Calorific Value of HFO and MDO Comparison Report

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    Our Reference

    2004/0036

    Date

    17. September 2005(revised edition)

    On behalf of

    Thermo King Corp.314 West 90th StreetMinneapolis, MN 55420-3693

    Clients Reference

    Titel

    Determination of energy cost

    of electrical energyon board sea-going vessels

    by

    Dr.-Ing. Yves Wild

    Expert Opinion

    Location of the company: Hamburg

    Registered at Amtsgericht

    Hamburg HR B Nr. 53854

    Managing Director: Dr.-Ing. Yves Wild

    File: Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc

    Bank account:

    Deutsche Bank Hamburg

    BLZ: 200 700 24

    Account no.: 6429716 00

    Financial Authority Hamburg-Altona

    Tax no.: 02/895/05008

    VAT ID no.: DE 158 712 034

    Address: Elbchaussee 1

    D-22765 Hamburg

    Germany

    Refrigeration Engineering Consultancy

    Marine Engineering Expert Opinions

    System Engineering Measurements

    W i l dIngenieurbro GmbH

    Dr.-Ing. Yves

    Telephone: +49 40 390 70 65Mobile: +49 172 410 18 26

    Fax: +49 40 390 24 75

    Email: [email protected]

    Web: www.DrWi ld.de

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

    File: Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc

    Content

    1 Scope of this report ..........................................................................................1

    2 Introduction .....................................................................................................13 Cost factors to be considered............................................................................2

    3.1 Fuel oil consumption .................................................................................23.1.1 Nominal fuel oil consumption .............................................................3

    3.1.1.1 Theoretical background ...............................................................33.1.2 Effective fuel oil consumption (example)...............................................63.1.3 Development of bunker oil prices ........................................................7

    3.2 Lub oil consumption ................................................................................103.2.1 Nominal lub oil consumption ............................................................103.2.2 Effective lub oil consumption (example)..............................................11

    3.2.3 Lub oil prices....................................................................................113.3 Efficiency of alternator .............................................................................114 Cost calculation .............................................................................................125 Summary.......................................................................................................14

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    Ref.-Nr.: 2004/0036Client: Thermo King Corp.Titel: Determination of energy cost of electrical energy on board sea-going vessels W i l d

    Ingenieurbro GmbH

    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 1

    1 Scope of this report

    This report is given on behalf ofThermo King Corp.314 West 90th StreetMinneapolis, MN 55420-3693

    The following question shall be answered by an independent expert:

    - What is the cost per kWh electrical energy on board sea-going vessels?

    The undersigned has been contacted by Mr. Steve Bryant (Thermo King USA) and Mr.

    Dermott Crombie (Thermo King Europe) in October 2004 in order to discuss the scope

    of the evaluation. During the Intermodal Exhibition 2004 in Copenhagen the issuing

    of a formal report has been requested.

    A first edition of this report has been issued in February 2005. Due to the significant

    increase of bunker prices during 2005 a revised edition has been issued in September

    taking into consideration the current price levels.

    2 IntroductionOn board of sea-going vessels the electrical energy has to be produced by on-board

    alternators. These alternators are mainly driven by diesel engines or by a PTO (Power

    Take Off) from the propeller shaft. Sometimes also other energy sources are used by

    installing for example exhaust gas turbines or steam turbines (the steam being

    produced with exhaust gas heat). However, the vast majority of vessels is equipped

    with diesel generators only.

    The following investigation therefore only considers electrical power generation bymedium-speed 4-stroke diesel engines or slow-speed 2-stroke diesel engines (main

    engine) with shaft generator.

    On modern container vessels the vessels internal power demand is approx. 600 kW

    to 1,200 kW depending on the ships size. The main consumers are pumps, fans and

    A/C systems. Beside this internal power demand the power consumption of reefer

    containers has a significant impact on the overall power consumption. For example

    the Monte-class vessels of Hamburg-Sd (built 2004 / 2005 at Daewoo) are

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

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    equipped with 1,365 plugs for reefer containers and have an installed diesel

    generator capacity of approx. 15 MW.

    Thermo King as an important manufacturer of refrigeration aggregates for reefer

    containers claims to offer significant energy savings with their MAGNUM unit in

    comparison to competitors products. In order to determine the cost savings that go

    along with the energy savings this study here shall determine the specific cost for the

    electrical energy on board of ships.

    3 Cost factors to be considered

    The cost for the electrical power generation can be divided into the direct cost(consumables) and the indirect cost (investment, maintenance).

    Investment cost are not taken into consideration in this study because it is difficult to

    determine any savings that might be achievable by the installation of smaller diesel

    generators in case of having a fleet of low power consumption reefer containers.

    Maintenance cost is also not taken into consideration because here, too, it is difficult to

    determine any savings if the power consumption of reefer containers is reduced. It

    sometimes even might be worse to run diesel engines at lower load thus resulting inhigher maintenance needs.

    Therefore only the direct operating cost that are caused by the consumables

    fuel oil

    and

    lubrication oil.

    are analysed in this study.

    3.1 Fuel oil consumption

    Fuel oil consumption has the greatest impact on operating cost of diesel generators.

    Therefore the fuel oil consumption of diesel engines will be addressed in more detail

    below.

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

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    3.1.1 Nominal fuel oil consumption

    3.1.1.1 Theoretical background

    Heat of combustion, specific energy or calorific value, is a measure of the energy

    content of the fuel. It decreases as density, sulphur, water and ash content increase.

    Specific Energy is not controlled in the manufacture of fuel except in a secondary

    manner by the specification of other properties.

