MAN Magazine Marine 01/2016

marine REMOTE CONTROL MAINTENANCE Ensuring reliability and safety

DUAL STRENGTHS

Leading the way in marine LNG fuel gas systems

01.2016 RIDING THE WAVE

Bigger ships with new attractions are keeping the cruise industry alive and well

WELCOME TO THE MAN DIESEL & TURBO MAGAZINE

Global growth is slowing down and a persistently low oil

price is placing a substantial burden on large parts of the industry. At the same time, the world has committed itself to limiting

MARINE

No 01.2016

global warming at COP21 and has fixed a global carbon budget.

What are the implications, given the fact that carbon still accounts for 90% of the world’s primary energy demand? Is the current low in hydrocarbon prices a cyclical trend or a taste of what is to come?

One thing seems indisputable: efficiency is key! It helps to make the most out of existing resources, when exploring new ones is unfeasible and it keeps the economy moving on minimum fuel. At MAN Diesel & Turbo, we go to great lengths to provide our customers with the most efficient solutions technology can offer. Be that in energy generation, in next generation cruise ships or at a gas well on the bottom of the ocean. In this issue, we have gathered some great stories to illustrate this.

But what if we really “cannot burn it all”, as James Leaton, Research Director at the think tank Carbon Tracker Initiative, argues? We have invited him to take the stage of this issue’s Dialogue & Opinion, to introduce his radical scenario. I am sure,

One thing is indisputable: efficiency is key!”

MASTHEAD:

the discussion on how best to balance emission regulations and global growth is only just starting – and it will be intense.

Enjoy your MANmagazine, Yours truly

Dr. Uwe Lauber, CEO of MAN Diesel & Turbo

MAN MAGAZINE is published two times a year in English. · PUBLISHED BY MAN Diesel & Turbo SE, Dr. Jan Dietrich Müller, Group Communications & Marketing, Stadtbachstr. 1, 86153 Augsburg, Germany · EDITORS IN CHIEF Jan Hoppe (jan.hoppe@man.eu), Felix Brecht (felix.brecht@man.eu) · PUBLISHER C3 Creative Code and Content GmbH, Heiligegeistkirchplatz 1, 10178 Berlin, Germany, Tel.: +49 30 44032-0, www.c3.co, Shareholders of C3 Creative Code and Content GmbH are the Burda Gesellschaft mit beschränkter Haftung (limited liability company), Offenburg, and the KB Holding GmbH, Berlin, with 50% each. · HEAD OF CONTENT UNIT Klaus-Peter Hilger · EDITORS & AUTHORS Cedric Arnaud (resp.), Deborah Capras, Caroline Evans, Kirti Letsch, Audra Shanley, Vanessa Schmidt (freelancer) · PROJECT MANAGEMENT Sara Austen-Schrick · GRAPHICS Marika Simon · PHOTO EDITOR Elke Latinovic, Samantha Taruvinga · COVER IMAGE Ingrid Fiebak · PRODUCTION C3 Creative Code and Content GmbH · PRINTING Pinsker Druck und Medien GmbH · Pinskerstraße 1, 84048 Mainburg, Germany · REPRODUCTION permitted with reference. Any changes must be coordinated with the editors. · COPYRIGHT ©2016 MAN Diesel & Turbo and C3 Creative Code and Content GmbH. All information provided in this magazine is intended for general guidance only and is not intended to be used as a substitute for specific technical or commercial information and advice.

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No 01.2016

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CRUISE MARKET

ON THE RISE

Regarding the booming cruise industry and its potential for shipbuilders and manufacturers – now and in future.

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CONTENTS 04

As simple as plug and play

How to reach 20% savings on fuel thanks to a sophisticated retrofit.

06

Roll on, roll off

08

Dual strengths

12

Cruises: Riding the wave

PHOTOS: Simon Katzer, Oliver Tjaden, Tommy Chia/MAN, U.N. RO-RO, Filippo Vinardi/Fincantieri S.p.A.

MARINE

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MY MAN

Express connection for trucks across the Aegean and Adriatic Sea: 62 hours from Istanbul to Trieste.

MAN Diesel & Turbo and Cryo AB join forces to provide a unique marine LNG fuel gas system.

Cruises are part of the latest trend in luxury holidays.

Troubleshooters

The digitization of service – MAN PrimeServ remote maintenance and control solutions.

TURBO

Open for business

What the lifting of Iran sanctions means for new and trusted partnerships within the MAN network.

New subsea horizons

An underwater gas compressor station in the Norwegian sea is changing the industry.

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Sturdy heart

32

Seven days to Managua

34

Full service, full power

40

Shanghai smog targeted

For decades, one MAN screw compressor has been a centrepiece powering the INOVYN chemical plant.

POWER

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46

Eight MAN engines make the mammoth journey to a power plant in Nicaragua.

EDF, the French energy giant, plays it safe on Corsica and opts for MAN PrimeServ.

For China to achieve its ambitious climate goals, heavy investment in sustainable energy is needed.

DIALOGUE & OPINION

Will the carbon bubble burst?

An interview with James Leaton on the future of the global energy industry and the financial markets.

News & Facts

Brief business updates

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No 01.2016

Mr. Ellingsgaard, could you give us some background on

MY MAN

your company and the Bow Flora? Odfjell is one of the leading companies for moving chemicals around the world.

AS SIMPLE AS PLUG AND PLAY

We have about 90 vessels, and own around 50%. On the whole, the fleet is quite young, even though some of the vessels are a bit older. The Bow Flora, for example, is 17 years old.

It is a very sophisticated vessel, supplied and fitted with the equipment necessary to transport all kinds of chemicals.

She was state-of-the-art when she was built, and, as of now, she is still state-of-the-art – well maintained and upgraded.

Why the upgrade? To retrofit the propulsion system to save fuel, and to make the world a little bit greener. We hope to reach at least 20% savings in fuel consumption, thanks to the Kappel-designed propeller blades from MAN Diesel & Turbo, and adjustments to the engine. The Bow Flora is the

After 17 years at sea, the Bow Flora was in need of an upgrade. Hjalgrim Ellingsgaard, Senior Machinery Surveyor at Odfjell Ship Management in Bergen, Norway, explains how 20% savings on fuel were reached thanks to a sophisticated retrofit.

fifth in this vessel series which has 11 vessels. Similar upgrades are being performed on another 8-vessel series. All vessels from both series will have Kappel propellers.

Why did you decide to work with MAN PrimeServ? Our partnership started back in 2012. At the time, we wanted to make huge savings on fuel consumption, not just 1% or 2%, but more than 10%. MAN Diesel & Turbo advised us to focus on two aspects of a retrofit: on the engine, but also on replacing the propeller. Being Odfjell, we didn’t just buy a new propeller. We carried out extensive studies together with MAN. We looked at the market, we looked at the oil price. We did tank tests. From this, we decided that MAN

1

was right. We compared several propeller makers, but, in the end, it was MAN who offered the best all-in-one solution.

The promise of 20% savings on fuel is also accurate. In fact, our extensive sea trials have confirmed that the saving is actually more than 20%.

If you had to highlight one aspect of the partnership with MAN, what would that be? We had one point of contact, one MAN person dedicated to us who took care of everything. MAN PrimeServ took charge of the project and of the classification of the items. So, when the items were delivered, it was basically just like plug and play.

HJALGRIM ELLINGSGAARD

▪

SENIOR MACHINERY SURVEYOR SHIP MANAGEMENT – TECHNOLOGY

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No 01.2016

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PHOTOS: Tommy Chia/MAN

1 Hjalgrim Ellinsgaard: impressed by the savings of more than 20% on fuel consumption.

2 Engine Upgrade: The Bow Flora undergoing retrofitting at the dry dock Nakilat, Qatar.

3 Close inspection: a superintendent checks the engine.

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No 01.2016

FAST ROLL

Ro-Ro is the simplest, cheapest and most convenient way to ship vehicles. It's also safe. The cargo is simply “rolled on” the vessel at the port of loading and “rolled off” at the destination.

Everything is handled by the port workers and the truck drivers. It's the express route for drivers.

▶ Specialised shipbuilders: Since it was founded in 1872, the FSG has built around 700 ships. Nowadays, FSG specialises in the construction of Ro-Ro and RoPax freight vessels. Between 2012 and 2018 the shipyard delivers 12 Ro-Ro ships with MAN 48/60CR engines.

