Wärtsilä Quarterly Magazine

Transcription

NO. 04.2006
AROUND THE GLOBE | DETAILS MATTER | INNOVATION | WÄRTSILÄ 14RT-FLEX96C | MASTERMIND | AUTOMATION | INSIDE | SIGN OFF
Twentyfour7.
p 04.2006
WÄRTSILÄ QUARTERLY MAGAZINE
+ FINANCE & BUSINESS WORLD | R&D
feature
marketplace. The whole chain from the original idea for a product to supplying it to a
consumer is managed. The supply of innovative products and the corresponding demand
are in balance.
Europe suffers from a lack of innovation-minded entrepreneurs who are ready to take
risks. Environmental technology is a good example. Norms related to environmental
issues in Europe set high requirements and large sums of money are invested in research
and development into environmental technology, but Europe’s share of the global market
for environmental technology is still very low. Europeans should find out how to create
demand for their innovative environmental technology.
Innovation activity also requires the building of complete concepts. The evolution of
the Finnish banking system is a good example. The leap made during the last 15 years
from office-based services to personalized services delivered via the Internet has been
enormous. The forces driving this process were twofold - demand, and structural change
in the national economy. Investments in research and development materialized in the
form of new service concepts, new operational models and new applications of existing
IT technology. The framework conditions favoured change and plenty of well-educated
customers were both able and willing to take advantage of the new service mechanisms
being provided. In this type of change, while technology is important, the creation of a
complete entity requires that development of all the separate elements be synchronised.
Shared goals and collaboration between researchers and business entities are essential
components of dynamic innovation systems. Recently, innovation activity has focused
on ITC technology and biotechnology. In the next few years, activity in technology
integration, application and content production will grow. The world will belong to
those who can extract maximal advantage - in both the private and public sectors.
Strategy for an innovative Europe. Esko Aho, President of Sitra, the Finnish
National Fund for Research and Development, chaired a group of independent experts
appointed by the European Commission to reinforce research and innovation within
the EU. Submitted in January 2006, the group’s final report recommended urgent
development of an innovation-friendly internal market in the EU to improve
p Europe’s
RESULTS CAN
ONLY BE GAINED
FROM R&D
BY CREATING
INCENTIVES FOR
REFOCUSING
RESOURCES
FROM OLD
ACTIVITIES TO
NEW ONES.
p
4.06 Twentyfour7. 33
feature
INNOVATION
IS A PROCESS
THROUGH WHICH
KNOWLEDGE IS
USED TO MAKE
MONEY.
competitiveness in relation to the US and emerging
economies in Asia.
“The goals set in the Lisbon Agenda in 2000,
and the decision made in Barcelona in 2002 on
the 3% investment in R&D, were right. But our
group concluded that results can only be gained
from R&D investments by creating incentives for
refocusing resources from old activities to new ones,
and by developing an innovation-friendly market for
goods and services in Europe. Europe’s problem is
that its market is still very fragmented, and there are
numerous obstacles to collaboration over borders.
We need new financial structures and mobility of
people, knowledge, money and organisations. We
also need opportunity-oriented entrepreneurship instead of business activity which is only considered
as an alternative to wage earning. Together, these
constitute a paradigm change which goes well
beyond the present narrow domain of R&D and
innovation policy,” says Aho.
Commenting on work done by the group, Mr
Aho said “The results were presented at a meeting
of the European Council and it was suggested that
seven focus areas should be chosen for developing
and testing new models of operation. These
strategic areas are e-Health, Pharmaceuticals,
Energy, Environment, Transportation and Logistics,
Security and Digital Content. For each focus area,
an independent High Level Coordinator should be
appointed to develop a specific model for Europe to
improve its performance. During the Finnish EU
Presidency the objective should be on drafting a
Pact for Research and Innovation which constitutes
a framework for synchronized innovation activities.
These are all very practical issues – advancing
competition, developing public purchasing so that
it can include more innovative elements, promoting
European patents, simplifying public administration
and increasing cooperation between business and
universities. All this should be done urgently.”
34 Twentyfour7. 4.06
Sitra works for a more
successful Finland
Sitra, the Finnish National Fund for
Research and Development, is a national
innovation organisation whose objective
is to remove obstacles to the application
of new technologies and models of
operation.
Esko Aho, a former politician and
prime minister of Finland, was nominated
President of Sitra in July 2004 after his
return from the USA where he worked as
a lecturer at Harvard University.
Esko Aho is striving
to improve innovation
culture in the EU.
FINANCE&
T E XT: M A A R I T K AU N I S K A N GAS
P H OTO : P. A . AS I K A I N E N
BUSINESS
WORLD
than 30% of the country’s total consumption. The
share held by nuclear power, however, appears
to have reached its peak in spite of government
scenarios that portray its increased use. For
historical reasons and because of minor accidents
at nuclear power plants, Japan’s population does
not wholeheartedly embrace the idea of building
additional nuclear power plants.
Favourable regulatory changes in Japan
The deregulation of Japanese energy markets means that Wärtsilä has been able to
establish a foothold in the country’s market for power plants. New environmental
regulations are paving Wärtsilä’s route forward in both the energy and marine markets.
The energy market in Japan was
only opened to free competition in 2000, some
years later than in Europe. As they have cut their
electricity prices to be more competitive, ten
former state-owned electricity utility companies
still dominate the marketplace. Even so, more than
ten new private Power Producers and Suppliers
(PPS) have been established since deregulation.
Competition in Japan is harsh - for example, the
Tokyo area utility company has lost only about 3%
of its market share to new companies. The drivers
for PPS concerns are high levels of efficiency and
reliability, and cost effectiveness.
GAS IS REPLACING OIL
Wärtsilä has been selling power engines to
these new PPS companies. According to Yushi
Kumakura, General Manager, Wärtsilä Power
Plants in Japan, the market trend is to replace oil
with gas. “Prices for gas are still lower than oil and
gas has a lower environmental impact. Private
companies are now replacing oil-using power
plants with ones that employ gas,” he says.
Japanese gas companies are also introducing
combined heat and power (CHP) technology
in electricity production. CHP allows energy
efficiencies of 60-70% to be achieved rather
than the normal 40%. While liquefied gas can be
transported to Japan, gas pipelines are out of the
question - as is both the importing or exporting of
electricity.
In recent years, nuclear power has grown to
become a major source of electricity generation in
Japan and nuclear technology now supplies more
GREENER IS THE WAY
New regulations and the Kyoto protocol also
appear to be paving the way for Wärtsilä marine
engines. “New emissions regulations are expected
in 2010. High fuel prices and the enforcement of
new international regulation such as Common
Structural Rules (CSR) for tankers will actually
favour, for example, modern electronicallycontrolled Wärtsilä two-stroke engines and the
dual-fuel diesel-electric concept, says Ryu Onishi,
General Sales Manager, Wärtsilä in Japan.
After a rough slide in its market position at the
beginning of the new millennium, Wärtsilä has
steadily recovered to achieve a 17% market share
in two-stroke marine engines. The pace of recovery
is expected to accelerate with the introduction of
Wärtsilä RT-flex electronically-controlled commonrail technology.
