Calorific Value of HFO and MDO Comparison Report

Dr.-Ing. Yves

Expert Opinion

W i l d

Ingenieurbüro GmbH

Refrigeration Engineering Consultancy Marine Engineering Expert Opinions System Engineering Measurements

Our Reference

Address:

2004/0036

Elbchaussee 1

D-22765 Hamburg Germany

Date

Telephone: +49 40 390 70 65 Mobile: +49 172 410 18 26 Fax: +49 40 390 24 75 Email: [email protected] w w w . D r Wi l d . de W e b:

17. September 2005 (revised edition) On behalf of

Thermo King Corp. 314 West 90th Street Minneapolis, MN 55420-3693 Client’s Reference

Titel

Determination of energy cost of electrical energy on board sea-going vessels

by

Dr.-Ing. Yves Wild 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

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

Dr.-Ing. Yves

W i l d Ingenieurbüro GmbH

Content

1 2 3

Scope of this report ..........................................................................................1 Introduction .....................................................................................................1 Cost factors to be considered............................................................................2 3.1 Fuel oil consumption .................................................................................2 3.1.1 Nominal fuel oil consumption .............................................................3 3.1.1.1 Theoretical background ...............................................................3 3.1.2 Effective fuel oil consumption (example)...............................................6 3.1.3 Development of bunker oil prices ........................................................7 3.2 Lub oil consumption ................................................................................10 3.2.1 Nominal lub oil consumption ............................................................10 3.2.2 Effective lub oil consumption (example)..............................................11 3.2.3 Lub oil prices....................................................................................11 3.3 Efficiency of alternator .............................................................................11 4 Cost calculation .............................................................................................12 5 Summary.......................................................................................................14

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


Dr.-Ing. Yves


1

Scope of this report

This report is given on behalf of Thermo King Corp. 314 West 90th Street Minneapolis, 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

Introduction

On 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 by medium-speed 4-stroke diesel engines or slow-speed 2-stroke diesel engines (main engine) with shaft generator. On modern container vessels the vessel’s 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-Süd (built 2004 / 2005 at Daewoo) are

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

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Dr.-Ing. Yves


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 in higher 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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Dr.-Ing. Yves


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 Qn

=

( 46.704 − 8.802 ⋅ 10

6

−

⋅ ρ

2

+

3.167 ⋅ 10

3

−

) [1 − 0.01 ⋅ ( w + a + s ) ] + 0.01 ⋅ (9.240 ⋅ s − 2.449 ⋅ w)

⋅ ρ ⋅

[MJ/kg]1 with

ρ

= the density at 15 °C [kg/m³]

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 today’s cargo vessels reach a specific fuel 1

See ISO 8217:1996 – Annex A - Informative


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Dr.-Ing. Yves


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) Thermal efficiency of diesel engine l e u f e h t f o e u l a v c i f i r o l a c t e N