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PHOTOS: U.N. RO-RO (2), Marvin Radke

◀ Ready to roll: there's room for up to 280 vehicles for the trip from Turkey to Italy.

No 01.2016

Six borders and 1,600 kilometers of road separate the boom metropolis of Istanbul and the key port of Trieste. It’s a torturous journey for any truck driver. U.N. Ro-Ro, the shipping operator, offers a much smoother alternative. Their Roll On/Roll Off vessels transport trucks, buses and cars between Turkey and Italy, across the Aegean and Adriatic Sea up to northern Italy in just over 60 hours.

The U.N. Istanbul is the latest addition to the U.N. Ro-Ro Mediterranean fleet of express ships. Built in 2013 by the ship yard Flensburger Schiffbau-Gesellschaft (FSG), the 208-meter long freighter is powered by two MAN 8L48/60CR engines and two MAN 5L21/31 GenSets with a total capacity of 21,200 kW. On board, there’s room for around 280 trucks and their trailers. It's the third and most modern of the FSG ships equipped with MAN engines. Her two sister ships were built in 2012 for the Ulusoy Shipping Group and also operate in the Med.

ROLL ON, ROLL OFF

A further four Ro-Ro ships of the Ulusoy design will be built by FSG in 2017 and 2018 and each will be equipped with MAN engines. While two will head to the warm Aegean, another two will go to the rough seas sailed by the Danish ship operator DFDS. However, even in the roughest of crossings, the truck drivers onboard will certainly appreciate the time they will save, as well as the time out.

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No 01.2016

UNIQUE

In February 2016, MAN Diesel & Turbo acquired Cryo AB, a manufacturer of cryogenic equipment for the storage, distribution and handling of Liquefied Natural Gases (LNG), creating the product brand MAN Cryo and with it the world’s leading manufacturer of marine LNG fuel gas systems. Lex Nijsen, Head of Four-Stroke Marine at MAN Diesel & Turbo, reveals why the tie-up is essential for meeting customers’ needs.

▲ Lex Nijsen is driving the partnership forward.

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DUAL STRENGTHS

No 01.2016

Mr. Nijsen, as Head of Four-Stroke Marine at MAN

mentality, and are very forward-looking. The same goes for

Diesel & Turbo you were directly involved in the acquisi-

the people at MAN. Our mindsets are aligned. This will

tion of Cryo AB. What was behind the decision to

drive us forward.

purchase the company? Market circumstances and our very own customers. Environmental and emission regulations set

Does this acquisition broaden the scope of MAN’s offer-

out by the International Maritime Organisation and the

ing to ship designers as well? This is a very interesting

European Maritime Directive mean that LNG has become

aspect for us. Now, as a supplier of both the engines and the

increasingly more attractive as a marine fuel. This is part of

complete fuel gas supply system equipment, we can work

the reason why we developed our dual-fuel engines in the

with ship designers at an early stage in order to integrate

first place. However, it’s no longer enough just to design and

the tanks and systems into the ship design. You don’t want

deliver engines. Our customers want a complete marine LNG

the case that the designer is ready and then has to think,

propulsion system. Building the necessary in-house know­

“OK, now we need a 400m3 tank, where shall we put it?”

ledge would be difficult, so we started looking for partners. It was when we were working on a specific project that Cryo AB

So you see the marine industry move even more

crossed our path. We discovered that our core operations

towards natural gas in the future? Most definitely. Ship-

were very complimentary. This perfect fit clinched it.

owners want to be prepared for future environmental regulations, even in areas where LNG is not yet available in

How will your customers benefit from the purchase?

ports. What we are seeing is that more and more projects

The goal is to offer a one-stop solution. Our customers want

are starting up where the ship is required to be dual-fuel

a complete package from a single source – the engine, but

ready. This means that the design has to take into account

also the LNG fuel tanks, the coldbox with the vaporiser

that you will need to put in gas tanks and gas piping sys-

units, the control system, and all the piping and gas-valve

tems somewhere. The vessel is fitted with a dual-fuel en-

units. They want delivery of all the hardware – and all the

gine, but it is liquid-fuel optimised for the outset – or it

training and support.

must be converted or retrofitted easily to a gas engine. In fact, a certain portion of the merchant fleet worldwide has

You mention training. Why is it so important? LNG

the potential for retrofitting, which makes this an exciting

technology is still relatively new, so some of our customers

area for us. The costs, however, are still prohibitively high.

are not yet used to working with these systems. Interest-

This is why there needs to be some kind of incentive for

ingly, crews are usually happier

shipowners to retrofit their ships. And by incentives, I mean

working with LNG, as it is a much

mostly state subsidies. At the moment, it’s difficult to

cleaner type of fuel. It gives us cleaner

retrofit just for commercial reasons.

The goal is to offer a one-stop solution.”

Lex Nijsen

ships and contributes to cleaner harbours, cleaner waters and cleaner air.

What has happened since the acquisition? We have been very busy! First, our joint integration team looked for

Where do you see the biggest chal-

synergies. We quickly rolled out a common IT system, as

lenge? The complete fuel gas supply

well as systems and processes for purchasing and reporting.

system has to be designed according

Most notable is our shared approach to risk management.

to our own safety requirements and,

We have the same high-quality risk evaluation processes as

of course, the customers’ safety stan-

those across MAN Diesel & Turbo. What we have barely

dards as well. What helps to overcome

touched, are the internal engineering processes at Cryo AB.

this challenge is our unrivalled in-

They work so smoothly that they don’t need any changes.

house know-how on turbomachinery and the first-class cryogenic technology. This is also a key combination for us

What’s the plan going forward? In the short-term, we’ve

to meet climate goals.

integrated the Cryo AB sales team into our global sales team.

PHOTO: Thomas Straub

We are already working together in joint promotions worldA stringent business logic is only one of the necessities

wide. Our main focus now is Europe, North America and

for a successful merger. Matching corporate cultures can

specific projects in Asia. I feel this is an exciting partnership.

be a challenge, too. How do you feel about that? I am not

Our goal is to get the first orders in this year – a complete

worried. As you said, this acquisition is not just about how

MAN LNG propulsion system. Long-term, we want to grow

the businesses work together, it’s essentially about the peo-

the business together. As we go to press, we’ve just entered

ple, too. Our Swedish colleagues have an open and friendly

the final stages of negotiations for an important contract. ▪

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No 01.2016

Our customers want a complete package” Lex Nijsen

PROPULSION MDT provides complete propulsions systems consisting of highly efficient dual-fuel engines, gearboxes and propellers.

MAN Cryo offers standardised and tailormade marine LNG fuel gas systems. As LNG must be stored at cryogenic temperatures (-163cC), special storage tanks, pipes and heating systems using a (▲) glycolwater mix are required. LNG (▲) is extracted from the tank with pumps or pressure, vaporized, pressurized and heated. Finally, the natural gas (▲) is routed to the engine’s master gas valve unit and into the engine itself.

Pioneering LNG SOLUTIONS

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No 01.2016

TANK Standard horizontal or vertical vacuum insulated Type C Tanks, from 90m3 up to 700m3, as well as customized tanks in any size.

PIPING SYSTEM The Fuel Gas Pipe system is tailor-made to the ship geometry and could even be routed through hazardous zones.

BUNKER SKID Available with a range of through-put capacities.

ENCASED GAS VALVE UNIT (GVU) Can be located in the engine room and thereby no additional room is needed.

KEY ▲ Gas ▲ Glycol-water mix ▲ LNG

ILLUSTRATIONS: Hokolo 3D; PHOTO: Thomas Straub

WATER GLYCOL SYSTEM Ensures efficient LNG conditioning under all operating conditions.

COLDBOX With LNG Vaporizer (VAP) and Pressure Build-up Unit (PBU), the in-built PBU ensures low maintenance and high reliability.

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No 01.2016

â–¶ Since May 2016 at sea: The Carnival Vista is powered by five MAN 48/60CR Tier-II-type engines.

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CRUISES: RIDING THE WAVE

No 01.2016

M Cruises are on the rise worldwide and among travelers of all ages.

A trend that has significant impli­ cations and promises high potential for shipbuilders and their suppliers.

More and more travelers opt for a holiday at sea each year.

In 2016 alone, 24 million passengers are expected to go on a cruise. And there is no end in sight for this trend that has

characterized the cruise industry for the last 10 to 20 years.