“RT-flex engines are now being adopted by
major Japanese shipowners and continue to win a
broader market base among shipyards and smaller
domestic shipowners”, says Erwan Dacquay,
Technical Manager, 2-stroke Engines, Wärtsilä in
Japan.
Even though the Japanese market has
always had a conservative mindset, shipowners
have become increasingly concerned about
environmental issues and are now taking action to
improve their green image.
Energy sources in Japan
(DAILY CONSUMPTION)
PEAK LOAD
Hydraulic (Pumping)
Hydraulic (Storage)
INTERMEDIATE
LOAD
Oil
Gas
Coal
Nuclear
BASE LOAD
Hydraulic
0
2 4 6 8 10 12 14 16 18 20 22 24
SOURCE: FEDERATION OF ELECTRIC POWER COMPANIES OF JAPAN
finance & business world
[ M A R K E T R EV I EW ]
04.2
042
Future forces
are changing R&D
A U T H O R : M AT T I K L E I M O L A
IN THE COMPETITION for global business, concepts
The
engineering
industry is
becoming a
provider of
customer value
and solutionrelated
services.
Professor Matti Kleimola
acts as a Senior Advisor in
matters related to technology
to the Board of Management
at Wärtsilä Corporation.
and solutions are as important as products. The
engineering industry is currently undergoing a
dramatic transition from providing products and
solutions to being a provider of customer value and
solution-related services.
The scope of business concepts is expanding,
favouring a knowledge-intensive and value-critical
approach to product lifecycles. As a result of this
development, companies are moving closer to their
customers. This shift brings with it the need for new
product concepts and service models.
Research is generally considered to be a major
driving force in technological, economic and overall
social development. Also, the ongoing processes
of globalization, which highlights the role of
international competition, business and commerce
based on high technology, and the production and
application of new knowledge, further underscore
the role of research in entirely new ways.
Research and development is one of the key drivers
of productivity growth. International evidence
suggests that high levels of R&D support growth
that is strong and stable. Key changes are under way
in how and where R&D is carried out. Forces likely
to drive R&D in the next decade are as follows:
Customers will have a central impact on R&D. The
information revolution will continue to enhance
the power and influence of consumers in the
marketplace. Both consumers and customers will
take a stronger role in driving product and service
innovations, and this will have an impact on prices,
new features, and the choices available.
Global private-sector companies will take on more
R&D. Most business-funded R&D will be fostered
and paid for by large multinational firms.
R&D will both disperse and be concentrated in
geographical terms. A key principle in R&D strategy
is to carry out the most important innovation work
in R&D centres or clusters where cutting-edge
research and experimentation is being performed.
Global spending on R&D should continue to grow
faster than world GDP.
Control the product and process ideas. Some
companies put their trust in their ability to convert
innovations into practice more effectively than
others. They seek out and emphasize innovations
that focus on improving operations and customer
care.
New ideas will come from outside. It is necessary to
open a company to new ideas arriving in a variety
of formats from a variety of sources (i.e. open
innovation). Winning companies will be those
that are most effective at translating such ideas into
marketable products and services.
– Good demand continued
AUTHOR: JOSÉPHINE MICKWITZ, IR MANAGER
The third-quarter of 2006 was yet another good
quarter for Wärtsilä. Net sales totalled EUR 766.8
million, representing growth of 26.2% compared
to the corresponding period in 2005. Operating
income for the third quarter increased to EUR 56.3
million (43.5), 7.3% of net sales (7.2). Earnings per
share totalled EUR 0.44 (0.32).
Demand in main markets continued strong. Orders
received by the Group during the first nine months of
2006 totalled EUR 3,303.5 million (2,390.6), growth
of 38.2% compared to the corresponding period
in 2005. In the third quarter, order intake totalled
EUR 1,090.0 million (870.8), 25.2% higher than in
Q3/2005. Most new orders during the third quarter
were booked by the Ship Power business, where the
order intake totalled EUR 490.0 million (361.5),
35.5% up on Q3/2005. The offshore segment
was dominant in ordering activity but significant
orders were also received in the gas carrier and cruise
segments. In the Power Plants business, order intake
was 22.2% up on Q3/2005 at EUR 335.0 million.
Order intake for gas-fired power plants was strong.
At the end of the third quarter, Wärtsilä’s order book
stood at EUR 4,108.2 million, which gives us good
visibility for the years to come.
Key ratios
EUR million
Order intake
Ship Power
Services
Power Plants
Net sales
Ship Power
Services
Power Plants
Operating income
% of net sales
Income before taxes
EPS, EUR
Q3/2006
1,090.0
490.0
265.9
335.0
766.8
183.8
312.0
274.2
56.3
7.3%
61.4
0.44
Q3/2005
870.8
361.5
234.4
274.0
607.8
158.0
273.4
176.4
43.5
7.2%
36.9
0.32
1-9/2006
3,303.5
1,651.0
934.2
715.9
2,203.7
580.4
916.1
706.4
162.4
7.4%
305.5 2)
2.59
Market activity predicted to remain good in the
near future. High energy prices are accelerating
investments in energy-related industries and demand
in all energy-related segments is expected to continue
on a high level. Although some warning signals are
visible, global shipbuilding is sailing at full steam
ahead. Wärtsilä expects ordering activity to remain
lively in the next six months and there are no
immediate signs of a drastic market deceleration.
In the Power Plants market, Wärtsilä expects the
situation to remain good in the following six months,
with high oil prices working in favour of the Group’s
products and solutions.
Wärtsilä’s prospects in 2006 and 2007. Demand
in the ship power and energy markets looks likely to
remain favourable for Wärtsilä for at least the next
six months. Based on a strong order book, net sales
by the Group are expected to grow more than 20%
in 2006. The level of profitability achieved in 2005
will remain. Supported by the strong order book
and lively ordering activity, net sales by the Group in
2007 are expected to be some 10-15% higher than
net sales in 2006. Increased capacity available from
mid-2007 will allow further growth in 2008.
1-9/2005
2,390.6
1,070.3
798.8
518.6
1,746.8
444.8
778.1
516.6
116.4
6.7%
129.4 1)
1.05
2005
3,491.1
1,545.3
1,077.1
865.2
2,520.3
710.3
1,093.1
710.3
202.5
8.0%
212.4
1.80
Net sales
expected
to grow
more
than 20%
in 2006.
1) The figure in the comparison
period includes Imatra Steel’s
pre-tax profit of EUR 21.4 million
and Wärtsilä’s share of the
Ovako profit after taxes (EUR 9.6
million).
2) The January-September 2006
result includes Wärtsilä’s share
of Ovako’s profit after taxes,
(EUR 18.1 million) and a capital
gain of EUR 123.9 million from
sales of Assa Abloy B shares.
FOR MORE FINANCIAL INFORMATION, PLEASE VISIT WÄRTSILÄ’S INVESTOR SECTION AT WWW.WARTSILA.COM.
