Clean Marine AS

Exhaust Gas Cleaning System

Intertanko ,09 May 2014

12 May 2014 1
Clean Marine is fully dedicated to emission cleaning
• Company created in 2006
• Invested more than USD 25 mill in EGCS development
• Patented Hybrid, Allstream system: connecting all exhaust sources to a single scrubbing unit
• 35 employees with deep maritime and process expertise

• HQ in Oslo, Norway
• The major shareholders are well-reputed maritime investors:
– Klaveness Invest AS (Klaveness Marine)
– Nanga Partnership L.P. (advised by Smedvig Capital)
– AS Atlantis Vest (Rieber)

12 May 2014 2
 IMO Annex VI Sulfur requirements
Sulfur in fuel 2015 2020 (*) 2025
4,5 %

3,5 %
(*) Pending fuel situation in
2018

• Local requirements will probably be

aligned with ECA

• Legislation for EU Ports and California

1,0 % presently require 0,1% sulfur content

0,5 %
GLOBAL 60,000 vessels affected?

0,1 % ECA 8,000 vessels affected?

Today 2015 2020 2025

Only a few months left for ship owners to comply…

The business case for installing an EGCS

Options for compliance with regulations:

1. Switch to distillate (MGO) – pay the extra fuel bill Payback
(years)
2. Install EGCS – continue operation on HFO
10
3. Switch to other fuel types (LNG or LPG) – limited supply 9
8
7
6 Price diff. < 300
5
Optimal choice depend on: 4
3
1. How much the vessel will be trading in ECA 2
1 Price diff > 300 ECA%
2. The power (MW) and fuel consumption of the vessel 20% 40% 60% 80% 100%

3. Assumed price difference between MGO and HFO

Example:
10MW vessel trading in ECA and USD 300 fuel spread gives fuel cost = USD 3,4 mill./year
EGCS price: USD 2,6 mill + Installation cost USD 0,8 mill = USD 3,4 mill.

“The cost savings are so significant that some ship operators may find installing an EGCS a competitive
necessity.” The Society of Naval Architects and Marine Engineers
12 May 2014 4
Our goal is to be the preferred EGCS for Cargo Vessels
Value offering and Product Categories

Vessel Segment
Clean Marine’s unique technology:
Cargo vessels (Tank, Gas, Bulk, Ro-Ro, Container)
No backpressure
 Has many different exhaust sources
Savings for Ship owner

Open Loop in all waters

All stream  Needs trading flexibility
(ME, AE & boilers)

Passenger vessels & Large Cargo vessels

Multi stream
(ME and AE connected,
but not boilers)

Cruise and Ferry (Retrofit)

Single stream Small or very large vessels
(One scrubber per source)

No. of scrubber installations

12 May 2014 6
How we decide capacity & layout
Capacity of the EGCS = highest accumulated exhaust flow during operation
(not accumulated installed power)

Most demanding operational mode for AET Shutte Tanker:

“Sea going with tank heating”:
Machinery in kW at 100% Load Load Exhaust
operation MCR % kW production
kg/h
2 x ME 2 X 7 250 2 X 90% 13 500 128 250
(6G50ME-B9.3)
3 x AE 3 x 3 000 0% 0 0
(6H32/40) DIMENSIONS OF THE EGC UNIT
2 x AE 2 x 4 000 1 x 85% 3 400 25 500
Height (H): 19 m
(8H32/40)
Width (W): 9,8 m
2 x Oil-fired 2 x 25 ton /h 2 X 80% 49 920 Depth (D): 5,6 m
boiler Weight: 35 mt
1 x Donkey 1 x 4 ton/h 0% 0
boiler Water flow: 900 m3/h
NaOH flow: 280 l/h Max
Total exhaust that may be produced simultaneously 203 670 El power requirement.: 400 kW (1,5-2% of load)
EGCS model = nearest size in product range 220 000
Our EGCS is the only proven “Allstream” system currently
on the market

Allstream High trapping efficiency

• All exhaust sources served by • SOx
one single scrubbing unit • PM
• Zero back pressure
• No blockage risk

Hybrid – open / closed loop Easy to operate and monitor

• Seamless operation • Excellent noise abatement
• High pH in washwater, • Self cleaning
exceeding IMO regulations • Installation friendly

