Wärtsilä Stakeholder Magazine

Transcription

NO. 03.2007
AROUND THE GLOBE | BTC PIPELINE | W 46 ENGINE | 50 DUAL-FUEL LNG CARRIER | PASSION FOR SHIP DESIGN | IN DETAIL | SIGN OFF
Twentyfour7.
p 03.2007
WÄRTSILÄ STAKEHOLDER MAGAZINE
+ FINANCE & BUSINESS WORLD | R&D
around the globe
photo quiz
Where is this exotic dwelling located?
You’ll find the answer on page 71.
3.07 Twentyfour7. 17
[ COLU M N ]
around the globe
Our new structure
BRINGS US CLOSER TO CUSTOMERS
AS WÄRTSILÄ HAS CONTINUED to grow both organically
and through acquisitions all over the world, our need
for reorganization has evolved.
WHAT IS NEW is that Wärtsilä is now organized by
function and not by product. For example, the
Propulsor Business acquired in 2002 has now been
fully integrated into Wärtsilä’s global organization.
Since Propulsor Business sales remain within Ship
Power, global Propulsor services have been merged into
Wärtsilä Services. Propulsor R&D and manufacturing,
together with the former Wärtsilä Engine Division, are
now Wärtsilä Industrial Operations (WIO).
the customer’s viewpoint. At WIO,
operations are divided into four Delivery Centres:
Propulsion, 2-stroke, Vaasa and Trieste. We also have
Global R&D, the Business & Finance Centre and the
Delivery Development Centre. For both customers and
suppliers, this brings more clarity and coordination
– our technology, manufacturing and delivery of
products each come from a single entity.
OUR FOCUS IS
UNITS THAT ARE MORE CENTRALIZED make it easier for us
to view products from a lifecycle perspective. As our
complete portfolio is always visible, we can ensure that
the necessary emphasis is placed on both research and
development and innovation.
ANOTHER TARGET of the new WIO structure is to ensure
that we gather and develop competences related to each
area of professional expertise. We also encourage our
people to rotate inside Wärtsilä - within their different
units and around the globe.
Lars Hellberg
Group Vice President
Wärtsilä Industrial Operations
18 Twentyfour7. 3.07
[ C O R P O R AT E C I T I Z E N S H I P ]
parties is required,” says Simelius. Successful
sponsorship provides unique added value for
both parties.
Systematic formulation of each sponsorship
deal, including a written agreement, avoids
possible misunderstandings. “It’s also possible
- and necessary - to specify the tools to be
used for measuring and evaluation at an early
stage,” he says.
In business, sponsoring can make a real
difference. When there’s a functional match
betwee n the parties involve d, the link
between the beneficiary and the sponsoring
company’s products and services will generate
the positive associations that are desired.
SPONSORSHIP FIRES UP BUSINESS VALUES
that
In successful sponsoring, it’s not only the thought, but the well-planned thought
y business on
counts. At its best, sponsoring acts as a seamless component in visionar
who benefit.
several levels, bringing home added value for both the sponsor and those
hat is sponsorship, really? “It is
a business relationship between
a provider of funds or other
resources and an individual, an event or an
organization,” says Mikael Simelius, Vice
President of Marketing Communications and
Branding at Wärtsilä.
In an exchange of funding, goods or
services, the sponsor acquires certain rights
and an association with the beneficiaries.
“Predetermined goals that have been agreed
together are the foundation for successful
sponsorship,” says Simelius. Sponsoring is
always an investment. Dedication to achieving
the agreed goals is required from both the
sponsor and the beneficiary throughout the
sponsorship period.
W
Of equal importance is determining what
sponsoring is not. “Sponsoring is not simply
about buying media space,” says Simelius.
Wärtsilä’s policy on sponsoring excludes
sponsorship of the personal interests of
employees or management, political parties
and religious organizations.
Regardless of whether art, sport, science,
educat ion or enterta inment is being
sponsored, it’s the ambition and the spirit
that lies behind doing something that count
highest.
SPONSORING AS A NATUR AL
EXTENSION OF BUSINESS
When carefully thought out, sponsoring
can function as an engine at several business
levels, especially when implementing strategy.
Both internal and external communications
can benefit from the creative management of
sponsorship.
Efficie ntly designe d sponso rship
programmes can help in maintaining close
relationships with target groups and in
understanding their key interests.
Involving management and staff can help
bonding within the company, strengthening
team spirit and encouraging employees to
deepen their commitment to business visions.
“Sponsoring functions as a way of making our
core values real, both inside and outside the
company,” says Simelius.
It’s also about fun. When everything has
been taken care of, it’s time to lean back,
relax and enjoy. Before it’s once again time
to move.
SHARED VALUE S MAKE
THE ENGINES RUN
“At its heart, a shared view of the objectives
and what is being require d from both
NEN
TEXT: MINNA TAKKUN EN PHOTOS : MANU MARTTI
[ AFRICA | AMERICAS | ASIA | EUROP E | OCEANIA ]
reportage
AT THE HEART OF MODERN TURKEY,
Anatolia has been the cradle of
great civilizations. Many people seeking a place of freedom are drawn
to its tremendous diversity. Today this land of many cultures is adding
another significant chapter to a rich past.
THE BAKU-TBILISI-CEYHAN PIPELINE (BTC) crude oil
pipeline system extends from Baku on the Caspian Sea through
Azerbaijan, Georgia and Turkey to the port of Ceyhan on the
Mediterranean coast of Turkey. At Ceyhan, where loading a
tanker can take more than 24 hours, two tankers can be loaded
simultaneously.
The BTC pipeline routes oil across the mountains of eastern
Anatolia, avoiding the environmentally sensitive Black Sea and
the Bosporus Strait. Crude oil takes some 10 days to traverse the
full length of the pipeline. Headed by BP with a 30% stake, the
international consortium behind the project has ten other members.
The total cost of the project has been estimated at USD 3600
million for the Turkish part.
The BTC pipeline is 1768 kilometres in length and passes
through three countries - Azerbaijan (445 kilometres), Georgia (245
kilometres) and Turkey (1070 kilometres). More than 15,000 people
were employed in its construction and a thousand are now employed
in on-going operation and maintenance of the pipeline.
The cost of transporting a barrel of oil along the pipeline has been
estimated at USD 3.20. Compare this to the price of a barrel of
crude oil on the world market - more than USD 70 in September
2007. The BTC pipeline will supply approximately one per cent of
global demand for oil.
According to Ercan Özdemir, PT2 Station
Manager, daily pipeline throughput could be
increased to 1.8 million barrels by 2011.
OIL FIRST PUMPED IN MAY 2005. “The pipeline is designed to
transport a million barrels of crude each day, but we are aiming to
increase this to 1.2 million barrels per day in the near future and
perhaps to even 1.8 million barrels per day by 2011,” says Station
Manager Ercan Özdemir from Botas International Limited, who
is located at Pump Station PT2. “Increasing the flow rate requires
additional construction work and extra chemicals will have to
be injected into the crude oil to reduce friction. Tests with these
chemicals have already proved successful.”
Özdemir is very satisfied with the results achieved by his
international team and is especially proud of their environmental
management. Everyone has a working schedule of two weeks on
and two weeks off throughout the year. “It means you have two
totally different lives, and the hours we work are very uncommon
in Turkey.”
All 150,000 joints in the pipeline are buried with the land having
been reinstated on top. The only visible signs of the pipeline’s
existence are eight pumping stations and 101 block valve stations
which allow sections of the pipeline to be isolated. Two pumping
stations are located in both Azerbaijan and Georgia, and there are
four - PT1, PT2, PT3 and PT4 - in Turkey. In September 2002,
Wärtsilä contracted with Botas, an affiliated company of the Turkish
Petroleum Corporation (TPAO), to deliver the equipment for all
the pumping stations in the Turkish section.
Even though all the pumping stations carry out the same
task, there are some differences between them. Both PT1 and
PT3 use five parallel Wärtsilä 18V34SG gas-fired 5.7 MW
pumping units to generate a pressure of 88 - 92 bars, pumping
the crude oil at 1675 cubic metres per hour. PT2 utilizes a
Wärtsilä 12V34SG series gas engine producing 4.1 MW,
a pressure of 55 bars and a flow of 6700 cubic metres per hour.
At PT4, a Wärtsilä 18V34SG series engine provides the power
to pump oil at the same rate as at PT2.
The Wärtsilä engines were chosen for two reasons - their
p
reportage
RUSSIAN FEDERATION
ROMANIA
BULGARIA
Caspian Sea
Black Sea
GEORGIA
Istanbul
Baku
PT 1
AZERBAIJAN
Ankara
PT 3
PT4
PT 2
TURKEY
IRAN
Ceyhan
IRAQ
SYRIA
Ceyhan
PT 4
PT 3
PT 2
PT 1
Baku
1070 km
245 km
TURKEY
GEORGIA
445 km
AZERBAIJAN
At Ceyhan, two tankers can be loaded
simultaneously, an operation which
may take more than 24 hours.
p
power and efficiency at high altitudes and their environmental performance.
A variety of system tests, so called string tests, were carried out at Wärtsilä’s
facilities in Finland during spring 2003. The engines are fuelled by gas taken
from the natural gas pipeline which runs parallel to the oil pipeline. Wärtsilä’s
pump drivers meet the emission requirements of the World Bank Guidelines for
Onshore Oil and Gas development.
Wärtsilä also supplied auxiliary equipment such as starting air systems, lube-oil
systems for each engine, pump and gearbox, cooling radiators, auxiliary modules
for heat exchangers and filters, air-intake ducts, exhaust-gas systems and pumpseal oil systems.
PT2 NEAR ERZURUM, A MAJOR TRADING CENTRE. A visit to Pumping Station
PT2, located at a height of 1720 metres close to the City of Erzurum, requires
an unforgettable journey through moonscape-like landscapes that defy the
imagination.
On the caravan route from Anatolia to Iran, Erzurum has always been a major
commercial and military centre and is now a major rail terminal on the route
between Ankara and Iran. Located on a high plateau, it is Turkey’s coldest city,
but Mediterranean temperatures without the damp and sticky heat are often
reached during hot summer days, and the air is dry and pleasant. PT2, the smallest
pumping station on the BTC pipeline, is fairly easy to reach on a small plateau
half an hour from the city’s modern airport.
Picking up one’s car at the airport highlights two somewhat bizarre details.
Rental cars are delivered with almost empty tanks and English is spoken by very
On the five-hour drive from
Erzurum to Pump Station PT1,
both farmers and nomads
are a common sight.
In winter, keeping roads to
pumping stations and block valves
open is a huge snow-fighting
operation. In summertime,
hazards to vehicles come in
a different form. [right]
reportage
few people, even in the best hotels at the Palandöken ski centre. This skier’s
dream location has complete snow cover for seven months of the year and
boasts some of the longest (12 kilometre) and hardest ski runs in the world.
Even though foreigners are an unusual sight, the locals give visitors a warm
welcome that quickly dispenses with any language barrier.
Erzurum has won the right to host the 2011 Winter Universiade. Huge
investments will be made in both Erzurum and Kars, and the facilities to be
constucted are aimed at an even greater prize - hosting the Olympic Games.
Erzurum University has 70,000 students, and the city hosts a military base.
Plenty of government offices are also located in the area. The city’s walls
and fortress hark back to Byzantine times. The remaining Seljuk buildings,
brilliant examples of a fascinating aesthetic, are of significant importance, as
are Erzurum’s Ottoman buildings.
A PIPELINE FULL OF OIL BRINGS PROSPERITY. Traffic in this part of Anatolia
is quiet and the roads are in much better condition than might be expected.
New four-wheel-drive vehicles make an incongruous mix with dilapidated
lorries from past decades. There is plenty of room for development here. “The
pipeline has given the local people in this region great opportunities to improve
their prosperity. People working on maintenance tasks earn good salaries and
half the personnel deployed in snow-fighting operations
are from local communities,” says Özdemir.
All the Turkish pumping stations face severe winter
conditions with temperatures as low as minus 30ºC cold similar to that experienced in Siberia with snow up
to two metres deep. Workers belonging to the project are
highly trained in winter survival techniques.
Snow-fighting teams and local security personnel cooperate with BTC teams to make working conditions
safe and allow pipeline operations to proceed without
interruption around the clock. Keeping all the roads
to pumping stations and block valves clear and free of
snow during the winter months is Turkey’s biggest snowfighting operation ever.
Pump Station PT1 is 2140 metres above sea level in
a mountainous area in Ardahan Province, close to the
border with Georgia. The journey from Erzurum by car
takes more than five hours. For anyone interested in
capturing natural landscapes, this drive is fantastic and
unforgettable, like a dream.
p
Eight pumping stations are needed to boost oil
pressure along the Baku-Tbilisi-Ceyhan pipeline.
reportage
In the mountains,
daily patrols can
cover no more than
eight kilometres of
the pipeline route.
In winter, patrolling
is impossible.
reportage
The view from the car window changes every fifteen minutes, with
colours that are quite miraculous. Rivers, forests, bright green pastures,
permanent snowcaps, waterfalls, dramatic rock formations and marvellous
views are an endless source of fascination and surprise.
As soon as we drive out of Kars, the road gets bad. We pass monuments
from the many civilizations that have come and gone in the region’s long and
turbulent history: Byzantine churches and monastries, Seljuk mausoleums,
Ottoman mosques and hilltop citadels.
MUD ROOFS AND NEW BLOCKS OF FLATS. It’s easy to imagine this is the
end of eastern Turkey, but there is still plenty to experience in the remainder
of the drive. All along the 210 kilometres from Erzurum to Kars, traffic has
been light with only a few shabby foreign trucks sporting Romanian and
Georgian numberplates breaking the silence. Both farmers and nomads are
a common sight, smiling and waving as we pass.
Villagers offer excellent Kasar cheese and delicious honey. Here in what
really feels like the very middle of nowhere, people continue to live their
lives just as they did in earlier times. Small villages with mud-roofed houses
and new, brightly-painted blocks of flats present a sharp contrast.
Located almost side by side, the pipeline, power line and PT1 pump
station can now be seen from our car window. Security checks at the
entrance gates to both this pumping station and PT2 are strict. Army
barracks are situated right next to both stations. The problem of monitoring
the immense length of the BTC pipeline in an emergency situation comes
to mind.
Adern Dincay, Pipeline Technical Manager, explains: ”For every pumping
station we have three persons on foot patrol and one person patrolling in
a four-wheel drive vehicle. The high elevations mean that the maximum
distance we can patrol each day is just eight kilometres. Patrol personnel
report possible landslides or other risks so that any action required can
be taken. Spring and summer are most critical seasons - in
winter patrolling is impossible. Technical solutions which
reduce pipeline vulnerability to earth movements have been
implemented by earthquake experts with personal knowledge
of the area.”
“In the Turkish section of the pipeline, we have 51 block
valves situated in critical points near river crossings and on
slopes of more than 20 degrees. Closing a block valve takes
around seven minutes. However, it takes up to 28 minutes
to close some of the valves. Closing them blocks oil flow in
both directions.”
Pumping Station PT1 is in daily communication with the
other pumping stations, and English is spoken very well by all
workers. The actual area of the pumping station is quite small.
An office building, the engine room, a workers barracks, first
aid station, leisure area and canteen are arranged in close
proximity and rapidly become familiar.
Necmi Eren, Site Manager at PT1, highlights the fact
that in addition to dealing with a wide range of operational,
safety and environmental issues, having a good team who
wear smiles on their faces is very important. “Life at a
pumping station consists of working for 10-12 hours and
then watching television, reading or taking part in basketball,
football or backgammon tournaments – and sleeping. I make
sure that we have a barbeque once a week. On the serious
side, I point out at every morning meeting that we must be
extra careful and not allow any mistakes to occur.”
As we set off on the drive back to Erzurum, the extraordinary
contrast between the disciplined operation of this high-tech
facility and the fantastic landscape that envelops us sends a
shiver up my spine.
Operational waste is minimized, reused, recycled
or disposed of in an appropriate manner.
feature
MORE THAN
TWO DECADES
[ FE ATUR E ]
TEXT: JUKKA-PEKKA JÄRVENTAUS
of successful and
reliable operation
Wärtsilä 46, the highly-successful medium-speed
engine series that became the Wärtsilä 46F, has
gained a new member. Launched in September 2007,
the new 20-cylinder design offers more power, lower
emissions and a higher level of energy efficiency
than its 18-cylinder cousin. p
RELIABILITY IS
KEY FOR THE
WÄRTSILÄ 46
Reliability and overall economy are the
guiding principles behind the Wärtsilä 46
medium-speed engine. Its combination of
excellent combustion performance and
high levels of reliability have made the
Wärtsilä 46 the most popular engine for
power generation on new cruise vessels,
bulk carriers, cargo vessels, ferries,
fishing boats and tankers.
The emphasis being placed on
environment-related issues is growing.
To date, the main focus has been on
emissions of nitrogen oxides (NOx),
sulphur oxides (SOx) and particulates.
Increasing attention is being paid to CO2
as a result of the Kyoto Protocol.
Temperature has the highest influence
on NOx formation. The most successful
approach to reducing NOx emissions is
therefore to reduce peak temperatures
during combustion. Methods used for
achieving lower and stable combustion
temperatures can be divided into dry
and wet.
Dry methods involve optimizing the
shape of the combustion chamber, a high
compression ratio, sophisticated fuelinjection equipment and an adapted cam
profile, optimization of the turbocharging
system to ensure a correct fuel/air ratio
and internal cooling of the cylinder by
earlier closing of the air intake valves.
In wet methods, water is introduced
into the combustion chamber. Wetpac™
humidification is new technology
developed by Wärtsilä in which
pressurized water is injected directly
into the combustion air after it has been
compressed by the turbocharger. Less
water is required if it can be injected
directly into the cylinder. Direct Water
Injection (DWI) is available for the
Wärtsilä 46 in marine applications.
feature
hen launched in September 2004, the Wärtsilä 46F
initially offered outputs ranging from 7500 to 11,250
kW at 600 rpm. The new 20-cylinder Wärtsilä 20V46F
produces 23,000 kW at the same speed and is suitable for generating
electricity at both 50 and 60 Hz. Delivery of the first Wärtsilä
20V46F engines is scheduled for the second half of 2009.