    The energy that is stored in fuels is expressed by the calorific value. When burning

    mineral oils not only CO2 is produced but also water vapour. The net calorific value

    only specifies the energy that can be used without the condensation heat of this water

    vapour. It is therefore applicable for diesel engines. In modern house-hold boilers also

    the water is condensed so that in this case the gross calorific value is used.

    Net specific energy can be calculated with a degree of accuracy acceptable for normal

    purposes from the equation

    [ ] )449.2240.9(01.0)(01.01)10167.310802.8704.46( 326 wssawQn ++++=

    [MJ/kg]1

    with = the density at 15 C [kg/m]

    w = the water content [mass-%]

    a = the ash content [mass-%]

    s = the sulphur content [mass-%]

    The net calorific value of marine diesel oil (MDO) and marine gas oil (MGO) is

    42,700 kJ/kg, for intermediate fuel oils (IFO) and heavy fuel oils (HFO) it is approx. in

    the range from 39,000 to 41,000 kJ/kg. An average of 40,000 kJ/kg can be assumed

    for IFOs / HFOs thus resulting in an increase of the specific fuel consumption of

    6.75 % in comparison to MDO.

    When burning fuel in a diesel engine the thermal efficiency determines the amount of

    mechanical energy at the shaft of the engine in relation to the energy in the fuel. Table

    1 shows the calculation of the specific fuel consumption. Modern slow-speed 2-stroke

    diesel engines as used as main engines on todays cargo vessels reach a specific fuel

    1 See ISO 8217:1996 Annex A - Informative

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

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    consumption of approx. 165 g/kWh (when running on MDO) which is equivalent of a

    thermal efficiency of slightly more than 50 %. Medium-speed 4-stroke engines as used

    as diesel generators on board of vessels can reach a thermal efficiency of up to 45 %(or approx. 185 g/kWh). High-speed 4-stroke engines (like often used in mobile

    power packs) only reach approx. 220 250 g/kWh or approx. 35 40 % thermal

    efficiency.

    Specific fuel consumption per mechnical kWh (at motor shaft)

    168,6 gr/kWh 25% 30% 35% 40% 45% 50% 55% 60%

    42.700 kJ/kgK 337,2 gr/ kWh 281,0 gr/ kWh 240,9 gr/ kWh 210,8 gr/ kWh 187,4 gr/ kWh 168,6 gr/ kWh 153,3 gr/ kWh 140,5 gr/ kWh

    42.500 kJ/kgK 338,8 gr/ kWh 282,4 gr/ kWh 242,0 gr/ kWh 211,8 gr/ kWh 188,2 gr/ kWh 169,4 gr/ kWh 154,0 gr/ kWh 141,2 gr/ kWh

    42.000 kJ/kgK 342,9 gr/ kWh 285,7 gr/ kWh 244,9 gr/ kWh 214,3 gr/ kWh 190,5 gr/ kWh 171,4 gr/ kWh 155,8 gr/ kWh 142,9 gr/ kWh

    41.500 kJ/kgK 347,0 gr/ kWh 289,2 gr/ kWh 247,8 gr/ kWh 216,9 gr/ kWh 192,8 gr/ kWh 173,5 gr/ kWh 157,7 gr/ kWh 144,6 gr/ kWh

    41.000 kJ/kgK 351,2 gr/ kWh 292,7 gr/ kWh 250,9 gr/ kWh 219,5 gr/ kWh 195,1 gr/ kWh 175,6 gr/ kWh 159,6 gr/ kWh 146,3 gr/ kWh

    40.500 kJ/kgK 355,6 gr/ kWh 296,3 gr/ kWh 254,0 gr/ kWh 222,2 gr/ kWh 197,5 gr/ kWh 177,8 gr/ kWh 161,6 gr/ kWh 148,1 gr/ kWh

    40.000 kJ/kgK 360,0 gr/ kWh 300,0 gr/ kWh 257,1 gr/ kWh 225,0 gr/ kWh 200,0 gr/ kWh 180,0 gr/ kWh 163,6 gr/ kWh 150,0 gr/ kWh

    39.500 kJ/kgK 364,6 gr/ kWh 303,8 gr/ kWh 260,4 gr/ kWh 227,8 gr/ kWh 202,5 gr/ kWh 182,3 gr/ kWh 165,7 gr/ kWh 151,9 gr/ kWh

    39.000 kJ/kgK 369,2 gr/ kWh 307,7 gr/ kWh 263,7 gr/ kWh 230,8 gr/ kWh 205,1 gr/ kWh 184,6 gr/ kWh 167,8 gr/ kWh 153,8 gr/ kWhNetcalorificvalueo

    fthefuel

    Thermal efficiency of diesel engine

    Table 1: Specific fuel consumption per mechanical kWh depending on the thermal efficiency of theengine and the net calorific value of the fuelSpecific fuel consumption per electrical kWh (at generator output)

    177,5 gr/kWh 25% 30% 35% 40% 45% 50% 55% 60%

    42.700 kJ/kgK 355,0 gr/kWh 295,8 gr/kWh 253,6 gr/kW h 221,9 gr/kW h 197,2 gr/kWh 177,5 gr/kWh 161,4 gr/kWh 147,9 gr/kWh

    42.500 kJ/kgK 356,7 gr/kWh 297,2 gr/kWh 254,8 gr/kW h 222,9 gr/kW h 198,1 gr/kWh 178,3 gr/kWh 162,1 gr/kWh 148,6 gr/kWh

    42.000 kJ/kgK 360,9 gr/kWh 300,8 gr/kWh 257,8 gr/kW h 225,6 gr/kW h 200,5 gr/kWh 180,5 gr/kWh 164,0 gr/kWh 150,4 gr/kWh

