1. Methanol as the future fuel for shipping
Maritimt Forum Oslofjorden
20 June 2013
Per Stefenson, Stena Rederi AB

2. Short Sea Shipping routes

3. Sulphur regulations in SECA
We have studied 4 different ways of meeting the new sulphur regulation
1. Run on Marine Gas oil with 0,1% sulphur
2. New types of fuel, LNG or Methanol
3. Install exhaust gas cleaning equipment, Scrubbers
4. Reduce operations and adjust to the new situation
The solution will probably be a combination of the alternatives
above
3

4. With adding one oxygen atom a new substance, easier to handle
than LNG, is created
Natural Gas (LNG) Metanol
H
H
H
H
C
Methane CH4 CH3OH
H
H
H
H
O
C
4

5. Methanol is used as a fuel already today – but in limited areas
5

6. Methanol as marine fuel
• Availability, distribution and storage
• Engine technology and adjustment to the ship
• Environment and cost benefit
• Safety and regulations

7. Crude oil well head price
115 $/bbl
843 $/ton
Crude landed (WTI/Brent
approx)
119 $/bbl
872 $/ton
MGO port price
0.062 €/kW
h
1070 $/ton
Natural gas well head price
0.010 €/kWh
183 $/ton Crude
eqv.
LNG cost ex works
0.02 €/kWh
345 $/ton MGO eqv.
LNG along side Göteborg
0.046 €/kWh
845 $/ton MGO eqv.
LNG FOB Zeebrugge
0.03 €/kWh
518 $/ton MGO eqv.
Natural gas well head price
0.010 €/kWh
183 $/ton Crude
eqv.
Methanol cost ex works
0.025 €/kWh
432 $/ton MGO eqv.
Methanol along side
Göteborg
0.044 €/kWh
805 $/ton MGO eqv.
Methanol produced from
forest products
0.072 €/kWh
1244 $/ton MGO eqv.
HFO port price
0.042 €/kW
h
716 $/ton

8. Methanol as a marine fuel Conversion factor energy
equivalence Methanol and
Marine diesel oil
▪ Exhaust emissions – Methanol
equivalent to LNG (SOx, NOx,
PM)
▪ GHG– Methanol leads towards
Zero vision. (Bio- and electro
generated)
▪ Energy security – diversifies
Europe’s energy imports
▪ Economy per ship – ~4 million
USD of added yearly fuel cost
avoided
Advantages for Europe
Price comparison
$ per tonne of fuel oil energy content,
Europe, average spot price, 2012 YTD
645
925
369
0,1%
Marine
Diesel
Oil
721
352
+12%
Methanol
equivalent
marine
diesel oil
-22%
1%
Fuel Oil
Conversion add on Price on the market
X
x2.05

9. Methanol is a solution for green shipping
 Similar positive reductions as LNG in terms of GHG but no methane slip
 Similar positive reductions as LNG in terms of Nox & Sox and particles
 Can be produced from various feedstock
 Green energy source for the future including CCU (Carbon Capture and Use)!
 Infrastructure and safety similar to ethanol and oil
 Liquid – no high pressure or cryogenic storage required
 Big commodity (55 million ton/year)
 Conversion to dual fuel engines of existing vessels possible at low cost
 Bio degradable
But
 Low flashpoint fuel
 Toxic
 Double volume vs Diesel

10. Methanol leads towards the zero vision
From Swedish Ship-owners´ research strategy

11. Renewable energy + CO2 + H2O
= Methanol

12. Conversion from HFO to LNG.
BIT VIKING.
Conversion cost; 1000 EURO/kW

13. Methanol
Conversion cost; 300 Euro/kW
Comparable with Scrubber

14. Tests on Stena Scanrail
SPIRETH

15. Stena Scanrail
SPIRETH – 2012-01-26
SPIRETH - Stena Scanrail
Looking aft at new aux engine room
WT
door to
ER
Fuel treatment room
Methanol to OBATE upgrade
Auxillary Engine Room
2 x Volvo Penta D13 MG – DME version
SPIRETH

16. Stena Scanrail
SPIRETH – 2012-01-26
SPIRETH - Stena Scanrail
Looking aft at new aux engine room
WT
door to
ER
Fuel treatment room
Methanol to OBATE upgrade
Auxillary Engine Room
2 x Volvo Penta D13 MG – DME version
Methanol supply double walled pipe
OBATE
Double walled piping
Ventilation
SPIRETH

17. Next step;
Full conversion, Gothenburg - Kiel
90.000 Cars
90.000 Lorries
Lifted from the road
every year
2 X

18. Methanol Conversion scope
Interface Ship
Automation System
Engine Automation System
Engine related updates:
Cylinder heads
Fuel injection injectors
Fuel pump plungers
Fuel injection high pressure piping
Update of Vessel
Automation System
Ventilation System
Inerting System
HFO to MeOH fuel
tank adaptation
High Pressure
methanol pump

19. Stena’s global methanol project
Initial timeframe for converting Stena’s SECA fleet
Number of
ships
converted
(estimate) 25
2018
1
2014
3
2015
10
2016
20
2017
800
400
125
25
1,000
Methanol required for fuel
Thousand tonnes of methanol

20. THANK YOU
Per Stefenson, Stena Rederi AB
Tel +46 704 855 125
per.stefenson@stena.com