The Wärtsilä 46F engine design has a particularly good
environmental performance. NOx emissions can be as low as
710 ppm at 15% oxygen, the level demanded in India today. The
Wärtsilä 20V46F is also able to comply with the increasinglystringent environmental requirements set by the World Bank.
W
Adaptive minimization of fuel consumption. Although it is
generally recognized that reducing NOx emissions has an adverse
impact on fuel consumption, the Wärtsilä 20V46F engine
incorporates design features which make it possible to optimize
fuel consumption while meeting the required NOx emission levels.
The Wärtsilä 20V46F is also able to minimize fuel consumption
adaptively according to the prevailing ambient conditions.
Though visually similar to the original Wärtsilä 46 launched back
in 1987, the new Wärtsilä 46F is packed with new features including
twin injection pumps and scalable control for high performance and
low exhaust emissions regardless of fuel quality. It is ideally suited
to applications which put a premium on savings in operating and
maintenance costs, superior environmental performance and fuel
adaptability.
Targeted at power plant markets. The Wärtsilä 46F was initially
introduced for marine applications in 2004. The first Wärtsilä 46F
marine engines entered service at the beginning of 2007, and the
longest-running engines have now accumulated more than 3100
running hours. A total of 14 marine engines have been delivered
so far. The Wärtsilä 20V46F power plant design introduced in
September began tests at Vaasa almost a year ago.
The new Wärtsilä 20V46F is targeted at power plant markets
where liquid fuels are still employed and where new, higher-output
generating plants with lower lifecycle costs and reduced emissions are
required. Even though the focus has moved to gaseous fuels in many
power plant markets, there are still numerous locations in the world
- such as islands, hydropower backup plants in Brazil and baseload
plants in Africa - where the only form of operation possible is using
liquid fuel, and heavy fuel oils (HFO) are employed to minimize
costs.
Reliability combined with high efficiency. In the last two decades,
high levels of reliability and low operational costs made the
Wärtsilä 46F’s predecessor - the medium-speed Wärtsilä 46 engine
introduced in 1987 - a global success story. Tage Blomberg, Group
Vice President, Wärtsilä Services, was involved in the design of the
Wärtsilä 46 engine from the very beginning. “The point of departure
was the need to replace the medium-speed power units that had, by p
“THE WÄRTSILÄ 20V46F
ENGINE INCORPORATES
DESIGN FEATURES
WHICH MAKE IT
POSSIBLE TO OPTIMIZE
FUEL CONSUMPTION
WHILE MEETING
THE REQUIRED NOX
EMISSION LEVELS.”
feature
NEW FACILITIES IN
TRIESTE IMPROVE
QUALITY AND
EFFICIENCY
p
A project modernizing Wärtsilä’s Trieste
plant was completed in September. This
EUR 18 million investment in an advanced
production concept has been carried out
to raise efficiency and quality levels while
providing additional assembly and testing
capacity.
The new production facilities have
increased Trieste’s production capacity
while also providing additional flexibility,
enhancing Wärtsilä’s prospects for growth.
”The new facilities enable us to increase
delivery volumes with a high-standard
production system in place. This will
be reflected in improved quality, timely
deliveries and a more competitive cost
level”, says Sergio Razeto, Vice President,
Delivery Centre Trieste, President of
Wärtsilä Italia SpA.
Ole Johansson, President and CEO of
Wärtsilä Corporation, said that higher
levels of efficiency and increased flexibility
are essential if Europe’s industrial
competitiveness is to be maintained.
”An essential part of any supply chain is
working closely with partners. This is a
major logistical challenge. In making this
investment, the goal was to design a plant
that will respond to these challenges and
continue to improve the service we offer
customers.”
Investments in the Trieste Delivery
Centre will continue. Wärtsilä is
responding to the current strong
demand by optimizing its production
process and supplier programme. To
increase production capacity in engine
blocks, a new machining centre is being
planned. The new facilities, representing
investments totalling EUR 15 million, will
be in service in 2008.
feature
then, been on the market for two decades.”
“At the time when the design process began, medium-speed
engines were switching to heavy fuel oil. The Wärtsilä 46 offered
a number of innovations that improved operational reliability and
made servicing and maintenance easier.”
Robust and compact. Twenty years after work on the Wärtsilä 46
was initiated at Wärtsilä’s Technology Centre in Vaasa, some of the
people involved in the early stages of the project are still working
there. One of them is Rune Svarvar, Senior Engine Expert, who
describes the Wärtsilä 46 as a robust and compact design with
strong, hard-wearing bearings.
“The Wärtsilä 46 was designed to make servicing as easy as
possible. It was a really good option for a wide range of conventional
installations. It had twin injection to optimize combustion. To
maximize turbocharger efficiency, the exhaust system was designed
as either a 3-pulse or single-pipe system known as SPEX. Right from
the start, the engine and the engine block were designed for resilient
mountings to facilitate installation and increase user comfort.”
WÄRTSILÄ
IS NOW THE
MARKET
LEADER IN
MEDIUMSPEED MAIN
ENGINES.
Suiting a wide range of needs. Customers for the Wärtsilä 46 also
include shipyards and shipowners. In addition to the competitive
price, shipyards value quick delivery, security of supply, efficient
project management and ease of installation. For shipowners, the
most important considerations are reliability, low operating costs and
ease of servicing.
“The Wärtsilä 46 is suitable for a wide range of customer needs,”
says Svarvar. “It has a turbocharging system that can be adjusted
to suit each customer’s individual requirements. As the engine has
common-rail fuel injection, it can run on a variety of fuels - even
combinations of different fuels.”
New markets in cruise vessels. “It was the Wärtsilä 46’s reliability
as a ship’s main engine that convinced buyers,” says Blomberg. One
result was that it soon replaced outdated engine types, particularly
on passenger ships where its output range was ideal for the vessel
type. It was also a popular power unit on RoRo ships.”
Marketing of the engine began with cruise vessels and soon
expanded worldwide. Wärtsilä is now the market leader in mediumspeed main engines.
The power plant market. After a couple of years, Wärtsilä 46 marine
engine deliveries were followed by deliveries of engines to power
plants. “Gas engines have now become more common, particularly
in the United States, whereas African countries that are upgrading
their infrastructure on the fast track mostly use oil-powered engines,”
says Blomberg.
According to Svarvar, the essential difference between marine
and power plant engines is that the turbochargers are customized
to fit the operational profile. ”The distinction between marine
and diesel power plant engines is becoming increasingly blurred nowadays many ships are built as power plant installations in which
the electricity generated is used to drive all of the vessel’s systems,
including propulsion.”
FINANCE&
TEXT: MAARIT KAUNISKANGAS
BUSINESS
WORLD
Wärtsilä for many years. Recent purchases
include two 7900 TEU container vessels and two
large LNG carriers. The former is propelled by
a Wärtsilä 14 RT-flex 96C main engine and the
latter is fitted with three 14-cylinder Wärtsilä
50DF in V-configuration and one 6-cylinder inline Wärtsilä 50DF dual-fuel generator sets for
electric propulsion,” says Mervin Ong, General
Manager of Wärtsilä Ship Power in Singapore.
High prices for oil have been a strong driver in
Malaysia’s offshore market. Many shipowners
are expanding their fleets and shipyards
have been upgraded so that they can build
sophisticated offshore supply vessels and
anchor-handling tugs. “Malaysia will continue
to be an important market for Wärtsilä – we
expect strong growth in the marine and offshore
segments to continue for at least two to three
years,” says Ong.
THAILAND AND MALAYSIA –
neighbours, but quite different
Although economic growth in both Thailand and Malaysia pales in comparison to that
of China, the economies of both countries have enjoyed very respectable annual GDP
growth of 5-10% in the last 10 years. The only exception was a period in 1997-1998 at
the time of the financial crisis in Asia.
THAILAND AND MALAYSIA ARE, however,
very different countries. Thailand’s economy
is heavily reliant on tourism, agriculture and
industries such as textiles, automobiles and
automotive parts. Although rich in natural
resources such as tin, rubber, natural gas,
timber, fish and with vast areas of arable
land, when compared to Malaysia, Thailand’s
infrastructure is not as developed. Malaysia,
blessed with rich offshore oil and natural gas
resources, has a number of important ports
which are well served by modern expressways.
SMALLER MARINE MARKET IN THAILAND
Thailand has never been a big player in the
maritime industry and shipyards are therefore
smaller, serving mainly domestic markets. Only
a handful of the country’s shipyards are capable
of building vessels of up to 5000 GRT such
as harbour tugs, workboats, offshore support
vessels and naval vessels for Thai owners. In
recent years, however, platform supply vessels
and small container vessels of size 1000
TEU and less have been built for export. Thai
shipbuilders have also benefited from shipyard
order books in China, Singapore and Malaysia
being full.
“Wärtsilä Ship Power has had a presence in
Thailand since 1990. We have two local agents:
Pattanayon Chonburi Co Ltd for commercial
newbuildings and Thai Kolon Co Ltd for naval
projects and seals and bearings. We have had a
strong position on the market over the last ten
years,” says Ong.
MALAYSIAN MARINE BUSINESS
GOING STRONG
Malaysia is an important market for Wärtsilä.
Malaysia International Shipping Corporation
(MISC), the country’s national carrier, has a fleet
of modern VLCC, panamax and post-panamax
container vessels and LNG carriers. PETRONAS,
the state-owned oil and gas corporation,
controls Malaysia’s petroleum resources and
has ventures in many countries around the
globe.
“PETRONAS has been a key customer for
03.2
[ M A RK ET REVI EW ]
finance & business world
Ship
Power
goes
CUSTOMER SEGMENTS
A U T H O R : J A A K K O E S K O L A , G R O U P V I C E P R E S I D E N T, W Ä R T S I L Ä S H I P P O W E R
Even the most
successful
companies have
to continuously
evolve their
operations.
OVER THE PAST FEW YEARS Wärtsilä Ship Power
has enjoyed an unparalleled upturn, gaining
markets at a rate exceeding overall market growth.
In our strategy, we have successfully focused on the
product-based Ship Power Supplier concept as we
are able to combine products into larger packages
and solutions. This has been of considerable
benefit to our customers - shipyards enjoy one
supplier with an extensive scope of supply while
shipowners or operators can obtain machinery from
a single supplier, optimizing operation and making
maintenance much easier.
Success in the past is no guarantee of the success in
the future, so even the most successful companies have
to continuously evolve their operations. Our clear
vision of the need to move forward has led Wärtsilä
Ship Power to begin the process of converting our
product and solution-driven approach to become
more aligned with our customers’ businesses. This
means understanding and knowing the logic of those
businesses, which in its turn enables us to create
and offer our customers even more attractive value
propositions – supporting them in running their
businesses better and becoming their most valued
business partner.
The cornerstones of the foundation for our success
are well founded, and it is clear that we will maintain
the Ship Power Supplier concept as the basis for our
product strategy. To facilitate the change towards a
more customer-driven approach, we have decided to
arrange our business around five customer segments
– Merchant, Offshore, Cruise&Ferry, Navy and
Special vessels - all of which are supported by a
technology office which is responsible for both
product and solution support and development.
TO ENSURE PROPER RESOURCING and a focus
on technology as a separate function, Ship Power
Technology is being established to support the
customer segments and to be responsible for research
and development in the Ship Power business.
Rollout of the new model began on 1 July 2007
and will be completed by the end of this year.
Heading the Ship Power business segments will
be Lars Anderson (Merchant), Magnus Miemois
(Offshore), Carl-Henrik Björk (Cruise & Ferry),
Jaakko Eskola (Navy), and Fred van Beers (Special
Vessels). Other members of the new Ship Power
management team are Henrik Wilhelms (Marketing
and Sales), Timo Koponen (Finance and Control),
and Arne Birkeland (Ship Power Technology).
CUSTOMER SEGMENTS ARE AS FOLLOWS:
Merchant – all vessels for seaborne transportation
such as container vessels, tankers, bulk carriers,
LNG carriers, RoRo vessels and other Cargo vessels.
Offshore – vessels and platforms used in oil and gas
exploration and production as well as their support
activities; drilling rigs and drilling ships, anchor
handling vessels, offshore research vessels, floating
production units, platform supply vessels etc.
Cruise&Ferry – cruise ships, passenger ferries,
passenger/cargo ferries, fast ferries and yachts.
Navy – various kinds of naval vessels and
submarines.
Special vessels – a wide variety of different kind of
vessels, with the main categories being tugs, fishing
vessels, dredgers and research vessels.
[ FACTS A ND FI GU RES ]
2007
7
STRONG DEMAND
AUTHOR: JOSÉPHINE MICKWITZ, DIRECTOR,
I N V E S T O R R E L AT I O N S
DURING THE FIRST NINE MONTHS vessel order
volumes continued to be higher than last year and it
is clear that for 2007, new all-time-high figures will
be reached both in terms of tonnage and the number
of vessels built. Activity was at a high level, especially
in the offshore and bulk carrier segments. Demand
in the power generation market also remained high
and all the segments relevant to Wärtsilä – baseload
production, industrial self-generation and grid
stability – were active during the review period.
Markets continued to be globally active. Wärtsilä
power generation equipment brings added value in
terms of fuel flexibility and efficiency in a market
where energy security and the responsible use of fuels
are at the forefront of the energy debate.
High order intake leads once again to a record high
order book. For Wärtsilä, the high level of activity
in both shipbuilding and power generation has
translated into an order intake of EUR 4039 million
for the first nine months and an order book totalling
more than EUR 6000 million, giving us visibility
for many years to come. Ship Power order intake for
the first nine months was up by 19% to EUR 1960
million compared to the last year’s corresponding
period. The first six months of 2007 were clearly
dominated by demand for offshore vessels but during
the third quarter, high levels of activity were also seen
in a variety of merchant ships. Order intake in Power
Plants in the review period was up by 34% to EUR
958 million with continuing activity in Africa and
the Middle East. In Europe, demand for power plants
using biofuels remained high, especially in Italy.
Net sales up by 13%, improved profitability. Total
net sales for January-September 2007 were up by
13% to a total of EUR 2491 million (2204). Net sales
in the Ship Power business were up by 50% to EUR
871 million (580). Net sales in Power Plants totalled
EUR 491 million (706). Net sales in Services totalled
EUR 1119 million, growth of 22% compared to the
CONTINUED IN BOTH OUR MAIN BUSINESSES
corresponding period in 2006, with organic growth
totalling 18%. Net sales by our Services business
represent 45% of Wärtsilä’s total net sales.
The company has been successful in improving
its profitability and the operating profit for the first
nine months of 2007 was EUR 233 million, 9.3%
of total net sales. Compared to the corresponding
period in 2006 when operating profit was EUR 162
million, 7.4% of total net sales, operating profit was
up by 43%.
Markets will continue active in the next six
months. The outlook for the global economy looks
strong and is expected to remain favourable in the
near future. Demand in both the shipbuilding and
power generation markets is expected to continue
active for Wärtsilä for at least the current quarter and
the first quarter of 2008. Based on our very strong
order book, net sales in 2007 are expected to be up by
some 15% and profitability will exceed 9%.
REVIEW PERIOD 1-9/2007 IN BRIEF
MEUR
1-9/2007
1-9/2006
Order intake
4 039
3 304
Order book, 30 September 6 162
4 108
Net sales
2 491
2 204
Operating result
233
162
% of net sales
9.3%
7.4%
Profit before taxes
227
163 1)
Earnings per share, EUR
1.69
1.42 1)
Cash flow from
operating activities
299
172
Interest-bearing net debt
at the end of the period
61
185
Gross capital expenditure
172
142
Change
22%
50%
13%
43%
39%
Demand in both the
shipbuilding and
power generation
markets is expected
to continue active
2006
4 621
4 439
3 190
262
8.2%
255 2)
2.03 2)
74%
302
-67%
21%
55
193
1) For comparability reasons
the 1-9/2006 figure does not
include Wärtsilä’s share of
Ovako’s profit after taxes, EUR
18 million, and the capital gain
of EUR 124 million from the sale
of Assa Abloy B shares.
2) For comparability reasons
the 2006 figure does not
include Wärtsilä’s share of
Ovako’s profit after taxes, EUR
67 million, and the capital gain
of EUR 124 million from the sale
of Assa Abloy B shares.
FOR MORE FINANCIAL INFORMATION, PLEASE VISIT WÄRTSILÄ’S INVESTOR SECTION AT WWW.WARTSILA.COM.
DUAL-FUEL
ENGINES
bring multiple benefits to LNGCs
TEXT: JOHN PAGNI
ILLUSTRATION: KLAUS WELP
[ I N-D EPTH ]
50 DF
50 DF
Years of hard work and dedication to a
concept are paying off - the order book
for Wärtsilä 50DF dual-fuel engines for
liquefied natural gas carriers is growing
fast. Originally viewed as a stationary
power unit, development was carried
out at flank speed once its maritime
potential was spotted.
in-depth
[ I N-D EPT H ]
in-depth
the three fuel options. The value attached to these
figures will grow as MARPOL regulations become
tighter.
“The 50DF represents a real low-emission
solution. Switching to gas fuel is a major step
towards environmental soundness,” says Hellén.
“Using gas, CO2 emissions are 20% lower than
using HFO/MDO. The specific CO2 reduction
when the 50DF is running on gas is 30-40% less
than produced by a steam turbine.”
“Reduced levels of CO2 result from both the high
hydrogen/carbon ratio in gas and the high shaft
efficiency achieved in Wärtsilä DF engines. The
lean-burn pre-mixed combustion process results in
very low NOx, while SOx and particulate emissions
are practically eliminated due to the very low pilot
injection fraction (1%), which is the source of
sulphur and ash.”
}
“PREVIOUSLY, liquefied natural gas carriers
(LNGCs) have only been powered by steam
turbines as they can use liquid natural gas (LNG)
to fuel their boilers,” says Göran Hellén, Head of
Exhaust Emission Control at Engine Performance
Technologies R&D, who took part in the dual-fuel
(DF) development project.
When the Wärtsilä 50DF was launched in 2001,
market reaction was cautious. “Steam turbines have
a good safety and maintenance record,” says Markus
Hjerppe, Director, Business Support, Wärtsilä Ship
Power Solutions. “So we had to demonstrate that our
50DF engines would at least be the equal of steam
turbines in some respects while surpassing them in
others. We can now do that.”