    41.500 kJ/kgK 365,3 gr/kWh 304,4 gr/kWh 260,9 gr/kW h 228,3 gr/kW h 202,9 gr/kWh 182,6 gr/kWh 166,0 gr/kWh 152,2 gr/kWh

    41.000 kJ/kgK 369,7 gr/kWh 308,1 gr/kWh 264,1 gr/kW h 231,1 gr/kW h 205,4 gr/kWh 184,9 gr/kWh 168,0 gr/kWh 154,0 gr/kWh

    40.500 kJ/kgK 374,3 gr/kWh 311,9 gr/kWh 267,3 gr/kW h 233,9 gr/kW h 207,9 gr/kWh 187,1 gr/kWh 170,1 gr/kWh 155,9 gr/kWh

    40.000 kJ/kgK 378,9 gr/kWh 315,8 gr/kWh 270,7 gr/kW h 236,8 gr/kW h 210,5 gr/kWh 189,5 gr/kWh 172,2 gr/kWh 157,9 gr/kWh

    39.500 kJ/kgK 383,7 gr/kWh 319,8 gr/kWh 274,1 gr/kW h 239,8 gr/kW h 213,2 gr/kWh 191,9 gr/kWh 174,4 gr/kWh 159,9 gr/kWh

    39.000 kJ/kgK 388,7 gr/kWh 323,9 gr/kWh 277,6 gr/kW h 242,9 gr/kW h 215,9 gr/kWh 194,3 gr/kWh 176,7 gr/kWh 161,9 gr/kWh

    Thermal efficiency of diesel engine

    Netcalorificvalueofthefuel

    Table 2: Specific fuel consumption per electrical kWh (at 95 % alternator efficiency) depending onthe thermal efficiency of the engine and the net calorific value of the fuelUnder part-load condition the specific fuel consumption is increasing significantly. This

    increase is higher when operating as generator (constant speed) than as propulsion

    engine (propeller curve) (see Fig. 1).

    Fig. 2 shows the influence of the engine speed on the specific fuel consumption. In

    general the lowest specific fuel consumption is reached at approx. 85 90 % load and

    at low engine speed.

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 5

    Fig. 1: Specific fuel consumption on the generator and the propeller curve2

    Fig. 2: Specific fuel consumption on the generator curve at different speeds3Since diesel generators mainly operate in part load condition the real average fuel

    consumption is more than the nominal fuel consumption as specified by the engine

    manufacturers.

    2 Source: Illies, Kurt: Handbuch der Schiffsbetriebstechnik, 2. Edition 1984, page 6003 Source: Illies, Kurt: Handbuch der Schiffsbetriebstechnik, 2. Edition 1984, page 600

    Load

    Generator curve(constant speed)

    Propeller curve(variable speed)

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

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    3.1.2 Effective fuel oil consumption (example)

    In order to determine the real life fuel consumption of auxiliary diesel generators on-

    board data of a 2,000 TEU container vessel (built 1992) has been analysed. This

    vessel has been chosen because the diesel generators were running on MDO (Marine

    Diesel Oil) with a separate fuel oil counter for the auxiliary diesel engines. Furthermore

    there have been kWh-counters installed for each generator measuring the produced

    electrical energy. Based on this information the average fuel consumption per

    (electrical) kWh has been calculated.

    The auxiliary engine data has been:

    Diesel Generator #1 + #3:

    Engine type: MAN B&W 7L28/32

    Nominal electrical power: 1,292 kW @ 720 rpm / 60 Hz

    Diesel Generator #2:

    Engine type: MAN B&W 5L28/32

    Nominal electrical power: 928 kW @ 720 rpm / 60 Hz

    92 NB 94 NB 95 NB 99 NB 100 NB 101 NB 102 NB Average

    Start 25.07.2003 12:00 18.10.2003 12:00 29.11.2003 12:00 18.05.2004 12:00 27.06.2004 12:00 06.08.2004 12:00 18.09.2004 12:00

    End 05.08.2003 12:00 29.10.2003 12:00 10.12.2003 12:00 27.05.2004 12:00 09.07.2004 12:00 18.08.2004 12:00 29.09.2004 12:00

    Hours time diff. -3 h -3 h -2 h -4 h -4 h -4 h -4 h

    Total hours 261 h 261 h 262 h 212 h 284 h 284 h 260 h

    kWh Start 19.150.700 kWh 19.949.900 kWh 20.156.000 kWh 21.375.800 kWh 21.683.800 kWh 22.049.800 kWh 22.463.300 kWh

    kWh End 19.343.900 kWh 20.008.600 kWh 20.330.200 kWh 21.421.000 kWh 21.803.800 kWh 22.221.100 kWh 22.610.300 kWh

    kWh Generated 193.200 kWh 58.700 kWh 174.200 kWh 45.200 kWh 120.000 kWh 171.300 kWh 147.000 kWh

    kWh Start 11.129.700 kWh 11.476.700 kWh 11.606.300 kWh 12.185.100 kWh 12.290.700 kWh 12.491.200 kWh 12.694.100 kWh

    kWh End 11.202.400 kWh 11.566.800 kWh 11.733.500 kWh 12.243.700 kWh 12.410.800 kWh 12.619.800 kWh 12.801.500 kWh

    kWh Generated 72.700 kWh 90.100 kWh 127.200 kWh 58.600 kWh 120.100 kWh 128.600 kWh 107.400 kWh

    kWh Start 23.698.700 kWh 24.245.600 kWh 24.678.600 kWh 25.994.200 kWh 26.208.200 kWh 26.359.000 kWh 26.548.600 kWh

    kWh End 23.704.800 kWh 24.407.700 kWh 24.846.800 kWh 26.062.200 kWh 26.288.000 kWh 26.397.300 kWh 26.585.900 kWh

    kWh Generated 6.100 kWh 162.100 kWh 168.200 kWh 68.000 kWh 79.800 kWh 38.300 kWh 37.300 kWh

    kWh Total 272.000 kWh 310.900 kWh 469.600 kWh 171.800 kWh 319.900 kWh 338.200 kWh 291.700 kWh 2.174.100 kWh