12 May 2014
Retrofit potential:
14,000 medium-sized cargo ships in the existing fleet

NB! Only vessels built after 2005 considered as EGCS candidates

Newbuilding potential: Current orderbook counts some
2,000 vessels in our target segments
No. of target vessels (with IMO number) on order
82
166
476

TANKERS

BULKERS

CONTAINER VESSELS

RO-RO

1,306

Source: www.sea-web.com
The tanker fleet is mainly being built in Korea, where Clean
Marine has gained valuable experience at SHI and HHI
Product and commercial development
Hudong -2 vessels
Chemical
Tanker
HHI – 1 vessel

Baru
VLGC
Balder SHI – 2 vessels
Founded 2006
Shuttle
Tanker

Time
2004-2008 2009-2011 2011- 2012 2013 2014

Holeby (DK) Marintek (NO)

12 May 2014 12
Operational data from MV Balder
Item Value / Comment
Running hours 1800
Max. sulfur content in fuel used 3,4%
Achieved cleaning (sulfur equivalent) Below 0,1% s
pH of washwater at outlet Above 5,5
Closed Loop operation Seawater rather than freshwater
Seawater flow in Open Loop ~400 m3 per 10 MW installation
Power consumption 1,5-2% of treated power

MED-B MED-F Flag state approval

Fully
certified:

12 May 2014 13
 Timeline for the Balder retrofit project:
Key issues / lessons learned
2012
Phase Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Plan • Contract • Select yard • Equip. • Approval

• Signed shipment drawing
• Order • Equipment
equip. delivery

Install 33 days in dock Finish outstanding work (piping, electrical) while

(Victor Lenac, Croatia) trading…

Start Function Testing

up
2013

Phase Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Modify Initial performance tests Optimization of cleaning process , Closed Loop function/ performance testing
Open Loop Open Loop
&
Test

Certify Submission Class IAPP Present IMO

• OMM approval! certificate system for circular
• ETM-B Issue d cert: endorse- USCG
• SECA plan • MED-B ment
• MED-F

12 May 2014 14
 Planning, delivery and comissioning of the EGCS is
estimated to take minimum 6 months for a retrofit project

Needed • GA plan Letter of Installation

Input: • Capacity plan intent Contract
• Funnel
structure

Concept Study Detailed Study Preplanning Installation Commissioning

(4 weeks) (4-6 weeks) (12-14 weeks) (4-6 weeks) (1 week)

Output: • Layout • Layout verification • Equipment • Equipment ready • Successful test

• Equipment spec. • Ship inspection ordering installed and during voyage
• Installation • Installation spec. • Logistics approved
requirements • BOM and P&ID • Plan draft & • Final
• Budget approval documentation
• Yard quotes
• Equipment quotes • Installation scope -
prefabrication

12 May 2014
15
 How we ensure EGCS performance

Research & Development Real Life experience

Simulations & Installations

Testing (Marintek , Baru,
Balder)

FMEA

• Predictability (Risk analysis and

Site Managers & Risk mitigation,
• Reliability response
Service network Maintenance requirements
• Performance plan)

16
 GENERAL DESCRIPTION:
SAMSUNG HEAVY INDUSTRIES
HULL NO. 2065/66 Name:
Type:
H2065 and H2066
DP Shuttle tanker
DP SHUTTLE TANKER Owner:
Management:
AET SEA Shuttle AS
OSM Ship Management
Charterer: Statoil
Class: DNV
Yard: Samsung Heavy Industries
Delivery date: 30th November 2014 and 31st March
2015
Imo. No.: 9676125 and 9676137
Flag: Bahamas
Deadweight: 120.000 dwt

SCRUBBER DETAILS:

ALLSTREAM HYBRID (OPEN AND CLOSED LOOP)

SERVING THE FOLLOWING EXHAUST PRODUCING MACHINERIES:

• 2 x ME, MAN 6G50ME-B9.3, 7250 kW at 85 rpm at 100% MCR
• 3 x AE, 6H32/40, 3000 kW each at 720 rpm 100% MCR
• 2 x AE, 8H32/40, 4000 kW each at 720 rpm at 100% MCR.
• 2 x Oil-fired boilers, 25 ton/h each at 100% MCR.
• 1 x Donkey boiler, 4 ton/h at 100% MCR.

