Triality

Taking the environmental and economic performance of VLCCs a great step forward

Contents
The Triality VLCC The green VLCC LNG as fuel A ballast-free design Using the low LNG temperature to capture cargo vapours that are otherwise lost Using the low LNG tempareture to cool the scavenging air to main engines Is it possible to go green and be profitable? 14 16 12 4 6 8 10

A conventional VLCC is already an energy efficient cargo carrier. This project shows that performance can be significantly improved.

TRIALITY VLCC

The Triality VLCC

Triality is an innovative concept VLCC that fulfils three main goals: 1. It is environmentally superior to conventional VLCCs 2. It has technically feasible solutions 3. It is more economical than conventional VLCCs The name Triality reflects these three main elements. Triality is defined as three united, the state of being three.
The Triality concept consists of different elements. Each has been compared environmentally and economically with a base case which represents a conventional VLCC. The first step was the introduction of LNG as fuel in a conventional VLCC. The main engine is a high pressure dual fuel ( gas or oil fuel) two-stroke engine, while the generator engines are low pressure dual fuel engines and the boilers are also multi fuel versions. The next step was to introduce a ballast-free more V-shaped hull design in addition to the LNG propulsion. The limited draft leads to some changes to the machinery configuration, and a two-propeller arrangement has been chosen. Finally a VOC re-condensation system and the cooling of the main engine scavenging air were added. Each step makes the concept better from both an economic and environmental point of view. Triality is a VLCC that has the same operational range and capacities as other VLCCs. Three most likely trading routes have been selected for our study, all starting in the Gulf. One is to the US, one is to Europe and one is to China:

Main dimensions: Lpp= 351m, Loa= 361m, B=70m, T (design, mean)= 21.6m, T (unloaded, mean) = 7.1m. Speed= 15 knots/ 16.5 knots, 300 000 DWT. Block coefficient loaded: 0.6 and unloaded: 0.52.

TRIALITY VLCC

The green VLCC

Each step in the evolution from a conventional VLCC to Triality has an impact on energy consumption and/or emissions to air and discharges to sea. The energy demand is reduced for most of the steps, giving a total 25% reduction in yearly energy consumption.
Relative change in energy consumption compared to base case (% MJ) V-shape + LNG + VOC 77% Triality - V-shape LNG VOC + CoolAir 75% Conventional + LNG 100% V-shape + LNG 89%

Relative change in emissions compared to base Case

Ballast water; 100%

Particles; 6%

Particles; 6%

VOC; 100%

Particles; 6%

NOx; 86%

NOx; 74%

CO2; 77%

CO2; 68%

Particles; 6%

NOx; 74%

CO2; 68%

CO2; 66%

NOx; 71%

VOC; 0%

SOx; 5%

Conventional + LNG

V-Shape + LNG

SOx; 6%

V-Shape + LNG + VOC

SOx; 6%

The NOx reduction given above is gained without adding any treatment system. By adding a simple Exhaust Gas Recirculation system for the main engines a further reduction of at least 82% can be gained, fulfilling Tier III emission requirements for ships built after 2016. CO2 emissions from Triality compared with other transport alternatives, based on IMO figures published in 2008: Triality 3 g/tonkm Heavy truck with trailer 50 g/tonkm Air freight 540 g/tonkm Cargo vessel >8 000 dwt 15 g/tonkm

SOx; 6%

Triality

VOC; 0%

Triality has the same cargo capacity and operational range as a conventional VLCC, but emits 34% less CO2