[ FACTS A N D F I GU R ES ]
2006
THIRD QUARTER
[ I N - D E PT H ]
in-depth
WORLD’S
MOST
POWERFUL
ENGINE
ENTERS SERVICE
TEXT: DAVID BROWN PHOTOS: AP MOLLER MÆRSK,
SØFART/SØREN L. HVIID AND WÄRTSILÄ
Superlatives abound for the new
container ship M/S EMMA MÆRSK
and its Wärtsilä low-speed main
engine. The ship is the world’s
largest container vessel. It is also
the longest and widest.
in-depth
PROPELLED
by the world’s first 14-cylinder
in-line engine, the M/S EMMA
MÆRSK has a capacity of 11,000 TEU. Manufactured under licence
by Doosan Engine Co Ltd in Korea, the Wärtsilä 14RT-flex96C lowspeed engine is also the world’s most powerful reciprocating engine,
developing a maximum continuous power output of 80,080 kW, or
108,920 bhp at 102 rpm.
The first of a new series of 11,000 TEU container liners being built
for the Danish A.P. Moller-Maersk Group by Odense Steel Shipyard
Ltd in Denmark, the M/S EMMA MÆRSK entered service on 1
September 2006.
The 14-cylinder Wärtsilä RT-flex96C engine is a major
breakthrough in ship propulsion. It extends the power available to
suit the new generation of large containerships while combining the
benefits of proven, reliable engine designs with the complete flexibility
of RT-flex electronically-controlled common-rail technology.
Traditionally, low-speed marine engines have been built with a
maximum of 12 cylinders. When it was recognised some years ago
that container ships on the drawing board would need more power
than was available from existing RTA96C and RT-flex96C low-speed
engines, a solution was found to extend the engine power range to
80,080 kW by also offering 13- and 14-cylinder designs.
The 14-cylinder RT-flex96C is therefore based on a well-established
12-cylinder RT-flex96C design, which was itself developed from the
THE WÄRTSILÄ RT-FLEX 96C
ENGINE IS A MAJOR
BREAKTHROUGH IN SHIP
PROPULSION.
RTA96C engine type widely applied in container ships since 1998.
It thus benefits from a wealth of service experience with engines of
the same type. To date there are more than 340 RT-flex96C and
RTA96C engines in service or on order worldwide.
Adaptation for 14 cylinders. Extensive consideration was
nevertheless given to the practicality of adding to the number
of cylinders and ensuring that the engines match everyone’s
expectations in terms of safety, reliability and durability.
As regards the engine structure, when adapting the RTA96C
engine type to accommodate the RT-flex common-rail system,
the opportunity had already been taken to introduce certain
modifications on engines with all cylinder numbers to improve
methods of manufacture and provide greater stiffness while reducing
structural stresses. The revision also took account of 14-cylinder
engines to ensure they would have adequate structural strength and
rigidity without requiring any further modifications.
p
in-depth
Official shop test of
the first 14-cylinder
Wärtsilä RT-flex96C in
the works of Doosan
Engine Co Ltd, Korea,
in November 2005.
The long shaft
driving the
propeller.
The crankshaft of the RT-flex96C has sufficient torque capacity
for 14 cylinders as the material has been upgraded to allow an
increased shrink fit for a greater design margin. The thrust-bearing
structure in RT-flex96C engines with a mid-gear drive has been
revised to reduce deformations and stresses – even with the increased
levels of thrust in a 14-cylinder engine when the vessel it powers is
equipped with a shaft motor.
Wärtsilä RT-flex common-rail system. The fully
electronically-controlled Wärtsilä RT-flex common-rail system
of the 14-cylinder engine brings shipowners important benefits.
It gives unrivalled flexibility in the way the engines operate,
resulting in smokeless operation at all operating speeds, lower
fuel consumption, lower emissions, reduced maintenance costs
and lower steady operating speeds for better manoeuvring. The
RT-flex system also has the potential for adaptation to future needs.
A clearly visible feature of the 14-cylinder RT-flex96C is the
modest size of the compact supply unit compared with the overall
dimensions of the engine, and the absence of the full-length
camshaft which is a usual feature of mechanically-controlled
engines. The supply unit with its fuel and servo oil-supply pumps
M/S EMMA MÆRSK is
397 m long and 56 m wide.
p
in-depth
THE RT-FLEX ENGINE GIVES
UNRIVALLED FLEXIBILITY IN THE
WAY THE ENGINES OPERATE.
High-efficiency
waste heat recovery
Major savings in fuel consumption and
reductions in exhaust gas emissions
are achieved in the M/S EMMA MÆRSK
through the vessel’s high-efficiency waste
heat recovery (WHR) system.
Exhaust gases from the ship’s main
engine pass through an exhaust-gas
economiser to generate steam that
drives a turbine-driven generator. The
turbogenerator set also includes an
exhaust-gas power turbine driven by a
portion of the exhaust gases diverted
from the main flow through the engine’s
turbochargers. The nominal output capacity
of the turbogenerator is 8.5 MWe. Highefficiency WHR plants of this type can,
however, provide electrical outputs of
as much as 12% of main engine power,
delivering equivalent savings in fuel
consumption and reductions in exhaust
emissions.
Electricity generated by the
turbogenerator is supplied to the main
switchboard and employed in providing
both shipboard services and additional
propulsion power via two shaft motors.
Some of the steam from the exhaust
economiser is utilised to provide shipboard
heating services. There are five auxiliary
diesel generating sets with a combined
capacity of 20.7 MWe.
A major electricity requirement comes
from the ship’s extensive capacity for
carrying refrigerated cargo. Power sockets
are provided for 1000 forty-foot containers.
In the high-efficiency WHR plant, energy
recovery is maximised by adapting
the engine to use the lower air-intake
temperatures available by drawing intake air
from outside the ship (ambient air) instead
of taking it from the ship’s engine room. As
the engine turbochargers are matched to
the lower air-intake temperatures, energy
extracted from the exhaust does not affect
air flow through the engine. The benefits of
greater waste heat recovery are therefore
achieved without increasing the engine’s
thermal loading and with no adverse effect
on engine reliability.
TEXT: DAVID BROWN
The top of the engine
on board of the
M/S EMMA MÆRSK.
is on the engine side, at the mid position on a mid-gear drive.
The supply unit delivers high-pressure fuel oil and servo oil to
two identical seven-cylinder rail units located along the side of
the cylinder tops.
Wärtsilä also supplied the vessel with a set of JMT Airguard
4AS-B sterntube shaft seals and ten JMT shaft bearings for the
long propeller shaft line. In the Airguard 4AS-B sealing system,
the after seal has four lip-type seal rings with a compressed air
barrier to ensure security against oil leakage from the sterntube,
providing high reliability and long life. At the forward end of the
stern tube the seal is equipped with two lip-type seal rings. The
shaft bearings are of a spherical type, specially designed to cater for
the displacements experienced with long intermediate shafts.