According to Sokrates Tolgos, Head of Sales, Cruise & Ferry at MAN Diesel & Turbo, the cruise ship market is currently

the most dynamic segment within the marine industry.

The prevailing statistics drafted in 2014 predicted an average yearly market growth of about 3.8%, while recent forecasts indicate growth rates of 5% to 7%. And, indeed, pene-

tration of cruises within the global tourism industry today can still be described as marginal – together all the cruise

ship cabins in the world represent less than 2% of the hotel rooms in the world. “One of the main drivers for growth is

developing tourism in non-OECD countries, especially

China,” says Tolgos. The country could see 4.5 million cruise passengers by 2020, which could exceed 10 million within

20 years.

Trends that have been driving the constant growth

are new larger capacity vessels and ship diversification, more local ports, more destinations and new onboard/on-

shore activities, as well as enticing contemporary features

offered on board modern cruise liners. These are the

PHOTO: Fincantieri S.p.A.

reasons why cruise holidays are becoming increasingly popular with a younger market, including young families,

couples and groups of friends. Norwegian Cruise Line’s

largest ship, the Norwegian Escape, for example, features the largest ropes course as well as one of the largest

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No 01.2016

1 The engine room of the Norwegian Escape: The 165,157gt vessel is powered by five MAN V48/60CR-type engines capable of delivering 76,800 kW. 2 The 930-passenger Viking Star stops off at Venice on her maiden voyage last April.

3 Norwegian Escape has the largest waterpark at sea.

4 4,200 passengers can travel on the gigantic Norwegian Escape.

75% of the cabins have ocean views.

waterparks at sea. Numerous restaurants and bars, a broad-

developed by Fincantieri, the Crown and Regal Princess,

way theatre and boutique shops complete the ship’s

delivered in 1990 and 1991, were powered by MAN engines.

enter­t ainment package. “Next to the contemporary seg-

“Our wide product portfolio of cruise vessels implies such

ment that caters to a wide audience, smaller to mid-

a variety of requirements and applications that the inclu-

sized ships for luxury cruises are becoming more and more

sion of MAN among our main equipment suppliers

relevant,” explains Tolgos. The Viking Star of Viking Ocean

appeared a natural choice,” explains Di Giorgio. Currently,

Cruises is an example of the upper premium sector.

eight ships will be equipped with fuel-efficient Common

Typically, cruise ships of this segment have a gross tonnage

Rail engines by MAN ­­ Diesel & ­Turbo. Two of them, the

of 40-90,000 and can accommodate 750 to 1,500 passen-

Viking Star and the Viking Sea, which both run on four

gers. They are dedicated to destination-oriented cruises

32/44CR engines, have already been delivered. The third and

with upscale onboard service, calling in ports not often

most recent delivery is the 133,500 gross tons Carnival Vista

used by contemporary ships.

with its five engines of type 48/60CR, Carnival Cruise Line’s

FULL ORDER BOOKS FOR SHIPBUILDERS

first vessel powered by MAN engines.

The German shipbuilder Meyer Werft has also profit-

The positive market development for cruises is

ted from the increased demand: “Next to ferries, river

mirrored in the number of ships ordered. 300 ships cruised

cruise liners and gas tankers, cruise ships are our most

the oceans in 2015, nine new ocean vessels are scheduled to

important market. The growth of the cruise industry has

debut this year, another 35 are set to set sail by 2022. “We

been a significant factor for the growth of our company in

have a record orderbook. Given the current workload, our

the last 20 years,” states Peter Hackmann, Head of

shipyards dedicated to the construction of cruise ships are

Corporate Communications. Meyer Werft and MAN Diesel

working to capacity now and for the next years,” says Loris

& Turbo have been cooperating since the 1990s. The latest

Di Giorgio, Head of Cruise Ship Marketing and Sales at

ship built by the Meyer Werft that is equipped with MAN

Fincantieri. The Italian shipyard is the largest in Europe and

engines is the Norwegian Escape. The ocean vessel has a

it is worth noting that the very first cruise vessels

gross tonnage of 164,600, boosts a passenger capacity of

PHOTOS: Ingrid Fiebak (3), Alastair Miller/Viking Star

1

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No 01.2016

3

4

Our shipyards dedicated to the construction of cruise ships are working to capacity now and for the next years.�

Loris Di Giorgio, Head of Cruise Ship Marketing and Sales at Fincantieri

2

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No 01.2016

4,200 and is powered by five MAN V48/60CR-type engines.

ics and on the optimization of hotel electric loads. Paired

“We have worked very successfully with MAN Diesel &

with modern engines, these measures have allowed for a

Turbo for decades. Meyer Werft is currently working closely

significant improvement of the vessels’ energy efficiency.

with all large suppliers in the market,” explains Jörg

“Apart from energy efficiency, we strive for minimization

Heidelberg, Head of Systems Engineering.

of the environmental footage of the vessels. In this field, we

CLEANER AND MORE EFFICIENT SOLUTIONS

greatly appreciate the ef for ts of the main engine manufacturers, including MAN, for the improvement of the

Cruise ships typically sail in environmentally

design of exhaust gas cleaning devices as well as for the

sensitive areas. While ensuring minimal impact on the

development of new engines,” says Di Giorgio. “Apart from

environment, operators also seek to keep operating costs at

ships running on conventional fuels equipped with scrub-

economic levels. The growing attention to the combination

bers, we expect a trend towards ship designs that can be

of fuel consumption and vessel’s efficiency has been one of

powered by LNG. For this we have dual-fuel engines, able to

the main design drivers in the development of the latest

operate with high efficiency both on oil and gas, in our

generations of cruise vessels. For better energy efficiency,

portfolio,” says Sokrates Tolgos. All in all, there seems to be

Fincantieri has focused the design on the reduction of

a bright future on the horizon – for passengers, cruise

propulsion power through the fine tuning of hydrodynam-

operators, shipbuilders as well as manufacturers.

$ 6.5 More than

BILLION

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will be invested in new ocean vessels in 2016 alone

▪

1 Viking Sea, the second of six cruise ships that Viking ordered from Fincantieri, was delivered in March at the shipyard in Ancona.

2 Meyer Werft built the Norwegian Escape within a mere 18 months.

No 01.2016

2

INSIGHTS

1

CRUISE INDUSTRY

A BOOMING SEGMENT The cruise ship sector shows no sign of slowing down with nearly 24 million passengers expected to sail in 2016, a dramatic increase from 15 million only 10 years ago.

PHOTOS: Filippo Vinardi/Fincantieri S.p.A., Ingrid Fiebak/Meyer Werft

NUMBER OF OCEAN CRUISE SHIPS 400 350

Number of lower berths of ships on order:

⬛ Fincantieri (55,700) ⬛ Meyer Werft (47,800)

NUMBER OF BERTHS 80,0000

35,000,000

70,0000

30,000,000 25,000,000

50,0000

20,000,000

40,0000

PERIOD: 2000 – 2020

30,0000

⬛ STX France (46,300) ⬛ Meyer Turku (20,200) ⬛ Mitsubishi (3,250)

TOTAL PASSENGER CAPACITY

60,0000

300 250

CRUISE ORDERBOOK BY SHIPYARD

PERIOD: 2000 – 2020

Source top: IHS Fairplay: Maritime Shipping News. Source bottom: Cruise Industry News, 2016-17 Annual Report.

15,000,000

PERIOD: 2000 – 2020

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No 01.2016

TROUBLE SHOOTERS

T

At the forefront of connectivity, MAN PrimeServ offers secure remote support for customers all over the world – and is continually developing new services.

The fourth industrial revolution is dawning as more and more Industry 4.0 applications are becoming reality. One of the most popular visions: machines that autonomously predict and report possible sources of nonconformance.

This is a vision that MAN Diesel & Turbo is close to achieving for its customers of various industries. From the Control Centers in its German headquarters in Augsburg and Oberhausen, MAN PrimeServ is remotely monitoring engines and turbomachinery both at sea and in onshore installations thousands of miles away. The MAN PrimeServ Online Service transmits key data from any place in the world via secure data connections. “As original manufacturers we know our products best. Secure online access to engines

PHOTOS: Dirk Bruniecki

allows us to monitor operating parameters and provide

18

appropriate services,” explains Stefan Eefting, Head of PrimeServ Diesel in Augsburg.