168,6 gr/kWh

25%

30%

35%

40%

45%

50%

55%

60%

42.700 kJ/kgK

337, 2 gr/ kW h

281, 0 gr/ kW h

240, 9 gr/ kW h

210, 8 gr/ kW h

187, 4 gr/ kW h

168, 6 gr/ kW h

153, 3 gr/ kW h

140, 5 gr/ kW h

42.500 kJ/kgK

338, 8 gr/ kW h

282, 4 gr/ kW h

242, 0 gr/ kW h

211, 8 gr/ kW h

188, 2 gr/ kW h

169, 4 gr/ kW h

154, 0 gr/ kW h

141, 2 gr/ kW h

42.000 kJ/kgK

342, 9 gr/ kW h

285, 7 gr/ kW h

244, 9 gr/ kW h

214, 3 gr/ kW h

190, 5 gr/ kW h

171, 4 gr/ kW h

155, 8 gr/ kW h

142, 9 gr/ kW h

41.500 kJ/kgK

347, 0 gr/ kW h

289, 2 gr/ kW h

247, 8 gr/ kW h

216, 9 gr/ kW h

192, 8 gr/ kW h

173, 5 gr/ kW h

157, 7 gr/ kW h

144, 6 gr/ kW h

41.000 kJ/kgK

351, 2 gr/ kW h

292, 7 gr/ kW h

250, 9 gr/ kW h

219, 5 gr/ kW h

195, 1 gr/ kW h

175, 6 gr/ kW h

159, 6 gr/ kW h

146, 3 gr/ kW h

40.500 kJ/kgK

355, 6 gr/ kW h

296, 3 gr/ kW h

254, 0 gr/ kW h

222, 2 gr/ kW h

197, 5 gr/ kW h

177, 8 gr/ kW h

161, 6 gr/ kW h

148, 1 gr/ kW h

40.000 kJ/kgK

360, 0 gr/ kW h

300, 0 gr/ kW h

257, 1 gr/ kW h

225, 0 gr/ kW h

200, 0 gr/ kW h

180, 0 gr/ kW h

163, 6 gr/ kW h

150, 0 gr/ kW h

39.500 kJ/kgK

364, 6 gr/ kW h

303, 8 gr/ kW h

260, 4 gr/ kW h

227, 8 gr/ kW h

202, 5 gr/ kW h

182, 3 gr/ kW h

165, 7 gr/ kW h

151, 9 gr/ kW h

39.000 kJ/kgK

369, 2 gr/ kW h

307, 7 gr/ kW h

263, 7 gr/ kW h

230, 8 gr/ kW h

205, 1 gr/ kW h

184, 6 gr/ kW h

167, 8 gr/ kW h

153, 8 gr/ kW h

Specific fuel consumption per electrical kWh (at generator output) Thermal efficiency of diesel engine l e u f

e h t f o e u l a v c i f i r o l a c t e N

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

Under 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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Dr.-Ing. Yves


Generator curve (constant speed)

Propeller curve (variable speed) Load

Since 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 3

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


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Dr.-Ing. Yves


3.1.2 Effective fuel oil consumption (example) In order to determine the “real life” fuel consumption of auxiliary diesel generators onboard 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: Nominal electrical power:

MAN B&W 7L28/32 1,292 kW @ 720 rpm / 60 Hz

Diesel Generator #2: Engine type: Nominal electrical power:

MAN B&W 5L28/32 928 kW @ 720 rpm / 60 Hz Voyages

92 NB a t a d e g a y o V

1 # l r e t o s e a r i D e n e g 2 # l r e t o s a e r i D e n e g 3 # l r e t o s e a r i D e n e g s i s y l a n A

94 NB

95 NB

99 NB

100 NB

101 NB

102 NB

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

Average

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 fuel consumption

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


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Dr.-Ing. Yves


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 value was 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.


Page 7

Dr.-Ing. Yves



Monthly Bunker Prices (380 cst)

Monthly Bunker Prices (180 cst)

350 $/t

350 $/t

300 $/t

300 $/t

250 $/t

e c 200 i r P r e k n u 150 B

Cristobal Fos Fujairah Genoa Houston Japan Los Angeles Philadelphia Rotterdam Singapore

$/t

$/t

100 $/t

250 $/t

e c 200 i r P r e k n u 150 B

Cristobal Fos Fujairah Genoa Houston Japan Los Angeles Philadelphia Rotterdam Singapore

$/t

$/t

100 $/t

50 $/t

50 $/t

0 $/t

0 $/t 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2

3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2

Date

Date

Monthly Bunker Prices (MDO)

Monthly Bunker Prices (MGO)

700 $/t

700 $/t

600 $/t

600 $/t

500 $/t

e c 400 i r P r e k n u B 300

500 $/t Cristobal Fos Fujairah Houston Japan Los Angeles Philadelphia Rotterdam Singapore

$/t

$/t

Cristobal Fujairah Genoa Rotterdam Singapore

e c 400 $/t i r P r e k n u B 300 $/t

200 $/t

200 $/t

100 $/t

100 $/t

0 $/t

0 $/t 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2

3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2

Date

Date

Monthly Bunker Prices at Rotterdam 600 $/t

500 $/t

400 $/t e c i r P r 300 e k n u B

MGO MDO 180CST 380CST

$/t

200 $/t

100 $/t

0 $/t 3 7 9 1

4 7 9 1

5 7 9 1

6 7 9 1

7 7 9 1

8 7 9 1

9 7 9 1

0 8 9 1

1 8 9 1

2 8 9 1

3 8 9 1

4 8 9 1

5 8 9 1

6 8 9 1

7 8 9 1

8 8 9 1

9 8 9 1

0 9 9 1

1 9 9 1

2 9 9 1

3 9 9 1

4 9 9 1

5 9 9 1

6 9 9 1

7 9 9 1

8 9 9 1

9 9 9 1

0 0 0 2

1 0 0 2

2 0 0 2

3 0 0 2

4 0 0 2

5 0 0 2

6 0 0 2

Date

4 5

Source: Clarkson Research Studies 2005 Source: Clarkson Research Studies 2005


Page 8

Dr.-Ing. Yves



Weekly Bunker Prices (380 cst)