    MDO used 60,4 t 70,8 t 120,5 t 43,1 t 85,8 t 81,8 t 68,0 t 530,4 t

    specific fuelconsumption

    222,1 g/kWh 227,7 g/kWh 256,6 g/kWh 250,9 g/kWh 268,2 g/kWh 241,9 g/kWh 233,1 g/kWh 244,0 g/kWh

    Diesel

    generator#3

    Analysis

    Voyagedata

    Voyages

    Diesel

    generator#1

    Die

    sel

    genera

    tor#2

    Table 3: Determination of the average fuel consumption per (electrical) kWh from on-board data ofa 2,000 TEU container vessel

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    Dr.-Ing. Yves

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    Table 3 shows the analysis of the on-board data for seven northbound voyages (with

    reefer containers on board) and the calculated specific fuel consumption. The specific

    fuel oil consumption varied from 221.1 g/kWh to 268.2 g/kWh. The average valuewas 244.0 g/kWh. The measured value is therefore about 25 % higher than the value

    specified by the engines manufacturer (185 g/kWh mechanical or ~190 g/kWh

    electrical). The higher consumption can be explained by the low average load of the

    engines (when running) which was only between 42.8 % and 48.7 % instead of the

    desirable 85 % MCR.

    It has to be highlighted that the values measured here are specific fuel consumptions

    for the operation with MDO. When operating on IFO with a lower calorific value the

    fuel consumption will increase accordingly (see Table 2) to an average of

    260.5 g/kWh (with a variation from 236.0 g/kWh to 286.3 g/kWh).

    3.1.3 Development of bunker oil prices

    After a stabilisation of bunker oil prices between 1988 and 2000 there is a quite

    steady upward trend in the bunker oil prices since 2000 (see Fig. 3). While the

    increase of the prices of MDO and MGO already started in early 2003 the prices for

    HFOs remained quite stable until end 2004. Since then the price for HFOs almost

    doubled within 10 months from approx. US$ 150 per ton in December 2004 to

    US$ 300 per ton in September 2005.

    Bunker oil prices for IFO 380 today reached a level of over US$ 300.- per ton

    throughout the world with peak prices at Japan exceeding US$ 370.- per ton. Analysts

    today do expect that the oil price will stay high or increase even more due to the

    strong demand for oil products from China.

    The price levels of lower quality fuels (IFOs / HFOs) and higher quality fuels (MDO /

    MGO) in direct comparison at Rotterdam are shown in Fig. 4 and Fig. 6. While

    IFO 180 is only approx. 10 15 US$/ton more expensive than IFO 380, MDO at

    approx. US$ 600.-/ton is almost 2-times as expensive as IFO 380 (or US$ 300 more

    per ton). For this reason most ship-board diesel engines today run on HFOs / IFOs.

    Only in some special areas with high environmental regulations the operation on

    MDO might be of advantage (e.g. the Baltic Sea). Marine Gas Oil (MGO) is even

    more expensive. For electrical power generation MGO is mainly used in mobile power

    packs that can be placed on deck in case of a shortage of ship-own electrical power

    generation plant.

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    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 8

    Monthly Bunker Prices (380 cst)

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    Fig. 3: Long term monthly bunker prices for different fuel oils4

    Monthly Bunker Prices at Rotterdam

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    Fig. 4: Long term monthly bunker prices at Rotterdam54 Source: Clarkson Research Studies 20055 Source: Clarkson Research Studies 2005

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    Dr.-Ing. Yves

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    Weekly Bunker Prices (380 cst)

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    07.2

    002

    01.

    09.2

    002

    31.

    10.2

    002

    30.

    12.2

    002

    28.

    02.2

    003

    29.

    04.2

    003

    28.

    06.2

    003

    27.

    08.2

    003

    26.

    10.2

    003

    25.

    12.2

    003

    23.

    02.2

    004

    23.

    04.2

    004

    22.

    06.2

    004

    21.

    08.2

    004

    20.

    10.2

    004

    19.

    12.2

    004

    17.

    02.2

    005

    18.

    04.2

    005

    17.

    06.2

    005

    16.

    08.2

    005

    15.

    10.2

    005

    14.

    12.2

    005

    Date

    BunkerPrice

    Cristobal

    FosFujairah

    Genoa

    Houston

    Japan

    Los Angeles

    Philadelphia

    Rotterdam

    Singapore

    Weekly Bunker Prices (180 cst)

    0 $/t

    50 $/t

    100 $/t

    150 $/t

    200 $/t

    250 $/t

    300 $/t

    350 $/t

    400 $/t

    04.

    01.2

    002

    05.

    03.2

    002

    04.

    05.2

    002

    03.

    07.2

    002

    01.

    09.2

    002

    31.

    10.2

    002

    30.

    12.2

    002

    28.

    02.2

    003

    29.

    04.2

    003

    28.

    06.2

    003

    27.

    08.2

    003

    26.

    10.2

    003

    25.

    12.2

    003

    23.

    02.2

    004

    23.

    04.2

    004

    22.

    06.2

    004

    21.

    08.2

    004

    20.

    10.2

    004

    19.

    12.2

    004

    17.

    02.2

    005

    18.

    04.2

    005

    17.

    06.2

    005

    16.

    08.2

    005

    15.

    10.2

    005

    14.

