sustainable shipping: methanol as a marine fuel · sustainable shipping: methanol as a marine fuel...

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Sustainable Shipping: Methanol as a Marine Fuel

Gregory Dolan, CEO

Methanol Institute

Platts European Refining Summit

Brussels – September 29, 2016

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WHO WE ARE 01

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Global methanol representation

• The Methanol Institute (MI) was first formed in 1989 to represent US

methanol producers in Washington.

• 27 years later, MI is truly a global trade association supporting the

expansion of the methanol industry in every corner of the world from

offices in:

S i n g a p o r e | Wa s h i n g t o n | B r u s s e l s | B e i j i n g

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Transition to Energy Resource 02

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Alternative Fuel Drivers

Scale: The feedstock base needs to be large enough to support global transportation market.

Sustainability: There needs to be a viable pathway to low- or no-carbon transport, while reducing smog.

Subsidy: Can’t rely on government support forever, so someone needs to make money.

Consumer: Demands seamless transition and ease of use.

Methanol: Checks all the drivers!

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Methanol is simplest of alcohols

• Simple molecule rich in

hydrogen, with only no carbon-

to-carbon bonds

• Clear and colorless liquid at

room temperature and ambient

pressure

• Also known as “wood alcohol,”

methanol can be produced

from a wide range of

feedstocks

Formula: CH3OH

Density: 0,792 g.cm-3

Molar mass: 32,04 g mol-1

Appearance: colourless liquid

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Feedstock:

Abundant/Sustainable

Market:

Large/Diverse

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Methanol: Essential Chemical Building

Block Source: Methanex

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Methanol is a versatile fuel source

FUELS

• Neat fuel

• Low blends

• High blends

• GEM

• MTBE

• Biodiesel

• DME & OME

• MTG

TECHNOLOGIES

• SI & CI engines

• Turbines

• Fuel cells

• Stoves

Out of the ~70 million metric tons of methanol sold

globally in 2015, energy and fuel uses represent 40% of

total demand

From 2009-2015, direct methanol fuel blending has

increased at an annual rate of nearly 23%

SEGMENTS

• Road & non-road transportation

• Power & heat generation, and

• Marine

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Source: IHS Chemical, November 2015

Oil displacement drives demand growth

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Shifting supply & demand balance

Source: IHS Chemical

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Denmark –

methanol fuel cells

for vehicles

Sweden – methanol

marine fuel

Israel – Power generation & M15

Standard

Australia – GEM fuel

Africa – cooking

stoves

China– M15 to

M100, Industrial

Boilers UK – EN228

low blend

USA – methanol

motorsport fuel

Methanol Fuel Examples Around the

World

Iceland – M100

Trials

Egypt – M15 Trials New Zealand –

Introducing M3

India – Methanol

Economy Roadmap

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MARINE FUELS 03

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• Over 90,000 commercial vessels on

world’s oceans, consuming 370

million tons of bunker fuel (Heavy

Fuel Oil and Middle Distillates).

• One container ship: SOx = 50

million cars

• 15 largest ships: SOx emissions

= 760 million cars in the world

Marine Fuel in Transition

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Environmental & Health Hazards

• NOAA: Globally

shipping accounts

for 60,000 deaths

and US$330 billion

in health costs

• NRDC: Shipping at

intersection of high

population, choking

pollution, and rapid

growth Source: Natural Resources Defense Council

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The International Maritime Organization has adopted regulations for SOx and NOx that are transforming the shipping industry

While SOx reductions may be met with low sulfur fuels, the combination of SOx and NOx reductions driving shipboard solutions

Emissions regulations driving market

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Different options available to ship owners

HFO

+ scrubbers MGO LNG Methanol

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Methanol is also a low flash point fuel

Properties HFO MGO LNG Methanol

Physical state liquid liquid cryogenic

liquid

liquid

Boiling temperature at 1 bar [oC] - 175 – 650 -/- 161 65

Density at 15oC [kg/m3] (LNG shown at -/-160oC)

989 Max. 900 448 796

Dynamic viscosity at 40oC [cSt] - 3,5 - 0,6 (at 25oC)

Lower heating value [MJ/kg] 40 43 50 (at -160oC, 1 bar)

20

Lubricity WSD [μm] - 280-400 - 1100

Vapour density air = 1 - >5 0,55 1,1

Flash point (TCC) [oC] >60 >60 -/-175 12

Auto ignition temperature [oC] - 250-500 540 464

Flammability limits [by % vol. of mixture] - 0,3 – 10 5 – 15 6 - 36

Source:

EMSA

Study on the use of ethyl and methyl alcohol as alternative fuels in shipping

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Different parameters determine choice of fuel

Technology Supply

Regulations

Economy

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Examples of vessels running on

methanol

2-stroke 4-stroke high speed projects

7 chemical tankers 1 RoPax Ferry 1 pilot boat cruise ship, ferry, a.o.

