector need high quality engine fuel. For such engines, having the LPG as an
acceptable competitive alternative fuel for current gasoline and CNG/LNG fuelled small engines, the right
“formula” can be based on the U.S. HD5 standard, but with low Sulphur (% by volume).
u Granted quality of LPG becomes particularly mandatory for professional and heavy-duty uses and marine outboard
engines.
The use of LPG as marine fuel is being discussed at a time when there is great attention on diesel emissions and
pressure has been put on the sulphur levels in traditional maritime fuels.

The environmental argument to convert from conventional polluting marine fuels, including diesel and gasoline, to
gaseous fuels and LPG is very strong today, both due to regulatory pressures (new IMO emissions limits), and also
increasing awareness of the carcinogenic effects of diesel emissions in general. All types of boats found on inland
waterways, rivers and lakes where any form of fuel pollution can cause serious consequences to wild life, fish and the
local environment become particular targets for LPG. Any spillage of gasoline and diesel will float on water and even
the visual impact of it can be disturbing and lasting.

The IMO recent emissions limits imposed on fuels used in the shipping industry and particularly in ECAs (emission
control areas), force the industry to look at alternative fuels as a way of complying with the new limits.

u CO2 emissions from shipping are double those of aviation.

u Maritime CO2 emissions could rise by 75% in the next 15 to 20 years.
u CO2 monitoring for all ships will establish a base line for future reduction.
u EU leading the way and a global system is under negotiation within the IMO.
u From 2018, large ships using EU ports required to report verified annual emissions.
u Stakeholder pressure to manage environmental and climate risks.

As the shipping industry considers alternatives to HFO, part of the market will shift towards marine gas oil (MGO)
and part towards alternative fuels.

u Severe PM pollution is clear on emission maps of global shipping routes.

LPG for Marine Engines, The Marine Alternative Fuel Page 12

 u IMO implemented a global cap on Sulphur in HFO of 0.5% from January 2020.
u Changes in IMO and EU maritime regulations on fuel quality and emissions is the driver for cleaner fuels. We see
a growing focus on CO2, methane slip and VOC:
u 40% reduction of carbon intensity per transport work by 2030 and 70% by 2050 compared with 2008
u 50% reduction of greenhouse gas emissions from ocean shipping by 2050 compared with 2008 SECAs,
limiting sulphur content of maritime fuels to 0.1%, are in place in North-America (USA and Canada)
and Northern Europe (Baltic Sea, North Sea and English Channel).
u Baltic Sea area: only for SOx.
u North Sea area: only for SOx.
u North American area: for SOx, NOx and PM.
u United States Caribbean Sea area: for SOx, NOx and PM (in effect from January 2014).
u Three local sulphur control areas have been defined in China (Pearl River Delta, Yangtze River Delta and Bohai Bay)
u Marine vessels equipped with scrubbers will retain the advantage of using lower-priced HFO.
u Shipping that takes place outside ECA areas might choose HFO or low-sulphur fuel oil (LSFO) depending on future
global regulations.
u Ships operating partly in ECA areas will probably choose MGO as a compliance fuel.
u Heavy shipping within ECA areas, however, might be incentive enough for a complete shift to clean fuels.

Leading marine propulsion engines manufacturers such as MAN, Wärtsilä, Rolls-Royce, Caterpillar, Cummins and GE
have dedicated professional staff with expertise in their company's entire product lines for identifying specific and
tailored solutions. The marine propulsion engines market is characterised by frequent mergers and acquisitions in a bid
to achieve competitive advantage and extensive R&D.

There are currently three main engines families in the market that can be used to run on LPG as a fuel:

u In a diesel cycle two-stroke engine, the MAN ME-LGIP series 14,15 as offered by MAN
u In an Otto cycle, lean-burn, four-stroke engine, the Wärtsilä 34SG series, currently only for stationary power plants.
u In a gas turbine the LM2500 series, as offered by GE, possibly in combination with a steam turbine or CO2 turbine.

MAN Energy Solutions has received 79 engines orders for its new MAN B&W ME-LGIP engine.

The market of smaller commercial and recreational vessels with inboard and outboard engines is governed by
different criteria, environmental concerns, particularly in protected lake, river and sea areas, together with economic
benefits are also drivers to shape the market in the years to come.

u This market is new and largely based on retrofits and conversions (and some new OEM engine developments),
particular attention needs to be played to the “marinisation” of the engines, fuel systems and related equipment,
to ensure good protection against corrosion from the sea water.
u There will also be a strong need for effective training of personnel at all levels in the distribution chain including
the users, the introduction of proper procedures and the correct selection of equipment, to transfer and store the
product as well as use it as a combustible fuel aboard the vessel.

The role of the various stakeholders is instrumental in driving growth of LPG in the marine sector as an engine fuel.

All principal stakeholders from design offices, marine engine manufacturers, shipyards, classification societies, ship
owners, cargo owners, ship operators, policy makers, regulators, governments, LPG industry distributors, associations,
need to be addressed with coordinated actions.

Page 13 LPG for Marine Engines, The Marine Alternative Fuel

 The next few years are bound to change the operations of the shipping industry, as there will be a tectonic shift in
fuels used and as such, major conversion and retrofit projects on existing vessels. Ship owners will need to begin
planning for future-proofing current new buildings.

u Currently LPG recreational boats and fishing boats exist mainly in USA, Chile, Germany, Italy, Spain, UK, Turkey,
the Nordic countries and also in the east, such as Indonesia.

VLGCs is an obvious target with significant additional benefits, the Exmar order of two new build VLGC capable of
running on LPG, and BW LPG to retrofit fifteen ships to LPG propelled dual fuel, are the first examples leading the
way.

u Other shipping segments of large vessels that have already started using natural gas (mainly LNG) as a fuel can also
be a target for LPG, the approaching IMO regulations being a driver.
u All types and sizes of boats operating in protected areas and emission restriction areas, coastal passenger routes,
coastal ferries, fishing fleets are also priority target as marine applications.
u The COGES concept of GE and associated consortium in South Korea is another example that shows the direction
that the industry wishes to take.

Using LPG as fuel can also be a good first step towards use of ammonia when this technology becomes available, due
to the compatibility of materials and expected similarities in engine design.

LPG for Marine Engines, The Marine Alternative Fuel Page 14

 2.2. Key Messages – Roadmap

Whether new builds or retrofitted, LPG fuelled vessels are clearly to play a role in the future. More and more new-builds
have been made LNG-ready, making it relatively easy to retrofit to LPG fuelling at a later point.

Short-sea routers, as well as ferries constantly operating between defined ports, are the main target sectors where LPG
may offer the biggest advantages. This consideration becomes even stronger when the operation is influenced by sailing
periods in Emission Control Areas (ECAs).

LPG carriers, containerships, tankers, cruise vessels, offshore vessels, roll-on roll-off (RoRo), and passenger ferries
represent typical vessel fleets that could be converted to LPG operation.

Taking all this into consideration it can be predicted that during the next ten years, LPG will find its way to new ship-
builds. Utilising the existing network and infrastructures in order to supply LPG at the necessity points in the world, LPG
could potentially be the best solution for the new fuel regulation.

There is growing evidence to suggest that LPG will have a major opportunity to displace traditional marine fuels and to
play in the marine market as:

u Emissions regulations today dictate the use of low sulphur fuels.

u Alternative fuels like LPG/propane are a viable choice – as they are almost all sulphur free.
u The higher costs of low sulphur diesel could make the use of alternatives a reality much sooner.

There are several inherent characteristics which support the LPG marine fuel.

u The increase in global production mainly in Asia and North America creates market opportunities as a big number
of “clean” ships will be required to be constructed and operated in that areas.
u The regulatory drive towards CO2 abatement initiatives in the light of 2030 regulations.
u Competitive LPG price.
u Global trade and industrial market growth.
u Adequate availability of bunkering infrastructure.
u Adequate supply of LPG product.
u Increasing awareness of the advantages of new technologies.
u Increasing number of new ship orders complying with regulatory developments for marine emissions.

LPG is at least as attractive as LNG with shorter payback periods, lower investment costs and less sensitivity to fuel
price scenarios.

LPG as marine fuel faces several strong barriers which need to be overcome:

u Customer economics: Investment for ship owners and economics for fleet operators.
u Positioning LPG to policymakers and decision makers: Need to be on a level playing field with other alternative
fuels.
u Technology development of new engines: In recreational sector, there is a slow rate with limited growth. In big
vessels, there are few early development projects under development.
u Commercialisation of the new engines: Sales, servicing and maintenance networks are required.
u LPG awareness for decision makers: Shared vision with marine engine manufacturers, naval architects and
designers, ship owners and ship operators need to be considered.

Page 15 LPG for Marine Engines, The Marine Alternative Fuel

 u Bunkering infrastructure: Development of bunkering infrastructure, uncertainty of LPG supply and bunker price are
issues of concern for a ship owner to invest in LPG-fuelled ship.

2.3. Key Messages – Recommendations

LPG industry stakeholders need to work together in a coordinated way in order to overcome the barriers and create
opportunities for market entry in the shipping sector. Recommendations to engage stakeholders are briefly
mentioned below.

u Governmental incentives, financial support and technology development in order to overcome the economic
challenge of new investments.
u R&D investment is absolutely key so as to accelerate technology development of new engines.
u Develop training support and distribution partnerships in new regions for facilitating commercialization and get
engines to market.
u Position LPG to policymakers and decision makers. Lobbying is one of the most important activities to ensure this.
Regulations and standards need to be issued wherever not available or not adequate.
u Participation in market specific conferences or new project developments for different types of vessels to raise
awareness of LPG.
u Establishment of global network of LPG bunkering terminals. The situation is sometimes described as a “chicken-
and-egg” dilemma. Until the bunkering infrastructure is in place, ship owners may not commit to LPG fuelled ships
and visa-versa.

LPG for Marine Engines, The Marine Alternative Fuel Page 16

hat are methanol is the simplest alcohol with or less the same composition as natural
us fuels. the lowest carbon content and highest gas used for households and power
st for the hydrogen content of any liquid fuel. generation, and in the industry. Its main
st-gen- Methanol is a basic building block for component is methane (CH4), the hydro-
d and hundreds of essential chemical com- carbon fuel with the lowest carbon
lving a modities and is also used as a fuel for content.
ersions. Chapter
transport. Three
It can be produced from a
r ships number of different feedstock resources
treated like natural gas or coal, or from renew-
-liquids, Fact Sheet
able resources such as biomass or
) and CO2 and hydrogen.
marily This Fact Sheet provides an overview of the product, the major LPG engine technologies and their major applications in
market segments. It provides a snapshot of the main stakeholders on the global market and addresses issues related to
safety, quality and market status.
eplacing
fossil 3.1. The Product – LPG as Marine Engine Fuel
ble oil)
The term “LPG”, liquefied petroleum gas, is applied to mixtures of light hydrocarbons which can be liquefied under
moderate pressure at normal temperature but are
gaseous under normal atmospheric conditions.

It consists predominantly of propane and butane

(normal butane and iso-butane), propylene and other
light hydrocarbons and its chemical composition can
Propane molecule Butane molecule vary. In some countries, the mix varies also according
to the season. Since LPG can be liquefied at low
pressures at atmospheric temperature, its storage and transportation is easier than of other gaseous fuels. It is stored
LPG
under pressure in tanks or cylinders.
ced in Liquefied petroleum gas (LPG) is by definition any mixture of propane and butane
mple by in liquid form.
3.1.1. For instance, in the USA, the term LPG is generally associated with
Production
er or by propane. Mixing butane and propane enables specific saturation pressure and
duction temperature characteristics.
LPG is produced either from natural gas processing – mainly – or from oil refining. LPG is a by-product of both these
sis could processes. At present, more than 60% of global LPG supply comes from natural gas processing plants, but the share
g renew- varies markedly among regions and countries.
ers, by
only. Natural gas processing
facilitate When gas is drawn from the earth, it is a mixture of several gases and liquids. Commercial natural gas is mainly
newable composed of methane. However, it also contains ethane, propane and butane in accordance with the specifications for
natural gas in each country in which it is distributed. Therefore, before natural gas is marketed, some NGLs, including
LPG (propane & butane) are separated out, depending on the “wetness” of the gas produced: NGLs represent 1 to 10%
of indus- of the unprocessed gas stream. Worldwide, gas processing is the source of approximately 60% of LPG produced.
being
for land- Crude oil refining
n cars, In an oil refinery, LPGs are produced at various stages: atmospheric distillation, reforming, cracking and others. The LPG
produced will be between 1 and 4% of crude oil processed. This yield will depend on the type of crude oil, the degree
of sophistication of the oil refinery and the market values of propane and butane compared to other oils products.
Worldwide, refining is the source of approximately 40% of LPG produced.

BioLPG/Renewable LPG
BioLPG/Renewable LPG is created from renewable and waste materials. The feedstocks undergo a series of
sophisticated treatments to purify their energy content. Just like LPG, BioLPG/Renewable LPG can be used in many
different sectors, wherever heat, light or power are required. BioLPG/Renewable LPG is chemically identical to
conventional LPG. It can replace conventional LPG but the two can also be blended and used by existing appliances. The
mission behind the development of BioLPG is to further reduce carbon emissions. BioLPG/Renewable LPG is not an

Page 17 LPG for Marine Engines, The Marine Alternative Fuel

 innovation for the future, it is already available on the European market in quantities that can service the energy needs
of thousands of families and businesses.

Although tied to the production of natural gas and crude oil, LPG has its own distinct advantages and can perform
nearly every fuel function of the primary fuels from which it is derived. The fact that it can be easily liquefied makes
LPG a highly versatile energy alternative and thanks to a wide variety of packaging and storage options, LPG has
numerous fuelling applications.

LPG is a viable alternative gaseous fuel.

LPG Makes Sense
It has high energy density compared with most other oil products and other alternative fuels and burns cleaner in the
presence of air. It has high calorific
value compared to other gaseous
Clean Efficient Widely available fuels and also high-octane number
• Gas is nature’s cleanest • Gas produces more energy • LPG is portable, can be (but a low cetane number). Its high-
fossil fuel per unit than any of the stored and transported
fossil fuels easily
octane number makes it suitable for
• Gas generates the lowest spark ignition engines (SI), while its
CO2 emissions per unit of • LPG is economical. It • Size and type of LPG
energy contains higher calorie containers can be adapted low cetane number makes it less
value per unit than other to local market favourable for use in large
commonly used fuels
Oil
Gas +38% CO2
Coal
+95% CO2
proportions in compression ignition
emission
emission
engines (CI) – diesel engines.

LPG is leading the energy transition

LPG is leading the energy transition
3.1.2. Worldwide
ObservationsProduction
Source: BW Analysis, EIA
High Level
5

LPG
The is LPG
global a supply driven
production in 2015,market, andtonnes,
was 284 million mostequivalent
global to LPG
aboutsupply growth
310 million tonnes ofcomes
oil by energy
from only a few regions

Bio-LPG
content, andisisunlikelyincreasingtobybecome about 2%anperimportant contributor
year. In comparison, the fuel consumption in the maritime sector was
estimated by IMO to be 307
Confidential. © 2019 IHS Markit . All rights reserved.
®
million tonnes on average in the period from 2010-2012. The production increase has been3
most profound in North America and the Middle East. The production increase in North America in the last few years
can be attributed to the substantial increase in shale gas production, which has turned the USA into a net exporter of
LPG since 2012.

LPG for Marine Engines, The Marine Alternative Fuel Page 18

 World LPG Production Facts5

There are new fields, pipelines, fractionators, export upgrades and even new terminals which are going to add more
LPG product to the international stage by 2025.

Worldwide LPG Projects

u Inpex, Japan’s largest oil & gas exploration and production company, brought the $40 billion Ichthys project in
western Australia into operation late 2018. Production so far has been extremely strong and it is expected to
produce 8.9 million Mt/y of LNG and 1.7 million Mt/y of LPG.
u Shell’s Prelude FLNG facility,475 kilometres north of Broome in western Australia, also started operation at the
end of 2018 and the first condensate shipment took place in 2019. Here LNG production is forecast to be 3.6 million
Mt/y and LPG at 0.4 million Mt/y, as the field is more condensate rich.
u Various expansions on stream were added to the South Pars field in Iran in March 2019.
u Japanese EPC contractors JGC announced that the $350 million Central Gas Plant Three (CGP-III) project in Bahrain
was due to start commercial operations following the completion of commissioning work. This will recover about
0.2 million Mt/y of LPG. A new 30,000 Mt refrigerated storage will be built.
u There are projects in Saudi Arabia, and the Jazan Refinery Project in the south west of the country is the first to
come on stream. It is a $9 billion project in two phases, a simple hydro skimming refinery to start off, running
400,000 barrels a day, and producing 0.6 million Mt of LPG at full capacity. It is slated for export and there is a
major marine terminal associated with it.
u The Kuwait National Petroleum Company (KNPC) have their Gas Train-5 project due for commissioning by early
2020. This will increase LPG production in Kuwait by up to 1.8 million Mt/y at full capacity.
u Equinor are developing the giant John Sverdrup field in the Norwegian sector. At peak production, it will account
for a quarter of Norwegian oil output. Oil will be processed in Mongstad and gas via Statpipe to Karsto. LPG
production from John Svedrup is likely to reach 0.4 million Mt/y.

There is significantly more non - USA production growth potential already identified, and yet there is still more to come
beyond 2020. The USA will certainly be the primary source of production growth over the next four to five years, but
we should not dismiss the importance of other regional projects and their impact on the overall seaborne trade.

3.1.3. Transportation

The global LPG trade was approximately 95 million tonnes in 2018 and hence about one third of the LPG is exported6.
LPG can be transported by three different ship types, depending on how the cargo is stored:

u refrigerated, typically at -50OC at close to ambient pressure.

u semi-refrigerated, typically at -10OC and 4-8 bar pressure.
u under pressure, typically at 17 bars, corresponding to the vapour pressure of propane at about 45OC.

There are currently about 300 very VLGCs.

5
ETAI (2019)
6
IHS Waterborne, NGL Strategy, Kpler, BW LPG Analysis

Page 19 LPG for Marine Engines, The Marine Alternative Fuel

 Global LPG imports by VLGC are expected to increase 7

Global total imports by VLGC will reach 98.5mt in 2025 from 69.1mt in 2018. Far East will absorb 50% of the increase,
followed by Indian Ocean and Southeast Asia.

Semi-refrigerated ships typically have a capacity of 6,000 to 12,000 m3, whereas compressed LPG ships typically take
1,000 to 3,000 m3.
VLGC Fleet Profile
The transportation of 294 ships on water with 12 ships delivered within Q1 2020. Orderbook at 35 ships or 12%
LPG is covered by the Global VLGC fleet profile — average age: 9.8 years BW LPG VLGC market share of 14%

International Code for 50

302 315 321
400 Other VLGC NB
282
265 35
the Construction and
260 300
40 241
199
156 164 200 BW LPG
141 143

Equipment of Ships
30 VLGC Fleet 47
100
Number of VLGC

44
20
Carrying Liquefied 35

21
9 0
10 17 17
Gases in Bulk (IGC 0 3 2
13
8 10 12
9
-100

-200 3rd Party VLGCs on water

Code), which is aimed -10 -300

247

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
at the safe carriage of Delivered VLGCs Recycled VLGCs VLGCs on orderbook

liquids with a vapour

Recycling candidates VLGC count at year end (RHS)

pressure above 2.8 bar

38 9 47
at 37.8OC, and applies Owned VLGCs1 Time chartered VLGCs vessels

to all ship sizes. If an Source: BW LPG analysis, Clarksons

[1] Owned VLGCs includes 1 bareboat vessel and 2 vessels 50% owned by a Joint Venture
[2] Data as of 24 April 2020 10

LPG carrier was to be

powered by LPG, this is in principle for this particular ship type covered by the IGC Code without having to comply with
the IGF Code (International Code of Safety for Ship using Gases or Other Low-flashpoint Fuels). However, the IGF Code

can be used for further clarification. For other

ships, the use of LPG as fuel has to be covered
through alternative compliance with the IGF
Code.
Statistical Review of Global LPG | 29

region is coming off a three-year period during which LPG demand increased 230,000 bbl/d annually, according to ESAI
TRADE, INFRASTRUCTURE AND SHIPPING
Energy.

Regional LPG Trade Flows

Russia
Exports: +3pc
Europe
Exports: +2pc China
US
Imports: +4pc Imports: +18pc
Exports: +28pc Japan
Exports: +4pc Imports: -2pc
Imports: +7pc

Qatar, Saudi Arabia & UAE

Algeria Exports: +7pc
South Korea
Mexico Exports: -3pc India
Imports: -2pc
Imports: +16pc Imports: +17pc

Nigeria
Exports: +3pc
Brazil
Imports: +30pc
Thailand
Imports: -66pc

Australia
Argentina Exports: +14pc
Exports: -15pc

— Showing selected annual import/export changes in 2017 for trade

Regional LPG exports and imports, 2007-17

7
BW LPG
Regional LPG Movements & Markets
2007 2017

Imports Exports Imports Exports

LPG for Marine Engines, The Marine Alternative Fuel

North America 11,341 6,523 5,704 39,226
Page 20
South and Central America 5,950 4,403 11,035 2,574

Europe and Eurasia 18,001 18,871 26,870 23,130

Middle East 1,494 27,229 1,352 37,056

Africa 3,813 10,454 6,571 10,195

 3.1.4. Bunkering
5
A large network of LPG import and export terminals is available around the world to address trade needs. Recently more
LPG export terminals have been developed in the
USA to cover the increased demand for
competitively priced LPG products. In figure below,
import and export terminals of various sizes in
Europe are shown to illustrate this point, while
many other storage facilities can be found in several
additional locations. In these locations, it is possible
to develop bunkering infrastructure by creating
distribution systems in addition to the existing
storage facilities.

LPG can effectively be supplied as a bunker fuel to

vessels using existing facilities such as terminals and
refineries, saving on initial costs to develop
infrastructure. There are likely to be more than
1,000 such facilities that have pressurised LPG storage tanks around the world. It is typically easier to liquefy LPG than
he LNG, makingLPG
Pioneering it more economical and easier to handle as a bunker fuel.
Propulsion
. BW LPG vessels specialize in the transportation of cleaner-
burning fossil gas, so a few years ago, the team considered if
y. It they could use LPG for propulsion. The technology needed to
BW power huge two-stroke diesel engines on liquid gas injection
propulsion was not available, and market demand was nascent.

Using decades of maritime and gas experience, the team

went to work. In collaboration with key engine manufacturers,
s BW LPG invested in research and development and now, four
years later, is delivering from this collaboration. BW LPG has
committed fifteen of its VLGCs to be retrofitted with LPG dual-fuel
propulsion engines, a commitment of over USD 130 million.

LPG Propulsion and Benefits

During each of these vessel’s regularly scheduled dry-docks,
two LPG deck tanks are installed on deck. These tanks are
filled using the cargo system during loading. LPG is drawn
from the tanks into a fuel gas supply system and piped to the
engine. A small amount of compliant pilot fuel, such as diesel,
is injected into the engine as the piston nears the top. It sparks
under pressure, and LPG burns to create propulsive force.

These LPG dual-fuel engines will reduce emissions of Sulfur Oxides

Main
(by Bunkering
about Hubs
97%), Particulate Matters (~90%), Carbon Dioxide,
CO2,(~25%) and Nitrous Oxides, N2O,(~20%). This means that vessels
Singapore,
powered Rotterdam,
by LPG will be in Fujairah and Houston
full compliance are and
with current thefuture
world’s top four major bunkering hubs. Other key global
bunkering ports include Antwerp, Hong Kong, Gibraltar,
SOx emission requirements, including for Emission Control Areas Panama and Los Angeles/Long Beach.
(ECAs) and Sulfur Emission Control Areas (SECAs). CO2 and N2O are
greenhouse gases, so
Just six countries arewhile LPG is not
responsible fora almost
zero carbon
60% fuel, it is anbunker sales8. Even though there are approximately 400
of global
important stepping stone on the journey to full decarbonisation.

LPG propulsion also offers efficiency gains on many fronts. Output

efficiencies
8 will improve by about 11 percent with LPG when
World Oil Outlook
compared with compliant fuels. This means that we capture
significant improvements in total voyage fuel economics. And
Page 21 LPG for Marine Engines, The Marine Alternative Fuel
with dual-fuel capability, these engines provide fuel flexibility
which translates to full redundancy to ensure uninterrupted
operations and buffering from fuel price sensitivities.
 major bunkering ports in the world, most of the demand is concentrated in a few strategic ports.

Number of LPG terminals

Source: Argus

3.6. Global LPG Floating Storage Overview

Rotterdam, the biggest port in Europe, is the third largest bunkering port with annual sales of around 10.5 million MT.
Hong
LPG Kong
Floating and
Storage Antwerp
Units complete
(FSUs) are used theensuring
for STS transfer, world's top
supply five bunkering
and demand chains are met ports by volume, with annual sales of 7.4 million MT
with no storage
depletion. After a flood of U.S. exports into Asia, the market is awash with LPG and supplies are being stored in ships
and 6.5 million MT respectively.
anchored off main ports such as Singapore.
Most of these ships are sit off a port but in international waters, and preferably as close to a grouping of ports.

Other
LPG FSUs:important ports include Busan (South Korea), Gibraltar, Panama, Algeciras (Spain), Los Angeles/Long Beach (US)
andEnable
u
Shanghai (China)
customers to resolve product shortages
u Address the problems associated with longer voyages
u Gain access to new sources of supply
In
u
all the above hubs, it is possible LPG
Deals with price fluctuations
to be provided as bunker fuel.

The emerging glut, the latest product to be hit by oversupply, comes amid a wave of supplies from the United States,
Example
where LPG is a1:
by-product of fracking.
STS LPG bunkering can now take place at Portland Port
The FSV usually has a fixed monthly cost, normally the time charter rate. It consumes bunkers for keeping the cargo
cold, warming it up and providing energy to all the moving parts.
LPG ship to ship (STS) bunkering has been authorised at a UK port to help it support sustainable fuel usage in commercial
Currently there are around 25 ships performing some type of floating storage operation. There are a number of reasons
shipping.
that STSfortransfers
come to mind of LPG
putting a “Floater” product
in place, the maincan nowto take
one being place
penetrate in the
a growing marketinner
whereor outer
harbour and alongside at Portland Port
imports

in Dorset. STS Marine Solutions has been working with

LPG Bunkering Page 38
Portland Port to finalise the project and is the first
company that has been issued with a certificate by
Portland Harbour Authority to manage LPG STS
operations within harbour waters. It has deep water
with sheltered anchorages and berths, all of which is in
close proximity to the main English Channel shipping
lanes.

LPG operations management

STS Marine Solutions will screen the vessels that are

going to be involved in LPG bunkering for suitability
and compatibility based on location, equipment
available and weather conditions.
Portland Port

LPG for Marine Engines, The Marine Alternative Fuel Page 22

 + Sources & Uses + Topics + Geography Search eia.gov

Hydrocarbon
Example 2:
gas liquids explained
Port of Fujairah in United Arab Emirates
Prices for hydrocarbon gas liquids
In preparation of the IMO 2020 transition, the Port of Fujairah, which is among the three biggest bunker markets in the
BASICS PROPANE PRICES
world, implemented several strategies in terms of infrastructure which provided a soft landing during the COVID-19+MENU
lockdowns last year. While it is working on developing LNG bunkering infrastructure, the port is also considering
Hydrocarbon
establishing LPGgas liquids
loading armsprices are related
to its facility to oilincreasing
as it receives and natural gasfor
inquiries prices and
the sector. Also in Hydrocarbon
are related to supply and demand
Prices for hydrocarbon gas liquids (HGL) are related to their sources (crude oil and natural gas) and to their gas liquids explained
3.1.5. Pricing
demand and supply. Until 2009, U.S. spot prices for natural gas and crude oil were closely related, in terms Hydrocarbon gas liquids
of dollars per million British thermal unit (Btu), and the U.S. spot price for propane generally tracked closely Where do hydrocarbon gas
LPG
to the is traditionally
spot a cheaper
price for West fuel than(WTI)
Texas Intermediate marine gas
crude oil.oil
This(MGO). Using
historical our dual-fuel
relationship, engine liquidsitcome
technology,
which reflected from? to
is possible
international market trends, was based on the general assumption that most fuels are interchangeable
take advantage of fluctuating fuel prices in the future. Importantly, the ability to use LPG cargo as a supplement
Transporting fuel
and storing
because the United States was a net importer of propane and other HGL products. As a result, prices of
source provides significant cost savings for VLGC owners or charterers, including reduced time andof hydrocarbon
Uses fees for fuelgas
HGL in the United States were bound by international market dynamics. liquids
bunkering.
Imports and exports

Chart
Line ‣ 2011, LPG has
Since
Prices
Spot prices for hydrocarbon gas liquids, natural gas, and crude oil, January
2002-October 2020 been sold in the USA,
on an energy basis, at a
dollars per million British thermal units
Learn more
$30 discount to crude oil,
Refiner Petroleum Product
but Prices
significantly higher
by Sales Type-Propane
$25
than(consumer
that of natural
grade) gas
$20 as shown
HeatingonOil the
and Figure
Propane
$15 on Updatethe left. A
decoupling of LPG andpropane
U.S. weekly residential
$10 price by region and state
oil prices, and the
Winter Heating Fuels
$5 reduction in the price of
Petroleum and other liquids—
LPG may be attributed
$0 Prices
to the increased yield of
02

03

05

06

07

09

10

12

16

18

19

0
11

Articles on hydrocarbon gas

-0

-0

-1

-1

-1

-1

-2
n-

n-

n-

n-

n-

n-

n-

n-

n-

n-

n-

n-

propane
liquidsfrom shale gas
n

n
Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

Ja

crude oil natural gasoline isobutane normal butane production.

propane natural gas ethane
This development also
Note: Prices are monthly average of close-of-day spot prices; crude oil is Brent; natural gas is Henry Hub; HGL products are
at Mt. Belvieu non-LST (Lone Star Terminal).
Also on
resulted in Energy
the US
Source: U.S. Energy Information Administration from Bloomberg turning
Explained a net
from
Click to enlarge Oil prices and outlook
importer into a net exporter of LPG
U.S. energy facts
after 2011.
Natural gas
Normal
In 2011, the butane has of
spot prices about 10%
propane at higher
the Mont Belvieu, Texas trading hub began to move away from the
volumetric
spot energy
prices of crude densityproducts
oil and refined thansuch as gasoline and naphtha (on a dollar per Btu basis).
Initially, this move reflected
propane, but is typically more the switch in the U.S. trade position from a net importer to a net exporter of
propane. By 2013 and 2014, the surplus of propane stocks in the United States (that resulted from
Frequently asked
expensive. Furthermore, in outboards
continuing increases in production, particularly from natural gas processing plants) began to exceed the questions
engines the high boiling point of
capacity of export terminals to send the product to overseas markets, depressing the U.S. price of propane Does EIA have energy
normal butane prevents the use of
even further. consumption and price data for
pure butane in colder climates. cities, counties, or by zip code?
Normal
Therefore,butanethe
pricesuse
began
oftopropane
exhibit similar
or behavior in early 2012, and isobutane prices began to fall Does EIA have projections for
closer to propane prices by early 2013, reflecting the high cost required to move U.S.-produced HGL to energy production,
propane-rich mixture of LPG is
overseas markets. Since early 2017, when the last of major liquefied petroleum gas (LPG: propane and consumption, and prices for
expected for small boats, and butane individual states?
butanes) export capacity expansion projects was completed, the difference in absolute terms (dollar per
when LPG is used as fuel for ships.
Btu) between LPG prices in the United States and in the international market has narrowed, as has the What is the outlook for home
discount for LPG relative to crude oil. The export terminal capacity and growth in the tanker fleet capable of heating fuel prices this winter?
shipping LPG overseas have allowed the United States to become re-integrated into the international LPG
market, though now as a net exporter rather than a net importer.

Page 23 LPGas
U.S. spot prices for ethane generally tracked crude oil spot prices until 2008. Gradually, forproduction
Marine Engines, The Marine Alternative Fuel
growth in the United States overwhelmed the ability of the domestic petrochemical industry to increase its
consumption of ethane, the price of this commodity delinked from crude oil prices and, starting in mid-2012,
began to closely track natural gas prices. This change was the result of a lack of alternative markets for
 3.1.6. LPG propulsion – Fuel Cost Benefits

With retrofitted dual fuel engines, there is the option to run on LPG when it is more attractively priced, reducing the
overall fuel price risk, though conversion is slightly more expensive than scrubber retrofitting.

u Economic efficiencies
u Savings from reduced fuel consumption
u Buffered from fuel price sensitivity with full dual-fuel flexibility
u Seamlessly switch between LPG and compliant fuels
u More efficient engines are cheaper to maintain

Estimated fuel consumption

LPG Propulsion - Fuel Cost Benefits
Price differentials
10% and 15% lower consumption vs compliant fuel and scrubbers US$ per day US$ per year Payback time
between Compliant fuel IRR
savings savings (years)
USD 20/ton fuel cost savings from replacing fuel oil barge with and Propane (US$/ton)
loading LPG at the terminal 0 $2,000 $540,000 18.5 1%
Lower price of LPG compared to compliant fuel for both 2020 and $100 $5,000 $1,350,000 7.4 12%
2021
$128 $6,000 $1,620,000 6.2 15%
Price differentials have decreased following the recent collapse of
oil prices. However, we expect the price differentials to widen $150 $7,000 $1,890,000 5.3 18%
again when oil market recovers $250 $10,000 $2,700,000 3.7 26%

Fuel price differentials

500

400
US$ per Metric Ton

300

200
128
74
100

-100

Heavy fuel - Propane Compliant fuel - Propane

20
Source: Platts, Bloomberg. US Mont Belvieu spot price for LPG + fixed terminal fee of USD 26/ton, Historical fuel prices is Panama historical prices + USD 15/ton delivery cost. Future fuel oil prices are Bloomberg
fair value price for US Gulf Coast + USD 15/ton delivery fee + USD 30 price premium as an estimate of Panama delivered cost.

The upfront cost of LPG propulsion retrofitting is significantly higher than that of scrubber retrofits with scrubbers
costing anywhere between US$2M and US$3M per vessel. However, the direct impact can be seen in fuel consumption.
Based on calculations by Drewry, there should be at least a 15% reduction in fuel consumption as compared with high-
sulphur fuel oil and 12% reduction in fuel consumption as compared to low-sulphur fuel oil over the next five years.
While LPG is perhaps the best bet in terms of fuel consumption, it loses out on fuel costs. HSFO leads the tally by only
4% as compared with LPG and a whopping 32% when compared with compliant low-sulphur fuel. This makes LPG an
ideal candidate among the three options, which is further affirmed by the earnings per day commanded by each vessel
type. Based on their estimations and calculations, an LPG-fuelled vessel should overtake an HSFO-fuelled vessel by 2023.
According to Drewry’s assumptions of earnings and fuel consumption, when taking into account the US$9M upfront
capital expenditure, the payback period for a new build vessel costing close to US$80M increases by about eight months.

LPG for Marine Engines, The Marine Alternative Fuel Page 24

 This presents a lucrative opportunity, as any earnings beyond that period would enhance the cash flows. It makes both
economic and environmental sense to switch to dual-fuel LPG engines, mainly for young or new mid- to large-sized
vessels.

3.1.7. Environmental, emissions to air and water

LPG combustion results in lower CO2 emissions compared to oil-based fuels due to its lower carbon to hydrogen ratio.
Compared to natural gas CO2 emissions are a bit higher, but some gas engines can suffer from methane slip, which
increases their overall greenhouse gas
emissions. Considered in a lifecycle Alternative fuels
perspective, LPG production is associated Basis for CO2 calculation

with lower emissions than oil-based fuels or

natural gas. The combination of low
production and combustion emissions
yields an overall greenhouse gas emissions bunker

reduction of 17% compared to HFO or bunker

MGO. This is comparable with the vessel

greenhouse gas emissions from LNG, which vessel

strongly depend on the amount of methane ”Wake”

Wake
leak and could be slightly lower or higher
depending on the production and
Prospects for energy and maritime transport in the Nordic region

combustion technology.
Public

Greenhouse gas emissions in kg CO2eq/GJ for oil-based fuels, LPG and LNG are given in the table below. A methane slip
of 1% and an energy consumption for liquefaction of 7% are assumed for LNG. Because the global warming potential
for LPG and n-butane are three, and for isobutane four times the global warming potential of CO2, compared to 25 for
methane, any slip of un-combusted fuel through the engine would result in less greenhouse gas emissions for LPG than
for LNG.

The use of LPG also has benefits related to pollutant emissions. It virtually eliminates sulphur emissions, and can be
used as a means of compliance with low sulphur local and global regulations. The reduction of NOX emissions depends
on the engine technology used.

For a two-stroke diesel engine, the NOx emissions can be expected to be reduced by 10–20% compared to the use of
HFO, whereas for a four-stroke Otto cycle engine, the expected reduction is larger and may be below Tier III NOX
standards. In order to comply with these standards, a two-stroke LPG engine should be equipped with Exhaust Gas

Page 25 LPG for Marine Engines, The Marine Alternative Fuel

 Recirculation (EGR) or Selective Catalytic Reactors (SCR) systems. Both solutions are commercially available. The use of
LPG as a fuel will, like LNG, to a large degree avoid particulate matter and black carbon emissions.

CO2 Emissions of Fuel Alternatives in Shipping

Maritime Knowledge Centre, TNO and TU Delft MIIP 019 - 2016

4.2 WTP CO2 performance of potential marine fuels

Bio Ammonia
Renewable Liqufied Hydrogen
E mobility (wind electricity)
Bio-Methane
Nucleair power
Bio-Formic Acid
Bio DME
Bio Methanol (Black Liquor)
Bio crude pyrolysis
Liquified Biogas
Bio Ethanol (Sugar Cane)
Hydrogen and CCS
Straight Vegetable Oil
E mobility
Natural Gas and 20% Bio-Methane
Ammonia
Natural Gas
Biodiesel (Rapseed oil)
LPG (Remote Gas)
LNG onshore Qatar
LNG 99% pilot fuel
Gasoline
Floating Liquid Natural Gas (FLNG)
LNG 70% dual fuel
Marine Diesel Oil (MDO)
Heavy Fuel Oil (HFO)
Low Sulphur Diesel (10 ppm S)
LNG
Liquified Hydrogen from Natural Gas
CNG (250 bar)
Methanol (Remote Gas)
Gas to Liquid (GTL)
DiMethylEther (DME)
Diesel

0 10 20 30 40 50 60 70 80 90 100

Figure 8: WTP CO2 performance (in gr CO2eq/km)

LPG for Marine Engines, The Marine Alternative Fuel Page 26

16-01-2017 Final Report – Framework CO2 reduction in shipping 15

 3.1.8. Order book

LPG marine fuel is available now, diesel engines can be also retrofitted to burn it.

SHIPPING COMPANY/OWNER SHIP TYPE/SIZE (M3) ENGINES ON OPTIONAL ENGINE TYPE SHIPYARD ESTIMATED TIME OF CLASS
ORDER ENGINE DELIVERY
ORDERS
NEW BUILDS
Exmar LPG VLGC 86,000 2 8 6G60ME-C9.5-LGIP Jiangnan Shipyard 2Q/4Q 2021 Lloyds
cbm Group Register

East Pacific Shipping with Medium size LPG 3 MAN 2 stroke Hyundai Mipo Dockyard 2022
Equinor Gas carriers 38,553-m3
Tinjin S.W.Southwest Maritime LPG VLGC 86,000 1 1 6G60ME-C9.5-LGIP Jiangnan Shipyard, The first 2H 2021
(TSM) cbm owned by China State
Shipbuilding Corp
(CSSC)
Kumiai Navigation LPG VLGC 84,000 3 7G60ME-C10.5-LGIP KHI 2H 2021 / 1Q 2022
cbm
Kumiai Navigation LPG VLGC 40,000 1 KHI
cbm
Avance Gas Holding (AGAS) LPG VLGC 91,000 2 2 7G60ME-C10.5-LGIP South Korea’s Daewoo 4Q 22/1Q 23 Lloyds
cbm Shipbuilding and Register
Marine Engineering
(DSME).
Geogas LPG VLGC 91,000 2 7G60ME-C10.5-LGIP Hyundai Samho Heavy
cbm Industries (HSHI)
NIETO LPG LGC 38,000 1 7G50ME-C9.6-LGIP HMD 2020 Lloyds
cbm Register
Byzantine Maritime LPG LGC 38,000 2 2 7G50ME-C9.6-LGIP Lloyds
cbm Register
Hartmann LPG Tanker 5,000 3 2 5S35ME-9.7-LGIP CIMC-SOE 2H 2021
cbm

Trafigura (Trading company) LPG VLGC 84,000 2 4 6G60ME-C9.5-LGIP HSHI 2023

cbm
IINO Kaiun Kaisha LPG VLGC 91,000 2 3 (DSME). 1Q 2023
cbm
Union Maritime LPG VLGC 84,000 1 1 Hyundai Heavy 2022
cbm Industries
NYK Lines (Japan) LPG VLGC 91,000 2 KHI 2022
cbm
Petredec Holdings (Eastern) PTE LPG VLGC 93,000 6 Jiangnan Shipyard January, March and DNV
Ltd (“Petredec”) cbm (Group) Co. Ltd May 2023 and the
other vessels within
Q2 and Q3 2023

RETROFITS
BW LPG LPG VLGC 15 6G60ME-C9.2-LGIP China 2H 2020/2021 DNV
TOTAL 71 47 24

BW LPG: GEMINI 80,000 m3 VLGC the world’s first LPG-fuelled vessel on the water.