    12.2

    005

    Date

    BunkerPrice

    Cristobal

    FosFujairah

    Genoa

    Houston

    Japan

    Los Angeles

    Philadelphia

    Rotterdam

    Singapore

    Weekly Bunker Prices (MDO)

    0 $/t

    100 $/t

    200 $/t

    300 $/t

    400 $/t

    500 $/t

    600 $/t

    700 $/t

    800 $/t

    04.0

    1.

    2002

    05.0

    3.

    2002

    04.0

    5.

    2002

    03.0

    7.

    2002

    01.0

    9.

    2002

    31.1

    0.

    2002

    30.1

    2.

    2002

    28.0

    2.

    2003

    29.0

    4.

    2003

    28.0

    6.

    2003

    27.0

    8.

    2003

    26.1

    0.

    2003

    25.1

    2.

    2003

    23.0

    2.

    2004

    23.0

    4.

    2004

    22.0

    6.

    2004

    21.0

    8.

    2004

    20.1

    0.

    2004

    19.1

    2.

    2004

    17.0

    2.

    2005

    18.0

    4.

    2005

    17.0

    6.

    2005

    16.0

    8.

    2005

    15.1

    0.

    2005

    14.1

    2.

    2005

    Date

    BunkerPrice

    CristobalFos

    Fujairah

    Houston

    Japan

    Los Angeles

    Philadelphia

    Rotterdam

    Singapore

    Weekly Bunker Prices (MGO)

    0 $/t

    100 $/t

    200 $/t

    300 $/t

    400 $/t

    500 $/t

    600 $/t

    700 $/t

    800 $/t

    04.0

    1.

    2002

    05.0

    3.

    2002

    04.0

    5.

    2002

    03.0

    7.

    2002

    01.0

    9.

    2002

    31.1

    0.

    2002

    30.1

    2.

    2002

    28.0

    2.

    2003

    29.0

    4.

    2003

    28.0

    6.

    2003

    27.0

    8.

    2003

    26.1

    0.

    2003

    25.1

    2.

    2003

    23.0

    2.

    2004

    23.0

    4.

    2004

    22.0

    6.

    2004

    21.0

    8.

    2004

    20.1

    0.

    2004

    19.1

    2.

    2004

    17.0

    2.

    2005

    18.0

    4.

    2005

    17.0

    6.

    2005

    16.0

    8.

    2005

    15.1

    0.

    2005

    14.1

    2.

    2005

    Date

    BunkerPrice Cristobal

    Fujairah

    Genoa

    Rotterdam

    Singapore

    Fig. 5: Short term weekly bunker prices for different fuel oils6

    Weekly Bunker Prices at Rotterdam

    0 $/t

    100 $/t

    200 $/t

    300 $/t

    400 $/t

    500 $/t

    600 $/t

    700 $/t

    04.

    01.

    2002

    05.

    03.

    2002

    04.

    05.

    2002

    03.

    07.

    2002

    01.

    09.

    2002

    31.

    10.

    2002

    30.

    12.

    2002

    28.

    02.

    2003

    29.

    04.

    2003

    28.

    06.

    2003

    27.

    08.

    2003

    26.

    10.

    2003

    25.

    12.

    2003

    23.

    02.

    2004

    23.

    04.

    2004

    22.

    06.

    2004

    21.

    08.

    2004

    20.

    10.

    2004

    19.

    12.

    2004

    17.

    02.

    2005

    18.

    04.

    2005

    17.

    06.

    2005

    16.

    08.

    2005

    15.

    10.

    2005

    14.

    12.

    2005

    Date

    BunkerPrice

    MGO

    MDO

    180CST

    380CST

    Fig. 6: Short term weekly bunker prices at Rotterdam76 Source: Clarkson Research Studies 20057 Source: Clarkson Research Studies 2005

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 10

    3.2 Lub oil consumption

    The second largest consumable of diesel engines is the lubrication oil. Depending on

    the engine type the lub oil systems are different:

    - Medium-speed 4-stroke engines only use circulation lub oil which also

    lubricates the cylinder liners. Here the lub oil consumption usually depends

    on the load of the engine, thus it is measured in g/kWh.

    - Slow-speed 2-stroke engines use cylinder oil for direct lubrication of the

    cylinder liner and circulation lub oil for the crank case and cross head

    lubrication. The cylinder lub oil consumption usually depends on the load of

    the engine, thus it is measured in g/kWh, while the circulation lub oil

    consumption mainly depends on the number of revolutions and is therefore

    usually expressed as kg / cylinder / day.

    3.2.1 Nominal lub oil consumption

    Table 4 shows the specific lub oil consumption for some 4-stroke and 2-stroke diesel

    engines. When assuming that the 2-stroke engines will be operated at 90 % MCR the

    circulation lub oil consumption of 7 11 kg/cyl/day can be transferred to approx.0.06 0.09 g/kWh. This means that the circulation lub oil consumption is only

    approx. one tenth of the cylinder lub oil consumption.