DIMENSIONS & WEIGHT OF THE EGC UNIT

HANDLING 220.000 KG EXHAUST/HOUR:

Height (H): 19 m
Width (W): 9,8 m
Depth (D): 5,6 m
Weight: 35 mt
Water flow: 900 m3/h
NaOH flow: 280 l/hMax
El power rqmt.: 400 kW (max 1,5-2% of load)

MAJOR SCOPE:
pumps with variable frequency drive, filters, cooler, gas (Nox, PM, CO2
and SO2) and water quality (pH, PAH, Turbidity) monitoring, valves,
flow meters, sensors (pressure, temp, level),switchboard, PLC
 GENERAL DESCRIPTION:
HUDONG ZHONGHUA
Name: H1711A and H1712A
SHIPBUILDING GROUP Type: Chemical Tanker
HULL NO. 1711 A and 1712A Owner: Stolt Tankers
Class: DNV
CHEMICAL TANKER Yard: Hudong Zhonghua Shipbuilding Group Co., Ltd.
Delivery: Dec 2016 and Feb 2017
Imo. No.: 9680114 and 9720081
Flag: Cayman Islands
Dwt: 38.000 dwt

SCRUBBER DETAILS:

- HYBRID (OPEN & CLOSED LOOP)

- ONE SINGLE MULTI STREAM EGC UNIT
SERVING FOLLOWING EXHAUST PRODUCING MACHINERY:
• 1 x ME, 7900 kW at 100% MCR
• 3 x AE, 1100 kW each at 100% MCR
• 2 x Boiler, 13000 kW each at 100% MCR
• 1 x Composite Boiler

DIMENSIONS & WEIGHT OF THE EGC UNIT

HANDLING 140.000 KG EXHAUST/HOUR:

Height (H): 16,8 m

Width (W): 8,9 m
Depth (D): 4,7 m
Weight: 30,5 mt
Water flow:: 560 m3/h
El. power req.: Max. 280 Kw (1,5-2% of load)

MAJOR SCOPE:
EGC unit complete with 2 fans and 5 exhaust gas connections,
pumps with variable frequency drive, filters, cooler, NaOH
dosage system, gas (SO2/CO2) and water (PAH , turbidity, pH,
flow) analyzers, temperature and pressure monitoring,
valves, flow meters, exhaust dampers (bypass), switchboard,
PLC, Documentation and Certification, Services during
planning, installation and commissioning.
 GENERAL DESCRIPTION:
HYUNDAI HEAVY INDUSTRIES
HULL NO. 2658 (Dorian Corvette) Name: Dorian Corvette
Type: ECO VLGC
VERY LARGE GAS CARRIER Owner: Dorian LPG Ltd.
Operator: Dorian Hellas Dorian ell
Class: ABS
Yard: Hyundai Heavy Industries Co. Ltd.
Delivery : December 2014
Imo. No.: 9703837
Flag: Marshall Island
Deadweight: 51 620 dwt
Gas capacity: 84 000 m3

SCRUBBER DETAILS:

ALLSTREAM HYBRID (OPEN AND CLOSED LOOP)

SERVING FOLLOWING EXHAUST PRODUCING MACHINERY:

• 1 × ME, MAN-B&W 6G60ME-C9.2, 12400 kW at 100% MCR
• 3 × AE, HYUNDAI-HIMSEN 8H21/32, 1600 kW each at 100% MCR
• 1 × Oil-fired boiler

DIMENSIONS & WEIGHT OF THE EGC UNIT

HANDLING 140.000 KG EXHAUST/HOUR:

Height (H): 17 m
Width (W): 8,9 m
Depth (D): 5 m
Weight: 33,2 mt
Water flow:: 560 m3/h
El. power req.: Max. 280 Kw (1,5-2% of load)

MAJOR SCOPE:
EGC unit complete with 2 fans and 5 exhaust gas
connections, pumps with variable frequency drive, filters,
cooler, NaOH dosage system, gas (SO2/CO2) and water (PAH ,
turbidity, pH, flow) analyzers, temperature and pressure
monitoring, valves, flow meters, exhaust dampers (bypass),
switchboard, PLC, Documentation and Certification, Services
during planning, installation and commissioning.
 Thank you!