As one of the first, MAN started its online services in

2000 providing simple monitoring with weekly or monthly reports. Today, online connectivity allows for interactive

◀ Analysts at the Online Service Control Center

REMOTE

MONITORING With the machinery data transmitted via secure network connections, MAN PrimeServ provides a number of services, such as condition reporting, remote support and trend analysis.

No 01.2016

troubleshooting where MAN PrimeServ may access data simultaneously with technical personnel onsite for immediate support. “Should a problem prove insoluble from a distance, we can dispatch someone who already knows all the relevant parameters. In this way we can plan and work more efficiently,” says Eefting. The experts also monitor

3,500 ENGINES are online ready.

says Eefting. In this way, conditionbased maintenance allows for preventative care of machinery. Another step is providing service around the clock.

“We are currently training personnel in Fort Lauderdale in the US as well as in Singapore and will realize a 24-hour service during the course of this year.”

One of the challenges facing online services in general is custom-

data in real time and provide valuable recommendations for

er trust. “Even though data handling at MAN PrimeServ is

the maintenance or repairs of the machinery without delay.

completely secure and remote services offer obvious ben-

And MAN PrimeServ is now working on fully automated

efits, some customers are hesitant to share data outside

evaluation of data – a step that will revolutionize the classic

their company,” states Marcel Sicker, Product Manager at

concept of maintenance and service.

MAN PrimeServ in Oberhausen. But there is a cultural change in sight. With regards to digitization and Industry

MAPPING OUT FUTURE POSSIBILITIES

4.0, benefits clearly outweigh potential risks of handling

Stefan Eefting expects automated monitoring to be

data, no matter if it’s related to industrial machinery, or just

standard within the next 5 to 10 years. “Condition-based

sending an email containing private information. So the

maintenance where maintenance is no longer scheduled at

future is bright, if you imagine that the experts who service

fixed intervals but provided according to the actual condi-

your machine will be able to solve a problem – before you

tion of a unit will be one of the major steps in development,”

even know it exits.

▪

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No 01.2016

The lifting of international sanctions on Iran re-opens the door for MAN Diesel & Turbo and paves the way for a range of business opportunities. Removing trade embargoes will boost the country’s economy and also allow MAN Diesel & Turbo to pick up where it left off. Up until 2010, MAN operated a number of branches in Iran, which provided a full and comprehensive service. With the four-year embargo, that sank to zero. MAN has manufactured turbomachinery in the three digits for projects in the country, and many of them are still in full operation. Very aware of the issues that may crop up, MAN knows things will start off slowly. It’s expected that as trade opens up and banking sanctions fall away, however, business will get easier. As well as the need for new technology, there is huge potential for services, such as revamping and modernizing existing plants – irrespective of the branch, whether it's oil & gas, petrochemistry, power generation or industrial gases.

“For us, it’s about re-connecting and building on our previous business relationships, as well as establishing trust with new customers,” explains Dr. Maik Tiedemann, Senior Vice President, Head of MAN PrimeServ Turbo.

Recruiting is underway and a new MAN Diesel & Turbo office will be up and running soon in Tehran. From there, a distribution network across the country and the prevision of workshop capacities will follow. The Iranians value the high quality of German and Swiss engineering, both of which come together in MAN products and solutions.

In fact, the first orders for MAN PrimeServ Turbo have already been placed. The Iranian Oil Pipelines and Telecommunication Company (IOPTC), that operates one of the most important oil pipelines in Iran, from Marun to Isfahan, has put in a service order for MAN turbomachinery. It will take time before business can return to normal, yet, the country which used to be one of the Middle East's strongest economies, is clearly back on track.

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OPEN FOR BUSINESS

For us, it’s about re-connecting and building on our previous business relationships, as well as establishing trust with new business partners.”

Dr. Maik Tiedemann, Senior Vice President, Head of PrimeServ Turbo

No 01.2016

◀ Oil from the Marun Oil Field in south-western Iran is transferred to Isfahan via six pumping stations.

▶ The pumping stations along the pipeline are set to run with turbomachinery by MAN.

◀

TEHRAN

ISFAHAN ◀

AHVAZ

PHOTOS: Mohammadreza Rezania, MAN (2)

◀

ABADAN

Iran

MARUN OIL FIELD

427

KILOMETERS is the length of the Marun-Isfahan pipeline

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No 01.2016

22

NEW SUBSEA HORIZONS

A

No 01.2016

◀ A giant on its way to the seabed: The subsea compression template spans the size of a soccer field.

A ▶ Highly robust and reliable: MAN Diesel & Turbo’s HOFIM™ compressor for underwater use.

Conquering uncharted waters: Since September 2015, the Norwegian company Statoil has been operating the world’s first subsea gas compression station at the bottom of the Norwegian Sea. The compression technology for the revolutionary project was developed in Zurich.

About 200 kilometers off the coast of Norway, 300 meters

decrease in natural pressure within a reservoir. Low pres-

below the sea, dim shafts of light reveal a gigantic structure

sure and the associated unstable flow in the underwater

of yellow-painted steel struts. A gas compressor station the

pipeline pose a risk of damage to processing facilities and

size of a soccer field is firmly anchored to the seafloor,

jeopardize operations. That is why, to this day, only about

ready to extract up to 1.28 billion cubic feet of gas per day.

half the volume of natural gas fields can be tapped into

The colossal high-tech setup ensures that gas will flow from

using conventional recovery methods. The solution to the

the Statoil-operated Åsgard reservoir to the Åsgard B pro-

problem lies in compressing the gas as closely to the source

cessing platform, 40 kilometers away, for years to come. The

as possible, in other words, before flow instability occurs in

centrepiece of the underwater facility consists of two

the pipeline. “Thanks to the new compressor solution, we

­HOFIM™ subsea compressors developed by MAN Diesel &

will achieve high recovery rates and extend the field’s pro-

Turbo in Zurich and delivered to Aker Solutions. As the

ductive service life until 2032,” says Siri Espedal Kindem,

general contractor, the company integrates and intercon-

Senior Vice President for Åsgard operations, Statoil.

nects the high-tech elements for Statoil ASA. The state-

PHOTOS: Statoil ASA, MAN

owned Norwegian energy company is among the leading

FIRST STEPS TOWARDS A GREATER VISION

“Our compressor is designed in such a manner that it

drivers in developing subsea extraction technology.

Without the underwater compressor module, Statoil

can be set up in close proximity to the borehole – in other

would have had to cease its platform operations in the

words underwater,” explains Patrik Meli, Head of Engineer-

Åsgard field in the foreseeable future. Like many others, the

ing at MAN Diesel & Turbo Schweiz AG and the project

Norwegian oil and gas company had to face a problem

director who oversaw the development of the subsea com-

common to the industry. The further the extraction of

pressor. “The advantage is that the pressure in the pipeline

hydrocarbons (oil and gas) progresses, the greater the

is high enough again to avoid undesired flow conditions.

23

300 1BILLION .28

No 01.2016

1

METERS

down, Statoil’s revolutionary gas compressor station for subsea gas extraction is firmly anchored to the seafloor and ready to extract up to

87 CUBIC FEET OF GAS/DAY. Overall, recovery from the Midgard reservoir on Åsgard will increase from 67 percent to

24

PERCENT

As a result, one can tap the existing fields for a longer period of time.” In addition, the higher pressure allows for higher extraction rates. In the case of Statoil, this means the new technology will enable the company to draw about 300 million more barrels of oil equivalent from the reservoir, representing a maximum recovery capacity of 21 million standard cubic meters of gas per day. At the same time, the innovative technology decreases energy consumption and, thereby, CO2 emissions. Meli mentions another benefit, stating, “Building a platform costs a lot of money. However, installing the facility directly on the seabed also decreases additional costs.”

In the long run, the revolutionary technology could change the whole industry, given that a complete “subsea factory” is the production concept of the future. Statoil has been doing research to realize such a venture for decades.

Ultimately, their goal is not only to relocate compressor systems onto the seafloor, but also the entire production facility, including gas treatment and distribution. MAN’s Diesel & Turbo subsea compressor has brought Statoil a significant step forward in realising their vision. “The Åsgard project is highly significant for us,” says Terje Steingrimsen, Senior Vice President, Emerging Subsea Technologies at

2

Aker Solutions. “At Åsgard, together with our subcontractors, we have succeeded in creating added value for the long term.”

