Dr.-Ing. Yves Expert Opinion W - EffShip

1 Our Reference 2004/0036 Date 17. September 2005 (revised edition) On behalf of Thermo King Corp. 314 West 90th Street Minneapolis, MN 55420-3693 Client s Reference Titel Determination of energy cost of electrical energy on board sea-going vessels by yves Wild Expert Opinion Location of the company: Hamburg Registered at Amtsgericht Hamburg HR B Nr. 53854 Managing Director: yves Wild File: Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Bank account: Deutsche Bank Hamburg BLZ: 200 700 24 Account no.: 6429716 00 Financial Authority Hamburg-Altona Tax no.: 02/895/05008 VAT ID no.: DE 158 712 034 Address: Elbchaussee 1D-22765 HamburgGermany Refrigeration Engineering ConsultancyMarine Engineering Expert OpinionsSystem Engineering Measurements W i l dIngenieurb ro yves Telephone: +49 40 390 70 65 Mobile: +49 172 410 18 26 Fax: +49 40 390 24 75 Email: : 2004/0036 Client: Thermo King Corp.

2 Titel: Determination of energy cost of electrical energy on board sea-going vessels W i l dIngenieurb ro yves File: Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Content 1 Scope of this report ..1 2 Introduction ..1 3 Cost factors to be Fuel oil consumption ..2 Nominal fuel oil consumption ..3 Theoretical background ..3 Effective fuel oil consumption (example) ..6 Development of bunker oil prices ..7 Lub oil consumption ..10 Nominal lub oil consumption ..10 Effective lub oil consumption (example)..11 Lub oil Efficiency of alternator ..11 4 Cost calculation ..12 5 : 2004/0036 Client: Thermo King Corp.

3 Titel: Determination of energy cost of electrical energy on board sea-going vessels W i l dIngenieurb ro yves File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Page 1 1 Scope of this report This report is given on behalf of Thermo King Corp. 314 West 90th Street Minneapolis, MN 55420-3693 The following question shall be answered by an independent Expert : - What is the cost per kWh electrical energy on board sea-going vessels? The undersigned has been contacted by Mr. Steve Bryant (Thermo King USA) and Mr. Dermott Crombie (Thermo King Europe) in October 2004 in order to discuss the scope of the evaluation. During the Intermodal Exhibition 2004 in Copenhagen the issuing of a formal report has been requested.

4 A first edition of this report has been issued in February 2005. Due to the significant increase of bunker prices during 2005 a revised edition has been issued in September taking into consideration the current price levels. 2 Introduction On board of sea-going vessels the electrical energy has to be produced by on-board alternators. These alternators are mainly driven by diesel engines or by a PTO (Power Take Off) from the propeller shaft. Sometimes also other energy sources are used by installing for example exhaust gas turbines or steam turbines (the steam being produced with exhaust gas heat). However, the vast majority of vessels is equipped with diesel generators only.

5 The following investigation therefore only considers electrical power generation by medium-speed 4-stroke diesel engines or slow-speed 2-stroke diesel engines (main engine) with shaft generator. On modern container vessels the vessel s internal power demand is approx. 600 kW to 1,200 kW depending on the ships size. The main consumers are pumps, fans and A/C systems. Beside this internal power demand the power consumption of reefer containers has a significant impact on the overall power consumption. For example the Monte -class vessels of Hamburg-S d (built 2004 / 2005 at Daewoo) are : 2004/0036 Client: Thermo King Corp.

6 Titel: Determination of energy cost of electrical energy on board sea-going vessels W i l dIngenieurb ro yves File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Page 2 equipped with 1,365 plugs for reefer containers and have an installed diesel generator capacity of approx. 15 MW. Thermo King as an important manufacturer of refrigeration aggregates for reefer containers claims to offer significant energy savings with their MAGNUM unit in comparison to competitors products. In order to determine the cost savings that go along with the energy savings this study here shall determine the specific cost for the electrical energy on board of ships.

7 3 Cost factors to be considered The cost for the electrical power generation can be divided into the direct cost (consumables) and the indirect cost (investment, maintenance). Investment cost are not taken into consideration in this study because it is difficult to determine any savings that might be achievable by the installation of smaller diesel generators in case of having a fleet of low power consumption reefer containers. Maintenance cost is also not taken into consideration because here, too, it is difficult to determine any savings if the power consumption of reefer containers is reduced.

8 It sometimes even might be worse to run diesel engines at lower load thus resulting in higher maintenance needs. Therefore only the direct operating cost that are caused by the consumables fuel oil and lubrication oil. are analysed in this study. Fuel oil consumption Fuel oil consumption has the greatest impact on operating cost of diesel generators. Therefore the fuel oil consumption of diesel engines will be addressed in more detail below. : 2004/0036 Client: Thermo King Corp. Titel: Determination of energy cost of electrical energy on board sea-going vessels W i l dIngenieurb ro yves File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Page 3 Nominal fuel oil consumption Theoretical background Heat of combustion, specific energy or calorific value, is a measure of the energy content of the fuel.

9 It decreases as density, sulphur, water and ash content increase. Specific Energy is not controlled in the manufacture of fuel except in a secondary manner by the specification of other properties. The energy that is stored in fuels is expressed by the calorific value. When burning mineral oils not only CO2 is produced but also water vapour. The net calorific value only specifies the energy that can be used without the condensation heat of this water vapour. It is therefore applicable for diesel engines. In modern house-hold boilers also the water is condensed so that in this case the gross calorific value is used.

10 Net specific energy can be calculated with a degree of accuracy acceptable for normal purposes from the equation []) ( )( ) (326wssawQn +++ + = [MJ/kg]1 with = the density at 15 C [kg/m ] w = the water content [mass-%] a = the ash content [mass-%] s = the sulphur content [mass-%] The net calorific value of marine diesel oil (MDO) and marine gas oil (MGO) is 42,700 kJ/kg, for intermediate fuel oils (IFO) and heavy fuel oils (HFO) it is approx. in the range from 39,000 to 41,000 kJ/kg. An average of 40,000 kJ/kg can be assumed for IFOs / HFOs thus resulting in an increase of the specific fuel consumption of % in comparison to MDO.