Atle Haugen – Sales Manager Clean Marine AS

aha@cleanmarine.no

+4791348783

12 May 2014 20
 A growing network of site managers and dedicated agents
in Europe/Asia facilitate sales, fabrication & service

Head office

• Sales agents
• Site Managers
• Fabrication
• After Sales
 GENERAL DESCRIPTION:
HYUNDAI HEAVY INDUSTRIES
HULL NO. 2658 (Dorian Corvette) Name: Dorian Corvette
Type: ECO VLGC
VERY LARGE GAS CARRIER Owner: Dorian LPG Ltd.
Operator: Dorian Hellas Dorian ell
Class: ABS
Yard: Hyundai Heavy Industries Co. Ltd.
Delivery : December 2014
Imo. No.: 9703837
Flag: Marshall Island
Deadweight: 51 620 dwt
Gas capacity: 84 000 m3

SCRUBBER DETAILS:

ALLSTREAM HYBRID (OPEN AND CLOSED LOOP)

SERVING FOLLOWING EXHAUST PRODUCING MACHINERY:

• 1 × ME, MAN-B&W 6G60ME-C9.2, 12400 kW at 100% MCR
• 3 × AE, HYUNDAI-HIMSEN 8H21/32, 1600 kW each at 100% MCR
• 1 × Oil-fired boiler

DIMENSIONS & WEIGHT OF THE EGC UNIT

HANDLING 140.000 KG EXHAUST/HOUR:

Height (H): 17 m
Width (W): 8,9 m
Depth (D): 5 m
Weight: 33,2 mt
Water flow:: 560 m3/h
El. power req.: Max. 280 Kw (1,5-2% of load)

MAJOR SCOPE:
EGC unit complete with 2 fans and 5 exhaust gas
connections, pumps with variable frequency drive, filters,
cooler, NaOH dosage system, gas (SO2/CO2) and water (PAH ,
turbidity, pH, flow) analyzers, temperature and pressure
monitoring, valves, flow meters, exhaust dampers (bypass),
switchboard, PLC, Documentation and Certification, Services
during planning, installation and commissioning.
 GENERAL DESCRIPTION:
HUDONG ZHONGHUA
Name: H1711A and H1712A
SHIPBUILDING GROUP Type: Chemical Tanker
HULL NO. 1711 A and 1712A Owner: Stolt Tankers
Class: DNV
CHEMICAL TANKER Yard: Hudong Zhonghua Shipbuilding Group Co., Ltd.
Delivery: Dec 2016 and Feb 2017
Imo. No.: 9680114 and 9720081
Flag: Cayman Islands
Dwt: 38.000 dwt

SCRUBBER DETAILS:

- HYBRID (OPEN & CLOSED LOOP)

- ONE SINGLE MULTI STREAM EGC UNIT
SERVING FOLLOWING EXHAUST PRODUCING MACHINERY:
• 1 x ME, 7900 kW at 100% MCR
• 3 x AE, 1100 kW each at 100% MCR
• 2 x Boiler, 13000 kW each at 100% MCR
• 1 x Composite Boiler

DIMENSIONS & WEIGHT OF THE EGC UNIT

HANDLING 140.000 KG EXHAUST/HOUR:

Height (H): 16,8 m

Width (W): 8,9 m
Depth (D): 4,7 m
Weight: 30,5 mt
Water flow:: 560 m3/h
El. power req.: Max. 280 Kw (1,5-2% of load)

MAJOR SCOPE:
EGC unit complete with 2 fans and 5 exhaust gas connections,
pumps with variable frequency drive, filters, cooler, NaOH
dosage system, gas (SO2/CO2) and water (PAH , turbidity, pH,
flow) analyzers, temperature and pressure monitoring,
valves, flow meters, exhaust dampers (bypass), switchboard,
PLC, Documentation and Certification, Services during
planning, installation and commissioning.
 How we ensure EGCS performance