Weekly Bunker Prices (180 cst)

400 $/t

400 $/t

350 $/t

350 $/t

300 $/t

300 $/t Cristobal Fos Fujairah Genoa Houston Japan

250 $/t e c i r P r e 200 $/t k n u B

Los Angeles Philadelphia Rotterdam Singapore

150 $/t

100 $/t

50 $/t

Cristobal Fos Fujairah Genoa Houston Japan

250 $/t e c i r P r e 200 k n u B

$/t

Los Angeles Philadelphia Rotterdam Singapore

150 $/t

100 $/t

50 $/t

0 $/t

0 $/t 2 0 0 2 . 1 0 . 4 0

2 0 0 2 . 3 0 . 5 0

2 0 0 2 . 5 0 . 4 0

2 0 0 2 .

2 0 0 2 .

7 0 . 3 0

9 0 . 1 0

2 0 0 2 .

2 0 0 2 .

0 1 . 1 3

2 1 . 0 3

3 0 0 2 . 2 0 . 8 2

3 0 0 2 . 4 0 . 9 2

3 0 0 2 . 6 0 . 8 2

3 0 0 2 . 8 0 . 7 2

3 0 0 2 . 0 1 . 6 2

3 0 0 2 .

4 0 0 2 .

2 1 . 5 2

2 0 . 3 2

4 0 0 2 . 4 0 . 3 2

4 0 0 2 . 6 0 . 2 2

4 0 0 2 . 8 0 . 1 2

4 0 0 2 . 0 1 . 0 2

4 0 0 2 .

5 0 0 2 .

2 1 . 9 1

2 0 . 7 1

5 0 0 2 . 4 0 . 8 1

5 0 0 2 . 6 0 . 7 1

5 0 0 2 .

5 0 0 2 .

8 0 . 6 1

0 1 . 5 1

5 0 0 2 .

2 0 0 2 .

2 1 . 4 1

2 0 0 2 .

1 0 . 4 0

3 0 . 5 0

2 0 0 2 .

2 0 0 2 .

5 0 . 4 0

7 0 . 3 0

2 0 0 2 .

2 0 0 2 .

9 0 . 1 0

0 1 . 1 3

2 0 0 2 . 2 1 . 0 3

3 0 0 2 . 2 0 . 8 2

3 0 0 2 . 4 0 . 9 2

3 0 0 2 . 6 0 . 8 2

3 0 0 2 . 8 0 . 7 2

3 0 0 2 . 0 1 . 6 2

Date

2 1 . 5 2

4 0 0 2 . 2 0 . 3 2

4 0 0 2 . 4 0 . 3 2

4 0 0 2 . 6 0 . 2 2

4 0 0 2 . 8 0 . 1 2

4 0 0 2 . 0 1 . 0 2

4 0 0 2 . 2 1 . 9 1

5 0 0 2 . 2 0 . 7 1

5 0 0 2 . 4 0 . 8 1

5 0 0 2 . 6 0 . 7 1

5 0 0 2 . 8 0 . 6 1

5 0 0 2 . 0 1 . 5 1

5 0 0 2 . 2 1 . 4 1

Date

Weekly Bunker Prices (MDO)

Weekly Bunker Prices (MGO)

800 $/t

800 $/t

700 $/t

700 $/t

600 $/t

600 $/t Cristobal Fos Fujairah Houston Japan Los Angeles Philadelphia Rotterdam Singapore

500 $/t e c i r P r e 400 k n u B

3 0 0 2 .