Page 27 LPG for Marine Engines, The Marine Alternative Fuel

 3.1.9. Main Advantages of LPG as Marine Fuel

u Available in large quantities everywhere in the world and in production surplus. LPG is soaring in the wake of rising
global natural gas production. The US is the main supply of incremental production going forward considering that
many of its gas deposits are especially wet which means that they contain a large fraction of gas liquids such as
butane and propane. Indeed, for the moment, supply is outstripping demand and this is projected to continue over
the medium-term. According to the WLPGA, this surplus could hit 27 million tonnes per year going forward. This
overhang represents approximately 12% of global international bunkering demand.
u Offers the longest running range of any alternative fuel option. Due to a higher-octane rating and efficient
combustion, LPG engines can use higher compression ratios resulting in more power and better fuel efficiency.
u Meets worldwide emissions standards/IMO requirements, therefore a switch to LPG has significant potential in
emissions reduction of hydrocarbons, CO, CO2, also NOx, GHGs and PM in general.
u Reduces VOC evaporative emissions/ a new requirement in commercial ports around the world.
u LPG is nontoxic, hence not harmful to soil or water when spilled or leaked. Gasoline and diesel fuels in the water
are harmful to humans and in many cases fatal to aquatic life. Floating fuels and oils are also particularly noxious
because they reduce light penetration and the exchange of oxygen at the water’s surface.
u LPG is stored at lower pressures than i.e. CNG making storage tanks lighter and more economical.
u Cleaner and easier to install, maintain and handle.
u Harnessing LPG propulsion translates into cleaner, more efficient engines that are cheaper to maintain. In addition,
LPG has a range of properties that enables it to be used in hundreds of different applications. I
u It has lower lifecycle costs - lower cost for ship owner.
u It saves bunkering time for large LPG tankers that can use the cargo as fuel.
u It is more economic (LPG prices vs fuel oil prices)
u It is an increasing availability of LPG network. Small investment is required to setup an LPG bunkering point.

LPG for Marine Engines, The Marine Alternative Fuel Page 28

 3.1.10. LPG Propulsion Sustainability in Summary9

LPG as a marine fuel for VLGCs offers multiple efficiency gains.

Environmental Sustainability

Cleaner fuel-lower emissions

u Move maritime industry closer to a cleaner future of zero carbon propulsion

u LPG versus compliant fuel

u Consumption down by ~10%

u Sulphur oxides down by ~99%
u Particulate matter down by ~90%
u Greenhouse gases down by ~15%
u Nitrogen oxides down by ~10%

u LPG vs scrubbers

u Consumption down by ~15%

u Sulphur oxides down by ~99%
u Particulate matter down by ~50%
u Greenhouse gases down by ~20%
u Nitrogen oxides down by ~10%

Economic Sustainability

u Improved Efficiencies
u Full compliance with current and future SOx emission requirements, including ECA and CECA areas
u Technology for LPG marine engines is a necessary and complementary step towards zero-carbon
propulsion technology
u Fuel flexibility of dual-fuel engines ensures optionality and full redundancy for uninterrupted operations
u Easier to handle and operate compared to fuel oil or LNG
u Elimination of bunker quality issues, spill risks and waiting time

u Cost Savings
u Savings from reduced fuel consumption
u Buffered from fuel price sensitivity with full dual-fuel flexibility
u Seamlessly switch between LPG and compliant fuels
u More efficient engines are cheaper to maintain
u Lower installation costs and cheaper operating and maintenance requirements than LNG equivalents
u Higher energy content, thus lower fuel consumption
u Bunkering directly at load terminal saves time for bunkering and costs for bunkering barge
u Future Proof

u Full compliance with current and future SOx emission requirements, including ECA and CECA areas

9
BWLPG

Page 29 LPG for Marine Engines, The Marine Alternative Fuel

 u Technology for LPG marine engines is a necessary and complementary step towards zero-carbon
propulsion technology
u Technology is a stepping-stone towards ammonia as a zero-carbon emission fuel cleaner and easier to
store and handle environmental benefits similar to LNG, with one major improvement of no methane slip

u Readily Available Supply

u Large network of import and export terminals around the world can become LPG bunkering points
u Ship-to-ship from smaller LPG carriers (~500 vessels in service)

u Operational Efficiencies

u Cleaner engines, cheaper maintenance

u Improve output efficiencies by ~11%
u Improve total voyage fuel economics
u Easy storage, faster refuelling
u Wide availability of bunker ships and facilities

There are advantages especially for small boat engines:

u LPG is more reliable for occasional used equipment as are often the outboard engines.
u LPG meets local/regional/global emissions standards for inland water ways lakes rivers.
u An LPG filling station installed on pontoons for marine use, with tank and dispenser unit, costs at about 70,000-
80,000 thousand Euro and can be easily and quickly positioned at any place without any environmental and
pollution risk.
u In the UK, many seaports have LPG filling stations, and more are located around Europe e.g. Germany, Venice etc.

Retrofitting of existing vessels

Carbon Footprint Comparison and Global VLGC fleet
Compared with a new build, retrofitting an existing ship:
BW LPG has committed to retrofit 12 vessels with dual-fuel LPG propulsion engines, which will
emit significantly less carbon emissions than ordering new vessels
u Emits 97% less carbon during construction
u Takes
Carbon two months,
footprint versusantwo
of retrofitting years
existing VLGC toiscomplete
substantially lower than building a new VLGC

u Does not add CO unneeded

emissions (in shipping
2 1,000 tons) capacity to the market CO LPG newbuild LPG conversion
2
LPG conversion case 2,059 emissions case case
u Retrofitting offers significant environmental Production
Construction and economic
Construction 10,623 208
LPG newbuild case 70,693

benefits 0 10 20 30 40 50 60 70 80 Production 60,070 1,851

Source: DNV GL

Global VLGC fleet – majority of modern vessels

Modern Scrubber
16%

Modern
29%

Carbon Footprint Comparison and Global VLGC fleet

Orderbook Scrubber
49%
Non modern Orderbook
Scrubber 10%
4% Orderbook LPG
20+ propulsion
Non modern 51%
12%
29% BW LPG has committed to retrofit 12 vessels with dual-fuel LPG propulsion engines, which will
emit significantly less carbon emissions than ordering new vessels
Source: BW Analysis as of 24th April 2020 4

Carbon footprint of retrofitting an existing VLGC is substantially lower than building a new VLGC

CO2 emissions (in 1,000 tons) CO2 LPG newbuild LPG conversion
LPG conversion case 2,059 emissions case case
Production
Construction
LPG newbuild case 70,693 Construction 10,623 208

0 10 20 30 40 50 60 70 80 Production 60,070 1,851

Source: DNV GL

Global VLGC fleet – majority of modern vessels

LPG for Marine Engines, The Marine Alternative Fuel Modern Scrubber
16%
Page 30
Modern
29%
Orderbook Scrubber
49%
Non modern Orderbook
Scrubber 10%
4% Orderbook LPG
 3.2. Marine Engine Technologies

Clear majority of ships today use diesel engines similar in principle to those in cars, trucks, and locomotives. However,
marine fuels differ in many aspects from automotive engine fuels. The viscosity of marine fuels is generally much higher,
up to 700 cSt, whereas road diesel fuel rarely exceeds 5 cSt. The quality of marine fuels is generally much lower and the
quality band is much wider than are those of land-based fuels. Therefore, marine engines must accept many different
fuel grades often with levels of high sulphur content that would seriously harm the function of exhaust gas recirculation
(EGR) and catalyst systems on automotive engines. This also means that traditional emissions abatement technologies
for road based transport such as diesel particulate filters, exhaust gas recirculation systems, and oxidation catalysts
cannot easily be used on ships. The risks of sulphur corrosion and very high soot emissions call for different solutions
such as scrubbers or alkaline sorption systems as separate solutions or in combination with technologies known from
road-based emissions abatement technologies.

Today diesel engines are the principal means of marine propulsion. These are broadly classified into following
categories:

u High speed four stroke engines (>1000rpm)

u Medium speed four stroke engines (300-1000rpm) and
u Low speed two stroke engines (<300rpm)

While some ships, due to their design and operational profile, use either slow or medium speed diesel engines as the
principal mode of propulsion, most ships are fitted with additional medium or high-speed diesel engines to drive
generator sets for auxiliary power purposes.

Engines of interest mentioned below include those that can be converted to run on LPG. Marine engines can be
categorised as below:

u Mono fuel engines

These engines use solely LPG as a fuel. Many of this type need to be converted from diesel (requiring major adjustments,
parts of the engine need to be rebuilt). When conversion is made from diesel to LPG, the CO2 savings are lower than
could be expected based on energy content, averaging an emission reduction of about 10-20% CO2, although the marine
diesel engines are about 30% more efficient than Otto engines, due to their higher compression ratio.

u Dual fuel engines

In these engines, LPG and diesel could be combusted simultaneously in a diesel engine. The CO2 savings are as high as
can be expected based on energy content. This technology could involve two fuel systems on the ship. Typically, a small
quantity of marine fuel oil is used as pilot fuel, to initiate the ignition process, followed by combustion of the selected
alternative fuel. The ship can run on a variable combination of the available fuels. For instance, a variation of 100%
diesel up to 97% LPG and 3% diesel is possible, resulting in high CO2 savings and high variable cost savings.
Marine diesel engines in operation worldwide are slowly changing into dual combustion engines (dual fuel diesel
engines (DFDE) that operate on natural gas (potentially on LPG) and marine diesel heavy fuel oil. The dual combustion
engines are gaining more importance due to their efficient performance and proven reliability when compared to diesel
engines, which are highly prone to pollution.

u The Tri Fuel Marine Engine

The tri-fuel engine technology is already present in the marine market and is mainly used for LNG ships with marine

Page 31 LPG for Marine Engines, The Marine Alternative Fuel

 diesel oil, heavy fuel oil, and LNG used together as marine fuels. This concept was introduced by Wärtsilä and MAN for
gas carrier ships and is now going through research and development for using the tri-fuel engine in container ships.
The first implementation of such engine is under process on a 7300 TEU container ship undertaken by Wärtsilä. New
gas ignition auxiliary engines will be installed in this ship which will run on tri-fuel technology.

3.2.1. High-speed engines (>1000prm)

The role of high-speed diesels engines in the marine world is expanding. Such engines offer increased efficiency and
reduced cost. The quest for obtaining more and more power out
of smaller engines demands greater efficiency and that in turn can
lead to reduced emissions. Most high-speed diesels on the
market today can, or will be able to, meet the tier II emission
requirements by selective tuning and internal changes to the
engine. When it comes to tier III levels of emission control then it
does seem that in most cases external features will have to be
added to the exhaust system, such as filters and catalytic
converters. There is a great deal of research going on to see what
will be required to meet these low emission levels and it seems
likely that the need for external requirements will be considerably
less than at first thought.

Ship builders are developing innovative propulsion solutions where the high-speed diesel forms part of a fully integrated
propulsion system. Part of this move towards using high speed engines comes from ECA and local port requirements in
many parts of the world, under which low sulphur fuels must be used.

High speed diesels cover a wide range of power outputs from the smallest engines of perhaps 10bhp, up to the mighty
top-range V20 8000 MTU diesels that can produce over 12,000bhp. It could be easy to lump all these together as high-
speed diesels but there are significant differences between the large and small engines in the high-speed ranges. Above
this size, and up to perhaps 2,500bhp to 3,000bhp, the engines used in the marine sector are largely based on engines
used for mining, military and rail use.

LPG is considered to be a commercially viable alternative on the high-speed engine market however no engine
manufacturer has yet offered a commercially available concept in that field.

Recent developments

Rolls-Royce’s high-speed engine unit MTU have developed and put on the market the first high-speed “multipoint-
sequential gas feed marine engine” to operate on pure gas.

Dutch shipping company Doeksen officially commissioned the Willem

Barentz, the first of its two new 70-m ferries, on 1st July 2020 in
Harlingen. The occasion also marked the premiere of the twin 16-
cylinder MTU gas engines from Rolls-Royce aboard the ferry which
together deliver some 3,000 kW for its ecologically clean operation on
the Wadden Sea, a UNESCO World Heritage site. A pair of 746-kW, 8-
cylinder versions of the gas engine were supplied to the city of
Constance public utility at the end of 2019 for the new Lake Constance
ferry.

LPG for Marine Engines, The Marine Alternative Fuel Page 32

 Engine portfolio – natural gas
Engine portofolio – natural gas

C26:33L (1,4 – 2,4 MW)

Bore 260mm Stroke 330mm
Speed 900 &1000rpm
Fuel: Natural Gas
6-8-9 cylinders
Propulsion and Gen sets

B35:40L/V (3,3– 9,4 MW)

Bore 350mm Stroke 400mm
Speed 720 &750rpm
Fuel: Natural Gas
8-9-12-20 cylinders
Propulsion and Gen sets

B36:45 (3,6 – 12 MW)

Bore 360mm Stroke 450mm
Speed 720 & 750 rpm
Fuel: Natural Gas
6-8-9-12-16-20cylinders
Propulsion and Gen sets

Rolls-Royce data-strictly private

3.2.2. Medium-speed engines (300-1000prm)

Medium-speed diesel engines operate on either diesel fuel or heavy fuel oil by direct injection in the same manner as
low-speed engines. Medium-speed engines offer the low ownership costs and high reliability that commercial operators
require to carry cargo or people between ports as
economically as possible. These propulsion engines are also
compatible with a wide range of fuel sources, offering a
number of alternatives to more traditional marine diesel and
gas oils. Medium-speed marine engines can be configured to
run on LNG, CNG or LPG. Engines can be supplied on a single
main or multi-engine basis and, all engines are suitable for
both diesel-mechanical and diesel-electric drives with ratings
from 1,020 kW (1,390 bhp) to 16,000 kW (21,760 bhp).

The six leading manufacturers of medium-speed diesels in

terms of ship numbers powered are Caterpillar (including
MaK), Wärtsilä, Rolls-Royce, Niigata, Yanmar and MAN Diesel & Turbo.

Wärtsilä 34SG-LPG

The Wärtsilä 34SG is the first medium-speed engine capable of running on LPG. It is also the largest engine running
on LPG on the market. The LPG engine is not a new engine type, but the Wärtsilä 34SG is optimised for using propane.

Page 33 LPG for Marine Engines, The Marine Alternative Fuel

 It is a lean-burn Otto gas engine with a spark plug or pilot fuel injection for ignition. This type of engines is characterised
by their lean-burn operation, which consists a lean air-gas
mixture being introduced into the cylinder, in other words more
air than needed for stoichiometric combustion. This strategy
results in a lower peak temperature during combustion and,
consequently, lower NOX emissions. The accurately control of the
exact air-gas ratio, means that the engine can operate without
knocking or misfiring while maintaining high thermal efficiency.
Ignition of the mixture is initiated using either with a spark plug
located in a pre-chamber or pilot fuel injection. The gaseous fuel
is introduced into the cylinder through gas admission valves
located immediately upstream of the air intake valves. The gas
valves are controlled independently of the air intake valves, to
feed the correct amount
Medium speed diesel engine Wärtsilä

of gas to each cylinder at the correct timing. The Otto gas engine concept requires a relatively low gas pressure of about
4–5 bar, and thus does not require additional equipment such as pumps and/or compressors to pressurize the gas
before it enters the engine.

The Wärtsilä 34SG-LPG is the first medium-speed engine capable of running on LPG and the same engine can be used
with natural gas and ethane. The fuel switch takes place without stopping the engine. When operating on natural gas,
the unit’s normal output is 9,341 kWe, while the engine output is reduced to 6,995 kWe (75%) to maintain a safe knock
margin when operating on LPG, which has a methane number of 34. An engine such as the Wärtsilä 34SG-LPG could
also be used with pilot fuel injection in a dual-fuel configuration, so that it can be used for marine propulsion. An
important benefit would be the compliance with Tier III NOx standards without the need for EGR or SCR systems. In
principle, the 34SG engine could also be marinized, but it will not have the fuel flexibility of a dual-fuel engine.

An alternative option offered by Wärtsilä to utilise LPG for propulsion is the installation of a gas reformer to turn LPG
and steam into methane in a mixture with CO2 and some hydrogen. In this case, the energy content of the gas produced
in the reformer is sufficient for a regular gas or dual fuel engine to be used with no need for derating. A reformer will,
however, lower the efficiency. It is stated to reduce the efficiency in the chemical reactions by 2% and an additional 7%
is transferred to low temperature water, whereas steam for the process can be generated by waste heat recovery from
exhaust gases. However, when faced with a large variation in the fuel composition, e.g. for volatile organic compounds
in shuttle tankers, this is a feasible solution. The gas reformer also allows the fuel gas quality and methane number to
be improved by treating only a split of the feedstock and mixing it back into the main stream, thereby saving cost and
space. Wärtsilä gas reformers received approval in principle from DNV GL for shuttle tankers in 2015.

“LPG is affordable and easy to handle; it can be stored in pressurized tanks, is easily accessible across all
terminals in the world, and is more environmentally friendly than other fossil fuels. If you look at an engine
running on LPG, it will have quite low CO2 emissions as it has short molecules — mostly propane and butane. It
also has no methane slip and is great for controlling greenhouse gas emissions, too.”
Kaj Portin, General Manager, Research & Technology Programs at Wärtsilä

3.2.3. Low speed engines(<300rpm)

These usually very large two stroke diesel engines are primarily used to power ships, although there are a few land-
based power generation units as well. They can have power output up to approximately 85 MW (114,000 HP), operate
in the range from approximately 60 to 200rpm and are up to 15m (50ft) tall, and can weigh over 2,000 short tons

LPG for Marine Engines, The Marine Alternative Fuel Page 34

 (1,800t). They typically use direct injection running on cheap low-grade heavy fuel, also known as bunker C fuel, which
requires heating in the ship for tanking and before injection due to
the fuel's high viscosity. Large and medium marine engines are
started with compressed air directly applied to the pistons.
Low-speed engines dual fuel (diesel/gas) are used prevalently in
merchant shipping. These engines are utilised for the propulsion of
all types of deep-sea ships world-wide, such as oil and product
tankers, bulk carriers, car carriers, general cargo ships and
container ships.

Low-speed marine diesel engine, the Wärtsilä RT-flex82T version B main engine Wärtsilä

MAN ES - ME-LGIP engine

MAN ES, engine manufacturer, developed and is offering a commercially available engine in that field.

ME-LGI(P) Main engine general

u Engine cycle: two-stroke

u Number of cylinders: five to 12 depending on bore size
u Bore: 500 mm to 950 mm
ME-LGI(P)
u Main engine
Stroke/bore ratio: 3.6 to 5.0

The
• The main
main engine
engine willisbea aMAN
MANES
ES 6G60ME-C9.5-LGI(P) engine
6G60ME-C9.5-LGI(P) enigine

Liquid Gas Injection (Propane)

Latest design
Electronically controlled
6 cylinder, 60 bore, ultra long stroke
• The engines have been built be the MAN ES Licensee CMD
The engine, running according to the standard diesel cycle, have been built by the MAN ES Licensee CMD with
• Proven design
smooth change-over between compliant fuel and LPG fuel. LPG is supplied to the engine as a liquid at 50barg and 45°C
• Smooth change-over between compliant fuel and LPG fuel
• LPG supplied to the engine as a liquid at 50 barg and 45 °C
• Mainrunning
Engine engine according
modifications
to the standard diesel cycle

u Other type of cylinder cover, to house the 15/04/2021 11

gas fuel valves

u Additional gas control block, to control the
LPG injection in the cylinder
u LPG injection valve (x2) (Fuel booster
Injection Valve), to pressurise and supply
the LPG
u Additional gas piping, double walled to bring
the LPG to the gas fuel valves
u Sealing oil pumps, sealing oil prevents
pollution of the hydraulic oil, used to build
up the injection pressure with LPG
u Upgrade of the control system, to cope with the additional equipment

Page 35 LPG for Marine Engines, The Marine Alternative Fuel

 Main engine operating range

u LPG is supplied on medium pressure and injected

as a liquid on high pressure
u Any combination of propane and butane can be
burnt with an ethane content up to 25%
u About 3% of pilot fuel (compliant fuel oil) is
required for the ignition.
u At low rpm, only pilot fuel will be burned
u is necessary because at lower rpm the LPG
injection valve cannot be controlled
sufficiently due to inertia of the valve
u During manoeuvring, the engine will switch automatically between “pilot fuel only” mode and LPG mode
Main Engine Shop Test result
Benefits at a glance
• The main engines were successfully tested on LPG
during the engine shop test
u • A supply system was built at engine maker
Meet current and future SOx regulations
u Lower total cost of operation • Emissions were recorded and all in line with the
expectations/requirements
u Switch between HFO, MGO or LPG with no
• Change overperformance
from Diesel toloss
LPG and back were
u Efficient and reliable low speed, two stroke engine
confirmed
• Minimum load to run on LPG is abt. 11%
u Simple retrofit solution

Fuel consumption at part load optimization

u Same heat rate on fuel oil and LPG 15/04/2021 14

u 80% MEP derated engine at 65% load:– G60ME-LGIP: 155 g/kWh – G50ME-LGIP: 154 g/kWh

MEP and speed derating

u G60ME-LGIP: 56% power derating

possible
u Multiple choice of engine size and
number of cylinders to match optimum
propeller design and power

Compliance with emission regulations

u IMO Tier II
u IMO Tier III with SCR, EGR or EcoEGR for
improved efficiency when operating in
Tier II mode

Main features

u Turbocharging system: High efficiency constant pressure turbocharging systems with MAN, ABB or MHI
turbochargers as standard
u Engine automation and control In-house developed gas safety and control system
u Fuel oil system: Common injection system for pilot oil and for main injection
u Gas system: LPG injection by fuel booster injection valves (FBIV)

LPG for Marine Engines, The Marine Alternative Fuel Page 36

 u Tolerant to many different LPG compositions

Auxiliary systems

u Gas supply conditions: circulation with supply at 50 +/– 2 bar and 25-55 deg. C
MCR = Maximum Continuous Rating SCR = Selective Catalytic Reduction SFOC = Specific Fuel Oil Consumption

An overview of the fuel tank, fuel supply system and engine, as well as the piping is given in Figure below.

The Low Flashpoint Fuel Supply System (LFSS) takes the fuel from the service tank and boosts its pressure to the engine
supply pressure, which ensures that the fuel remains liquid and that no cavitation occurs until it reaches the fuel booster
injection valve. The flow of fuel should at all times be higher than the engine’s fuel consumption.

To ensure the fuel delivery temperature, a heater/cooler is placed in the circulation circuit.
The fuel valve train connects the fuel supply system with the engine through a master fuel valve. For purging purposes,
the valve train is
also connected
to a nitrogen
source. Typically,
the valve train
will be placed
outside the
engine room
above the
weather deck to
improve safety.
From the valve
train, the fuel is
fed to the engine
in a double-
walled ventilated
pipe through the
engine room.
The system is monitored by hydrocarbon sensors (sniffers). If LPG vapour is detected inside the double- walled pipe, the
safety system will switch to fuel oil operation smoothly and without any loss of power.

Advantages

u LPG-fuelled engines experience safe and reliable running with comparatively low maintenance costs while gas
valves and gas pipes are smaller but similar to those of the well-known ME-GI engine.
u The Liquid ME-LGI engine uses liquid gas for injection all the way from tank to engine and non-cryogenic pumps
can be used to generate the required pressure, comprising standard, proven equipment readily available from many
suppliers within the LPG industry.
u Operation on LPG seems also to solve the logistics problems that LNG has at this time since LPG, in principle, is
accessible over almost all the planet. Furthermore, cryogenic technology is not required, which makes LPG auxiliary
systems less expensive compared with LNG.
u By introducing LPG as fuel to the dual-fuel GI system, substantial emission benefits can be obtained, especially
with regard to SOx, PM and CO2. NOx emission reductions and IMO Tier 3 targets can be achieved if LPG operation
is combined with either an SCR or EGR system.
u In the case of an ME-LGIP engine designed to run on LPG, the dual-fuel capability offers the owner or operator

Page 37 LPG for Marine Engines, The Marine Alternative Fuel

 the opportunity to shift between HFO and LPG in accordance with price changes and varying emission controls and
regulations, depending on where the ship is trading.

Green Ship Future project

The Green Ship of the Future Project undertook a retrofit study for a 38,500 dwt tanker powered by a low-speed diesel
engine which was planned to spend 13.5% of its time in
an environmental control area. Three options were
considered: the use of low sulphur fuel; placing an
exhaust gas scrubber in the system or using LNG as a
fuel. The low sulphur fuel option introduced some
lubrication issues. The exhaust scrubber alternative,
based on using heavy fuel oil after 2015, required a new
funnel layout due to the introduction of the scrubber
together with its associated machinery and new tanks. In
the latter case, the LNG fuel usage required new piping
and a fuel supply system together with new LNG tanks;
in this case, two 350 m3 tanks mounted on deck. The associated costs, based on industry quotations, for these last two
options were estimated at 5.84M US$, 50% of which was for the scrubber and auxiliary machinery, and 7.56M US$
respectively. In the LNG case, the tanks and machinery conversion were estimated at 4.38M US$ with 40 days’ off-hire
time. In contrast, the scrubber option required an estimated 20 days’ off-hire time. More favourable economics for LPG
compared to LNG would be expected, due to lower retrofit implementation.

Example

BW Gemini has been retrofitted with pioneering LPG dual-fuel propulsion technology

The world’s first VLGC BW Gemini has successful complete sea trials.

LPG for Marine Engines, The Marine Alternative Fuel Page 38

 The vessel was retrofitted in 2020 with Wärtsilä’s ground-breaking LPG Fuel Supply technology. This is the first of 15
Home ! Our Fleet ! Pioneering LPG Propulsion
BW LPG ships to be retrofitted for operating on
LPG fuel with MAN dual fuel engine and the
Wärtsilä system. BW Gemini has achieved a
historic milestone as the world’s first VLGC to
be fuelled by LPG, with the retrofitted main
engine running on LPG and switching to
traditional fuel seamlessly.

The retrofitting process at Yiu Lian Dockyard in

Shenzhen, China, took approximately 60 days
CHARTING
and is estimated OUR to PROGRESS
have emitted 2,060 tons of carbon dioxide This is approximately 97% lower when compared to
ordering
Works begina
onnewbuilding with
BW Gemini and BW Leo, the !rstsimilar technology.
two of twelve VLGCs committed for retro!tting with pioneering LPG dual-fuel
propulsion engines.

Hartmann chooses MAN dual-fuel engines for new LPG tankers

Assembling the Team
A team of representatives
MAN Energy Solutions has won the contract to supply fromindividual
BW LPG, yard, Class
MANand B&W ME-LGIP liquid gas injection LPG dual-fuel
engine manufacturers meet at Yiu Lian dockyard in
Shenzhen, China. engines to three new 5,000 cbm LPG tankers being
built for Hartmann Gas Carriers, part of Germany’s
Hartmann Group.
See More "
The ships are currently under construction at CIMC
Sinopacific Offshore & Engineering Co., Ltd. (CIMC-
Transporting Deck Tanks
SOE) shipyard in Shanghai. Each newbuilding will
receive a propulsion package featuring one 5S35ME-
Transporting four 900 cbm deck tanks to Yiu Lian shipyard,
where BW Gemini and BW Leo will be retro!tted with
pioneering LPG dual-fuel propulsion engines. LGIP engine with an Alpha controllable pitch
propeller, power take-off (PTO), and a propulsion
control system (PCS). MAN Energy Solutions also
expects to introduce its new Triton control platform
See More "
with the engines. MAN Energy Solutions’ two-stroke licensee, CMD, will construct the engines in Lingang, China with
delivery scheduled for the second half of 2021. The contract contains an option for two further vessels.
Installing Deck Tanks
Deck tanks for BW Gemini were successfully installed over
3.2.4. Electric Motors (with LPG power generators)
two days in early September.

The electric propulsion system consists of a prime mover which may

be of two types:
See More "
u Diesel driven
u Turbine or steam driven

Both the systems produce less pollution as compared to

conventional marine propulsion system, which involves burning of
heavy oil.

Electric motors offer a modern solution with less pollution as compared to conventional marine propulsion systems,
that involve burning traditional fossil fuels. Power for motor propulsion is supplied by the ship’s generator(s) and prime
mover assembly. Configurations involving electric motors as main propulsion system are often called also Hybrids.
Hybrid propulsion facilitates flexible system solutions.

Page 39 LPG for Marine Engines, The Marine Alternative Fuel

 For all vessels with electric propulsion the power plant is essential. The power plant consists of several medium speed
gas/diesel engines, which drive the electrical generators. These engines that drive the generators could very well be
LPG fuelled engines. The generators are connected in a common grid, to the main electrical switchboard. All loads,
including propulsion, thrusters, auxiliaries, and ship systems are normally fed from this grid, and the total load is shared
between the running generators. The configuration of the power plant is based upon total installed power, operating
modes, flexibility and redundancy requirements, and equipment cost. The number and rating of power generating sets
must be optimised to achieve the desired flexibility in view of fuel economy for prime movers, operational profile and
service factor. The purpose is to achieve optimal loading of the running generator sets during the different operation
modes.

In the past electrical propulsion was used only in small vessels but now shipping companies are adopting this system for
larger vessels and bigger size cargo vessel as well.

Electrical propulsion is particularly advantageous

for:

u Tug and trawlers

u Dredgers
u Dynamic positioning vessels
u Cable laying ship
u Ice breakers
u Research ships
u Floating cranes
u Vessels for offshore industries

Case studies (the same technology could also apply with LPG)

3
u Gaz de France built the first two 154,000 m LNG carriers with ABB electric propulsion drive system, which consist
of propulsion motors, frequency converters, propulsion transformers and medium voltage (MV) switchboards.
The vessels are being built at Chantiers de l'Atlantique, one of the pioneering yards with respect to innovative
propulsion systems and technical solutions.

u One small LNG carrier with electric propulsion is already in operation. The 1100 m3 LNG carrier "Pioneer Knutsen"
was delivered from the Dutch yard Bijlisma in March this year, and has been in operation along the Norwegian
west-coast since then. The main propulsion consists of two x 900 kW azimuth thrusters driven by low voltage
frequency controlled motors delivered by ABB. Power production is generated by two x 900 kW Mitsubishi gas
engines and two x 640 kW Mitsubishi diesel engines. The gas engines are fuelled by BOG while the diesel-engines
are supporting with additional power if required.

u Finnish engine maker Wärtsilä has signed an agreement with Eidesvik Offshore to install a hybrid system with
batteries on board of the latter’s LNG-powered vessel Viking Princess. Viking Princess would become the first
offshore supply vessel in which batteries reduce the number of generators on board. Depending on the ongoing
task and weather conditions, the engine load varies between 90% and 20%. The new energy storage solution
replaces one of the vessel’s four generators and can provide balancing energy to cover the peaks, resulting in a
more stable load on the engines. The technology keeps the engine load from dipping and re-routs the surplus to
charge a battery, which in turn can fill in when needed.

LPG for Marine Engines, The Marine Alternative Fuel Page 40

 3.2.5. LPG Range extenders

A range extender is a thermal engine, preferably LPG fuelled, driving a power generator that provides power to charge
the batteries of an electric motor, to extend the range of the initial charge of the batteries. The batteries of range
extender systems are initially charged at the vessel’s marine base before commencing the trip.

The latest generation of range-extenders has been developed using hi-tech variable speed generators, that work in an
optimized area of speed, but are very different than the common “gen-set” running a fixed speed (1500 rpm for 50 Hz
– 1800 rpm for 60 Hz) that are currently the great majority on the market.

Range extenders sit in a complex and rapidly evolving power environment, but they are usually designed to operate at
near constant load and torque for optimal efficiency and life. LPG range extender power may therefore be constant at
all times or most of the time and it will deliver lower carbon emissions than petrol and provide the capability to increase
a ship’s battery-only range. Battery also experiences fast charging, which is on demand when stationary.

Examples

Motor manufacturer Torqeedo presented three new electric products in 2017. The equipment was debuted at the U.S.
trade at the Electric and Hybrid Marine World Expo Florida
Conference and Exhibition, in January 2020, and to the
public at the Miami International Boat Show, in February
2020.

BMW's i3 high-voltage battery has been adapted to work

with Torqeedo's 40-hp or 80-hp Deep Blue systems. It
benefits recreational and commercial boat owners with its
very high energy density, lower cost and safety standards.

The 25-kW range extender was specifically designed to

efficiently power Torqeedo's Deep Blue system. It is the first
inverter generator capable of supplying electricity for
yachts and supporting serial hybrid systems. The
combustion engine, that could be retrofitted with LPG, runs at its most efficient operating point, supplying the full 25
kW regardless of fluctuating load demands or the voltage level of the Deep Blue batteries. It doesn't require a separate
starter. Instead, it uses the electric motor included in the genset. This means reduced pollutants, less vibration and a
longer life for the motor.

Torqeedo's Cruise FP fixed pod motor is a true alternative to an inboard diesel engine. Overall winner of the 2016 DAME
Design Award, the integrated system features new electronic throttles and a modern, state-of-the-art user interface on
a high-resolution marine display. It can be charged from shore power, solar, a generator or through hydro-generation
while underway.

Hyperdrive, a UK company that specialises in developing electric vehicle tech, has created a small, modular petrol engine
that could be converted to LPG and be added to EVs to increase range and mitigate range anxiety. It calls the range
extending engine the Range Extender. The Range Extender is a single-cylinder 15kW (20hp) petrol engine that is
designed to act as a generator for an EV's battery pack to increase range. It works on a 15kW, single-cylinder diesel
version that will be ready soon and should be even more efficient.

Page 41 LPG for Marine Engines, The Marine Alternative Fuel

 3.2.6. LPG Reformer

Japanese technology firms Osaka Gas and Daihatsu Diesel received an Approval in Principle (AIP) from ClassNK for their
joint project on an LPG Reformer for marine engines. This was the first AIP granted in Japan for such equipment.

The LPG Reformer is designed to convert LPG into synthetic methane gas equivalent to the kind found in LNG, ClassNK
１．The Possibility of LPG as Marine Engine Fuel explained. Due to being mainly composed
Compliant Technology for Marine Engines of propane and butane, LPG is susceptible
to knocking (abnormal combustion),
High By adopting LNG as Gas Fuel, NOx,
Efficiency SOx, CO2 can be reduced without making it difficult to use as a fuel for lean
after-Treatment system
burn gas engines and dual fuel engines. In
contrast, by converting LPG into synthetic
methane gas with the LPG Reformer prior
EGR CO2 Scrubber
Diesel Fuel LNG LPG

100
100
77 80
100 100 100
to fuelling the engine, the risks of knocking
NOx SOx 50
can be restrained, resulting in equivalent
Low 10 12
1 1 0 0 operational performance observed when
SCR Sulfur 0

Fuel Oil CO2 NOx SOx PM

using LNG.

・Reformer Reforming
What is LPG Reformer ? Additionally, using LPG as fuel can reduce
・By reforming LPG to LNG equivalent Gas, it
can obtain LNG equivalent performance the emission of environmentally harmful
・Reforming Gas is capable to comply with
・Direct
LPG environmental regulation as equal as LNG substances like SOx and NOx, compared to
Combustion characters
when using conventional heavy oil fuel,
7 WinGD 2019技術セミナー 2019.11.07
especially in line with the IMO's 2020
sulphur cap.
２．LPG Reformer １．The Possibility of LPG as Marine Engine Fuel

Principle of LPG Reformer Measures for Using LPG as Marine Fuel

Combustion Type Operation Performance

Material (C3H8) ・No Load Limitation

Main Chemical Reaction of Reforming Direct Gas Injection ・After-Treatment is Necessary to Satisfy IMO
Heating Combustion Tier 3 of NOx Emission by Gas Mode Operation
・ Steam Reforming Reaction Use LPG
Desulfurization Directly Premixed ・Limitation of Engine Load
C3H8 + 3H2O → 3CO + 7H2 Lean Burn （Methane Number of LPG is Lower than LNG）
Heating Steam （Steam）
S Reformer ・No Load Limitation
・ CO Denaturalization Reaction Premixed （Methane Number of SNG is over 65）
Reforming Reforming Lean Burn
LPG to SNG ・SNG can be Easily Manufactured by Reforming
CO + H 2O → CO2 + H2
（Steam）
Abnormal Combustion Aria ※ SNG : Synthetic Natural Gas
Dehydration ・Methanation Reaction
BMEP [MPa]

※ Methane Number (MN) is Anti-

Knocking Index of Gas Fuel
③ CO + 3H2 → CH4 + H 2O （MN : High→ Knocking : Low）
H 2O LNG
SNG
SNG CO2 + 4H2 → CH4 + 2H2O ※ Daihatsu Diesel’s Dual Fuel Engine
Compatible with City Gas 13A
LPG （Methane Number : 65）
30 50 70 90 110

12 WinGD 2019技術セミナー 2019.11.07

Methane Number [-]
8 WinGD 2019技術セミナー 2019.11.07

LPG for Marine Engines, The Marine Alternative Fuel Page 42

 3.3. Marine LPG Engine Types

Fuel system technologies are key in engine development. The technology around fuel delivery in gasoline and diesel
engines has developed significantly over the years. Consequently, such technologies, also related to the use of LPG as
an engine fuel, have evolved and several such advanced systems are currently present in the market. However, not all
are equally applicable to marine engines.

Natural gas engines have been used for many years both on land and aboard ships. While there is a limited choice of
marine LNG engines with power ratings below 1,000 kilowatts (kW), numerous options exist for engines above this
rating, and these are commonly used on merchant vessels.

On the contrary, LPG engines are used for recreational crafts and fishing boats in many places around the world. The
ready supply of high-powered LNG engines means the availability of commercial engine technology is not a barrier to
the use of LPG as a marine fuel for many types of engines.

There are three basic types of LNG engines that can easily be converted to LPG:

u Lean burn, spark-ignition, pure gas types operating on the Otto cycle and using a spark plug to ignite the gas/air
mixture in the combustion chamber. Manufactured by companies such as Rolls-Royce Marine/Bergen, Mitsubishi
and Hyundai, they range in power from around 300 kW to 9,700 kW.

u Dual fuel with diesel pilot engines operating on the Otto cycle and using natural gas together with a second fuel
source, which may be distillate or heavy fuel oil. They allow the operator flexibility in deciding which fuel to use,
based on price and availability. Manufacturers include MAN, Wärtsilä̈, Caterpillar/MAK, ABC Diesel and Electro
Motive Diesel. They range in power from around 700 kW to 17,500 kW.

u Direct injection with diesel pilot engines operating on a diesel cycle, with natural gas injected directly into the
cylinder near the top of the compression stroke. Conversion of an existing diesel engine requires limited
modification to the engine itself, so this type of engine offers a higher potential for retrofitting existing units for
direct injection operation. At present, no medium- or high-speed marine engines are available in this category, but
slow-speed engines are, that now can deliver up to 42,700 KW.

Currently, there are limited examples of large LPG marine engines from engine manufacturers.

Examples of LNG engine engines that could easily be developed to use LPG

Lean burn prechamber spark ignited engine from Mitsubishi

(low pressure Otto cycle) used in:

u Ferry Glutra
u Knutsen Pioneer LNG tanker
u Coast guard vessels

Lean burn prechamber spark ignited engine from Rolls Royce (low pressure Otto cycle)

u Ferries delivered in 2007 (Bergensfjord, Stavangerfjord, Mastrafjord, Raunefjord, Fanafjord)

u New RORO project Sea-Cargo
u 7500 m3 LNG coast tanker

Page 43 LPG for Marine Engines, The Marine Alternative Fuel

 3.3.1. Otto petrol/LPG bi-fuel engine

This is one of the largest categories in the outboard marine engines segment particularly due to their use in the small
boat segment. Bi-Fuel petrol-LPG engines exist in the market only as conversions from existing petrol engines.
Most LPG conversions today, especially in outboards engines, involve petrol fuelled spark- ignition engines, which are
particularly well suited to run on LPG.

Otto Gas engines with their homogeneous combustion generally have low NOx emissions and high efficiency and will
typically comply with the IMO Tier III limits without exhaust after-treatment. However, they require a certain stability
of the fuel gas against self-ignition (“knocking”, as expressed by the methane number MN) and they must be carefully
developed in order to keep un-burnt gas (“LPG slip”) to a minimum. In an Otto engine, the fuel-air mixture will not ignite
until a spark is created. The compression ratio is much lower (typically 1:10) compared with 1:17-18 for compression
ignition (diesel).

3.3.2. Otto LPG Mono Fuel engine

Spark Ignition dedicated mono LPG fuelled engines operate much like petrol marine engines. The primary advantage of
these engine is that they use 100% LPG as fuel. Without additional gasoline systems onboard, they are mainly used as
outboard engines in small boat applications that carry only one type of fuel and there is no need for a second fuel
delivery system.

Such engines had been developed earlier in Europe, the US and elsewhere, and had found their use mostly in the leisure
sector.

Spark-ignited LPG engines (“LPG only”) with either carburettors or port injection of LPG. These are “single-fuel” engines
and must meet special redundancy requirements for marine applications.

3.3.3. Dual-fuel Diesel/LPG engine (diesel engine with direct LPG injection)

Dual fuel diesel/LPG engines are normal diesel engines, that can be converted to dual fuel engines because they have
relatively the same compression ratio, structural design, etc.
Dual fuel (DF) engine works as an ordinary diesel engine in diesel mode and as a pilot ignited Lean burn gas engine (low
pressure Otto cycle) in the gas mode.

Examples include:

u Gas supply vessels Viking Energy, Stril Pioneer, Viking Queen and Viking Lady (Wärtsilä DF)
u LNG tankers France and Korea (Wärtsilä DF, MAN Diesel DF)
u FPSOs

Dual fuel diesel engines have the advantage that the power of the engine can be increased by adding a few more
cylinders and hence there is no limit for the size of the ship. These will always need a
certain quantity of diesel fuel for running even in gas mode, but on the other hand they
may also run on 100% liquid fuel (diesel- or HFO), i.e. dual fuel capability.