AUTHOR IS MANAGER, MARKETING SUPPORT
WÄRTSILÄ IN SWITZERLAND
R&D
INNOVATION
Research & Development
T E XT: DAV I D B ROW N
P H OTOS : W Ä RTS I L Ä
Lubricator
Tank
Cylinder
Remote control system
Alarm monitoring
Filter
CAN bus
WECS
Dosage
pump
Junction
boxes
Power supply
In PLS, both
the feed rate and
timing of cylinder
lubrication are
electronically
controlled.
Cylinder oil pipe
Servo oil pipe
Servo oil return pipe
CUTTING CYLINDER LUBRICATION COSTS
Costs for cylinder lubricating oil in Wärtsilä low-speed engines will
be considerably reduced by a new, electronically-controlled system
- the Wärtsilä Pulse Lubricating System (PLS).
his new system reduces cylinder oil
consumption without compromising
piston-running reliability by improving the
distribution of cylinder lubricating oil to cylinder
liners and the fully-flexible, precise timing of
oil delivery. The guide feed rate for Wärtsilä
RTA and RT-flex engines equipped with PLS
as original equipment is 0.7 g/kWh of cylinder
lubricating oil.
In the case of a 12-cylinder Wärtsilä RT-flex96C
engine of 68,640 kW output running at 85%
load for 7000 hours/year and using cylinder oil
T
delivered under pressure to the lubricators by
a newly-developed dosage pump powered by
pressurised servo oil drawn from the engine’s
system oil. Both feed rate and timing are
electronically controlled via a solenoid valve
located at the lubricator pump. There is full
flexibility in setting the lubricator timing point,
and volumetric metering ensures constant spray
patterns across an engine’s load range. The
dosage of lubricating oil is precisely regulated
even at low feed rates.
As liner surface temperatures in RTA and
RT-flex engines are above the dew point, there is
no provision in PLS for variation of feed rate with
respect to the sulphur content of fuel. For bunker
fuels with levels of sulphur above 1.5%, no PLS
adjustment is therefore required.
that costs USD 1700/ton, the reduction from
the guide feed rate of 1.1 g/kWh with an existing
accumulator system to the new guide feed rate
of 0.7 g/kWh can result in annual cost savings of
more than USD 270,000 – corresponding to a
36% saving in the costs of cylinder lubricating oil.
FULLY-FLEXIBLE, ELECTRONIC CONTROL
The key feature of PLS is that it delivers accuratelymetered, load-dependent quantities of lubricating
oil to the cylinder-liner running surface at
precisely the right moment. Cylinder oil is
AVAILABLE FROM JANUARY 2007
Service experience with PLS has proved very
successful with excellent liner and piston ring
conditions, and all tests have been made with
feed rates of 0.7 g/kWh or below. Trials have
been carried out using the Wärtsilä test engine in
Switzerland since June 2003 and on shipboard
engines since July 2004. Shipboard testing now
totals more than 18,000 running hours.
PLS will be available from January 2007
for newly-built RT-flex96C and RTA96C,
RT-flex84T-D and RTA84T-D engines. Retrofit
PLS is available now for RT-flex96C and RTA96C
and from January 2007 for RT-flex84T-D and
RTA84T-D engines. Additional engine types will
be added in 2007 for both versions.
Before PLS was launched in Hamburg in
September 2006, orders had been received for
complete Retrofit PLS in 25 engines. The first
retrofit was completed that month in M/S Cosco
Shenzhen, a 7500 TEU containership managed
by E.R. Schiffahrt GmbH & Cie KG of Hamburg.
AUTHOR IS MANAGER, MARKETING SUPPORT,
WÄRTSILÄ IN SWITZERLAND
[RETROFIT ALSO AVAILABLE ]
PLS is also available for
retrofit to existing RTA and
RT-flex low-speed engines. The
major cost savings mean a quick
return on the capital invested.
1.
2.
Retrofit PLS can be fitted to
existing cylinder liners using
hardware like that used in new buildings,
and installation can take place during
a ship’s normal commercial operation.
All the required equipment,
including prefabricated
piping, is supplied. Installation and
commissioning are performed by
Wärtsilä service engineers.
3.
infographics
WÄRTSILÄ BIOPOWER’S
BIOGRATE
[ I N FO G R A P H I C S ]
TOWARDS A MORE SUSTAINABLE WORLD
Biomass has fuelled the development of human civilization
since fire was discovered and the use of biomass is now
growing in both domestic and industrial applications.
Steam
Turbine Generator Unit
Condensate
Cooler
Area Heating
Coolant
Condenser
Flue Gas
Fuel Conveyor
Condenser
Feed Water Tank
Boiler
Precipitator
Bio Fuel
Fuel Storage
BioGrate
W
ärtsilä Biopower supplies biomass-fuelled power
plants that meet each customer’s precise needs.
Biomass is on the verge of a renaissance. In efforts
to reduce global warming by using CO2-neutral fuels - as
required by the Kyoto Protocol - biofuels are becoming the
natural choice.
CUSTOMER-ORIENTED DESIGN
Wärtsilä BioPower plants produce both electricity and
heat using wood-based fuels such as residues from the
harvesting of forests, wood chips, bark and sawmill waste.
Wärtsilä’s patented BioGrate, the core of every Wärtsilä
Biopower plant, can burn fuels that have moisture contents
of as much as 65% without requiring any auxiliary fuel.
Representing state-of-the-art combustion technology,
the BioGrate is a rotating design with a conical primary
Ash Containers
combustion chamber in which fuel is fed to the centre
of the grate from below. Since heat is radiated from the
refractory lining bricks as well as from the flames of
combustion, the fuel is dried off in the middle of the
grate without disturbing the burning bed of fuel in the
combustion zone. Fuel is spread evenly over the grate,
and the grate area itself is divided into several rotation
zones which incorporate three to five rotating rings
and two to four fixed rings. The unique conical shape
of the grate means that burning is maintained at an
even and optimal temperature. After the fuel has been
completely combusted, the resulting ash falls from the
edge of the grate into an ash space which is filled with
water. Fly ash is removed from the flue gases using
an electrostatic filter. At the top of the grate, a boiler
produces steam that is used to drive a turbine.
T E X T: W Ä R T S I L Ä
I L L U S T R AT I O N : S T E WA R T G R AY
FUEL HANDLING
THE KYOTO PROTOCOL
In biomass-fuelled plants, the fuel properties are the
basis for plant design. The main factors contributing
to uninterrupted plant operation are use of the correct
combustion technology and a properly-designed
system for fuel handling and supply. Individual fuel
components can be mixed in an interim storage
system which has sectional and automated fuelfeeding devices, an arrangement that allows the use of
non-homogenous fuel components still maintaining
efficient and clean combustion. In common with the
other components in Wärtsilä Biopower plants, the
system is highly automated, permitting unmanned
operation with daily visits.
Currently, almost a hundred BioGrates are operating
in Wärtsilä BioPower and BioEnergy plants in
Scandinavia, the Baltic Countries, Europe and Russia.
Under the Kyoto Protocol, the European Union has
set a goal of doubling the use of renewable energy
sources in percentage terms as a proportion of total
primary energy use. Measures include, for example,
a ten-fold increase in electricity production based
on renewable fuels by 2010. As patented BioGrate
combustion technology offers a new level of
performance in terms of low emissions - both NOx
and CO emissions meet the strictest requirements
- Wärtsilä Biopower has a solution for a more
sustainable world.