TRIALITY VLCC

LNG as fuel
LNG as fuel is a proven concept for short sea shipping. Now this alternative is being developed for full-scale deep-sea shipping.
LNG is used for propulsion, power and steam production (instead of HFO). Triality will have twin high pressure dual fuel two-stroke main engines using Marine Gas Oil (MGO) as pilot fuel, low pressure dual fuel generator engines using MGO as pilot fuel and a triple fuel boiler that can burn natural gas, MGO and Volatile Organic Compounds (VOCs = hydrocarbon vapours recovered from the cargo tank atmosphere). Two pressure tanks (IMO type C), each of 6 750 m3 volume, will be located in deck houses in front of the superstructure on the main deck. The LNG tanks are kept at a pressure of 5-6 bar by the use of pressure build up heat exchangers. This is sufficient to supply LNG to the high pressure pumps for the twostroke main engines without using submerged pumps. Pumping LNG to a high pressure is much more efficient than using compressors to create an equally high pressure. The LNG fuel tank pressure is sufficient to supply LNG through the low pressure vaporizers and to the auxiliary engines and boilers without the use of pumps. A submerged pump is, however, included in each tank. This can be used to pump LNG out of the tank should the tank pressure be too low. LNG export terminals are located relatively close to important crude oil terminals in the Gulf area. Making LNG available as fuel should therefore be a realistic possibility. The LNG volume stored on board Triality is sufficient for a range of 25 000 nautical miles, so that bunkering in the Gulf can provide enough fuel for even the longest round trips. This is standard practice for conventional VLCCs today. LNG terminals are also close to crude oil import terminals visited on our chosen routes, so in the future bunkering may be possible at many locations.

Natural gas is used as fuel for Trialitys slow speed main engines, auxiliary engines and auxiliary steam boilers. The 13 500 m3 LNG fuel tank capacity gives the vessel a range of 25 000 nautical miles.

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TRIALITY VLCC

A ballast-free design
A conventional VLCC carries sea water as ballast in transit in unloaded condition and during loading and discharging in port.
Ballast water is used by all VLCCs today for two purposes: to achieve sufficient draft and suitable trim to control hull stress levels The ballast operations have two main unwanted effects: Ballast water may contain organisms that can cause damage when released into foreign ecosystems. This is why the IMO has established the International Convention for the Control and Management of Ships Ballast Water and Sediments. Expensive ballast treatment systems will also increase fuel consumption. Additional fuel is needed to transport 80100 000 tons of ballast water. Triality has a ballast-free design with the following characteristics: i. New transverse cargo tank divisions enable cargo tanks to be loaded without the need for ballast for strength or trim/heel compensation ii. The new V-shaped hull form provides sufficient draft without cargo or ballast iii. The new hull shape has a mean average of 16% less wet surface on a roundtrip, a lower block coefficient and is 11% more energy efficient

The new hull shape is designed for sufficient draft, even in an empty condition. New cargo tank divisions eliminate the need for ballast, including during cargo operations.

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TRIALITY VLCC

Using the low LNG temperature to capture cargo vapours that are otherwise lost
The global fleet of crude oil tankers is estimated to emit five million tons of cargo vapours annually during transit.
The low temperature associated with LNG vaporization is used to capture cargo vapours (Volatile Organic Compounds VOCs) normally released to the air during voyage. It is estimated that up to 500-600 tons of cargo vapours can be captured during each cargo roundtrip. The recovered cargo vapours are stored in deck tanks and intended for use as fuel for auxiliary boilers supplying steam to operate cargo pumps. Significant financial losses are avoided and environmental benefits are gained.

Triality uses the low LNG temperature to capture cargo vapours otherwise lost to the atmosphere. This reduces the annual fuel consumption by eight per cent.

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TRIALITY VLCC

Using the low LNG temperature to cool scavenging air to main engines
The cooling energy from the LNG glycol circuit may be used for different cooling purposes in a ship.
The low temperature from the LNG vaporization and pressure build up process can be used for various purposes. The glycol circuit is at the heart of this process. Triality uses cooling energy primarily for VOC re-condensation but also to cool scavenging air for the main engines. This will increase efficiency by up to three per cent. The remaining cooling effect can be used for the fresh water cooling of the engines. The glycol circuit must be kept at a temperature above minus 40C to avoid freezing. Sea water heat exchangers have also been included to provide additional heating when needed. The low LNG temperature may also be used for other purposes like air conditioning, freezers, fridges and so on.

