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Navigating the energy transition
MAN PLOTS H2 VECTORS COURSE AMID CHANGING CONDITIONS
Dr Uwe Lauber, ceo of MAN Energy Solutions, discussed the implications of the energy transition and MAN Energy Solutions’ response to the changing market, during a recent interview in Brunsbuttel
On Wednesday 29 October, on the sidelines of the fi rst bunkering of a commercial vessel with renewable synthetic natural gas (SNG), Dr Lauber gave The Motorship an exclusive interview, in which he provided his views on the current state of the energy transition, and MAN Energy Solutions’ role in developing technological solutions.
Dr. Lauber began by noting that in order to meet existing IMO targets for greenhouse gas emission reductions, every single newbuilding being delivered today should be capable of operating on LNG. As this is not occurring, solutions will have to be developed that can be applied to the world’s fleet.
There is little alternative to retrofits to operate on alternative fuels as a route to lowering emissions from the fleet in order to meet 2050 targets.
Given the proportion of vessels that are propelled by MAN engines, this gives MAN ES a special responsibility and opportunity to contribute technical solutions.
MAN PrimeServ engineers’ experience in converting vessels to dual-fuel operation has developed since the ElbBlue was converted to dual-fuel operation in 2017.
From a technical point of view, Dr. Lauber expressed confidence that the performance of the vessel’s MAN 51/60 DF engine would be unaffected by the switch from LNG to SNG, “as the molecules are the same”.
SNG as a potential Power-to-X solution
Dr. Lauber began by focusing on the potential offered by SNG, as one of the potential fuels from the Power-to-X (or Power-to-fuel).
The importance of SNG technology is that it created a future pathway towards lower GHG emissions for vessels operating on LNG. Shipowners investing in LNG conversions would be able to achieve significant greenhouse gas emission savings compared with HSFO and even compared with conventional LNG, in the future.
In other words, the broader significance of the bunkering of ElbBlue was that it demonstrated the technical feasibility of using SNG technology. As and when such a supply chain developed, MAN would be able to provide commercial solutions to customers interested in operating on such fuel.
Dr. Lauber added that the focus needed to shift towards the other conditions required to make green shipping a reality, given that they are not yet economically viable. The development of a commercial supply chain for synthetic LNG will only happen if there is a regulatory framework in place to facilitate it.
Hydrogen combustion economy
Dr. Lauber called for the mass adoption of Climate Neutral fuels, including green hydrogen, and synthetic fuels must play a leading role and be made available in huge quantities to increase the uptake and make price competitive.
The Motorship has previously reported on emerging interest in hydrogen as an export commodity, and the emerging hydrogen sector is a key area of focus for the Energiewende and the wider focus on developing European domestic electricity generation from renewable energy sources.
Hydrogen as a fuel has been the subject of research for MAN Energy Solutions, and noted that the company had been conducting research into hydrogen combustion in its 4-stroke engines at its Augsburg plant for a number of years.
“We are already able to combust hydrogen in our stationary 4-stroke engines at concentrations of up to 25%,” Dr. Lauber noted, adding that “hydrogen combustion at concentrations of close to 100% is also in our R&D roadmap. Pure hydrogen combustion is also not the most difficult task”.
The current challenge was managing fluctuating concentrations of hydrogen and methane, between 25% and near-pure hydrogen, but “I fully expect us to develop solutions in the next couple of years”.
Hydrogen beyond marine
Dr. Lauber noted that the use of hydrogen in maritime applications was likely to remain limited, given the operational, infrastructure and supply chain challenges that operating large vessels on hydrogen would pose. “If you look at the energy content of hydrogen, it shows clearly we need a hydrogen carrier, such as ammonia or methanol, or SNG. That is the route through which I expect hydrogen to play a significant role in the marine business.”
8 The ElbBLUE’s
MAN 51/60 DF engine
By contrast, the outlook for the stationary energy market is slightly different. Here, Dr. Lauber expects to see an expansion in the role of hydrogen in the energy mix, given its suitability for use as a drop-in fuel with natural gas.