Using the state-of
the-art combustion
technology, the
patented BioGrate
employs a multirotational design and
is the core of Wärtsilä
Biopower plants.
Master
of the green hills
[ PASS I O N ]
Riikka Hakkarainen is an advancing
professional. What does it take to grasp
the body and mind of golf?
passion
Persistence gets you a long way. “For some, it takes only
a few years to reach their peak, for others it’s a process
that takes several years. Traditionally, top professional
golfers have been well over thirty, Tiger Woods has broken
the mould.”
Half of Riikka’s time is spent practising, half goes
on competitions. With the ground frozen for a good
part of the year, Finland isn’t exactly an ideal location
for a thriving golf professional. Practising has to be
done elsewhere. For Riikka, it’s mostly in the U.S.
and Spain. Travelling for 300 days a year is something
worthy of respect. “It’s certainly given me an
understanding of how different outlooks on life can
work equally well.”
I WISH YOU WERE HERE. It’s such a soothing sight.
Anyone besotted by this challenging and oh-so-green
pastime would be happy to walk in the crisp air among
the cherished oak trees, hills that easily be full of Hobbits,
and manor buildings built more than a century ago. Even
though the traffic mêlée of Helsinki is only a stone’s throw
from the Tali golf course, it’s still almost silent here, apart
from occasional satisfying pings as players’ woods send golf
balls flying.
People getting ready for a late afternoon round of golf
nod their hellos to a young woman carrying her golf bag
- and the air of a true professional. One or two would
like to obtain a few tips for their exercise routines. Riikka
Hakkarainen, 29, has just flown in from Austria, one of
the several - 22 to be exact - tournaments on the European
Ladies Tour.
Her handshake is very firm. So is her gaze, concentrated,
confident. For Riikka, who has played golf professionally
since 1997, this year and last have been groundbreaking.
Winning the Tenerife Ladies Open in April has been the
high point of 2006.
Competence with daily support from doing. Most of
the really hard work takes place during spring, well before
the tough summer season. “Building the right feel takes a
long time.” On competition days, she gets up some three
hours before each start, does a set of Pilates and then
moves to the practice area to hone different shots. The
whole routine takes four to five hours – and after each
competition, she continues practising. When she’s not
competing, training occupies the whole day, with jogging
and lifting weights to accompany the golf.
Riikka has worked with three coaches in her
career. Timo Karvinen, who just happens to be her
husband, has been Riikka’s primary coach since her
teens. Chuck Cook offered fresh insights for a couple
of years. “Some professional golfers like to switch
coaches as much as once each year. I think that as far
as coaches are concerned, it’s essential to know what p
TEXT: MINNA TAKKUNEN
PHOTOS: TOMMI TUOMI
passion
you want and then have the mindset to get it. While I
was working with Chuck, it often surprised me how he
came up with the exactly the same ideas as Timo.”
Juri Hanin, who has worked with Finnish javelin
heroes, guided Riikka through some mental coaching.
“Juri emphasised the competitive mentality, which
actually means different things in different sports. The
aggression you pump up in other sports turns against
you in golf. Juri was surprised when he discovered that
rather than intense emotions, an inner state of peace
and joy is the best mental diet for golfers.”
When she has fun, she means business. Finding the
right balance between a well-rehearsed focus and a relaxed
attitude is the name of the game. “If you’re trying too
hard, it shows immediately in your play. Also, if you’re
not enjoying your game, the results reflect that. There’s
no point in playing if you’re not having fun.”
Golf demands that many things click at a single
moment in time. Getting it just right is linked with
careful analysis. This where the sense and sensibility,
the body and mind of golf, meet. With driver in hand,
a professional absorbs the surroundings. Where and
how is the wind moving? How can the differences in
elevation be made to work in your favour? On what
type of surface will the ball land, will it bounce or stick?
And if that first shot isn’t perfect, the mercy of golf
is that a lack of excellence in one element can easily be
compensated by excellence in others, making the overall
picture strong. For Riikka, it’s in putting that she excels.
There’s never a dull moment in golf. “There are
so many variations - in courses, weather, and all the
conditions that keeping the game interesting.”
A beautiful domino effect. “I remain committed because
I have continued developing. The will to succeed feeds
the flame, and success pours on more fuel.”
How about her favourite golf courses? Terry Hills
near Sydney in Australia is one of the most beautiful
that Riikka can think of. In Finland, the short golf
season means that she finds herself fairly often at the
well-maintained Kytäjä Golf course, some 60 kilometres
from Helsinki.
“More and more families are getting into golf, it’s
such a good way to spend time together,” says Riikka,
her delight obvious. But it has also been amusing, with
lots of fresh faces on the greens. “Newcomers often clap
at you just popping the ball out of a bunker.”
Polishing skills is gorgeously endless. “Knowing that
you can never be too good keeps me going.” She has a
healthy appetite for winning. “Even when I play simple
card games against my computer, my hunger to win is so
very strong”, says Riikka, her face lighting with a smile
which tells you she has that promising something. Just
watch her.
“Getting it
just right
is linked
with careful
analysis.”
solution
Multi-purpose floater
CHANGES
THE RULES
MPF Corp is building the
world’s biggest and most
versatile drill ship, a multipurpose floater. Wärtsilä is
providing the vessel’s
eight diesel engines, and a
great deal more – such as
automation.
for several reasons, or perhaps just one - money. New
technologies make it possible to build bigger vessels that
can drill farther and deeper into the ocean seabed, and
explore, drill and produce oil in environments where the
conditions are harsher than ever.
At the beginning of the current decade, when oil
prices were low, incentives for pursuing these kinds of
opportunities and making the necessary investments
were few. The recent rise in oil prices and supply-side
bottlenecks - such as a lack of drilling units - mean
that oil companies are now looking for a competitive
edge, driving forward the development of large multipurpose floaters.
Harsh-environment FPSOs (Floating Production,
Storage and Offloading units) and the fact that most
new large oil fields are being discovered in deep water
have opened a window of opportunity for MPF Corp.
Ltd. Many companies are now prepared to venture into
harsh and deep-water environments, and a number of oil
fields are being developed in Brazil, Canada, the Gulf of
Mexico, India, Norway, South East Asia and West Africa.
Simultaneous drilling and production. Under
development by the Norwegian oil-service entrepreneur
Wilhelm P. Blystad since the middle of the 1990s,
the Multi Purpose Floater (MPF) concept is designed
for simultaneous drilling and production in harsh p
TEXT: RISTO PAKARINEN
ILLUSTRATION: MPF CORP.
[ SO LU T I O N ]
There is a clear trend towards drill ships
solution
environments that include ultra-deep water. The world’s largest
and most versatile drill ship, the MPF 1000, combines floating
production, storage and offloading with drilling. The 290-metre
long vessel can store a million barrels of oil.
Scheduled for delivery by the end of 2008, the total cost of
MPF 1000 is close to EUR 500 million. Wärtsilä’s share of this
sum is more than EUR 50 million.
