Opportunities and limitations for connection cruise ...

Opportunities and limitations for

connection cruise vessels to shore power

Bergen / Norway, November 8th-9th 2017

Erik Dugstad, DNV GL

at the Workshop “Sustainable Energy Supply & Innovative Solutions for Emission Reduction

Improved Ports – Cruise Line Collaboration”, Bergen/Norway

DNV GL © 2015 08 November 2017 SAFER, SMARTER, GREENERDNV GL © 2015

08 November 2017

Opportunities and limitations for connection cruise vessels to shore power

1

Green Port Day, Bergen

DNV GL © 2015 08 November 2017

Agenda

2

About the project

Key input and assumptions

Business case from cruise operators perspective

Business case from five ports perspective

Key issues for a Business Plan


DNV GL – Safer, Smarter, Greener – since 1864

3

MARITIME OIL & GAS ENERGY BUSINESS

ASSURANCE

SOFTWARE


Project for Port of Bergen, as a GCP project partner

Business case analysis’ for establishing on shore power supply in selected ports is conducted to provide a set of general recommendation for GCP continued effort on OPS for cruise

vessels

About the project

4

Business

case

analysis

Work-

shop

- Shore-to grid solution

- LNG-power-barge

solution

- Investment cost

- Operational cost

- Input

- Discussions

GCP

Business

Plan

Input


Index energy prices 2017-2037

5

-20%

0%

20%

40%

60%

80%

100%2 0

17

2 0

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2 0

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Souther Norway Germany Finland Estonia MGO LNG


Total electricity charges – port purchase price

6

*

* 25% for MGO and 40% for LNG

0

50

100

150

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250

Be

rge

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2019 2030

EU

R/M

Wh

Electricity price Grid tariffs National taxes Price per MWh, adjusted for power efficency Full electricity charges*


0

50

100

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200

250

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ki -

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ri

MG

O

LN

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2019 2030

EU

R/M

Wh

Electricity price Grid tariffs National taxes Price per MWh, adjusted for power efficency Full electricity charges

Total electricity charges – port purchase price

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* 25% for MGO and 40% for LNG

*


General assumptions

8

General assumptions

Exchange rates USD per 1 EUR: 1.2

NOK per 1 EUR: 9.4

SEK per 1 EUR: 9.5

Inflation 2 % p.a.

Interest rate 2 %

Recovery period 20 years for the port business cases15 years for cruise operators business cases

Type of loan Annuity

Cruise season April throughout October (7 months)No alternative use of OPS in the off-cruise season is assumed

Vessel capacity demand Average of 7 MW (typically between 6 and 8 MW)


Port specific assumptions

ElementBergen -Skolten

Hamburg-HafenCity

Rostock -Warnemünde

Tallinn - Old City Harbour

Helsinki -Hernesaari

Calculation period 2018 – 2037 for all ports

Construction period 2018 for all ports

OPS from 2019 for all ports

Connection points 3 2 2 3 2

Vessel traffic

-Port calls

-Av. Lay Time250 per year

12 hours65 per year

15 hours150 per year

12 hours240 per year

8 hours100 per year

9 hours

-OPS share Average of 60 % for all ports

Connection and disconnection of OPS equipment

1 hours for all ports

O&M costs - shore power facility (Port)

Operational costs: 500 EUR per port call for all ports

Maintenance costs: 20,000 EUR per year for all ports

O&M costs – on-board installation (Vessel)

10,000 EUR for all vessels

O&M costs – MGO Maintenance costs: 1.8 EUR per auxiliary engine per hour

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There are substantial investment cost for all ports related to establishment of OPS

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0

5

10

15

20

25

30

Bergen - Skolten Hamburg -

HafenCity

Rostock -

Warnemünde

Tallinn - Old City

Harbour

Helsinki -

Hernesaari

MEU

R

Infrastructure on shore Grid connection

Connection points: 3 2 2 3 2


Business case Bergen Port - Skolten

Full grid tariffs Reduced electricity charges

11

With the current beneficial grid tariffs and modest tax level Bergen Port’s need for investment support is reduced to around EUR 4 million.


Business case Hamburg Port - HafenCity

Base case scenario Reduced electricity charges

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With the current total electricity charges the required investment support is calculated to be in the range of

EUR 22 million. The need for investment will reduced significantly in the reduced electricity charges scenario.


Business case Rostock Port - Warnemünde


13


EUR 40 million. The need for investment will be reduced if beneficial grid tariffs are introduced and the tax

level is reduced, but required investment support is still very high due to high investment cost in Rostock.


Business case Tallinn Port – Old City Harbour


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EUR 25 million. The need for investment will reduced significantly if beneficial grid tariffs are introduced and

the tax level is reduced.


Business case Helsinki Port – Hernesaari


15


EUR 20 million. The need for investment will reduced significantly if beneficial grid tariffs are introduced and

the tax level is reduced.


Port business case- LNG-power-barge

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LNG-power-barge solution has lower onshore investment costs as there is not need for transformers or frequency converter

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0

5

10

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Bergen -

Skolten

Hamburg -

HafenCity

Rostock -

Warnemünde

Tallinn - Old

City Harbour

Helsinki -

Hernesaari

LNG-Power

Barge

ME

UR

Infrastructure on shore Grid connection LNG-power-barge

Connection

points: 3 2 2 3 22


High investment cost and electricity charges makes a LNG-power-barge a more attractive solution, the example of Rostock

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The need for investment support in Rostock is reduced from around EUR 38 million to around EUR 11 million

with a LNG-power-barge solution


Key issues for Business Plan

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General Recommendation for GCP for continued effort on OPS for cruise vessels and ports

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• Work to settle practical issues and include these in standards, such as placing of the connection point on ships

• Work on bridging the development, for example through the use of an LNG-barge to supply OPS, which can increase the utilization of the OPS system

• Reduce the tax on electricity to the minimum tax level

• Have the use of onshore power exempted from renewable obligation cost

• Flexible discounted grid tariffs

• Work with national authorities to find instruments that provide investment support for OPS as to overcome barriers and initial threshold for OPS

• Promote the benefits of OPS to ship owners

Practical issues

Cost of electricity

Promote the benefits

of OPS


Environmental rating


Alternative technical solutions

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7579 79 79

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Num

ber

of ship

s

Year of delivery

Ships in operation Ships on order

Scrubber

Low Sulphur Fuel

Bonnet Technology

Selective Catalytic Reduction (SCR)

Exhaust Gas Recirculation (EGR)

Liquefied Natural Gas (LNG)

Shore Power

Opportunities and limitations for connection cruise ...

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