The Motorship noted that there was an increasing interest in hydrogen combustion given the increasing focus on supplying hydrogen in blended form via pipeline for the domestic energy market in Germany and also potential interest in beginning international transport of hydrogen via pipeline.
“As hydrogen production scales up, we will definitely make [hydrogen combustion] technology available on the stationary market if there is enough commercial interest.”
However, Dr. Lauber questioned whether the economics and emissions profile of combustion of renewable hydrogen would support widespread adoption of the technology. “I don’t think it's very efficient to produce renewable hydrogen to produce power.” Hydrogen combustion might attract interest from potential niches, such as for geographically isolated power generation.
Hydrogen product focus
Nevertheless, Dr. Lauber speaks with obvious pride in MAN Energy Solutions’ transformation in little over a decade.
“We are trying to transform the company from a traditional component supplier of engines and turbo machinery equipment into an energy solution supplier and one of the logical consequences of that is that we have also established our supply chain around hydrogen.”
“Today, we have tanks which are capable of storing hydrogen, we have all kinds of compressors to transport hydrogen, we have the ability to do EPC engineering, procurement and construction of all power to plant. So that is the uniqueness of our company, having a diversified portfolio compared to our competition.”
Electrolysers are also an integral part of MAN ES’ plans, although MAN ES faces similar challenges to other companies in the same space, given the small market for electrolysers and the need for significant advances in conversion efficiency. The demand growth for electrolysers over the coming 2 to 5 years will be enormous, Dr. Lauber said, adding that the challenge for everyone would be who could ramp up production fast enough to meet it.
This meant that the development of a serial product, including the automation of the stacks and more efficient assembly processes was a priority, but “the beauty of course is we are part of the Volkswagen Group, and they really understand serial production”. The key is stack technology, which requires constant investment, and needs to be kept in house. A separate focus is on automating production as far as possible to improve cost competitiveness.
By contrast, MAN is maintaining more of a watching brief on fuel cell technology. Dr. Lauber noted that MAN ES envisaged some circumstances where fuel cells might be installed on a vessel, but that the technology did not form part of the company’s current plans. “If we do look at fuel cells, we would team up with a partner specialising in the area, because we as a company, for our clients, we don't have the volumes to produce these fuel cells. If the demand emerges, this will be something totally new.”
Regulation and CCUS
However, Dr. Lauber noted that the future evolution of the alternative fuel market was heavily dependent upon regulatory levers. “SNG is not available in the quantities required by the shipping industry at the moment, so there is a chicken an egg aspect to the discussion. But nobody will invest in a fuel which is four times more expensive than conventional fuel [such as SNG] without regulation helping to create a more supportive environment.”
Unlike other participants at the event, who directly called on the German federal government for support to facilitate the accelerated conversion of vessels to meet decarbonisation objectives, Dr. Lauber preferred to discuss the broader framework for the market.
“We need to have an appropriate CO2 price, which would be entirely consistent with the principle that the polluter pays.”
When asked about the price level, Dr. Lauber noted that he could envisage the CO2 price rising from current levels to close to EUR100/tonne of CO2 or even EUR110/t “in the near future”, adding that there are countries around the globe, which have this price level already.
The advantage of such a mechanism is that it would both encourage investment in emissions reduction technology, and would also be supportive for other emissions reduction technology, such as the introduction of carbon capture use and storage. (The use of green recycled CO2 in the methanation step at SNG supplier kiwi AG is only one of the ways in which the overall CO2 footprint is reduced).
“We are partners in a CCUS development project, and carbon reuse is an interesting technology,” Dr. Lauber concluded.
But Dr. Lauber remained upbeat about the potential that Power-to-X fuels hold for the maritime market. In part this was because of structural changes in the electricity market, and the expected rapid expansion of renewable energy generation, would create additional green energy.
“I’m quite sure that the [expansion of renewable energy sources to produce green hydrogen] will come. Because there is no alternative to decarbonisation.”
kept in as far g brief AN ES ght be ot form at fuel in the 't have emand of the upon antities here is dy will e than sources to produce green hydrogen] will come. Because there is no alternative to decarbonisation.”
8 The ElbBLUE
during the SNG bunkering operation
8 Dr. Lauber