Research & Development Real Life experience

Simulations & Installations

Testing (Marintek , Baru,
Balder)

FMEA

• Predictability (Risk analysis and

Site Managers & Risk mitigation,
• Reliability response
Service network Maintenance requirements
• Performance plan)

24
 Extra slides

12 May 2014 25
 Transport from steel work facility in Tallinn, Estonia

12 May 2014 26
With proven technology and the recent contracts with
major Asian yards we are well positioned for sales growth
Samsung / AET project:
10 exhaust • Contracts for EGCS installations:
sources (2xME, • MV Balder: EGCS retrofitted in
5xAE, 3xBoiler ) 2012/2013 and is now fully certified
• Samsung / AET – 2 Shuttle Tankers
served by (delivery Q4 2014 + Q1 2015)
one EGCS! • Hyundai / Dorian– 1 VLGC (delivery
Dec. 2014)
• Hudong / Stolt Tankers – 2 Chemical
Tankers (delivery 2016 & 2017)

• Main focus: tankers, bulk, Ro-Ro,

containers

12 May 2014
Installation, supervision & commissioning

12 May 2014 28
Present market share:
Clean Marine “number 3” for cargo vessels

- Targets Cruise vessels

Planning, delivery & commissioning of a EGCS for newbuilding

450 pages

Approval Working Final

Quote Contract
drawings drawings drawings

Procure- Test &

Installation
ment Commissioning

After
Certification Training
sales

12 May 2014
30
The EGCS is mostly fitted inside the funnel of the vessel

12 May 2014 31
Seawater and NaOH solution is sprayed into the gas steam
and the water mix captures the sulfur

12 May 2014 32
The gas recirculation mechanism ensures there is no
backpressure to the engines and boilers

• Two fans with capacity in excess of exhaust production prevents pressure to build up
• An open nozzle ring allows gas to pass between raw gas and clean gas side
• The combined effect of fans and nozzle ring ensure that pressure in manifold is +/- 0
• Pressure detector in manifold activate bypass if exceeding preset values

12 May 2014 33
Washwater discharged to sea is well within IMO limits:
pH > 5,5 at outlet is harmless for the marine environment

12 May 2014 34
Open Loop = “single cycle process” where the cleaning
water is discharged back to sea after the scrubbing process

12 May 2014 35
Closed Loop = cleaning water is recirculated and
discharged to a holding tank rather than to the sea

12 May 2014 36
 Norway: Sweden:
• NaOH / analyzer cabinet • Gas measurement
• Control system instrument

Estonia:
USA (California)
Steel work & fans
PAH measurment Denmark:
instrument Poland: Dampers S.Korea:
Pumps Shipyard
Germany: Israel:
Filters AVC

China:
• Pumps
• Heat exchanger

The various EGCS components are sourced from selected

suppliers worldwide and shipped to the yard for assembly

12 May 2014 37
 The rationale behind using NaOH also in Open Loop
• Clean Marine EGCS produces washwater • Other EGCS designs produces
with pH > 5.5 in both modes washwater with pH < 3 in Open Loop
• Can run in the more economical Open • Needs to run in Closed Loop mode
Loop mode in all waters and ports in some waters and ports
NaOH consumed NaOH consumed
(liters / %s / mt HFO (liters / %s / mt HFO
with 3.5% content) with 3.5% content)

0.1% s 0.1% s 0.1% s

25 25

12 0.1% s 12

0.5%s
0.5%s
OPEN OPEN CLOSED OPEN 99% CLOSED 100% CLOSED
LOOP LOOP LOOP LOOP LOOP LOOP
The Clean Marine EGCS can in Open Loop mode efficiently remove
SO2 from the exhaust when operating in all seas (incl. lakes, rivers
and ports) globally, independently of alkalinity/salinity levels in the
surrounding water

Alkalinity levels will vary with weather/seasons

and nearby discharges from land

• Open sea alkalinity: Surface data (0… 15 m)

Illustration from Wikipedia
• Data from 2001-2005
• Typical open sea alcalinity outside Baltic Sea
is ca. 2200 – 2400 µmol/L
The CO2 footprint by using NaOH + seawater is smaller
than using only seawater
Using NaOH additive to maintain higher pH is better for the environment than the “SO2 - CO2 swap” caused by the pH raise
from 2,5-3,0 to 8,0 when effluent water is discharged