The fuel LPG is directly injected at high pressure into the cylinder after the diesel pilot
fuel has ignited. This is also known as “Diesel DF principle” or the “GD-principle”, such
engines have dual fuel capability and may also run on 100% liquid fuel (diesel-or HFO).

LPG for Marine Engines, The Marine Alternative Fuel Page 44

 The diesel gas engines have diffusion burning which ensure good capability of burning gases with low knocking stability
(“low MN”) and at the same time producing low UHC emissions (“LPG slip”). However, they require a gas system and
additionally exhaust after- treatment (EGR, SCR) is needed to comply with IMO Tier III NOx emission limits.

All diesel engines in LNG carriers are slowly changing over to dual fuel diesel engines because of the advantages of
the gaseous fuel resulting from the vaporized liquefied natural gases in tanks during sailing.

Example: Caterpillar dual fuel CAMAK engine

After commercialisation of diesel engine dual fuel retrofit conversions, Caterpillar Marine is underway on another dual
fuel engine retrofit conversion on board the 472 foot Fure West tanker. The MaK
M 43 C diesel engine on board the tanker will be retrofitted in hull to the seven-
cylinder M 46 dual fuel platform, with each cylinder offering 900 kW of rated
power. Additionally, Caterpillar is also supplying the complete gas system for the
tanker, including bunker stations, two LNG tanks measuring 4.15 meters by 24
meters and the vaporiser. This project, backed by the European Union will mark the
second MaK engine dual fuel retrofit. In 2014, Caterpillar successfully completed
the dual fuel engine retrofit conversion on the Anthony Veder Coral Anthelia LNG
carrier.

The M 46 dual fuel engine was designed for electric drive propulsion systems as well as mechanical propulsion systems.
Although designed for unlimited operation on LNG, marine diesel oil and heavy fuel oil, the M 46 DF will reach industry-
leading efficiency in gas mode. The M 46 DF was strategically engineered to allow for the retrofitting of current M 43 C
engines. Additionally, existing M 32 E engines can be retrofitted to the MaK M 34 DF dual fuel platform. As a result of
the synergies between the two platforms, Caterpillar can perform in hull retrofit conversions without having to move
the engine block or perform extensive machining.

Example: Wärtsilä marine Dual Fuel engines

Wärtsilä 20DF Wärtsilä 31DF Wärtsilä 34DF

The DF version of engines are compact units that extend the dual-fuel technology benefits to cover the entire power
range. The Wärtsilä dual-fuel engine capability
enables ships to be operated on
either conventional liquid marine
fuel (LFO, HFO or liquid bio fuel) or
LNG. The switch between fuels can
be made seamlessly without loss of
power or speed. Such fuel flexibility
enables compliance with
Wärtsilä 40DF Wärtsilä 50DF

Page 45 LPG for Marine Engines, The Marine Alternative Fuel

 emission regulations in controlled areas, while giving operators the option of determining the fuel according to cost and
availability.

Example
Dual–fuel Engine by Anglo Belgian Corporation and HEINZMANN

As a sophisticated solution for marine applications, engine manufacturer Anglo Belgian Corporation and system supplier
HEINZMANN have been developing a special dual fuel engine for ships with direct propulsion. For this project, diesel
engines optimised for dual fuel operation were used. These optimisations enable conversion rates of steady state 95 %
to be achieved (95 % gas / 5 % diesel).

The key challenges for the engine management system are the variable speed/load and the fact that the torque/power
output of the engine is not known. Maintaining a high conversion rate in dynamic operation calls for sophisticated
control concepts. In addition, rapid switching functions back to 100 % diesel are used, for example to prevent misfires
due to insufficient pilot injection.

A gas metering control unit is used to control the gas mass flow rate. The gas flow rate provides a similar linear
relationship to the power output as for the diesel level. This enables the diesel and gas power produced to be calculated
and the engine to be protected against overload.

The diesel side of their

engine is powered by a
mechanical injection
system which is connected
to an electric actuator. The
figure provides a
schematic view of the
system.

In dual fuel mode, this

diesel controller is still
responsible for the actual
speed/power control. An
additional control loop
then controls the optimum
gas quantity. This enables
the diesel injection system
to respond dynamically to rapid fluctuations or step changes. If the load is disconnected, the engine can quickly be
switched back to pure diesel operation. This prevents the diesel level from falling below the minimum required for
combustion and thus causing misfires.

A key factor for dual fuel use is protecting the engine against overload. In a fully optimised and utilised system, both
the diesel injection system and the gas system (with a small diesel proportion as pilot fuel) can handle almost the entire
engine load. When combined, the engine can easily be overloaded. In generator applications, the load signal from the
generator management system is then used as a limit. However, in directly powered ships, there is no such torque/load
signal. Therefore, the dual fuel control unit determines the power generated by the diesel and gas fuels dynamically
during operation. To calculate the power generated by the diesel fuel, the power depending on fill level and speed is
recorded on the test bench and plotted in a characteristic map.

To record the power generated by the gas, a gas flow metering unit is used, which uses a differential pressure
measurement to determine the gas flow and can control it using a throttle valve. The gas data (density and calorific

LPG for Marine Engines, The Marine Alternative Fuel Page 46

 value) can be used to calculate the gas power from the gas flow. The dual fuel controller transmits this data along with
a gas power set point.

The total power that the engine delivers at the crankshaft is calculated from the actual gas power and the diesel power.
As the gas quality will fluctuate according to the gas types in the different ports, a facility has been provided for
specifying the gas quality using the visualisation unit. A conceivable scenario would be that an engineer receives a
measuring report for the gas when refuelling and has to enter the corresponding quality. Otherwise, a corresponding
safety factor would have to be maintained.

3.3.4. Diesel – ignited LPG engine

Diesel-ignited gas engines with conventional low-pressure gas feed but with ignition by the injection of a certain
quantity of diesel fuel, also known as the “Otto DF” or “low pressure DF” principle. The fuel LPG is directly injected at
high pressure into the cylinder after the diesel pilot fuel has ignited. This is also known as “Diesel DF principle” or the
“GD-principle”, such engines have dual fuel capability and may also run on 100% liquid fuel (diesel-or HFO).

3.3.5. Gas fuel or Tri-Fuel Propulsion

LNG fuel is now utilised to be burnt in the Main Engine after adopting some modification in the propulsion engine to
reduce emission from the ship. It is known as tri fuel because it can burn gas fuel, diesel and heavy fuel.

The tri-fuel engine technology is already present in the marine market

and is mainly used for LNG ships with marine diesel oil, heavy fuel oil,
and liquefied natural gas (LNG) used together as marine fuels. This
concept was introduced by Wärtsilä and MAN for gas carrier ships.

The same technology is going through research and development for

using the tri-fuel engine in container ships. The first implementation of
such engine is under process on a 7300 TEU container ship undertaken
by Wärtsilä. The new gas ignition auxiliary engines will be installed in this
ship which will run on tri-fuel technology.

LNG (LPG could be similar used) for Auxiliary engines

Container ships do not carry gas cargo in bulk hence, unlike gas tankers, they do not have enough supply of gas fuel. In
contrast, a small tank for LPG fuel storage can supply enough gas fuel in port to auxiliary engine of a container ship.

The auxiliary engine of such system is provided by conventional fuel supply i.e. MDO and HFO along with LNG/LPG
supply when in port to comply for the emission norms.

Just as used in the tdual fuel engine of MAN B&W, safety precautions are also taken to supply gas to the injection system
of the engine. Pilot fuel injection i.e. MDO is used for initial ignition as auto ignition temperature of natural gas is very
high i.e. 580 degrees centigrade.

LPG Storage

The LPG can be installed in the ship itself to store LPG fuel along with all required bunkering arrangements and
pipelines, so that it can be supplied to the generators when in port. Two basic methods can be adopted for storing
LPG. LPG cylinder containers or LPG storage tank.

Page 47 LPG for Marine Engines, The Marine Alternative Fuel

 Advantages of Tri-Fuel Engines

The LNG/LPG fuel for container ship has following advantages:

u Use of expensive shore power can be eliminated.

u LNG/LPG is cheaper and cleaner fuel than marine gas oil.
u Ships’ generator sets can be used to remove voltage and frequency constraints of shore supply.
u Shore electric supply is not available globally although LPG is available everywhere.
u No need to install additional and costly exhaust gas cleaning system.
u The LPG fuel offers lowest emission levels of CO2, NOx and SOx.
u The operating and investment cost is less compared to other means of reducing emissions.

3.3.6. LPG Gas turbine

Turbine Engines – Turbogenerators

Gas turbine engines – in comparison with reciprocating engines – have some advantages that favour their use amongst
others. Such advantages, especially in comparison with diesel engines, include:

u Better use at low temperatures due to the rapid start-up possibilities.

u Significantly lower heat transfer through the engine oil and lack of liquid cooling system, which significantly
reduces the number of vulnerable assemblies and essentially lowers power losses through the cooling system.
u Significantly less maintenance and repairs.
u Reduced amounts of oils and lubricants required to operation.
u Mild torque characteristic, without pulsation typical for reciprocating engines.
u Significantly lower weight and size compared to reciprocating engine.

However, some features of gas turbine engines, mainly higher

specific fuel consumption and higher costs have been restricting
their wider use. Major companies have been involved in
modification of such engines and their application in hybrid electric
power systems. These engines are used mostly in stationary power
generating units in turbogenerator applications.

Many warships built since the 1960s have used gas turbines for
propulsion, as have a few passenger ships, like the jetfoil.

Gas turbines are commonly used in combination with other types of engine. Most recently, RMS Queen Mary 2 has
had gas turbines installed in addition to diesel engines. Because of their poor thermal efficiency at low power (cruising)
output, it is common for ships using them to have diesel engines for cruising, with gas turbines reserved for when higher
speeds are needed. However, in the case of passenger ships the main reason for installing gas turbines has been to
allow a reduction of emissions in sensitive environmental areas or while in port. Some warships, and a few modern
cruise ships have also used steam turbines to improve the efficiency of their gas turbines in a combined cycle,
where waste heat from a gas turbine exhaust is utilised to boil water and create steam for driving a steam turbine. In
such combined cycles, thermal efficiency can be the same or slightly greater than that of diesel engines alone; however,
the grade of fuel needed for these gas turbines is far costlier than that needed for the diesel engines, so the running
costs are still higher.

Recently, a Memorandum of Understanding was signed with GE in South Korea to cooperate with South Korean and

LPG for Marine Engines, The Marine Alternative Fuel Page 48

 global partners on an LPG-fuelled ferry design, using a combined cycle gas turbine, electric and steam (COGES) system
(see also case study under 3.5.4.2). GE is offering turbines in the LM2500 family for maritime applications, with
technology based on turbines used in aircrafts for decades. These turbines are now available to burn LPG as a fuel
without changes to the fuel injection system. The LM2500 family can provide turbines with an output of 22–33 MW and
36-38% efficiency in single-cycle mode. The minimum load on the gas turbine is 50%. A gas turbine can be combined
with either a steam turbine to increase the efficiency to 53–55% or a CO2 turbine, which GE has recently started to
offer.

Hybrid turbocharger

Lately, the maritime sector has been investing heavily in R & D to cut down harmful emissions from the ship, along with
reducing fuel consumption and operating cost. Maritime market has seen several
developments in the past mainly for developing waste energy recovery systems such as
economiser, turbocharger etc.

A marine technology innovation has taken the research to all new level and to a step
ahead. It is called the Hybrid Turbocharger.

The hybrid turbocharger is developed by Mitsubishi heavy industries and it differs from
conventional turbochargers in terms of both waste recovery and fuel saving. Exhaust gas energy is recovered to turn
the compressor, which supplies scavenge air to the main engine and also generates electricity through an alternator
attachment incorporated in the turbocharger known as MET hybrid turbocharger. The turbine and compressor does the
heat energy recovery work and the alternator is used to generate electrical power without consuming any extra fuel as
it is driven by the shaft power of the turbocharger.

Turbine engines are rarely used on commercial ships. Part of the reason is that gas turbines are generally costly and less
efficient than diesel engines and therefore are less suited for commercial use. The same goes for spark ignition (SI)
engines. Steam turbines are extremely fuel flexible, but are also slow starting. Furthermore, they require a rather steady
load in the high band, which is why they are not
common.

Many cruise ships often have diesel-electric plants

where a large bank a diesel generators or gas turbines
provides power for everything on the ship, including
propulsion. The motors connected to thrusters that can
be rotated 360 degrees to help steer the ship and make
tight turns.

Turbine-Electric Plan for Cruise Ship

Advantages
u With only little increase in the dimensions, enough power can be
generated from main engine operation.
u Fuel savingas the heat recovery system is used for driving the alternator.
u The generator can function as motor at low load operation to drive
blower for maintaining scavenge air pressure of the main engine.
u Eliminates the installation of an auxiliary blower for the main engine. As
no extra fuel is used, it helps cut vessel emissions.

Page 49 LPG for Marine Engines, The Marine Alternative Fuel

 Example

MV Shin Koho, a 292 m long 180,000 dwt bulk carriers with a draft of 24.5m is the world’s first merchant vessel to
successfully equipped with the hybrid turbocharger technology.

3.3.7. LPG Outboard engine, mono fuel or bi-fuel

In the outboard marine engine sector, LPG has made its appearance the last few years, either through aftermarket
conversions, or as OEM (original equipment manufacturer)
alternatives manufactured by LEHR, in sizes up to 40HP with
bigger models also in development. LEHR is the world’s first OEM
to manufacture outboard engines that run exclusively on LPG.
These are single fuel engines suitable for sea water with
components made of high-quality stainless steel with high
reliability to resist galvanic corrosion and chemical resistance to
salt water. Originally developed as four-stroke engines, LEHR
recently launched a lower cost LPG two-stroke engine as a direct
alternative to the low-cost kerosene and gasoline two-strokes.
The benefits of LPG to the marine industry are numerous and
substantial, no gasoline polluting the water, virtually eliminated
particulate emissions that turn into methyl mercury in the water,
the available power of internal combustion engines without the
environmental detriment of gasoline, extended engine life and
reduced cost of operation LEHR’s introduction of outboard engines bring all the advantages of LPG into the primary
vessel propulsion segment, opening the world of LPG to a much larger audience.

Examples

PROPEL outboard engine

Propel (erstwhile known as LEHR) offers the world's first LPG powered line of marine
outboard engines. As the most awarded LPG propane company in the world for
this, Propel utilises a patented technology, which ensures that it's marine products are the cleanest,
greenest and most reliable engines on the market today. Propel offers following 2.5HP, 5.0HP, 9.9HP,
15.0HP outboards.

Tohatsu outboard engine

Tohatsu America Corp. introduced new 5-hp LPG outboard. Compared with gasoline, LPG exhausts 12 % less carbon
dioxide, which makes it a cleaner option for boaters. Added safety features include fuel regulators, shut off valves and
the necessary LPG fittings to ensure safe operation. The proprietary Safety Fuel shut-off valve keeps propane fuel from
continuously running when engine is not in use. Tohatsu claim the new LPG outboard will run for a full five hours at
WOT on a single 11lb tank with no reduction in performance.

LPG for Marine Engines, The Marine Alternative Fuel Page 50

 Mercury outboard engines

The 5hp Propane Four Stroke sports an easy-to-reach shift lever on the engine
and has six tilt positions with a shallow-water drive to set the outboard where
it is needed. The so-called Sail Power model is designed for boaters who use a
small outboard to pilot their sailboat, and it has some additional features:
u 20-inch (508 mm) or 25-inch (635 mm) shaft lengths.
u 12 Volt, 4 Amp / 50-Watt alternator charging system with cable in order to
charge a battery to run electronics or lights.
u Reverse-thrust exhaust relief and high-thrust propeller for slow-speed
handling and control.

Facts about pollution for outboard engines

Idling speed
u Two-stroke engine carburettors are undoubtedly the most polluting, both at idling and maximum speed.
u Four-stroke engines have less HC emissions (-87% compared to two-stroke engines), but have higher emissions
compared to LPG - powered engines (+137,5% compared to an LPG powered engine and +52% compared to an
LPG powered engine tested with enriched gas mixture). Contact Us + $ ,

u LPG-powered engines guarantee the lowest unburned hydrocarbons emissions (-95%compared

FREE SHIPPING MONTHLY to two-stroke
OUTBOARD MOTORS - PAYMENTS
BY HP - MOST POPULAR - ACCESSORIES -
engines and –42% compared to four-stroke gasoline engines/-92% and –34% compared to LPG engines)
Top speed
u Two-stroke engine carburettors are still very polluting even though emissions from an engine running at top speed
Home / Outboard Motors Basics / Why Consider a Propane Outboard?

Why Consider a Propane Outboard?

are 50% less compared to one running at idle speed. ! RSS

Compared to two-stroke engines, four-stroke engines

have a better combustion rate and fewer emissions when
running at higher speeds (-91% compared to two-stroke
engines). Nevertheless, they still pollute significantly
more than an LPG fuelled engine (on average, almost
twice as much). The EFI electronic injection system has
improved its performance and lowered dangerous
emissions for both the two-stroke and the four-stroke
engine range. An EFI four-stroke LPG powered engine
running at full speed ensures the lowest emissions (-
95/94% compared to a two-stroke fuel injection engine
and – 48/36% compared to a four-stroke gasoline
powered engine).
It’s Greener
In recent years, increasing environmental regulations have led to the development of cleaner burning gasoline-powered outboard motors. But, in

An LPG Outboard Engine terms of their environmental sustainability, nothing has revolutionized the outboard engine market like the advent of propane-fueled motors.

Propane outboards burn fuel 50 times – yes, you read that right, 50 times! – cleaner than even eco-friendly gasoline-powered outboards. They
release very little in the way of greenhouse gases or toxic fumes. In fact, some propane-powered outboards have zero emissions!

Easier to Start and Run More Smoothly

u It is greener
Because propane fuel is pressurized, propane outboards start more easily. There’s no need to prime or choke the engine. And, because propane is

In recent years, increasing environmental regulations have led to the development of cleaner burning gasoline-
naturally high in Octane (over 100), when you move the throttle, you’ll find a wide range of power.

No Need for Fuel Additives or Winterization

powered outboard motors. But, in terms of their Although
environmental sustainability, nothing has revolutionized the
you won’t easily find a propane station at the dock, propane offers significant benefits over gasoline as a fuel for outboard motors.

outboard engine market like the advent of LPG-fuelled motors.

First, there’s no need to useLPG outboards
additives, burn
mix fuel or pour gas. Propane comesfuel 50
in its own times
canister. cleaner
All you need to do is hook upthan
the tank toeven
your
propane-powered motor, and you’re ready to go.

eco-friendly gasoline-powered outboards. They release

Even better,very little
unlike gasoline, propaneindoesn’t
the way
contain ethanolof greenhouse
and won’t degrade over time. Thatgases
means there’sor toxic
no need fumes.
to winterize your fuel tank
or worry about how fresh your fuel is. Also, because propane fuel systems are closed, you don’t have to worry about water infiltrating your tank.
In fact, some LPG-powered outboards have zero emissions.
A Versatile Fuel
Another great thing about having a propane outboard – when you tote your propane canister along on your next outing, you can simply disconnect
the tank from your motor, and you’re ready to fire up your gas stove, grill, heater or refrigerator.
u Easier to Start and Run More Smoothly Made in the USA
A simple hydrocarbon, propane is a byproduct of refining natural gas and petroleum. It’s plentiful and made in the USA, so there’s no reliance on
foreign oil.

Additional Pros and Cons of Propane Outboards

Page 51 LPG for Marine Engines, The Marine Alternative Fuel
Although propane powered outboards have many benefits, there are a few drawbacks.

Still, the positives seem to outweigh any negatives.

For example, a propane outboard will cost you more than a gasoline powered motor of the same horsepower. But, because the engine is more
efficient, you’ll see better performance at that horsepower level.

If you experience a problem with a propane-powered motor, you may have a more difficult time finding service. On the other hand, because
 Because propane fuel is pressurised, LPG outboards start more easily. There is no need to prime or choke the
engine. And, because LPG is naturally high in Octane (over 100), when you move the throttle, you’ll find a wide
range of power.

u No Need for Fuel Additives or Winterisation

Although it is not easy to find an LPG station at the dock, LPG offers significant benefits over gasoline as a fuel for
outboard motors. There is no need to use additives, mix fuel or pour gas. LPG comes in its own canister. Even better,
unlike gasoline, LPG does not contain ethanol and won’t degrade over time. That means there is no need to
winterise the fuel tank or worry about how fresh the fuel is. Also, as LPG fuel systems are closed, there is no need
to worry about water infiltrating the tank.

u Fuel Economy and Reduced Maintenance

The other benefits, aside from only having to carry one fuel source, are low emissions, fuel economy and reduced
maintenance which is important in often remote locations where fuel related issues can occur. The “Propane” as it
will be known will retain all the standard features of the petrol MFS5C which features large carry handle and front
mounted shift level. The through propeller exhaust reduces noise.

LPG for Marine Engines, The Marine Alternative Fuel Page 52

 3.4. Ship propulsion

Besides, the type of the engine, the way the engine is integrated in the propulsion system of the vessel creates various
ship propulsion systems. Nowadays in the shipping industry we can find wide range of different propulsion systems such
as dual-fuel steam turbine mechanical (DFSM), dual-fuel diesel electric (DFDE), dual-fuel gas turbine electric (DFGE),
dual-fuel diesel mechanical (DFDM) or i.e. diesel mechanical propulsion with reliquefaction (SFDM+R), electric hybrid
configurations etc. Some companies are building hybrid ships that are able to run on both oil and gas as fuel. The
technology will see ships to be powered by natural gas for up to half way through the voyage and still be capable to
switch over to bunker fuel for the remainder of the journey. Ideal will be to use natural gas or LPG as the primary source
of power and bunker fuel as a secondary/emergency one.

There are a few configuration options for LPG-fuelled vessel technology. Each of these engine propulsion options can
be designed, or is designed, to burn natural gas or LPG. For each option mentioned below, LPG is stored on the vessel
as LPG.

The first LPG-fuelled configuration is a vessel that is powered by marine gas turbines or gas engines. These gas turbines
or gas engines can be combined with steam turbines; a combined gas turbine and steam system is referred to as COGES.
A marine gas turbine can be designed to burn natural gas, but is historically designed in the marine industry to burn
other liquid fossil fuels. Marine gas turbines, with the appropriate fuel purification systems, can burn fuels on the
spectrum from jet fuel to heavy fuel oil.

The second option is a hybrid diesel-gas vessel; these vessels have separate diesel engines and marine gas turbines or
gas engines. The systems are referred to as Combined Diesel Electric and Gas (CODLAG) and Combined Diesel and Gas
(CODAG) systems. If the system employs gas turbines, the turbines can be designed to burn natural gas, as in the case
of COGES.

The third vessel type is powered by a dual fuel diesel electric (DFDE) engine. This engine type is designed to burn both
diesel and natural gas. The Dual Fuel Diesel Electric (DFDE) propulsion system for marine vessels combines diesel and
steam technology for an engine that can be powered either by diesel fuel or LPG stored on the vessel, as well as “boil
off” gas in the case of LPG refrigerated carriers.

Wärtsilä,̈ one of the manufacturers of DFDE engines, terms these engine operating functions as “gas mode” and “diesel
mode” There are two operating modes for the dual fuel (DF) engine: gas mode and diesel mode. The natural gas
operating mode of the DF engine is low pressure with a diesel injection for the pilot. The diesel operating mode of the
engine is with diesel injection.

DFDE is more thermally efficient than a steam turbine by 15% and reduces daily fuel consumption by 30-40 tons
compared to a steam engine (Ragas). The DFDE system is not to be confused with the Combined Diesel Electric and Gas
(CODLAG) and Combined Diesel and Gas (CODAG) systems.

The CODLAG and CODAG systems, while sometimes referred to as dual- fuel systems are inherently different from a
DFDE system. Namely, the CODLAG/CODAG systems incorporate separate diesel and gas turbines or gas engines on the
same vessel; these systems do not have a single engine that can bunker both diesel and natural gas, besides diesel
serving as a pilot fuel for a gas engine designed to burn natural gas. Hence, the DFDE systems are inherently more
flexible than the COGES, CODLAG, and CODAG systems that have engines that are tied to burning a specific fuel. The
benefit of burning only one fuel (whether it is diesel or natural gas) is the simplification of bunkering, as only a single
fuel needs be bunkered. There is a higher initial capital cost for a ship propulsion LNG-fuelled system compared to a
diesel engine. LPG-fuelled systems require new equipment not aboard typical diesel-powered vessels including a large,
gas combustion unit (RasGas). LPG-fuelled systems are a proven technology with many operating hours.

Page 53 LPG for Marine Engines, The Marine Alternative Fuel

 3.4.1. Direct Drive

Direct drive propulsion systems are the most commonly used systems for larger tankers, bulkers, container and vehicle
carriers. Direct drive propulsion system is an invariable choice for low-speed diesel engines and has a very basic
arrangement with one or two cross-head main engines with
direct drive with a fixed propeller and the speed of the
engine (90-105 rpm) is also the speed of the propeller. It
consists of a propeller, which is connected to the main
engine with the help of the shaft. Manoeuvring of the ship
is done by controlling the speed of the main engine and by
changing the direction of rotation of the propeller. The
thrust block in this design forwards the energy from the
propeller into the hull and not into the engine. This is a
simple and efficient design.

Initially this system was used in almost all ships. In case of a geared drive propulsion a reduction gear is used in the main
shaft which connects the propeller. The propeller can change its pitch according to the requirement.

3.4.2. Hybrid, Parallel

Operation of a hybrid parallel propulsion system

Mechanic and electric power work together in the propulsion train, optimising the propulsion efficiency for ships with
a flexible power demand. The combination of mechanical power, delivered by diesel engines, and electrical power,
provided by electrical motors, delivers propulsion power, which assures the ship a broad operational capability,
providing the right amount of power and torque to the propeller in each operation mode. Whereas a diesel-mechanic
propulsion system is often designed according to its maximum power demand, which, for example, is fitted for a tanker
or cargo vessel according to the most hours of the operation profile, a hybrid propulsion plant is better prepared for
changes in operation during the vessel’s trip or even the vessel’s lifetime.

Hybrid propulsion systems can be differentiated between configurations, where the diesel engines and the E-motors
work in parallel on the propeller (CODLAD), or where either the diesel engine or the E-machines are used (CODLOD).

LPG for Marine Engines, The Marine Alternative Fuel Page 54

 Nova Scotia Boatbuilders Association
Review of All-Electric and Hybrid-Electric Propulsion Technology for Small Vessels March 2015

Hybrid-electric systems include an internal combustion engine,Series

generator,
Hybrid battery, and electric motor, typically allowing
the diesel, gasoline or LPG engine to do the heavy work when In aneeded, and
series hybrid charge
setup, the
the electric electric
motor system
is the only means ofand allow
providing it totothe propeller
power
(Figure 4). The motor receives electric power from either the battery pack or a generator run by
respond to lighter loads such as low-speed cruising or providing power for lights and electronics.The advantages of all-
an ICE. This lets a vessel continue to operate even after the batteries are discharged.
electric or partial-electric boats are the reductions in pollution, noise, vibration, and potentially, cost.

Marine hybrid systems include an internal combustion engine (ICE), a generator, an electric storage unit, and an electric
motor. As mentioned before, diesel electric systems are different from hybrids because they produce power using a
diesel generator that supplies power directly to an electric motor. In a hybrid system, there is an electric storage element
in the system.

Figure 4 Series or Serial hybrid system from Hybrid Marine UK

In a parallel hybrid system (Figure), both the ICE and the electric motor
Parallel Hybridare able to provide power to the propeller. The

motor/generator can either drive the propeller with energy from the battery,
In a parallel or (Figure
hybrid system be used to charge
5), both the
the ICE and thebattery.
electric motor are able to provide
power to the propeller. The motor/generator can either drive the propeller with energy from the
Fewer batteries required than series hybrid system. battery, or be used to charge the battery.

Suitable for:

u Canal boats.
u Sport fishing boats when trolling.
u Trawler yachts.
u Motor sailing sailboats. Figure 5 Parallel hybrid system from Hybrid Marine UK

Series/Parallel Hybrid

The advantages of a parallel hybrid propulsion system The third type of system is a combination of the series and parallel configurations. The Union of
Concerned Scientists in the United States says that this combined system brings together the
good and the bad of both the series and parallel systems:

u Flexible use and highest efficiency. “By combining the two designs, the engine can both drive [the propeller] directly (as in the
parallel drivetrain) and be effectively disconnected so that only the electric motor powers [the
u The propeller can be driven by the diesel/LPG engine, and/or by(as
propeller] thein electric
the series motor,
drivetrain).resulting
The result isin
aa highly
system thatredundant
operates more closely to
optimum efficiency more often”.
and reliable propulsion system.
Table 1 gives a brief summary of the features and application of the series and parallel
u Part-load in a conventional system. configurations.

u Part-load in an electrical system.

u In hybrid mode, the diesel/LPG engine and the propeller can operate with variable rpm (combination 6 mode) and
the network frequency and voltage is fixed and stable.
u Reduced plant operating costs due to the possibility to operate the main engines and auxiliary gensets in a range
where the required amount of power is provided by a combination of engines which run near or at their optimal
loading with their minimal specific fuel oil consumption.
u As a result of high plant efficiency over a wide range of operation modes, not only fuel oil consumption is lower,
but fuel related emissions like SOX and CO2 are also reduced. Further pollutants are reduced as there is less
incomplete combustion that intensively occurs in the low-loaded engines.
u In E-mode with variable-speed E-motors less noise is caused and pressure side cavitation on the propeller is
reduced, as it can be operated at an optimal speed/pitch ratio. Propeller speed and pitch can be controlled
independently. Additionally, the underwater noise signature can be reduced. This especially offers benefits at slow
speed sailing.
u Depending on the operational modes of the vessel the main engines and the auxiliary engines run less hours per
year and, when in operation, on higher loads. Both lead to less required maintenance.
u Large variation of operation modes appropriate for a flexible power demand, for slow speed operation up to
boosting. This results in an optimal overall plant operational capability with fast system responses and a high plant
flexibility.
u While mechanical optimisation is often determined by one or a few operational modes, the electrical drive
capability tremendously increases flexibility. “Off-designs” for hybrid propulsion systems are fewer compared to
pure mechanical system designs.

Page 55 LPG for Marine Engines, The Marine Alternative Fuel

 Disadvantages of the System

u Lower overall energy efficiency for ships running at full-rated speed all the time due to losses.
u Higher initial capital cost.
u Different and improved training for ship’s crew as the system is completely different from mechanical system
and involves major automation.

Hybrid-Electric Propulsion Technology for Small Vessels

Electric propulsion is not a recent innovation however it has become the “standard” propulsion solution in many
applications, especially when it comes to specialised vessels. High redundancy and reliability of the propulsion plant,
improved manoeuvrability of the ship and lower fuel oil consumption due to an optimised loading of the engines is key.

Hybrid-electric systems include an internal combustion engine, generator, battery, and electric motor, typically allowing
the diesel or petrol engine to do the heavy work when needed, and charge the electric system and allow it to respond
to lighter loads such as low-speed cruising or providing power for lights and electronics.

The advantages of all-electric or partial-electric boats are the reductions in pollution, noise, vibration, and potentially,
cost.

There are five vessel types that appear to be suited for

hybrid-electric propulsion systems:

u In-shore fishing boats.

u Short distance water taxis.
u Short haul ferries.
u Yachts.
u Cruise boats.

Currently, there is limited market acceptance of hybrid-

electric propulsion technology for small vessels, but there are a growing number of practical applications in use in the
recreational and commercial boat industry. These early adopters will drive further development which, in turn will
increase the number of viable applications.

u The viability of any configuration of hybrid-electric system on a small vessel is affected by three main
considerations: economy, environment, and strategic. Depending on the application, economy may not be the
deciding factor when choosing the most effective propulsion solution.
u To become more viable, hybrid propulsion technology needs better collaboration between designers of the main
components: engines, motors, propellers. One example of this need is the technical challenge of matching the load
performance of permanent magnet electric motors to propellers.
u Future developments in battery technology and integrated system controllers will significantly increase market
acceptance and viability of hybrid systems in small vessels.
u For recreational boaters, lifestyle priorities will play a big part in the choice of using a hybrid system on board –
even if it costs more than a traditional internal combustion engine system. The virtual elimination of noise,
vibration and smell from using electric drive is worth the cost difference to some boaters.
u Two small vessel applications that are commonly seen in Nova Scotia, and elsewhere in the world, that show
potential for viable hybrid systems are nearshore fishing boats and racing sailboats.
u Unlike an all-electric system, a marine hybrid system includes an internal combustion engine (ICE), a generator, an
electric storage unit, and an electric motor. Diesel electric systems are different from hybrids because they produce

LPG for Marine Engines, The Marine Alternative Fuel Page 56

 power using a diesel generator that is directly connected to an electric motor. In a hybrid system, there is an
electric storage element in the system.

Pump transports LPG in hybrid marine propulsion systems

German pump manufacturer SERO Pump Systems integrated its side channel pump SHP marine into the secondary fuel
supply system (SFSS) of hybrid ship propulsion units pumping LPG to the main shipboard engine.

The pump’s technical features include a low suction

head requirement, uninterrupted pressure-constant
delivery of low-viscosity liquids and a resistance to
shipboard vibrations, ensuring high functional
reliability of SHP marine in ’over the water’
applications.

SERO said SHP marine is capable of meeting all

technical challenges (low net positive suction head
requirement, reliable and pressure-constant
delivery of volatile LPG and resistance to vibrations
from the ship’s hull) when pumping LPG from the
storage tanks through the SFSS feeding the main engine of an oceangoing vessel.

The SHP marine model can be used for both low pressure or high-pressure requirements depending on the SFSS design
used and the manufacturer claims it is the first pump of its kind to be both Lloyd’s Register accepted and DNV GL type-
approved for marine dual-fuel propulsion systems.
l supply pumps LPG fuel supply pumps
LPG fuel supply pumps

Both the LP and HP supply pumps •are VFD

Both the LP and HP supply pumps are VFD driven side
driven
u
side channel pumps. channel pumps
• Bo
u The pumps have very low maintenance ch
requirements. • The pumps have very low maintenance requirements
u These pumps can ensure a stable supply even with • Th
changing LPG characteristics thanks• toThese
the specific
pumps can ensure a stable supply even with
design which is a hybrid between positive
changing LPG characteristics thanks to the specific design
• Th
displacement and centrifugal pumps. ch
which is a hybrid between positive displacement and
u A high head ratio per stage at low flows can be w
achieved with excellent NSPHr and high centrifugal
tolerance pumps.
ce
to vapor content in the medium.
u An ideal match for the required flowrate with a
ead ratio per stage at low
pump head flows
of 15~25 can be achieved
barg.
ellent NSPHr and high tolerance to vapor content
• A high head ratio per stage at low flows can be achie
with excellent NSPHr and high tolerance to vapor co
edium.
in the medium.
match for the required flowrate with a pump head
• An ideal match for the required flowrate with a pum
5 barg
of 15~25 barg
15/04/2021 8

Page 57 LPG for Marine Engines, The Marine Alternative Fuel

 The main engine provides not only the power for ship For some types of vessels, like for chemical tankers, The electric machine is used as alternator as well as
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for the ship’s consumers. This mode is i.e. selected mended for emergency operation. In case of the main flexible use of the main engine and the gensets. In
for transit sailing. It allows a high loading of the main engine is not operating the electric machine is used electric/PTI-mode the propeller is driven with variable
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1. Generator mode (PTO-mode) 3. PTO/PTH mode 4. Hybrid mode
and therefore with minimal emissions. This often pro- The gensets supply the propulsion power as well as converter supplies a fixed voltage and frequency to
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8 Hybrid Propulsion
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Propulsion – Flexibility and maximum efficiency opt
nly selected for maximum a starting device is needed. so maximizes both propeller and engine efficiencies
main engine the electric the powerGfor the propeller. The generator G
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e gensets deliver the elec-
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ion and the vessel’s con- In case of a twin propeller application
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8 Hybrid Propulsion – Flexibility G
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ainly selected for maximum ate the propeller
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and frequency
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the complete propulsion system.sailing.
˜
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To To the mains.
the mains. The main
G ThePTH-operation
main engineengine
and andshaft
the the shaft generator
generator G
a motor
otor
for continuous
˜
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can operate
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with constant propeller
in a range of 70% to 100% rpm. Doing
in a range of 70% to 100% rpm. Doing
or in PTO-mode.
which is closed forG continuous PTH-operation with constant propeller speed
˜
so maximizes both propeller and engine efficiencies ˜ G
so maximizes both to
and also helps propeller
reduceand engine
exhaust efficiencies
emissions. or in PTO-mode. ˜
ency optimally combined G Hybrid Propulsion – Flexibility and maximum efficiency optimally combined 9
han the and also helps to reduce exhaustMemissions.
the
u Hybrid mode
˜
˜
G
˜
G G M
to start ˜ ˜
G /M The electric machine is used as
u ˜ alternator as well as propulsion motor
G
G G G
tart ˜˜ ˜
G /M (PTO/PTI). This opens
˜ the way for flexible use of the main engine and the
ciency optimally combined
G G˜
˜
generation sets. In electric/PTI-mode the propeller is driven with variable Hybrid Propulsion – Flexibility and maximum efficiency optimally combined 9

speed by a frequency converter. In PTO-mode the converter supplies a fixed

G
˜
5. Electrical cross-connection mode voltage and frequency to the mains. The main engine and the shaft generator
(Electric Shaft)
In case of a twin propeller application there is a possi-
can operate in a range of 70% to 100% rpm. Doing so maximizes both
nge like
propeller
5. Electrical
and engine
cross-connection
main engine supplying one mode
efficiencies and also helps to reduce exhaust emissions.
bility of driving both propellers with the power of one
shaft machine (PTO) and
a small run theShaft)
(Electric other shaft machine as “take-in-device (PTI)”.
to oper- This mode ensures a high loading of the running main
ailing. In u InElectrical
case cross-connection
of a twin propeller
engine as well modeto (Electric
application there is a possi-
as extra redundancy and flexibility Shaft)
ike
closed bility the
of driving bothpropulsion
complete propellerssystem.
with the power of one
ropeller main engine supplying one shaft machine (PTO) and
u In case of a twin propeller application there is a possibility of driving both
mall G machine as “take-in-device
run the other shaft
˜ G (PTI)”.
˜
propellers with the power of one main engine supplying one shaft machine
per- This mode ensures a high loading of the running main
(PTO) and run the other shaft machine as “take-in-device (PTI)”. This mode
. In engine as well as
G extra redundancy and flexibility to
sed
˜
the complete propulsion system. M
ensures a high loading of the running main engine as well as extra
˜
ller
G
redundancy and flexibility to the complete propulsion system.
G ˜
˜ G
˜
Examples of Hybrid propulsion packages are mentioned in Appendix 1. Hybrid Propulsion – Flexibility and maximum efficiency optimally combined 9

G
˜
M
˜
G
˜
LPG for Marine Engines, The Marine Alternative Fuel Page 58

Hybrid Propulsion – Flexibility and maximum efficiency optimally combined 9

 3.4.3. Hybrid, Serial

The main components of a diesel/LPG electric serial drive are the diesel/LPG generator(s), frequency inverters,
propulsion motor, propeller, and controller. In a hybrid Serial system, there is an electric storage element in the system.

In a series hybrid setup, the electric motor is the only means of providing power to the propeller. The motor receives
electric power from either the battery pack or a generator run by an ICE. This lets a vessel continue to operate even
after the batteries are discharged.

Sample Hybrid Propulsion Plant

Hybrid serial systems are particularly suited for:

u Canal boats.
u Sport fishing boats when trolling.
u Trawler yachts.
u Motor sailing sailboats.

Page 59 LPG for Marine Engines, The Marine Alternative Fuel

 EPROX: Energy-saving electric propulsion

EPROX is an innovative approach of a fuel saving electric propulsion system. It combines lowest possible fuel oil
consumption with highest performance and flexibility of electric propulsion. Recent developments in DC-technology
and distributions and energy management enable the
Diesel engines to operate at variable speed, meaning
that the speed of the engine can be adjusted for the
minimum fuel oi consumption according to the current
system load. Another advantage is the integration of
energy storage sources, like batteries. They reduce
transient loads on the diesel engines and give a much
better dynamic system response.
Such an advanced system could be also developed to
use LPG as fuel.

The advantages of the serial hybrid propulsion are:

u It is estimated that a reduction of about 30% volume is possible compared to the conventional mechanical drive
system.
u Load diversity.
u Fuel savings. For ships spending more time at low speed, fewer engines can run at full power, resulting in greater
energy efficiency and hence less fuel consumption. A navy ship may save an estimated 15–25% in fuel compared
to a similar ship with mechanical drive.
u The lifetime cost saving from reduced fuel consumption may exceed the higher initial procurement cost of
electrical propulsion.
u Greater manoeuvrability.
u Low noise. An electric motor is able to provide a drive with very low vibration characteristics and this is of
importance in warships, oceanographic survey vessels and cruise ships where, for different reasons, a low noise
signature is required.
u Higher automation. The electric propulsion system can be designed to be highly automated and self-monitoring,
hence requiring less maintenance and fewer crew members to operate than with a mechanical drive system.
u Best complementation with the propeller.
u Economical part-load running.
u Low emissions.