The “innovation triggers” that Hjerppe outlines
to potential customers are simple and few. First is
the relative economy of both types of engine. Here
the 50DF leads easily: for steam turbines, propulsion
and electrical power efficiency are 29% and 25%
respectively, the corresponding figures for DF are
43% and 46%.
Manning levels reduced. Another plus,
surprisingly, puts the focus on personnel required
in the engine-room. Steam turbines can fairly be
described as a sunset technology, with only LNGCs
and some naval forces now using them. Hjerppe
is happy to point out that normal engine-room
personnel can supervise the 50DF, though a oneweek training course to familiarize personnel with
the engine control system is recommended. p
}
Much lower emissions. Second, the 50DF’s
emission figures, regardless of whether it is using only
LNG-BOG (see box) or operating in tandem mode
with MDO/HFO, is much more environmentally
sound. NOx, SOx and CO2 emissions are fractions
of those produced by a steam turbine using any of
NORMAL
ENGINEROOM
PERSONNEL
CAN
SUPERVISE
THE
50DF
in-depth
LNGC GLOSSARY
Dual Fuel – as the name implies, this
type of engine can burn two different
fuels: gas and liquid.
N-BOG – natural boil off gas. As LNG
is transported at a temperature of 162ºC, natural evaporation occurs during
transportation. This would normally
be simply burnt and released into the
atmosphere, but both steam turbines
and dual-fuel engines can exploit it as a
fuel with many environmental and cost
benefits.
F-BOG – forced boil off gas. If natural
evaporation is insufficient, the system
automatically heats up an LNG tank,
increasing boil off to make up the
shortfall.
HFO – heavy fuel oil. Also called a
residual fuel, heavy fuel oil is the norm in
large marine engines.
MDO – maritime diesel oil. A distillate
containing less sulphur and ash than
HFO. The use of MDO is more common
in smaller marine engines, and it is
sometimes employed in areas that are
sensitive to pollution.
MGO – marine gas oil. A very light
distillate with very low sulphur and ash
content.
NOx – nitrogen oxide. NOx is emitted
when fuels are burnt.
SOx – sulphur oxide is emitted when
fuels containing sulphur are burnt.
Natural gas has a very low sulphur
content and thus almost zero SOx
emissions.
ST – steam turbine
CO2 – carbon dioxide. A natural product
of combustion formed when carbon
combines with oxygen to produce flames
and heat.
MARPOL 73/78 – the international
convention on MARitime POLlution.
Annexe VI sets limits on SOx and NOx
emissions from ships. Compulsory
globally, but with lower sulphur limits
(1.5%) for the Baltic Sea and North Sea.
in-depth
WÄRTSILÄ 50DF AT SEA
[ I N-DE PTH ]
Precise control and flexibility. The heart
of the DF concept is its control system, and
this is what provides most of its advantages
- and flexibility. The system ensures, for
example, that the quantity of gas flowing into
each cylinder during the air-intake stroke is
exactly the amount required before it is ignited
by the injection of a minute quantity of diesel
fuel.
The system also handles smooth fuel
changeovers from gas to liquid or viceversa. “This is the really beautiful feature of
this engine. Automatically or manually, it
{
demonstrated that a ship can sail while one
engine is being serviced, so the timing of this
can be planned in advance in the most optimal
way,” says Hjerppe.
Substantial savings. The figures relating to
operating costs also require close examination.
Although the DF’s basic spare part cost of
USD 4.0/MWh looks incontestable when
compared to the figure of USD 0.50 for
steam turbines, Hjerppe presents the overall
cost profile. “Since the fuel savings achieved
with DF mean that total operating costs are
so much smaller, ship operators can still make
substantial savings even when maintenance
costs are higher.”
THE ‘ONE-ENGINE-OUT’ FEATURE MEANS
THAT MAINTENANCE STOPPAGES CAN BE
SCHEDULED IN PORT OR AT SEA
can switch from one fuel mode to the other
without affecting either output or speed,” says
Hjerppe.
The preferred four main engine configuration also provides operational flexibility.
If one engine has to be stopped because of
component failure, the other three engines can
generate enough power to allow the vessel to
proceed at its normal speed.
Shorter maintenance intervals not
a problem. One of the most commonly
perceived advantages that steam turbines hold
over DF solutions is that of maintenance. “We
took a close look at the figures to overcome
this hurdle, since maintenance intervals for
DF engines are shorter,” says Hjerppe.
Steam turbines require downtime for boiler
and steam-pipe servicing at 30-month intervals
and have to undergo a complete inspection in
drydock every five years. DF engines require
a predetermined stoppage every 2000 hours,
but the ‘one-engine-out’ feature means that
this can be scheduled in port or at sea. “We’ve
}
On a 2-3 week voyage from the Middle
East to Mexico or Asia, an outward bound
gas-burning ship will use only 2-3% of its
load as fuel (at just USD 2.50 for N-BOG
and USD 7.60 per mm BTU when on
F-BOG). The difference in operating costs
means that compared to a vessel powered by
steam turbines, a 155,000 m³ LNGC using
DF engines can achieve 50% savings on fuel
costs alone. With all engines running on
gas and liquid fuel, savings can reach 60%.
As LNGCs increase in size, the cumulative
savings rise accordingly.
By-products of reduced fuel consumption
mean fewer bunkers and reduced space and
weight, which means more room for extra
cargo. It’s bottom lines like these that are
swiftly persuading LNG shippers that the
future is not as steamy as it once was.
THE 50DF IS BASED ON the Wärtsilä
46 diesel engine with 80% of its
components either identical or closely
related, and the remainder from
development of the smaller Wärtsilä 32DF.
“WE KNOW this engine’s operational
history and that knowledge means we
can sell them with confidence,” says
Markus Hjerppe. “And it also explains the
low number of teething problems during
development.”
THE FIRST WÄRTSILÄ 50DF installations
were in three LNGCs built in France: Gaz
de France Energy with a four 6-cylinder
configuration, then Provalys and Gaselys
using a combination of three 12- and one 6cylinder engines. After handover in 20067, the engines in these three ships have
accumulated more than 50,000 troublefree running hours.
GAZ DE FRANCE ENERGY is a 74,000m³
vessel on the short crossing between
France and Algeria, while Provalys and
her sister ship are the next size up at
155,000m³. Provalys trades between
Egypt and France or Spain while Gaselys
sails between Egypt and either Mexico or
France.
”WE’VE RUN all three at over 95%
gas mode both laden and in ballast,”
says Technical Superintendent Pierre
Baelden of Gazocean, Gaz de France’s
shipping subsidiary. “Gazocean is the
first company in the world to run Wärtsilä
50DFs onboard, so it’s important to
collect information and carry out
evaluations.”
“WE CAN CERTAINLY say the engines
have been reliable – yes! And we have
a Wärtsilä engineer onboard so any
problems can be dealt with very quickly.
But comparisons are simply not possible
until we run in diesel mode and include
the maintenance costs.”
SO FAR A TOTAL OF 212 Wärtsilä
DF engines have been ordered for
56 vessels. Confidence in the new
technology is so high that shipyards have
even placed orders for engines without
having a ship to install them in.
R&D
INNOVATION
Research & Development
commercially available which can provide
both lower fuel consumption and lower
levels of emissions (including emissions of
CO2), and Wärtsilä’s PLS (Pulse Lubrication
System), which cuts engine running costs by
reducing cylinder oil consumption without
compromising piston-running reliability. He
concludes his paper with a survey of the
design improvements being introduced in the
interest of product care.
2-stage TC test system setup at Wärtsilä
engine laboratory (side view)
The driving source for future
ENGINE DEVELOPMENTS
In May 2007, managers and engineers from all over the world
met at the 25th CIMAC World Congress in Vienna. CIMAC
congresses are held every three years to investigate new,
innovative ways of improving the internal combustion engine.
WÄRTSILÄ’S CONTRIBUTION to the
proceedings at CIMAC in Vienna included four
technical papers, two of which won awards. In
Latest Developments of Wärtsilä Low-Speed
Engines To Meet Current and Future Customer
Demands, Klaus Heim, Vice President Global
R&D, Wärtsilä Industrial Operations, focuses on
the application of new technologies. According
to Mr Heim, there is a major momentum in the
development of low-speed marine engines,
fuelled by the application of new technologies
and continuing demand from customers for
this type of engine.
Not only has the introduction of
TEXT: RI C K M c A RT H U R
PH OTOS: WÄ RTSI L Ä
electronically-controlled systems for fuel
injection, valve operation, air starting and
cylinder lubrication opened up completely
new possibilities in engine control, but
electronically-controlled common-rail engines
are already yielding a variety of benefits in
reduced fuel consumption, emissions control,
engine setting, vibration control and the
potential for recovering and exploiting waste
heat.
After reviewing the introduction of RT-flex
technology into the portfolio of Wärtsilä lowspeed engines, Heim focuses on waste heat
recovery (WHR), the only technology currently
WÄRTSILÄ’S 4-STROKE ENGINE
PORTFOLIO. Latest developments in
Wärtsilä 4-stroke engine portfolio, a paper
co-authored by Juha Kytölä, Vice President,
Delivery Centre Vaasa, President of Wärtsilä
Finland and Heim, covers the complete range
of medium-speed engines offered by Wärtsilä
and offers a detailed description of the
innovations introduced in two new designs,
the Wärtsilä 46F and the Wärtsilä Auxpac 20
genset.
After highlighting the ways in which
environmental awareness is guiding power
producers to focus on solution whose impact
on the environment is limited, Wärtsilä’s
studies of alternative bio-based fuel sources
are highlighted. New rules have been set and
continue to be set on allowable emission
levels regarding NOx, SOx , hydrocarbons,
visible smoke and particulates. In the power
plant sector, levels of carbon dioxide (CO2)
are also regulated. p
TURBOGENERATOR OUTPUT, KWE
Power recovered by the turbogenerator set in a
high-efficiency WHR plant on a 12RT-flex96C engine
[ I N N OVATI O N ]
03.2
2
Spray combustion
chamber with the
connected regenerator
assembly
Wärtsilä
research has
shown that
biofuels offer
many positive
aspects.
Commenting on biofuels – fuels where
the carbon cycle is considered to be so short
that their combustion has essentially no
environmental impact regarding CO2 - Kytölä
says that with some differences, Wärtsilä
research has shown that these fuels offer
many positive aspects, and that combustion
can be performed in an optimum way which is
close to the combustion of fossil fuels.
In conclusion, the authors say that common
to all developments is their basis in customer
and market needs in the shipping and power
generation sectors, and that the major focus
is clearly on the environment. As in the
automotive industry, environmental issues
are seen as the dominant driving factor in the
planning of resources and development.
A VERY SOPHISTICATED RESEARCH TOOL.
In Development of a reference experiment
for large diesel-engine combustion system
optimization, Kai Hermann of the Swiss
Federal Institute if Technology (ETH) in
Zurich, Reiner Schulz and German Weisser,
both from Wärtsilä’s 2-stroke R&D centre in
Switzerland, describe a new spray combustion
chamber developed under the HERCULES
research program. This paper won the BP Award
on Health, Safety and the Environment at the 25th
CIMAC World Congress.
Produced as a way of accelerating the
development of advanced combustion concepts
which can be expected to improve the tradeoff
between emissions and fuel consumption, the
spray combustion chamber is a new research tool
for addressing the problem that improvements
require better insight into the fundamental incylinder processes that govern combustion and
emissions formation. While simulation tools are
an obvious requirement, the range of methods
currently available have mostly been developed
and validated for systems other than those
encountered in large 2-stroke marine diesel
engines.
After surveying the test facilities currently
available, the authors developed the specification
for an experimental facility representative of
the actual combustion situation in large marine
BENEFI
[DEVELOPING ADVANCED COMBUSTION CONCEPTS]
A sophisticated tool for
Better insight into the
improving the tradeoff
fundamental processes
between emissions and fuel governing combustion and
consumption.
emissions formation.
1.
2.
An experimental
facility that can be
operated using virtually all
kinds of customary fuels.
3.
20
007
7
Research & Development
TWO-STAGE TURBOCHARGING
AS A WAY OF REDUCING NOX
EMISSIONS
In a paper titled Utilisation of two-stage
turbocharging as an emission reduction
mean on a Wärtsilä 4-stroke mediumspeed diesel engine, Christer Wik and
Björn Hallback, both from Wärtsilä’s 4stroke R&D centre in Finland, describe a
series of investigations into the use of the
so-called Miller cycle – the early closing
of a combustion engine’s inlet valves - to
cool the combustion process and reduce
the formation of nitrogen oxides (NOX)
and carbon dioxide (CO2).
In this work, simulations were
performed at the Helsinki University of
Technology (HUT) on a system with a
single-stage turbocharger before moving
to experimental investigation of a twostage turbocharging system at the
Wärtsilä Engine Laboratory in Vaasa in
October-December 2006. After carrying
out tests on a Wärtsilä 20 engine at both
constant and variable speed, the main
conclusions reached were as follows:
diesel engines, capable of operating at high
pressures and temperatures, and of running on
actual marine fuels. The theoretical basis for
such a facility and its practical implementation
are then described.
SAPPHIRE WINDOWS ALLOW
MONITORING. The spray combustion
chamber test facility consists of two main
components – a regenerator, which heats
the combustion air and acts as a flame
arrester, and the combustion chamber
itself, which is equipped with observation
windows constructed of sapphire to allow the
progress of combustion to be monitored. The
design and construction of the combustion
HERCULES stands for High-Efficiency Engine
R&D on Combustion with Ultra-Low Emissions
for Ships, research sponsored by the European
Commission under its 6th Framework Program.
1. That reductions of up to 50% in NOX
emissions are achievable with extreme
Miller timings in combination with twostage turbocharger technology, and
2. That both full-load brake specific fuel
consumption (BSFC) and thermal
load are improved somewhat by the
increased turbocharger efficiencies
and higher boost pressures.
Remaining challenges included startup behaviour and running at low loads,
with the most efficient solution to
these being a full-flexible variable valve
inlet closure (VIC) system in largebore engines, and a simple VIC system
or other alternatives in small-bore
engines. In conclusion, the authors say
that several years of development work
will be needed on both the engine and
turbocharger technologies to make twostage turbocharging systems ready for
production use.
This paper won the CIMAC Best Paper
Award at the 25th CIMAC World Congress.
TS
chamber, which has an inner diameter of 500
mm corresponding to the bore of a smaller
commercial 2-stroke marine diesel engine
such as the Wärtsilä RT-flex50, allows the
positions of the observation windows to
be changed so that different zones in the
chamber can be monitored.
All the materials used to construct the
combustion chamber were selected with
due regard for their safety and durability.
The spray combustion chamber and
regenerator assembly together weigh some
3000 kilograms and comprise a unit that is
approximately two metres long, one metre
wide and 1.5 metres high.
AN EYE ON THE FUTURE. To validate
Automation display of
Wärtsilä Auxpac 20
the experimental setup, comprehensive
simulations were performed using finite
element (FE) analysis as well as computational
fluid dynamics (CFD). The conclusion reached
was that the design allows conditions in
the spray combustion chamber during fuel
injection to be adjusted over a broad range.
In addition, the layout of the whole system
includes subsystems for conditioning and
leakages handling, while independent control
modules allow standalone operation. The
design of the spray combustion chamber
also takes account the fact that in the future,
investigations into alternative fuels - including
heavy grades that may require significant
heating - is expected.
In conclusion, the authors say that the
new combustion spray chamber is a versatile
tool for investigating a large range of initial
and boundary conditions in both reactive
and non-reactive scenarios, and that it can
also be operated on virtually all kinds of
customary fuels. Although originally conceived
for simulating a 2-stroke configuration,
replacement of the cylinder covers will allow
it to also be used for investigating 4-stroke
engine applications.
TEXT: WÄRTSILÄ
ILLUSTRATION: STEWART GRAY
infographics
[ I N FO G R A P H I C S ]
The groundbreaking Wärtsilä
Senitec fully automatic
bilge and sludge treatment
unit is the most effective
product on the market today.
The resulting sludge to be
offloaded ashore has a very
low residual water content,
while the cleaned water
contains less than 1 ppm of
oil, compared to the current
IMO level of 15 ppm. These
features enable a very short
payback time. And a cleaner
environment.
CLEANER SEAS
WITH WÄRTSILÄ SENITEC
The Wärtsilä Senitec unit uses on the chemical processes of coagulation and flocculation to
bind dispersed solids into larger masses for effective separation.
The emulsified water contains
negatively charged particles which
repel each other and therefore
remain dispersed.
Adding a coagulant neutralizes the
charged particles so they can settle.
A flocculant then binds the
neutralized particles into clumps
(flocs), making it easier to separate
them from the water.
OIL SEPARATION STAGE
1 Oily water from bilge tank
2 Air is added to help oil rise to the surface
and overflow into the internal oil tank
3 Oil is pumped to the sludge tank
4 Outlet to chemical mixing stage
CHEMICAL MIXING STAGE
4 Emulsified water from the oil
separation stage
5 Coagulant dosing
6 Coagulant mixer
7 Flocculant dosing
8 Outlet to flotation stage
FLOTATION AND FILTERING STAGE
8 Inlet from chemical mixing stage
9 Chemically assisted separation
10 Scraper skims solids into collection tank
11 Solids pumped to solids tank
12 Clean water outflow
13 Final filtration
14 Clean water is pumped overboard
IN S IP DESIGN
TEXT: MINNA TAKKUNEN PHOTOS: ARTO WIIKARI
Naval architect Oskar Levander
likes to make waves in his
profession. While innovations may
require one to plumb the depths
of ship design history, a cleaner
future requires new concepts. As
for the shapes, it’s all still in the
hand that draws them.
AND SHAPER
[ PASSI ON ]
passion
passion
Past shipbuilding meets present – in the background
“The Swan of Finland” a frigate built in France in 1902.
WIND PUSHES THE WAVES AGAINST MADISON II, Oskar Levander’s boat,
making it pitch gently. Even at times when he is free to go to sea, his mind
is busy with ways of achieving optimal ship solutions.
“For something to play with in one’s spare time, a hybrid vessel with batteries
might be just fine,” he says, at the wheel of his boat on a mellow autumn
afternoon.
But in Levander’s career in ship design, it’s the mental waves rather than
the physical ones that make up the resistance he encounters.