    Type Manufacturer Engine series Speed Power

    Guangzhou Diesel 230 series 750 - 900 rpm 891 - 1,408 kW

    Guangzhou Diesel 300 series 500 - 600 rpm 550 - 607 kW

    Guangzhou Diesel 320 series 400 - 525 rpm 971 - 2,426 kW

    MAN B&W L27/38 800 rpm 2,040 - 3,060 kW

    MAN B&W L28/32 775 rpm 1,320 - 3,920 kW

    MAN B&W L58/64 400 - 428 rpm 7,800 - 12,510 kW

    MAN B&W K90MC 71 - 94 rpm 8,840 - 54,840 kW 0.7 - 1.2 g/kWh 7 - 10 kg/cyl/day

    MAN B&W K98MC-C 94 - 104 rpm 24,840 - 79,940 kW 0.7 - 1.2 g/kWh 7.5 - 11 kg/cyl/day

    Specific lub oil consumption

    (manufacturer's data)

    1.0 g/kWh

    1.8 g/kWh

    1.2 g/kWh

    0.5 - 0.8 g/kWh

    0.8 g/kWh

    4-Stroke

    Medium

    Speed

    2-Stroke

    Slow Speed

    1.5 g/kWh

    Table 4: Specific lub oil consumption for some diesel engines as per manufacturers data

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 11

    3.2.2 Effective lub oil consumption (example)

    In order to verify the manufacturers data the lub oil consumption of a 2,000 TEU

    container ship has been analysed8. Table 5 shows the result of the analysis. In case of

    cylinder oil of the main engine and circulation oil of the diesel generators the lub oil

    consumption was less than specified by the manufacturer. Only the consumption of the

    circulation lub oil of the main engine was approx. 60 % higher than specified.

    However, the main engine circulation lub oil system has the lowest overall

    consumption so that this discrepancy is of minor importance.

    All in all the manufacturers data seem to be quite reliable.

    Engine Maker / Type Lub oil systemManufacturer's

    dataMeasured data

    Cylinder lub oil 1.4 g/kWh 1.347 g/kWh

    Circulation lub oil 6.0 kg/cyl/day 9.706 kg/cyl/day

    Diesel GeneratorsMAN B&W

    L28/32Circulation lub oil 1.6 g/kWh 1.328 g/kWh

    Main EngineWrtsil New Sulzer

    RTA 76

    Table 5: Comparison between manufacturers and measured data for the specific lub oilconsumption of a 2,000 TEU container ship over a period of approx. one year

    3.2.3 Lub oil prices

    Lubrication oil prices can vary significantly depending on the specification of the oil.

    Typical prices at the end of 2004 were approx. US$ 700.- to US$ 900.- per 100 litres.

    Assuming a density of approx. 900 kg/m the price is approx. US$ 780.- to

    US$ 1,000.- per ton.

    Since the strong increase of oil prices in 2005 it is assumed that lub oil prices now

    increases by approx. 50 % to approx. US$ 1,200.- to US$ 1,500.- per ton.

    3.3 Efficiency of alternator

    The efficiency of the alternator is the ratio between the electrical power at the

    generator and the mechanical power of the diesel engine.

    MechanicalAlternatorElectrical PP =

    8 Same vessel as for the specific fuel oil consumption of the diesel generators

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    Ingenieurbro GmbH

    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 12

    Usually the efficiency of the alternator is around 95 %.

    If a PTO (power take off) from the propeller shaft is used there usually a gear box is

    installed to increase the alternator speed. In this case the mechanical efficiency of the

    gear box has to be taken into consideration, too.

    MechanicalAlternatorGearboxElectrical PP =

    The efficiency of the gear box can be assumed to be approx. 97 %, so that the overall

    efficiency of gear box and alternator would be 92.15 %.

    4 Cost calculation

    Based on the above explained relations the specific cost calculation per electrical kWh

    can be made up as shown in Table 6. The example calculation is based on the use of

    MDO (as can be seen from the heating value) at a price of US$ 600.- per ton. The

    specific fuel consumption is set to be 246.5 g/kWh. The overall specific cost then add

    up to approx. 15 ct/kWh in this case. The lub oil consumption is only making up

    approx. 1.3 % of the overall cost while the main cost factor is the fuel oil. When using

    HFOs / IFOs this proportion will increase to approx. 2.5 %.

    600 $/t

    42,7 MJ/kg

    11,9 kWh/kg

    36%95%

    34,2%

    234,2 g/kWh

    246,5 g/kWh

    Overall specific fuel cost 4,109 ct/MJ14,791 ct/kWh

    1300 $/t

    1,50 g/kWh1,58 g/kWh

    0,205 ct/kWh

    14,996 ct/kWh

    Specific fuel consumption (electrical power)

    Spec. lub oil cost (electrical power)

    Specific fuel Cost

    Overall specific cost

    Spec.lub oil consumption (mechanical power)

    Lub oil cost

    Overall efficiency

    Efficiency of alternatorThermal efficiency of diesel engine

    Lower heating value

    Specific fuel consumption (mechanical power)

    Spec.lub oil consumption (electrical power)

    Table 6: Cost calculation (yellow fields are input fields)

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    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 13

    Table 7 shows the specific cost when varying the specific fuel consumption and the fuel

    oil price.

    Thermal

    Efficiency

    Specific Fuel

    Consumption100 $/t 200 $/t 300 $/t 400 $/t 500 $/t 600 $/t 700 $/t 800 $/t 900 $/t

    25% 355,0 gr/kWh 3,8 ct/kW h 7,3 ct/kW h 10,9 ct/kW h 14,4 ct/kW h 18,0 ct/kW h 21,5 ct/kW h 25,1 ct/kW h 28,6 ct/kW h 32,2 ct/kW h

    26% 341,3 gr/kWh 3,6 ct/kW h 7,0 ct/kW h 10,4 ct/kW h 13,9 ct/kW h 17,3 ct/kW h 20,7 ct/kW h 24,1 ct/kW h 27,5 ct/kW h 30,9 ct/kW h

    27% 328,7 gr/kWh 3,5 ct/kW h 6,8 ct/kW h 10,1 ct/kW h 13,4 ct/kW h 16,6 ct/kW h 19,9 ct/kW h 23,2 ct/kW h 26,5 ct/kW h 29,8 ct/kW h

    28% 317,0 gr/kWh 3,4 ct/kWh 6,5 ct/kW h 9,7 ct/kWh 12,9 ct/kWh 16,1 ct/kW h 19,2 ct/kW h 22,4 ct/kWh 25,6 ct/kWh 28,7 ct/kW h