LPG for Marine Engines, The Marine Alternative Fuel Page 60

 3.4.4. Electric with “Range Extender” engine

Increasingly, there are series hybrids where the conventional combustion engine never drives the propulsion: it simply
charges the batteries. These engines
are known as range extenders
because they extend the range
beyond what would be affordable
with batteries alone. They are
smaller than the combustion
engines used in conventional marine
propulsion and are simplified in
some respects.

This arrangement is a
hybrid drivetrain supplied from an
electric energy storage. The most
commonly used range extenders
are internal combustion engines and
identically represent the best
optimising of the propulsion
efficiency for ships with a flexible
power demand. The electrical side
of all systems will be based on a direct current or an alternating current motor, coupled to the ship’s propeller shaft,
with the speed and direction of propeller rotation being governed by electric control of the motor itself or by the
alternation of the power supply.
The advantages of the electric propulsion with the range extender are:

u It is estimated that a reduction of about 50% volume is possible compared to the conventional mechanical drive
system.
u Load diversity.
u Fuel savings. For ships spending more time at low speed, fewer engines can run at full power, resulting in greater
energy efficiency and hence less fuel consumption. A navy ship may save an estimated 30–35% in fuel compared
to a similar ship with mechanical drive.
u The lifetime cost saving from reduced fuel consumption may exceed the higher initial procurement cost of
electrical propulsion.
u Greater manoeuvrability.
u Low noise. An electric motor is able to provide a drive with very low vibration characteristics and this is of
importance in warships, oceanographic survey vessels and cruise ships where, for different reasons, a low noise
signature is required.
u Higher automation. The electric propulsion system can be designed to be highly automated and self-monitoring,
hence requiring less maintenance and fewer crew members to operate than with a mechanical drive system.
u Economical part-load running.
u Low emissions.

3.4.5. Tri-Fuel Diesel Electric Propulsion (TFDE) Over Diesel Engine Propulsion

TFDE stands for tri-fuel diesel electric propulsion ships specifically for LNG carriers. Similar practice could be proved also
successful for LPG carriers.

Page 61 LPG for Marine Engines, The Marine Alternative Fuel

 Maran Gas Maritime Inc.
An update on LNG propulsion
and peripheral systems.
Examples

u Wärtsilä and Maran Gas Maritime signed a

five-year agreement covering the
maintenance of the latter’s 21 TDFE (tri-
fuel diesel electric) LNG carriers equipped
with Wärtsilä 50DF engines. The Wärtsilä
50DF tri-fuel engines installed on the MGM
vessels can be operated with heavy fuel oil
(HFO), marine diesel oil (MDO) or natural
gas.
EVOLUTION OF TECHNOLOGY
u Pan Asia, the first of four 174,000m³ tri-fuel diesel electric (TFDE) LNG carriers that shipowner Teekay LNG 1 has
ordered from Hudong-Zhonghua Shipbuilding, has comp
2. PROPULSION leted sea trials off the east coast of China
d. Tri-fuel Electric Propulsion – efficiency 41%.

LPG for Marine Engines, The Marine Alternative Fuel Page 62

 3.4.6. Outboard/Inboard engines

Outboard motors are self-contained engine units mounted to the rear wall (transom) of the boat. Each unit has an
engine, propeller, and steering control. Cables attached
DEALER LOGIN CONTACT US ENGLISH to the steering wheel actually pivot the entire motor unit to
SUSTAINABILITY CAMPAIGN INDONESIA HONDA POWER PRODUCTS WORLDWIDE

provide steering. ABOUT US PRODUCTS DEALERS PROMOTION SERVICE & SUPPORT NEWS & EVENTS

Home / Products / General Purpose Engine / Engine- GX200T2LPG

Models can be powered either by LPG, CNG or gasoline or diesel fuel, and single or twin engines are available.

PRODUCTS
Most common Engine- GX200T2LPG
is a rotating propeller, but some are jet-propulsion systems that move the craft by shooting water to
push theGeneral
boat. Purpose Engine Honda Technology LPG engine that can generate

Water Pump
Outboard motors are the most common type of boat propulsion, on
strong performance, environmentally friendly and highly
economical for long term use.

Generator
freshwater fishing boats and pleasure craft. Inboard engines are mounted
Lightweight design with compact shape facilitates

Lawn Mower
inside the hull's midsection or in front of the transom and apply similar
installation of machinery for a wide range of equipment.
Honda GX 4-Stroke engine series has become the

Brush Cutter
technology like outboards.
international The
standard for engine
versatile turns a drive shaft that runs through
machine.

the bottom of the hull and is attached to a propeller at the other end.
Tiller
Common Applications
Outboard
Many personalPressure
watercraft
Commercial
washers
lawn and(PWCs) have two-stroke inboard engines that
garden equipment
Spare Parts & Accessories
burn oil as a lubricant along with the fuel. New-technology two-stroke
Tillers / cultivators*
Generators*
PWC engines are direct-injection engines
and burn cleaner than conventional PWC
Class
Construction / industrial equipment*
Agricultural equipment

engines. Water pumps

Long Tail Boat Engine
Engine Type

Style Find Dealers

Selecting an Engine
Specifications
Why choose Honda

Engine Model GX200T2

Fuel Recommendations
Code QDG
Troubleshoot Guide
Engine Type Air - cooled single – cylinder, 4- Stroke, OHV
Oil Recommendations
Bore x Stroke 68.0 x 54.0 mm
Stern Drives
General Storage Information Displacement 196 cm³

Draining the fuel tank and carburetor Compression Ratio 8.5

Stern drives are
for seasonal known
or long also as inboard/outboards
term storage (I/Os) because
Max Torque* (N-m)@2500 rpm 12.4
they combine features found on both inboard and
outboard
Honda engines. Stern-drive engines
Engine Technology adapted for marine 4.1kW
Max output*
use (5.5 and are mounted inside the boat. A stern-drive engine is
HP)/3,600 rpm

attached through the transom

How to distinguish Honda Genuine to a drive
Air unit
Cleaner (also called an "outdrive")
Dual Silent that is essentially the lower unit of an outboard.
Products
The engine turns a drive shaft that is attached to a propeller at the other end. Steering of stern-drive boats is controlled
Starting System Recoil

by the outdrive, which swivels like an outboard engine to 0.6direct

Oil Capacity L
propeller thrust. Stern drives have quieter and more
Ignition System Transistor type magneto ignition
fuel-efficient engines.
SW System Short – Circuit stop

Dry Weight 16.0 kg

Jet Drives LxWxH 321 x 376 x 335 mm

Fuel Gas (LPG / CNG)

u Jet drives propel a vessel by forcing a jet of water out the back of the vessel. Directing this jet of water steers the
Regulator

Shut off Yes

Primary Button Yes

Page 63 Idle adjust screw Yes LPG for Marine Engines, The Marine Alternative Fuel
Gas Inlet 11,5 mm

Data Specifications are subject to change at any time without prior notice
 vessel.
u Personal watercraft are the most common type of vessels that use a jet drive.
u Jet drives also may power larger vessels (jet boats) and are used commonly for vessels designed for shallow water
conditions. Jet boats can have inboard or outboard jet drives. Jet drives use an engine to power a strong water
pump, which sucks up water and then forces the water out the back to thrust the vessel forward.

All of the above engines could easily be converted to bi-fuelled petrol LPG or to be OEM mono fuel LPG Engines.

LPG Injection for Ship Diesel Engines

All diesel engines in LNG carriers are slowly changing over to dual fuel diesel engines because of the advantages of the
gaseous fuel resulting from the vaporised liquefied natural gases in tanks during sailing.

Dual combustion engines are able to consume this gas and convert into useful energy. Normally during sailing the gas
involved is completely used in these engines and the same engines use diesel as fuel during manoeuvrings in port.

In LNG carriers where dual fuel engines are employed, the primary fuel is a natural gas (methane) and in LPG carriers
the same practice could apply. These cargos which are being carried in these vessels can be used to operate on diesel
engines. An additional advantage of the DFDE is it can operate on 100% diesel fuel also.

Initially when first LNG carriers were introduced the boil off gases from the tanks (i.e. propane) were used as fuel for
power generation in boiler combustion. This boil-off gas rate will vary according to the quantity of LNG carried on board
and the quality of the liquefied petroleum gas. It is approximately 0 .12 to 0.16 percentage per day of ship cargo capacity.
This boiled-off propane gas obtained from LNG tanks has a composition like methane, butane, and propane. Among
this, propane has the greater proportion when compared to the other gases. Propane alone can contribute around 70%
of LPG. But nowadays the same boiled off-gases are used in main propulsion diesel engines and for this purpose the
diesel engines are changed over to dual fuel diesel engines thereby reducing the diesel consumed by the engine, hence
reducing the overall operating cost of the ship as the daily fuel cost alone contribute to half of the daily running cost of
the engines.

Normally during manoeuvrings inside congested waters, LPG injection is not efficient because it requires a steady service
speed. So, during rough weather and in manoeuvrings periods the marine diesel or heavy fuel oil is used because it
produces more power than propane injection. When the ship reaches sea speed or service speed, it is changed over to
propane that will provide all the required sailing power during calm weather. These engines will operate completely on
diesel and as the ship begins to sail at full speed the propane gas is admitted in the pilot injection valve to replace the
diesel fuel to 80% or even more. Normal diesel engines can be converted to dual fuel engines because they have
relatively the same compression ratio, structural design, etc. Dual fuel diesel engines have the advantage that the
power of the engine can be increased by adding a few more cylinders and there is no limit for the size of the ship.

LPG for Marine Engines, The Marine Alternative Fuel Page 64

 3.4.7. Ethane powered ship engine

Originally designed to run on LNG, MDO and HFO, the Dragon class vessels were meant to use LNG as fuel when trading
ethane and other LPG cargoes. However, logistical challenges with LNG and extremely favourable price development of
ethane led to the idea to use LEG cargo boil-off as fuel. Wärtsilä worked in close collaboration with Evergas and INEOS
to make the world’s first ethane-powered marine vessels a reality.

The overall solution has several competitive advantages

for LEG carriers, including the ability to utilise HFO, MDO,
LNG and/or LEG with uninterrupted operation; IMO Tier
III compliance without the need for secondary exhaust
gas treatment; low gas pressure requirements and the
ability to effectively utilise boil-off gas from the cargo.
Sulphur emissions are eliminated using LEG, resulting in
a highly cost-effective means for Evergas to be compliant
in SECA zones in both North America and Europe.
Particulate emissions are also eliminated, enabling
smokeless operation. The successful result of the project
was enabled through strong collaboration between
Wärtsilä, INEOS and Evergas.

Mitsui Engineering & Shipbuilding Co. have completed the world’s first ethane-operated two-stroke diesel engine. The
engine is one of three the company is building to power three LEG (liquefied ethylene gas) tanker ships for Hartmann
Schiffahrt of Germany and Ocean Yield of Norway. The ships are being built in China.

They have chosen ethane for different reasons:

u It is cheaper than HFO.

u It burns significantly cleaner.
u The most significant reason is that a tanker full of ethane can always tap into that ethane as fuel for the ship,
should the need arise.

So far, eight of the ethane-powered engines have been ordered.

Mitsui Engineering & Shipbuilding Co., Ltd (MES) has completed the world’s
first ME-GIE ethane-operated two-stroke diesel engine. The engines will be
for propulsion of three ethylene carriers, which primarily will carry liquid
ethane as cargo. The Mitsui-MAN B&W 7G50ME-C9.5-GIE is the first engine
in a series of three for installation in three LEG (liquefied ethylene gas)
carriers of 36,000 m3 for Hartmann Schiffahrt of Germany and Ocean Yield
of Norway, being built at Sinopacific Offshore Engineering (SOE) in China.

MAN Diesel & Turbo reports that ethane was chosen as fuel, in preference
to HFO, due to its more competitive pricing as well as the significantly
shorter bunkering time it entails. As a fuel, its emissions profile is also superior to HFO in which respect it is similar to
methane and compared to HFO contains negligible sulphur and 15-20% lower CO2. MAN Diesel & Turbo also verified
methane operation on this engine type and states that the ME-GI engines will be set up such that they can easily be
converted to run on methane as an alternative, as per the owner’s wish. MAN Diesel & Turbo currently has eight ME-
GIE engines on order.

Page 65 LPG for Marine Engines, The Marine Alternative Fuel

 While ME-GI engines have been designed for use by several, different fuel types to date, ethane is a new departure.
Ethane is one of the natural-gas liquids (NGLs) that are naturally occurring elements found in natural gas (and frequently
separated removed and sold as a separate product), and include propane and butane, among others.

3.4.8. Engines running on LPG could be converted to ammonia

MAN believes that in the future, engines running on LPG could be converted to ammonia combusting engines. As such,
the most likely vessel candidates for ammonia-based propulsion would be ammonia carriers or LPG tankers due to the
similarity of tank storage requirements. Aside from retrofits, MAN believes that it would even be possible to order an
ammonia-ready engine design for LPG combustion.

Ammonia is gaining traction a true next generation fuel. One way of making shipping greener could lie with ammonia
(NH3). A pungent gas in its natural form, ammonia is widely used by farmers as a fertilizer and might seem an odd
saviour for the shipping industry, especially as the manufacturing process is far from green. Ammonia is made by
reacting nitrogen at high temperatures and pressures with hydrogen
obtained from methane. The latter is an energy-hungry process, known as
“steam methane reforming”, that accounts for 1.8% of all carbon-dioxide
emissions.

However, according to new studies ammonia has a vital role as a zero-

carbon fuel and energy store. The maritime industry is likely to be an early
adopter of “green ammonia”, a fuel made by mixing nitrogen from the air
with hydrogen obtained by electrolysing water using electricity from
sustainable sources. Green ammonia could either be burnt in a ship’s engine or used in a fuel cell to produce electricity.
Water and nitrogen are its only by-products and it has an energy content of 3 kWh per litre of fuel compared with just
2 kWh/l for liquid hydrogen.

Although conventional fuel oil has a higher energy content of 10 kWh/l, ammonia is easily stored in bulk as a liquid at
modest pressures (10–15 bar) or refrigerated to –33 °C – making it an ideal chemical store for renewable energy.

Ammonia also benefits from a fully existing near global distribution

network, in which it is stored in large refrigerated tanks and transported
around the world by pipes, road tankers and ships.

Lloyds Register along with MAN, Samsung Heavy Industries and the MISC
Group, announced plans to develop ammonia-fuelled tankers to deliver
viable deep-sea zero-emission vessels by 2030. The UK’s Science and
Technology Facilities Council has also been working on green-ammonia
technology with three firms, Siemens, Engie and Ecuity.

Ammonia costs more than conventional fuels for ships. But if the power to create the hydrogen and ammonia can come
from carbon-free sources, such as renewables or nuclear, then surely green ammonia will be the future of carbon-free
shipping and other sectors too. When it comes to storing, ammonia can be stored on vessels under the same conditions
as LPG, however, the tank volume would have to be twice that of LPG due to the lower energy density.

Major project to convert offshore vessel to run on ammonia- powered fuel cell

ShipFC consortium project has been awarded €10m fund injection to deliver world’s first high-power fuel- cell to be
powered by green ammonia.

LPG for Marine Engines, The Marine Alternative Fuel Page 66

 A maritime innovation project looking to install the world’s first ammonia-powered fuel cell on a vessel has been
awarded €10m funding from the European Union.

The ShipFC project is being run by a consortium of 14 European companies and institutions, co-ordinated by the
Norwegian cluster organisation NCE Maritime CleanTech, and has been awarded backing from the EU’s Research and
Innovation Programme Horizon 2020 under its Fuel Cells and Hydrogen Joint Undertaking (FCH JU). The project will see
an offshore vessel, Viking Energy, which is owned and operated by Eidesvik and on contract to energy major Equinor,
have a large 2MW ammonia fuel cell retrofitted, allowing it to sail solely on the clean fuel for up to 3,000 hours annually.
As such the project will demonstrate that long-range zero-emission voyages with high power on larger ships is possible.

The goal is also to ensure that a large fuel cell can deliver total electric power to shipboards systems safely and
effectively. This is the first time an ammonia-powered fuel-cell will be installed on a vessel. A significant part of the
project will be the scale up of a 100-kilowatt fuel cell to 2 megawatts. The fuel cell is tested on land in a parallel project
and development and construction will be undertaken by Prototech. Testing will be executed at the Sustainable Energy
Norwegian Catapult Centre. The ship-side ammonia system will be supplied by Wärtsilä. The ammonia fuel cell system
will be installed in Viking Energy in late 2023. Ammonia does not need to be compressed and is liquid at normal
temperatures under low pressures – another reason why it could be a good shipping f
LR awards AiP to ammonia-fuelled 23,000 TEU ultra-large container ship

LR has granted Approval in Principle (AiP) to Daewoo Shipbuilding & Marine Engineering (DSME) and MAN Energy
Solutions for its ammonia (NH3) fuelled 23,000 TEU ultra-large container ship design, a key result from a Joint
Development Project (JDP) launched in 2020 focused on developing ammonia propulsion ships. It is the first AiP to be
awarded in Korea for an ammonia-fuelled ultra-large container ship design.

As part of the JDP, DSME generated the basic design of the ammonia propulsion system and MAN Energy Solutions was
responsible for the development and specifications of the ammonia dual fuel propulsion engine. LR’s role was to review
the suitability and risks of the design which involved a hazard identification (HAZID) workshop, a hazard & operability
analysis (HAZOP) workshop and a design review in accordance with the Approval of Risk-Based Design (ARBD) process,
which led to Approval in Principle.

LR’s AiP certification is the first phase of the JDP. The second phase will involve further development of the design for
meeting market demand in terms of commercial viability as well as technical and safety maturity. The ammonia-fuelled
23,000 TEU ultra-large container ship is expected to be commercialised by 2025.

MAN Energy Solutions has partnered with Japanese shipbuilder Imabari Shipbuilding, ClassNK classification society,
Mitsui E&S Machinery, and energy trading firm of Itochu Corporation, Itochu Enex, on the development of a vessel
powered by ammonia.

The cooperation builds on the work MAN Energy Solutions has already undertaken on the development of an ammonia-
powered engine. This will serve as the groundwork for developing the design of the vessel including that of the ammonia
storage tank, fuel supply system and a series of systems for the main engine. Mitsui and ClassNK will support the project
through safety assessment services and insight, while Itochu Enex and Itochu Corporation will be in charge of exploring
the ammonia fuel distribution network and establishment of a supply facility of ammonia for maritime use. The project
is in line with the shipping industry’s efforts to decarbonize shipping and build zero-emission vessels.

Page 67 LPG for Marine Engines, The Marine Alternative Fuel

 additional LNG ready ships. As for scrubbers, the total number of ships
2020
with scrubbers for 2019 is 2947, which is also expected to rise from
DNV GL provides an overview of the ships that use LNG or scrubbers.
2020.
Namely, currently there are 318 con!rmed LNG fuelled ships, and 141
additional
FUELS | 06/06/19
LNG ready ships. As for scrubbers, the total number of ships
with scrubbers for 2019 is 2947, which is also expected to rise from
2020.
3.5. Marine Engine Application Segments
LNG
FUELS | 06/06/19
3.5.1. Ship Segments
Presenting Overview
these number during Nor-Shipping 2019, DNV GL indicated that 163 LNG ships are
LNG
operating with 83 being on order. What is more, a total of 112 ships are LNG ready.
There are numerous marine segments that can utilise LPG as fuel. Already many examples of use of LNG as marine fuel
Presenting
exist, and LPG these number
can follow during
the same Nor-Shipping
paths. Some marine 2019,
segmentsDNV mayGLbeindicated that 163
moreofattractive LNG
to the useships
of are
The number LNG ready ships is LPG as a fuelto
expected
operating
than THEwith
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INBOX!
increase in 2020, reaching 123 vessels, with
ThereENTER
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141, with the
orders gradually increasing every year, reaching 155 in 2026. The number of LNG ships will in fact remain
increasing every year, reaching 155 in 2026.
the same until 2026, but the LNG ready ships will increase to 141, with the orders gradually
increasing every year, reaching 155 in 2026.

Carand
Car andpassenger
passenger ferries
ferries will
will bebe using
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areare already
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with and oil/chemical
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tankers 18.18.
with

Scrubbers
LPG for Marine Engines, The Marine Alternative Fuel Page 68
Currently
Scrubbers a total of 2947 ships are equipped with scrubbers. This number will increase
signi"cantly in 2020, reaching 3502. After 2020, more increase in the use of scrubbers will be
Currentlybut
recorded, a total
withof 2947 moderate
a more ships are equipped
pace. with scrubbers. This number will increase
 3.5.2. Commercial Vessels

Commercial vessels of all sizes can benefit of the use of LPG as engine fuel.

Large vessels have engines of all types, from two- or four-

stroke diesel engines to turbines similar to those on
airplanes or even just several diesel generators that power
thrusters or pods. It all depends on what the ship is
designed to do and how it will be operated.

The majority of large commercial ships, from freighters to

oil tankers, use two-stroke, slow speed diesel engines
connected directly to their propeller. The large two-stroke
diesel engines are efficient for constant speed steaming and
running on heavy fuel oil. Compared to other fuels, HFO is
very cheap but also known for lots of heavy air pollutants
including sulphur oxides and nitrogen oxides
Two Stroke Diesel Engine

3.5.2.1. Cargo ships

3.5.2.1.1. Large ocean-going ships-VLGCs

Getting a fully-laden cargo ship across an entire ocean requires enormous amounts of energy—usually derived from
pollutant-rich diesel fuel.

An important benefit for using LPG in VLGC’s is the elimination of

the time taken for bunkering, since the engine would be burning
the cargo. In case of LNG, a compressor/chiller is used to liquidise
and feedback cargo vapour into the main cargo area, which would
be unnecessary for LPG.

Photo by BW LPG

Currently, four LPG VLGC, the BW Gemini, Leo, Orion and Libra has been retrofitted to run on LPG. However, many
companies have ordered LPG engines.

Case 1: World’s First “LPG as Fuel” Order-Two EXMAR VLGCs will be LPG fuelled

Exmar has chosen LPG-burning, dual-fuel engines to propel a pair of VLGCs. The Belgian ship operator’s VLGCs will be
the world’s first LPG-fuelled vessels. The ship and propulsion system
design has been developed in tandem with Lloyd’s Register, as the
vessels’ class society, and MAN Diesel & Turbo, the engine
manufacturer.

The technology group Wärtsilä will provide an integrated cargo

handling and fuel gas system for two new gas carrier vessels for
Exmar, the Belgium-based fleet owner. The ships, which will
transport LPG, are being built at HHIC-Philippines (Hanjin Heavy

Page 69 LPG for Marine Engines, The Marine Alternative Fuel

 Industries & Construction Philippines) in Subic Bay. The design of these ships focuses on high efficiency and a more
sustainable operational profile. In achieving this, these 79,500m³ VLGCs will be the first new build vessels capable of
running on LPG. This valuable order was booked in July, 2018. On delivery in 2022 the newbuilding pair will go on long-
term charter to Equinor.

These are ‘game-changing’ gas carriers and the aim has been to achieve the best possible operational and economic
performance, while at the same time, ensuring the lowest possible environmental footprint.

Case 2: World’s First retrofitting of LPG-propelled dual-fuel engines-BW LPG to Retrofit 15 Ships

BW LPG has signed contracts including future options for the delivery and retrofitting of fifteen LPG-propelled dual-fuel

LPG Fuel for the future

The green solution, ME-LGI technology

inherently compliant to is now available
current and future SOx as a retrofit solution
regulations, less PM, and LPG is available
NOx, CO2 & GHG is fuel, efficient & green.
pleasant bonuses. The right thing to do
Future proof

High-Tech Green Ships

LPG as fuel have higher energy Increased demand of LPG as

content and overall lower cost. fuel will create a new market
Non sensitivity to post 2020 fuel for LPG
price fluctuations
4

engines in its fleet, in a world’s first initiative. BW LPG first retrofitting, BW Gemini, the world’s first VLGC to be
retrofitted to LPG dual-fuel propulsion technology, has successfully completed her historic crossing of the Pacific Ocean
on LPG fuelled propulsion, and completed her loading at Enterprise Terminal in Houston.

The Very Large Gas Carriers (LPG) take lead

- lowering all emission types significantly

Vessel FACTS:
BW Gemini, 84,000 cbm VLGC, Owner BW LPG
Main Engine 6G60ME-C9.2 - 12,400 kW,
• built in 2015 to be fueled with HFO
• converted in 2020 to be fueled with LPG
• first LPG fueled vessel in the world
• 14 sister vessels will also be converted to LPG

Compared to OIL - LPG provide

significant emission reductions:
• SOx by 99%
• CO2 by 15%
• NOx by 10%
• PM by 90%

Webinar: Dual-fuel LPG conversions Nov 2020 2

LPG for Marine Engines, The Marine Alternative Fuel Page 70

 BW Gemini is carrying a record load of 49,000 metric tons of LPG on a single keel. As the vessel refuelled while loading
and no additional bunkering was needed, she has proceeded on her voyage. This turnaround translates to an increase

Cold Conversion

LPG as a marine fuel: lessons learned 08.03.2021 9

in the vessel’s commercial availability for customers. BW LPG has committed to retrofitting 15 vessels at a combined
cost of approximately $130 million.

According to BW LPG, building new ships can provide the benefits of operating with LPG but comes at a heavy cost.
Counting total emissions, a new ship represents about 70,000 tons of carbon dioxide in the materials and building
process, compared to 2,000 tons of carbon dioxide for retrofitting, the sustainability outcome is much better from
retrofitting than from building new vessels.

Output efficiencies will improve by ~11% with LPG vs compliant fuels. This means that they capture significant
improvements in total voyage fuel economics. Other efficiencies gained with LPG include easy storage, faster refuelling
and wide availability of bunkering ships and facilities. All these ensure that LPG is a long-term sustainable marine fuel.

Quotes

"Increasing BW LPG’s total investment to fifteen dual-fuel propulsion engines is part of our corporate
commitment to sustainable development. Through investments in pioneering propulsion technology, BW LPG
modernizes its existing fleet and reduces our overall environmental impact.”
Pontus Berg, Executive Vice President, Technical and Operations at BW LPG

“Retrofitting 15 of our vessels with pioneering LPG propulsion technology is a significant upfront commitment, but
the returns are positive in both financial and environmental terms. It is the result of our company’s focus to invest
resources and expertise to pioneer technology that can be used to push our industry towards decarbonisation
without the need for dedicated newbuilding orders.”
Serge Schwalenstocker, Project Manager, BW LPG

BW LPG move the maritime industry a step towards a cleaner future.

Page 71 LPG for Marine Engines, The Marine Alternative Fuel

 Case 3: DORIAN LPG entered into a MOU to study to Retrofit ten Ships

Gas carrier owner and operator Dorian LPG has entered into a memorandum of understanding with Hyundai Global
Service Co. to undertake research and preliminary engineering studies to upgrade the main engines of up to ten VLGCs
to dual fuel technology, utilising LPG as fuel.

Dorian and Hyundai Global Services (HGS) are examining LPG as a marine fuel - in particular conversions to MAN Diesel
& Turbo's forthcoming ME-LGIP dual-fuel engines - in anticipation of the IMO’s global fuel sulphur cap, in force from
2020. The project follows a preliminary investigation into LPG as fuel conducted by Dorian and the American Bureau of
Shipping.

DORIAN LPG had already added enhancements to its vessel design in recent new builds to allow for the option of using
LPG. It noted that LPG has an advantage over other potential fuels
given its abundant availability from the shale exploration boom and
an existing global distribution network, with onshore and floating
storage infrastructure.

LPG as Fuel: Techno-economic Study Life Cycle Cost Analysis from

ABS is mentioned in Appendix 2.

Case 4: Astomos Energy

Astomos Energy, Japan's top LPG supplier, works towards promoting LPG as marine fuel. Kawasaki Heavy Industries
(KHI) has recently developed a design of 80,000 cbm VLGC using LPG as fuel.
The newly developed VLGCs are equipped with ME-LGIP, a dual-fuel (DF) diesel engine that uses LPG and heavy oil as
fuel as a main engine. LPG is used as a fuel to reduce
sulphur oxides (SOx) that it can meet various
environmental regulations.

ME-LGI, which is installed as a main engine in the newly

developed VLGC, was unveiled at Gastech 2017. It is an
engine that uses low flash point fuels such as LPG and
methanol. Kawasaki is working on development of
LPG-fuelled systems which include main engine, fuel
supplying system and so on.

Meanwhile, Japan's Astomos, which operates the

world's largest VLGC fleet, is now actively reviewing
the application of the LPG fuel to the entire 22 VLGC fleet and is touting LPG as an alternative to CST380 bunkers. It
plans to respond to international environmental regulations with DF diesel engine that uses LPG as fuel.

By 2020, Astomos Energy is considering LPG-fuelled VLGC, before promoting LPG as marine fuel for other vessel types,
such as car carriers, container ships and bulk carriers. The company has already commenced collaborations with
compatriot shipbuilders, ship owners and ship operators.

LPG for Marine Engines, The Marine Alternative Fuel Page 72

 With regards to Astomos Energy's current fleet, the main engine of the vessels, ME-LGI, is manufactured by MAN Diesel
& Turbo, and can be dually fuelled by LPG and HSFO.

In pushing for LPG as ship fuel, Astomos Energy considers that the infrastructure and availability are not issues because
a global supply chain is already in place. It is also easier to handle LPG as its main components, propane and butane, are
to be stored at -42° and -0.5°, respectively. Comparatively, the burning of LNG is more expensive due to the maintenance
costs, as the gas has to be stored at -162° in cryogenic tanks. While there is already an established market for LPG
trading, a spot market for LNG trading is far from stable. Currently, LNG purchases are very much dominated by long-
term supply contracts, despite calls for more flexibility in the wake of weak prices. While LNG bunkering infrastructure
will take time to develop, LPG supply networks are already in place, as Astomos Energy has supply networks in
Singapore, the US Gulf, the Gulf and Europe.

Annually, the company imports over four million tonnes of LPG. As LPG production in the US Gulf is expected to grow
with shale exploitation, the international LPG market will flourish, even as prices have become depressed.

Projects under development:

LPG case study

In connection with the Gastech 2017 conference and exhibition in Tokyo, project partners Consolidated Marine
Management (CMM), Hyundai Heavy Industries (HHI), Wärtsilä Oil & Gas, and DNV GL presented the results of a joint
industry project (JIP) to develop a new LPG fuelled carrier design – LPGreen. Launched at the Posidonia trade fair in
2016, the JIP sought to develop a more energy efficient, environmentally friendly, and safer vessel for the

transportation. The new concept design achieves state of the art performance on several fronts, according to the
partners. Compared to the reference vessel, built to a standard design in 2016, there is an overall improvement of 6–
9% in energy efficiency, depending on machinery configuration and fuel used. A redesign of the tank allows for a filling
limit of 99% – a 1%

increase in overall carrying capacity. Loading duration has been decreased by 30%, while the newly designed cargo
handling system concept results in a 5% reduction in energy demand.

Page 73 LPG for Marine Engines, The Marine Alternative Fuel

 LPGreen has also demonstrated the technical feasibility of a LPG-fuelled propulsion concept, which, depending on fuel
prices and the development of a commercial and chartering framework, could result in a cut of up to 30% in fuel
expenses.

To realise these gains, the development partners used advanced computer analysis tools. Hull form optimisation both
in calm water and waves was conducted using HHI’s and DNV GL’s CFD hydrodynamic optimization codes. The overall

LPG for Marine Engines, The Marine Alternative Fuel Page 74

 concept system evaluation and optimization was conducted using DNV GL’s COSSMOS modelling framework, which
allowed for an integrated analytical approach to the evaluation of all machinery technology options and design
improvements considered.

In order to increase the competitiveness of modern LPG carriers, novel ship designs need to simultaneously account for
the market and trade route characteristics; excellent safety and ease of operation; cargo and fuel flexibility; and, overall
energy efficiency combined with economic viability.

Therefore, a holistic approach to the design of modern LPG carriers is required, taking advantage of market insight,
technology innovation, advanced computer tools and industry-wide collaboration with strong partnerships.

3.5.2.1.2. Tankers

This market segment makes up the single largest ship type in the world due to the preponderance of the transport of
petroleum products. Both Clarkson’s and Fairplay continue to rate the tanker market as sluggish in the near term. With
some experts predicting an increase in
oil imports to Asia of around 9% and a
decrease in imports in the United
States of around 7% in the near term,
the number of tankers is expected to
stay flat.

medium tanker Photo by Rolls-Royce large tanker Photo by Rolls-Royce

LNG Powered Tankers

Currently, one tanker fuelled with LNG as a fuel is in operation the BIT VIKING. The vessel was converted in 2011 and is
using dual fuel main engines that can operate on either gas or diesel fuel. The vessel is operating in the North Sea.

LNG carriers have long been using LNG as a fuel by simply using their own cargo’s “boil-off” gas but Dutch shipping
company Anthony Veder is now having a pair of 4700-cubic-meter capacity Liquefied Ethylene Gas (LEG)/Liquefied
Petroleum Gas (LPG) tankers built in China that will use LNG as a fuel but will not transport it as a cargo. To be completed
by China’s Avic-Dingheng Shipbuilding Co. Ltd for operation in the North Sea when delivered, the twin 99.95-meter by
17.20-meter vessels will make use of a propulsion package being furnished by Wärtsilä in which the main and auxiliary
engines will be capable of operating on both LNG and marine diesel. The dual-fuel technology will allow the ships to sail
without restriction in Sulphur Emission Control Areas (SECAs) and Nitrogen Emission Control Areas (NECAs).

3.5.2.1.3. Bulk carriers

Bulk carriers make up a large portion of the world fleet. Like tankers, these are typically large, slow
speed, relatively simple ships. The market outlook for bulk carriers is expected to be 2% to 4%
growth in the near term giving very modest growth in the fleet. Bulk carrier owners are also facing
a tough financial environment with slowing growth in this segment.

There are no large size bulk carriers that are being powered by LNG, but there have been some
concept designs that have been developed.
Photo by Rolls-Royce
The ECO-ship 2020, an open hatch bulk carrier, and ECORE, a Very Large Ore Carrier (VLOC), are concept designs using
LNG as a fuel that have been developed by industry partners, including DNV.

Page 75 LPG for Marine Engines, The Marine Alternative Fuel

 In North America, the bulk carriers operating on the Great Lakes are considered likely candidates for using LNG as a fuel
and the first projects for converting existing vessels have been recently announced. Interlake Steamship Co.,
a US company that owns eight self-unloading ore carriers operating on the Great Lakes, has announced its intention to
convert seven of the vessels in the fleet to use LNG as the main propulsion fuel. The first vessel planned to be converted
is the M/V MESABI MINER.

There are a great deal of opportunities for LPG in these vessel types.

3.5.2.1.4. Containerships

Containerships are one of the prime sources of pollution at sea. Since it has become very important in today’s times to
preserve and safeguard the marine eco-system, all major shipping companies are
looking at designing ships that will cause very few polluting gases in the marine
atmosphere. This market segment is expected to see significant growth in the use of
LNG fuel, however, the challenge for ships on longer voyages will be the increased
cargo space that must be converted to fuel storage to give a sufficient range. In North
America, the container ship segment has recently seen several announced projects
in converting existing vessels, as well as new builds with LNG as the fuel.

Photo by Rolls-Royce

LNG fuelled containerships

u Owned by TOTE, in partnership with General Dynamics NASSCO, Isla Bella proudly flaunts the title of world’s first
LNG-powered containership. She is also the first of two Marlin class containerships and the largest LNG-powered
dry cargo ship.
u The Jones Act-qualified ship is equipped with Daewoo Shipbuilding & Marine Engineering (DSME)’s patented LNG
fuel-gas system and is also the world’s first ship to be powered by a MAN ME-GI dual-fuel, slow-speed engine. This
engine dramatically decreases NOx emissions by 98 percent, SOx by 97%, and carbon dioxide by 72%, making the
ship the greenest vessel of its size. Not only does she feature a ballast water treatment system, but is also capable
of burning diesel when needed, thereby further reducing the air-polluting emissions.
u Another US company, Matson, has also signed a contract with a US shipyard for the construction of two 3600 TEU
container ships equipped with dual fuel engines. These are also Jones Act vessels and are intended for trade from
the US West Coast to Hawaii.

LNG Powered ConRo Ships

Construction for the world’s first LNG-powered ConRo Ships began in October
2014. The ships’ design is provided by Wärtsilä Ship Design in conjunction with
Crowley subsidiary Jensen Maritime. The main propulsion and auxiliary engines
will be fuelled by environmentally-friendly LNG.

RORO ships
The world’s largest LNG Powered RoRo Ferry has been ordered by Australian
shipowner, SeaRoad and is under construction at Flensburger-Schiffbau-
Gesellschaft (FSG) yard in Germany. At 181m, it will be the largest RoRo ferry with
LNG propulsion and the first vessel of this type built by FSG.

LPG for Marine Engines, The Marine Alternative Fuel Page 76

 3.5.3. Fishing Boat/Ships

LPG is a very attractive fuel in the fishing sector. Its undeniable environmental benefits make it anideal fuel for use in
environmentally protected areas, lakes, rivers but also largely in fishing fleets where water contamination from the
marine fuel can have severe
adverse effects.

The use of LPG as an engine fuel is

particularly popular in boats
operating in salmon fishing
farms. Besides its environmental
benefits, in many countries the use
of LPG in the marine segment
provides significant cost saving
opportunities for fleets and other boat operators. The US-based company, LEHR is a ground breaker in this sector,
providing education and support to many countries globally that utilise LEHR LPG outboards & inboards engines
solutions for port vessels, small passenger ferry, fishing fleets etc,. One type of lower cost engine used is the “long-tail”,
a horizontal shaft utility engine mounted on a pivot on the transom with a long surface piercing propeller shaft. This
type of utility engine is most popular in certain countries in Asia and now running on LPG it lowers the cost and improves
the reliability for commercial fishermen.

Small fishing boats running on LPG

LPG 6.5HP Long-tail Engine

u Air-cooled four-stroke, single
cylinder
u Bore*Stroke: 70*54mm
u Displacement: 212cc
u Max power: 4.7kW/3600rpm
u Max Torque:
13.0N.m/2500rpm
u Oil Capacity: .6L
u Ignition System: TCI

LPG 13HP Long-tail Engine

u Air-cooled four-stroke,
single cylinder
u Bore*Stroke: 88*64mm
u Displacement: 389cc
u Max power:
9.7kW/3600rpm
u Max Torque:
26.4N.m/2500rpm
u Oil Capacity:1.0L
u Ignition System: TCI
u Starting System: Recoil start

Page 77 LPG for Marine Engines, The Marine Alternative Fuel

 3.5.4. Passenger Vessels

The passenger vessel segment includes cruise vessels and ferries. Overall, the segment is small in the number of ships
compared to the world’s total shipbuilding demand, but the
cruise segment offers ships of very high value and is almost
completely dominated by European builders, while Europe also
has a strong position with regard to ferries.

The market for cruise ships is strongly driven by tourism market

trends. The passenger vessel segment is the most important part
of the total European order book in terms of value. In terms of
turnover value, almost half (47%) of all vessels built in Europe are passenger and cruise vessels.

LNG powered passenger vessels

Although Norway has been a significant innovator of LNG propulsion the trend has been expanding internationally, with
Italy’s Lauro Shipping recently entering into an agreement that will see a series of gas-powered passenger/auto ferries
developed for Mediterranean use based on Rolls-Royce’s “Environship” programme. This will be the first use of the
Environship concept in a passenger vessel and the design will include LNG-burning Bergen engines as well as wave
piercing bows and combination Promas propeller/rudder systems, the latter to enhance both fuel efficiency and
manoeuvrability.

In Australia, Incat Tasmania Pty Ltd has already completed the world’s first LNG-burning high-speed passenger/auto
ferry for operation by South America’s Buquebus on the Buenos Aires - Montevideo run. The 50-knot vessel, with a
capacity of 1,000 passengers and 140 vehicles, is the first high speed commercial craft to be powered by gas turbines
using LNG as the primary fuel, while marine distillate is retained for standby and ancillary use.

In North America, Canada’s Société des Traversiers du Québec (STQ) has ordered an 800-passenger/180-car LNG-
powered ferry from Italy’s Financtieri. Designed to operate on the St. Lawrence River, it will be North America’s first
ferry to be powered by LNG, although Washington State Ferries, BC Ferries and New York’s Staten Island Ferries have
all announced plans to begin using the fuel through retrofit programme.

3.5.4.1. Cruise ships

The cruise industry is expected to continue to grow due to the ageing of the population in the US and EU as well as
cruises becoming more affordable.

In regards to the greening potential, most of the recently built cruise ships comply with the strictest regulatory regimes
in existence as operators want their ships to be able to operate across the world, including attractive but vulnerable
pristine tourist destinations (the Baltics, Norway,
Alaska). On the other hand, however a large
number of older ships are still operational. As
these may not comply with the strictest
environmental rules, retrofit opportunities
might arise from green regulatory drivers.

Carnival Corporation has ordered four LNG-

powered cruise ships, two of which would join

LPG for Marine Engines, The Marine Alternative Fuel Page 78

 the AIDA Cruises fleet. The construction will be carried out at Meyer Werft and Fincantieri S.p.A shipyards. The four new
ships will also feature a revolutionary “green cruising” design. The ships will be the first in the cruise industry to be
powered at sea by Liquefied Natural Gas (LNG) the world’s cleanest burning fossil fuel, representing a major
environmental breakthrough.

Based on Carnival Corporation’s innovative new ship design, each of the four next-generation ships will have a total
capacity of 6,600 guests, feature more than 5,000 lower berths, exceed 180,000 gross tons and incorporate an extensive
number of guest-friendly features. The ships will be the first in the cruise industry to use LNG in dual-powered hybrid
engines to power the ship both in port and on the open sea. LNG will be stored onboard and used to generate 100
percent power at sea, producing another industry-first innovation for Carnival Corporation and its brands. The expected
delivery of these four cruise ships is between 2021-2022.