Pushing the boundaries in concept design, he has to make waves himself. It’s
not an easy task. “The shipbuilding industry is renowned for its conservative
attitude. Potential risks are avoided. Profitability comes first and items like
delivery time matter a lot.”
Levander is General Manager
of the Department of Conceptual
Design, part of Wärtsilä’s Ship
Power business. His portfolio of
ship designs ranges from advanced
ship and machinery concepts
to vessels fuelled by liquefied
natural gas (LNG) - cruise ships,
containerships, icebreakers, tugs.
His speciality is the development
of new propulsion solutions.
When he is not testing and trying
out ideas with his team or shipping
operators, or talking colleagues at
Wärtsilä into the next wave of
maritime thinking, he travels the world speaking about the future of ship
design. Listening to him, you can be sure this is someone who knows what
he is talking about.
“Only when end customers demand concepts that are more
environmentally sound will things change – as happened in the case of paper
transportation.”
Several factors can be adjusted to improve the situation, but LNG, use of
which results in considerably lower emission levels, is what Levander swears
by. “In the near future, when oil consumption exceeds oil production, making
prices soar, serious consideration will have to be given to alternatives.”
The question of whether naval architecture is about art or science has been
forming on my mind, but it’s starting to sound like it’s more about business.
So, which one is it?
“It’s really about all three. But yes, ships also need to be beautifully shaped,”
“LEVANDER IS
CERTAIN THAT
THE HEART OF
EACH SHIP IS
FOUND IN THE
DRAWING.”
he says, smiling.
Functional shapes come from the hand.
Mastery of a finely-balanced alliance between
thinking, pen and paper still represents
the solid foundation for understanding
the nature of design. Notwithstanding all
the useful software, Levander is certain
that the heart of each ship is found in the
drawing.
“And even though reliability is of huge
importance, visual aspects carry a lot of
weight when you are selling and developing
ideas.”
But completely new shapes are hard to
come by. “In the history of ship design,
many ideas have already been proposed. But
just as often, due to a lack of persistence and
narrow-mindedness, the process has ended there, with no
further development. Your imagination should tolerate no
limits on identifying the potential that lies in innovations
- and how technology could be developing.”
At the same time, aesthetic, feasibility and financial
issues means searching for new shapes beyond the maritime
environment. “To expand the boundaries of your own field,
you need to see which way the world is moving, what’s
going on in other industries.”
LIKE FATHER, ALMOST LIKE SON. The history of ship
design pervades Levander’s life, even at home. His father
runs the naval architecture department at Aker Yards, Cruise
& Ferry, and is also Assistant Professor in Ship Design at
the Norwegian University of Science and Technology in
Trondheim.
Levander is one of those lucky individuals who knew at a
very young age the direction in which their ambitions lay.
“Designing ships was quite clearly what I wanted to do.
And even if I had a rather romantic idea of what it would
involve when I was young, the basics are still there.”
He often consults his father, testing new ideas against a
wider-ranging experience. “My mother sometimes sighs
at lunch on Sundays, wondering whether there really isn’t
anything else to talk about,” he says, grinning.
In ship design, it’s very necessary to know where you are
coming from, so you can build a better future without too
many ghost ships for company.
With all the compromises
usually required en route,
the clarity of his ambitions is
impressive. Headwinds do not
blunt his vision.
And for the innovations that
change life as we know and
understand it, we need people
like him, people who never
question the need to work
hard for what they believe in.
Oskar Levander is a force to
be reckoned with.
solution
OPTIMIZING
SPARE PARTS SUPPLY TO MEET MARKET DEMAND
TEXT: MARJA BERISA
Wärtsilä warehouses
offer a full
range of parts, 24/7, to support our global customer
network including wear and tear items such as filters
and gaskets, but their assortment also includes
selected major components such as cylinder liners.
The product range held in SPC’s covers both fast
and medium moving parts and a range of parts for
safety and strategic purposes. Together, the stock
locations make up a comprehensive network whose
core locations coincide with the ‘hot spots’ of our
customer businesses.
Main stock warehouses are situated in our seven
PC locations: The Netherlands, Finland, Sweden,
Norway, Italy, and France. Our Wärtsilä Switzerland
2-stroke parts are stored in Moerdijk and Zwolle (The
Netherlands).
Wärtsilä SPCs are currently located in Busan
(Korea), Singapore, Dubai (UAE), Fort Lauderdale
and Houston (USA).
The newest facilities – those in Fort Lauderdale,
Houston, Busan and Singapore – are making a
particular contribution to the punctuality of Wärtsilä’s
spare parts service deliveries. Customers can now
[ SOLUTI ON ]
Wärtsilä Services is
refining its spare parts
logistics. Thanks to a
closely-knit network of
five Spare Parts Centres
(SPC) and seven
Product Company (PC)
main stock warehouse
locations, Wärtsilä
customers are offered
rapid delivery of wear
parts and other items.
p
PICTURES: JOOHYUNG LEE
p
[ SOLUTI ON ]
solution
“ACTIVATION OF
A FOREIGN TRADE
ZONE IN HOUSTON
IS AN IMPORTANT
MILESTONE ON
A PATH WE
EMBARKED ON
SEVERAL YEARS
AGO.”
expect a higher availability of spares locally, shorter delivery times, lower
transportation costs, increased flexibility, the option of being able to check
spare parts availability on-line, and in some cases simplified customs
procedures.
Resources dedicated to markets in Asia.
“In the past, our 2-stroke storage function was concentrated in the Zwolle
and Moerdijk warehouses in The Netherlands. However, as Asia is becoming
an increasingly active market for us, Wärtsilä Services decided to allocate
additional resources to this region, especially to Singapore and Busan,”
says Jeff van der Meulen, General Manager Procurement & Logistics of
Wärtsilä 2-stroke Engines.
A study carried out in 2006 revealed that the focus of demand for 2-stroke
spare parts had changed. In terms of ship-to addresses for 2-stroke parts,
about 45% of the total volume is despatched to European ports. Another
45% is shipped to Asian ports and the remainder is divided between
locations in the Middle East and the western hemisphere.
“Also, an ever-increasing number of 2-stroke components are being
produced in Asia, in Japan, Korea and China. All these findings support
a reassessment of the roles played by each of our spare parts centres,” says
van der Meulen.
Capacity added across the board. A redistribution of 2-stroke stock was
initiated in late 2006. As a result, storage space and product assortments
at Singapore, Houston and Busan are being extended, while operations at
the other hubs and spare parts centres continue essentially unchanged.
The roles played by the Busan and Singapore spare parts centres are
particularly critical. The Singapore facility caters to the needs of both 2stroke and 4-stroke engine customers, and the brand new facility at Busan
supports 2-stroke operations in Wärtsilä Korea, one of the most important
network companies involved in the servicing of 2-stroke engines.
“The new warehouse is run in cooperation with Tenam, a third-party
logistics provider and Wärtsilä partner. Operations commenced in January
and most of the parts stored in the 2000 square-metre spare parts centre
are produced in Korea, China and Japan. The assortment located here
will be extended to enable more complete shipments from the centre,”
says van der Meulen.
Busan Spare Parts Centre is equipped with a 10-ton crane, storage racks
and pallet floor space. Five people are employed there, including two
quality engineers. When needed, extra staffing is provided by Tenam.
4-stroke stocks have highly increased too in Fort Lauderdale and
Singapore SPC’s hence increasing order lines shipped directly from these
locations. With 8 times more parts shipped to Singapore SPC than 15
months ago, Wärtsilä Italy 4-stroke engines get a service level never
reached before. Wärtsilä greatly improves fast response to market demand,
especially for emergency calls. For example, the lean organization between
Wärtsilä North America, Wärtsilä SPC in Singapore and Wärtsilä China
made it possible to quickly provide all the needed parts to an American
cruise vessel calling in at Hong Kong harbour for a damaged main
engine.
Photo caption...
Free Trade Zones cut costs and red tape. The Spare Parts Centres
locations maximizes both accuracy in delivery and parts availability.
Another advantage enjoyed by the spare parts centres in Busan, Fort
Lauderdale, Houston, Moerdijk and Singapore is their location within
Foreign Trade Zones.
“The activation of a Foreign Trade Zone in Houston is an important
milestone on a path we embarked on several years ago. Our SPC’s are
now positioned to provide a level of service that meets the needs and
expectations of our customers throughout the Americas,” said Donal
Lynch, Vice President, Wärtsilä Spare Parts Process.
“Under an operating Free Trade Zone, spare parts stored at Ft.
Lauderdale are considered to be ‘outside’ the U.S. for customs purposes,
which means no duty is charged on the spares that are stored there,” says
p
solution
Jason Dooley, Americas SPC Manager.
“This allows the spare parts centre to ship items directly
to foreign flag vessels or to customers located outside the
United States, free of any US-customs duties. Only those
parts that are shipped to domestic US locations are subject
to duty. ”Moreover, as the operator of a Foreign Trade
Zone, Wärtsilä can accept imported items and ship goods
out around the clock, even when local customs offices are
closed.
WÄRTSILÄ’S
PORTFOLIO OF
SPARE PARTS
COVERS 150,000
ITEMS AND
SUPPORTS A HUGE
RANGE OF DESIGNS
AND ENGINES.
Optimized assortments result in quick service. The
portfolio of spare parts offered by Wärtsilä covers 150,000
spare parts and supports a huge number of designs and
engines. Spare parts range from tiny components to items
weighing several tons.
At Zwolle, some 60,000 spare parts are available for 2and 4-stroke engines. With 60 employees and 18,000 square
metres of storage space, the Zwolle facility is currently one
of Wärtsilä’s main European depots.
At Moerdijk, in facilities that cover 6500 square metres,
the selection of 2-stroke spares includes 1000 parts. The
range available in Houston is similar, while 600 different
parts can be sourced from Singapore. Starting in the third
quarter of 2007, the range of components located in
Singapore will be analyzed and upgraded.
In Winterthur, Wärtsilä maintains a selection of 1000
parts primarily used by the company’s specialist workshop
in producing components for customers making Wärtsilä
products under licence. The Dubai hub carries about 200
different spares for Wärtsilä’s 2-stroke customers.
“The 2-stroke and 4-stroke range of spare parts maintained
at the centres helps us to expand availability within the
regions of the world as well as increasing efficiency and
reducing delivery times,” says Lynch. “Wärtsilä’s global
service organization can now use these new arrangements
to serve our customers even better.”
Twentyfour7.
in detail
A COG
IN THE
MACHINE
CONTENTS
63
3
56 ENERGY FOR PAKISTAN 58 ENSURING GRID STABILITY IN COLORADO 60 SECURE AND EFFICIENT
61 RE-POWERING PISTICCI CAMPAGNA 63 AN IMPORTANT COG 65 SAFE, ENHANCED FPSO SOLUTIONS
k 67 IMPROVING THE INTERNAL COMBUSTION ENGINE AND REDUCING EMISSIONS
[ POWERING PAKISTAN ]
[ IN DETAIL ENERGY ]
Twentyfour7.
POWERING PAKISTAN
T E X T: S A J I D S H A I K H | P H O T O S : W Ä R T S I L Ä
to a nation’s economy as it is the engine that
drives industrial growth. In Pakistan, energy will play a central role
in the nation’s progress and development into a important player
in the world economy.
ENERGY IS CRUCIAL
W
ärtsilä, a crucial partner and key player in Pakistan’s
power generation sector since 1994, is assisting
the country on this journey. Wärtsilä has earned
the reputation of being a strong and reliable brand.
“Wärtsilä offers and delivers a one-stop service. We install,
operate and manage power plants. We have been in Pakistan for
23 years and can claim unique expertise,” says Lars-Åke Kjell,
Business Development Manager, Wärtsilä Power Plants.
IPPs a success
Pakistan’s total installed electricity-generation capacity
totals some 19,478 MW, of which 30% is produced by
Independent Power Producers (IPPs). When Pakistan
achieved independence in 1947, power generation facilities
were scattered around the country. In the 1950s, a national
utility company was formed with a monopoly in power
generation, transmission and distribution. Demand
outstripped supply and it became an economic imperative
to involve the private sector in power generation. In 1994,
the government introduced a private power policy.
The result was that 14 projects - IPPs - with a total
capacity of 3787 MW were initiated. Of these 14, five were
implemented using reciprocating generating sets running
on heavy fuel oil (HFO). Wärtsilä was chosen as the EPC
(engineering, procurement and construction) contractor by
Kohinoor Energy Ltd (126 MW), Gul Ahmed Energy Ltd.
(135 MW) and Tapal Energy Ltd (120 MW).
“Wärtsilä delivered equipment to three of the 14 IPPs. All
three are success stories and have paid rich dividends to all the
stakeholders. Wärtsilä has also delivered the equipment for
Power plants
employing combinedcycle technology
optimize, reuse and
recover energy and
heat that would
otherwise be simply
thrown away.
03.2007.
private captive power plant projects in the cement,
paper and textile industries,” says Rolf Andersson,
Managing Director of Wärtsilä Pakistan.
developed a combined-cycle concept that uses
its diesel (Wärtsilä 46) and gas engines (Wärtsilä
50DF).
Combined-cycle power plants
Since 1997, however, no new IPPs have been
established. In 2002, the Pakistan government
announced a new private power policy to
encourage the establishment of more IPPs and
promote projects exploiting indigenous resources
such as natural gas, hydropower and coal. As oil
imports were draining foreign exchange reserves,
the government withdrew incentives for oil-based
projects. Geological surveys revealed that the
country’s natural gas reserves would be unable to
guarantee a supply of fuel for 25 years. The need
for a back up solution became acute.
Wärtsilä proposed a solution. Its top-notch
product concept – combined-cycle power plants –
offered Pakistan savings totalling billions of dollars
by reducing the country’s reliance on imported oil
while at the same time being more environmentally
friendly. Combined-cycle technology optimizes,
reuses and recovers energy and heat that would
otherwise be simply thrown away. This is the
key feature that makes the combined-concept
more attractive to both power producers and the
government.
“Combined cycle installations are fuel efficient
and therefore the most preferred technology. A
combined-cycle power plant can be designed using
various technologies. But basically it has one or
several prime movers combined with one or more
steam-turbine generators,” says Kjell.
Gas turbines, reciprocating engines or boilers
can be chosen as prime movers. Based on the
conditions prevailing in Pakistan, Wärtsilä has
The most competitive solution
Diesel combined-cycle plants have been successfully
introduced and accepted by investors as an efficient
solution for electricity production. “Kohinoor
Energy Ltd, one of the IPPs established under
the 1994 policy, has a combined-cycle installation
supplied by Wärtsilä. The results achieved during
their 10 years of operation are excellent and they
are considering expanding their facility,” says
Andersson.
“WE ALSO WANTED
THE HIGHEST
POSSIBLE POWER
PLANT EFFICIENCY
DURING A
LIFECYCLE
OF 25 YEARS.”
With the current situation regarding availability
of gas and liquid fuel, Wärtsilä’s HFO-operated
engines are the most competitive solution. “We
are the preferred brand and will be able to achieve
a high market share in both the IPP and captive
power markets. We can deliver two to three 200
MW power plant projects per year for the IPP
market.” says Kjell.
New combined-cycle plant ordered
In June 2007, Wärtsilä received an order to supply
and install a 160 MW power plant at the Attock
Refinery Ltd site near Rawalpindi. This order
includes nine Wärtsilä 18V46 generating sets with
heat recovery boilers, one 11.6 MWe steam turbine
plant and a 132 kV switchyard. The plant will run
on HFO and will be connected to the national
grid. With the combined-cycle configuration at
100% load, a net electrical efficiency of 45% can
be achieved. Commercial operation is expected
to begin in the third quarter of 2008.
Commenting on the order, Adil Khattak, CEO
of Attock Gen Ltd, said “This new power plant
will enable smooth refinery operations as sales of
HFO will be assured. It will provide relief to the
common man and boost the economy of energystarved Pakistan. We also wanted the highest
possible power plant efficiency during a lifecycle
of 25 years, which we believe Wärtsilä’s combinedcycle concept will be able to provide.”
With this latest order, Wärtsilä will have supplied
Pakistan with power plants producing more
than 1000 MW of electricity. “Our strong local
presence and successful track record in Pakistan
combined with efficiency and flexibility offered
by our solution were among the reasons we were
awarded this contract,” said Christoph Vitzthum,
Group Vice President, Wärtsilä Power Plants.
Future growth
In economic terms, Pakistan is well positioned
with industrial growth firing on all cylinders.
The success of the new privatization programme
has raised funds totalling more than EUR 700
million. But the surge in economic activity has
also fuelled increased demand for energy, raising
fears of a shortfall. By 2010, according to Pakistan’s
federal ministry of power and water, demand
for electricity is expected to exceed supply by
approximately 5500 MW.
Earlier this year, the World Bank agreed to
increase its annual lending to Pakistan to EUR 2.15
billion for the next three years. Recent information
obtained from government sources indicates
that on top of its existing lending agreements,
the World Bank has agreed to provide EUR 287
million for power projects in Pakistan.
With its strong presence in Pakistan and wide
experience of the sector, Wärtsilä can be expected
to play an important role in this emerging and
optimistic scenario. “The biggest growth over the
next 5-7 years will be in the private power sector,”
says Andersson. “I see this as a real opportunity,
and Wärtsilä could easily deliver some 2000 MW
of generating capacity to Pakistan over that period.
There will also be growth of 70–100 MW per year
in the captive power segment.”
[ PLAINS END ]
Twentyfour7.
PLAINS END – THE WORLD’S LARGEST
NATURAL GAS-FUELLED POWER PLANT
USING RECIPROCATING ENGINES
T E X T: D E N N I S F I N N | P H O T O S : W Ä R T S I L Ä
EVEN THOUGH
SITE CONDITIONS
at Plains End,
altitude 1845 m
(6150 feet) above
sea level, are
severe – the
design ambient
air temperature
is 36ºC - the
conditions do
not result in any
loss of output
from the plant’s
engines.
Ready reserve power
Wärtsilä technology is also able to provide “grid black
start” capability at very low cost compared to systems
employing gas turbines. This is achieved by providing a
very small amount of diesel-driven generating capacity
(250kW) that can supply the power required to start
one Wärtsilä genset in the case of a transmission system
blackout. The two Plains End plants can then feed their
output into the grid to supply start-up power for other
generators of more traditional design.