    29% 306,0 gr/kWh 3,3 ct/kWh 6,3 ct/kW h 9,4 ct/kWh 12,4 ct/kWh 15,5 ct/kW h 18,6 ct/kW h 21,6 ct/kWh 24,7 ct/kWh 27,7 ct/kW h

    30% 295,8 gr/kWh 3,2 ct/kWh 6,1 ct/kW h 9,1 ct/kWh 12,0 ct/kWh 15,0 ct/kW h 18,0 ct/kW h 20,9 ct/kWh 23,9 ct/kWh 26,8 ct/kW h

    31% 286,3 gr/kWh 3,1 ct/kWh 5,9 ct/kW h 8,8 ct/kWh 11,7 ct/kWh 14,5 ct/kW h 17,4 ct/kW h 20,2 ct/kWh 23,1 ct/kWh 26,0 ct/kW h

    32% 277,3 gr/kWh 3,0 ct/kWh 5,8 ct/kW h 8,5 ct/kWh 11,3 ct/kWh 14,1 ct/kW h 16,8 ct/kW h 19,6 ct/kWh 22,4 ct/kWh 25,2 ct/kW h

    33% 268,9 gr/kWh 2,9 ct/kWh 5,6 ct/kW h 8,3 ct/kWh 11,0 ct/kWh 13,7 ct/kW h 16,3 ct/kW h 19,0 ct/kWh 21,7 ct/kWh 24,4 ct/kW h

    34% 261,0 gr/kWh 2,8 ct/kWh 5,4 ct/kW h 8,0 ct/kWh 10,6 ct/kWh 13,3 ct/kW h 15,9 ct/kW h 18,5 ct/kWh 21,1 ct/kWh 23,7 ct/kW h

    35% 253,6 gr/kWh 2,7 ct/kWh 5,3 ct/kW h 7,8 ct/kWh 10,3 ct/kWh 12,9 ct/kW h 15,4 ct/kW h 18,0 ct/kWh 20,5 ct/kWh 23,0 ct/kW h

    36% 246,5 gr/kWh 2,7 ct/kWh 5,1 ct/kW h 7,6 ct/kWh 10,1 ct/kWh 12,5 ct/kW h 15,0 ct/kW h 17,5 ct/kWh 19,9 ct/kWh 22,4 ct/kW h

    37% 239,9 gr/kWh 2,6 ct/kWh 5,0 ct/kW h 7,4 ct/kWh 9,8 ct/kWh 12,2 ct/kW h 14,6 ct/kW h 17,0 ct/kWh 19,4 ct/kWh 21,8 ct/kW h

    38% 233,5 gr/kWh 2,5 ct/kWh 4,9 ct/kW h 7,2 ct/kWh 9,5 ct/kWh 11,9 ct/kW h 14,2 ct/kW h 16,6 ct/kWh 18,9 ct/kWh 21,2 ct/kW h

    39% 227,6 gr/kWh 2,5 ct/kWh 4,8 ct/kW h 7,0 ct/kWh 9,3 ct/kWh 11,6 ct/kW h 13,9 ct/kW h 16,1 ct/kWh 18,4 ct/kWh 20,7 ct/kW h

    40% 221,9 gr/kWh 2,4 ct/kWh 4,6 ct/kW h 6,9 ct/kWh 9,1 ct/kWh 11,3 ct/kW h 13,5 ct/kW h 15,7 ct/kWh 18,0 ct/kWh 20,2 ct/kW h

    41% 216,5 gr/kWh 2,4 ct/kWh 4,5 ct/kW h 6,7 ct/kWh 8,9 ct/kWh 11,0 ct/kW h 13,2 ct/kW h 15,4 ct/kWh 17,5 ct/kWh 19,7 ct/kW h

    42% 211,3 gr/kWh 2,3 ct/kWh 4,4 ct/kW h 6,5 ct/kWh 8,7 ct/kWh 10,8 ct/kW h 12,9 ct/kW h 15,0 ct/kWh 17,1 ct/kWh 19,2 ct/kW h

    43% 206,4 gr/kWh 2,3 ct/kWh 4,3 ct/kW h 6,4 ct/kWh 8,5 ct/kWh 10,5 ct/kW h 12,6 ct/kW h 14,7 ct/kWh 16,7 ct/kWh 18,8 ct/kW h

    44% 201,7 gr/kWh 2,2 ct/kWh 4,2 ct/kW h 6,3 ct/kWh 8,3 ct/kWh 10,3 ct/kW h 12,3 ct/kW h 14,3 ct/kWh 16,3 ct/kWh 18,4 ct/kW h

    45% 197,2 gr/kWh 2,2 ct/kWh 4,1 ct/kW h 6,1 ct/kWh 8,1 ct/kWh 10,1 ct/kW h 12,0 ct/kW h 14,0 ct/kWh 16,0 ct/kWh 18,0 ct/kW h

    46% 192,9 gr/kWh 2,1 ct/kWh 4,1 ct/kWh 6,0 ct/kWh 7,9 ct/kWh 9,9 ct/kWh 11,8 ct/kWh 13,7 ct/kWh 15,6 ct/kWh 17,6 ct/kWh

    47% 188,8 gr/kWh 2,1 ct/kWh 4,0 ct/kWh 5,9 ct/kWh 7,8 ct/kWh 9,6 ct/kWh 11,5 ct/kWh 13,4 ct/kWh 15,3 ct/kWh 17,2 ct/kWh

    48% 184,9 gr/kWh 2,1 ct/kWh 3,9 ct/kWh 5,8 ct/kWh 7,6 ct/kWh 9,4 ct/kWh 11,3 ct/kWh 13,1 ct/kWh 15,0 ct/kWh 16,8 ct/kWh