3.5.4.2. Ferries

Ferries within the harbour area are currently propelled with low-emission diesel engines. Due to short round-trips they
can be re-fuelled frequently. For ferries that do not carry any cargo below
deck there should be adequate enough space for gas fuel tanks to allow for
bunker capacity for several days.
Ferries and RoPax vessels that operate in international service are all fuelled
with conventional diesel engines burning low sulphur fuel. There is a strong
potentiality that this fleet could be converted to LPG operation in later stages.

Most ferries services operate within one country. The leading ferry operating
countries (by numbers of passengers served within their borders) are Greece,
Italy, Denmark and Norway. Most ferries can be found in the Mediterranean Sea, the North Sea and the Baltic Sea.

The average age of the current ferry fleet in Europe is quite high (32% older than 30 years), indicating a replacement
need. Furthermore, those ships operating in ECA areas (including all ferries operating the North Sea and the Baltic Sea)
will have to meet certain emission standards which should create a demand for either retrofitting, or – for the older
ships – earlier replacement.

A barrier to ship replacement however, is the funding capability of owners/operators, especially in ferry segments
where returns are low or where government owned companies have to meet public service level agreements on
commercially non-attractive routes. In other areas however, newbuilding replacements are seen on – apparently –
commercially attractive routes. With regard to operating greener ships, a number of ferry operators (government
supported or not) are choosing for ‘green’, e.g. ferries in Norwegian fjords, or the TESO ferry to Texel in the Netherlands.

The ferry market is a highly-differentiated market which encompasses large ferry operators that operate ferries that
resemble small cruise vessels (e.g. Color Lines serving Norway/Sweden) and small ferry services that are active on
specific routes in e.g. the Mediterranean. This makes it hard to draw general conclusions. Especially where ferries are
operated by the larger sized ferry operator groups such as Stena, DFDS or Grimaldi, innovation processes appear to take
place in close cooperation between yards and owners/operators. Smaller regionally operating ferry companies, often
based on public service agreements, have a much lower bargaining power and are more strongly inclined to use
standard ship types.

Still, innovation initiatives are found in this market, such as the STX France contract for 110 passengers ‘zero emissions’
ferry to serve the Lorient harbour crossing or hybrid ferries in Argyll County in Scotland. These innovations are often
influenced by public bodies that support these investments as part of a wider greening strategy.

Page 79 LPG for Marine Engines, The Marine Alternative Fuel

 LNG powered Ferries

u The first LNG fuelled vessel was a car ferry in Norway, and of the current fleet of LNG fuelled ships the passenger
coastal ferry segment is still the largest. The option of using LNG as a fuel is attractive to these types of vessels,
because of the operating profile as well as for economic, regulatory and environmental reasons.
u In North America, the Canadian ferry operator Société des traversiers Québec (STQ) has ordered three LNG fuelled
car ferries to be used on the St Lawrence waterway. There are two different new building projects, with one LOA
130 m ferry being built at an Italian shipyard, and the two other LOA 92 m ferries to be built at a Canadian shipyard
Renditions of Société des traversiers Québec LNG ferries.
u BC Ferries and Washington State Ferry system, which are operating large ferry networks in the Pacific Northwest,
have shown considerable interest in the use of LNG as fuel for both its existing vessels as well as for future new
building projects.

LNG fuelled PORAX

World’s First High Speed LNG Fuelled RoPax Ferry is being built for Swedish operator Rederi AB Gotland will be fuelled
by LNG and will feature Wärtsilä’s integrated solutions. The
ship will carry approximately 1650 passengers, will have
1750 trailer lane metres and can accommodate a
corresponding number of passenger cars, campers and
buses. It has been designed to meet the DNV-GL
classification society’s high comfort ratings for climate, noise
and vibration. Wärtsilä’s scope of responsibility includes four
Wärtsilä 50DF dual-fuel engines, two gearboxes, two
controllable pitch propellers (CPPs) with remote control
system, two Energopac rudders, two tunnel thrusters, four
Wärtsilä 20DF dual-fuel auxiliary generating sets, two
Wärtsilä LNGPac fuel gas handling systems, gas valve units,
a compact silencer system (CSS), an IMO approved Wärtsilä
Aquarius UV ballast water management system, an Oily Water Separator together with a Bilge Water Guard to monitor
and prevent oily water being discharged to the sea, project management services, integration engineering services,
commissioning services and on-site supervision during installation.

LPG Case study: LPG Ferry Korea

GE’s Marine Solutions reported on 23th May 2017 that the world’s first LPG-fuelled ferry design to use GE’s Combined
Gas Turbine Electric and Steam (COGES)
system has successfully completed Hazard
Identification (HAZID) meetings. The
consortium of Youngsung Global, DINTEC,
Korea LPG Industry Association, GE’s
Marine Solutions and Far East Ship Design &
Engineering Co. (FESDEC) signed a
multilateral memorandum of understanding
in November 2016 to cooperate on this unique ferry design concept.
The major players in the COGES LPG ferry concept are as below:
u Youngsung Global: Ferry owner
u DINTEC: Ferry operator
u GE’s Marine Solutions: COGES propulsion system provider

LPG for Marine Engines, The Marine Alternative Fuel Page 80

 u Answer: LPG fuel tank and gas supply system design
u FESDEC: LPG COGES ferry naval architect
u Korea LPG Industry Association: connects LPG providers with industries
u E1: LPG provider
u SK Gas: LPG provider

The increased use and future availability of LPG worldwide could make this exciting ferry project feasible. The ship is
designed to ensure both economic benefits and environmental performances, adopting LPG as the main fuel for lower
fuel costs and no emission of sulphur oxides (SOx). GE’s compact and lightweight COGES system will provide for all ship
power, including propulsion. An added benefit: the COGES system consumes almost no lube oil and meets current and
future regulations for SOx, nitrogen oxides (NOx), carbon dioxide (CO2) and particulate matter. Specifically, GE marine
gas turbines meet International Maritime Organization Tier III and United States Environmental Protection Agency Tier
4 standards now without exhaust after treatment and no methane slip.

GE marine gas turbines are fuel flexible and can operate on a variety of fuels, including LPG, marine gas oil, biodiesel, bio-
synthetic paraffinic kerosene blends and natural gas. The compact COGES arrangement — lighter and smaller than
comparable diesel engines — allows for more revenue generating space on board ships and lower lifecycle costs.
Maintenance of the COGES system requires only about 300 man-hours per year, and the entire turbine can be removed
and replaced within 24 hours, reducing downtime for minimal interruption to ship operations. GE marine gas turbines
range from 4.5 MW to 52 MW output for ship power and propulsion. These engines operate worldwide for diverse
commercial marine customers on cruise ships, fast ferries, high speed luxury yachts, floating production storage and
offloading ships and offshore platforms. In addition, over 1,400 GE marine gas turbines power nearly 500 military ships
for 35 navies globally, logging some 14 million operating hours.

3.5.4.3. Yachts

US yacht builder Trinity Yachts is part of the Gulf Coast Group, so this LNG-fuelled yacht will be marketed under their
name. The concept drawings transform the LNG
concept from a functional workboat into a stylish
explorer-style luxury yacht. It was conceived as an
ocean-going expedition yacht with five decks above the
main deck and a large, open aft deck. Space has been
included on the open deck space for the stowage of a
large tender, a helicopter pad and aft on the main
working deck an A-frame launching system for a
submersible. Its machinery will be based around a
diesel-electric propulsion system with the electric
power being generated by three generating sets
supplied by Wärtsilä. Each of these is powered by a
Wärtsilä 6L 34DF diesel that develops 2610 kW and is capable of operating on dual fuel, diesel and LNG.

In addition to being able to operate on LNG, the offshore versions building also meet the stringent criteria enabling her
to qualify for the ABS Enviro+ Green Passport notation. When operating on only LNG, this vessel meets the new Tier IV
sulphur and nitrogen oxide emissions regulations that will come into force for parts of the North American Emission
Control Area and in many European waters.

3.5.5. Offshore Service Boats

Page 81 LPG for Marine Engines, The Marine Alternative Fuel

 Harvey Energy is the first vessel in North America to be powered primarily by liquefied natural gas (LNG). The pioneering
offshore supply vessel (OSV) serves Shell in its deep-water offshore
operations in the Gulf of Mexico. The vessel is powered by three Wärtsilä
6L34DF dual-fuel gensets that provide 7.5MW of power. Fuel is supplied to
the engines through Wärtsilä's LNGPac gas storage and supply system.

3.5.5.1. Exploration and Production

3.5.5.1.1. Seismic Vessels

Seismic survey vessels have an unusually large engine room with abundant machinery for vessels of this size. The engine
compartment has the auxiliary generator, harbour generator, compressors
supplying air to the air guns or seismic source, generators for the
compressors and engines for additional propulsion. These engines are
usually of manufacturer Caterpillar or Wärtsilä. The combination of
mechanical power, delivered by an LNG internal combustion engine, and
electrical power, provided by range extenders, optimize the propulsion
efficiency for ships with a flexible power demand.

3.5.5.1.2. Drill Ships

World’s First LNG Fuelled Drillship will be built at South Korea’s Daewoo Shipbuilding & Marine Engineering under joint
development project (JDP) with ABS.

Photo by Rolls-Royce Photo by Rolls-Royce

DSME has performed a concept design, comparison between two types of LNG storage tanks and analysis of the fuel
gas supply system that will be installed on the drillship. ABS’ scope of work calls for concept design review, basic
engineering review and a risk assessment of the tank space and access area, fuel gas supply system, machinery space
and access area and associated configurations.

LPG for Marine Engines, The Marine Alternative Fuel Page 82

 3.5.5.1.3.Cable/Pipe Layers

A cable laying ship is created specifically to cater to the purpose of laying cable lines underwater. But at the same time
since cable laying work does not take place round-the-clock and
throughout the year, a cable laying ship is also additionally used as
research ship to monitor various happenings in the oceanic and sea waters.

A distinction is made between cable layers operating inside and outside

the wind parks. The latter group consist of larger vessels than the first. An
important issue is the age of cable layers. Especially the smaller cable
layers (up to 4,000 dwt) are quite old; many of these were built between
1975 and 1990 and are considered to be obsolete.

3.5.5.2. Towboats

There is an increased interest in gas fuelled Tugs and Towboats. Crowley Maritime Corporation, the Glosten Associates
and Rolls-Royce have designed a LNG-fuelled Tug,
intended for service in the port of Long Beach and in the
Port of Los Angelis (Cavalier).

Wärtsilä̈ with Ship Architects, Inc. are cooperating on a

new concept LNG towboat design. These vessels are
intended for inland waterways and river service.

Additionally, there is an extensive market for inland

waterways both for cargo and tourist service. Historically
LNG has been a forerunner in gas applications
but it is likely that the price and availability of
LPG will attract this market and that it will
develop toward using LPG as fuel.

Towboat concept design. Image credit: Ship Architects. INC.

3.5.5.3. Supply + Service Boats

3.5.5.3.1.Platform Supply Vessel

Among Swedish shipping companies, Terntank has ordered four LNG ships, using EU funding. One of the vessels will be
leased by the oil company Preem, which will enable the company to transport refinery products in a more sustainable
way. The Swedish shipping company Sirius has also ordered an LNG ship that will be operated by Skangas.

Page 83 LPG for Marine Engines, The Marine Alternative Fuel

 Rem Eir, the world’s largest LNG powered vessel has been built at Kleven Vreft shipyard and is owned by Remøy
Shipping. It
has been
Designed by
Wärtsilä Ship
Design. With a
length of
92.5m,
breadth 20m,
and a deck
capacity of 1,080 m2, Rem Eir is the world’s largest environmentally friendly LNG powered PSV. The vessel has entered
in a long-term chart with Equinor.

3.5.5.3.2.Anchor Handling Vessels

Anchor Handling Tug Supply (AHTS) vessels are mainly built to handle anchors for oil
rigs, tow them to location, anchor them up and, in a few cases, serve as an Emergency
Response and Rescue Vessel (ERRV). They are also used to transport supplies to and
from offshore drilling rigs.

Global anchor handling tug supply (AHTS) vessels market expected to record a CAGR of
more than 13% until 2022.

3.5.5.3.3.Safety Standby Vessels

This vessel is solely designed for standby operations. Its

uncompromising build and fit-out ensures that every detail
maximises its ability to facilitate these operations.

3.5.5.3.4.Installation vessels

The technology group Wärtsilä is to supply the engines and other

propulsion machinery for a new offshore construction vessel being
built at the Cosco shipyard in China. The ship owner is Belgian
operator Dredging International (DEME). This will be the first vessel
of its kind to be fuelled by liquefied natural gas (LNG) and in addition
to the dual-fuel engines, Wärtsilä will also provide its LNGPac fuel
storage and supply system and propulsion systems.

The vessel is expected to be delivered to the owners in 2018 and will undertake operations involving the installation of
offshore windfarms in locations around the world. The vessel will be deployed by DEME’s unit GeoSea for the
construction of the largest offshore wind farms, to service the oil and gas industry and for decommissioning of offshore
installations.

LPG for Marine Engines, The Marine Alternative Fuel Page 84

 3.5.6. Recreational Crafts and Other Boats

The use of LPG in recreational vessels is not uncommon although gasoline and diesel engines are the most prevalent
forms of propulsion. Some of these vessels would have inboard engines and others outboard engines. Other boats that
fall into the recreational craft category include those
involved in water sports including vessels such as
speed or power boats, and water or jet skis. These
vessels would be typically be fitted with gasoline four
stroke or two stroke engines.

These types of boats often operate in a seasonal

pattern, with frequent use in summer months and
possibly being dry docked during the winter.
Refuelling of recreational vessels is typically done at
the moorings, but as the boat might be used away
from its normal base the refuelling could be
undertaken at many different places. Recreational
vessels that are used for sporting activities are more
likely to be refuelled at one location, where they are
normally based.

In that case, outboard petrol engines were converted

to using LPG as fuel through the same technology
that is used in the car industry.

Image by X-Tech

3.5.6.1. Rib and Speed Boats

Rib boats, which are using outboard propane engines, are new in the market, nevertheless LPG-powered engines have
gained a reputation for quality products that are also good for the environment. They offer a number of advantages
over standard petrol-powered outboard engines while being priced about the same. LPG outboard engines have
become a strong marine propulsion alternative in protected lakes and rivers, as well as in fish farms. While two-stroke
gasoline engines are the predominant form of propulsion, without effective after-treatment systems the exhaust fumes
are very polluting, especially due to the unburnt fuel from the exhaust, not to mention the spillages encountered when
refuelling. These combine to have detrimental effects on the water and aquatic wildlife. Emission benefits stand as the
primary driver behind the use of LPG-fuelled engines but there are also noteworthy cost benefits.

The restrictions on the use of gasoline internal combustion engines on many protected areas leave LPG fuelled outboard
engines as the prime alternative for boat users.

LPG outboard engines offer the available power of internal combustion engines without the environmental detriment
of petrol, whilst delivering extended engine life and reduced cost of operation.

Page 85 LPG for Marine Engines, The Marine Alternative Fuel

 Even in the more modern (multi-point) injection engines, the advantages are still significant, as there is usually no
exhaust after-treatment: Emissions will be less
polluting due to heavier hydrocarbons (i. e.
polycyclic aromatics) not present in the LPG
exhaust gas. Particulate emissions that turn into
methyl mercury in the water are virtually
eliminated.

LPG is harmless for the ozone, it does not cause

"greenhouse effect" and as a gas, it does not mix
with the soil and water, therefore, does not
pollute them. LPG is more reliable for occasional
use equipment as is often the case with outboard
engines.

LPG outboards incorporate important features and advantages.

u Start easily when cold or warm without a choke.

u Eliminates problems of petrol with 10% ethanol (such as using preservative additives to prevent the normal
degradation over time).
u No mixing of oil in petrol (in two-stroke outboards).
u No sparkplug fouling or engine flooding.
u Convenience of using inexpensive (refillable) propane bottles inserted directly into outboard housing (or larger
external tank).
u No smoke, gasoline exhausts fumes, or gasoline smells.
u No need to filter fuel.
u Propane is readily available and generally cheaper than petrol.
u Fewer harmful emissions - better for the environment.

3.5.6.2. House Boats

LPG would often be the fuel of choice for cooking and space heating in house boats; supplying fuel to gas stoves and
catalytic wall mounted heaters. Another application might be LPG
refrigerators. The usage pattern for these boats range from
occasional use,
continuous use
where
houseboats are
the primary
dwelling, or
something in
between such as
hire vessels. The
amount of
energy required for these, non-engine, applications is relatively
small and a 15kg cylinder of LPG would typically last several days. These LPG cylinders would likely be stored externally,
at the aft of the vessel, where there is good ventilation rather like on a caravan.

LPG for Marine Engines, The Marine Alternative Fuel Page 86

 3.5.7. Naval Vessels

Navy vessels must be able to accelerate to top speed in a short period of time therefore flexibility and a propulsion
system’s boost ability is very critical. These ships often have limited
engine room space, but a high-power demand. The use of a hybrid
system in such cases provides the necessary surplus power needed in
the full-power mode.

Propeller noise emissions can be reduced dramatically when the

propeller is operating in hydrodynamically good conditions with no
cavitation at the propeller. As noise is a key factor in navy projects, a
well-designed propulsion system will emit lower noise levels, pre-
serving mission success with a quiet ship response.

3.5.7.1. Military

Four stroke diesel engines are designed to operate at multiple speeds and are usually connected to the propeller
through a reduction gear. This piece
of machinery takes the high-speed
revolutions that four-stroke diesel
engines are known for (can be
upwards of several thousand
revolutions per minute) and lowers
it to a usable speed for the
propeller (around 70-130
revolutions per minute). These
engines are more common on
Naval and Coast Guard vessels that operate that operate over a range of speeds. Many Naval and Coast Guard vessels
also utilize gas turbines, the same kind that power airplanes, as they can be more efficient and more powerful than
diesel engines and give those vessels the ability to travel 30 or 40 knots, or even faster.

3.5.7.2. Rescue/Patrol

Offshore patrol ships are good examples of ships with applications for the hybrid system. Patrol ships can be operated

Photos by Rolls-Royce

at low speeds by the electric motor and at a high-power demand by the main engine and the PTI booster.

Page 87 LPG for Marine Engines, The Marine Alternative Fuel

 3.5.8. Others
3.5.8.1. Dredgers

Both in building and operating dredgers, Europe is leading. The top four dredging companies, DEME, Van Oord, Jan de
Nul and Boskalis, are all located in Belgium and the
Netherlands and together cover some 80% of the
worldwide open tender market. IHC Merwede in the
Netherlands is world market leader in the construction
of sophisticated and highly specialised dredgers.

In this segment, clients are very knowledgeable of their

ships, which they usually operate during the entire
economic life of 30-35 years. New orders are often
related to specific projects for which unique
performance or other specific environmental and
technical requirements are to be met. The segment therefore delivers highly specialised and tailored products. On the
other hand, modifications of vessels need to be possible based on standard functionalities, in order to allow fleet
reallocation to different assignments.

In 2009, the Middle East, Europe and China were the largest dredging markets, representing 59% of global turnover.
Especially the Middle East was a booming region with projects like ‘Palm Island’ and ‘The World’ in Dubai. This has led
to high demand for new vessels, as well as for major investments in the renovation and upgrading of equipment.

Clients in this specific industry heavily influence the introduction of innovations. As many clients are public or semi-
public authorities, some clients demand green services and thereby trigger green innovations. Other clients focus on
cost efficiency. However, it is the ship owners that determine the kinds of innovation they are willing to implement. For
the clients that place high value on environmental performance, ship owners include environmentally friendly
technologies and innovations in their offer. For example, for the Port Authority of Melbourne it was very important to
limit the oil spillage. Boskalis offered an oil catching technology which convinced the client. This type of ‘green’
innovation referred to soil turbidity and the protection of coral reefs rather than to emissions.

LNG powered dredger

Scheldt River is a new generation “Antigoon” class dredger, being built by Royal IHC (IHC) in the Netherlands on behalf
of the Belgium based DEME Group and
will be powered by Wärtsilä Dual Fuel
Engines. Operating on LNG allows
DEME to set new standards in
minimising harmful emissions.
“Scheldt River” will easily comply with
all local and international
environmental regulations.
The scope of supply includes one 12-
cylinder and one 9-cylinder Wärtsilä
34DF engines, two Wärtsilä
controllable pitch propellers and two
transverse thrusters as well as the company’s patented LNGPac gas supply and storage system. Scheldt River will be the
first ever dredger to operate on engines capable of utilising either LNG or conventional marine fuels.

LPG for Marine Engines, The Marine Alternative Fuel Page 88

 3.5.8.2. Tugs- Work Boats

First LNG-Powered Tugs

The vessels, Borgøy and Bokn, are designed by the Norwegian tug owner Buksér og Berging AS and built by the Turkish
yard Sanmar. These are the first tugs to be fuelled by the much
more environmentally friendly LNG to eliminate sulphur emissions,
bring particulate matter emissions down close to zero and reduce
the discharge of CO2 and NOx by 26% and 80- 90%respectively.

Powering each of the new tugs is a pair of lean-burn gas engines

from Rolls-Royce Bergen, with a combined output of 3410kW at
1,000 rev/min. The engines are direct coupled to Rolls-Royce
azimuthing Z-drives mounted aft in ASD configuration.
Photo by Rolls-Royce

Niigata Power Systems Co., Ltd., (Niigata) built unit of the new dual
fuel engine 6L28AHX-DF from Keihin Dock Co., Ltd., used as the main
engine for the LNG-fuelled tugboat built by NYK Lines, which runs either
on diesel fuel or LNG. The tugboat is the first ship fuelled by LNG in Japan
other than the LNG carrier, and the order for the engine is the first gas
engine for marine application in Japan.

3.5.8.3. Ice Breakers

In order to exploit opportunities related to the development of Arctic shipping routes, ice breakers and ice strengthened
ships will be required. The overall global market potential is
estimated at some 15-20 ice breakers until 2020. In addition, a
demand for ice strengthened ships, both for freight shipping and
offshore oil and gas applications, will be created powered by clean
fuel engines.

Page 89 LPG for Marine Engines, The Marine Alternative Fuel

 3.6. Conversions and Retrofitting

Ideally, a vessel should be originally designed for the use of gaseous fuel. Retrofitting is also possible, however the
retrofitting of a vessel originally designed for
traditional marine fuels, or even LNG, needs to
take into account additional measures to cope
with the event of a leak, especially in the
engine compartment or engine room. The
location of the LPG storage tanks and fuel lines
on board would also have to be carefully
positioned for the same reasons. It is a
different matter for new builds originally
designed for LPG, where all necessary
precautions are taken in the design phase to
prevent any build-up of LPG in low areas and ensure any leaks escape safely overboard.

Example: Outboard marine engines LPG conversions

Italy-based Power Sea Saver is one company that has taken select
marinised engines and developed kits that convert those engines to
propane.

This marine engine LPG system is streamlined for out/inboard and

outboard EFI MPI 4- strokes engines and provided with composite,
translucent approved cylinders that are very light and rust free.

The conversion is in compliance to the EU Regulation 15609/2012

and utilizing exclusively ECE ONU R67/01 approved components.
Minor modifications are required, without the need to alter the
engine’s mechanical or electrical features. The system does not
interfere with the original diagnosis system and is capable of
drastically decreasing emissions and all those harmful gases
produced by gasoline combustion. The result is less carbon and
residues, less maintenance, reduced clogging and sludge build-up,
thus ensuring better spark plug performance LPG is much cleaner
than unleaded gasoline. When it comes to fuel LPG is a real money
saver savings up to 40% depending on its local price.

Note: This type conversion engine starts on petrol then switch to LPG once warm up mode is competed.
Outboard Suzuki 140 bifuel LPG

Its components are designed to resist the typical drawbacks of marine environment, such as high salt-content waters
and galvanic currents. It is composed of specifically stream elements for outboard, in/outboard and inboard engines
and with appropriate modifications (as soon as the regulation concerning fuelling at the piers are approved). As to
fuelling, marine and car engines differ from one another in that the LPG flow in a boat engine occurs at a fairly significant
and continuous rate. For example, mounted with a 140 HP outboard engine running at a speed of 22 knots (40 km/h)
consumes about 0.3-0.5 litres of fuel per minute, whereas, a boat mounted with a 250 HP outboard engine consumes
about 0.4-0.7 litres of fuel per minute. Therefore, a few adaptations are required to ensure continuous vaporisation in
an engine with an open loop cooling system.

LPG for Marine Engines, The Marine Alternative Fuel Page 90

 3.7. LPG vs LNG

LNG and LPG are alternative fuels currently available than can be used to reduce environmental footprint. A move from
traditional fuels to these gaseous fuels, is always based on some key considerations as:

u Compliance with environmental regulations and primarily SOx compliance for large shipping.
u Availability of the fuel.
u Cost considerations, cost effectiveness, upfront costs and running costs comparatively.
u Technology available (known and proven technology), availability of engines for these fuels.

Other key criteria are the routes the vessel operates, the autonomy it needs, idle time, availability, infrastructure, price,
etc. Rules and regulations in the ports of operation are also key parameters.

Despite high start-up investment, with LPG-fuelled vessels (as with LNG) cash flow is positive from the start

u LPG compared to LNG has the advantage of lower implementation and equipment costs and significantly larger
available infrastructure of less-costly terminals, storage and supply points, which is particularly important for
bunkering operations.
u LPG has also a significant potential in certain sectors including small tankers, container vessels and ro-ro ships that
operate in coastal areas and on inland waterways where LPG supply infrastructure is always in proximity. LPG is a
well-established fuel that enjoys a mature, global supply network.

Gas carriers of LNG will always have additional advantages by using LNG as a fuel, whereas the same will be also for LPG
carriers that can easily use LPG as a fuel.

Sustainability and cost of alternative fuels

Alternative fuels - parameters
Well-to-Propeller GHG Emissions relative to LS diesel
Fuel type LNG Ethane Methanol LPG

Heat capacity 49200 kJ/kg 47500 kJ/kg 20000 kJ/kg 46000 kJ/kg

Specific Gravity 0.42 0.55 0.80 0.58

Volume factor 1.83 1.47 2.40 1.44

(ref. MDO)

FGSS cost 2.5 mill.USD 2.8 mill.USD 0.41 mill.USD 0.90 mill.USD
15 MW
Availability + - + +++

Engine price +20 % + 20% +30% +30%

Fuel Price ++ +++ + ++

(ref. MGO)

Ungraded
Source: MAN GHGs - Greenhouse gases : CO2, CH4, and N2O
DNV GL © 31 October 2016 Source: DNV R&I
49 Ungraded

DNV GL © 31 October 2016

47

Page 91 LPG for Marine Engines, The Marine Alternative Fuel

 © 2018 MITSUBISHI SHIPBUILDING CO, LTD. All Rights Reserved.

LPG for Marine Engines, The Marine Alternative Fuel Page 92

 General Assumptions - CAPEX

SOX EGCS (Scrubbers) LNG as Fuel LPG as Fuel

- Installation costs:
- 100 to 140% of CAPEX
- Design and Class costs:
- $125,000 Open Loop, $150,000 Hybrid

14 | Global Sulphur Cap 2020 – Effective Strategy and Market Trends

Page 93 LPG for Marine Engines, The Marine Alternative Fuel

 General Assumptions - OPEX

• System Life expectancy of system 15 years

• Initial Fuel Cost 2020 (2.4% annual increase):
- HFO: $320/mt, LSFO: $490/mt, MGO: $540/mt.
- Scrubber OPEX

• Additional 1% M/E Fuel consumption due to increased back pressure

• 1 to 1.3t/day extra consumption due to the additional electrical load
• Caustic Soda Cost: $250 per ton and $2,500 per bunkering
• Maintenance: 2% of CAPEX per year for open loop and 3% for Hybrid LNG as fuel:$365/mt equivalent to 1 mt MGO
©$Gonzalo$Jara$/$ShuGerstock.com$
• Service Engineer and Crew training: $15,000 per year $

• Cost of cargo lost due to system weight:

- Tanker: 46U.S.$/t approx. 650 U.S.$/year
- Bulk Carrier: 32U.S.$/t approx. 450 U.S.$/year
- Gas Carrier: 135U.S.$/t approx. 1,750 U.S.$/year

• Extra 4.1 t of CO2 emitted per day (assuming a CO2 Tax 10 U.S.$/tonne CO2)
- Tanker: 9,700 U.S.$/year
- Bulk Carrier: 11,100 U.S.$/year LPG as fuel: 440 $/mt equivalent to 1 mt MGO
- Gas Carrier: 8,600 U.S.$/year (based on 3.1t of CO2 emitted per day) - M/E consumption 10% lower

15 | Global Sulphur Cap 2020 – Effective Strategy and Market Trends

LNG and LPG as Fuel Results

LNG Results for the Vessels: LPG Results for the Vessels:
• Discounted Payback Period: • Discounted Payback Period:

• Life Cycle Cost Analysis indexes : • Life Cycle Cost Analysis Indexes:

18 | Global Sulphur Cap 2020 – Effective Strategy and Market Trends

LPG for Marine Engines, The Marine Alternative Fuel Page 94

 Study on Costs and Benefits of Alternative Fuels for an LR1 Product Tanker

Joint Study from a DNV GL and MAN Diesel & Turbo

The goal of this study was to analyse costs and benefits of

various fuel options for a case with one particular ship and its
operating pattern. The alternative fuels selected were LNG,
LPG, methanol and a new ultra-low-sulphur fuel oil, a so-called
hybrid fuel. Costs and benefits for a new build were determined
by looking at its additional investment and operating costs
compared to a standard fuel variant using HFO and MGO. An
LR1 product tanker on a fixed route was selected to perform a
financial analysis. For the various fuels, the machinery setup
was the same, except for the fuel system. Product tanker is a
market segment where DNV-GL expects an annual growth to 2020 in tonnage demand of 3 to 3.5%. The general
arrangement of the selected ship is shown in table 1.

Operating pattern
The ship is assumed to operate on a route between Northern America and Northern Europe: Houston-Rotterdam-
Ventspils-Houston. From the total distance of about 11,700 nautical
miles, approximately 37% is inside a SECA.

The typical speed for similar sized product tankers on similar trades
was deter- mined from AIS data to be about 12.5 knots, and this speed
was then used as fixed transit speed of the ship. With 360 operating
days, a year this corresponds to about eight roundtrips per year with
87% of the time spend in transit, 3% in approach and 10% in port. The
selected route is shown in Fig. 2. Typical cargoes from Europe could
be light diesel and returning from North America heavier distillates,
e.g. marine gas oil.

Fuel variants
The main idea of the study was to investigate different fuel options for the selected product tanker on the selected
route. The reference fuel case consists of HFO outside of SECA and MGO inside. In this study, the reduction in global
sulphur cap has been assumed to be enforced from 2020, and hence LSFO with 0.5% S is the reference fuel outside of
SECA from 2020.

Table 2 shows the fuel variants considered in

this study. For the alternative fuels
considered (LNG, LPG, and methanol), one
variant includes use of the alternative fuel for
the entire round trip one-fuel variant, e.g.
denoted “LNG”), while a second variant
assumes use of the alternative fuel in the
SECAs only and HFO/LSFO outside (mixed fuel
variant, e.g. denoted “LNG/HFO”).

Page 95 LPG for Marine Engines, The Marine Alternative Fuel

 Renewable diesel (also called hydrogenated vegetable oil) was also considered in the beginning of the study. It is a high-
quality biofuel produced from vegetable oil and animal fat, but the current price of about 1000 €/tonne renders it
uncompetitive in this study.

LNG and LPG can reduce the carbon footprint by up to 20%, depending on how the fuel is produced. Methanol offers
future potential reductions by production from renewable sources, possibly at a lower cost premium than LNG and LPG.

The additional investment costs relative to the reference scenario for tanks, piping and engine modification were
considered in the financial analyses, see Fig. 3. It has been assumed that tanks are placed on deck thereby not reducing
the cargo capacity and, thus, earnings. Measures needed to reduce NOx emission to IMO Tier III levels were, for
simplicity, assumed to be at a similar overall cost for all the fuel variants and, hence, neglected from the study. The
investment year was set to be 2017 with operations between 2018 and 2030.

Machinery
An MAN B&W 6G60ME-C9.5 was selected as the main engine. This provides the ship with a design speed of 15 knots at
90% engine load, including a 15% sea margin. The calculated power for propulsion to reach 12.5 knots is 5.3 MW.
Specific fuel oil consumptions for this engine for each fuel at various engine loads were used in the calculations, and the
efficiency is shown in Fig. 4. The 6G60ME-C9.5 engine is available as a standard oil fuelled diesel engine, but also in dual
fuel versions capable of burning LNG, methanol or LPG (the ME-GI and ME- LGI types, respectively).

The propulsion system is equipped with a fixed-ratio power take off (PTO). The capacity of the PTO is 778 kW offering a
simple and cost-effective way to supply all the electric power from an alternative fuel when the ship is in transit. Apart
from the reduced investment in equipping auxiliary engines for alternative fuel operation, the PTO also minimises the
maintenance cost on the generation sets. In approach and
port, auxiliary engines running on MGO are used, as
illustrated in Fig. 5. For more information about different
PTO configurations, see MDT paper No. 5510-003-02, shaft
generators for low-speed main engines.

The main engine is for the three alternative fuel options

equipped with a second fuel system enabling the engine to
work as a dual fuel engine. This engine con- figuration offers
full fuel flexibility with the same available power in both
fuel oil and second fuel mode. Fuel oil mode (or MGO mode
in SECAs) acts as fall-back mode in case of unintended

LPG for Marine Engines, The Marine Alternative Fuel Page 96

 interruption of the second fuel mode. For this reason, the original fuel oil tank capacity is kept unchanged in this study.

The tank size for the alternative fuels was selected to give the vessel half-round-trip endurance with a 20% margin. This
limits the investment costs, but increases the exposure to volatile fuel prices. For LPG and LNG, the tanks are placed on
deck, and for methanol in the double-bottom of the ship. In all cases the cargo capacity of the case ship is left unchanged,
and it has been assumed that there is no significant change in the draught of the vessel for any mass change of the ship
related to use of the alternative fuels.

Fuel price scenarios

The fuel price scenario is important for the financial viability of the various fuel options. Historic fuel prices are shown
in Fig. 6 for the last five years. Apart from the variations expected for each fuel type, the relative position of the fuel
prices has changed over the period. MGO has become less ex- pensive than methanol, and LNG has become equally
expensive as LPG. In addition, the price difference between HFO and LNG has decreased recently.

Two price scenarios were developed:

1. High-price scenario based on mid- 2014 fuel prices at a time when Brent oil was at 100-110 $/barrel.
2. Low-price scenario based on mid- 2015 fuel prices when Brent oil prices were about 50 $/barrel.

For each scenario, an annual increase in fuel prices of 1% has been assumed, due to expected increase in oil and gas
production costs.

The LNG distribution costs are estimated to 100 $/t, or about 2 $/mm
btu, based on basis of the cost of operating an LNG bunkering barge.
These costs are assumed to stay constant over time. Similarly, the
distribution costs of LPG are considered to be half the distribution
costs of LNG, i.e. 50 $/t.

The two price scenarios are illustrated in Fig. 7 based on the historic prices shown in Fig. 6. For the purpose of the
analysis, we have differentiated between the prices in USA and Europe. For methanol and HFO, the prices are the same
at the exchange rates. For LPG and LNG, the prices are cheaper n USA, whereas for MGO the prices have been

Page 97 LPG for Marine Engines, The Marine Alternative Fuel

 considered lower in Europe. It should be noted that the price of the reference fuel outside SECAs is changing in 2020,
from HFO to LSFO.

Results
For each fuel variant, the investment cost difference and the annual cost differences have been determined, see Fig. 8.
The diagrams show cost difference (either advantage or disadvantage) for the various fuels against the reference variant
for both fuel price scenarios.

In the high-price scenario, both in the one-fuel variants and mixed fuel variants, LNG and LPG deliver a cost advantage
in operation when compared to the reference. However, these alternatives call for substantial investments. A large part
of this, in particular for LNG, is related to investments for the tanks.

For the one-fuel variants, the cost ad-vantage improves significantly after the global 0.5% sulphur cap enters into force.
However, for the mixed-fuel variant, where the alternative fuel is only used in the SECA, the annual cost difference does
not change by the global sulphur cap, because both the reference case and the project case change in the same way
(from HFO to LSFO) outside SECA. However, since the fuel price is lower for LNG and LPG than for LSFO, the one-fuel
variant becomes financially more attractive after the global sulphur cap.

LNG and LPG are both less attractive in the low-price scenarios. The cost difference for LPG stays positive for all
operational years, whereas LNG is estimated to be negative before the global sulphur cap and positive after.

Methanol does not give a positive cost difference compared to the reference case for any of the price scenarios, and
hence the investment needed for engine upgrade, gas supply system and tanks is not paid back.

Methanol becomes financially attractive if the methanol price drops, while the other fuel prices remain constant. If the
methanol price drops to 18-20% below the MGO price, the high-price scenario will have a payback time similar to that
of LNG and LPG. For the low-price scenario, the methanol price needs to drop even more. Such lower prices for methanol
are more likely to become a reality if a lower grade fuel methanol is introduced on the fuel market.

Another option is to use ULSFO (hybrid fuel) for the entire round trip. The benefit of this is to avoid the compatibility
issues related to fuel changes between hybrids fuel and HFO when entering/ leaving SECAs. Nevertheless, even after
the global sulphur cap, the annual fuel costs for this scenario are at the same level and, therefore, not better from a
financial point of view than the reference option.

LPG for Marine Engines, The Marine Alternative Fuel Page 98

 In the high-price scenario, both LNG and LPG have payback periods in the 5-10 years range. As expected, the payback
time decreases at higher vessel speeds since the investment costs are the same and the cost difference for each year of
operation becomes more favourable by a higher fuel consumption, the effect is shown in Fig. 9. At 15 knots, the payback
times are less than five years for all four variants.

The payback times are shorter for the one-fuel variants than for the mixed-fuel variants. As a result, the increased initial
investments are more than compensated for by the lower prices for LNG and LPG compared to LSFO in the high-price
scenario.

One-fuel variants show that LNG and LPG look attractive. Thanks to the lower added investment for LPG capable
installations, LPG offers shorter payback periods, see Figs. 4 and 9.

In the low-price scenario, the payback time for LNG is more than the 13 years considered in this study, whereas LPG has
a payback time of approximately 6.5 years. Payback times for LPG in both price scenarios are shown in Fig. 10. Based on
the fuel price scenarios presented in this work, LPG can be understood as at least as good as LNG based on a shorter
payback time, less sensitivity to reasonable price variations and less initial investments.

Sensitivity of fuel prices, LNG tank investment and bunkering choice

Fuel prices with their intrinsic uncertainty are critical for the outcome of the financial analysis. In addition, LSFO is not
a common fuel today, and it is neither clear which refinery streams will be used to produce the LSFO, nor what the price
level would be. A study carried out by Purvin & Gertz assumed that LSFO would be based on desulphurised atmospheric
residue, and that the price would be 120-170 $/t higher than HFO. In order to take the uncertainty into account, a
sensitivity analysis between LSFO and the alternative as shown in Fig. 11, LPG requires a smaller discount than LNG to
be financially attractive. This is due to a lower investment. Even though the expected discount is less for LPG than LNG,

Page 99 LPG for Marine Engines, The Marine Alternative Fuel

 the payback time is shorter. Nevertheless, with reasonable prices for LNG and LPG in the high-price scenario, the
additional investment required due to the alternative fuel is paid back within the project period of 13 years.

If 0.5% LSFO is based on a distillate, MGO prices will likely increase at the beginning of the global sulphur cap. This is not
included in our study, but since such increases would make the alternative fuel look better, our estimated payback times
are considered conservative in this case.

The outcome of the financial assessment is also strongly dependent on the tank cost in the case of LNG. This tendency
is shown in Fig. 12. For example, if the LNG tank investment was to be reduced to below 2000 $/m3, including the
foundation, the LNG-based variant would have about a year shorter pay- back time and be closer to the payback time
of LPG, compared with Fig. 9.

In this study, a tank capacity for half a roundtrip was assumed, which means that the vessel would need to bunker in
Houston and in Rotterdam. However, there is a fuel price
difference between the ports. Therefore, the scenario was also
checked for bunkering LNG and LPG only in the cheapest location
on the round trip, i.e. Houston. When LNG is used for the full round
trip, the payback time increased from 76 to 97 months by reduction
of bunkering to one location. Hence, the additional investment
cost in a larger tank capacity is not returned by the lowered fuel
price. However, for LPG the payback time is reduced from 57 to 51
months by installing the tank capacity necessary for a full round
trip. The main reason for the difference is the high tank price for
LNG compared to LPG

Conclusions

The interest in using alternative fuels is growing, and the first ships with dual fuel two-stroke propulsion engines have
now entered service.

The fuel alternatives LNG, LPG, methanol and ULSFO have been compared to a reference case using traditional fuels
(MGO/LSFO) as a means of sulphur compliance for a typical LR1 tanker trading between Europe and Northern America.
The comparisons were made with two different scenarios of fuel prices. Generally, the scenario with the highest
absolute fuel prices resulted in the highest price difference between traditional and alternative fuels. As a consequence,
the high-price scenario resulted in the highest annual cost difference for the alternatives as well as the shortest payback
times.

With the two price scenarios used in this study, methanol and ULSFO did not show a financial feasibility. LNG and LPG
are both financially interesting alternative fuels, and LPG was found to be at least as good as LNG. For these best fuels,
the best alternative is to use it both inside and outside SECA regions. For LPG, it is recommended to consider full round-
trip endurance for the tank system.