The standard benefit of start-up taking less than
ten minutes provides Xcel Energy with ready reserve
Benefits of Wärtsilä technology
power. The additional benefits of spinning reserve,
Plains End I helped introduce Wärtsilä technology up/down regulation and black start capability are also
into the US market to satisfy a need for peaking considered to be ancillary services, something required by
power resources able to supply
all transmission grids to maintain
significant ancillary services
system stability. The need for such
THE BENEFITS
benefits. During operation of the
services has become much clearer
first block of 111 MW generating
since Plains End I was sold. In
OFFERED ARE
capacity, other important benefits
some US grid systems, they can
HIGH EFFICIENCY
provided by Wärtsilä technology
now generate income for plants
were identified and these helped
run by independent power
AT MINIMUM LOAD
justify procurement of the second
producers through contracts with
block totalling 116 MW.
the host utility.
AND HIGH LEVELS
Recognized by both the owner
OF STARTING
and the utility, these benefits
High levels of reliability
include the ability to operate
The level of reliability provided
RELIABILITY.
efficiently at minimum plant
by a multi-unit installation is also
output, which allows Wärtsilä customers the opportunity high. It can be said with 90% confidence that the plant
to sell ‘spinning reserve’. This is the difference between will deliver 90% of its nominal output in ten minutes. In
the maximum rated plant output and the minimum a 100 MW plant with just one gas turbine, output will
plant loading with all gensets in operation at which normally be 100% after 15 minutes, but in 5-10% of
the plant is capable of responding to AGC signals sent starts output will be zero. With gas-driven reciprocating
by the grid.
engines, the power level available will almost always be
Another benefit recognized by Xcel Energy, the local 80% or more.
utility that operates its own high voltage transmission
Another benefit provided by the Wärtsilä technology
system in the Colorado region, is Plains End’s ability employed in both Plains End plants is the very low rate at
to provide rapid up and down regulation. The utility’s which process water is used – supplies of water have become
expectations routinely exceed load changes of one MW/ both increasingly expensive and difficult to obtain in the
minute/genset or 20 MW/minute plant rate from arid western regions of the United States. The demands
minimum load to full load and back again.
made by gas turbine technology are much higher.
O
wned by Cogentrix and located near Denver,
Colorado in the USA, Plains End I consists
of 20 Wärtsilä 18V34SG gensets and started
commercial operation in May 2002.
Recently, Cogentrix purchased an additional 14
Wärtsilä 20V34SG gensets, extending the existing site
as Plains End II. When the new generating equipment
is up and running, the site will generate a total of 227
MW for the grid and regain its ranking as the largest
natural gas-fuelled reciprocating engine power plant in
the world.
03.2007.
The Plains End I gas-fuelled
111 MW power plant started
commercial operation in
May 2007
Operations at Plains End I
As an IPP (independent power producer), Cogentrix has a
long-term contract to provide Xcel Energy with electricity
and ancillary services. This is a common arrangement as
it provides the utility - or the grid – with access to hard
assets that can generate baseload, intermediate and peaking
power and ancillary services without the utility having to
invest capital in such assets.
For most of the time, Plains End now operates in
non-spinning reserve mode. Should the need arise, it
can reach full output in less than ten minutes from a
warm start.
Balancing wind power
The second mode of operation is spinning reserve. When
operating in spinning reserve mode the plant is in operation
at minimum load. Automatic signals from the grid dispatch
centre will increase the plant output if the grid requires
additional electricity or if system demand is falling and the
plant is operating above its minimum load plant output
ramps down until the minimum load is reached.
Annual operation time at Plains End I totals 500-1500
hours. Both operating time and dispatch frequency are
heavily dependent on the balancing requirements made
by the Xcel Energy system, which includes a lot of wind
power. The normal fluctuations that result from wind
power generation systems are balanced by the Plains
End I regulation reserve service. Xcel’s energy generation
mix also includes large coal plants, and Plains End I also
provides spinning and non-spinning reserve to cover any
disturbances in this source of supply.
In February 2006, Xcel Energy suffered a major
blackout because capacity in the natural gas system was
insufficient. If such a problem should arise in the future,
Xcel knows that both Plains End plants can stay on line
significantly longer than other plants supplying the grid
with power. This is because the Wärtsilä technology in
the Plains End gensets needs only a very low fuel-gas
pressure to operate (75 PSIG).
Operational experience
During its first two years, Plains End operated as an
intermediate load plant, but has since moved to become a
non-spinning and spinning reserve facility that produces
mainly ancillary services. Even though the plant is usually
operating in non-spinning reserve, its control systems
have been tuned for the fast starting modes.
Efficiency measured at the generator terminals is
44.4%. The plant’s net efficiency has been some 43%
at full load and about 40% at half load.
Revenue from two markets
In 2003, monthly availability at Plains End I was
between 99.4% and 99.9%, demonstrating the plant’s
high level of reliability. In 2004, the mode of operation
was changed to providing ancillary services. Since this
change, starting reliability and efficiency in part-load
operation have been the main performance criteria.
The main benefits provided by reciprocating internal
combustion engines are high efficiency at minimum load
with all gensets in operation and high levels of starting
reliability. Because Wärtsilä gas-engine power plants offer
high levels of efficiency at part load, our customers in
US energy markets can make profit while also selling
into the spinning reserve markets. Revenue from both
the energy market and the ancillary service market can
thus be generated simultaneously.
Should a transmission
system blackout occur,
the two Plains End plants
can supply start-up power
for generators of more
traditional design.
[ LINATE AIRPORT – SECURE AND EFFICIENT ]
MODERN TERMINAL
at airports
place high demands
on supplies of both
electrical power and
thermal energy. But
airline schedules and
the critical nature of
an airport’s health,
safety and operational
regulations make
securing both of these,
especially the power
supply, of the utmost
importance - regardless
of external factors and
conditions.
BUILDINGS
Hot water produced by
the Linate CHP plant is
used for district heating
and to provide cooling in
air-conditioning systems.
Twentyfour7.
TRIGENERATION
PLANT TAKES OFF
AT MILAN’S LINATE
AIRPORT
T E X T: J O H N PA G N I | P H O T O : W Ä R T S I L Ä
T
rigeneration plants supply electricity,
heating and cooling to buildings,
equipment and external lighting from a
single captive plant located on site, providing
significant operational and efficiency advantages
and rendering separate individual units
unnecessary.
So when the Wärtsilä and EuroPower
consortium started up a 24 MW combined
heat and power (CHP) plant at Milan’s Linate
Airport last June, sky-high expectations were met
when these multiple requirements were satisfied
without a hitch.
The customer for the turnkey plant was Malpensa
Energia, jointly owned by SEA Aeroporti Milano,
the company that manages both of Milan’s
airports, and AEM Milano, a utility company.
Wärtsilä supplied three Wärtsilä 20V34SG
engines with exhaust gas boilers and engine
cooling modules for heat recovery, the SCR
(selective catalytic reduction) system which
reduces NOx emissions, and the plant’s engine
cooling radiators.
“A trick of thermodynamics”
The plant supplies a baseload, but as it produces
both heat and electricity, its flexible design
allows adjustment to meet seasonal variations
in demand, minimizing fuel costs. Heat output
can be as low as 72 MWth in summer or as high
as 82 MWth in winter. The maximum electrical
output is 24 MWe, and any surplus can be fed
to Italy’s national grid.
The thermal output of the plant provides
hot water at 125°C which is initially used for
heating the terminal buildings, hangars and
other facilities. Absorption chillers employing
water and lithium bromide absorbent use the
hot water energy to chill water to just 7°C for
use in the terminal’s air-conditioning system.
Comprehensive climate control is a major benefit
of trigeneration.
“Thanks to this technology, and a trick of
thermodynamics, we can generate chilled
water from hot water. The principle involves
evaporating water under a vacuum. Even though
this technology is common, it’s a great way of
using as much residual heat as possible,” says
Thomas Stenhede, CHP/DE Applications
Manager, Wärtsilä Power Plants.
Hot water is actually delivered at two
temperatures, 70° and 125°C. The lower level
is used to supply district heating to the airport
complex and a nearby village while the higher
is employed in the absorption chillers that
provide cooling for the airport’s air conditioning
systems.
Flexible solutions
As the grid and the power plant’s generating sets
are interconnected, the two energy sources run in
parallel and either source can act as an emergency
standby, backing up the other to maintain airport
services in the event of a supply outage. The term
used by Stenhede to describe this is “improved
redundancy”.
One important way of reducing running costs
in Linate’s trigeneration plant is the two high
towers which look like chimney stacks. They
are in fact tanks for storing hot water. “Using
hot water from the tanks means one engine can
be shut down at night during periods of low
demand, saving energy,” says Stenhede.
While the Linate project is similar in many
respects to an installation at Madrid’s Barajas
International Airport, there are some differences.
At Barajas, the hot water is used to run chillers
located within the trigeneration unit before
chilled liquid is piped for use in air conditioning
systems. At Linate, hot water is piped to buildings
and the chilling process is carried out there. “This
demonstrates the flexibility of this technological
solution,” says Stenhede.
03.2007.
[ RE-POWERING PISTICCI ]
The ValBasento plant
was the first in Italy
to employ mediumspeed Wärtsilä
engines running on
natural gas.
THE GROWING POWER
OF PISTICCI CAMPAGNA
T E X T: J O H N PA G N I | P H O T O : W Ä R T S I L Ä
in Italy that has already proven one concept
is about to be extended, demonstrating with 50.000 running
hours how Wärtsilä is able to produce the right results.
A POWER PLANT
I
n the 1990s, it was announced that Wärtsilä would re-power
the thermal facility at ValBasento Technological Park in
Pisticci Campagna in Italy. The park was established by
Basilicata’s regional council to encourage development in local
industries. On-site services such as waste management and
power were provided. Resident firms set up a consortium that
runs the park and also owns and operates the original thermal
combined heat and power (CHP) station.
After a decision was made to raise the plant’s output,
Wärtsilä won the contract with an innovative tender. After
some changes, the final design configuration consisted of four
Wärtsilä 18V34SGs gas engines producing some 22 MW of
electricity and full heat recovery to pre-heat feedwater for the
existing steam turbine plant.
The engines burn natural gas as the area is home to one of
Italy’s few commercial deposits of hydrocarbons. It was the
first plant in Italy to employ medium-speed Wärtsilä engines
running on this fuel.
Since start-up in October 1999, the plant at ValBasento has
proved that gas engines can be harnessed to steam turbines to
produce more electricity than either technology could achieve
alone - a fine example of true teamwork in which the final result
is more than the sum of the parts.
A radical approach
“It was a challenging thermal integration process project and
now an important reference,” says Giancarlo Sioli, Business
Development Manager for Wärtsilä in Italy. Wärtsilä engineers
had chosen the radical concept of re-powering the existing
unit by employing engines fuelled by natural gas, and using
the 400°C exhaust gases to heat water for the existing steam
turbine.
Output from the original plant running just two steam
turbines totalled 20 MW of electricity plus process steam for
the industrial park. The average electrical efficiency achieved by
this process was 31% with an overall plant efficiency of 52%.
After the gas engines were connected, one of the steam
turbines was shut down. The revised normal operating load
then totalled some 30 MW, with 16 MW coming from the
new engines, 14 MW generated by the steam turbine and
process steam being provided as before. The electrical-thermal
production split changed from 45/55 to 50/50. In the new
setup, the plant’s electrical efficiency rose to 37% and overall
plant efficiency increased to 58%.
Recycling of the exhaust and cooling circuit heat to preheat feedwater and condensate in the steam plant was achieved
by simply placing economizers on the exhaust side of the gas
engines and piping the collected heat back to the steam turbine
section.
Reduced fuel input or more power
This arrangement reduces the amount of steam that would
normally be used to pre-heat feedwater in the turbine plant.
This “extra” steam can then be used to generate additional
p
[ RE-POWERING PISTICCI ]
Twentyfour7.
output from the steam turbine or made available to customers
who are purchasing process steam. The benefits are a reduction
in the amount of fuel used to heat the boiler or more power
generated by the turbine section of the plant.
“It’s a really nice process because the additional power
generated by the steam turbine means that in terms of efficiency,
almost 50% of the energy in the fuel used in the gas engines can
be converted into electricity. This is quite a remarkable figure
for a small gas-engine plant with a simple process connection
to a steam turbine,” says Thomas Hägglund, General
Manager, Wärtsilä Gas Power Plants, a strong proponent of
the concept.
Higher electrical efficiency
“Achieving such efficiency in a gas turbine combined-cycle
power station normally requires a total capacity of at least
100 MW, it simply has not been reached in smaller facilities
like the one at Pisticci before,” says Hägglund.
“And we only put in four gas engines with economizers.
Connecting the two systems together allows high-pressure hot
water to be exchanged for steam, and in this way the electrical
efficiency is higher than if a small steam turbine was located after
the gas engines. It’s very advanced technology and unbeatable
from the efficiency angle.”
An interesting question is why more systems of this type do
not yet exist. One hurdle is convincing plant owners of the
benefits of combining different technologies.
Wärtsilä has had its own personnel on-site in Pisticci since
start-up, supervising both running and maintenance work.
The concept has already proved itself - the milestone of 50,000
trouble-free running hours will be reached before the end of
this year.
Flexibility in operation
Not only is this solution reliable, it is also flexible: to optimize
load handling, the gas engines can be run individually or
together with or without the steam plant - and vice versa. The
Pisticci facility can adjust output to match current electricity
demand from daytime peaks to lower night-time levels.
A plant consisting of a steam turbine-gas engine combination
gives operators the flexibility to operate the turbine at as high a
load as possible, maximizing that section’s efficiency. Because gas
engines have high part-load efficiency, they can either be run at
part load or one or more can be disconnected as demand falls.
The output from gas engines can also be ramped up quickly
when demand increases. Not only does this result in an excellent
part load performance, it highlights the plant’s superb load
flexibility.
“Right now the plant in Pisticci is only supplying its industrial
park customers with some 20 MW, 50% from the steam turbine
and 50% from the gas engines,” says Sioli. “But the investment
was paid back years ago.”
Three different generating technologies
Recently, Sorgenia – Italy’s third-largest energy company –
became a shareholder in ValBasento Technological Park.
Sorgenia, together with the plant’s owners and the customer
consortium, is extending the Pisticci plant once more and
installing three Wärtsilä 18V32 LBF (liquid biofuel) engines
producing 24 MW, raising total output to 76 MW. As before, full
heat recovery to the existing steam turbine will be incorporated.
The new engines are designed to run on vegetable oils that
comply with Wärtsilä’s technical specifications.
“After start-up in spring 2008, this extension will give both
the plant and its customers full fuel flexibility. It will be able
to generate power using natural gas or vegetable oil or both
together – it’s a kind of dual-fuel power plant!” says Marco
Golinelli, Vice President, Wärtsilä Power Plants in Italy.
“The plant in Pistacci was completed on schedule and
successfully met our customer’s stringent requirements.
Everybody should be pleased about what we’ve done and are
doing in southern Italy.”
Next year, Pisticci Campagna will have the world’s only CHP
station operating three different generating technologies. The
lower levels of emissions generated will mirror the technological
advances made.
TURBINE
PROCESS
STEAM
BOILER
CONDENSER
CONDENSATE HEATING
AIR PREHEATER
FEEDWATER HEATING
ENGINE EXHAUST
FUEL
4 X 18V34SG
ENGINE COOLING CIRCUIT
Process diagram
for gas engines
connected to
steam turbine.
[ IN DETAIL MARINE ]
03.2007.
[ AN IMPORTANT COG ]
NORMAND SEVEN,
soon
to be working Brazilian
waters, was named
Ship of the Year 2007
in Norway. For the Ulstein
shipyard, the award
was the second in a row.
Wärtsilä was part of
the vast machine-like
organization that
created this vessel.
A COG
IN THE
MACHINE
Offshore construction
vessels are used to
perform installation
work on the seabed.
T E X T: R I S T O PA K A R I N E N | P H O T O : W ÄRTSILÄ
T
he prestigious Ship of the Year
award was launched in 1997 by the
Norwegian magazine Skipsrevyen, one
of Scandinavia’s largest maritime magazines. The
final choice is made by a jury on the basis of
readers’ nominations. The jury consists of three
Norwegian experts: Asle B Strønen, publisher
and editor of the magazine, Rolf Sæther, former
managing director of the Norwegian Shipowners’
Association, and Birger Skår, director of sales and
marketing for the Norwegian Shipbuilders.
The 2007 winner was Normand Seven, a large,
advanced offshore construction vessel able to
perform every imaginable type of installation
work on the seabed. One of the largest vessels
ever built by Ulstein Verft, Normand Seven has
a length of 130 metres and a beam of 28 metres.
The ship’s bridge alone covers an area of 400
square metres.
Normand Seven is being set up as a specialist
ship for laying flexible pipes off the coast of
Brazil. Capable of operating in water of depth up
to 2000 metres, she has a top tension capability of
300 tons and can store up to 10 reels of flexible
pipe on her main deck.
Brazilian waters waiting
The vessel’s name refers to the fact that it has
been chartered to Subsea 7, one of the world’s
leading sub-sea engineering and construction
companies, for the next eight years. For the
first 18 months, the vessel will operate on the
Brazilian continental shelf, installing flexible
pipe (risers and flow lines) for the prestigious
Petrobras Roncadore project, with Solstad
Offshore handling the vessel’s marine operations
including freight, crewing and technical
management.
Wärtsilä can take its share of the credit,
having supplied the shipyard with a complete
power system including six main diesel engines,
generators, medium voltage switchgear and
power drives for the six thrusters. From the
Wärtsilä viewpoint, quite a chain: Wärtsilä–
Ulstein-Solstad-Subsea 7- Petrobras.
“The shipyard that built the ship was Ulstein
Verft, but the end customer for the ship was
Solstad Shipping. We have worked closely with
both of them for years. We always try to get as
close to shipowners as we can, because they are
the ones who will actually operate the ship for all
those years to come,” says Ove H. Wilhelmsen,
General Sales Manager, Wärtsilä Norway.
Lifecycle costs count
“Even if the shipyard’s focus is on the cost of
the package here and now, shipowners are more
concerned with a ship’s lifecycle costs,” says
Wilhelmsen.