3

ADAPTATIONS FOR SUBSEA USE

The particularities of underwater conditions, of

course, initially required innovative solutions. Installations on the seabed are exposed to extreme stresses, and require a substantial amount of electronics to facilitate the inevitable remote control systems. Another key point is that the machines must be configured for a minimum amount of maintenance, given that maintenance means raising them to the surface from a depth of 300 meters at significant cost. To avoid having to dismantle the entire structure in such a case, Aker Solutions developed a special concept.

“The system is subdivided into single modules, comparable to a Lego system. In this way, each machine can be uninPHOTOS: Statoil ASA

stalled individually,” explains Knut Olaf Nyborg, Vice President, Concept & Product Line Management, Aker Solutions.

The utilized MAN Diesel & Turbo compressors have a

1 Under construction: the basic structure of the subsea compressor system at Aker Solutions’ Egersund Yard.

2 Full concentration: a crane operator is lowering one of the subsea compressor modules into the sea.

3 Rigorous testing: at Statoil’s research laboratory, the company operated the machine under real conditions before putting it into operation.

hermetically sealed ­HOFIM™ (high-speed oil-free with integrated motor) compressors operate without the complex interaction of lubrication and dry gas seal systems, gearboxes, and couplings. They are, thus, less prone to breaking down, encapsulation makes them leak-tight, and maintenance efforts are reduced to a minimum because the compressors run almost without any mechanical friction.

The ­­HOFIM™ compressor, also used in other applications like onshore gas storage, was specifically adapted for underwater use. To counteract the risk of corrosion inside the machine, all components are designed to be as robust as possible. “The moment there is any residual moisture, and hydrogen sulfide and carbon dioxide are involved, as is the case in subsea gas and oil recovery, corrosion can result,” explains Patrik Meli. Engineers substituted the original

critical advantage in this regard. Equipped with a high-

rotor consisting of many small disks with a “solid rotor”

speed induction motor and active magnetic bearings, the

forged out of a single block of steel. To prevent machine

25

No 01.2016

overloads and associated frequent maintenance tasks, the engineers also designed a somewhat conservative machine layout that operates at lower speeds.

TESTS FOR TODAY AND THE FUTURE

To ensure that the system functions reliably under

such conditions, specialists tested the compressor over many years in Statoil’s water basin, built especially for this purpose on the premises of the company’s research laboratory in Karstö, Norway. When operated underwater, the machine’s thermal boundary conditions change and these can only be simulated prior to actual implementation.

The system’s other components also underwent intensive testing. “There are no technical regulatory authorities for subsea installations. For that reason, we had to address, eval-

Installing the facility directly on the seabed also decreases additional costs” Patrik Meli, Head of Engineering at MAN Diesel & Turbo Schweiz AG

uate, and cover all uncertainties and risks thoroughly,” says Anders Storstenvik, Engineering Manager at Aker Solutions.

MAN Diesel & Turbo and Aker Solutions have now

1

agreed on a long-term partnership to advance the development of next-generation subsea systems. The objective is to make the units smaller, lighter, and more cost-effective, enabling smaller oil and gas fields to profitably use the technology, as well. These units will then be ready to take the next ground-breaking step in the oil-and-gas recovery industry, namely a fully immersed subsea factory.

2

▪

3

1 Pioneer: finding unconventional solutions is part of Patrik Meli’s everyday life.

2 Attention to detail: the compressor in development at MAN Diesel & Turbo in Zurich.

3 Specialists for the extraordinary: Patrik Meli (second from left) and his Zurich team.

26

high tech SUBSEA

No 01.2016

EXTRACTING UNDER WATER

ÅSGARD

100

NORWAY

BAR approximate boosting pressure capacity

5 ÅSGARD A Electrical power is supplied to the subsea facility from a vessel called Åsgard A approximately 50 km away.

PLATFORM ÅSGARD B Before being delivered ashore, produced oil and gas is conveyed from the subsea facility to a semi-submersible platform, Åsgard B, where they are further processed.

1

RESERVOIRS The hydrocarbon reservoirs Mikkel and Midgard lie 2,500 meters below the seabed.

When natural pressure decreases, MAN compressors ensure a constant flow of hydrocarbons for further transportation and processing.

2 3

PHOTOS: Statoil ASA, Matthias Haslauer (2)

1

2

OIL YEARS is the time it took to adapt and qualify the compression technology for the harsh and demanding subsea conditions.

THE SUBSEA GAS COMPRES­SION STATION comprises all necessary process equipment: Here, the incoming wellstream is cooled, separated, compressed, mixed back, and, from far below, delivered towards Åsgard B.

AT THE CENTER a HOFIM™ subsea compressor ensures a constant flow of hydrocarbons by boosting the pressure of the incoming wellstream.

Remotely controlled, it can work for years without any planned maintenance or interruption.

OIL

3

OIL

306

MILLION BARRELS of oil equivalent is the increase in oil recovery through the new technology.

4,800

4 4

METRIC TONS weighs the entire station including pumps, separators, and compressors.

T

6 STACKED TRUCKS amount to 24 meters, which is the height of the subsea compressor station.

40 5

KILOMETERS from Mikkel and Midgard is where the processing platform Åsgard B is located.

27

No 01.2016

STURDY HEART

T

At the INOVYN chemical plant in Rheinberg, Germany, a 30-year-old MAN compressor is still faithfully doing its work. Lovingly nicknamed “Old Heinrich,” the unit ensures that the PVC manufacturer’s site operates at full capacity.

▶ Everything is in order at INOVYN as long as the subtle hum of Old Heinrich can be heard.

To the employees at the INOVYN chemical plant in Rheinberg, the muffled, constant humming that can be heard coming from “Old Heinrich” is a reassuring sign that one of the centerpieces of the company is running smoothly. “Its steady hum means that everything is working just fine,” says plant manager Michael Würdinger. “The compressor is essential to our work.”

Driven by an MAN steam turbine, the MAN CP-type

screw compressor has been running 24/7 for almost 30 years. Impressed by the unit’s sturdy reliability, a longserving foreman enthusiastically nicknamed it “Heinrich” decades ago. The name stuck and is the one workers use when speaking about the compressor, which they do frequently. Heinrich is the central piece of equipment driving the chemical plant. Specifically, the machine pushes the gas, used by INOVYN to manufacture primary products for plastics, through kilometers of pipes.

INOVYN products are used to manufacture construction materials, such as PVC pipes and window moldings, as well as epoxy resins for the production of rotors for wind turbines. The main ingredients of these products are chlorine and propylene, a colorless gas obtained from petroleum. The chemical company produces the chlorine itself in electrolyzers – machines the size of a passenger van that break down brine into its elements: chlorine, a sodium hydroxide solution and hydrogen. An MAN radial turbocompressor handles this task, pushing the manufactured chlorine through the pipe network.

28

When it comes to machines custom-built for our purposes, communication with the manu­facturer on a regular basis is highly essential.”

PHOTOS: Oliver Tjaden

Michael Schoofs, INOVYN’s maintenance manager

29

No 01.2016

Germany WESEL ◀ RHEINBERG DÜSSELDORF

NORTH RHINE– WESTPHALIA

2015, the manufacturer has been part of a joint venture, consisting of international chemical companies Solvay and Ineos. These two major corporations liked the Rheinberg plant’s resource-sparing production processes so much that they decided to move a large part of their PVC production to the Lower Rhine region.

BENEFITING FROM A CLOSE RELATIONSHIP

Every few minutes, tanker trucks and tank-carrying

railcars leave the plant’s premises in Rheinberg. The bustling activity at the filling and loading stations depends on production running smoothly, which in turn hinges on the MAN compressors operating reliably around the clock.

For that reason, employees man the control room day and night and monitor the machines’ functions. Michael Schoofs, INOVYN’s maintenance manager, ensures that all of the machinery is operationally ready. “There is always something that needs to be optimized or improved,” says

▲ INOVYN is situated in the Ruhr region, one of Germany’s most important industrial areas.

Schoofs. “When it comes to machines custom-built for our purposes, communication with the manufacturer on a regular basis is highly essential.”

For that reason, the chemical plant has maintained a close relationship with MAN PrimeServ, which is the service brand for all MAN Diesel & Turbo products. MAN

MAKING USE OF ALL BY-PRODUCTS

plant for more than 25 years. He is not the person who nick-

But chlorine is much more than just a product

named the long-serving compressor, although he is inti-

component for the chemical plant. The company based in

mately familiar with all of its individual components.