$/t

300 $/t

500 $/t

300 $/t

200 $/t

200 $/t

100 $/t

100 $/t

0 $/t

Cristobal Fujairah Genoa Rotterdam Singapore

e c i r P r e 400 $/t k n u B

0 $/t 2 0 0 2 . 1 0 . 4 0

2 0 0 2 . 3 0 . 5 0

2 0 0 2 . 5 0 . 4 0

2 0 0 2 . 7 0 . 3 0

2 0 0 2 . 9 0 . 1 0

2 0 0 2 . 0 1 . 1 3

2 0 0 2 . 2 1 . 0 3

3 0 0 2 . 2 0 . 8 2

3 0 0 2 . 4 0 . 9 2

3 0 0 2 . 6 0 . 8 2

3 0 0 2 . 8 0 . 7 2

3 0 0 2 . 0 1 . 6 2

3 0 0 2 . 2 1 . 5 2

4 0 0 2 . 2 0 . 3 2

4 0 0 2 . 4 0 . 3 2

4 0 0 2 . 6 0 . 2 2

4 0 0 2 . 8 0 . 1 2

4 0 0 2 . 0 1 . 0 2

4 0 0 2 . 2 1 . 9 1

5 0 0 2 . 2 0 . 7 1

5 0 0 2 . 4 0 . 8 1

5 0 0 2 . 6 0 . 7 1

5 0 0 2 . 8 0 . 6 1

5 0 0 2 . 0 1 . 5 1

5 0 0 2 . 2 1 . 4 1

2 0 0 2 . 1 0 . 4 0

2 0 0 2 . 3 0 . 5 0

2 0 0 2 . 5 0 . 4 0

2 0 0 2 . 7 0 . 3 0

2 0 0 2 . 9 0 . 1 0

2 0 0 2 . 0 1 . 1 3

2 0 0 2 . 2 1 . 0 3

3 0 0 2 . 2 0 . 8 2

3 0 0 2 . 4 0 . 9 2

3 0 0 2 . 6 0 . 8 2

3 0 0 2 . 8 0 . 7 2

3 0 0 2 . 0 1 . 6 2

Date

3 0 0 2 . 2 1 . 5 2

4 0 0 2 . 2 0 . 3 2

4 0 0 2 . 4 0 . 3 2

4 0 0 2 . 6 0 . 2 2

4 0 0 2 . 8 0 . 1 2

4 0 0 2 . 0 1 . 0 2

4 0 0 2 . 2 1 . 9 1

5 0 0 2 . 2 0 . 7 1

5 0 0 2 . 4 0 . 8 1

5 0 0 2 . 6 0 . 7 1

5 0 0 2 . 8 0 . 6 1

5 0 0 2 . 0 1 . 5 1

5 0 0 2 . 2 1 . 4 1

Date

Weekly Bunker Prices at Rotterdam 700 $/t

600 $/t

500 $/t

e c 400 i r P r e k n u 300 B

$/t

MGO MDO 180CST 380CST

$/t

200 $/t

100 $/t

0 $/t 2 0 0 2 . 1 0 . 4 0

2 0 0 2 . 3 0 . 5 0

2 0 0 2 . 5 0 . 4 0

2 0 0 2 . 7 0 . 3 0

2 0 0 2 . 9 0 . 1 0

2 0 0 2 . 0 1 . 1 3

2 0 0 2 . 2 1 . 0 3

3 0 0 2 . 2 0 . 8 2

3 0 0 2 . 4 0 . 9 2

3 0 0 2 . 6 0 . 8 2

3 0 0 2 . 8 0 . 7 2

3 0 0 2 . 0 1 . 6 2

3 0 0 2 . 2 1 . 5 2

4 0 0 2 . 2 0 . 3 2

4 0 0 2 . 4 0 . 3 2

4 0 0 2 . 6 0 . 2 2

4 0 0 2 . 8 0 . 1 2

4 0 0 2 . 0 1 . 0 2

4 0 0 2 . 2 1 . 9 1

5 0 0 2 . 2 0 . 7 1

5 0 0 2 . 4 0 . 8 1

5 0 0 2 . 6 0 . 7 1

5 0 0 2 . 8 0 . 6 1

5 0 0 2 . 0 1 . 5 1

5 0 0 2 . 2 1 . 4 1

Date

6 7

Source: Clarkson Research Studies 2005 Source: Clarkson Research Studies 2005


Page 9

Dr.-Ing. Yves



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

4-Stroke Medium Speed

2-Stroke Slow Speed

Engine series

Speed

Guangzhou Diesel

230 series

750 - 900 rpm

891 - 1,408 kW

1.0 g/kWh

Guangzhou Diesel

300 series

500 - 600 rpm

550 - 607 kW

1.8 g/kWh

Guangzhou Diesel

320 series

400 - 525 rpm

971 - 2,426 kW

1.2 g/kWh

MAN B&W

L27/38

800 rpm

2,040 - 3,060 kW

0.5 - 0.8 g/kWh

MAN B&W

L28/32

775 rpm

1,320 - 3,920 kW

1.5 g/kWh

MAN B&W

L58/64

400 - 428 rpm

7,800 - 12,510 kW

0.8 g/kWh

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


Power

Specific lub oil consumption (manufacturer's data)

Manufacturer

Page 10


Dr.-Ing. Yves


3.2.2 Effective lub oil consumption (example) In order to verify the manufacturer’s 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 manufacturer’s data seem to be quite reliable. Engine

Maker / Type

Main Engine

Wärtsilä New Sulzer RTA 76

Diesel Generators

MAN B&W L28/32

Lub oil system