The production chain may be long, but it is
pretty straightforward. In the case of Normand
Seven, the requirement was a construction vessel
with plenty of deck space. Operators usually ask
shipowners to offer them a vessel they can charter
for five or ten years to fill each need. When
delivery times are lengthy and the investments are
large, relationships tend to become longstanding
once a good partner has been found. Normand
Seven, for example, is the sixteenth ship built by
Ulstein for Solstad.
Before, not after sales
“We have three different customers, but in the
long run we have to work with the owners, and
that is why it is essential to have a good after
sales organization to serve them and meet their
p
[ AN IMPORTANT COG ]
Twentyfour7.
NORMAND SEVEN
HAS A LENGTH
OF 130 METRES, A
BEAM OF 28 METRES,
AND IS ONE OF THE
LARGEST VESSELS
EVER BUILT BY
ULSTEIN VERFT.
needs once a vessel is in operation. Instead of
calling it after sales we should call it before
sales, it is so very important in the long run,”
says Wilhelmsen.
Ship designers have considerable power in
the market, he says. Therefore Wärtsilä puts the
emphasis on developing solutions which are
compact, environmentally sound and increase
the performance of the vessel.
Complete packages on offer
Wärtsilä’s global reach means it is close to each
link in the chain of customers, regardless of
whether the ship is actually built in Norway or
Singapore, and whether it will be operating in
the North Sea or off the coast of Brazil.
Wärtsilä’s strategy is to offer customers
complete power and automation packages.
“Years ago, we only sold engines, then we
added propulsion and with the addition of
automation expertise we can now quote for
complete packages. This means that shipyards
do not have to worry about the interfaces, or
deal with different suppliers arguing about how
the whole thing should be assembled. Further
the shipowner has one stop shop in after sales
support,” says Wilhelmsen.
“Of course, when you are dealing with
either a large scope or wide responsibility, the
consequences of failure are bigger. On the other
hand, having everything in our own hands
means we can work on all of the components,
testing and making sure that all systems are
fully operational, reducing the risk.”
Decisions on quality and cost
And customers are always right, even when they
are not. That can of course create problems, but
not in this case. “For example, it is the yard who
selects the generator suppliers. If they decide to
settle on a low-cost alternative, we could run
into trouble,” says Wilhelmsen. “Even if we say
that the chosen supplier’s quality is not up to
par, we still have to handle the problem.”
For Normand Seven, Wärtsilä delivered four
6-cylinder in-line Wärtsilä 32 diesel engines and
two 8-cylinder in-line Wärtsilä 32 common-rail
engines, with generators, main medium-voltage
switchboards, transformers and power drives
including frequency converters and electrical
motors for two bow-tunnel thrusters (1500
kW), one forward azimuth thruster (2000
kW), one after-tunnel thruster (1500 kW)
and two main propulsion thrusters (5000 kW
each).
A unique system for each vessel
“From our point of view, each engine is based
on our reliable technology,” says Wilhelmsen.
“But each whole system we deliver for each
vessel is indeed unique.”
For Normand Seven, the electrical
component of the delivery was tailored to meet
the customer’s precise wishes. “The switchboard
is unique to this vessel. The power drives were
selected from a series that delivers increasing
amounts of power in clear steps – we chose the
ones best suited to this application. And while
the electrical motors are essentially a standard
specification, their power rating has to match
the power required by the thrusters.”
Wilhelmsen worked with the Normand Seven
project from the very beginning. Once again,
cooperation was built on good relationships
with the shipowner, ship designer and shipyard.
“We worked with them on a previous project
that began in 2003. This one followed right on
its heels, not as a repeat, but as a follow-up for
all the work we did,” he says.
“SHIPYARDS DO NOT
HAVE TO WORRY ABOUT
THE INTERFACES, OR
DEAL WITH DIFFERENT
SUPPLIERS ARGUING
ABOUT HOW THE
WHOLE THING SHOULD
BE ASSEMBLED.”
03.2007.
[ SAFE FPSO SOLUTIONS ]
ALLIANCE IN THE OIL&GAS
SECTOR OPENS NEW DOORS
T E X T: R I S T O PA K A R I N E N | P H O T O : W Ä R T S I L Ä
ACCORDING TO EXPERTS,
high oil prices are making marginal
oilfields a commercially viable option. By 2008, world offshore
oil production could increase by 43 percent and offshore gas
production by a staggering 83 percent.
S
ounds lucrative. While Wärtsilä has been a player
in the Floating Production Storage and Offtake
(FPSO) market in the past, it is now putting
added focus and energy into this market.
One example is the alliance struck last year with Emerson
Process Management, an American company. Wärtsilä
and Emerson are both major suppliers to the offshore
and FPSO industry, and together represent a unique
partnership for FPSO conversions and newbuildings.
“Our aim is to help our customers improve their
business by being an effective strategic partner, all the
way from feasibility study through to actual operation,”
says Arne Birkeland, President of Wärtsilä in Norway.
“The Wärtsilä-Emerson alliance is an enabler for safe,
efficient, and enhanced solutions. With this alliance we
bring a long list of real advantages to our clients, and
based on proven solutions and pre-tested modules, we can
manage really fast-track conversion projects,” he adds.
That is important, but is it special? Who would not
want to be doing that?
Risky business
The oil and gas sector is a risky business, not only
financially, but also on the ground. Both products
are extremely flammable and the margin for error is,
put simply, zero. To achieve that, you need certified
technologies, says Birkeland.
“Emerson has that on the Automation side, Wärtsilä has
it in areas such as power plant (i.e. engines), propulsion
plant and power distribution systems. At the same time,
you can not enter a new business with just technologies,
you also need an understanding of the applications,
experience from having been involved at an operational
level, and knowledge of how all this can be put together so
Wärtsilä has engines
which can produce all
the power on a vessel or
platform and is also a
major player in propulsion
systems.
p
[ SAFE FPSO SOLUTIONS ]
that it works. We have all that,” says Birkeland.
Offering a unique combination
“Together with Emerson we are creating
something new and different. We have engines
which can produce all the power on a vessel or
platform, while at the same time we are a major
player in propulsion systems, a vital component
in deep sea operations. We also have the electrical
knowledge, and that is a unique combination.
To put together the same or a similar offering,
other players in the field have to join forces with
several companies.”
According to Birkeland, the global FPSO
conversion market consists of approximately
20-25 projects each year. “Although we are still
a small player, we are quite big when compared
to the independent operators, so in that sense
we’re ahead of the competition.
One integrated team
From the customer’s viewpoint, Wärtsilä and
Emerson work as a single integrated team.
The client only needs one point of contact
with the alliance. This concept combines the
strengths, technologies and capabilities of both
companies, and offers the significant advantage
Twentyfour7.
partners and the process module vendor allows
fast-track projects to be taken from startup to
full operation in just 18 months.
The issue of who receives the actual contract to
do the work is secondary, says Birkeland. “We can
do it both ways, either Emerson has the contract
and we are integrated into the project, or vice
versa. Marketing is performed jointly. It does not
matter who leads.
“But it is not a joint venture. It is a back-toback agreement with clear areas of responsibility.
They take everything related to the safety side,
and we handle everything on the electricity side,”
he says.
One module has it all
A key element in achieving such rapid project
completion is so-called ‘super modules’ which
allow solutions to be compartmentalized. Instead
of having everything integrated within a vessel’s
hull, one module can consist of the power plant,
another of switchboards, and each one can be
added to the vessel as ‘plug and play’ solutions.
“Most items can be pre-commissioned, and that
reduces delivery and commissioning times,” says
Birkeland.
The alliance has already yielded results, Wärtsilä
FPSOs take all the oil or gas produced by nearby platforms,
process it and store it until the oil or gas can be offloaded or
piped ashore.
of a single point for all purchases, installation,
commissioning and servicing – even in projects
with a large scope.
“As a supplier, our project responsibility covers
feasibility studies, front-end engineering and
design (FEED), complete systems delivery and
installation, all the way through to operation
with lifecycle support,” says Birkeland.
Fast track projects in just 18 months
One sign of the degree of integration in this
alliance is the fact that close cooperation with
the shipowner, shipyard, designers, engineering
and Emerson are in the final phase of converting
Berge Enterprise, one of the world’s largest
tankers, to an FPSO for BW Offshore, and have
also started work on a Multi Purpose Floater for
MPF Corp and the PIPA II for Petroserv. There
are also several contracts for projects scheduled
to be completed in 2009.
Another example is the Norwegian company
Teekay Petrojarl, who will be operating an FPSO
in Brazil. They will own the vessel, and get paid
by Brazil’s Petrobras according to the amount of
oil they get collected.
“We know their traditional tanker operation
What you get is
what you need
Wärtsilä-Emerson alliance teams offer:
• A cost-effective execution model with
fast-track project capability
• Simplified engineering and well-defined
interfaces
• Products with the flexibility to suit skid
topology/modular design
• Savings in installation costs
• Less commissioning work at the
shipyard
• A single entity that takes responsibility
for engineering, including design and
tools
• Integrated engineering teams
committed to each project from FEED to
operation
• Multi-disciplinary capabilities in a single
team
• An experienced project organization.
and are ready to get to work on a new conversion
should that be needed.”
Projects all over the world
“The first project completed jointly by Wärtsilä
and Emerson is operating off Mexico, the next is
currently being commissioned by a Polish yard,
and we are manufacturing equipment in Spain
for the third. Our fourth project will involve
extensive engineering services in Norway and
Holland, putting together the deliverables in
Singapore, and the vessel will actually operate
off Brazil,” says Birkeland.
In projects such as this, Wärtsilä’s global
reach is an essential asset. The Group’s after
sales organization, employing more than 8000,
has a presence in all the markets where their
independent FPSO clients are operating.
“If you are using a vessel in Brazilian waters
but then move it to operate it off the coast of
western Africa, Wärtsilä can serve you even
there,” says Birkeland.
This is what helping customers to improve
their business by being an effective strategic
partner really means. And that is special.
03.2007.
T E X T: M A R J AT TA P I E T I L Ä | P H O T O : W Ä R T S I L Ä
HERCULES, a co-operative
research project led by Wärtsilä and
MAN Diesel with multinational teams,
was to develop new technology for
higher-efficiency marine engines with
ultra-low emissions. A paper presented
by Wärtsilä describing some of the
successful results of the project won
the Best Paper Award at the 25th
CIMAC World Congress in Vienna.
THE AIM OF
[ HERCULES PROJECT ]
THE LABOURS
OF HERCULES
E
ven though HERCULES is an acronym formed from
the first letters of the words High Efficiency R&D on
Combustion with Ultra-Low Emissions for Ships, the
reference to Hercules, hero of Greek mythology known for his
labours to make the world safer for mankind, is quite possibly
deliberate. While that Hercules fought against monsters, the
demons challenging the HERCULES research teams are the
emissions that endanger our environment.
HERCULES began in early 2004 and was completed in
September of this year. Funded by the European Union as part
of the 6th Frame Work Programme (EUR 15 million), the
Swiss Federal Government (EUR 2.5 million) and participating
companies, project’s total budget was EUR 33 million. In
addition to Wärtsilä and MAN Diesel, the research teams
were staffed by people from more than 40 European engine
component suppliers, equipment manufacturers, universities,
research institutions and shipping companies.
Two major objectives and eight work packages
“The research project consisted of eight work packages which
all addressed different areas of the two major objectives – a
substantial reduction in exhaust emissions by marine diesel
engines and improvements in engine efficiency. Other objectives
included the minimization of engine lifecycle costs and achieving
increased levels of reliability,” says Klaus Heim, Vice President
Global R&D, Wärtsilä Industrial Operations.
“The trigger for HERCULES was that in the near future,
the maritime industry will have to comply with a number of
new EU, national and international environmental regulations.
One of these is an International Maritime Organisation (IMO)
regulation limiting NOX (nitrogen oxide) emissions. Tier II,
the second step of this regulation is expected to come into
force in 2011, and will be compulsory for all vessels sailing in
international waters. There is currently some uncertainty about
the final schedule and scope of the required NOX reduction. For
this reason, it is important that Wärtsilä is prepared to launch
compliant engines with suitable environmental technologies
as soon as any of the anticipated regulations come into force,”
says Heim.
A wide range of alternatives
HERCULES involved screening a whole range of different
emission reduction technologies with the aim of not only
reducing NOX, but also other emissions such as particulates,
oxides of sulphur (SOX) and hydrocarbons.
“All these technologies were explored to analyze both their
potential and their weaknesses in emission reduction. The
knowledge and experience gained allows each project partner to
further develop their products and technologies accordingly. Our
turbocharger supplier, for example, developed the technology
for a product which will be useful to us in the future,“ says
Heim.
“For Wärtsilä, other interesting technologies to validate were
different ways of using water inside combustion cylinders to
reduce NOX emissions. One of the technologies tested onboard
ship was Direct Water Injection (DWI) for two-stroke engines.
p
[ HERCULES PROJECT ]
Twentyfour7.
This technology enables NOX emissions to be as water injection or a different turbocharging
reduced by up to 50%. Another application concept will be required,” he says. “Or if the
currently undergoing field tests is Wetpac H, regulations require a substantial reduction in
an intake-air humidification system for our SOX, this will demand that after treatment be
four-stroke engines. In collaboration with A.P. installed behind the engine. All of these will result
Moller-Maersk Group and Wallenius Lines, in increased investment costs. Four European
these applications have been tested successfully shipping companies participated in HERCULES
in prototype installations on some of their and tested the technologies onboard their
vessels.”
vessels. Other shipping companies have been
Development of some
following the project with
of the technologies has
great interest. Wärtsilä’s
“WE WANT TO BE
progressed so well that
priority is to offer the
they will be ready to be
technology which is most
SURE IN ADVANCE
introduced to the market
efficient, not only in
THAT OUR CUSTOMERS cost
within the coming
terms of investment but
three years. The new
also in terms of lifecycle
CAN BE OFFERED
applications also allow
costs.”
SOLUTIONS THAT
customized solutions
“It is a known fact that
designed to meet specific
modifi
cation of an engine
ARE FEASIBLE AND
regional environmental
to reduce exhaust emissions
COST-EFFICIENT.”
demands. In Sweden,
has an adverse effect on fuel
for example, the port
consumption. But thanks
fees paid by ferry operators are related to the to HERCULES and the two-stage turbo charging
NOX emissions by their ferries. By offering technology we have developed, it now looks as
these companies technology that reduce NOX if it will be possible to reduce NOX emissions
emissions, Wärtsilä can help them lower their substantially while keeping fuel consumption
operating costs.
at the same level as in current engines - or in
certain load ranges, even reduce it slightly. This
Ready for the retrofit market
is one of the project’s major achievements and a
So far, new environmental regulations have great leap forward from the results achieved in
only applied to new products. Discussions previous work,” he says, smiling.
are now under way, however, on also making
the compulsory IMO Tier I regulations apply
retrospectively. This would mean that all olderProgram
Sixth Framework
type marine diesel engines built before 2000 will
le Su rface Tra nsport
Pri ority 1.6.2 Sus tainab
have to be modified to achieve compliance.
“A regulation like that would be a major cost
issue for ship owners,” says Heim. “Just in case
it comes into force, we have been working on
developing retrofit technologies. We want to be
sure in advance that our customers can be offered
feasible and cost-efficient reftrofit solutions.”
Costs are the major concern
As environmental regulations become more
stringent, the major concerns of Wärtsilä’s
customers, in addition to complying with the
regulations, are the cost of engines and their fuel
efficiency – how much they cost to run. The
market is not ready to accept significant price
increases. According to Heim, it is too early to
predict the effect that emission regulations will
have on engine prices.
“If we have to achieve a 50% reduction in
NOX emissions, additional technologies such
HERCULES B scheduled
One result of the first HERCULES project
is that Wärtsilä gained a clear picture of the
emission reduction potential offered by different
techniques, making it possible to develop a
final set of technologies that can be offered to
customers when new environmental regulations
come into force. On the other hand, a number
of questions remained unanswered. Wärtsilä and
MAN Diesel have therefore proposed a followup project to be called HERCULES-B.
In June, the proposal for HERCULES-B
was submitted to the European Commission
within the framework of FP7 Cooperation Work
Programme: Theme 7-Transport. The project’s
stated aims are to significantly improve the
efficiency of marine diesel propulsion systems
while also achieving substantial reductions in
CO2 and other emissions. HERCULES-B reaches
beyond the current limits set by IMO and if the
targets are achieved, should radically reduce the
environmental effects of ship transportation. If
the project proposal is accepted, the new fouryear, EUR 35 million project will be launched
at the beginning of 2008.
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Wärtsilä Stakeholder Magazine*
Environmental
performance
*Sign off
Suppliers
met in
Vaasa
more on page 75
AT YOUR SERVICE | TRAVELLERS’ GEAR | HISTORY CORNER | LITTLE ENGINEER | EVENTS
[ S IG N OF F ]
Moving forward in the silence,
where no emissions are discharged
in the air. The nature thanks you
for your thoughtfulness. So does
the world when companies develop
environmentally sound solutions to
help preserve our globe.
sign off
[ AT YOUR S ERVICE ]
GETTING
THINGS DONE
T E X T: A N N E K Y T Ö L Ä P H O T O : M AT T I S N E L L M A N
Exhibitions and fairs are an excellent place to meet
customers and look for new markets. Susanne Ödahl,
Sales Promotion Manager at Wärtsilä, knows she
has done her job well when a stand has been well
designed and implemented and visitors enjoy their visit.
Everything required for providing information about
Wärtsilä and its services is then just where it should be.
Ödahl has been organizing trade shows and exhibitions
at Wärtsilä for 17 years. Her work has become more
challenging as the company has grown. Each year, she
and her team arrange about 50 large exhibitions and
events, handling every aspect from start to finish. As well
as exhibitions, Wärtsilä people give lectures at numerous
conferences and arrange customer seminars.
HOW EARLY DO YOU START PLANNING?
“Planning starts at least twelve months in advance, and
this requires a lot of contacts both in-house and with
external partners. Advance planning and preparations for
events takes most of our time - the actual construction
of each exhibition stand usually goes pretty quickly.”
WHAT ARE THE BIGGEST CHALLENGES?
“The unexpected - in the exhibition business it’s almost
guaranteed! Technology which refuses to work is a
typical challenge we face at exhibitions.”
