Low Cost LNG Retrofit (LCLR) Challenge Challenge Briefin… · Low Cost LNG Retrofit (LCLR) Challenge JOINTLY ORGANISED BY: NTU, THROUGH ITS MARITIME ENERGY & SUSTAINABLE DEVELOPMENT

Low Cost LNG Retrofit (LCLR)

Challenge

JOINTLY ORGANISED BY:

NTU,

THROUGH ITS

MARITIME ENERGY & SUSTAINABLE DEVELOPMENT (MESD)

CENTRE OF EXCELLENCE

SHELL EASTERN TRADING (PTE) LTD

DNV GL

July 2018

Low Cost LNG Retrofit Challenge

Scope

1. Background2. Challenge Objectives3. Eligibility4. Participation5. Partners & Mentoring6. Challenge Specifications7. Case study8. LCLR Ship Information9. Evaluation & Submission10. Prizes and Awards11. Intellectual Property (IP)12. Requirements on Shortlisted Participants13. Timeline


Background

The maritime industry is facing increasing social and regulatory pressures toreduce the pollutants emission such as SOx, NOx and PM (ParticulateMatter). LNG (Liquefied Natural Gas) powered vessel is one of the solutions.

One of the key challenges in adoption of LNG is the high CAPEX. Toovercome the challenges in economical LNG retrofit, revolutionary changesin design through bold new creative approaches are necessary.

In view of the above, NTU, Shell and DNV GL have come up the initiative toorganize a LCLR Challenge to seek and award revolutionary ideas from allIHLs and RIs in Singapore.


Challenge Objectives

To seek revolutionary ideas from all interested individuals and teams from institutions of higher learning (IHLs) and research institutions (RIs) in Singapore to support cleaner

future marine vessels and achieve a quantum cost reduction in LNG retrofitting solutions* with the aim to

encourage local marine industry to challenge conventional designs and thinking.

* Vessels being retrofitted to LNG powered


Eligibility

1. Open to all interested individuals and teams from IHLs and RIs in Singapore.

2. Participants from companies only are notaccepted.

3. Participants are encouraged to form teams with companies.

4. The employees and immediate family members of the Organisers and the members of the Judging Panel are not eligible to participate.

5. No restrictions on nationality or age.


Participation – Team or Individual

As an Individualo Judged based on the

same criteria as team.o Communications made

directly to the individual.

As a Teamo No restrictions on the

number of members.o Comprise individuals or a

combination of individuals with companies.

o An individual may serve on more than one team.

o Team leader is the primary point of contact.


Participation – Partners

1. Organizers have invited four companies as partnersto mentor the participants.

2. Participants are advised to attend the mentoringsession given by the partners to enhance theirideas.

3. The partners will conduct mentoring sessionsarranged by organizers.


Participation – Approach

Participants

Sembcorp

Keppel

Wartsila

WinGD


1. Mentoring is carried out betweenparticipants and the panel membersthrough scheduled sessions.

2. The sessions are conducted jointly andindividually.

3. The participants are not tied up withany partner.

Participation – Mentoring

Partners Participants


1. Organizers will arrange scheduled mentoring

sessions based on availability and enquiries

collected.

2. All partners will be invited to conduct mentoring

session at organizers’ premises.

- Mentoring starts with a joint session to all

interested participants by the partners.

- Individual sessions will be conducted

subsequently between participant team and

partners.

Challenge Specifications - Overview

Participants are required to choose one of the following vessel type and size and work out solutions to enable low cost LNG retrofit.

Vessel Type and Size

1) Tankers (Aframax)2) Container (ULCS)3) Bulk Carrier (Capesize)


Yard infrastructureInstallation methodology

Practical aspectsOperationsSafety and hazards

Rules & regulationsIndustry guidelinesLNG handling procedures

Existing tanks on vessel?Existing space?Material compatibility?

Tank type?Tank structure?Vessel size?

Combination?Optimization?Improvements?

LNG retrofit kitInstallation processOperating temperature and pressure

???...