MAN Wärtsila Volvo, Scania, FiTech various

MOL, WL, Marinvest Stena Lines Swedish Maritime

Administration, MI

Methaship,

LeanShips, a.o.

operational

new build retrofit retrofit new build

operational testing design

DNV GL Lloyds Register various

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Methanol fuel cells improve electrical efficiency

As part of the Pa-X-ell project Meyer Werft installed

a Serenergy high temperature methanol fuel cell

system demonstrator on board the Mariella

The system electricity at higher efficiencies than

a typical diesel system [source: Serenergy]

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Dual fuel engine technology ensures flexibility

Engines converted

for methanol

combustion

Double walled fuel

pipes

Pump room

Ballast tank converted

to methanol fuel tank

So

urc

e: S

ten

a L

ine

• Pilot fuel assisted diesel combustion concept

Methanol is ignited by a small amount of diesel pilot fuel

• Crew and passenger safety top priority

Safety measures include a.o. double walled pipes, ventilation, high pressure

oil valves, nitrogen blanketing

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Wärtsilä Methanol - Diesel on engine piping

Toni Stojcevski / Wärtsilä

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Methanol Injector - the heart of the methanol adaptation

ACCUMULATOR

BLOCK CONTROL

BLOCK TRANSFER

BLOCK

The methanol injector allows the engine to run on

methanol ignited by pilot fuel or on pure diesel.

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Source: SAE 2016-01-0887 , Svensson et al. , Lund University

Zero particulates , much lower

NOx

Typical Diesel Fuel Methanol Fuel

“soot”

“soot” NOx

NOx

Toni Stojcevski / Wärtsilä

Phi T Maps – NOx & PPM

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Methanol enables significant emission

reductions

SOx NOx PM 0%

-/-60%

-/-70%

-/-90%

-/-80%

-/-50%

-/-40%

-/-30%

-/-20%

-/-10%

Source: Stena Line

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Methanol storage capacity estimates (thousand tons)

Available in many ports around the

world

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Methanol is easy to handle

• Liquid at atmospheric

pressure

• Available in many ports

around the world and along

rivers

• Low infrastucture cost

• Flexible, modular system

• Environmentally friendly as it

is biodegradable

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Methanol is cost competitive on an

energy equivalent basis

Source: Platts and IHS Chemical

Methanol converted to MGO energy equivalent at factor of 2.16

Over a five-year time frame methanol has been mostly cost competitive

Despite decreased oil prices methanol remains competitive in many key

regions, incl China

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CONCLUSIONS 04

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Methanol...

• is plentiful, available globally

• can be made 100% renewable

• runs well in existing engine technology and has potential for further optimization

• complies with increasingly stringent emission reduction regulations

• requires only minor modifications to current bunkering infrastructure

• is biodegradable!

• safe handling can rely on long history and experience in shipping and industry

• cost are relatively modest and drop as experience mounts

• shows slight regional price variation

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A picture says more…

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BONUS: Methanol as Diesel Substitute

D i e s e l E m i s s i o n s U n d e r A t t a c k

• The “low hanging fruit” for methanol fuel blending may be the diesel substitution market for heavy-duty trucks and buses

• Methanol Institute looking at research agenda for dual-fuel compression ignition engines and dedicated spark ignition engines

• MI Member Fuel Injection Technologies of China working with Beiben Trucks and Yuchai engines in China

• MI sponsoring work in Finland to convert Scania ED95 engine to MD95

• MI sponsoring Green Pilot Boat to demonstrate methanol fueled engines from FiTech, Volvo, and Scania

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CONTACTS 05

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MSF MAINTAINS A PRESENCE IN OVER 60

COUNTRIES

MANY OF THESE COUNTRIES MI HAS

TARGETED FOR METHANOL POISONING

OUTREACH PROGRAMS, MSF HAS EXISTING

OPERATIONS, TO INCLUDE:

• F

• F

• F

• F

• F

• F

• F

• F

• F

• F

CONTACTS

01

02

03

04

• G R E G D O L AN

CEO

gdolan@methanol.org

• C H R I S C H AT T E R T O N

COO

cchatterton@methanol.org

• D O M L AV I G N E

Director of Government

Affairs

dlavigne@methanol.org

• L AR RY N AV I N

Senior Manager External

Affairs

navin@methanol.org

05

06

07

08

• E E L C O D E K K E R

Chief EU Representative

edekker@methanol.org

• K AI Z H AO

Chief China Representative

kzhao@methanol.org

• AP R I L C H AN

Executive Manager

achan@methanol.org

• S H E E VA N O S H I R VAN

Executive Assistant

snoshirvan@methanol.org

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