“The ultimate goal for this vessel is to simultaneously produce
and drill for oil and gas, helping oil companies generate cash
flow at an earlier stage in the exploration and production process.
Normally, an operator would need to drill for oil, test the well,
shut down the drilling rig, bring in a production unit, and then
send the drilling vessel away,” says Eivind S. Bugge, Managing
Director of MPF Corp, Norway, a Norwegian subsidiary of the
Bermuda-registered company.
[ SO LU T I O N | E P C P ROJ ECT ]
The MPF 1000 has a dead
weight of 170,000 tons, a
displacement of 222,000 tons,
a variable deck load capacity
of 35,000 tons and 10,000 m2
of available deck space topside.
The MPF 1000’s double-function
drilling rig has a 15,000-metre
reach and can operate in depths
of up to 3,000 metres.
Starting oil production earlier. “With the MPF 1000, an
operator can start producing oil at a much earlier stage than in
traditional systems. We have seen both drilling rigs and other
equipment that have been continuously available for oil extraction
in the North Sea, with the result that utilization rates are much
higher. Compared to the latest generation of semi-submersible
rigs, the sheer size of the MPF 1000 means it has a considerably
higher deck load capacity and a lot more available deck space.”
When the stakes are as high as this, everything has to perform
as specified. Bugge stresses MPF’s approach to quality. “Systems
and engines must be of high quality and should last for many
years to meet the vessel’s classification of a minimum of 30 years
of operation. Wärtsilä’s well-known diesels are a big plus in this
respect, and we are very happy to have acquired these engines in
a period of high demand,” he says.
For Wärtsilä, cooperation with MPF Corp is special for a
number of reasons. In addition to providing eight diesel engines
with a combined power output of 58,880 kW, generators, eight
underwater demountable thrusters, medium-voltage switchgear,
low-voltage distribution boards and frequency converters, Wärtsilä
is also supplying safety and automation systems (including
emergency shutdown, fire and gas, power management and vessel
automation), a DP3 dynamic positioning system, thruster control
and information management systems.
Enabling turnkey solutions in the marine sector. Automation
systems are used for supervising and controlling the drills and
drilling equipment, power supplies, pumps, and conditions
in the crew’s living quarters. The automation part of the MPF
1000 contract is a new departure for Wärtsilä, opening up future
opportunities in the delivery of turnkey solutions for marine
applications. In the power plant world, Wärtsilä has been doing
this for a long time, from turnkey deliveries to running and
operating complete plants.
“Traditionally, we haven’t included automation systems in the
scope of delivery in our marine business,” says Pekka Ahlqvist,
Vice President, Automation, Wärtsilä. “On the power plant side p
solution
COMPARED TO THE LATEST GENERATION
OF SEMI-SUBMERSIBLE RIGS, THE MPF 1000
HAS A CONSIDERABLY HIGHER DECK LOAD
CAPACITY AND A LOT MORE DECK SPACE.
State-of-the-art drilling
equipment allows parallel
activities and efficient
operation. The MPF 1000’s
ability to store a million
barrels of oil and its
potential topside production
capacities can significantly
improve field economics.
solution
automation is included, so our new focus in automation
is on vessels and the offshore market. We are looking to
broaden the scope of the services we provide - Wärtsilä
Automation covers a lot more than just automation and
includes complete electricity systems,” he says.
The automation component in Wärtsilä’s product
portfolio was strengthened by the acquisition of Wärtsilä
Automation Norway in the beginning of 2006. ”This
acquisition supports our overall approach. While some
of our competitors can offer fairly comprehensive
solutions, the MPF 1000 offshore drilling vessel project
is so big that very few companies can offer as much we
do,” says Ahlqvist.
“We’re not aiming to become a manufacturer of general
automation products and devices. We will focus on
applications, and utilise our existing strengths in project
management and engineering. Although we’ll manufacture
some strategic elements, most products and system
components will be purchased from external suppliers,”
he says.
More from each supplier. According to Ahlqvist,
deliveries for the MPF 1000 comprise the largest single
automation project that Wärtsilä has delivered to date.
Opportunities resulting from the deal could be farreaching. That is what he is actually hoping. “In the past,
projects have been divided into smaller pieces, but we
want to change that way of thinking,” he says.
And Bugge has nothing against that. “Our aim is to
reduce the number of suppliers that we as a company
have to relate to and it was therefore important for us that
Wärtsila could cover the complete scope of this project on
the power generation, propulsion and automation side,”
he says.
While the MPF 1000 is MPF Corp’s first multi-purpose
vessel, it is hopefully not the last, says Bugge. Already
more than ten years old, the multi-purpose floater concept
is finally coming to fruition. MPF Corp is working hard to
build up momentum, and making preparations to deliver
additional vessels to a market they believe is growing.
Once vessels are available, MPF Corp’s plans include
offering vessel operation with the company’s own resources,
and providing customers with turnkey projects.
THE MPF 1000
OFFSHORE
DRILLING VESSEL
IS WÄRTSILÄ’S
LARGEST
AUTOMATION
PROJECT SOFAR.
Twentyfour7.
inside
A little extra
on the side
CONTENTS
ANCILLARY
54 SERVICES
54 BALANCING ACT 57 MINIMIZING LIFECYCLE IMPACT 58 INDIA’S LARGEST GAS-POWER PLANT
60 INDIAN MARINE BUSINESS 63 CUTTING-EDGE FERRIES 64 SERVING CHINA’S SHIPBUILDERS
k 67
SAVING FUEL BY IMPROVING EXISTING PROPULSION SYSTEMS
[ ANCILLARY SERVICES ]
[ INSIDE ENERGY ]
Twentyfour7.
T E X T: L E N A B A R N E R - R A S M U S S E N | P H O T O S : W Ä R T S I L Ä
A market for ancillary
services is emerging
in the United States.
[ABOVE]
Flexible plants which can
run efficiently at part
load allow operators to
sell the ability to rapidly
accept additional load.
[RIGHT]
A LITTLE EXTRA ON THE SIDE
the US electricity market has found itself
in a constant process of transition. One feature of the redefined
industry is the emerging market for ancillary services. Wärtsilä
power plant technology is ideal for providing such services.
SINCE ITS DEREGULATION,
A
s it is not yet possible to store electricity, making sure that
fridges stay cool at all times means that a constant balance
must be maintained between grid load and the amount
of power generated.
Dispatchers are usually able to predict the need for electricity on
an hour-by-hour basis. But small variations in load which cannot
be accounted for in advance always exist. These small fluctuations
in the incremental demand for electricity have to be balanced by
power plants that continuously adjust their output. In the US, the
reserve capabilities that an electricity grid system needs to keep it
stable are referred to as ancillary services.
Traditionally, vertically-integrated utilities have maintained
this continuous balancing act as a normal part of their business.
Deregulation of the industry, however, has revealed a requirement
for both technical and commercial rules concerning ancillary
services.
[ INSIDE ENERGY ]
04.2006.