Dont underestimate the value of cooling. The scavenging air cooling may provide an energy efficiency gain of up to three per cent.

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TRIALITY VLCC

Is it possible to go green and be profitable?

The financial performance of Triality is evaluated with respect to investment and voyage cost, compared to a conventional VLCC run on HFO with a ballast water treatment (BWT) system and an exhaust gas scrubber.
The shipping industry is facing an ever increasing demand to reduce its environmental footprint. For ships built before 2016, the present challenge is to comply with ballast water and emission requirements. We have estimated that Triality has a significantly smaller environmental footprint than a conventional VLCC run on HFO with a ballast water treatment system (BWTS) and an exhaust gas scrubber (conventional VLCC). The question then is: is it possible to go green and be profitable? The short answer is yes Triality is more profitable than a conventional VLCC. The financial analysis (investment cost versus voyage costs for different fuel price scenarios ) shows that Triality: improves the expected present value before tax by MUSD 24 in the reference fuel price scenario (This corresponds to around 20% of the investment cost for a conventional VLCC) is profitable until the LNG price reaches USD 15 per MMbtu in the reference oil price scenario is more profitable than a conventional VLCC except in the low oil price scenario These points are substantiated on the following pages.

Even with different investment scenarios there are good margins in favour of Triality.

Triality improves expected present value before tax by MUSD 24 in the reference fuel price scenario
Over 20 years Triality improves expected present value by MUSD 24 compared to the conventional VLCC in the reference fuel price scenario. The chart below shows how the Triality cost structure differs from a conventional VLCC. In short, Triality increases the initial investment by MUSD 14 and reduces the voyage costs by MUSD 38.

Expected present value before tax compared to a conventional VLCC run on HFO (MUSD) -30.0 Steel LNG Tanks & Systems Engines & Boilers VOC Systems & Tanks Cool Air Coating Scrubber Ballast System Recuced Voyage Costs TRIALITY
Figure 1: Triality cost structure compared to a conventional VLCC.

-20.0
MUSD 14 in extra investments

-10.0 -1.3

0.0

10.0

20.0

30.0

-15.7 -3.9 -3.0 -0.1 +0.4 +4.4

+4.8 +38.2 +24.2

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TRIALITY VLCC

Triality is profitable until the LNG price reaches USD 15 per MMbtu in the reference fuel price scenario
Triality is profitable with an LNG price up to USD 15 per MMbtu given the reference oil price scenario. Given high and low oil price scenarios the expected breakeven price is USD 26 and USD 6 per MMbtu respectively. The chart below shows the difference in present value before tax (PV b.t.) between Triality and the conventional VLCC as a function of LNG and oil price.
180 160 140 120 100 80 60 40 20 0 -20 -40 -60 -80 -100 -120 -140 -160 -180 PV b.t. between TRIALITY and conv. VLCC on HFO (MUSD)

HIG

REF

ERE

NCE

OIL

PRIC

E SC

ENA

LOW

RIO

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Start price of LNG long-term bunker contract (USD/MMbtu)

Figure 2: LNG breakeven price for different price scenarios

Breakeven

Triality is more profitable than the conventional VLCC except in the low oil price scenario
So far we have mainly discussed the financial performance given the reference fuel price scenario. There are major uncertainties connected with fuel price developments. The figure below gives a more detailed view of fuel price scenarios, present values and the payback time on marginal investment (MUSD 14). Triality is more profitable than the conventional VLCC in the Reference (R) and High (H) oil price scenarios irrespective of the LNG price scenario. The present value before tax is MUSD 9129. The payback time on marginal investment is 616 years.
Figure 3: Triality financial performance for different fuel price scenarios.
Oil price (USD/MMbtu) LNG price (USD/MMbtu) 2010-35 2010-35 PV b.t. from conp. to the conv. VLCC (MUSD) -100.0 -50.0 0.0 50.0 100.0 150.0 0.0 Payback time (yrs) -5.0 10.0 15.0 >20.0

L L L R TRIALITY IS BEST R R H H H

L R H L R H L R H MUSD 24

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