LPG for Marine Engines, The Marine Alternative Fuel Page 100
 3.8. Bunkering Methods

LPG bunkering can, in principle, take place in a number of ways, from terminals or trucks on shore or from bunkering
vessels. Bunker deliveries from terminals to LPG-carrying ships are today handled safely with specialised training, and
safety may be improved by using a bunkering ship as an intermediary between the terminal and the ship using LPG as
fuel. Certainly, for deep sea shipping with significant amounts of fuel to be bunkered, a bunker vessel would be the
preferred solution.

There are different possible combinations of bunkering vessels with pressurised tanks, semi-refrigerated tanks or fully
refrigerated tanks, and similar arrangements in the ship to be bunkered.

Four cases illustrate some key bunkering challenges:

u In the case of pressurised tanks both in the bunkering ship and the ship to be bunkered, the LPG is transferred
using a general transfer pump located in the bunkering ship. When filling the LPG tank, pressure will build up
because of less gas volume available, and since it takes time to condense LPG, this can increase fuelling time. For
practical purposes and to comply with safety regulations, the LPG tank must be equipped with a vapour return
system back to the bunkering vessel, i.e. a gas outlet connection in addition to the liquid inlet connection. This
case represents the most common and cost-effective LPG bunkering option.

u In the case of semi-refrigerated tanks in the bunkering vessel and a pressurised tank in the ship to be bunkered,
it is necessary to have a heater and a booster pump in the bunkering ship and a vapour return system in the ship
to be bunkered. The heater is needed because the fuel has a lower temperature than the tank design temperature,
and this will typically be handled by a heat exchange system using heat from seawater. The LPG filled will have a
lower than ambient temperature, but needs to be above the tank design temperature. The booster pump is
needed to raise the pressure of the LPG before bunkering. Both the heater and booster pump are typically installed
on semi- refrigerated LPG carriers, that may be used as bunkering ships. The vapour return from the ship to be
bunkered may have too high a pressure for the semi-refrigerated tank, and must be handled by the re-liquefaction
plant in the bunkering vessel, which may require some modifications. An alternative to vapour return in this case
is to fill the cold LPG with a spray-line to condense the LPG vapour.

u In the uncommon case of pressurised tanks in the bunkering vessel and a semi-refrigerated tank in the ship to be
bunkered, the pressure needs to be reduced by lowering the temperature in a liquefaction plant. An LPG carrier
with pressurized tanks is typically not equipped with this, thus requiring comprehensive modifications of the
equipment and cargo handling system. This case also requires a vapour return system with a compressor in the
bunkering ship that needs to be set up to increase the pressure of the vapour return. LPG carriers with pressurised
tanks are typically equipped with a compressor, but only for the purpose of emptying the cargo tanks.

u In the case of semi-refrigerated tanks both in the bunkering vessel and the ship to be bunkered, cooling (and
probably not heating) may be necessary. A vapour return system and some modifications of the re-liquefaction
plant in the bunkering vessel to ensure a higher capacity may also be necessary.

Based on the cases discussed above, a pressurised LPG fuel tank is the preferred solution when bunkering the ship,
because the ship can be bunkered by a bunkering vessel based on an LPG carrier (either with pressurised tanks or
semi-refrigerated tanks) without major modifications. Both types of bunkering vessels are possible, depending on the
size of the fuel tanks to be bunkered and the number of ships to be served. Semi-refrigerated LPG carriers typically have
larger capacity than pressurised LPG carriers and sufficient capacity for all ship types. They are also more flexible, e.g.
in terms of filling ships with semi-refrigerated fuel tanks, and have a limited cost premium.

A key requirement for ocean carriers to adopt LPG as an engine fuel is the availability of LPG bunkering facilities.

Page 101 LPG for Marine Engines, The Marine Alternative Fuel
 specific circumstances, LPG bunkering could require transporting LPG to a port from an offsite facility for temporary
storage at the port, or building an LPG terminal on site. Alternatively, LPG could be delivered from offsite facilities
directly to ships in port via road tanker or supply ship. There are three types of bunkering models:

u Truck (Road Tanker) to LPG Fuelled Ship (RTS)

u Shore (LPG Terminal) to LPG Fuelled Ship (PTS)
LPG
u bunkering
Ship to LPGrequires
Fuelledspecialised
Ship (STS) infrastructure for supply, storage, and fuel delivery to ships. Depending upon the
specific circumstances, LPG bunkering could require transporting LPG to a port from an offsite facility for temporary
storageNew sea-going
the port, bunker bargesan need to be developed. A sea going bunker bargebe needs a seaworthy hull and a large
Each LPGatbunkering or building aLPG terminal
meanson tosite.
beginAlternatively, LPGservice
could in a delivered
given port.from offsite facilities
u
option may be viable LPG bunkering However, ports may
bunker
directly beam.
to ships These adjustments
in port viaasroad tanker orwill make the
supply ship. bunker
There barge more expensive to build than a normal bunker barge.
face practical constraints bunkering increases in scale. Forare three types
example, of bunkering
a container port ofmodels:
significant size typically has
The development will also cost money.
multiple terminals, it may need additional infrastructure or supply vessels for moving LPG to other port locations where
u Truck (Road Tanker) to LPG Fuelled Ship (RTS).
a cargo ship might be berthed. There may also be port capacity and timing constraints upon the movement of LPG
The Shore (LPGgoverning
provisions Terminal) to LPG Fuelled Ship (PTS).and equipment of LPG bunker ships are the same of those for LPG
barges trying tothe design, construction
u
bunkering refuel multiple large vessels in various locations around a crowded port. To date, the LPG
Shipand
carriers to LPG
are Fuelled
laid down Ship
in (STS).
the International Gascomparatively
Carrier (IGC) Code.
small, However, designing a could
bunker ship is athat much
u
bunkering operations already in development are but scale constraints become factor as
more daunting due to the range of fuelling operations and scenarios
LPG bunkering grows and might require additional bunkering-related port investments. that they must accommodate.
The construction of LPG bunkering hubs is currently under development. The transport and handling of LPG as cargo on
land and sea have
Unfortunately,
The construction
been
theof proven
criteria givenfor
LPG bunkering formany
hubs
years.
a static, shore-based
is currently under facility would beThe
development. inadequate
transport forand
a ship-mounted
handling of LPG version where
as cargo on
the bunker vessel and the ship being
land and sea have been proven for many years. fuelled are on the open sea and the vagaries of wind, tide and current conditions.
The choice of bunkering options will depend on the regulatory framework, local conditions, cost and operational
considerations.
Risk The type of vessel the size of be
thecarried
on-boardoutfuel tank willa to a great extentofinfluence the bunkering
The assessments and
choice of bunkering simulations mustdepend
options will also on the regulatory to achieve
framework, true evaluation
local conditions, the bunker
cost ship’s safe
and operational
operating window. method and the required transfer
considerations. The type of vessel and
rate. Typically, based on the LPG tank
the size of the on-board fuel tank will to
Vessel Type LPG Tank Size (m3) Bunkering Method size the table summarises the
On top of these considerations, the flag administration may stipulate that athe bunker
great extentvessel complies
influence with the
the bunkering
preferred or practical bunkering
International
Workboat, Tug Code of Safety for Ships
ITB>100 using Gases or other Low-Flashpoint
RTS, Container Fuels (IGF
method Code) for
and those
the parts
required that interface
transfer rate.
methods.
with the LPG-powered ship. Typically, based on the LPG tank size
Ferries 100-200 RTS and vessel type, the table summarises
RTS is often the early phase adoption
New era the
and likely
for shipspreferred
with or smallpractical
tank
OSV >300 TPS, TTS bunkering methods.
capacities such as ferries, tugs and
A new
ShipsLPG bunker-ship era 500-10,000+
is dawning thanks to the growing STS interest of clean-burning
coastalLPG as marine
ships. The mostfuel, efficient
particularlyis
in emission-control areas (ECAs). On top of this, a plethora of LPG ship and barge designs have
considered to be STS. been tabled over the
RTS isyears.
past often the early phase adoption and for ships with small tank capacities such as ferries, tugs and coastal ships. The
mosttransfers
STS efficientfrom
is considered
LPG bunker to bevessels
STS. offer important advantages in terms of the ability to handle large volumes
quickly, at a variety
STS transfers of locations.
from LPG bunker vessels offer important advantages in terms of the ability to handle large volumes
G AS C
3.3.1.
quickly, Truck
atARRIER(Road
a variety F Tanker)
ofLEET Oto
locations. LPG Fuelled Ship (RTS)
VERVIEW

Road Tanker to Ship Transfer (RTS) bunkering is best suited for supporting smaller and mid-sized vessels, such as ferries
or offshore supply vessels (OSVs) that support offshore oil platforms.

Facilities built on site can provide the greatest capacity of any LPG bunkering option, for example, to provide fuel for
284 37 13%
large vessels in transoceanic trade. However, constructing small- scale facilities to store and deliver LPG on site requires
considerable planning and small capital investment, in one case on the order of $7 million for a mid-sized port.
12 - -
This is about supplying LPG from a LPG road tanker parked on a quay to an LPG fuelled ship moored on a quay. Road
Tanker to Ship, (RTS) LPG bunkering, in particular, provides some fuelling capabilities
Fully-Refrigerated 95 without minimal
6 upfront6%
capital
Ethylene / Ethane 14 - -

Page 21 Fully-Refrigerated 26 -
LPG Bunkering
-
Semi-Refrigerated 64 - -
Ethylene 25 8 32%

Semi-Refrigerated /
332 16 5%
Pressure

Semi-Refrigerated /
Pressure 633 6 1%

Source: Clarksons, 2018

Source Epic Gas and IHS Markit 8

LPG for Marine Engines, The Marine Alternative Fuel Page 102
LPG Bunkering Page 24
 3.9. Main Players

The shipbuilding industry is embedded in a value chain consisting of designers, equipment manufacturers, yards, ship
owners, operators and their clients, as well as supporting parties like classification societies and research institutes.

Each party has its specific role to play when it comes to developing new (green) ships. In some ship segments, owners
or operators are having a strong say, while in others yards and equipment manufacturers appear to dominate.

European shipyards’ competitive position vis-à-vis other world players can be characterised as a niche player active in
high quality, high value segments. At the same time, European marine equipment manufacturers have succeeded to
retain a strong position supplying not only European but also Asian shipyards.

Marine gas engines, gas burning or dual-fuel marine engines in both low- and medium-speed configurations are
1. Introduction
available from engine manufactures such as Wärtsilä,̈ MAN B&W, and Rolls Royce (Bergen Engines).

Three brands have dominated the large two-stroke sector for mainThis report MAN
engines, has been prepared
Diesel usingMitsubishi
& Turbo, data from theandimplementation
and verification
Wärtsilä but the latter has now transferred its business to a new company, Winterthur ofGas
CO2&emissions from maritime
Diesel (WGD), initially astransport. All in
Data provided or updated after this date is
a joint venture with China State Shipbuilding Corporation before disposing of all its stake to its partner. Within thenot two-
reflected in this rep
stroke sector MAN has a dominant market share and four out of five engines supplied in this sector today are MAN
1.1 Shipping air emissions
Diesels. Mitsubishi is considered as the smallest in terms of market share of the three companies.
This section briefly introduces the main types of If t
Although both MAN and WGD can build these large engines, the number of engines
emissions to airbuilt by licensees
produced in China,
by maritime Korea It
transport. sixt
begins with
and Japan is much larger than that by licensors with Hyundai Heavy Industries CO2 the
claiming emissions, whichWith
lion’s share. is support
the main
Acc
greenhouse
from its Chinese parent, WGD has ambitions to significantly improve its market sharegas in
produced by ships and the focus of
the future.
Org
this report.
emi
3.10. Regulatory Framework It then introduces nitrogen oxides (NOx), and sulphur 250
oxides (SOx), that are important pollutants. fou
International maritime transport is the backbone of the global economy. However, vessels release emissions that eco
Figure 1: Shipping air emissions
pollute the air and contribute significantly to global warming. As incr
shipping is forecast to grow, reducing these emissions is urgent, in the
order not to undermine emissions-reducing efforts in other areas, to a g
keep humans healthy, preserve the environment and limit climate with
change. Although international shipping was not explicitly emi
mentioned in the 2015 Paris Climate Agreement, efforts to make ship
shipping cleaner and greener have since progressed. International The
rules to imp
reduce air- from
polluting rep
emissions emi
from ships
have been Fi
Significant and growing CO2 emissions
agreed in the International Maritime Organization (IMO).
CO2 contributes to global warming by trapping heat
The IMO is theinspecialised
the atmosphere, and negatively
agency acting affects
on behalf of marine
the United
ecosystems by increasing the acidity of seawater.
Nations (UN). IMO has the responsibility for international
improvement Currently,
of maritimeCO2pollution
emissionsand safety
from standards.
international The
shipping
original guidelines for regulations to limit airborne emissions from international shipping resulted from the entry
amount to around 800 million tonnes of CO2 per into
force of the Annex VI of the International Convention for the Prevention of2Pollution
year , making from
the Ships (MARPOL)
shipping sector inaMay 2005,
substantial
MARPOL was adopted in its first state in 1973 by the IMO. As of 2010, the IMO tightened regulations on air pollution
contributor to climate change. These CO2 emissions
represent approximately 2-3% of total global CO2
emissions and around 97% of all GHG emissions
Page 103 LPG from
coming for Marine Engines,
international The Marine Alternative Fuel
shipping.
S
 (also termed 'local pollution') from ships with the revised International Convention for the Prevention of Pollution from
Ships (MARPOL, Annex VI), aimed at a progressive global reduction in emissions of sulphur, nitrogen and particular
matter (PM). It also introduced special emission control areas (ECAs) with strict emissions limits for those pollutants.
Two ECAs were established in European waters, covering the Baltic Sea and the North Sea.

Reduction of sulphur oxides (SOx) emissions is achieved by limiting sulphur content in marine fuels. The revised MARPOL
planned for a reduction in the limit for SOx and PM in ECAs to 0.1 % from 1st January 2015. In areas outside the ECAs,
the sulphur limit was to be lowered from the previous 3.5 % to 0.5 %. Once the availability of compliant fuels was
confirmed in 2016, the IMO announced a global 'sulphur cap' of 0.5 % in all waters, apart from ECAs, from 1 January
2020. Later, it banned even the carriage of non-compliant fuels on board for ships without an exhaust cleaning system
('scrubber', see box on p.4), from 1st March 2020.

The IMO also introduced progressive reductions of nitrogen oxides (NOx), by setting increasingly stringent limits for
marine diesel engines on new-built ships, structured in three levels ('tiers'). The currently strictest 'Tier III' applies to
engines installed on ships constructed in 2016 or later, operating in ECAs controlling NOx. From January 2021, all ships
in these areas must use the mandatory engine standards or equivalent NOx emission reduction technologies to respect
the NOx emission levels. In 2016, the IMO added the Baltic Sea and the North Sea to the existing NOx Emission Control
Areas.

In 2016, the IMO adopted a mandatory fuel data collection system ('IMO DCS') and, after mounting international
pressure, an initial strategy on the reduction of GHG emissions from ships in 2018. The strategy aims to cut shipping
emissions by at least 50 % by 2050, compared to 2008 levels, before phasing them out entirely. In parallel, the average
carbon intensity (CO2 per tonne-mile) should be reduced by at least 40 % by 2030 and by 70 % in 2050. To be reviewed
in 2023, the strategy outlines candidate short, medium and long-term reduction measures, to be agreed by the IMO
Marine Environment Protection Committee (MEPC). The short-term measures should achieve a peak in emissions as
soon as possible and set them on a descending path. Clearly, measures to reduce air polluting emissions should not
undermine efforts to reduce GHG emissions, and vice versa.

In addition to existing policies, there is potential for much greater climate mitigation from new IMO policies that
promote efficient shipping technologies and practices. Additional policy progress to improve shipping technology
beyond the current EEDI requirements and extend leading operational practices to the full fleet could stabilize shipping
emissions at 2010 levels despite a significant increase in the demand for global goods transport. Such policies could
reduce 0.4 GtCO2, or 2.1 mbd, in 2030, equivalent to a 30% reduction in global shipping emissions.

3.10.1. Regulatory Framework in Recreational Craft Sector

Importance of EU-US standards, based on new technologies

There is a need to update and for further development of standards for boating, especially the EU. This is an ongoing,
long and delicate process, but it is valuable to bringing together elements of the European (EN) and (US) system. Indeed,
mutual recognition of base of acceptance of international standards (ISO) could be helpful, whereas mutual recognition
of recreational craft's legislation could be detrimental for the EU as has not updated standards to include new
developments in LPG marine outboard applications. The level playing field is different in the EU and the US.

Innovation
EU legislation has two effects; on the one hand strict environmental standards is a driving force to invest in cleaner
engines. Europe’s standards also help to protect water, which (in lakes and rivers water, keep oceans clean) compared
to the rest of the world are stricter in most cases.

LPG for Marine Engines, The Marine Alternative Fuel Page 104
 EU regulation

Small and medium enterprises have complained that EU norms stemming from the directives are only available in
French, German and English. This means that many small companies with only a few boat builders from other EU
member states may not always have the necessary language skills to understand specific EU norms and regulation.

Shipping – A Key European Industry

u International shipping is an essential part of European transport. It carries 75% of external EU trade, and 36% of
intra-EU trade.
u Shipping is an essential link in the global supply chain, and a key part of the EU economy. It is also one of the most
energy-efficient modes of transport available.
u The EU shipping industry directly employs around 640,000 people and up to 2.1 million when including the whole
supply chain. The industry contributed nearly EUR 54 billion to the EU GDP in 2018.
u More than 400 million passengers embark or disembark each year at EU ports. Shipping contributes to coastal
economies, and help bring Europeans closer together.
u The European maritime technology sector produces around half of the world’s marine equipment each year. The
EU remains a global leader in the construction of sophisticated, higher added value-vessels.

CO2 emissions per ship type

u Ship types emitting the most CO2 emissions are equally the biggest consumers of fuel.
u Container ships represented the largest share of total emissions in 2018, with over 30%. In
absolute terms, these ships reported more than 44 million tonnes of CO2, which is comparable to the CO2
emissions of Ireland or Sweden. This pollution originated from only 1,742 ships that together reported over 5
million hours of time spent at sea.
u Bulk carriers that represent 37% of the monitored fleet (in cargo carrying capacity) emitted approximately 13% of
all reported CO2 emissions (17.5 million tonnes).

Total CO2 emissions from different ship types and number of ships

u Taken together, the CO2 emissions from oil tankers and chemical tankers amount to around 20% of all CO2
emissions, whereas they transport more than a third of the cargo handled in the main EU ports.
u Ro-ro and ro-pax (roll-on/roll-off passenger) reported around 20 million tonnes of CO2. These emissions are
primarily related to domestic or intra-EU ferry services concentrated in the Baltics, the North Sea and the
Mediterranean. It is estimated that over 415 million passengers embark and disembark in EU ports every year.

CO2 emissions per ship age

u About 74% of total CO2 emissions are produced by vessels built before 2013. Out of the entire monitored fleet,
8,840 ships fall into this category. Older vessels have the highest average level of CO2 emissions per vessel, while
younger ships constructed after 2013 emit less on average.

Page 105 LPG for Marine Engines, The Marine Alternative Fuel
 3.10.2. Regulatory Framework in Commercial Shipping Sector

With the current global trend towards a reduction of air emissions from all sectors, the shipping industry is experiencing
increased pressure from stakeholders in general, and regulators in particular, to tackle its emissions and improve its
energy efficiency. Emissions from shipping currently represent 3% of the world’s total greenhouse gas (GHG) emissions,
and the industry’s share is increasing. A continued increase in international marine transport without any significant
gains in energy efficiency may result in shipping being responsible for 6% of the world’s GHG emissions by 2020 and
15% by 2050.

Shipping Emissions and Associated Impacts

In the current era of globalisation, the shipping industry has become a key component of the world’s economy. Over
90% of global trade is carried by sea. The world fleet of sea-going merchant ships of more than 100 gigatons (GT)
comprises over 104,000 ships.

Like other transportation companies, shipping companies require fossil fuel to conduct their operations. The
combustion of fossil fuel used by a vessel’s engines produces greenhouse gases (GHG) as well as non-GHG emissions.

GHG Emissions
Under the GHG Protocol, six gases are categorised as greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous
oxide (N2O), hydrofluorocarbons (HFCs), perfluorooctane sulphonate (PFCs), and sulphur hexafluoride (SF6).2
u Carbon dioxide: CO2 is the GHG most relevant to the shipping industry. Globally, 1,050 million tonnes of CO2 were
emitted by shipping in 2007, doubling 1990 levels. CO2 emissions represent approximately 3% of the world’s total
CO2 emissions.
u Other greenhouse gases: The shipping industry also emits other GHGs such as CH4, N2O, and HFCs. Annual
aggregated emissions of these GHGs represent 21 million tonnes of CO2 equivalent. Emissions of PFCs and SF6 are
considered negligible.

Non-GHG Emissions
In addition to GHGs, shipping produces other air emissions, most notably sulphur oxides (SOx), nitrogen oxides (NOx)
and particulate matter (PM).
u Sulphur oxides (SOx): The shipping industry is among the top emitters of SOx. A total of 2.3 million tonnes of SO2
(the most common sulphur oxide) was emitted by ships in the seas surrounding Europe in the year 2000. SOx
emissions from shipping represent between 5% and 8% of the world’s total SOx emissions.
u Nitrogen oxides (NOx): Shipping also accounts for a significant portion of the world’s NOx emissions. A total of 3.3
million tonnes of NOx was emitted by ships in the seas surrounding Europe in the year 2000. NOx emissions from
shipping represent around 15% of the world’s total NOx emissions.
u Particulate Matter (PM): In 2000, 250,000 tonnes of PM were emitted by ships in Europe. The amount of PM
released by ships is much lower than that of SOx or NOx emissions. Note that PM and SOx emissions are correlated:
a decrease in SOx emissions reduces emissions of PM.

Shipping emissions are an important contributor to several major environmental problems. GHG emissions contribute
to climate change (i.e. longer term, less instantaneously visible effects), while non-GHG emissions can cause acid rain,
damage to monuments, a reduction of agricultural yields, water contamination, modification of soil biology and
deforestation (i.e. more short term, visible effects). Some non-GHG emissions are also linked to increases in ground-
level ozone.

Shipping emissions can also cause negative social impacts. The effects of climate change, such as drought or rising sea
levels, can lead to social conflict over resources (i.e., water, energy, agricultural products). Air pollution from non-GHG
emissions can affect the heart and lungs, consequently worsening the condition of people with cardiovascular and

LPG for Marine Engines, The Marine Alternative Fuel Page 106
 respiratory diseases. For instance, in Hong Kong, 519 premature deaths have been linked to marine SO2 emissions.7
Additionally, non-GHG emissions can react chemically in the atmosphere to form particulate matter; prolonged
exposure to which can affect a person’s mood and cognitive abilities. Another negative consequence of pollution is
smog which can reduce the quality of life and inhibit the attractiveness of tourist sites.

The Legislative Context

Shipping emissions are expected to double by 2050, as are the related social and environmental effects. In order to
mitigate environmental and social risks associated with these emissions, regulators around the world have started to
act. Generally speaking, when it comes to reducing emissions and supporting energy efficiency, regulators deploy four
primary policy mechanisms: emissions trading, financial incentives/taxes, emission reporting/monitoring obligations
and energy efficiency/emissions standards. We will address each of these policy mechanisms and see how relevant they
are for shipping companies. As the most prominent regulators in the shipping industry are the International Maritime
Organization (IMO) and the European Union (EU), we will also look at the regulations set by these two bodies.
Finally, we will examine the voluntary initiatives that have emerged in some countries.

IMO 2020 - five key changes

Limiting SOx emissions from ships will have a very

positive impact on human health
Limiting sulphur oxides emissions from ships reduces air
pollution and results in a cleaner environment. Reducing
SOx also reduces particulate matter, tiny harmful
particles which form when fuel is burnt.

Achieving the IMO decarbonisation goals

A study on the human health impacts of SOx emissions from ships,

submitted to IMO’s Marine Environment Protection Committee
(MEPC) in 2016 by Finland, estimated that by not reducing the
SOx limit for ships from 2020, the air pollution from ships would
contribute to more than 570,000 additional premature deaths
worldwide between 2020-2025.

Page 107 LPG for Marine Engines, The Marine Alternative Fuel
 Addressing the GHG reduction ambitions

Emission Regulations
Timeline overview

Ballast Water Ratification of Ballast Short-term Long-term

IMO GHG Mid-term GHG
Water Management GHG GHG
Srategy regulation
Convention regulation regulation
EEDI
Adopted

BC, Noice, and

GHG EEDI BWMC into EEDI EEDI 50% GHG
biofouling
Phase 1 force Phase 2 Phase 3 Reduction
regulation

SOx

NOx
2015 2016 2017 2018 2019 2020 2021 2025 2030 2050

Possible
North Sea & 40% CO2
ECA NOx Tier China Area 0.5% Global
0.1% SOx Baltic Sea Intensity
III 0.5% SOx SOx
NOx ECA Reduction

NOx, SOx & EEDI regulation on the short term focus list
Significant GHG reductions planned in the following years.

Prospects for energy and maritime transport in the Nordic region

Public

IMO’s strategy toward decarbonising defines three levels of ambition with two interim goals remaining: achieve a 40 %
reduction of the average carbon intensity by 2030 and a 70% reduction by 2050, compared to 2008 levels. The industry’s
total GHG emissions are to be reduced by year 2050.The strategy is underlines by short, mid- and long-term ambitions.
A quick short-term win is to begin reducing the shipping industry’s carbon intensity. This has been by introducing the
Energy Efficiency Design Index (EEDI) for new ships and speed ship reductions an easy preliminary measure/successful
implementation of the two remaining levels of ambition will depend on timely technological innovation and global
availability of alternative fuels and/or energy sources. But technology alone will not be enough there is a need for
international regulations that will create incentives for selecting cleaner fuels. The main focus should be on developing
zero carbon fuels by 2050.

Pre-existing measures

In 1973, the IMO adopted the International Convention for the Prevention of Pollution from Ships (MARPOL). Originally
orientated towards the prevention of oil pollution, MARPOL has developed since 1973 to deal with a broader range of
ship-source pollution issues, including pollution by garbage, sewage, ballast water and stemming from the recycling of
ships. MARPOL has also been developed to address pollution caused by GHG emissions and in July 2011, at the 62nd
session of the MEPC, the IMO adopted the MARPOL Annex VI Regulations on Energy Efficiency for Ships (the
Regulations).

The Regulations, which came into force on 1st January 2013, are the first rules to ever establish CO2 standards across
any global sector. They apply to existing and newly built vessels, although in different ways, and set out various energy
efficiency measures which ships must comply with.

Existing ships

For existing ships, the Regulations require that all ships have a Ship Energy Efficiency Management Plan (SEEMP). This
is a management plan for improving the energy efficiency of the ship by operational means, such as by optimising vessel
speed, increasing the frequency of hull or propeller cleaning, or by making different route choices to reach a destination
or pass-through heavy weather. Each ship’s SEEMP is specific to that ship and will take account of the factors particular
to it, such as the cargoes carried, routes sailed and dry-docking schedule, as well as broader corporate or fleet level

LPG for Marine Engines, The Marine Alternative Fuel Page 108
 strategies for improving efficiency. To support the planning process the IMO has developed a monitoring tool, the
Energy Efficiency Operational Index (EEOI), which ship owners and operators can consult to gauge the potential impact
of any management changes they may make and thus weigh up the options from a more informed position.

Owners and operators already have an incentive to increase efficiency, so as to reduce fuel costs. The SEEMP planning
process bolsters this by placing firmly on the agenda an opportunity to consider new technologies and practices at every
stage in the operation of the vessel. Thereby increasing the likelihood of their take up, and of increased efficiency gains
which will benefit owners, operators and the environment.

New ships

For new ships, the regulations require compliance with the Energy Efficiency Design Index (EEDI), which takes a phased
approach to setting minimum energy efficiency improvements for ships. The EEDI applies to most ship types and for
each ship type and size a reference line, measured as grams of CO2 emitted per tonne mile and based on the average
efficiency of ships built between 2000 and 2010, has been set. The EEDI requires that energy efficiency is improved, in
phases, such that CO2 emissions are progressively reduced below the reference line.

The EEDI does not prescribe how the reduction of CO2 emissions should be achieved, rather it leaves ship designers and
builders free to innovate and to continue the technical development of all components of the ship which contribute to
fuel efficiency.

During phase one, which ran 1st January 2015 to 31st December 2019, the EEDI required a 10% reduction of CO2 grams
per tonne mile below the relevant reference line for newly built ships. In phase two, running 1st January 2020 to 31st
December 2024, the EEDI requires a further 10% reduction of CO2 grams per tonne mile. Phase three of the EEDI, which
was due to commence in 2025, requires an additional 10% reduction, meaning overall that ships being built in 2025 will
be required to be 30% more carbon efficient than those built in 2000 – 2010.

In the seventy-fifth session of the Marine Environment Protection Committee (MEPC 75), which was held from 16 to 20
November 2020 as a web conference due to the pandemic of COVID-19 the following decisions taken to strengthening
EEDI phase 3 requirements.

u For general cargo ships, LNG carriers and cruise passenger ships, the effective date is moved forward from 2025
to 2022 with the reduction rate of 30%;

u For containerships, the effective date is moved forward from 2025 to 2022 and the reduction rate is strengthened
based on the ship sizes;

u For gas carriers (e.g. LPG carriers) with 15,000DWT and above, the effective date is moved forward from 2025 to
2022 with the reduction rate of 30%. For gas carriers (e.g. LPG carriers) below 15,000DWT, the current effective
date of 2025 and the reduction rate are retained; For ship types other than the above, the current effective date
of 2025 and the reduction rate are retained.

u Adjustment of the reference line for very large bulk carriers recognizing that EEDI requirements for very large bulk
carriers as being too stringent, the amendments to MARPOL Annex VI to adjust the reference line for very large
bulk carriers more than 279,000DWT were adopted. (Refer to Res. MEPC.324(75) as attachment 1).

u Introduction of possible EEDI phase 4 requirements MEPC 74 established a correspondence group (CG),
coordinated by Japan, to consider the possible introduction of phase 4.

Page 109 LPG for Marine Engines, The Marine Alternative Fuel
 IMO resolution MEPC.304(72)
Initial IMO strategy on reduction of GHG emissions from ships

Level of ambition Timeline

Carbon intensity of ships to decline Short-term measures: 2018–2023
− Strengthening of EEDI requirements for new ships − EEDI improvement (Energy Efficieny Design Index)
− SEEMP improvement (Ship Energy Efficiency Management Plan)

Carbon intensity of shipping to decline − Speed regulation

− 40% reduction per transport work by 2030 relative to 2008 − Methane slip regulation

− 70% reduction per transport work by 2050 relative to 2008 − VOC regulation (Volatile Organic Compounds)

Mid-term measures: 2023–2030

GHG emission from shipping to decline − Low-carbon/zero carbon fuels introduction

− 50% reduction of GHG emissions by 2050 relative to 2008 − Operational energy efficiency requirements
− Market-based measures

Long-term measures: > 2050

− Zero carbon/fossil-free fuels for 2050 and later

Prospects for energy and maritime transport in the Nordic region

Public

New measures

Pursuant to the publication of the initial strategy, the IMO is considering new short, mid and long-term measures for
achieving its carbon intensity and GHG reduction ambitions.

Short-term measures are to be finalised by 2023. These are goal-based, include technical and operational measures,
and are aimed at achieving the 2030 target of a 40% reduction in the carbon intensity of international shipping. Three
types of short-term measures are under consideration:

u Those that can be considered and addressed under existing IMO instruments, these also include developments to
pre-existing measures, such as the SEEMP and EEDI discussed above.
u Measures that are not work in progress and are subject to data analysis.
u Measures that are not work in progress and are not subject to data analysis.
Some of the candidate measures under consideration include existing fleet improvement programmes, speed
optimisation and reduction programmes and measures to address the emission of methane and volatile organic
compounds.

Mid- and long-term measures – mid-term measures are to be concerned with the period 2023 to 2030 and long-term
measures with the period 2030 onwards. It is predicted that these measures will account for at least 50% of the change
which needs to occur in order for the IMO to achieve its ambitions.

These measures are likely to require a high degree of innovation and to result in the global uptake of new fuels and new
technologies. From 2023 onwards the IMO will start focusing its activities in these areas.

Candidate mid- and long-term measures include programmes to implement the use of low and zero carbon fuels,
programmes to develop and provide zero carbon or fossil free fuels, further operational efficiency measures and
market-based measures, such as emissions trading, emissions related levies and emissions offsetting.

Impact on shipping

The IMO’s GHG emission reduction measures impact ship owners on a number of fronts. For some time already, ship
owners have been required by the Regulations to plan for and manage ship efficiency, and have been supported by the
IMO to explore the available options and their likely impact. However, the tweaking and refining of current practises

LPG for Marine Engines, The Marine Alternative Fuel Page 110
 and technologies will only take the industry so far towards the IMO’s goals. A major shift in technologies, especially in
fuel preference, is envisaged by the initial strategy.

Additionally, the industry can anticipate that significant behavioural changes, such in ‘just in time’ arrivals at ports, are
likely to either be required or more strongly incentivised in the future, so as to become widespread and normalised.
These too will play a key role in accomplishing the targets set by the IMO.

With much still unknown there is perhaps a tendency to hang back on implementing new technologies and practices
while owners and operators wait to see which have high take-up and are proven to be trouble free and effective. In the
meantime, it is likely that retrofitting will play a major role in moving the industry towards accomplishment of the IMO’s
goals. Meaning that technologies which are designed to be adapted in several different directions in the future may
become popular in the short-term as the industry hedges its bets on the global preference for future fuels.

Whatever the future may be, it is evident that an appreciation of rising efficiency standards, the targets for future
reduction of GHG emissions, and the trajectory of the industry towards cleaner shipping, must inform the decisions
made by owners and operators today if those parties are to future proof their investments and to achieve financial
efficiency, as well as efficiency at sea.

Upcoming

One criticism levied at the global regime advanced by the IMO is that it is simply not progressing fast enough. Despite
shipping’s global nature, the EU was recently prompted by the IMO’s pace of change to take its own action in relation
to GHG emissions from shipping, voted in July 2020 for emissions from shipping to be included in the EU’s Emissions
Trading Scheme (EU ETS) with effect from 2023.

In summary, the key ambitions of the initial strategy are:

u To reduce the carbon intensity of international shipping, compared to 2008 levels, by 40%, by 2030.
u To increase that reduction to 70% by 2050.
u To reduce GHG emissions from international shipping, again compared to 2008 levels, by at least 50%, by 2050

To achieve zero GHG emissions as soon as possible within this century, ie by 2100.

Page 111 LPG for Marine Engines, The Marine Alternative Fuel
 The IMO is working to achieve these ambitions by way of a mixture of means, including pre-existing energy efficiency
measures and new measures applicable in the short-, mid- and long-term.

Gas is an alternative to reach IMO’s 2050 emission goal

To reach IMO’s 2050 goal:

1. Energy efficiency has to counter a 35% fleet growth.
• Energy consumption per ton-mile is estimated to decrease by 30%

2. In addition, cleaner energy as fuel need to replace the use of fuel oil
• Fuel oil is estimated to be reduced to one third of total consumption
• LNG and LPG together will have 23% market share as fuel for ships
• 39% of shipping energy will come from Carbon-neutral fuels
IMO aims to reduce Green House Gas
emissions by 50% from shipping by
2050
However, world’s total fleet is estimated 1. Energy efficiency has to
counter the growth in total fleet.
to grow by 35% due to increasing
demand for international trade Including LPG

2. Fuel oil has to be

reduced to one third of
total consumption

Source: DNV.GL Maritime Forecast to 2050, EIA

13

The deal seems to mirror the terms being sought by the government of Norway, but is far less than what the Marshall
Islands and the European Union had been aiming for. Those parties had reportedly been aiming for carbon emissions
reductions of between 70–100% by 2050 (as compared to 2008 levels). These new rules have far reaching implications
for the international shipping trade, the cruise industry, and ship owners and operators in particular.

Of particular note are regulations in Emissions Control Areas (ECAs) such as the North American ECA, which went into
effect in 2012, and the Sox Emission Control Areas (SECAs), which have been in effect on the Baltic Sea and North Sea
and English Channel since 2006 and 2007, respectively. On 1st August 2012, enforcement of the North American ECA
commenced. The North American ECA covers the coastal waters of the United States and Canada out to 200 nautical
miles. Ships operating in the ECAs and SECAs are required to use lower-sulphur fuels or add sulphur oxide (SOx) exhaust
scrubbers. Regulations for a Caribbean ECA will go into effect for Puerto Rico and the U.S. Virgin Islands. Allowing for
the lead time associated with the IMO process, the U.S. Caribbean ECA became forceable in January 2014. There is the
potential that ECAs will be established for the Norwegian and Barents Sea, Mediterranean Sea, Japan, Australia,
Mexico and Panama, the Arctic, and Antarctica in the future. The rules for these areas will mandate reductions in
emissions of sulphur (S), nitrogen oxides (NOx) and particulate matter (PM).

ECAs with nitrogen oxides thresholds are denoted as Nitrogen Oxide Emission Control Areas (NECAs).

LPG for Marine Engines, The Marine Alternative Fuel Page 112
 Certain maritime regions are designated emission-controlled areas (ECAs) where the regulated emission levels are lower
than in the rest of the ocean. Accordingly, regulations of air pollution
from ships are only effective for certain aspects of the present
shipping activities. The regulations will become tighter in a
stepwise manner and additionally, the number of emission control
areas will potentially increase.

There are two grades of marine fuel allowed in the SECA area: Low
Sulphur Heavy Fuel Oil (LSHFO) with maximum allowed sulphur
content of 1.0% by mass and Low Sulphur Marine Gas Oil (MGO
DMA) with maximum sulphur content of 0.1% used in European inland waterways and in ports in the (SECA) area (The
European Parliament and the Counsel of the European Union 2005).

In 2013, the Energy Efficiency, Design Index (EEDI) entered into force, becoming the first regulation to establish CO2
emission standards across a global sector. EEDI essentially requires new ships to be progressively more efficient from
2015 through 2025, as compared against the average 2000-2010 ships of the same type. For non-CO2 pollutants, 2014
saw the successful implementation of the newest emission control area (ECA), the US Caribbean Sea ECA, to regulate
NOX and SOX emissions. ECAs are sea areas that are specially designated by the IMO for enhanced mandatory measures
to control air pollution from ships, including maximum fuel sulphur content and exhaust NOX emission levels (IMO,
2014). Today, ships traveling in ECAs must meet stricter fuel sulphur requirements than elsewhere; and as of 2016, new
ships were required to meet special NOX emission standards (Tier 3) when traveling within ECAs. Following Russia’s
proposal to delay the implementation of Tier 3 NOX standards in ECAs, the IMO upheld the 2016 implementation date
for existing ECAs (including the US Caribbean ECA), but delayed this date for NOX ECAs entering into force in later years.

Legislation for Marine SOx Reduction

New and existing regulations derived from the International Convention for the Prevention of Pollution from Ships
(MARPOL) affecting the SOx emissions from ships are summarised in Table 1.

Legislation for Marine NOx Reduction

In addition to having to meet the fuel sulphur limits in Table 1, ships operating in the ECAs must meet the MARPOL
Annex VI Marine Tier III NOx limits of 2016.

Page 113 LPG for Marine Engines, The Marine Alternative Fuel
 Table 2 shows the applicable NOx limits for ships and the dates that they became effective.

NOx emission limits are set for diesel engines according to engine maximum operating speed (n, rpm), as shown in Table
2 and presented graphically in Figure 4. Tier I and Tier II limits are global, whereas the Tier III standards apply only in the
NOx ECAs. Tier III NOx limits apply to all ships constructed on or after 1st January 2016, with engines over 130 kW that
operate inside an ECA-NOx area.

Compliance with Marine SOx and NOx Legislation

Given the proliferation of the ECAs and the possibility that more ECAs, such as in the Mediterranean Sea and the coast
of Mexico, may come into being in the future, there is a strong incentive for ship owners and operators to explore the
use of alternative fuels to satisfy the lower fuel sulphur and NOx limits.

Alternative Marine Fuel Incentives

Currently, there are a number of incentives for using alternative fuels. These include the following:

u The MARPOL Annex VI SOx and NOx legislation.

u The price fluctuations of fossil fuels.
u The prediction of a diesel fuel shortage in Europe .
u Current ECAs with their SOx and NOx limits .
u The proliferation of ECAs, with the possibility that future ECAs may come into force in the Mediterranean Sea and
off the coasts of Mexico and Singapore (which has, in fact, requested an ECA).

The introduction by IMO in MARPOL Annex VI of the Energy Efficiency Design Index (EEDI), which would make
mandatory some measures to reduce emissions of GHGs, such as CO2 from international shipping. The EEDI standards
phase-in from 2013 to 2025. The EEDI creates a common metric to measure and improve new ship efficiency. This metric
is calculated as the rate of CO2 emissions from a ship. Alternative fuels that can help satisfy the above requirements
and having certain attributes can possibly be substituted for the fossil fuels currently in use.

Future course of action towards the abolition of Heavy Fuel Oils

u The global 0.5% sulphur cap was introduced in 2020, and up to 70,000 ships may be affected by the regulation
according to IMO estimates.
u The European Union Sulphur Directive stipulates a maximum 0.5% sulphur content for ships in all EU waters by
2020, and a 0.1% limit in ports. In certain EU countries, it should also be noted that the Water Framework Directive
is putting constraints on the discharge of scrubber water.