WHAT ARE THE BIGGEST BENEFITS
OF THESE EVENTS?
“Large, international events offer good opportunities
to benchmark with the industry, interact with customers,
the media and colleagues, and of course find out how the
different stand elements work in practice. Every case is
unique - that’s what makes this job so interesting!”
Exhibitions
and fairs are
an excellent
place to meet
customers and
look for new
markets.
+
[ T RAVEL L ERS’ GEA R ]
PHOTOS: TOMMI TUOMI
SEIKO METALLIC SILVER
TRAVEL BEEP ALARM CLOCK
er
Photoquiz answ
in eastern
In Cappadocia,
Turkey, where
in
lia
ato
An
al
centr
dscape has been
the volcanic lan
ces of erosion.
shaped by the for
ve
years, people ha
For hundreds of
ft but firm tuff
excavated the so
rie
s, monaste s,
to create dwelling derground
un
d
an
s
he
urc
ch
cities.
3.
2.
Good morning - it’s time to rise and
shine! Waking up in a hotel room to the
beep alarm given by this Seiko travel
alarm clock should make getting up
easier. If you’re still feeling sleepy, use
the snooze button to give you an extra
lie in. This quartz-powered alarm clock
comes in a metallic
silver colour, has an
electro-luminous dial
and a dual-time zone
function. It measures
8.6 x 6.8 x 2.2 cm.
VACCINATIONS
1.
Your flight is booked but suddenly
you’re unsure about the vaccinations
you need in the country you’re
travelling to. Don’t panic - there are
web guides you can use to find out
which vaccinations are required in
your travel destination. The following
website, for example, gives information
on current vaccine recommendations:
http://www.netdoctor.co.uk/
travel/vaccines_index.shtml
iPOD NANO
SUNGLASSES TO MATCH
your style on all occasions
REGARDLESS OF whether
you’re on holiday or on a
business trip, remember to
protect your eyes and your
eyesight with sunglasses.
Choose from sporty, classic
or trendy eyewear to match
your personal lifestyle.
1) SPORTY: Clean and
simple, with a metal bar
inset in the upper part of
the plastic front. A linear
metal decoration engraved
halfway down the arms
highlights the two-tone
colour combinations. This
model features strong colour
contrasts between the black
front and arms and the
earpieces in orange, yellow,
red and talcum.
2) CLASSIC: A classic
drop-shape model in metal
with a double bridge. The
injection-moulded arms
carry a perforated metal
logo plaque which creates
an original full/empty effect,
giving the frame a lighter feel.
The Prada logo features the
coat of arms of the House of
Savoy, the Italian royal family
to which Prada became an
official supplier in 1913.
3) TRENDY: The aviator
shape is back! This injectionmoulded model in nylon
comes in a semi-wrap-around
aviator shape and features
a metal insert that runs the
entire length of the brow bar,
ending up in the lugs where
the arms are attached. The
wide monolens is available in
an elegant range of solid or
graded tones.
There’s nothing like a music player
to entertain you during long flights
and the hours you know you’ll be
spending waiting in different airports.
The iPod nano is all about videos not only does it play your favourite
music, it also allows you to watch
music videos, video podcasts and
much more. Made from anodised
aluminium and polished, stainless
steel, the iPod’s big, bright display
offers amazing picture quality. Only 6.5
mm thick, it comes in five eye-catching
colours. For more information, see
www.apple.com/ipodnano/
sign off
[ HISTO RY CO RN ER | LITTLE E NGI NE E R’S PAGE ]
THE WÄRTSILÄ NAME
The history of the Wärtsilä
name has its roots in the
Karelia region of eastern
Finland. In 1834, a sawmill
was established in the village
of Värtsilä in the municipality
of Tohmajärvi. Two years later
the sawmill was acquired by
industrialist Ludwig Arppe,
who established an ironworks
alongside the sawmill.
Some time later, Ludwig
Arppe’s heirs changed the
name of the company to
Wärtsilä. The company was
thus named after the village,
a common practice among
Finnish companies. Nokia is
another fine example.
The original logo of
the Wärtsilä company
incorporated the theme of
the Karelian coat of arms. A
new logo was introduced in
1997 when Wärtsilä acquired
New Sulzer Diesel and the
corporate name became
Wärtsilä NSD.
The new oval logo
incorporated the colours of
the sea and fire – blue and
orange –depicting the Ship
Power and Power Plants
business areas. The oval
shape of the logo was chosen
after studies showed that
it evoked the most positive
images in different parts
of the world. The current
Wärtsilä logo was adopted
in 2000, when NSD was
dropped from the corporate
name.
ALL STEAMED UP
T E X T: L E E N A K O S K E N L A A K S O
and ready for action!
IF YOU’RE FASCINATED by steam engines, why not
take your passion one step further and get hold of
one? You don’t have to have DIY skills and build
the engine from a kit of parts, ready-to-run steam
engines are available off the shelf. They also make a
perfect gift for anyone interested in either steam or
engineering.
The Stuart D10 Ready to Run Engine produced
by Stuart Models of Guernsey in the UK is well
suited to all kinds of stationary and marine work,
being able to reach speeds of up to 2000 rpm. You
can use it to power a 183 cm model steam boat,
for example, or to run a dynamo. It can also be
used to power workshop models such as the Stuart
Engineering Lathe, the Stuart Pillar Drill, or the
Stuart Shaping Machine.
Elegant, well designed and thoroughly practical,
the Stuart D10 has an overall height of 15 cm and a
flywheel with a diameter of 4 cm. The engine has a
2 cm bore and a 2 cm stroke. The boxbed, soleplate,
standards, cylinders, valve chests and covers, top
and bottom cylinder covers and flywheel are made
of cast iron, while brass is used in the slide valves,
pistons, connecting rods, eccentric rods, valve
operating blocks, glands, crossheads and crankshaft
bearings. The engine’s crankshaft, crankwebbs,
eccentric sheaves, crosshead pins, piston and valve
rods are made of steel.
Each model is supplied fully painted and
polished and is supplied with a signed certificate of
authentication containing the model’s serial number
and the date of purchase. This information is also
copied into the manufacturer’s ledger, so a record
of the original owner of the engine is kept for
posterity. To guarantee user satisfaction, all Ready to
Run models supplied by Stuart Models are carefully
built and tested in the manufacturer’s workshop.
The Stuart D10 comes with detailed drawings,
gaskets, cylinder lagging, gland packing and a
fixings pack.
[ ONC E U P ON A T I M E ]
T E X T: L E E N A K O S K E N L A A K S O
I L L U S T R AT I O N : V I L L E T I E T Ä V Ä I N E N
ROALD AMUNDSEN
– POL A R E X PL OR ER
ROALD AMUNDSEN was born on July 16,
1872 near Oslo, Norway. Giving up plans
of a career in medicine, he decided to
devote his life to polar research instead. He
was a qualified seaman, and after working
on a merchant ship in the Arctic, he signed
on as first mate of the Belgica, the first ship
that wintered in the Antarctic from 1997
to 1899.
These voyages gave Amundsen the
courage to tackle the challenge of The
Northwest Passage, the ice-ridden
passageway north of the North American
continent, linking Europe and Asia.
Amundsen and his crew of six aboard
the Gjøa succeeded in sailing through the
passageway in August 1906, after a threeyear voyage.
NEXT, AMUNDSEN TOOK an interest in the
North Pole. He wanted to launch a polar
expedition, but as news came in Autumn
1909 that the Americans Frederick Cook
and Robert Peary had reached the North
Pole, he decided to postpone the North
Pole expedition, and try to capture the
South Pole instead. Amundsen knew
that a British expedition led by Robert
Falcon Scott was already on their way to
the Antarctic, but his mind was made up,
and he started secret preparations, telling
no-one except his brother that his plans
had changed.
In August 1909 Amundsen sailed south
aboard the Fram with 100 dogs, tents and
sledges on board. At that time, ships had
to sail round Cape Horn in order to pass
“ The closer they came
to the Pole, the more
Amundsen worried
that Scott had already
beaten them.”
through the Bering Strait, so everyone
assumed they were eventually headed
for the north. During a stop at Madeira,
Amundsen informed the astounded
expedition members that they were going
south, not north.
Temperatures were nearing -51°C, but
on 19 October, 1911 Amundsen and his
four companions left base camp with four
sledges pulled by 52 dogs. The dogs got
hungry and exhausted and the men had
frostbitten faces, but on 14 December
they finally reached the Pole. Meanwhile,
24 dogs had been slaughtered and some
carcasses had been fed to the remaining
dogs. The five men and 11 dogs returned
to base camp 39 days later. Scott and his
expedition arrived at the South Pole five
weeks after Amundsen, only to find the
Norwegian flag already there.
Arctic exploration was Amundsen’s
whole life, and it was also to be his death.
In 1928 Amundsen’s Italian colleague
Umberto Nobile embarked on a new arctic
flight, but the plane went missing. Two
search parties were set up, and Amundsen
joined one of them. The second search
party managed to find the plane and
Nobile, who survived, but Amundsen’s
plane crashed and he disappeared without
a trace ca. June 18, 1928.
AMUNDSEN’S FIRST CAMP was located in
the Bay of Whales, which was closer to
the Pole than Scott’s camp in McMurdo
Sound. The terrain between the Bay
and the Pole was unknown, however.
sign off
[ EVEN TS ]
Wrapping up
THE SAILING
season
P H O TO S : M A N U M A R T T I N E N
An autumn sun was shining brightly when the
49ers season came to an end in early September
in Helsinki. Wärtsilä’s presence at the 49ers final
included a stand and the Wärtsilä-Arcada 49ers
team.
QUOTES:
“In this competition, the target was
our stakeholders, employees and
students in Finland. We also wanted
to improve people’s knowledge of our
brand and our company. The Wärtsilä
stand was extremely popular and
feedback from visitors as well as from
other companies, even competitors,
was very positive. Feedback
concerning our Wärtsilä-Arcada team
has also been very positive throughout
the season.”
MIKAEL SIMELIUS
Vice President,
Marketing Communications & Branding
“This final competition was a success
for us even though our placing for the
whole season was fi fth. And it was a
really successful year – we got plenty
of useful experience racing against
senior competitors.”
LAURI LEHTINEN
Wärtsilä-Arcada team
Lauri Lehtinen and Heikki
Soininen.
sign off
Suppliers had their
DAY IN VAASA
T E X T: J O H N PA G N I P H O T O S : K R I S T E R L Ö F R O T H
FOLLOWING THE SUCCESS of the first event last year and
positive feedback, Suppliers’ Day 2007 was held in Vaasa on 2425 October. The theme was ‘Innovations’, which Yngve Bärgård,
Vice President, Corporate Supply Management, explained to the
180 guests in this way “This doesn’t mean something specific like
a new piston or turbocharger, it is much broader: the way we work
with suppliers, adapting and fine-tuning internal methods and
processes.”
The aim is for suppliers and Wärtsilä to build two-way
relationships, in the same manner that the company does this
to meet its customers’ needs and demands. The theme for the
first Suppliers’ Day (held in June 2006 in Helsinki) was ‘Excellent
Relations’ and one important topic was to secure adequate
capacity, then a bottleneck.
That situation has now improved, but the goal remains - ensuring
this becomes a sustainable situation, maintaining the commitment
to improve quality, delivery and cost. “To be a good market player,
we need our suppliers to do the same,” says Bärgård.
“Building for the future”
This is one reason why Vaasa was chosen to host the event. “In
Helsinki we encouraged suppliers to follow Wärtsilä’s lead in order
to meet future demands. So Vaasa is an excellent opportunity
to show the new delivery centre from our angle. We are literally
building for the future,” says Bärgård.
“We don’t want our suppliers to be at arm’s length, but to be
involved with us in improving the overall situation. And excellent
relationships are the basis for all this.”
In addition to a visit to the facility during evening working hours,
selected key suppliers had the opportunity to network on the spot.
Companies invited to Vaasa were primarily component suppliers
for production and service, but suppliers for logistics and indirect
material also participated.
The final day was arranged in traditional seminar style, with
suppliers being informed about Wärtsilä’s future targets and
objectives and what is expected from them in achieving mutual
success. At a gala “Supplier Awards” dinner, eight companies were
rewarded for fulfilling or greatly improving their performance to
meet the main criteria on quality, delivery and cost – Wärtsilä’s
watchwords.
The event ended wit
h a Supplier Award
s dinner where aw
to eight companies
ards were granted
for demonstrating
excellent quality, de
development. The
livery and cost
awarded companies
are Kongsberg Ma
International AB, He
ritime A/S, Swep
co International A/
S, Kobe Steel, Ltd.,
Pentagon Tool Room
Hug Engineering AG
Industries, Nittan
,
Valve Co., Ltd., and
Componenta Piston
s.
EVERY SECOND SHIP YOU SEE IS SERVICED BY US.
The reason isn’t just our solutions, excellent though they are. Just as important is the
around-the-clock lifecycle care offered by 15,000 of us all across the globe. This is the
kind of simple, practical thinking that will give a better return on your investment, whether
you need it on land or at sea. Learn more of what we can do for you at wartsila.com.
WÄRTSILÄ® is a registered trademark.
Twentyfour7.
90°W
45°W
0°
45°E
90°E
135°E
WÄRTSILÄ NETWORK
75°N
45°N
0°
[ PASSI ON ]
45°S
The future of ship design
MORE ON PAGE 48
WWW.WARTSILA.COM
REP ORTAGE
i
REP ORTAG E
OIL ROUTES IN
RURAL TURKEY
i
The BTC pipeline routes oil
across the mountains of eastern
Anatolia, in a landscape with
fascinating and surprising views.
MORE ON PAGE 20
*contents
46 INFOGRAPHICS
38 Dual-fuel
S O LU T IO N
Engines that can burn
either gas or liquid fuel are
becoming the number one
choice for powering LNG
carriers.
51 Rethink
Changes in market
demand are reflected
in the way that the
logistics of spare parts
supply is organized.
30 Reliable economy
The Wärtsilä 46 engine family
has served the marine sector
for 20 years. A new 20-cylinder
design offers new levels of
performance in power generation.
PLUS: 35 FINANCE & BUSINESS WORLD
PASSSION
[ CONT E NTS ]
150,000 joints, but all that
can be seen of the BTC
pipeline is 101 block valves
and eight pumping stations,
four of them in Turkey.
IN- DEPT H
20 Pumping oil
FEA TU R E
REPO RT AGE
WÄRTSILÄ SENITEC
A groundbreaking bilge
and sludge treatment unit
offers a cleaner environment
– as well as very short
payback times.
48 Future waves
Naval architecture blends
art, science and business,
but a vessel’s shape reveals
its heart – and the true skills
of its designer.
43 R&D, INNOVATION
3.07 Twentyfour7. 5
SOMETIMES BLACKOUTS ARE NOT AN OPTION.
That’s why we provide, for example, airports with power solutions that work
independently of any outside power source. This is the kind of practical thinking that will
give you a better return on your investment, whether you need a ship power, service or
power plant solution on land or at sea. Learn more of what 15,000 of us can do for you
all across the globe at wartsila.com.
WÄRTSILÄ® is a registered trademark.
*contents
in detail ENERGY & MARINE
56 POWERING PAKISTAN
Energy is playing a central role and Wärtsilä
is providing unique expertise.
58 ANCILLARY SERVICES
Generating 237 MW using reciprocating
engines fuelled by natural gas.
60 CHP IN MILAN
A Wärtsilä trigeneration solution provides
energy security at Linate Airport.
61 THERMAL INTEGRATION
Raised output and full heat recovery raise
overall efficiency.
63 EVERYTHING COUNTS
AT YOUR SERVICE
AROUND THE GLOBE
SIGN OFF
Safe, efficient, enhanced solutions are the
trademark of this alliance.
10 Agile colonies
12 CALENDAR upcoming events
69 SILENT AND CLEAN treating
67 LABOURING HARD
the planet with care
Multinational co-operation backed by the
EU tackles engine emissions.
NEWS orders, manufacturing
70 AT YOUR SERVICE
13 DICTIONARY useful definitions
signals: A CANNON SALUTE
in exhibitions and fairs
14 PEOPLE & FACES Expansion
eyes, waking up, vaccinations, video you
can carry with you.
in Finland and Italy
More NEWS
15 COLUMN by Tage Blomberg
16 Q&A power and energy
YESTERDAY, NOW, TOMORROW
Biomass
[ CON T ENTS ]
65 FPSO SUPPLIERS
17 PHOTO QUIZ
Where can this exotic dwelling be found?
18 COLUMN by
71 TRAVELLERS’ GEAR protecting your
72 HISTORY CORNER origins of the
Wärtsilä name LITTLE ENGINEERS’ PAGE
steamed up and ready
73 ROALD AMUNDSEN and the
race to the South Pole
74 EVENTS the sailing season draws
to a close. EVENTS Suppliers build
relationships in Vaasa
Lars Hellberg
19 CORPORATE
CITIZENSHIP
Added value for
everyone involved
LINATE AIRPORT, PAGE 60
AN IMPORTANT COG, PAGE 63
Publisher: Wärtsilä Corporation | John Stenbergin
ranta 2 | P.O. Box 196 | FI-00531 Helsinki | Finland |
Telephone: +358 10 709 0000 |
Email and feedback: [email protected]
Editor-in-Chief: Mikael Simelius | Managing Editor:
Virva Äimälä | Editorial team: Arnauld Filancia, Marit
Holmlund-Sund, Maria Nystrand, Nina Pulliainen |
Editorial office and layout: Kynämies Oy | Helsinki |
Finland |English editing: Rick McArthur | Printed by
Punamusta | Joensuu | Finland |ISSN 1796-2161 |
WÄRTSILÄ® is a registered trademark | Copyright©
2006 Wärtsilä Corporation | Paper: cover Galerie Art
Gloss 250 g/m2 inside pages NovaPress Silk 90 g/m2
| Cover photo: indav
Written permission from Wärtsilä Corporation is required
for the reproduction of articles in whole or in part.