­R heinberg also uses the chemical for purifying process

Several times a year, he and the INOVYN engineers take the

water. The facility handles all of its raw material very

time to make improvements to the machine, make adjust-

thoughtfully, especially the hydrogen obtained along with

ments, and perform preventive maintenance. For example,

chlorine during electrolysis. Through a connecting pipe,

they developed a solution to improve a filter susceptible to

INOVYN pumps the hydrogen directly to a neighboring

wear in such a manner that the maintenance intervals

production facility, effecting a substantial decrease in its

could be extended. Another benefit of the positive custom-

natural gas consumption. “Efficiency is one of our priori-

er relationship between MAN and INOVYN is that critical

ties,” says Würdinger. “We utilize or sell all by-products

repair parts are pre-ordered from MAN Diesel & Turbo and

generated in the chemical reactions.” Materials that the

kept in stock there to allow for a quick response if needed.

INOVYN and MAN have taken on several large-scale

company can’t sell are transformed into hydrochloric acid.

This efficiency is one of the reasons why INOVYN in Rheinberg continually operates at full capacity. Since July

30

engineer Heinrich Bär has been in and out of the chemical

projects in the last several years. In the late 1990s, for example, they replaced the oil-purged mechanical seal with

Efficiency is one of our priorities.”

Michael Würdinger, plant manager at INOVYN

▲ For decades the radial turbocompressor has been pumping gas at the core of the facility.

▶ Kilometers of piping make up a vast network spanning the entire INOVYN plant.

a gas seal, thereby extending the maintenance intervals.­

foundation.” After consulting with MAN and getting a

At the time, it was one of the first modifications of this

clearer picture of the situation, the INOVYN engineers

kind. Today it is a widely used sealing system.

In the course of additional modifications in the early

opted to build an identical replacement of the steam

2000s, the company installed a second compressor stage, among other things, thus increasing the machine’s capacity

figure the entire hall,” Schoofs explains.

“Old Heinrich” is permitted one week-long break each

by 20%. These and further minor optimization measures

year. The compressor sits idle so that the entire INOVYN

have resulted in achieving maintenance intervals of up to

production plant can be inspected. During this week, MAN

seven years.

PrimeServ specialists inspect the machine with endoscopes

PHOTOS: Oliver Tjaden

CARING FOR “OLD HEINRICH”

turbine from 1974. “Otherwise, we would have had to recon-

to locate any worn parts. “Regular maintenance is the only way for us to ensure reliable production and safety in the

The year 2014 marked a milestone in the collabora-

plant,” says Würdinger, the plant manager, indicating that

tion between MAN and INOVYN, the plant’s sole operator at the time. MAN PrimeServ switched out the compressor’s

safety is a top priority in a chemical factory.

The workers breathe a sigh of relief when they can

steam turbine after 40 years of operation. It was a complex

hear “Heinrich” humming again throughout the premises.

endeavor, and, as Schoof remembers it, “A new model would

“That’s when we know that a key part of the inspection has

have been less costly, but it would not have fit on the old

been successfully completed,” says Würdinger.

▪

31

No 01.2016

To cover the 156 kilometers between the port of Corinto on the northwestern Pacific coast of the central American country and the destination of Los Brasiles, the convoy needed a full seven days. Together with the specialist carrier, the expert team from MAN Diesel & Turbo dealt with every challenge, against all the odds. It took four trips, each with two engines, to deliver the eight engines to the brand-new 140 MW power plant. The goal of the facilities, operated by ALBA Generación, S.A., is to ensure power supply with enough stability to the Nicaraguan Electrical Network, to provide compensation for other, less stable, renewable energy technologies, as well as to replace other older and less-efficient diesel power plants.

32

SEVEN DAYS TO MANAGUA

PHOTOS: MAN

Precarious bridges, tight bends, steep mountain valleys, and roads with heavy traffic – and all the while in the background the threatening roar of the Momotombo volcano. The spectacularly heaviest of loads made its way to its destination along the roads in Nicaragua – at a snail’s pace. On the giant flat bed of the 20 axle low-loader trucks, the 320 metric ton weight of the 18V48/60 engines pressed the 160 wheels into the tarmac. An incredible feat for man and machine, by temperatures at a tropical 40 °C degrees.

No 01.2016

300 CARS A single 18V48/60 engine weighs the equivalent of 300 small cars. Eight of these behemoths are set to be installed in a new power plant close to Managua, the capital of Nicaragua. A fly-over bridge system to reinforce a total of 13 bridges was needed for the transportation – as the existing bridges would never have coped with the heavy load.

â—€ Final destination: the brand-new power plant at Los Brasiles.

33

No 01.2016

The reliability of our engines and rapid response times are crucial to EDF PEI.”

◀ Clean machine: SCR catalysts reduce NOx emissions in the exhaust gasses

34

PHOTOS: JF Morazzani

Björn Abel, Service Manager MAN PrimeServ

No 01.2016

FULL SERVICE, FULL POWER

35

I

No 01.2016

For two years the Lucciana plant on Corsica has been contributing to the island’s electrical grid.

During development operator EDF PEI built on the on-site support of MAN PrimeServ.

In German, there is a saying “to live like God in France.” If He did live there, where would He go on vacation? According to the French, His destination would probably be the “Ile de Beauté” (Isle of Beauty). By which they refer to Corsica, one of the most beautiful islands in the Mediterranean Sea with rich and diverse landscapes. It’s no wonder that the Corsicans call their island the “mountain in the sea.” Its highest peak, the Monte Cinto, reaches an impressive 2,706 metres. And thanks to the island’s topography, hydropower provides a large proportion of the electricity needs of the 322,000 Corsicans. “In Corsica power generations comes from different sources. More than one third of the electricity comes from hydroelectric plants, with another third produced in two thermal power stations, and the final third comes from submarine cables from the mainland,” explains EDF PEI’s Matthieu Pedesert, deputy director of the new engine-driven Lucciana power plant.

The plant has been supplying power to the northern part of the island since early 2014.

The EDF group invested about EUR 400 million in the

1

new facility, where seven MAN 51/60 DF engines generate a total of about 120 MW. “The new power plant plays a key role in the island’s energy mix. Hydropower does supply a large amount of electricity, but that’s primarily in the spring and fall, when the reservoirs are full. However, the greatest demand for power is in winter and summer. With all the tourists here, large amounts of electricity are consumed, ultimately because there are more and more air-conditioning systems. Now, we’re able to cover these periods with the Lucciana plant,” explains Pedesert, adding, “That is why we depend on the engines running smoothly and can only carry out maintenance during low-load periods.”

ON-SITE PRESENCE FOR RAPID RESPONSE

The plant on Corsica is one of four island power sta-

tions that MAN Diesel & Turbo has completed for EDF PEI. “In contrast to the turnkey generating plants on ­Martinique,

36

2

No 01.2016

1 Strong partner: the EDF PEI team worked closely with the service experts from MAN. 2 Centerpiece: the 7 MAN 51/60 DF engines achieve 96 percent availability.

3 Cornerstone of power supply: the new plant covers up to 15 percent of the island’s total demand.

120 3

The direct link to the service engineer was a real added value.”

MEGAWATT

for the Isle of Beauty

PHOTOS: JF Morazzani, Louis Vignaroli

Matthieu Pedesert, deputy director of the EDF PEI Power Plant Lucciana

Guadeloupe and La Réunion, we were not consortium lead-

island for 14 months,” remembers Cedric Beaume with

ers for the Corsica project. The scope of our services con-

PrimeServ France. Besides planning and performing regu-

sisted ‘only’ of planning, delivery, commissioning, and

lar maintenance at 1,500, 3,000, and 6,000 operating hours,

support. EDF PEI carried out the installation and the actual

the engineer stood at the ready during the warranty period

construction on its own,” specifies Dieter Kunkel, Senior

to facilitate immediate response in the event of large-scale

Project Manager at MAN Diesel & Turbo. “Once the plant

malfunctions. And as it turned out, his readiness really was

was commissioned, MAN PrimeServ after-sales experts

put to the test.

also were tasked to provide support for it in close collaboration with the operator.”