LPG for Marine Engines, The Marine Alternative Fuel Page 114
 u Belgium and Germany have in essence prohibited the discharge of scrubber water in most areas, severely
constraining the operation of open-loop scrubbers. Other EU countries are following suit to a lesser or greater
degree, with no common EU practice likely to be agreed.
u Currently Hong Kong has a 0.5% sulphur limit for vessels at berth.
u China has recently published regulations for domestic SECA-like requirements in the sea areas outside Hong
Kong/Guangzhou and Shanghai, and in the Bohai Sea. China is taking a staged approach, initially requiring
maximum 0.5% sulphur content in fuel burned in key ports in these areas, gradually expanding the coverage, and
culminating in applying the requirements to fuel used in the sea areas from 2019 onward. There is the possibility
that the requirement was tightened to 0.1% in 2020, and that a formal ECA application may be made to IMO.
u California’s Air Resources Board (ARB) enforces a 0.1% sulphur limit within 24 nautical miles of the Californian
coast. The regulation does not allow any other compliance options than low sulphur marine gas or diesel oil (DMA
or DMB). A temporary research exemption may be granted allowing the use of a scrubber. The application has to
be sent before entering Californian waters

Their impact, in particular the application of stricter limits for sulphur content in marine fuels since 1st January 2020, is
yet to be evaluated. Parallel efforts to reduce greenhouse gas (GHG) emissions from maritime shipping have resulted in
the setting of rules on collecting data on fuel oil consumption and the first collected data becoming available. In 2018,
the IMO adopted an initial strategy for reducing GHG emissions, aimed at cutting shipping GHG emissions by at least 50
% by 2050, compared to 2008 levels. While concrete steps are yet to be agreed, achieving this goal will require both
short-term emission-reducing measures and longer-term measures to make shipping switch to alternative fuels. On the
EU front, the European Commission announced in the European Green Deal that GHG from EU transport should be cut
by 90 % by 2050 and outlined how this would involve shipping. This briefing reviews the existing international and EU
rules on shipping emissions and their application, looks into the short-term measures under discussion and maps the
landscape of marine fuels and technologies that could help decarbonise shipping in the long term.
Regional sulphur limits vary

Open loop scrubbers utilization banned areas

keep expanding
Map of areas where the use of open loop scrubbers is banned

Since October 2019, 4 areas have banned the use of open loop scrubbers
in their waters: Panama canal, Malaysia, Suez Canal, Karachi (Pakistan)
27
The European Union Sulphur Directive stipulates a maximum of 0.10% sulphur content for ships in EU ports. In certain
EU countries, the Water Framework Directive constrains the discharge of scrubber water. Belgium and Germany have
prohibited the discharge of scrubber water in many areas, constraining the operation of open-loop scrubbers. Other EU
countries may follow suit, with no common EU practice likely to be agreed.

Page 115 LPG for Marine Engines, The Marine Alternative Fuel
 In China, as of 1st January 2020, vessels operating in the Inland ECAs (Yangtze and Xijiang River) shall use fuel with a
sulphur content not exceeding 0.10% sulphur. The same will apply within the Hainan Coastal ECA from 1st January 2022.
In addition, discharging wastewater from scrubbers is banned within inland Emission Control Areas (ECAs), port waters
and the Bohai Bay waters.

California’s Air Resources Board (ARB) enforces a 0.10% sulphur limit within 24 nautical miles of the California coast.Page 3
The regulation does not allow any other compliance options than low-sulphur marine gas or diesel oil (DMA or DMB). A
temporary research exemption may Executive Summary
be granted, allowing the use of a scrubber. The
Page 3application must be sent before
entering California waters. After a formal review of the regulation, California legislators have decided to retain it as an
addition to the ECA requirements. Implementing the EU MRV system
Both sets of regulations must be complied with Maritime transport – a substantial CO2
when calling at port in California.
Executive Summary 2015: Adoption of Regulation (EU) 2015/757 on the
emitter
There is a general
Implementing the EUglobal
MRVtrendsystem of stricter local
monitoring, air
reportingpollution regulations
and verification
Maritime transport coming into
of CO2 emissions
– a substantial COplay.
>138
million tonnes of CO2 in 2018
from maritime transport. 2
Over 3% of total EU CO2 emissions
2017: Preparation emitter
of monitoring plans. Comparable to the CO2 emissions of Belgium
2015: Adoption
European of Regulation (EU) 2015/757 on the
initiatives 2018:
monitoring, reporting and verification of CO2 emissions First reporting >138
period. million tonnes of CO in 2018 According to projections, CO2 emissions from
2
from maritime transport. 2019: Collection and publication of information. maritime transport are likely to grow in the future,
Over 3% of total EU CO2 emissions Page 3
The reinforcing the as
needrail
for CO reduction efforts.
2017:EU has plans
Preparation to move
of monitoring plans.30% of road freight travellingComparable toover the CO3002
km
emissions to
of other
Belgium modes such or2 waterborne
2018:
transport by 2030, and more thanTracking
First reporting period. 50% by 2050. AccordingCOto emissions
EU maritime 2
projections, CO2 emissions from >44
million tonnes of fuels consumed
2019: Collection and publication of information. maritime transport are likely to grow in the future,
Executive Summary reinforcing the need for CO2 reduction efforts. 70% heavy fuel oils, which is a residual fuel and a
heavy pollutant
Trackingthe
Implementing EUEU maritime
MRV system CO2 emissions Maritime transport >44
During the first reporting year, the system involved:
million– atonnes of fuelsCO
substantial consumed
2
20% marine gas oil and diesel
2019 Annual Report
NaturalonGas
CO(LNG)
2 Emissions from
emitter 70% heavy fuel >11,600
ships
3% Liquefied
oils, which is a residual fuel and a
Represents around
Maritime Transport 90% of total marine fuel sales
2015: Adoption of Regulation (EU) 2015/757 on the heavy pollutant
During the first reporting year, the system involved:
monitoring, reporting and verification of CO2 emissions 20%million>138
Around two-thirds are non-EU flagged
marinetonnes
gas oil ofandCO
More than half are owned by entities based in the
2 in 2018
diesel in EU ports.
from maritime transport.
>11,600
2017: Preparation of monitoring plans.
ships EU. Over 3% 3%
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total
Represents
EU CONatural
2
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Gas (LNG)
emissions
90% of total marine fuelMost sales CO2 emissions come from voyages
Comparable to the CO 2 emissions of Belgium
Around two-thirds
2018: First reporting period. are non-EU flagged
More than half are owned by entities based in the
in EU ports. >2,000
companiesCO2 emissions from
According to projections, outside the European Economic Area
2019: Collection and publication of information. maritime
Around half of
transport
theseCO
are
are European
likely to grow
companies.
in the future,
EU. Most
reinforcing 2 emissions
the need come efforts.
for CO2 reduction from voyages
>2,000 companies
Tracking EU maritime CO2 emissions
outside
29 accredited
>44 million
the European
verification
Economic Area
companies
tonnes of fuels consumed
Around half of these are European companies. Four verification companies have issued 62% of all
70% heavy fuel oils, which is a residual fuel and a
documents of compliance.
heavy pollutant Three out of these
29 accredited
During the first reporting year, theverification companies originate20%
system involved: frommarine
the EEA.
gas oil and diesel
Four verification companies have issued 62% of all
>11,600 ships Three out of these
documents of compliance.
3% Liquefied Natural Gas (LNG)
Represents around 90% of total marine fuel sales
originate from
Around two-thirds the EEA.
are non-EU flagged Containerinships: the largest CO2 emitters
EU ports.
More than half are owned by entities based in the
EU. Most CO2 emissions come from voyages Case studies:
The EU Leadership
Container ships: the initiative
largest CO aims at ensuring the future of European shipbuilding. Decarbonising the shipping sector
2 emitters outside the European Economic Area
>2,000 companies
would involve not only introduction of greener marine fuels, but also innovative green and energy- Container ships ship designs.
efficient
Around half of these are European companies. Case studies: 30% of total CO₂ emissions
Apart from this, development of infrastructure and greening of the ports are in process.
18% of the monitored fleet (DWT)
29However,
accreditedintroduction of alternative marine fuels will beContainer ships
verification companies Distance travelled: >70 million nm
30% of total CO₂ emissions Average speed: 14 knots.
Four verification companies have issued 62% of all
The ofTarget:
documents max.
compliance. 1.5°C
Three out of these 18% of the monitored fleet (DWT)
The Target: max. 2°C Bulkers
originate from the EEA. Distance travelled: >70 million nm
CO2 Emissions & Fossil Fuel Reserves 13%
CO2 of total CO₂
emission emissions
potential
Average speed: 14 knots.
37% of the monitored
of proven global fleet (DWT)
IMO draft Bulkers
DECARBONIZATION requires Distance travelled:
fossil fuel >55 million nm
reserves
Container ships: the largest
-50%CO
GHG2byemitters
2050
Technologies &Main emitters –
Infrastructure 13% of total CO₂ emissions
CO2 emissions Average speed: 10.5 knots.
caused
37% of the by monitored
fossil fuelsfleet (DWT)
Case studies: 1990 Report
Distance
2019 Annual - 2015travelled:on CO>55 million nm 2‘800 Gt CO2 Transport
2 Emissions from Maritime
Main emitters – Maximum amount of
Average speed: 10.5 knots.
Engine Multi fuel Alternative Container ships 670 Gt 420
Hybridization CO2
fossile fuel emissions
Gt
Optimization engines
2019 Annual ReportFuels 30%Transport
on CO2 Emissions from Maritime of total CO₂ emissions CO2 until 2050 before reaching
18% of the monitored fleet (DWT) 2°C carbon budget
Distance travelled: >70 million nm
Average speed:The 14world knots.is not running out of fossil fuel resources anytime soon.
But the environmental impact of CO2 emissions means we cannot burn it all.
Bulkers
13% of total CO₂ emissions
Reference: IEA, World Energy Outlook

Public
37% of the monitored fleet (DWT)
Prospects for energy and maritime transport in the Nordic region
Public
Prospects for energy and maritime transport in the Nordic region

Distance travelled: >55 million nm

Main emitters –
Average speed: 10.5 knots.
LPG for Marine Engines, The Marine Alternative Fuel Page 116
2019 Annual Report on CO2 Emissions from Maritime Transport
 accompanied by additional complexity in the areas of fuel supply infrastructure, rules for safe use of fuels on board and
operation of new systems. Additionally, adoption or wide acceptance of these new fuels could possibly be a challenge
for ship-owners. To ensure confidence that the technologies will work as intended, technology qualification from neutral
third parties is needed. Among the stakeholders, ship owners and shipping agents will also play a major role in this
transition. Although marine fuel standards are set in ISO 8217, all responsibilities for the fuel quality and quantity lie
with the ship owners, with little to no liability towards the fuel suppliers or bunker parties. The choice of fuel lies
primarily with the charterer (the shipping agent) who, in principle, rents the vessel from a ship owner. Hence, while
considering new marine fuels, all these stakeholders must also be included.

3.11. Safety

Safety issues and standards for the use of LPG need to be addressed before this becomes more acceptable by the
shipping industry.

An important property of LPG is that when in vapour form, it is heavier than air and when it leaks it always falls to the
ground. If an LPG leak in a vessel is left un noticed, it will find its way to the engine room floor or bilge.

The preferred way of storing LPG for use as propulsion fuel is in a pressurised tank at ambient temperature. Storage in
a semi-refrigerated tank made of cheaper steel types than for LNG is also possible, but in order for such an arrangement
to be sufficiently reliable, back-up systems must be in place to ensure low temperature in the tank. This makes
pressurized tank storage a more reliable, affordable and simple solution.

considerations
LPG has a higher density than air and any spillage will collect in lower spaces, requiring a different approach to leak
detection and ventilation in the case of leaks. LPG is also known as an
“extremely flammable gas” with flammability limits between 1.0 vol% and 12
vol% in air. LPG is a low-flash-point liquid, and when used in a high-fire-risk
s known as an “extremely flammable gas” with flammability limits between
space of the ship with a constant personnel presence, like in the engine room,
ol% and 12 vol% in air. a double- walled pipeline must be used as secondary containment.
Hydrocarbon detectors will detect any leakage and contain the fuel within the
er mitigating measures are required to ensure all risk are as low as reasonably
secondary containment before it reaches areas where humans are present.
ble Double-walled pipelines must be used below the deck line.

The entireSummarising
LPG fuel the
supply andmitigating
following conditioning
measures system will
are required be installed
to ensure all risk areon main
as low deck, inpossible:
as reasonably the already
The entire
existing hazardous area
u LPG fuel supply and conditioning system will be installed on main deck, in the already existing hazardous
area.
The pipingu with
TheLPG
pipingat 50LPG
with barg
at 50will
bargbe minimized
to be in length
minimised in length asasmuch
as much possibleas
to possible to limit
limit the inventory and the inventory
will be fully
and will be fully welded
welded.
u Additional gas detection will be installed in the bottom of the engine room.
AdditionalugasAlldetection will LPG
piping containing be installed in the
liquid or vapour bottom
installed in the of theroom
engine engine
will beroom
installed as double
walled piping. Ex
All piping containing LPG liquid or vapor installed in the
u The annular
engine room will be installedspace will be flushed
as double and monitored
walled piping
continuously for any leakages. air
The annular
u space
In casewill bepotential
of any flushedsafety
andissue
monitored
in the LPG fuel LPG
air
supply system,
continuously for any leakagesthe emergency shutdown system of the
vessel will automatically cause the main engine to switch
15/04/2021 15
over to compliant fuel oil.
u The LPG fuel system will be subjected to a risk-based assessment. A HAZID and HAZOP study will be performed.

The auto ignition temperature for LPG (490°C) is lower than for LNG (580°C), which may require a lower surface

Page 117 LPG for Marine Engines, The Marine Alternative Fuel
 temperature near electrical equipment. Compared to LNG, LPG has fewer challenges related to temperature because it
is not kept at cryogenic temperatures but on the other hand it has challenges related to the higher density as a gas and
a lower ignition range, with a lower explosion limit of about 2%. The challenges are different, but overall, the safety
management is probably somewhat simpler for LPG than for LNG.

The development of any new technology requires uppermost attention and consideration of safety implications and
especially so if the new technology involves engines and equipment, machinery, and/or vessels that use LPG as a fuel.

LPG, same as any other fuel, can be entirely safe as long as the equipment is designed correctly with all safety aspects
considered and the operation is equally carried out in the same manner. New technologies require thorough assessment
of all potential safety risks.

Particularly in the marine environment, three main factors need to be considered: Corrosion issues, vibration and
constant movement of the vessel.
Is the vessel under consideration for LPG use a gas ca
The use of corrosion resistant alloys and stainless steel, galvanising and appropriate coatings are commonly used in the
marine environment. The additional cost of utilising these materials will be
outweighed by the potential damage caused by not applying them and the need
International Code for the Construction and Equipm
to replace components.
Ships Carrying Liquefied Gases in Bulk
In addition, the consequential impact of failure when out on the water could be
(IGC Code 1983 edition – as amended)
disastrous.

Is the vessel under consideration for LPG use a gas carrier?

International
Regarding safety issues, the International Code for the ConstructionCode for the
and Equipment Construction
of Ships Carrying Liquefied and
Gases Equipm
in Bulk (IGC Code 1983 edition – as amendedShips
IGC CodeCarrying
Code for theLiquefied Gases andinEquipment
Bulk
2016 edition) and International Code of Safety for Ships using
International Construction
Gases or other Low-flashpoint Fuels (IGF Code) was
of
Ships Carrying (IGC Code
adoptedLiquefied
2016 edition)
Gases
by the Maritime in Bulk(MSC)
Safety Committee
use a gas carrier? by resolution MSC.391(95), in order to provide an
(IGC Code 1983 edition – as amended)
international standard for the safety for ships using
low-flashpoint fuel, other than ships covered by
and Equipment ofIf not? the IGC Code. The IGF Code is made mandatory
International Code for the Construction and Equipment of
under amendments to chapters II -1, II -2 and the
International
ShipsCode of Safety
Carrying for Ships
Liquefied GasesUsing
in Bulk
appendix to the annex of the International
Gases or Other Low-Flashpoint
(IGC Code 2016 edition)Fuels (IGF Code)
Convention for the Safety of Life at Seas (SOLAS),
1974, that were adopted by the MS C at the same
and Equipment of
session, by resolution MSC392(95) (entry into force: 1st January 2017).

If The
not?adoption of the IGF Code was the culmination of over ten years of work by several IMO bodies, starting with the
approval by MSC78 (May 2004) of a work item on “Development of provisions for gas-fuelled ships”. Following the
International
adoption by MSC86Code of Safety
(June 2009) forGuidelines
of the Interim Ships Using
on safety for natural gas-fuelled engine installations in ships
Gases or MSC.285(86)),
(resolution Other Low-Flashpoint
MSC 87 approved theFuels (IGF
expansion of theCode)
scope of the work on development of provisions for
gas-fuelled ships to include ships fuelled by low-flashpoint liquid fuels. The present version of the IGF Code includes
regulations to meet the functional requirements for natural gas fuel. Regulations for other low-flashpoint fuels will be
Keel laid before 01.01.2016 ?
added as, and when, they are developed by the organisation.

(previous KeelIGC
This Code provides an international standard laid code
after
for ships
aslow-flashpoint
amended)
using01.01.2016 fuel,?other than ships covered by the IGC
LNG
Code. The basic philosophy of thisis the
Code is toonly
(current providepermitted
mandatory
IGC gaseous
code)provisions for the arrangement, installation, control
and monitoring of machinery, equipment and systems using low-flashpoint fuel to minimize the risk to the ship, its crew
fuel stock
and the environment, having regard toLPG (Ch16.1)
canofbe
the nature theused as a gaseous fuel
fuels involved.
stock by design (Ch16.9 via Ch16.1).
Keel laid before 01.01.2016 ?
LPG for Marine Engines, The Marine
(previous Alternative
IGC code Fuel as amended) Page 118

LNG is the only permitted gaseous A “design equivalenc

Unless…..
 Overall, the safety management is probably somewhat simpler for LPG than for LNG.

3.12. Training

Training of personnel in new technologies, new equipment and particularly in areas where safety is of prime concern is

a key. This is the case when LPG is introduced as a new alternative fuel in any equipment and operations.

Adequate training is a prerequisite before any such new engine and equipment is put into service.
International training is a key

3.13. Quality of Fuel

The manufacturers of all types of engines for marine and especially for outboard uses have specific requirements for
the quality of the fuel used in their engines.
Modern equipment and advanced technologies come most often with increased requirements as far as the quality of
the fuel is concerned. The same holds for LPG and in particular even more so when this is used in marine engines that
need to provide continuous and reliable service.
Fuel quality requirements accordingly differ. Otto or spark ignition fuels must be resistant to detonation when
compressed in a flammable mixture with air and should burn smoothly without prematurely igniting.
For marine outboards, high technology adopted by the last generation of such engines (very high power in a compact
and very light unit) added to the need of high-efficiency, means high compression ratios join with very advanced fuel
strategies, in many cases with sophisticated lean-burn technology. For this type of engine, the LPG quality must be high
because any damage to the power unit can be a source not only of very high maintenance cost, but can also affect the
safety of the boat users themselves due the marine environment.

Currently the quality of LPG used as an outboard engine fuel can vary significantly from country to country.
There are certain key conditions and features of the LPG fuel quality that can be considered as extremely critical and if
respected and well controlled, they can ensure problem free performance of a modern outboard engine.

The low Sulphur levels in LPG fuel are needed for the new engine technologies, like the injection of LPG and the lean
burn injection strategies.

In LPG, odorants used for safety reasons contain sulphur compounds that can increase the sulphur content in LPG by 5
to 20ppm and even more if not controlled correctly. As a result, having LPG as an acceptable competitive alternative
fuel for today’s gasoline and CNG/LNG fuelled marine engines, the right “formula” can be based on the U.S. HD5
standard, with low Sulphur (% by volume):

Page 119 LPG for Marine Engines, The Marine Alternative Fuel
 u Propane: 93% min
u Butane: 3.5% max
u Propene/propylene: 3% max
u Other Olefins: 0.5% max
u Sulphur: 50 ppm max (Limit adopted in many countries)
u Filtered out (not contaminated by plasticizers, rust particulates, sodium dioxide, water and other dirt)

Such LPG composition can ensure more than 101 Octane and can be an excellent fuel to be adopted by marine engine
manufacturers as a reliable fuel for the last generation of high efficiency, very low emissions engines.

3.14. Environmental Aspects

The environmental argument to convert from gasoline and diesel to LPG is strong because Cargo boats, speed boats
and fishing boats are frequently found on inland waterways, rivers and lakes where any form of fuel pollution can cause
serious consequences to wild life, fish and the local environment.

Any spillage of gasoline and diesel will float on top of the water. The visual impact of a fuel spillage can be disturbing
and lasting. Fuel spillages are most likely to occur during the
refuelling or bunkering operation. The movement of a boat
connected to a refuelling hose is challenging enough but if the
refuelling is being done from a floating fuel barge, or bunkering
barge, it is even more so. There have been several incidents
involving fuel spillages from bunker barges over the years and most
have resulted in some form of environmental damage. LPG fuel
tanks are much less messy to refuel.

The result of an oil spillage on water

Another benefit of an LPG marine engine is its quietness compared to a diesel engine which operates at high higher
compression ratios leading to increased noise.

Protection of the environment and improvement of air quality is an important objective of the regulators today.

Emissions from the marine transport sector contribute significantly to air pollution globally and in 2013 marine transport
accounted for 2.7% of global CO2 emissions. These emissions are expected to increase by a factor of two to three by
2050 if no measures are implemented. Shipping particulate matter (PM) emissions have already been linked with
approximately 60,000 cardiopulmonary and lung cancer deaths annually worldwide.

LPG for Marine Engines, The Marine Alternative Fuel Page 120
 Maritime transport of goods is a relatively clean form of transportation per kilogram of material, but also an efficient
mode requiring 2-3 grams of fuel
per ton*km, compared to road
transport by truck which is about
15 grams of fuel per ton*km.

When ships cross bodies of

water, they leave behind visible
“tracks” of pollution. NASA has
been using satellite imagery

to collect data on ship tracks,

and the results are disturbing.

Source: Greener Shipping in North America. DNV February 2011

The image above shows only nitrogen dioxide (NO2) emissions, and is a composite of data collected by the Ozone
Monitoring Instrument on NASA’s Aura satellite from 2005 through 2012.

Page 121 LPG for Marine Engines, The Marine Alternative Fuel
 For more than a decade, scientists have observed “ship tracks” in natural-colour satellite imagery of the ocean. These
bright, linear trails amidst the cloud layers are created by particles and
gases from ships. They are a visible manifestation of pollution from ship
exhaust, and scientists can now see that ships have a subtler, almost
invisible, signature as well.

Data from the Dutch and Finnish-built Ozone Monitoring

Particulate Matter pollution overlaid on the world’s major shipping
routes.
Source: American Chemical Society 2007

Instrument (OMI) on NASA’s Aura satellite show long tracks of

elevated nitrogen dioxide (NO2) levels along certain shipping routes.
NO2, is among a group of highly-reactive oxides of nitrogen, known
as NOx, that can lead to the production of fine particles and ozone that
damage the human cardiovascular and respiratory systems. Combustion engines, such as those that propel ships and
motor vehicles, are a major source of NO2 pollution.

The map above is based on OMI measurements acquired between 2005 and 2012. The NO2 signal is most prominent in
an Indian Ocean shipping lane between Sri Lanka and Singapore, appearing as a distinct orange line against (lighter)
background levels of NO2. Other shipping lanes that run through the Gulf of Aden, the Red Sea, and the Mediterranean
Sea also show elevated NO2 levels, as do routes from Singapore to points in China. These aren’t the only busy shipping
lanes in the world, but they are the most apparent because ship traffic is concentrated along narrow, well-established
lanes. The Atlantic and Pacific Oceans also have heavy ship traffic, but OMI doesn’t pick up NO2 pollution tracks because
the shipping routes are less consistent. The shapes of landmasses force ships into narrow paths in the Indian Ocean,
while ships in the Atlantic and Pacific tend to spread out over abroad areas as they navigate around storms.

In addition, the air over the north eastern Indian Ocean is relatively pristine. Heavy NO2 pollution (dark red in the map)
from cities and off-shore drilling activity along the coasts of China, Europe, and the United States obscures the ship
tracks that might otherwise be visible to OMI. In the
map, the Arctic is grey because the lack of light during
the winter and frequent cloudiness during the summer
prevented OMI from collecting usable data in the area.

Urban areas and industrialisation are not the only source

of NO2 in the map. Agricultural burning in southern
Africa and persistent westerly winds make an elevated
band of NO2 that stretches from southern Africa to
Australia. (In central Africa, easterly winds push
pollutants from fires toward the Atlantic, keeping
NO2 levels comparatively low over the northern Indian
Ocean.) Lightning, which produces NOx, also contributes
to background NO2 levels.

Research suggests that shipping accounts for 15- 30%of global NOx emissions; scientists are using satellite observations
to reduce the uncertainty in such estimates.

OMI is not the only satellite instrument observing NO2 levels in the atmosphere. The Global Ozone Monitoring
Experiment (GOME) instruments on the European Space Agency’s ERS-2 and MetOp-A satellites, as well as
the SCIAMACHY instrument on the Envisat satellite, have made similar measurements. In 2012, Dutch scientists

LPG for Marine Engines, The Marine Alternative Fuel Page 122
 published a study combining data from all four instruments to show that the NO2 signal over major shipping increased
steadily between 2003 and 2008, then dropped sharply due to the global recession and reduction in ship traffic.

Within Europe, 40,600 km of inland waterways and intra-EU maritime transport are used with inland navigation
accounting for 1.6 % of final energy consumption in the transport sector.

Emissions from this sector contributes to 1-7% of ambient air PM10 levels, 1-14% of PM2.5, and at least 11% of PM1
and 4-6% of PM2.5 in Seattle. In some non-European harbours, contributions have been reported for example of <5%
of PM2.5 in Los Angeles Contributions to ambient NO2 levels range between 7-24%, with the highest values being
recorded in the Netherlands and Denmark. In many coastal areas of Europe, it was estimated that ships were
responsible for more than 50% of sulphur release, which could contribute to the formation of acid rain. This is mainly
because traditionally the shipping industry has used fuels with high sulphur content, purchased at a price lower than
that of crude oil.

The future of marine engines to ensure sustainability and global acceptance, requires the development of systems that
reduce the dependence on oil and minimise the emission of greenhouse gases. Decarbonisation, reliability and safety

are the drivers for marine market development. Complying with environmental standards and requirements will entail
however costly technologies, for which fleet and other operators may be unwilling to pay the price. The significant price
advantage against diesel and abundant supplies of LPG reinforces the notion that LPG marine engines can play an
important role as a major part of a clean fuel portfolio for the years to come towards reductions of GHGs, NOx and PM
emissions and near zero emissions objectives in particular combined with hybrid technologies.

3.15. Main Stakeholders

The role of the various stakeholders is instrumental in driving growth of LPG in the marine market, supporting product
commercialisation and raising customer and policymaker awareness.

Key stakeholders include:

u Design offices.
u LPG marine engine manufacturers.

Page 123 LPG for Marine Engines, The Marine Alternative Fuel
 u Shipyards.
u Classification societies.
u Ship owners, cargo owners, ship operators.
u Policy makers, regulators, governments.
u LPG industry, LPG distributors.
u National and international LPG industry associations.

The main stakeholders in the shipbuilding value chain are shown in the below figure. Each stakeholder can play a
specific role in the innovation process.

LPG industry Associations

Others interested in promoting a cleaner, less expensive LPG fuel include flag State administrations, port State control
authorities, underwriters, shipping financiers, charterers, and seafarers.

3.15.1. Design Offices

Design offices can play an important role as the conceptual design is crucial for a vessel’s operational efficiency. They
usually collaborate with shipyards to develop a ship design which matches the operational criteria set by either the yard
or the owner. In some cases, large ship owners/operators undertake design activities.

Design offices (possibly in cooperation with research institutes, classification societies but also R&D and design divisions
of other actors along the value chain) can play an initiating role in certain innovations. Designers also increasingly
cooperate with marine equipment manufacturers to take part in joint development projects. Whether these innovations
find their way on the market depends on their interaction mainly with the ship owner and/or shipyards. A general risk
aversion of ship owners to new innovation that are not yet proven technology is an impediment.

On the other hand, shipyards may embrace new designs (or develop them internally) as it allows them to differentiate
from competing yards.

In some cases, marine equipment suppliers (especially larger suppliers) set up partnerships with other companies or
universities/research institutes to develop specific techniques or technologies that target medium- or long-term
developments.

The role of marine equipment suppliers towards ship owners and shipyards differs, depending on the cooperation
model that is followed. In complex ship types, in general a more intense cooperation is sought between key actors
across the value chain, while in more standard designs the role of marine equipment manufacturers may be less
pronounced. In certain cases, ship owners strongly influence the choice of equipment suppliers as the operational cost
or performance perspective of a ship is more important to them than to a shipyard.

LPG for Marine Engines, The Marine Alternative Fuel Page 124
 For retrofit technologies, the role of marine equipment providers in innovation is essential as they can become a more
direct contract party to the ship owner. Larger sized marine equipment manufacturers such as MAN and Wärtsilä are
actively present in shipbuilding countries outside Europe and also engage in research cooperation with yards located
there.

Moreover, several marine equipment actors are evolving towards a different business model in which maintenance or
life cycle support becomes more important than pure direct product sales. This is often combined with a higher level of
system integration in which systems (e.g. propulsion systems) rather than individual components are offered. Examples
of this development can be found at companies like Rolls Royce, Wärtsilä, and Imtech. This development can partly be
seen as a response to the economic crisis, but also as a business strategy to create a more permanent market position
towards their clients.

A large number of small and medium enterprises are found in the marine equipment industry. Their number has been
estimated between 5,000 and 7,000 companies in Europe. Typical problems faced by SMEs across industries, such as
the difficulty of obtaining financing and moving from R&D to implementation, are also identified in this segment. An
SME survey across a number of sectors indicated that “financing research and innovation activities” is their most
important R&D and innovation need.

Whereas the innovation potential of marine equipment manufacturers is seen as high, they are also faced with specific
barriers in bringing their innovation to market. This is partly the result of barriers that affect the driving forces behind
green innovation in shipbuilding (e.g. regulatory uncertainty), but also due to conflicting interests and risk
allocation/aversion of ship owners and operators.

3.15.2. Marine engine manufacturers

LPG dual fuel engine is already in the market but Natural gas marine engines (CNG/LNG) could easily be converted to
LPG with better results regarding emissions.

Wärtsilä was the early pioneer to develop the first dual fuel medium-speed engines able to run on either fuel oil or LNG
with the engines planned for use in LNG carriers. Today most of the leading engine manufacturers have incorporated
dual-fuel versions of some engines into their portfolios although Rolls-Royce has opted to go with either diesel or pure
gas versions of its Bergen engine range.

Existing LPG engines

Gas Marine Engine Manufacturers

Caterpillar Marine Power Systems: Offers the MaK™ M 34 DF, a new marine dual fuel engine platform for the
commercial marine industry

Page 125 LPG for Marine Engines, The Marine Alternative Fuel
 Cummins: Offers marine engines with a broad range of power 5.9 to 95 litres for commercial, government and
recreational applications. Cummins has great experience in diesel and natural gas engines in oil and gas business.

Doosan Engine: Offers low speed diesel/gas power plants.

MAN: Offers gas marine engines for power generation in the 7 MWe to 21 MWe size range. MAN Diesel & Turbo has
introduced a Liquid ME-LGIP (liquid gas injection) engine, which is powered by LPG.

Niigata Power Systems: Offers dual fuel engine used two-type of fuel, oil and gas.
Niigata developed the propeller direct drive type dual fuel engine which can meet the desired load operation
characteristics coming from the tugboat which works in harbour without generating abnormal combustion such as a
knock, with original combustion technology. Sudden acceleration torque and slowdown torque are required of a
tugboat at the time of navigation of a large-sized ship.

Rolls-Royce Power Systems: Through the MTU and Bergen brands, RRPS offers gas engines across the sub-250 kWe
to 10 MWe size range. Rolls-Royce developed the Bergen K (including KVGS -12G4) gas engine. The gas engine has
been designed and implemented to burn natural gas (Rolls-Royce). The MT30 is Rolls-Royce’s gas turbine and was
selected for the US Navy’s DD(X) multi-mission destroyer (Corkhill) in a CODAG system (Rolls- Royce), and is
considered the most power-dense solution available with ratings of over 40MW. The MT30 is ABS certified and
intended for larger LNGCs. However, the MT30 gas turbine has not yet been modified to burn natural gas as a primary
fuel. Rolls-Royce states that one of the benefits of its gas engine and turbine solutions for marine vessels is the need
to only have one bunker fuel - LNG.

Wärtsilä: A manufacturer of larger gas engines in the 10 to 20 MWe size range, with a number of reference plants
that could use LPG as a fuel. Wärtsilä DFDE engines include the 50DF, 46DF, 34DF, 31DF, 32DF and 20DF. Wärtsilä̈ is
the only manufacturer with a known tri-fuel technology. The 50DF engine can burn LFO, HFO, and NG. The technology
utilizes the “lean-burn” combustion principle that leads to a high compression ratio. Other benefits of the DFDE
system while burning natural gas include no visible smoke from the vessel’s smokestack and no sludge deposits. The
34DF and 32DF are dual-fuel technologies (Wärtsilä2). The 32DF is the engine that Wärtsilä markets for its passenger
cruise-ferry concept. The primary fuel for the 32DF system is natural gas (LNG)and the backup (and pilot) fuel is MDO.

WinGD: A leading developer of low-speed Gas and Diesel engines used for propulsion power in merchant shipping.
These engines are utilized for the propulsion of all types of deep-sea ships world-wide, such as oil and product tankers,
bulk carriers, car carriers, general cargo ships and container ships. The company continues the long tradition of the
Sulzer Diesel Engine business founded in 1898.The company offers a wide range of low-speed diesel and low-pressure
dual-fuel engines, covering all merchant ships applications from small cargo vessels to VLCCs and mega containers.
WinGD's portfolio covers a power, bore and speed range from 2.5 to 73.5 MW, 350 to 920 mm and 58 to 167 rpm,
respectively.

YANMAR Co.: Offers dual-fuel engine for vessels that enables the user to switch to and from liquefied natural gas
(LNG) and diesel fuel during operation.

Outboards Engines

PROPEL PROPEL: Offers LPG outboard marine engines from and 2.5- to 90hp

Mercury: Offers LPG outboard marine four stroke engines 5hp

Selva: Offers LPG outboard marine four stroke engines up to 50hp

Tohatsu: Offers LPG outboard marine engines 5hp

Yamaha: Offers LPG outboard marine engines 5hp

Gas Engine Management Solutions and Retrofit Systems Manufacturers

HEINZMANN: Offers engine and turbine management solutions; dual-fuel retrofit systems for a wide range of diesel
engines to be converted to gas operation and at the same time providing all the safety features required for marine
applications.

LPG for Marine Engines, The Marine Alternative Fuel Page 126
 3.15.3. Shipyard

In relation to innovation, shipyards take a position in the role of system integrator, combining innovations from third
parties/marine equipment suppliers in an integrated ship design and construction, and are a driving force behind new
ships designs and innovations in response to market demands and in view of enhanced (fuel) efficiency. The frequency
and intensity of innovations is strongly influenced by the level of standardisation of the ship types that are being
produced (mass production versus one-off ship types).

In Europe, working in specialised (high value) niche markets in general involves an active innovation strategy (as many
ships are one-off and build on demand of clients). The technological advance enables these specialised shipyards to
retain their market position. IHC for example employs a roadmap to determine the innovations they will pursue, taking
into account market foresights, different functionalities that can be realized with the innovation, and life-cycle
opportunities. They mainly pursue process innovations as the integration of several techniques for a yard is key to obtain
a competitive advantage. These yards for instance set up collaboration programs with marine equipment companies,
universities and research institutes to study the behaviour and characteristics of ships. The presence of these actors in
a certain geographical area is seen as an advantage to build up valuable knowledge and may limit knowledge leakage
to other parts of the world. Also, marine equipment suppliers indicate the importance of having high class shipyards in
Europe in their role as integrators and proving new concepts developed by marine equipment manufacturers before
exporting equipment.

3.15.4. Classification Societies

The purpose of a classification society is to provide classification and statutory services and assistance to the maritime
industry and regulatory bodies as regards maritime safety and pollution prevention, based on the accumulation of
maritime knowledge and technology.

Classification societies are important as they set standards and supervise rules in the shipbuilding industry. In principle,
class societies check whether the products and systems on board of a ship comply or not. They set and apply technical
standards relating to the design and construction of ships and carry out extensive surveys of ships and their main
systems. The largest classification societies are Det Norske Veritas (DNV), Lloyd's Register, Germanischer Lloyd, Nippon
Kaiji Kyokai, RINA and the American Bureau of Shipping (ABS).

Recently however, classification societies have started to take a more active role in the introduction of innovations in
the area of greening ships. Det Norske Veritas, for example, jointly with Japanese shipyard Oshima Shipbuilding Co.,
started the Eco-Ship 2020 project aiming at a bulk vessel design with 50% less weight and powered by LNG. Lloyds
Register is doing a similar research with Shanghai based Bestway Marine Engineering Design. Furthermore, they have
started to partner in other R&D projects as they possess a lot of specific knowledge, potentially pushing innovations
slightly. Lloyd’s Register for instance presented some of the approaches that can be used to safely apply and integrate
rapidly advancing (green) technology on board ships. Specific attention was devoted to their work that is concentrated
on application of alternative fuels and future energy sources, such as LPG and fuel cells.

Where traditionally classification societies are called upon to decide if the end product complies with the class rules,
they are now moving up the value chain. They increasingly engage with design offices, ship yards and marine equipment
manufacturers to discuss innovations and developments that contribute to raising the ship’s fuel efficiency or reduce
its operating costs. While they may become drivers of innovation when following this track, they should carefully
address the balance between their commercial interests and their regulatory task.

3.15.5. Ship owners, Cargo owners, Ship operators

Ship owners are the main decision makers in the shipbuilding industry value chain. They are the ones that take the

Page 127 LPG for Marine Engines, The Marine Alternative Fuel
 purchasing decision and consequently the decision power to invest (or not) in innovations. Obviously ship owners also
decide where to invest. In 2008, European ship owners accounted for over half (52%) of the entire demand for new
build ships (whereas the share of European shipyards in the total global order book value at that time amounted to
13%). However, with the rise of Asian shipping companies it can be expected that there will be a shift in origin of ship
owners in favour of Asia.

Especially in view of the current shift from a seller to a buyer market the position of ship owners has further increased.
Potentially this allows ship owners to exert a major influence on the innovations that will enter a ship. They can
determine the type, and often also the brand, of engines and other specific marine equipment and thus approve the
application of innovations with regard to these items. The level to which they are interested to invest in green
innovations is strongly dependent on their own business model and decisions (e.g. capex versus opex, CSR, self-
operating versus chartering, etc.). As such they are strongly influenced by the green drivers that have been identified
earlier. At the same time, they are strongly influenced by barriers like the uncertainty of fuel price developments, split
incentive schemes, regulatory uncertainty, risk aversion toward technologies that are not proven, etc. The risk aversion
of ship owners towards new technologies seems to be valid for banks financing their new build orders.

Shipping companies are the actual users of the ships to transport goods, people or to provide other services. In the case
of passenger vessels, dredgers and offshore ships, the ship operator often coincides with the ship owner. This implies
that there is one less decision power in the value chain, which is considered beneficial to the introduction of new
innovations: the ship owner is affected by the investment costs but also by e.g. the fuel costs, making it easier to
convince them to install innovation for example to enhance energy efficiency and reduce operating costs.

In other segments, notably bulkers and container ships, ship operating companies are rarely also the ship owners, but
the two different parties have different incentives, e.g. ship owners are mainly concerned with investment costs,
whereas the ship operating companies have to bear the fuel costs. For a marine equipment manufacturer, this involves
negotiations with two parties with very different incentives, making the introduction of innovations more difficult
and/or resulting in the ship operating companies not being represented in the construction process.

Cargo owners select a particular shipping company to ship their goods. A major factor in this decision is cost. However,
recently a ‘green’ argument has gained importance and is now also influencing the decision of some cargo owners. For
example, some cargo owners demand that their goods are being transported on a ‘green’ ship. This implies that the
cargo owner can put pressure on the ship owners to do an effort in ‘greening’ the ships and thus allow innovation to
happen.

Some marine equipment manufacturers have discovered the power of cargo owners. A new strategy for them is to
approach the cargo owners in addition to the ship owners, to provide them with information regarding new innovative
products or systems. If the cargo owner has an interest in the new product or system, it helps them to sell this to the
ship owner. In this way, marine equipment manufacturers are creating a demand pull (from the cargo owners), creating
a powerful argument to convince the ship owner to invest in their innovative offer.

Ship owners have an essential role to play in creating the new infrastructure for LPG as marine fuel. Without a demand
from ship owners to use LPG as fuel, no new infrastructure will be possible. The LPG infrastructure requires a sufficient
amount of investment in new LPG-fuelled ships or the conversion of existing shipping to use LPG marine fuel. The first
adopters must be prepared to assume the risk of possibly choosing the wrong technology due to the current uncertainty
of future costs of using LPG compared to fuel oils and other alternatives.

Before ship owners will invest in LPG-fuelled vessels, they are likely to demand the following conditions:

u The price of LPG as marine fuel must be competitive compared to HFO and cleaning solutions.