100% CO₂ footprint SW 100%

NaOH production electricity sourcing:

50% Coal

25% Gas

1% Hydro/Nuclear
SW only NaOH only
Open Loop Hybrid system w/NaOH Closed Loop

12 May 2014 40
Class approval and documentation

Approval of EGC Systems (Scheme B)

in accordance with MARPOL Annex VI and MEPC.184(59):

Approval process for continuous exhaust gas monitoring system

1. FAT / certification of control and monitoring 3. Initial survey

system prior to delivery from maker
2. Examination of documents:
• SECP (SOx Emissions Compliance Plan)
• OMM (Onboard Monitoring Manual)
• ETM-B (EGCS Tech. Manual for Scheme B)
• EGC Record Book or Electronic Log System
• Test plan for commissioning, incl.test fuel
• Check EGC system operation,
monitoring and data logging
• Verification of EGCs-SOx units according
to MARPOL Annex VI
• Verification of pH washwater criteria
MEPC.184(59) §10.1.2.1
4. Certification and Flag approval
• Issue of MED-certificates
• Endorsement of IOPP certificate

5. IMO circular

12 May 2014 41
 MED-B

MED-F

12 May 2014 42
Considerations for EGCS retrofit installations

Item Issues Risks

Contracting Slow decision making Poor planning

What and how to install Configuration onboard and size Suboptimal solutions and extra cost

Selection – installer/yard Unpredictable trading pattern Insufficient lead time

Preparations Insufficient documentation Wrong / late deliveries

Installation Preparedness Serial work (longer installation time)

Test & Comissioning Outstanding work Loss of time/deadlines

43
 SECA report: status of actions by ship owners & ports
as per November 2013, survey done by European Shortsea Network
• On average about 5 000 ships trade in the SECA, more than 2 000 ships stay in the
SECA 100 % of their operating time and 85 % of the fuel consumed in SECA is HFO
• Most ship owners plan to switch to MGO in 2015 and additional demand is estimated
to be 10-12 million tonnes MGO. The price difference between MGO and HFO is
expected to stay at US$ 300-400/tonne
• Some 60 scrubber installations and orders were reported in the survey
• A two tier market will develop and the chartering market will very soon have
different rate levels for ships with and without scrubber
• At today’s LNG prices, ship owners hesitate to make conversions or order new ships
with LNG. The world-wide LNG-powered fleet only counts 42 ships with additional 39
ships on order. Most ships on order are either Norwegian (benefit from investment
support from the Norwegian NOx-fund) or intended for trades outside the European
SECA.
• Support or incentives for the use of new technologies or practices is provided
currently only by Finland and Norway, as well as by EU programs, such as Trans-
European Transport Network, TEN-T.
Reference: ESN, the Way Forward –project, Nov 2013: http://www.shortsea.info 44
 The scrubbing systems are rather complex and large
installations, but there are also concerns related to
LSFO as a compliance strategy in ECA’s
Concerns for Fuel Selection
• Price of low sulfur fuel vs. high sulfur fuel
(currently 300 USD/mt, may increase)
• Cost of additional equipment and systems
• Additional tanks for fuels and lubricants
• Availability of fuels in ports globally
• Bunkering delays due to loading of special
fuels which can interfere with cargo
• Potential hazards to crew, vessel and
machinery associated with special fuels
• Incomplete standards and regulations for the
supply and use of some fuels on ship
Concerns for use of Scrubbing system
• Cost of scrubbing unit, including installation
• Vessel down time for scrubber installation
• Increased tankage to support scrubbing system
• Additional systems necessary (evaporators, pumps,
heat exch., treatment systems, through hull fittings)
• El. power generation requirement
• Physical size constraints for installation of systems
• Combustion unit limitations (max. permissible
backpressure)
• Long term maintenance and upkeep of the systems
• Availability of treatment chemicals
• Disposal costs for scrubber waste

Reference: “Marine Vessel Environmental Performance Assessment Guide: Air Emissions: Sulfur Oxides »
Technical and Research Program, The Society of Naval Architects and Marine Engineers 45