For the entire warranty period, EDF PEI had a mainte-

TACKLING CHALLENGES WITHOUT DELAY

nance engineer from MAN Diesel & Turbo’s location in

Pedeser t. “MAN PrimeSer v quick ly addressed the

Saint-Nazaire on site in Corsica. “All in all, I was on the

problem and their responsiveness was outstanding.

“We had three bigger issues to deal with,” recounts

37

No 01.2016

We were able to put the facilities back into operation very quickly. Thanks to Cedric Beaume’s presence, the collaboration was close and resolution-oriented.” The high level of professional cooperation is also underlined by Björn Abel, who provides support for EDF PEI from the MAN Diesel & Turbo headquarters in Augsburg. “EDF PEI always stayed calm and level-headed. Via Beaume, we were always kept updated on the situation. And in the case of a turbocharger damage for example, we immediately located just the service engineer with the most experience for resolving the problem in the MAN network and organized the proper replacement parts.” The dispatched turbo specialist from PrimeServ Benelux arrived in Corsica only three days after the incident and immediately generated a detailed repair plan together with EDF PEI mechanics and Beaume. In addition, all required repair parts were on hand at the plant within five days after the incident.

This successf ul and rapid deployment really impressed EDF PEI managers. “I’m very satisfied with the good relations we have with MAN. They were always very attentive to our needs and the direct link to Cedric Beaume here on site represented real added value. We expect to collaborating with PrimeServ in the future,” summarizes Pedesert with praise. Together, MAN and EDF PEI ensure that God can run the air-conditioner when on His summer vacation in Corsica.

38

▪

OUTLOOK

For a number of years the French Ministry of Ecology has been pursuing plans to supply Corsica with natural gas and to run EDF PEI’s new power plant with it. To facilitate operating the plant with gas in the future, it was equipped with MAN 51/60 DF engines instead of MAN 48/60 as originally planned. The installation of LNG barges off the coast to ensure gas supply is under consideration.

No 01.2016

◀ Investment for the future: currently the plant is running on diesel – a switch to gas is possible, as soon as gas supply is available.

POWER MIX FOR CORSICA

EDF PEI’s power plant Lucciana primarily supplies the seaport Bastia which is the economic center of this part of the island. The second thermal power station is located close to Ajaccio.

EDF PEI

BASTIA

CALVI

LEGEND For a smooth operation: MAN PrimeServ meticulously prepares all planned maintenance works well in advance. ▼

CORTE

wind power

hydropower

thermal plant

high voltage network and substations

AJACCIO

PHOTOS: Louis Vignaroli

200 kV DC network

PORTO VECCHIO

BONIFACIO 39

No 01.2016

59,308 METRIC TONS

Estimated reduction in C02 emissions at a single car production plant after replacing coal boilers with an MAN CHP system.

40

No 01.2016

◀ Will rigorous new energy policies in China and new technologies clear the air in Shanghai?

SHANGHAI SMOG ­TARGETED

C

Technological solutions by MAN support China’s policies for less air pollution.

Curbing pollution is high on China’s political agenda. The country still emits more greenhouse gases than any other, but it’s also concerned about the adverse effect this is having on public health, tourism and the economy, as well as on the environment. As a result, the government is now targeting its carbon footprint and coal-fired economic growth with rigorous new energy policies and climate goals, the latest of which were announced at the UN Climate Change Conference Paris (COP21) in 2015. Increasingly, natural gas is being viewed as an alternative source for climate-friendlier energy production.

As well as planning to cut emissions from its coal

power plants by 60% by 2020, the government has also pro-

PHOTO: Ni Ni Sh/Imagine China

hibited companies in Beijing, Shanghai, and Guangzhou from building new coal-fired plants. They are also required to replace any coal-fired boilers by 2018. “China’s industrial capitals have been developing exponentially over the past decades, as has their need for energy,” says Manfred Biedermann, chairman at MAN Diesel & Turbo China. “That need had to be met and there was little time to consider the

41

No 01.2016

This plant is a landmark.�

Prof. Jochem Heizmann, President and CEO of Volkswagen Group China

1

2

1 Four sets of these MGT6200 gas turbine have been installed at the plant.

2 Steam towers at the VW plant in Shanghai.

3

42

3 Inside the Volkswagen works: busy along the production line.

No 01.2016

Our technology can help China to reach its climate goals.”

▲ Efficiency and precision on all levels.

Dr. Uwe Lauber, CEO of MAN Diesel & Turbo

“how”. That has changed and there is a lot of interest in sustainable and efficient technologies, for example in our combined heat and power plants.”

CLEANER PRODUCTION

The gas turbine solution is a valuable key to reducing

the carbon footprint at the production plant, but also to increasing its fuel efficiency. “Highly efficient technologies like CHP will play a vital role in tackling the energy chal-

MAN Diesel & Turbo and the Chinese industry have

lenges in China,” Biedermann stressed. In addition to this

enjoyed a century-long tradition of partnership in many

plant, MAN is currently developing several projects across

technological fields, but January 2016 marked an important premiere for both. It saw the inauguration of a new gas-fired

the region.

But the cooperation does not end with energy gen-

CHP plant in Shanghai, powered by the latest range of MAN

eration, explains Biedermann. In fact, it involves collabora-

gas turbines. The plant of the SAIC VOLKSWAGEN AUTOMO-

tion within and across sectors, addressing the country’s cli-

TIVE COMPANY LIMITED, a joint venture between Chinese

mate issues on different levels: “The Chinese Government

SAIC and the German Volkswagen Group, contains four sets

has set ambitious goals to reduce the country’s carbon foot-

of MGT6200 gas turbines. Each of the four turbine sets de-

print, and our technology can help to reach these goals. We

livers electrical power by driving a generator. Use of the

can offer support along the complete gas value chain, for

waste heat for producing process steam increases the

example in gas transport or the marine sector.”

plant’s overall efficiency to more than 80%. The steam is

PHOTOS: Volkswagen AG (2), MAN (2)

EFFECTIVE, EFFICIENT AND VITAL FOR CHINA

used at the production works. “ This plant is a landmark in car production in China,”

WITH GAS, LESS POLLUTION ON THE HORIZON

explained Professor Jochem Heizmann, President and CEO

Chinese LNG tankers with dual-fuel engines and offers

of Volkswagen Group China, at the inauguration ceremony.

turbomachinery for pipeline transport. “The question of

“The new plant not only provides steam and electricity for

sufficient gas supply is of high strategic relevance to the

our Car Plant 3 here at SAIC Volkswagen, it also means we no

Chinese government, and we support that in many ways,”

longer use coal boilers so CO2 emissions will be reduced by

says Biedermann.

In the field of gas transportation, MAN equips

59,308 metric tons each year,” he highlighted. “Our technol-

With a local production facility and the history of

ogy can help China to reach its climate goals,” said Dr. Uwe

MAN in China reaching back to 1898, the company is look-

Lauber, CEO of MAN Diesel & Turbo, after the ceremony.

ing forward to new opportunities. “Including all fields of

“The new plant covers almost 25% of the energy needs of

activities, MAN Diesel & Turbo has delivered more than a

one of the biggest car production sites in the country. It is

thousand machines and installations to Chinese custom-

low in greenhouse gas emissions and utilises more than

ers,” says Biedermann. “And, with a rising need for cleaner

80% of the invested fuel energy,” he explained.

air, there will be many more.”

▪

43

No 01.2016

Mr. Leaton, you are largely credited with coining the term “carbon bubble”. What exactly do you mean by the term? Back in 2011, as part of my work for the Carbon Tracker Initiative (CTI), we were looking at a macro-level question, which was “how much warming do you have if you burn all the coal, oil and gas that’s out there in the ground”. We brought together research on the carbon budget and data on fossil-fuel reserves, and then compared the two to work out the overhang – which we then called the “carbon bubble”. We first used the term in the title of the report: “Unburnable Carbon – are the word’s financial markets carrying a carbon bubble?” Up until then, no one had managed to link the financial markets, investors or companies to the carbon budget – and to work out what that might mean.

Your second report in 2013 “Unburnable Carbon 2013: Wasted capital and stranded assets” includes a warning from Lord Stern in the foreword: “if we burn all current reserves of fossil fuels, we will emit enough CO 2 to create a prehistoric climate”. Why the dire warning? I think even Lord Stern was surprised at how quickly we ran out of budget, and the scale of the overhang in the ground. He saw the report as a way of stimulating more action on the climate and stressing its urgency. The goal was to get people to focus on future capital

DIALOGUE & OPINION

WILL THE CARBON BUBBLE BURST?