Manufacturer's data

Measured 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

Circulation lub oil

1.6 g/kWh

1.328 g/kWh

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/m³ 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. P Electrical = η Alternator ⋅ P Mechanical 8

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


Page 11


Dr.-Ing. Yves


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. P Electrical = η Gearbox ⋅ η Alternator ⋅ P Mechanical

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 %. Specific fuel Cost Lower heating value

Thermal efficiency of diesel engine Efficiency of alternator Overall efficiency Specific fuel consumption (mechanical power) Specific fuel consumption (electrical power) Overall specific fuel cost

Lub oil cost Spec.lub oil consumption (mechanical power) Spec.lub oil consumption (electrical power) Spec. lub oil cost (electrical power)

Overall specific cost


600 $/t 42,7 MJ/kg 11,9 kWh/kg 36% 95% 34,2% 234,2 g/kWh 246,5 g/kWh 4,109 ct/MJ 14,791 ct/kWh 1300 $/t 1,50 g/kWh 1,58 g/kWh 0,205 ct/kWh

14,996 ct/kWh

Page 12


Dr.-Ing. Yves


Table 7 shows the specific cost when varying the specific fuel consumption and the fuel oil price. Specific Electrical Energy Cost on Ships Fuel Oil Price Thermal Specific Fuel Efficiency Consumption

e n i g n e l e s e i d f o y c n e i c i f f E

100 $/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 Efficiency of alternator 95% Specific fuel consumption is related to electrical kWh at alternator output


Specific lub oil consumption Lub oil price

1,50 gr/kWh 1300 $/t

Page 13


Dr.-Ing. Yves


5

Summary

The results of the cost calculations are shown in Fig. 7. Taking into consideration the four 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 Specific fuel consumption related to electrical kWh

35,0 ct/kWh

30,0 ct/kWh

25,0 ct/kWh

t s 20,0 o C c i f i c e p 15,0 S

350,0 gr/kWh 340,0 gr/kWh 330,0 gr/kWh 320,0 gr/kWh 310,0 gr/kWh 300,0 gr/kWh 290,0 gr/kWh 280,0 gr/kWh 270,0 gr/kWh 260,0 gr/kWh 250,0 gr/kWh 240,0 gr/kWh 230,0 gr/kWh 220,0 gr/kWh 210,0 gr/kWh 200,0 gr/kWh 190,0 gr/kWh 180,0 gr/kWh 170,0 gr/kWh 160,0 gr/kWh 150,0 gr/kWh

MGO operation of power packs

MDO operation of diesel generators

ct/kWh

ct/kWh

HFO / IFO operation of diesel generators

10,0 ct/kWh

5,0 ct/kWh

0,0 ct/kWh 100 $/t

HFO / IFO operation of main engine with shaft generator

200 $/t

300 $/t

400 $/t

500 $/t

600 $/t

700 $/t

800 $/t

900 $/t

Bunker Price

MGO 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.


Page 14


Dr.-Ing. Yves


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 prices between 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 email and is therefore not signed)

Dr.-Ing. Yves Wild Officially appointed and Sworn expert for Refrigeration Chamber of Commerce, Hamburg


Page 15

Calorific Value of HFO and MDO Comparison Report

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