Challenge Specifications - Considerations

Cost optimization

Tank size ~ bunker frequency ~ extra cargo carrying capacityInstallation downtime ~ labour/material cost ~ extra steaming cost ~ charter hire cost etc


Case Study 1 – Container Feeder

Considerations

1. Vessel type & specifications

2. Trade routes and bunkering profile study

6. Engine Modification Possibilities

7. Decisions on LNG tank

8. Retrofitting cost

9. Further study

- Payback vs other technologies

- Future scenarios (bunkering, infrastructures…)

Case descriptionTrading: Baltic Conversion: main engine to dual fuelOperation: 100% LNGBunkering: twice per round trip (14 day)

Reference: A cost efficient fuel option? a DNV GL presentation, 15th May 2014

Vessel specsCapacity: 1000 TEULength O.A.: 152 mBreadth MLD: 24 m

Strict ECA SOx emission rules (0.1%) has been implemented since 2015.


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LNG tank location1. Class requirement2. Double wall vacuum insulated pipes3. Shore connection4. Stability calculation

Engine modifications1. Reduced engine output

from 9.6 to 8.0 MW.2. Ability to be converted3. Cost efficiency (AE is less

economical).4. Exposure of vessel to

new area.

LNG tank sizing1. 100% burning LNG2. Weekly bunkering3. 85% utilization4. 5% consumption margin5. 15% safety buffer for propulsion6. Range flexibility7. Fuel availability along the route



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CAPEX estimate1. Tank & tank connection

space.

2. Bunkering station.3. Automation & interfacing.4. Yard cost may vary.

Further study1. Projected payback period vs

scrubber and fuel switching.2. Future fuel availability (slot

contract, compatibility…)



Case Study 2 – Oil Tanker

Case descriptionNew build MR tanker with full DF capabilitiesDead weight: 51,500 dwtLength O.A.: 183 mBreadth MLD: 32 m Operational profile

Total distance (round trip): 10,300 nmDistance in ECA (round trip): 3,800 nmTotal sail ing time: 32 daysSailing time in ECA: 12 days (38%)Speed: 13.5 knotsComplete round trip time: 49 daysTotal time in ECA: 30 days (60%)




Engine selectionDuel fuelLow load operationPerformanceOPEXSizing

Tier III requirement

Tank sizing*Duel fuel & full

voyageBunkering frequency

85% utilization5% engine consumption margin15% safety buffer

Type & locationType C tankRearrangement of piping & equipmentImpacts on design/operationClass requirement

Within the limit of suppliers

CAPEX estimate

Tank & tank connection space

Bunkering station

Automation & interfacing

Yard cost may vary

* 1,500 m3




LCLR Ship Information


1. Ship trading routes, bunkering profileand drawings* will be provided for allthree types of ships.

2. The information is provided as the basisfor high level engineering design only.

* Source: DNV GLBulk carrier

Container Tanker

LCLR Ship - Bulk Carrier


Source: marine insight

Length O.A. abt. 260.00 m

Length B.P. 255.00 m

Breadth MLD 43.00 m

Depth MLD 20.00 m

Design Draft 13.00 m

Scantling Draft 15.00 m

Deadweight (At

scantling draft)

abt. 120,000 t

Service Speed abt. 15 knots

Engine Power Main 13,600 kW

Aux 800 kW x 3 nos

Boiler 1,800 kg/h @ 7 barTank Capacity LSDO 190 m3

DO 240 m3

HFO 4,120 m3

Principal particulars of a typical Capesize Bulk Carrier

ANOTHER EXAMPLEOF A BULKER OUTLOOK

EXAMPLE OF ARRANGEMENT

LCLR Ship - Container


Length O.A. abt. 369 m


Breadth MLD 51.00 m

Depth MLD 30.00 m



Deadweight (At

scantling draft)

abt. 150,000 t

15,000 TEUs



Aux 4,320 kW x 4 nos

Boiler 7,000 kg/h @ 9 barTank Capacity DO 1,120 m3

HFO 7,710 m3

Principal particulars of a typical Ultra Large Container Ship

ANOTHER EXAMPLEOF A CONTAINER OUTLOOK


Source: marine insight

LCLR Ship - Tanker


Length O.A. abt. 250.00 m


Breadth MLD 42.00 m

Depth MLD 22.00 m



Deadweight (At

scantling draft)

abt. 111,000 t



Aux 1,400 kW x 3 nos

Boiler 30,000 kg/hr @ 18.5 bar x 2 nos

Tank Capacity FO 710 m3

HFO 2,700 m3

Principal particulars of a typical Aframax Tanker

Source: marine executive

ANOTHER EXAMPLEOF A TANKER OUTLOOK


Common Trade Routes – Bulk

Capesize

• Large-sized bulk carriers

• 80 000 DWT and over

• Main Cargo: Iron Ore / Grains

Source: Rob Wilson FICS (October 2013)

Source: Bunge


Common Trade Routes – Containers

ULCS

• Ultra Large Container Ships

• > 14 500 TEUs

Source: World Shipping Council


Common Trade Routes – Tankers

Aframax

• Medium sized oil tankers

• 80 000 – 119 999 DWT

• Main Cargo: Crude OilSource: OPEC Annual Statistical Bulletin 2018


Proposal Evaluation

Considerable cost saving must be achieved.

