TWO-STROKE ENGINES
MAN SEES ECONOMICS FOR LPIG CONVERSIONS CLOSE TO PARITY With the looming introduction of EEXI and CII rules from 2023 as well as Scope 3 emissions reporting, shipowners are taking a close interest in the economics of engine conversions 8 The BW Gemini, a VLGC from the BW LPG fleet, has had its MAN B&W 6G60ME-C9.2 main engine retrofitted to an MAN B&W 6G60ME-C9.5LGIP dual-fuel type, capable of operating on fuel oil and LPG
While the majority of attention has focused on the development of alternative fuels for the maritime industry as a means of meeting the IMO’s medium and long-term decarbonisation targets, comparatively less attention has been placed on the development of solutions that help existing vessels to meet decarbonisation targets. MAN Energy Solutions has been focusing a significant amount of attention on the development of conversion solutions, leveraging its experience pioneering the conversion of low-speed, two-stroke engines to operate on a range of different alternative fuels. Klaus Dahmcke Rasmussen, Head of Projects and PVU Sales at MAN PrimeServ explained to The Motorship that the focus of discussions around conversion projects was increasingly shifting away from discussions around technical feasibility, which had been demonstrated, and moving towards detailed considerations of economic and environmental businesses cases on a ship-level basis. This represented a change from the earliest conversions, which had been completed on a trial basis, such as the conversion of the Wes Amelie to operate on LNG in 2017. Converting VLGC conversion interest Rasmussen noted that the very large gas carrier (VLGC) segment represented a particularly interesting market segment at the moment. The newbuild market has adopted the MAN B&W ME-LGIP engine as the standard for very large gas carriers since 2020, Rasmussen said (see “ME-LGIP advantages for VLGCs”).
24 | NOVEMBER 2021
Commercial enquiries around the possibility of converting a number of vessels to operate on LPG were continuing to arrive, and MAN hoped to be in the position to announce a number of further projects in spring 2022, Rasmussen said. When asked by The Motorship why the majority of owners of the remaining 147 very large gas carriers were continuing to take a wait and see approach, Rasmussen responded that there was a perception that conversion costs would be too high. Rasmussen noted that careful analysis of the cost of converting an existing VLGC to operate on LPG fuel revealed that the cost of conversion was essentially comparable with the price differential between ordering an LPG-burning newbuild compared with a diesel-fuelled VLGC. Rasmussen noted that the estimates were based on the cost of the latest BW LPG conversions, adding that newbuilding costs might vary depending upon whether an order was placed with a Korean or Chinese yard. Similarly, the cost of the fuel supply system could be rationalised if a direct connection with the cargo tanks were specified, potentially eliminating the need for Type C deck mounted fuel tanks. The scope for further reductions in the costs of engine retrofits was limited, as MAN PrimeServ was already able to leverage its purchasing power to supply parts competitively.
8 Klaus Dahmcke Rasmussen
Future proofing investments After discussing the economic and operational advantages for shipowners looking at converting their VLGCs to operate on LPG, Rasmussen began to look at the environmental aspects of ship retrofits.
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