The pricing of ancillary services
REGULATION
Daily Load Pattern
SYSTEM LOAD (MW)
25000
Predictable daily load
pattern
22500
Random Regulation
requirements
20000
Regulation is not peak
shaving, interruptible
load, emergency
response, loadfollowing etc.
Regulation
22400
22350
22300
17500
22250
22000
8:00
8:15
8:30
8:45
9:00
15000
0:00
4:00
8:00
12:00
16:00
20:00
0:00
Profitable spinning
Ancillary services fall into two main groups. The first is the
normal services which are needed at all times to keep the
system frequency and voltage stable. The second is contingency
services – those needed when something goes wrong, such as
a large power plant having to be shut down.
Electricity is traded on an hourly basis and this gives rise
to price fluctuations. Power plants are not run unless the
market price covers their changing costs. On the other hand,
when a plant is capable of selling ancillary services, favourable
market conditions can substantially increase its profitability,
allowing operation at times when the energy profit would
be negative. For example, if the plant is flexible and capable
of operating at high levels of efficiency over a wide range of
loads, it can run on part load and sell its ability to rapidly
accept additional loading. This is an example of what is called
“spinning reserve”, an ancillary service currently sold in some
regions of the US.
An emerging market
There has been some discussion about who has the
responsibility to provide ancillary services – and who should
pay for them. Another issue is proper compensation for the
power plants that can provide such services.
Different countries have opted for different strategies. Most
European countries have chosen to have power producers
provide ancillary services and include the associated costs in
electricity bills. In the US, however, a market for this type
of service is emerging. ‘‘The US is the first country which
has provided a commercial framework for selling ancillary
services”, says Jussi Heikkinen, Marketing Director for
Wärtsilä Power Plants. p
Wärtsilä power plants
reach minimum load in
less than two minutes.
Selling ancillary services can substantially increase a
generator’s profits if the production of energy and ancillary
services is optimized.
Ancillary services are capacity services, not energy services.
In the main, costs consist of opportunity costs based on
generator capacity that must be withheld from the energy
market, and increased fuel costs resulting from the higher heat
rates associated with part-load operation.
To be able to provide and sell ancillary services, generators
must withhold capacity from the energy market, i.e. operate on
part load. The cost that a generator has to charge (or bid) to
supply ancillary services is based primarily on the difference
between the generator’s production cost and the energy
sale price for that hour. A generator with a production cost of
USD 50/MWh would bid USD 10/MWh to sell spinning reserve
if the energy price was USD 60/MWh. At any price higher than
USD 10 for spinning reserve, this particular generator makes
more profit by passing up the energy sale and selling spinning
reserve. Conversely, at any price below USD 10/MWh for
spinning reserve, this generator will lose money by staying out
of the energy market.
This makes the prices for ancillary service more volatile
than energy prices. For example, contingency reserve prices
are typically close to zero at night, when numerous generators
are running at minimum load and have capacity available at
essentially no cost.
The price unit for ancillary services is USD/MW per hour as
the generator is selling one MW of generating capacity for one
hour, not actual energy. In other words, the generator is ready
to rapidly produce additional electricity as and when needed.
REGULATION COST DRIVERS
Generators supplying regulation have some costs from
increased heat rates, and also from the wear and tear on
generating units that result from rapid load changes. But the
main cost comes in the form of opportunity costs associated
with manoeuvring in the energy market to ensure that capacity
is available to sell in the regulation market. For example, a
600 MW generator with a full-power energy production cost
of 15 USD/MWh would have to bid USD 27/MWh of regulation
if the energy market was clearing at USD 30/MWh. This is to
compensate the generator for profit lost in the energy market
when output is reduced to create sufficient manoeuvring
room to supply regulation, and to compensate for the reduced
efficiency (i.e. increased heat rate) associated with the
remaining output still being sold into the energy market.
CONTINGENCY COST DRIVERS
Because contingency reserves are deployed infrequently,
there is no significant reduction in heat rate and no increased
wear and tear on generating units as a result of frequent load
changes. The only costs incurred are the opportunity cost
resulting from withholding capacity from the energy market
and increased heat rates due to part-load operation.
The challenge is to decide how much capacity to offer to the
energy market and how much to the ancillary market, and at
what price.
TEXT: LENA BARNER-RASMUSSEN
[ ANCILLARY SERVICES ]
[ INSIDE ENERGY ]
Twentyfour7.
ANCILLARY SERVICE TIME INTERVALLS IN THE USA
Seven ancillary services
Voltage Control
Regulation
There are seven different ancillary services
which are commercially significant as possible
sources of income for generators. Wärtsilä’s
power plants cater to all of them.
Normal operations
Spinning Reserve
Contingency operations
Non-Spinning Reserve
Tertiary Reserve
Agreements
0,1
0,5
1
Time in Minutes
The market is however still in its infancy.
According to Heikkinen, extensive areas of
the US have no open hourly or daily market
for ancillary services. After studying the US
ancillary services market for more than a year,
his investigations show that the emergence of
such a market is of special interest to Wärtsilä,
since selling ancillary services on the open
market can earn additional revenue for the
owners of Wärtsilä power plants. ‘‘By selling
ancillary services, power plants can still make a
profit even when the electricity price is too low
to cover variable costs”, says Heikkinen.
A competitive alternative
Aeroderivative gas turbines have dominated the
US market for ancillary services, but the rapid
start-up ability and higher part-load efficiency
of Wärtsilä’s reciprocating engine technology
offers a competitive alternative.
One important feature is fast and reliable
plant start-up. Wärtsilä power plants exceed
current requirements by offering the ability to
start-up and reach minimum load in less than
two minutes. Another benefit is rapid loading.
Wärtsilä plants can offer 100% loading within
ten minutes of receiving the start command.
10
30
Wärtsilä power plants can also offer
flexibility when it comes to load range.
“Our power plants have a high part-load
efficiency over the whole load range. This
type of flexibility is important in maximizing
a plant’s profitability”, says Heikkinen.
Wärtsilä can also offer flexible plant sizing.
‘‘Expanding a power plant’s capacity is easy
if conditions change. This means that plant
size can easily be optimized to ensure that
the capital involved is being used efficiently,”
he says.
To date, Wärtsilä has sold four large gas
power plants in the US that are capable of
adding stability to the grid by delivering
ancillary services. One of the most recent
of these deals was closed in the spring of
2006 and involves the construction of a gas
power plant in northern California on the
site of what used to be a large nuclear power
plant.
The market for facilities of this type is
growing rapidly. ‘‘There’s pressure to build
more power plants, particularly in California.
And in the present market situation most
new power plants must be capable to produce
ancillary services,” says Heikkinen.
FREQUENCY REGULATION PRINCIPLE
Restore normal
SYSTEM
FREQUENCY
60 Hz
Limit deviation
5 – 30 sec.
Activate
PRIMARY
CONTROL
Free reserves
30 sec. – 10 min.
UCT: 2 * largest plant size (MW)
Take over
SECONDARY
CONTROL
30 min.