Hydrocarbons still move the world, but their price has recently touched a historic low. At COP21 a carbon budget was fixed when world leaders vowed to limit global warming to 1.5 °C. What are the implications? Will the carbon economy bounce back or has the energy transition already defined a “new normal”? MAN Diesel & Turbo spoke to James Leaton, Research Director at Carbon Tracker Initiative, a non-profit financial think tank.

44

expenditure and fossil fuel supply and encourage a forward-looking view. We have enough people look ing at last year’s emissions, but it’s too late for them.

When you say forward-looking, what kind of timeframe are we looking at? It depends.

On the climate science side, if you’re looking at carbon budgets, they tend to run out in terms of decades, by 2035-2050. A lot of the energy scenarios that you see from oil firms tend to run 20 to 35 years until 2035-2040.

It’s the same with the International Energy Agency (IEA). So this is a reference point that we try to compare to. For investors we focus on the next 10 years of capital expenditure and the related production over the next few decades.

No 01.2016

In the 2011 report, you state that there will

Even in places like Australia, where they have

no change in the fuel mix, then that’s their

be winners – and losers. Who are they? This

coal resources and, until last year, not exactly

“business as usual” to justify keeping going

is something that investors obviously picked

the most favourable political environment,

as they are. But as soon as you get any chang-

up on – and that’s part of the reason why we

the country has very good options in terms

es from that – any increases in policy, any

developed the Carbon Supply Cost Curves

of renewables.

major advances in technology, any shifts towards ser vice-based economies, any

(CSCC). Over the last couple of years, we looked at coal, oil and gas in turn. Already

In your view, which technologies offer the

change in pricing for alternatives – then they

two thirds of all coal production is unprofit-

most promise to offset the effect of the

will all add up to lower energy demand. We’re

able, which isn’t sustainable for any period of

“unburnable carbon”? We’re neutral on

not saying that there won’t be any growth,

time. And once you start taking the view

technologies, but we do feel their potential

but it may disappoint compared to what

that coal is in structural decline, that we’re

has been underestimated. If it works and is

some people are expecting.

not just experiencing the bottom of a cycle,

within what people are will-

you’re presented with even more challenges.

ing to pay, we’re not picking

Which is what we’re seeing in the U.S. and

one over the other. If you

Australia right now. For oil, it’s a slightly

start getting energy storage

different story. Companies with deepwater

and renewables working

or oil sands assets, for example, don’t come

together to overcome some

out well in a more carbon-constrained lower-

of the availability issues,

demand scenario.

that’s when you will see markets really changing

What are the implications of the current

and a shift to a lower carbon

oil price? We did our first oil CSCC review

mix driving forward.

about two years ago, when oil was still $110 a

The energy transition is underway. That’s not to say that it’s going to be easy.”

barrel. At the time, we advised investors to

How important are carbon

check their oil portfolios at $75-95 a barrel,

capture and storage tech-

which they dismissed as a pointless exercise.

nologies (CCS)? Even with

The current situation is acting as a kind of

the assumptions we have

live stress test for the market. The increased

around CCS, it won’t change

volatility is caused by a very small mismatch

the fundamental conclusion that we can’t

Are you any more or less concerned about

between supply and demand, which shows

burn it all. The challenge for CCS is that it’s

stranded assets today than when you

that there is a real risk in the oil market if you

always going to be an additional end of pipe

wrote those reports back in 2011/2013?

James Leaton, Research Director at CTI

cost, so in one sense it’s billed as sticking ex-

Well, certainly we’re more positive about the

isting technologies together. This raises the

direction of what’s happening on the ground

What effect will the Paris Agreement have?

question of what is the potential to reduce

in a lot of places. What’s perhaps more

It confirms the direction of travel. There’s

the cost on those technologies to a level

worrying for investors, however, is that a lot

already a consensus around the carbon bud-

where it is competitive. Also, some regions

of the incumbent companies are obviously

get levels from the Intergovernmental Panel

have the geology for CCS, but others don’t.

not ready to accept that that this change is

overestimate demand going forward.

already happening.

ILLUSTRATION: Sergio Ingravalle

on Climate Change, the IEA and the CTI. The debate focuses now on how much of the

Against this background, how can the

budget should be allocated to different sec-

global demand for energy be met? We’re

Where are we headed? And can we prevent

tors, to different fossil fuels and to different

actually seeing an increased decoupling

the carbon bubble from bursting? The

countries. So it’s more about political issues.

between energy demand and economic

energy transition is underway. That’s not to

growth. Not only in a lot of OECD countries,

say that it’s going to be easy. There are signs

And can they be dealt with on a regulatory

but also in some of the other parts of the

that a lot of the system is taking notice of the

or fiscal level? More policy is coming

world. In recent years, for example, expecta-

carbon bubble. The Bank of England, the G20

through, most likely in a range of reforms

tions of the f undamentals of Chinese

and the Financial Stability Board are all look-

rather than in one neat global package. But

economic growth have been regularly down-

ing into these kinds of risks, which is an

the longer we debate what the policy should

graded which brings down the overall level of

important signal to the markets. More

look like, the less we’re going to need it. We’re

energy demand. If the best-case scenario of

companies are looking at a wider range of

already starting to see that the technology is

energy firms relies on continued economic

scenarios, including at what a 2 °C scenario

starting to become competitive anyway.

growth and continued energy intensity with

might mean for their business.

▪

45

No 01.2016

NEWS & FACTS

The dredger workhorse for China: MAN Diesel & Turbo will supply 4 x MAN 32/40 engines for two 8,000m3 trailing suction hopper dredgers for Jiangsu Haihong Engineering Technology Co., Ltd. The vessels are to be built in China by the Jiangsu Haixin Shipping Heavy Ind. with delivery scheduled for the end of 2016. The scope of delivery covers two shipsets, each consisting of two engines.

24 HOURS

Regarded as a proven powerhouse in the industry, the MAN 32/40 commonly sees service for 24 hours a day, with a power output that ranges from 3,000 to 9,000 kW. Low wear-rates and long maintenance intervals are key characteristics of this engine.

Celebrating a Greek anniversary 50 years is a short period of time in the history of the Greek shipping industry, but it marks an important anniversary for MAN ­Diesel & ­Turbo Hellas, a subsidiary

YEARS 46

of MAN Diesel & Turbo SE. Since 1966, MAN has been supporting the Greek marine sector from Piraeus – one of the most important ports in the mediterranean. ­Happy ­sailing!

No 01.2016

A desert megacity in Saudi Arabia MAN Diesel & Turbo has been contracted to build a power plant for a cement factory in Rabigh for the Arabian Cement Company (ACC). MAN will be the consortium leader for engineering, procurement and construction. In the first phase, to be completed in 2016/17, the 40 MW plant will be equipped with two type 18V48/60 TS engines. In two subsequent phases, the plant’s capacity will be increased to a total of 120 MW, which will see a further two engines installed.

MAN has been a trusted partner of ACC for more than 30 years and understands that the working environment in Saudi Arabia can be a challenge. “Ambient temperatures up to 50°C, ambient air full of dust and sand, and occasional heavy rainfall are the kinds of conditions we have to deal with here,” explains Ralf Göppel, Senior Project Manager at MAN Diesel & Turbo.

The factory supplies batching plants for the King Abdulla Economic City (KAEC), which is just 20km away. Covering over 181 million square meters of land, KAEC is set to become Saudi Arabia’s next megacity and the future home of over two million residents. Just a short drive north of Jeddah, KAEC is being constructed between the Red Sea and the desert. Trailblazing residential and commercial properties, as well as ultra-modern transport, will define the city.

Steaming Turkish fiber From 2017, the world’s leading manufacturer of acrylic fibers will be powered by MAN. Turkish company Aksa Akrilik

PHOTOS: MAN, watg.com/ King Abdulla Economic City, Shutterstock

Kimya Sanayii A.Ş. has placed an order with MAN Diesel & Turbo for the supply of a 99-MW steam turbine generator set. At the company’s main site in Yalova, Turkey, this Genset will replace an existing installation.

The plant modernization aims to decrease production costs while at the same time meet internally growing steam demand. This complex control of steam supply is vital to guarantee high quality fibers.

47

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