    49% 181,1 gr/kWh 2,0 ct/kWh 3,8 ct/kWh 5,6 ct/kWh 7,4 ct/kWh 9,3 ct/kWh 11,1 ct/kWh 12,9 ct/kWh 14,7 ct/kWh 16,5 ct/kWh

    50% 177,5 gr/kWh 2,0 ct/kWh 3,8 ct/kWh 5,5 ct/kWh 7,3 ct/kWh 9,1 ct/kWh 10,9 ct/kWh 12,6 ct/kWh 14,4 ct/kWh 16,2 ct/kWh

    51% 174,0 gr/kWh 1,9 ct/kWh 3,7 ct/kWh 5,4 ct/kWh 7,2 ct/kWh 8,9 ct/kWh 10,6 ct/kWh 12,4 ct/kWh 14,1 ct/kWh 15,9 ct/kWh

    52% 170,7 gr/kWh 1,9 ct/kWh 3,6 ct/kWh 5,3 ct/kWh 7,0 ct/kWh 8,7 ct/kWh 10,4 ct/kWh 12,2 ct/kWh 13,9 ct/kWh 15,6 ct/kWh

    53% 167,4 gr/kWh 1,9 ct/kWh 3,6 ct/kWh 5,2 ct/kWh 6,9 ct/kWh 8,6 ct/kWh 10,3 ct/kWh 11,9 ct/kWh 13,6 ct/kWh 15,3 ct/kWh

    54% 164,3 gr/kWh 1,8 ct/kWh 3,5 ct/kWh 5,1 ct/kWh 6,8 ct/kWh 8,4 ct/kWh 10,1 ct/kWh 11,7 ct/kWh 13,4 ct/kWh 15,0 ct/kWh

    55% 161,4 gr/kWh 1,8 ct/kWh 3,4 ct/kWh 5,0 ct/kWh 6,7 ct/kWh 8,3 ct/kWh 9,9 ct/kWh 11,5 ct/kWh 13,1 ct/kWh 14,7 ct/kWh

    other relevant input data: Lower heating value 42,7 MJ/kg Specific lub oil consumption 1,50 gr/kWh

    Efficiency of alternator 95% Lub oil price 1300 $/t

    Specific fuel consumption is related to electrical kWh at alternator output

    Efficiency

    ofdieselengine

    Specific Electrical Energy Cost on Ships

    Fuel Oil Price

    Table 7: Calculated specific cost (per kWh electrical energy) depending on the thermal efficiency ofthe diesel engine and the fuel oil price

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    Dr.-Ing. Yves

    File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 14

    5 Summary

    The results of the cost calculations are shown in Fig. 7. Taking into consideration thefour main potential ways of generating electrical power on board ships the following

    areas as show in Fig. 7 can be separated:

    Cost of Electrical Power

    0,0 ct/kWh

    5,0 ct/kWh

    10,0 ct/kWh

    15,0 ct/kWh

    20,0 ct/kWh

    25,0 ct/kWh

    30,0 ct/kWh

    35,0 ct/kWh

    100 $/t 200 $/t 300 $/t 400 $/t 500 $/t 600 $/t 700 $/t 800 $/t 900 $/t

    Bunker Price

    SpecificCost

    350,0 gr/kWh340,0 gr/kWh330,0 gr/kWh320,0 gr/kWh310,0 gr/kWh300,0 gr/kWh290,0 gr/kWh

    280,0 gr/kWh270,0 gr/kWh260,0 gr/kWh250,0 gr/kWh240,0 gr/kWh230,0 gr/kWh220,0 gr/kWh210,0 gr/kWh200,0 gr/kWh190,0 gr/kWh180,0 gr/kWh170,0 gr/kWh160,0 gr/kWh150,0 gr/kWh

    HFO / IFO operationof diesel generators

    MDO operationof diesel generators

    HFO / IFO operation

    of main engine with

    shaft generator

    Specific fuel

    consumption related

    to electrical kWh

    MGO operation

    of power packs

    Fig. 7: Calculated specific cost (per kWh electrical energy) depending on the specific fuelconsumption (per electrical kWh) of the diesel engine and the fuel oil priceMGO operation of mobile diesel generators (power packs) with a specific fuel

    consumption varying from 280 to 330 g/kWh and fuel oil prices between US$ 600 to

    US$ 700 per ton. The resulting specific cost will range from approx. 17.0 ct/kWh to

    23.0 ct/kWh.

    MDO operation of diesel generators with a specific fuel consumption varying

    from 210 to 260 g/kWh and fuel oil prices between US$ 600 to US$ 700 per ton. The

    resulting specific cost will range from approx. 12.5 ct/kWh to 18.5 ct/kWh.

    HFO/IFO operation of diesel generators with a specific fuel consumption varying

    from 240 to 290 g/kWh (due to lower calorific value) and fuel prices between

    US$ 300 to US$ 400 per ton. The resulting specific cost will range from approx.

    7.5 ct/kWh to 12.0 ct/kWh.

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    HFO/IFO operation of main engine with shaft generator with a specific fuel

    consumption varying from 190 to 220 g/kWh (due to lower calorific value and gear

    box but better efficiency of the engine and operation at optimum load) and fuel pricesbetween US$ 300 to US$ 400 per ton. The resulting specific cost will range from

    approx. 6.0 ct/kWh to 9.0 ct/kWh.

    Hamburg, the 17th September 2005

    (this document has been transmitted by emailand is therefore not signed)

    Dr.-Ing. Yves WildOfficially appointed andSworn expert for RefrigerationChamber of Commerce, Hamburg