71
www.wartsila.com
TRAVELLERS’ GEAR
The following information contains, or may be deemed to contain “forward-looking statements”. These statements might relate to future events or our future financial performance, including, but
not limited to, strategic plans, potential growth, planned operational changes, expected capital expenditures, future cash sources and requirements, liquidity and cost savings that involve known
and unknown risks, uncertainties and other factors that may cause Wärtsilä Corporation’s or its businesses’ actual results, levels of activity, performance or achievements to be materially different
from those expressed or implied by any forward-looking statements. In some cases, such forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,”
“expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking
statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed
in, or implied by, the following forward-looking statements, possibly to a material degree. All forward-looking statements made in this publication are based only on information presently available
in relation to the articles contained in this magazine and may not be current any longer and Wärtsilä Corporation assumes no obligation to update any forward-looking statements. Nothing in this
publication constitutes investment advice and this publication shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity.
8 Twentyfour7. 3.07
DISCL A I M ER
70
Wärtsilä’s contribution to a Ship of the Year
award for Ulstein Verft.
editorial
Dear Reader,
I am proud to have the opportunity to
introduce you to the world of Wärtsilä Corporation, a
company that never sleeps or stops challenging how things
are done. In this edition we take you to remote places, meet
enthusiastic people and reveal new and better ways of serving
our customers.
ONCE AGAIN
a number of items that clearly indicate
future directions. Prices for energy can be expected to remain
high in coming years. It is our belief that ongoing concerns
about emissions will accelerate, and we will therefore
continue to lead the industry by improving our technologies
and solutions to meet these challenges.
FOR US, THERE ARE
the situation and to meet our customers’
increasing demands in the service sector, we are among
others upgrading both the range of Services solutions we
offer and their availability. In this issue we also introduce our
new way of serving our customers in the marine market.
The recently completed expansion of our production
facilities in Trieste, Italy and Vaasa, Finland are just one way
of showing that our production thinking is state-of-the-art.
IN RESPONSE FOR
takes us to the modern heart of Turkey
as we follow the route of the BTC pipeline through truly
extraordinary locations. The Wärtsilä 46 is familiar to
most of you who already know Wärtsilä, and the new
Wärtsilä 46F engine is answering the challenges concerning
energy prices and emissions by offering lower emissions with
higher levels of efficiency and more power.
And finally, we gain some insights in the world of a naval
architect who not only designs vessels but also tries to shape
the industry with his thoughts and ideas.
[ TW ENT Y FOUR7. ]
OUR REPORTAGE
and many other ways we continuously
strive to serve our customers by enabling them to focus
on their business in a better, more efficient and sounder
environment.
IN ALL OF THE ABOVE
So once again, thank you for choosing Wärtsilä.
Mikael Simelius
Vice President
Marketing Communications & Branding
[email protected]
3.07 Twentyfour7. 9
Wärtsilä CHP plant
for Guba in Azerbaijan
[ A R O U N D T H E G LO B E ]
more on page 14
*around the
NEWS | PEOPLE AND FACES | EVENTS | DICTIONARY | PHOTO QUIZ | Q&A
AGILE AS AN ANT
Ants are eusocial insects of the family
Formicidae, and there are 12,000 known
species. Their adaptability results in their
being found all over the world, except in
the polar regions and on some remote
islands. Their main habitats are in the
tropics.
Ants build highly-organized colonies
and nests which sometimes consist of
more than a million individuals, and their
societies have a strict hierarchy. Life in
anthills is driven by the common goals
of survival, nourishment and defending
the nest against intruders. The chemical
injected by an ant when it stings you is
formic acid.
globe
There are four castes of ants. Workers,
or females, live for one to three years.
Drones, or males, are usually smaller
than the workers and their only purpose
is to eat and mate. Mating occurs in
flight and the males die soon afterwards.
Queens are much larger than both
workers and drones and are at the
centre of each ant colony as they lay all
the eggs. They can live up to 25 years.
Soldiers, worker ants with huge heads
and mandibles, defend the nest and
participate in attacks against other
colonies.
Ants communicate using chemicals
called pheromones. Like other insects,
they smell using their long, thin
antennae. They find their way to food by
following pheromone trails left by other
ants.
TE XT: LE E NA KOSK ENL A A KSO
11
around the globe
calendar
GASTECH 2008
POWERGEN INTERNATIONAL
DECEMBER 11-13
New Orleans, USA
International power generation event.
EGSA Pavillion STAND 3053
The largest international
event for the LNG, LPG and
Natural Gas Industries
STAND N23
PACIFIC 2008
JANUARY 29 – FEBRUARY 1
Sydney, Australia
Stand SM 19
March 10-13
Bangkok, Thailand
POWERGEN MIDDLE EAST
FEBRUARY 4-6
Manama, Bahrain
The region’s leading conference and
exhibition for the power, transmission &
distribution and water industries.
SEATRADE CRUISE SHIPPING
MARCH 10-13
Miami, USA
The meeting place for cruise line
decision makers and industry suppliers.
Stand 1601
VIETSHIP
MARCH 11-14
Ho Chi Minh, Vietnam
International Exhibition on Shipbuilding,
Marine Technology & Transportation
Stand A25-26
WÄRTSILÄ’S FINANCIAL
INFORMATION
The Financial Statement Bulletin for the
2007 financial year will be published on
Tuesday 5 February 2008.
The Annual Report 2007 will be
published in Week 10, 2008.
The 2008 Annual General Meeting will
take place on Wednesday, 19 March
2008 in Helsinki.
WÄRTSILÄ-MANTOSH SONDHI
AWARD TO DR R.K. PACHAURI
Wärtsilä India Ltd conferred the
5th Wärtsilä-Mantosh Sondhi
Award on Dr R.K. Pachauri,
Director General, TERI (The
Energy Research Institute) for
his outstanding
contribution
to the Indian
energy sector.
Dr Pachauri
was handed
the prestigious
award by Ole Johansson at a
ceremony held in October 2007.
Instituted in 2003, the
Wärtsilä-Mantosh Sondhi
award recognizes outstanding
achievements in the energy
sector. The award honours
Wärtsilä India’s Chairman
Emeritus, the late Mr. Mantosh
Sondhi, his value-based
leadership and excellence in
Indian industry and his
immense contribution to
the Energy Sector.
CONTROLLABLE PITCH
PROPELLERS IN INDIA
To achieve an important
and significant increase in
Controllable Pitch Propellers
(CPP) production capacity,
Wärtsilä Corporation has decided
to begin manufacturing these
products in India. The new
activity involves an investment of
some EUR 5 million and the new
production will be operational at
the end of 2008.
“Having CPP manufacturing in
India will benefit our Ship Power
customers in India, the rest of
Asia and Europe. Customers
will be able to obtain integrated
propeller and gear packages
from a single source. The new
manufacturing will also serve the
whole Wärtsilä Group through
component sourcing” said Jari
Salo, Vice President, Propulsion. k
[ CONT I NU ES ON PAG E 14 ]
MIDDLE EAST WORKBOATS
APRIL 28-30
Abu Dhabi, UAE
Stand E3
NEWSFLASH
SEA JAPAN
APRIL 9-11
Tokyo, Japan
Stand K-3
around the globe
03.2007
Dictionary
ANCILLARY SERVICES
On-line power generation equipment
synchronized to the grid to keep
frequency and voltage steady,
with output that can be increased
or decreased very rapidly (in 2-3
minutes) via automatic generation
control, and spinning reserves additional generating capacity that is
synchronized and ready to respond
in ten minutes or less should power
generation equipment in other
locations fail.
FIRING
A CANNON SALUTE
In earlier times, ships entering a friendly
port used to discharge their cannons,
effectively unloading them to show respect
and trust. The time required to reload the
guns meant that the vessel was partially
disarmed, serving as proof that the visitor
came with peaceful intentions.
The custom of firing cannon salutes
originated in the British Royal Navy. Guns
would be fired out to sea to show that no
hostile intent was involved. At first, ships
fired seven guns, and forts ashore would
respond by firing 21 times. When better
gunpowder became available, the British
increased the number of shots required
from ships to match the number fired by
forts. This was the beginning of the 21-gun
salute now used in many countries.
Today, gun salutes are fired in honour of
important national or local events, and to
celebrate visiting foreign heads of state and
members of the royal family. For particularly
important celebrations, multiples of 21-gun
salutes may be fired.
WASTE HEAT RECOVERY (WHR)
The use of heat in engine exhaust
gases to generate additional power,
reducing both fuel consumption
and levels of emissions, particularly
CO2. High-efficiency WHR plants
developed by Wärtsilä allows 12%
of main engine shaft power to be
recovered as electricity for shipboard
services and to aid in ship propulsion
through shaft motors.
CARBON MONOXIDE (CO)
A colourless, odourless, and tasteless
gas produced by the incomplete
combustion of carbon-containing
compounds in internal-combustion
engines. Toxic to humans, it has
significant fuel value. Natural
processes result in carbon monoxide
eventually being oxidized to carbon
dioxide (CO2).
O&M
An O&M (operations and
maintenance) agreement, sometimes
known as an operations agreement,
covers all aspects of the performance
and operational responsibility for
a power plant, marine or offshore
installation.
APPOINTMENTS
Wärtsilä has established a new
subsidiary, Wärtsilä Azerbaijan
Limited Liability Company, in
Baku, Azerbaijan.
Ismo Haapala was appointed
Managing Director of the new
company on 1 September 2007,
he reports to Eva-Stina Rönnholm,
Chairman of the Board of Wärtsilä
Azerbaijan.
[ P EOP LE & FACES ]
around the globe
Time to celebrate!
T E X T: L E I L A W E S T E R B A C K A N D G E L S O M I N O S I R A B E L L A
IN VAASA, a shower of confetti ushered in the
Vaasa, Finland - have been completed, and the
new facilities began operating in September.
Both projects were initiated in May 2006 with the
objective of increasing capacity to meet strong
market demand and support the company’s
growth targets.
new era. Mauri Pekkarinen, Finland’s Minister
of Trade and Industry, inaugurated the Delivery
Centre’s new assembly hall and logistics centre.
Juha Kytölä, Vice President, Delivery Centre
Vaasa, President of Wärtsilä Finland, and Ole
Johansson, CEO and President of Wärtsilä
Corporation, led the ceremony.
IN SEPTEMBER, new engine production facilities
Quality, reliability and cost efficiency
and a new Wärtsilä Land & Sea Academy Training
Centre were inaugurated in Trieste. A modern
manufacturing concept delivering higher quality,
increased efficiency and expanded capacity for
engine assembly and testing are now in action.
The EUR 30 million investment at the Vaasa
Delivery Centre has raised production capacity
to a level that corresponds to expected future
market demand while also providing increased
flexibility. The new logistics solutions guide
material flows directly to production without
any intermediate storage phases.
INVESTMENT PROJECTS in Trieste, Italy and in
OPERATIONS in the assembly area have switched
NEWSFLASH
[ CONT IN UES F ROM PAGE 12 ]
over to a modern line concept – the same as that
implemented in the Trieste Delivery Centre just
two weeks earlier. The keywords characterizing
the new concept are quality, delivery reliability
and cost efficiency. Assembly of the first engine
began in August 2007.
WORK BEGINS ON NEW PLANT
IN SOUTH KOREA
Work on the foundations for a new
manufacturing plant producing
Wärtsilä 50DF dual-fuel engines
began in September 2007 with a
ceremony at the Yeongam, South
Korea site. Announced in January
2007, the project is a joint venture
between Wärtsilä Corporation and
Hyundai Heavy Industries Co. Ltd
(HHI), and the new company will
be known as the Wärtsilä-Hyundai
Engine Company Ltd.
Production activity in the
new plant will be dedicated to
producing Wärtsilä 50DF dual-
fuel engines for installation in LNG
(Liquefied Natural Gas) carriers.
Demand in this market is expected
to continue to grow in parallel with
the increasing global demand for
natural gas. Korea’s share of the
LNG shipbuilding market currently
exceeds 70%.
WÄRTSILÄ CHP PLANT FOR
GUBA IN AZERBAIJAN
In September 2007, Wärtsilä
Corporation was awarded a EUR
38 million contract for a 104 MWe
combined heat and power (CHP)
plant by AzerEnerji, the stateowned Azerbaijan electricity
company. The new plant will be
located at Guba, 165 km to the
northwest of Baku, the country’s
capital.
The Guba CHP plant will
be equipped with 12 Wärtsilä
20V34SG generating sets fuelled
by natural gas from the Baku gas
fields. The overall efficiency of the
plant will be some 70%. Electricity
generated will be supplied to the
national grid, while the waste heat
will be used to provide heating for
100 hectares of new greenhouses
being built in the region.
COMPLETE PROPULSION
PACKAGE FOR VIETNAM
Wärtsilä has received an order
for a propulsion package from
Vietnam. Awarded by the Ben Kien
Shipyard in Haiphong, the scope
includes supply of a propulsion
package for a 564 TEU multipurpose carrier to be built for the
Hai Duong Shipbuilding & Shipping
Company. Both the shipyard
and the shipping company are
subsidiaries of the Vietnam
Shipbuilding Industry Corporation
(the Vinashin Group).
Delivery of the propulsion
package will take place in January
[ COLU M N ]
Full service with just
ONE PHONE CALL
WÄRTSILÄ SERVICES is
upgrading
the range and availability
of its solutions. We now
offer our customers in the
marine and energy markets a
comprehensive service solution
package based on the onestop-shopping principle.
Our seven service categories
– Engine, Automation,
Propulsion, Reconditioning,
Training, Operation &
Management and Ship
Services – concentrate the entire competence of our
global network into individual service ‘stations’.
both local and global purposes.
Category management offers our local product and
sales companies consistent, high-quality support
and tools for serving local customers. Local Wärtsilä
companies provide category management with upto-date knowledge on the particular needs that their
customers have. Together, global and local networks
are better able to anticipate future needs and develop
our service solutions portfolio accordingly.
THIS RENEWAL HAS
THE PHILOSOPHY behind
our service categories is
similar to that found in brand workshops. If you own
a high-end motor vehicle, you take it to a dedicated
workshop for basic overhaul tasks, and also expect
the service to provide added value – that something
extra. This is how we want our customers to feel when
they call their dedicated Wärtsilä service contact.
2009. The order marks continued
success for Wärtsilä in penetrating the
Vietnam market. In the spring of this
year, Wärtsilä and Vinashin signed a
licence agreement covering Wärtsilä
low-speed engines with bore sizes up
to 820 mm.
TURNKEY POWER PLANT TO
JORDANIAN CEMENT MANUFACTURER
At the end of October, Wärtsilä won a
EUR 31.5 million contract to supply a
turnkey power plant for a new cement
works in Al Katrana in Jordan. The order
was placed by the Al Katrana Cement
Company and the 49 MW power plant
will be delivered at the end of 2009.
FUEL CELL PROTOTYPE BEGINS
OPERATION
The Wärtsilä Fuel Cell Programme has
reached a significant milestone in its
development of solid oxide fuel cell
(SOFC) technology. On 23 October,
the Wärtsilä WFC20 fuel cell, a 20 kWe
alpha-prototype, was heated up for
the first time at Wärtsilä’s Fuel Cell
Laboratory in Espoo, Finland.
Wärtsilä has been developing fuel
cell technology for decentralized power
generation and marine applications
since 2000.
THE SCOPE covered
by each of our service categories
is vast and continuously expanding. In addition
to basic support for Wärtsilä products, there are
items ranging all the way from field service and
product training to investment management.
through acquisitions and
innovation. Automation, for example, created from
scratch just four years ago, now has a strong presence
in over 20 network companies. The goal is to keep
expanding until all our service categories have a truly
global foothold in 70 countries in 150 locations.
EXPANSION WILL CONTINUE
Tage Blomberg
Group Vice President
Wärtsilä Services
around the globe
[ YEST ERDAY, N OW, TOMOR ROW | Q&A ]
Q&A
TE XT: M ARI A N YSTRA N D
DID YOU KNOW THAT
an average power capacity
of 300 MW is required to
cover the electricity
needs of Helsinki?
Wärtsilä is delivering a power
plant that can generate
300 MW to Sangachal in
Azerbaijan. It is powered
by 18 Wärtsilä 50DF tri-fuel
engines that can burn either
natural gas, heavy fuel oil or
light fuel oil.
DID YOU KNOW THAT
Wärtsilä engines convert
45% of the energy in their
fuel into useful work?
For typical car engines
this figure is usually
25-30% or less.
The very high fuel efficiency
achieved by Wärtsilä engines
results from effective
turbocharging and the use
of large cylinder bores. Car
engines need more cooling
and suffer from higher
frictional losses.
DID YOU KNOW THAT
the largest cruise ships in
the world are powered
by Wärtsilä engines?
M/S Freedom of the Seas
and M/S Liberty of the Seas,
160,000 grt and the world’s
largest passenger vessels,
are each powered by six
12-cylinder Wärtsilä 46
engines in V-configuration.
They have accommodation
for more than 4300
passengers on fifteen
passenger decks.
BIOMASS
- a low-carbon alternative to fossil fuels
YESTERDAY Used as fuel since
man began to make and use
fire, “biomass” means biological
material derived from living or
recently-living organisms. It applies
equally to material derived from
animal and vegetable sources.
Biomass is part of the carbon cycle
- plants are continually converting
carbon from the atmosphere
into biological matter through
photosynthesis. On decay or
combustion, the carbon is returned
to the atmosphere or the soil.
NOW Biomass is a renewable, lowcarbon fuel that is widely available
and economical in use. There
are two main categories: woody
and non-woody. Woody biomass
includes forest products, untreated
wood products, energy crops and
short-rotation coppice - quickgrowing trees like willow. Nonwoody biomass includes animal
waste, biodegradable products
resulting from food processing, and
high energy crops such as maize,
rape and sugar cane.
Compared to fossil fuels, whose
combustion releases carbon that
was stored thousands or millions
of years ago, properly managed
biomass is a sustainable fuel that
can deliver a significant reduction
in net carbon emissions.
TOMORROW Expanding the
production and use of biomass
to generate energy is expected to
yield environmental benefits. As
plant matter can be constantly
replaced by planting for new growth,
burning it as fuel will contribute to
achieving a reasonably stable level
of atmospheric carbon.
When burnt, many biomass
fuels also generate lower levels of
atmospheric pollutants than result
from the burning of fossil fuels.
Biomass combustion systems are
already highly sophisticated, offering
levels of efficiency and emissions
comparable to the best fossil-fuel
boilers. Technological developments
can be expected to provide even
better performance.
TEXT: RIC K M c ART HU R

Wärtsilä Stakeholder Magazine

Transcription

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