LPG for Marine Engines, The Marine Alternative Fuel Page 128
 u The availability of LPG must be reliable. LPG bunkering infrastructure must be available in most, if not all, ports
used by the ship owner (assured availability).
u The regulatory framework should be clear regarding design, operations and emissions.
u Tried and tested bunkering procedures must be in place. The question of whether LG bunkering can be undertaken
simultaneously with cargo handling must be answered—bunkering must not cause delays or result in longer stays
in port.

3.15.6. LPG Distribution Companies and Associations

LPG distribution companies play the most crucial role in developing this market. If these do not invest and engage in
implementation in projects related to supply and bunkering infrastructure it is not possible for a project to be successful.

To gain larger entry to the marine market, LPG associations may have to convince decision makers of LPG’s operational,
commercial and safety advantages. LPG industry associations have to inform all stakeholders about the benefits of LPG,
offer to their members the opportunity to exchange views on the upstream and downstream parts of the LPG business
as well as facilitate engagement with marine engine manufacturers by regularly organising interactive meetings and in-
country workshops between technical experts, senior members and key stakeholders. They need to support the
development and harmonization of standards in designing, bunkering and the operational process of a marine vessel.

3.15.7. Policy Makers, Governments, Regulators

Clear, consistent, and efficient regulatory frameworks are an essential requirement for the deployment of any new
technology. In the case of marine LPG fuel transition, it is particularly pertinent, since the marine sector is subject to a
complex regulatory environment with overlapping jurisdictions that range from local to global.

When lines between diverse regulatory bodies blur, it often leads to significant barriers for industry. This situation is a
key barrier facing LPG marine deployment globally and government must be encouraged to set clear regulatory
guidelines that are essential in achieving broader and fleet-wide conversions.

Governments can assist this process by accelerating technology demonstrations and R&D funding, to improve marine
LPG technologies and enhance operational learning. The areas where policy action would be most valuable are in
addressing the regulatory and commercial barriers, which are slowing the development and deployment of cleaner
marine technologies, even when the business case is strong.

Germany’s Federal Ministry of Transport and Digital Infrastructure (BMVI) is to offer grants for companies building
or retrofitting ships to use LNG as a fuel.

The incentives are open only to new projects and for ships that will comply with IMO’s Tier III NOx limits. The ministry
is in the process of drafting the first call for proposals, through which ship operators and owners will be able to apply
for the grants. The grants are available to fund equipment for new ships with propulsion systems using LNG either as
part of a dual-fuel or pure gas configuration, or for the conversion and replacement of conventional diesel engines for
pure gas or dual-fuelled operation. Gas-fuelled auxiliary systems, such as boilers, can also be funded. The incentives are
intended to support the introduction of LNG as a marine fuel in Germany, diversify the country’s fuel base and deliver
the environmental and health benefits of switching to less polluting fuels.

3.15.8. Other Societies

In the marine sector, there are some societies that can play an active role in the introduction of innovations in the
area of greening, safe ships.

Page 129 LPG for Marine Engines, The Marine Alternative Fuel
 u International Association of Classification Societies (IACS).
u Marine engine manufacturers (MAN, Wärtsilä etc.).
u Society of International Gas Tanker and Terminal Operators (SIGTTO).
u Society for Gas as Marine Fuel (SGMF).

3.16. Engagement of Main Stakeholders

Coordinated engagement of the stakeholders is important to work towards the key objectives: Cultivate ship owner,
shipping companies, cargo owners, and government awareness of LPG as an exceptional energy source. The LPG
industry must work vigorously to create and maintain a high level of awareness regarding LPG’s unique benefits.

Case studies

u The technology group Wärtsilä is to supply the engines for a new LNG fuelled research vessel being built for the
German government. The vessel is under construction at the Fassmer shipyard in Germany and will be owned by
Bundesamt für Seeschifffahrt und Hydrographie (BSH), the Federal Maritime and Hydrographic Agency. The
contract was signed with Wärtsilä in June 2017.

u The new 75m ship, the ‘Atair’ will replace her 30-year-old namesake, and will be the first German research vessel
operating on LNG fuel. The full scope of Wärtsilä’s supply for the ‘Atair’ is two six-cylinder Wärtsilä 20DF dual-fuel
engines capable of running on either LNG or conventional liquid fuels, one six-cylinder Wärtsilä 20 engine, two
exhaust cleaning systems, and a Wärtsilä LNGPac fuel storage, supply, and control system. The engines will have
Tier III classification since the dual-fuel engines comply with this classification when running in gas mode, and all
the engines will be compliant when operating on diesel because of the Wärtsilä SCR systems.

3.17. Market Status

LPG as fuel is now a proven and available solution. In 2020 the industry hit a significant milestone with four LPG-fuelled
ships in operation. The number of ships using LPG as fuel is increasing fast and more and more bunkering projects are
planned or proposed along the main shipping lanes.

Total of 79 engines on order (April 2021)

2018 - EXMAR: 10 x 80,000m3 VLGCs

2019 – Equinor: 3 x 38,553m3 LGCs
2019 - Tinjin S.W.Southwest Maritime (TSM): 5 x 86,000m3 VLGCs
2019 - Kumiai Navigation: 4 x 84,000m3 VLGCs
2019 - Geogas: 2 x 91,000 VLGCs
2019 - Avance Gas: 4 x 91,000m3 VLGCs
2020 - NIETO: 1 x 38,000m3 LGCs
2020 - Byzantine Maritime: 4 x 38,000m3 LGCs
2020 - Hartman: 5 x 5,000m3 LPG GCs
2020 - INNO: 2 x 91,000m3 VLGCs
2020 - Petredec Holdings: 6 x 93,000m3 VLGCs
2020 - Trafigura: 6 x 84,000m3 VLGCs
2020 - Union Maritime: 2 x 84,000m3 VLGCs
2020 - BW LPG: 15 x VLGCs RETROFITS
2020 - Trafigura: 6 x 84,000m3 VLGCs
2021 - NYK Lines: 2 x 91,000m3 VLGCs

LPG for Marine Engines, The Marine Alternative Fuel Page 130
 Currently LPG powers recreational and fishing boats mainly in USA, Chile and in smaller numbers in other countries
like Italy, Germany, Spain, Ghana, Colombia, Turkey, Indonesia etc., most of them using converted engines.

Regarding large OEM engines ready to use LPG as a fuel, available today in the market are:

u MAN Diesel & Turbo Liquid ME-GIP, two stroke liquid gas injection engines.
u Wärtsilä 34G series, an Otto cycle, lean-burn, four-stroke engine, which is currently for stationary power plants
but could be used also for marine. UNCTAD/RMT/2019/Corr.1

u GE LM2500 gas turbine series.

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Page 131 LPG for Marine Engines, The Marine Alternative Fuel

as Viet Nam that are more

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 Chapter Four

Roadmap
4.1 Market Outlook on Technology Developments

The next few years are bound to change a major part of the way that the shipping industry is operating, as there will be
a tectonic shift in fuels used and as such, major conversion and retrofit projects on existing vessels, as well as planning
for future-proofing current new buildings, are
being set in motion by ship owners.

The future of marine fuels appears to be a

combination of fuel types combined with new
propulsion technologies and possibly hybrid
combinations. Given the environmental
challenges facing the marine shipping industry
to lower the exhaust emissions of SOx, NOx,
PM, and CO2, there will be changes in the mix
of fuels that shippers use as they attempt to
meet international and local exhaust emission
requirements. It will no longer be “one size
fits all.”

Image by X-Tech

Possibilities ahead:

u Engines will continue to become cleaner and more efficient, following advancements of automotive and land
industrial model counterparts.
u The use of steam turbines once favoured is no longer favoured for newly built due to the system complexity and
low efficiency. Even the LNG sector is searching for new propulsion schemes to be installed to eliminate the need
for the old-fashioned power plants. This leaves the competition playground wide-open to the diesel and gas
turbines. Nobody can precisely decide which method is the best however, the gas turbines have more advantages,
but the diesel engine is more reliable, and has good maintainability characteristics.
u Marine turbines use marine diesel oil as fuel, and in order to move a step closer to the future, new fuel resources
must be chosen in efforts for the fuelling of marine turbines to have a clean and efficient shipping industry. LPG,
NG and the hydrogen resources are the candidates for this operation.
u The move toward using LPG as a marine fuel will start to gain momentum as new environmental regulations are
enacted and bunkering facilities are expanded. According to a recent forecast by MEC Intelligence, a market insight
firm that focuses on the maritime sector, LNG-fuelled vessels amount to approximately 13% of the current
newbuild order book and estimates for the rest 2021 and beyond show continuing growth in many classes of
vessels triggering a huge growth in the market of alternative fuels. Prior to MEC’s forecast, classification society
Det Norske had predicted that gaseous fuels would become the dominant fuel source for all merchant ships
within 40 years. The reason for such growth is strict emission regulations requiring the reduction of sulphur oxides
(SOx) and nitrogen oxides (NOx) to 0.1 percent in Emission Control Areas (ECAs) by 2015 and 0.5 percent globally
by 2020. LPG/LNG, besides becoming cheaper.

LPG for Marine Engines, The Marine Alternative Fuel Page 132
 u Other technologies are also being explored. These include the use of liquid hydrogen as a fuel to generate power
within a combined fuel cell and battery system as well as solar panel and automated sail systems. At the same
time, a new range of extremely efficient low-speed two-stroke diesel engines is being introduced as more
operators take up slow steaming.
u Work with greener fuels such as LNG, LPG, solar & wind power and the stringent rigid norms about emission are
expected to observe development for the global marine engine market. Four stroke engines are registering fast
growth in the market, due to reliability, fewer emissions, smoothness, and quiet operation.
u When hybrids start appearing in the market, classic engine propulsion systems step back. In the car industry, the
future seems to be hybrid and pure electric systems. Diesel-electric hybrid marine propulsion systems exist allow
operation in “zero emission mode” for a limited time and under straight diesel power the rest of the time. A similar
hybrid system had also appeared with the addition of solar collectors to complement charge the batteries. Hybrid
power is very appealing involving the familiar internal combustion engine, which reduces also development costs,
however, when it comes to marine, it should not be excluded that internal combustion engine may need to be
abandoned entirely for something different, like the fuel cell driving electric motors, and perhaps in the future a
fuel cell fuelled with LPG.

Fuel Technology and Compatibility

Different type of fuels can be used in different type of main machinery technology. LPG can match with both fuel cell
and potentially with different types of gas engines, i.e. two-stroke dual-fuel engines (high pressure), four-stroke, pure
gas, spark ignition engines (low pressure) and four-stroke, dual fuel engines (low pressure).

2 stroke slow Dual fuel 4 stroke Pure Gas

Fuel cells Hybrid Electric
speed engine medium speed Engines
•HFO •LNG •MDO/MGO •LNG •LNG •HFO
•MDO/MGO •LSHFO •LPG •LPG •Hydrogen •MDO/MGO
•LSHFO •LPG •Methanol •LSHFO
•LPG •LPG •LPG

4.2 Market Outlook on Regions

Asia-Pacific: Most Lucrative Market

Asia-Pacific is the most lucrative marine LPG propulsion engine market, owing to an increase in shipbuilding industries
in China & South Korea and growth in number of joint ventures with international brands. Moreover, rise in seaborne
trade of crude oil mostly from Middle East countries to Asia-Pacific is another factor that drives the Asia-Pacific marine
propulsion engine market and boosts the demand for marine engines. Due to the ship building activity in Asia Pacific
region, countries such as China, Japan, and South Korea have become the largest marine engine market. An additional
factor attributing to the growth would be the rise in maritime trade in South East Asia set up by China and other
emerging economies in the region such as Indonesia. Countries such as Japan, China, and South Korea established more
than 80% of ship building facilities.

In Europe and North America, the presence of many industries such as commercial vessels, offshore support vessels,
and inland waterways vessels has boosted the demand for marine engines in these regions. Investments have increased
in the marine engine market due to the existence of some of the world’s largest manufacturing sites of marine engines
in North America and Europe regions. The new applications being considered on regular basis and clean fuel
technologies being developed are rapidly changing in the U.S.A.

Page 133 LPG for Marine Engines, The Marine Alternative Fuel
 In the Middle East, the presence of several industries such as commercial vessels, offshore support vessels, and inland
waterways vessels has boosted the demand for the marine engine in the region. As a result of government initiatives,
regulation and policies, the Middle East marine engine market is expected to grow rapidly in the upcoming years.

4.3 Barriers to Growth

There are several specific barriers/drivers, which determine the size of the market opportunity. Key issues are
highlighted below. The Recommendations Chapter proposes suggestions to overcome these barriers.

4.3.1 Customer economics: investment for ship owners and economics for fleet operators
Upfront cost is consistently raised as the single biggest barrier
to market entry for new technologies. The cost of R&D to bring
new technologies to maturity can often be prohibitive.

Cost is the primary decision factor for the majority of ship-

owners, shipping companies and cargo owners. With strict
budgetary pressures, many customers remain focused on
immediate cost rather environmental factors, although in the
large marine shipping sector, the IMO continuously increasing emissions reduction requirements are. Having said that,
it is worthwhile to note that the upfront installation costs of an LPG fuelled system compared to an LNG equivalent
one is significantly lower.

Representative conversion costs to accommodate LNG can be as below, with the equivalent for conversion to LPG
estimated at around 50% lower.

u Tug with 2 X 1,500 HP: about $6 million.

u Ferry with 2 X 3,000 HP: roughly $10 million.
u Bulk Carrier with 2 X 5,000 HP: about $20 million.
u New construction incremental costs are projected to be somewhat less than conversion costs.
Cost Associated with Converting Marine Vessels to LNG Operation
Split incentives act as an impediment to the widespread adoption of LPG bunkering as in many cases, the fuel is paid by
the charterer. It is the reduced fuel costs that pay the investment back. When these reduced fuel costs (operating costs)
are not returned to the ship-owner, the investment will not directly be paid back.

LPG as a fuel would be most suited for newbuilding since the incremental investment costs are lower. Perhaps the single
biggest challenge for the LPG sector to overcome is that associated with long-term future pricing. LPG prices tend to be
quite volatile, with a significant element of ‘seasonality’ in year-round pricing associated with varying supply and
demand profiles. Therefore, as discussed later in the report, an explicit recommendation of this study is to consider
mechanisms which can be used in order to reduce the risk of future LPG price volatility, and thus improving the
confidence of end-consumers of the fuel.

New Ship Construction Premium

The cost of building a new ship powered by natural gas has a premium over the construction cost of a conventional ship
with fossil fuel. There is a cost increase for the gas engine and another for the gaseous fuel system and associated LNG
storage tanks.

LPG for Marine Engines, The Marine Alternative Fuel Page 134
 For example: A Germanischer Lloyd (GL) study in 2009 noted an additional investment of 25% over that of the cost for
constructing a typical new container ship. According to a DNV report, if a ship spends more than 30% of its operating
time in an ECA, the cost of gas-fuelled engines can be justified.

Increased Safety Requirements

The carriage of LPG as a fuel entails additional safety requirements over fossil fuels and results in construction features
that are reflected in a higher construction cost. Safety-related costs include approvals (classification), and crew training
and education.

Overall costs besides the initial acquisition cost or the cost of the fuel system modification depend largely on the relative
price of LPG vs other fuels. In the case of dual fuel diesel LPG engines, the economics and cost benefits depend also on
the amount of diesel fuel that is substituted across the full operational cycle of the engine as well as the world long term
LPG supply.

4.3.2 Positioning LPG to policymakers and decision makers: Need to be on a level playing field with other
alternative fuels

Policy makers such as legislators and governments at local, regional, national and EU level need to show clear support
for LPG. Without the support from politicians at all levels, it will be difficult to set up the necessary infrastructure. The
policies promoting alternative fuels must be long-term in vision, and the supporting legislation should be harmonised
and implemented fairly and consistently across countries and different types of technology. In the early stages of
implementation, some form of public financial funding or incentive schemes will be probably being required to support
the initial investments in LPG vessels and If LPG marine engines are to reach potential market they need to be recognised
and given fair treatment to other technologies e.g. based on their primary energy efficiencies carbon saving potential.
This is an on-going process in many regions. Regulations and incentives need to be finalised for inclusion of LPG in
marine engines. These regulations need to take into account the use of LPG as a fuel.

On the other hand, for policy makers to take a standpoint and make important decisions, they will need credible and
unbiased information on LPG as a potential clean marine fuel, addressing both the risks and benefits regarding health,
safety and environment. Input to the process must be of high quality to support policy making decisions. The political
decision makers must have a realistic view of the technical and financial challenges posed by LPG and possible
implications for the other stakeholders.

As the market for marine engines is global, international regulations apply. International standards or regulations are
also important to help ensure that these systems are safe, reliable and in compliance with emissions regulations. There
is a lack of safety regulations for ship-to-ship transfer and for bunkering while passengers are on board.

4.3.3 Technology Development of new engines: In the recreational sector, there is a slow rate with
limited growth. In big vessels, there are few early development projects under development

At present, there is a lack of marine LPG engines. The development of engines with other competitive fuels and
technologies has largely overpassed those with LPG. A significant part of the market potential for LPG marine engines
is currently based on the expected technology developments, which will widen applicability. If this does not happen as
expected the market potential will be very limited and growth may even stop altogether. Major manufacturers are
hesitant in developing LPG versions of their models. This is probably the most important hurdle today. R&D investment
is absolutely key.

Page 135 LPG for Marine Engines, The Marine Alternative Fuel
 4.3.4 Commercialisation of new engines: Sales, servicing and maintenance networks are required

For new engines, partnerships need to be developed or acquired through partnerships with bigger companies.

4.3.5 LPG Awareness/Perception for decision makers: Shared Vision with LPG marine engines,
Equipment and Engine manufacturers, Naval Architects, Ship owners, Ship operators and All Types
of Users as a Preferred Option

Raising awareness of the existence of marine engines, possible applications and their market potential is the first major
challenge. Communications initiatives are needed in order to expand LPG’s position as an important alternative fuel
and to increase sales.

4.3.6 Bunkering Infrastructure: Development of bunkering infrastructure uncertainty of LPG supply and
bunker price makes it difficult for a ship-owner to invest on LPG-fuelled ship

For LPG to become an attractive fuel for the majority of ships, a global network of LPG bunkering terminals must be
established or LPG-fuelled ships will be limited to coastal trades where an LPG bunkering network already exists. The
situation is sometimes described as a “chicken-and-egg” dilemma. Until the bunkering infrastructure is in place, ship
owners may not commit to LPG fuelled ships and vice-versa. For short sea shipping, the filling stations on key ports are
lacking. It should be investigated the possibility of movable tanks to be trucked on board a barge or a LCM (landing craft)
and used for refuelling ships.

What remains as the biggest hurdle for the establishment of an LPG bunkering market is the uncertainty regarding the
actual LPG bunkering price and the relative price compared to the other bunkering fuels. Will the relative
LPG price be sufficiently low for ship owners to have a positive business case when investing in an LPG-fuelled ship and
thus generating LPG demand and will it be sufficiently high for the bunkering fuel supplier to have a positive business
case.

Small scale shipping is facing severe barriers on its way to LPG

u High equipment costs due to high safety requirements, currently small target market, limited development
activities & high component prices.
u Limited range of available engines.
u Lack of small-scale bunkering facilities.
u Missing harmonisation of LPG-coupling and transfer equipment (link between delivering facility and receiving
vessel).
u Rules and regulations (e.g. IGF code) for vessels and legal framework for LPG bunkering infrastructure not finalised
yet long and expensive permitting processes.
u Education and Training of LPG handling crew.

Other constraints

Terminal operators

u The terminal operators are independent companies building and operating the LPG terminal on the port premises,
where the LPG will be stored and distributed to different customers. If this step is not managed by the port or the
gas supplier, the LPG infrastructure demands the support of a competent terminal operator who can establish and

LPG for Marine Engines, The Marine Alternative Fuel Page 136
 run the terminal and offer a realistic contract model for gas suppliers regarding quantities and contract length
(short-term versus long-term).
u Terminal operators will require sufficient user demand with the potential economies of scale offered by different
types of gas users such as the energy sector, manufacturing industries, shipping, and land transportation (car,
trucks, and so on.). Moreover, the regulatory framework should be in place, and external funding may also be
necessary to persuade potential operators to commit to investing in a new terminal.

Ports

The ports are a crucial part of the LPG supply chain. From a sustainable LPG infrastructure perspective, enough ports
must make locations available for small-scale LPG terminals and bunker facilities. The port authority needs to establish
local regulations and port by-laws, approved by other relevant authorities. In addition, the ports may be a possible
source of funding for investment support.

Page 137 LPG for Marine Engines, The Marine Alternative Fuel
 4.4 Market Potential

Several high-level market characteristics are identified which create a strong potential for LPG Marine Engines.

Offshore Renewable trends Offshore renewable energy is a major greening trend. This estimate is
based on the number of ships required for constructing and operating the
planned parks, including installation vessels, cable layers, support vessels
(maintenance, crew accommodation and crew transfer), and repair
vessels, as well as the manufacturing of foundations (jackets), platforms
and other components. Given that such initiatives are also being
undertaken in Asia and North America, the scale of market potential
could increase further.
The regulatory drive towards CO2 A large percentage of the current fleet is quite old and may not comply
abatement initiatives in the light of with the strictest environmental rules; therefore, retrofit opportunities
2020 regulations might arise from green regulatory drivers. Existing ships that do not have
dual tanks may have to be retrofitted with dual fuel systems, so they can
perform fuel switching when they enter an ECA.
Attractive LPG price The decline in oil prices and the corresponding decline in propane prices
in 2014 and 2015 provides a window of opportunity for fleet operators

Global Trade and industrial market Commercial and industrial markets are growing following increased LNG
growth and Shale gas production mainly in the USA.
The US exports and the growing worldwide supply (Australia/East Africa)
as well as development of new markets create opportunities for LPG
vessels built, which could use LPG as propulsion fuel.
Adequate supply pf LPG product The global LPG fundamentals in 2017 are shaping up to be bullish.
U.S.A. LPG output from natural gas processing plants more than doubled
between 2010 and 2017 due to the shale boom. With domestic demand
effectively static, the surplus is largely destined for overseas markets, and
bunkering.
Iraq confirmed the increase in LPG production.
Based on our projections for supply and demand for the balance of the
coming years we expect the market to continue to move to surplus.
Increasing awareness of the The most important aspect of market transition from the entry stage to
advantages of new technologies the early stage is the growth of confidence in the new technology among
all key stakeholders—LPG users, companies, naval architects, investors,
policy makers and Government. Due to rapid growth of LNG technology
many stakeholders have created opportunities for the quicker and easier
adoption of LPG.
Increasing number of new ship orders All new ships are expected to follow a trend towards higher fuel
complying with regulatory efficiency, partly driven by the increasing fuel prices but also by
developments for marine emissions regulatory measures (EEDI is seen as a minimum level). Two main areas
of market potential are fuel efficient systems and alternative fuel-based
solutions. For newbuilding, the market potential can be considered
large. An accelerated replacement of vessels, driven by fuel efficiency, as
is observed in some market segments (viz. containerships), may occur.
However, this is difficult to quantify, given that at the same time this is
hampered by the relatively young age of the existing world fleet.

LPG for Marine Engines, The Marine Alternative Fuel Page 138
 4.4.1 Target Regions

LPG is expected to witness significant growth in the near future owing to increasing alternative fuels demand mainly in
the shipping sector to minimise environmental concerns such as carbon emission levels and pollution levels. In addition,
it is one of the cheapest energy sources, which makes it more suitable than diesel and gasoline in the global
transportation industry.

Based on the analysis of the market characteristics across major region, the figure below identifies core regions where
LPG marine fuel could be targeted.

Regions
Type of Vessel South Rest of the
USA Europe Middle East Asia Canada
America world
Commercial
XX XX XXX X XX X
Vessels XXX
Cruise Vessels XX XX XXX X XX XX X
Ferries XXX XXX XXX X X XX XX
Recreational
XXX XXX XXX XX XXX XXX XXX
boats
Fishing Boats XX XX XXX X X XXX X
Supply and
XXX XX XX XXX XXX XXX X
Service Boat
Dredgers XXX XXX XXX XXX XXX XX X
Tugs XXX XXX XXX XXX XXX X X
Naval X X X X X X X
Offshore
XX XX XXX XXX XXX X X
service

XXX= High priority, XX = Medium priority, X = Low priority

Page 139 LPG for Marine Engines, The Marine Alternative Fuel
LPG for Marine Engines, The Marine Alternative Fuel Page 140
 4.4.2 Target Boat/Ship Segments

As the shipping industry considers alternatives to HFO, part of the market will shift toward MGO, part toward LNG and
LPG and some possibly to liquid biofuels.

u Marine vessels equipped with scrubbers will retain the advantage of using lower-priced HFO.
u Shipping that takes place outside ECA areas might choose.
u HFO or LSFO depending on future global regulations.
u Ships operating partly in ECA areas will probably choose MGO as a compliance fuel.

Heavy shipping within ECA areas, however, might require a complete shift to LPG

The choice of fuel lies primarily with the charterer (the shipping agent) who, in principle, rents the vessel from a ship
owner. Depending on the engine type, the charterer then has a choice of fuels. Typically, high-sulphur residual fuels or
low-sulphur distillates are among the choices. Depending on the abatement technologies installed by the ship owner
and the requirements set by the authorities in the specific region of operation, the charterer then selects and acquires
the fuel.

The choice of fuel for large freight vessels is basically on the charterer, who also must select a vessel for each transport.
The choice of fuel is then affected by many factors, such as emissions requirements on the selected route, the fuels’
availability and price, and the abatement equipment installed on the ship. The contract duration will influence the
owner’s decision on whether to retrofit abatement equipment.

Other segments (groups of customers) are private boats, fishing boats, ferries, etc. that will have a shift to LPG

In terms of global fuel use, however, freight vessels are dominant

LPG fuel is most suitable for the following ship types:

u Ships & boats with a set route and short range (4,000 nm or less) – storage tank capacity is not overly large & fixed
bunkering port can be established (Ferries, Coastal ships & tugs).
u Ships that operate mostly within an ECA – low emissions are required.
u Ships without high fuel consumption rates – required storage capacity is practical and bunkering time & frequency
is not high.
u Ships that trade where a source of LPG is available.
u Ships intended for cross ocean passages designed to use LNG in ECA only need a means to effectively utilize BOG
when mid-ocean and heavy fuel is the primary fuel.

The processes and dynamics differ considerably by type of ship or equipment component.
u Passenger vessels (both cruise and ferry ships will be addressed) .
u Dredgers.
u Recreational boats.

These three segments are considered of high priority because of their importance for the EU and proximity within ports
and ECAs.

Page 141 LPG for Marine Engines, The Marine Alternative Fuel
 Based on the current situation of LPG-fuelled ships, a SWOT analysis is used to map internal and external influence
factors with no hierarchical structure that reveal the development potential of this market.

Strengths Weaknesses

• Full compliance with current and future SOx emission • Variety in Engines Availability
requirements, including ECA and CECA areas • Currently fossil fuel derived
• Reduction of all other pollutant emission • Increase in volume of fuel tank
• Environmental excellence
• Operational efficiencies
• Cleaner engines, cheaper maintenance
• Adaptability to major vessel engines
• Easy storage, faster refuelling
• Wide availability of bunker ships and facilities
• Economic efficiencies-Low OPEX and CAPEX cost
• Savings from reduced fuel consumption
• More efficient engines and cheaper to maintain
• Abundant LPG reserves worldwide

Opportunities Threats
• Government supporting policy • No infrastructure for LPG-fuelled ships
• Strict emission restriction • Lack of standards and regulations
• National strategies of optimising energy structure • Lack of Class rules and notations
• Support from state-level research projects

LPG for Marine Engines, The Marine Alternative Fuel Page 142
 Chapter Five

Recommendations
The Roadmap section above identified the critical barriers to market uptake for marine engines with LPG. In this section,
recommendations on how each of these barriers can be overcome are presented, and which type of market actors have
a role to play.

The summary table below indicates the varying roles of each type of stakeholder in overcoming the barriers to market
growth. Each barrier is explained in detail in the text after the table.

Roles are differentiated between “Lead Role” (the actor(s) is critical in overcoming the barrier), and the “Support Role”
(the actor(s) can support but is not the critical element in overcoming the barrier).

Key: XX = Lead Role; X = Support Role.

Market Actor

Barrier LPG Engine Manufacturers Shipping,

Industry
Distributors, Naval Architects Bunkering Government
Associations
Suppliers Shipbuilders Industry
Customer economics X XX XX XX
Positioning LPG to
policymakers and decision XX X X X XX
makers
Technology development
X X XX X X
of new engines
Commercialisation/getting
X X XX X
products to market
LPG
XX X X X X
Awareness/perception
Bunkering Infrastructure X XX X X X

5.1. Customer Economics- investment for ship owners and economics for fleet operators the Greatest
Challenge

u Providing subsidisation could bring down the upfront cost. ROLE OF GOVERNMENT.
u Lobbying to ensure that LPG as engine fuel in marine industry receives a fair incentive rate to be on a level playing
field with other competing technologies such as diesel, CNG, LNG, will ensure that an LPG engine is considered as
a preferable option. ROLE FOR INDUSTRY ASSOCIATION.
u Manufacturers of engines, equipment, to integrate LPG options from the beginning with the naval architects to
avoid subsequent modifications and added costs. ROLE FOR MANUFACTURERS, NAVAL ARCHITECTS.
u Price indexing and the wider use of long-term LPG contracts can be used to help mitigate the risk of wide LPG
price fluctuations, and its associated unpredictability. This would give existing and new customers greater
confidence in future fuel prices of the fuel and therefore in the future commercial viability of their operations. The

Page 143 LPG for Marine Engines, The Marine Alternative Fuel
 use of longer-term contracts is more common in LNG markets than in LPG. LPG is more exposed to, for example,
seasonal changes and short-term shifts in the supply-demand balance. In addition, while diesel prices are generally
higher than those of LPG currently, the volatility can often mask this feature in the eyes of end users. ROLE OF LPG
DISTRIBUTORS, SUPPLIERS.
u Engine manufacturers will create cost-reduction potential by lowering upfront costs, improving system efficiencies
(engines, powertrains), with running cost benefits. ROLE FOR ENGINE MANUFACTURERS.
u Providing incentives will bring down either upfront costs or running costs. ROLE OF GOVERNMENT.

5.2. Positioning LPG to policymakers and decision makers: Need to be on a level playing field with other
alternative fuels
u Lobbying to ensure that LPG powered engines in single or dual LPG/diesel mode are included in regulatory
framework and incentive schemes. This should cover the whole marine operation chain. Primary role for the
associations and LPG companies to make policy-makers aware of the benefits of LPG, their safety and the potential
of this technology. ROLE FOR ASSOCIATIONS.
u Contacting various societies such as International Association of Classification Societies (IACS), Society of
International Gas Tanker and Terminal Operators (SIGTTO) and Society for Gas as Marine Fuel (SGMF) to promote
the use of LPG as marine fuel. ROLE FOR ASSOCIATIONS.
u Lobbying to ensure worldwide standards and certification regulations for OEMs and retrofit technologies.
Associations, LPG companies and manufacturers must ensure that policy-makers and regulators develop safe,
reliable regulations and in compliance with new emissions requirements. ROLE FOR ASSOCIATIONS.
u Position LPG as a fuel in the marine industry will be a complex and long-term challenge to tackle effectively, with
multiple facets to it. LPG industry should develop and communicate a detailed vision of the role of LPG in marine
fuel’s future. ROLE OF ASSOCIATIONS.
u Developing safety measures to allow bunkering while passengers on board. ROLE OF ASSOCIATIONS.
u Supporting efforts to develop revised regulations. ROLE OF ASSOCIATIONS.
u Support shipyards to encourage vessel conversions to LPG fuelled and LPG fuelled new builds. This could help
countries to develop a sustainable niche in the global shipbuilding sector. ROLE OF GOVERNMENT.

5.3. Technology Development of new engines and ship designs: Big vessels - few early projects under
development. Recreational sector - slow rate with limited growth.

u Investment in R&D to support and accelerate the development of LPG fuel technology in Marine Engines and
maximise its potential vessel types. This is probably the most important enabler at present since development on
other competitive fuels and technologies has largely overpassed those of LPG resulting in a serious lack of LPG
engines. If this does not change rapidly, enormous opportunities will be lost. This could include investments to
adapt existing LNG fuelled engines to run on LPG. Besides investment, a long-term vision of what the market
requires is needed. Primary role for engine manufacturers but also largely for LPG distributors. There could be a
role also for policy makers by making R&D funding available to develop new product concepts suited to their
markets. ROLE FOR MANUFACTURERS (to develop), LPG DISTRIBUTORS, POLICY MAKERS (to assist with funds),
ASSOCIATIONS (to facilitate).
u Market analysis to identify which markets, market sectors and applications have most potential, types of marine
engines needed and what R&D developments should be made to ensure that the technology is well-suited to
future needs and trends. ROLE FOR MANUFACTURERS, LPG DISTRIBUTORS AND ASSOCIATIONS.
u Fuel quality to be harmonised to serve as basis for engine and technologies development and reliable and
consistent engine performance. LPG companies to ensure consistent delivery of good quality fuels. ROLE FOR LPG
DISTRIBUTORS, SUPPLIERS.

LPG for Marine Engines, The Marine Alternative Fuel Page 144
 u New design and technical development more demanding footprint on-board of vessels takes up commercial
space. Pursue new designs of tanks and powertrain installations; reconsideration of safety measures. ROLE OF
NAVAL ARCHITECTS, SHIPBUILDERS.
u Developing international standards for marine engines and waterborne vessels to be shared across the marine
industry. ROLE FOR ASSOCIATIONS/ GOVERNMENT.
u Lobbying to support the emissions requirements/technologies and to ensure legal compliance. ROLE FOR
ASSOCIATIONS.

5.4. Commercialisation & Getting Products to Market

u Support with developing partnerships for designing new engines and powertrain systems. Role of the associations
to put main stakeholders in the ship building value chain in touch with partners to develop partnerships. ROLE FOR
LPG DISTRIBUTORS AND ASSOCIATIONS.
u Expanding offerings to include LPG marine engines via existing design channels ROLE FOR MANUFACTURERS AND
ASSOCIATIONS.
u Market research to identify which market segments to target and what drives and motivates those customers in
their decision-making process in deciding the type of fuel and engine to be used. ROLE FOR ASSOCIATIONS, LPG
DISTRIBUTORS and MANUFACTURERS.

5.5. LPG awareness for decision makers: Shared vision with marine engine manufacturers, naval
Architects, designers, ship owners, ship operators and traders need to be considered

u Stakeholders need to continue to collaborate and use the findings of this project to support current and proposed
marine LPG initiatives. There are major potential environmental and economic benefits to be realised if LPG is
adopted as a marine fuel. ROLE OF ALL STAKEHOLDERS.
u Developing a consistent vision for marine engines to be shared across the industry, with end goals and interim
steps. The goals could be to target marine engine developers and reach specified market penetrations for marine
vessels. ROLE FOR ASSOCIATIONS and LPG DISTRIBUTORS.
u Marketing/awareness-raising activities involving for example information dissemination demonstrating real
technology performance, applicability and potential, targeted marketing events for ship-owners and operators,
engine manufacturers, information/training events, sector exhibitions, etc. ROLE FOR ALL MARKET ACTORS:
ASSOCIATIONS, LPG DISTRIBUTORS.
u Collection of market data of LPG marine engines emission data to demonstrate the contribution LPG engines are
making to carbon saving targets etc., to be targeted at governments. ROLE FOR ASSOCIATIONS and LPG
DISTRIBUTORS.
u Publishing information documents and materials (brochures, charters of benefits etc.) with all types of related
information, including safety, easily accessible to the stakeholders to increase understanding and address potential
concerns related to LPG.

5.6. Bunkering Infrastructure: Development of bunkering infrastructure, uncertainty of LPG supply and
bunker price, a concern for a ship-owner to invest on LPG-fuelled ship

u Expand bunkering network to develop extensive bunkering infrastructure and dedicated vessel refuelling facilities.
For short sea shipping, the filling facilities in key ports are lacking. ROLE OF LPG DISTRIBUTORS.
u Provide incentives and funding support for pilot projects, technology developments, etc. ROLE OF GOVERNMENT.

Page 145 LPG for Marine Engines, The Marine Alternative Fuel
 u Consider underutilised LPG carriers to be brought to use to function as bunkering stations. Ship to ship loading
of LPG is a realistic prospect for bunkering LPG from an LPG carrier. ROLE OF SHIPPING/BUNKERING INDUSTRY,
LPG DISTRIBUTORS.

Appendices
Appendix 1

Hybrid Propulsion Packages

LPG for Marine Engines, The Marine Alternative Fuel Page 146
Page 147 LPG for Marine Engines, The Marine Alternative Fuel
 Appendix 2

Assumptions

• System Life expectancy 20 years Temporary Increase of LSFO-HFO

differential
• Initial Fuel Cost 2020 (2.4% annual
Fuel Differential HFO LSFO MGO
increase)
2020 300$/ton 500$/ton 550$/ton
• HFO: $320/mt, LSFO: $490/mt, MGO:
$540/mt. 2021 315$/ton 515$/ton 565$/ton

LPG as Fuel: Techno-

2022 330$/ton 530$/ton 580$/ton
• LPG as fuel: 440 $/mt equivalent to 1 mt
2023 $345$/ton 545$/ton 595$/ton
MGO
2024 355$/ton 560$/ton 610$/ton

economic study 2025 360$/ton 575$/ton 625$/ton

Life Cycle Cost Analysis (LCCA)

10 | LPG as fuel; Techno-economic study

8 | LPG as fuel: Techno-economic study

Assumptions (Cont’d) LCCA Results

Main Engine Seagoing Maneuvering Port/Anchorage • 27% of time per year in ECA zones • Simple Payback Period:
Number Operating 1 1 0
• As advised by M/E makers 10% gain in
Load (%) 75% - 90% 10% - 30% 0 consumption in gas mode. Based on this, SPP M/E Only
Annual Running Hours 6,720 240 0
and $440/t LPG, annual saving $590,000

Auxiliary Engine Seagoing Maneuvering Port/Anchorage Compliant Fuel vs 2.73 years

Number Operating 1 2 2**
LPG
Load (%) 35% - 55% 35% - 50% 75**%
Annual Running Hours 6,720 240* 6,037**

• * Total hours for 2 A/E running

• ** Total of Port and Other (load-discharge-cooling of cargo). ¼ of time with 3

A/E has been added in hours to the 2 A/E
Auxiliary Boiler Seagoing Maneuvering Port/Anchorage
• Discounted Payback Period:
Number Operating 0 1 1

Load (%) - - -
LPG Discounted Payback
Annual Running Hours 0 240 763*
Period

• * Total of port and other (load-discharge cooling of cargo) M/E Only 2.8
Fuel Consumption M/E A/E A/B

Seagoing 1.90 mt/h 0.15 mt/h 0 mt/h

Maneuvering 0.63 mt/h 0.31 mt/h 0.23 mt/h

Port/Anchorage 0 mt/h 0.46 mt/h 0.23 mt/h

10 | LPG as fuel: Techno-economic study 11 | LPG as fuel: Techno-economic study

Sensitivity to No. of Days at Sea

LCCA Results (Cont.) • ROI (Return On Investment - % per
year);
(Annual Profit x 100) / Capital • Effect on discounted payback period from varying the
Investment
LSFO-LPG differential and the annual days at sea from 105
• Life Cycle Cost • NS (Net Savings);
to 305, for the LPG conversion
Analysis indexes NS is a current value expressing the
net lifecycle benefit after costs are
subtracted
• SIR (Savings to Investment Ratio)
Present Value of Operational Saving/ © Gonzalo Jara / Shutterstock.com
Present Value of Additional
Investment Cost over the life of the
investment
• AIRR (Adjusted Internal Rate of
Returns);
((1+r)*(SIR)^1/N)-1 with r the rate of
reinvestment and N the number of
anticipated lifetime of the investment
(15 years in this case). A measure of
annual percentage yield from an
investment
13 | LPG as fuel: Techno-economic study

12 | LPG as fuel: Techno-economic study

LPG for Marine Engines, The Marine Alternative Fuel Page 148
 Abbreviations

BOG “Boil-Off” Gas

CO2 Carbon Dioxide
CODAG Combined Diesel and Gas
COGES Combined Gas and Steam
DFDE Dual Fuel Diesel Electric
DNV Der Norske Veritas
ECA Emission Control Area
EEDI Energy Efficiency, Design Index
GHG Greenhouse Gas
HFO Heavy Fuel Oil
IACS International Association of Classification Societies
IMO International Maritime Organization
LNG Liquefied Natural Gas
LSHFO Light Sulphur Heavy Fuel Oil
MARPOL International Convention for the Prevention of Pollution from Ships
MDO Marine Diesel Oil
MFO Marine Fuel Oil
MGO Marine Gas Oil
NG Natural Gas
NOX Nitrogen Oxides
PM Particulate Matter
PWC Personal watercrafts
ROI Return on Investment
SCR Selective Catalytic Reduction
SGMF Society for Gas as Marine Fuel
SIGTTO Society of International Gas Tanker and Terminal Operators
SO2 Sulphur Dioxide

Page 149 LPG for Marine Engines, The Marine Alternative Fuel
 Copyright

© 2021 World LPG Association.

All rights reserved. Neither this publication nor any part of it may be reproduced, stored in any retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the
prior permission of the publishers.

All information in this report is verified to the best of the authors’ and publisher’s ability. However, the accuracy of the
data contained in the report cannot be guaranteed, and no responsibility can be accepted for any consequence of their
use.

LPG for Marine Engines, The Marine Alternative Fuel Page 150
Page 151 LPG for Marine Engines, The Marine Alternative Fuel