All key assumptions shall be highlighted and explained.

Cost variance due to place of retrofitting will be considered.

Availability of technologies and materials.

Need for reduction in capital expenditure.

Availability of skill sets for installation.

Downtime to install (schedule).

Ease of implementation.

Judging Panel has the discretion to consider other aspects such as the level of innovationdemonstrated, validity of assumptions, technical feasibility and aesthetics ofpresentation, etc.


Proposal Submission - Format

Executive Summary (not more than 10 pages)• Highlights the key innovations, assumptions and Key Performance Indicators (KPIs) of

the Proposal.

Discussion on Key Design Aspects• Tank weight, size, strength, material, insulation• Innovative and streamlining installation process for easier repetition• Installation downtime• Installation cost• Innovative engine retrofitting hardware and process

Computation of Key Performance Indicators (KPI)• Cost• Ease of Implementation• Sustainability• Cost break down for licensing and IPs


Proposal Submission - Format

Discussion on Key Assumptions• Technology, TRL (by US DOE guideline)• Codes and standards, identification of gaps / shortcoming between solutions developed• current regulations used by the industry• Rules, Possibility of amendment or improvement in class rule

Challenges in Design IP Declaration

• Disclose foreground/background IP• Justify the use of commercially none available IP

Supporting Attachments• Mathematical model• Illustrations• System/equipment configuration• Documents needed for KPI computation, etc


Proposal Submission

All Proposals must be received in hard copy and soft copy by 31st Dec 2018 addressed to:

Maritime Energy & Sustainable DevelopmentBlk N1-B1a-03, 50 Nanyang AvenueNanyang Technological UniversitySingapore 639798

E-mail: [email protected]


mailto:[email protected]

Prizes & Awards

• International Judging Panel: Representatives from organisers and the maritime industry

• Winning team: S$20,000 cash prize

• Up to 4 Commendation Awards of S$5,000


Intellectual Property (IP)

In general:

1. Ownership of IP to remain with participants2. Require full disclosure of IP proposed to be used3. Require participants to warrant that the implementation of their

concept/ideas will not infringe upon IP owned by others

For non-winners:1. Organisers will not have the rights to use the IP2. Separate negotiation for licencing with relevant participants should

organisers wish to do so


Intellectual Property (IP) - Winners

In general:

• Organisers to be granted a non-exclusive, perpetual, royalty-free and fully paid-up licence in Singapore to use/modify the winning concept anddevelop it further*

• Organisers to have the right to sublicense the IP to their contractors to use in Singapore*


* Further details can be found in LCLR document

Requirements on Shortlisted Participants

Overview

1. Up to five Proposals will be shortlisted.

2. Shortlisted Participants are required to make a final presentation to the Judging Panel.

3. The shortlisted participants will be featured in the Singapore Maritime Week 2019.

4. They will be notified about one month prior to the final presentation and exhibition.

Final Presentation

1. 30mins be given to present to the Judging Panel on the key innovations, assumptions and KPIs.

2. 15-minute be given for Question & Answer session.

3. Use of scale models, artists’ impression, and computer visualisation or simulation systems are

encouraged.

Public Exhibition

1. A poster presentation


Timeline

Emission Control & Monitoring

31st Jul 2018Registration opens. Full competition documents will be available on

the competition website at http://event.ntu.edu.sg/lclr

Mid. Sept 2018 First mentoring session

Mid. Nov 2018 Second mentoring session

Mid. Dec 2018 Registration deadline

31st Dec 2018 Proposal submission deadline

End of Feb 2019 Evaluation of Proposals and selection of shortlisted Proposals

Mar 2019 Shortlisted Participants informed

Mar 2019 Final Presentation by shortlisted teams / individuals to Judging Panel

Apr 2019Announcement of winner and commendation awardsPrize Presentation @ Singapore Maritime Week


http://event.ntu.edu.sg/lclr

Thank you

&

All the Best!


Photo credit: WIN GD