Free reserves
~ 1,5 % of installed grid capacity (MW)
Take over
TERTIARY
CONTROL
~ 5 % of installed grid capacity (MW)
NORMAL CONDITIONS
Regulation and load following are the two
services needed to continuously balance
generation and load under normal conditions.
Regulation reserves consist of online resources
that can respond rapidly to requests by system
operators for up and down movements.
They are used to track minute-to-minute
fluctuations in system load and to correct for
unintended fluctuations in generator output.
Load Following or Fast Energy Markets are
similar to regulation but slower. They work as a
bridge between the regulation service and the
hourly energy markets.
CONTINGENCY CONDITIONS
The spinning reserve, non-spinning reserve and
replacement reserve are capacity reserves that
are on standby, ready to respond in the event of
a power system contingency.
As it is synchronized to the grid and
online, spinning reserve can increase output
immediately in response to a major generator or
transmission outage. To be able to do this, the
capacity involved must operate on part load.
The non-spinning reserve works the same
way as spinning reserve but does not have to
respond immediately. Resources can be offline
but must still be capable of reaching agreed
output levels within a period of ten minutes.
Replacement or supplemental reserves
have a response time of 30-60 minutes. They
are used to restore spinning and non-spinning
reserves to their pre-contingency status.
Replacement reserve is not normally traded
on an hourly basis. It is typically based on
mutual long-term agreements.
OTHER SERVICES
Voltage control is an injection or absorption
of reactive power to maintain transmissionsystem voltages within required ranges. This
is a local issue and these services are seldom
sold on open hourly markets.
Black starts involve generation capacity
in the correct location that is able to start
itself without support from the grid. This type
of generation capacity has sufficient real
and reactive power capability and control
to be useful in energizing sections of the
transmission system and starting up additional
generators.
[ INSIDE ENERGY ]
04.2006.
[ ITALY BIOFUEL ]
WÄRTSILÄ BIO ENGINES
DRIVE ITALIAN GREEN POWER
T E X T: PAT R I K W H E AT E R
is to supply a
75 MWe liquid biofuel power
plant to the Italian city of
Acerra, not far from Naples.
WÄRTSILÄ
T
he EUR 60 million turnkey contract was awarded
by Fri-El Acerra Srl, an independent power
producer formed as a result of a joint venture
between Italy’s Fri-El SpA and the French company EDF
Energies Nouvelles.
The engineering, procurement and construction contract
includes not only the supply of four Wärtsilä 18V46 gensets
in a combined-cycle configuration to maximize electricity
production, but also everything else from the supply of a
fuel unloading area to grid connection systems. Wärtsilä
has also signed an eight year Operations and Maintenance
agreement for the power plant.
Once installed, the new plant will replace two gas turbines
and run on palm oil which, in part, will be obtained from
plantations owned by Fri-El. The facility is expected to be on
line and supplying power to the grid in October 2007.
Green Certificates for renewable energy sources
Fri-El, a specialist in power generation from renewable
energy sources, is expected to benefit from the “Green
Certificate” incentives introduced by the Italian government
to meet the requirements of the Kyoto Protocol. Emissions
of CO2 by the new plant will be practically zero, keeping it in
line with Italy’s target of reducing greenhouse-gas emissions
by 6.5% .
Each power generation plant that uses non-renewable
sources for energy production is currently obliged to produce
2.35% of its annual electricity production using renewable
sources. If a plant cannot comply with this requirement, it
must purchase Green Certificates for each 50 MWh of the
calculated 2.35% of annual output.
Power companies such as Fri-El that produce energy from
renewable sources will be awarded Green Certificates at
the same rate and will be able to sell these to other power
plants. In this way, owners of plants that produce low
levels of greenhouse gas emissions benefit twice from
their investment; firstly from selling electricity to the
national grid, and secondly from trading their Green
Certificates.
“The Fri-El plant is a major milestone for us within the
renewables market as it shows that we have built a
reputation in the market for our applications
and solutions,” says Marco Golinelli,
Vice President, Wärtsilä Power Plants
in Italy.
No need for fuel refinement
To minimize the lifecycle impact
on greenhouse gas emissions,
Wärtsilä liquid biofuel power
plants are designed to run on
straight vegetable oil, without
using any supplementary energy
for fuel refinement.
“Energy from liquid biofuels offers
important advantages,” says Golinelli. “Biofuels allow
the simultaneous generation of electricity and heat
with no sulphur emissions and no consumption
of fossil fuel resources. Since biofuels are classed
as renewable, no additional CO2 is emitted
and they thus contribute to a reduction of
the greenhouse effect.”
“This is one of the best ways of ensuring the
economic viability of ‘green’ energy projects in
Italy. Also, because of the high levels of overall
performance that can be achieved in power
plants which use medium-speed reciprocating
engines, it’s becoming an increasingly attractive
alternative for electricity generation,” says
Golinelli.
Currently, Wärtsilä has 25 MW of liquidfuelled biofuel plants in operation in Italy.
Including the Fri-El facility at Acerra, plants
with a total capacity of 230 MW are under
construction or on order.
[ INSIDE ENERGY ]
[ INDIA, ARKAY ]
Twentyfour7.
INDIA’S LARGEST N
GAS-ENGINE POWER PLANT
FOR MORE THAN TWENTY YEARS, Wärtsilä power
plants based on medium-speed engines have
been meeting the baseload power demand of
India’s industrial consumers and independent
power plants.
T E X T: M . C S U R E S H K U M A R | P H O T O S : W Ä R T S I L Ä
Electrical power generated at Arkay is fed into the grid
operated by India’s national transmission company.
ot only have these plants had to supply power
reliably, they have also had to ensure that the
costs of generation were lower than the grid tariff.
It was therefore critical to make use of fuels which were
inexpensive and available in good quantities.
Up until 2001, all medium-speed engines sold by
Wärtsilä in India were suitable for operation on heavy-fuel
oil (HFO), which was – and still is – the most inexpensive
liquid fuel available from refineries. Subsequently, when
natural gas became available in some parts of the country,
the market for Wärtsilä’s medium-speed, lean-burn gas
engines opened up. Developed in the 1990s, these engines
were already popular in Europe and America.
As the availability of natural gas was limited, usage
of this fuel was subject to a pecking order. Natural gas
discovered in the 1980s in the offshore Bombay High
region was transported through cross-country pipelines
passing through India’s western and northern states, and
mainly used in fertiliser plants, large gas-turbine power
plants and for transportation. In the first years, therefore,
few opportunities for power plants based on gas engines
arose. However, the onshore natural gas subsequently
discovered in parts of India’s Southern Region was not
available in quantities that would merit transportation to
fertiliser plants and large power plants and therefore became
available for use in smaller power plants of a size that suited
Wärtsilä’s medium-speed engines. These opportunities were
exploited and a significant number of gas engines were sold
in the period 2001-2004.
Group-captive plants generate enthusiasm
Another positive development was the passage of the
Electricity Act 2003. This removed many restrictions and
created an atmosphere that facilitated the establishment
of ‘captive’ power plants. It also encouraged the idea of
‘group-captive’ plants, a form of operation in which a
group of promoters and/or consumers come together and
jointly establish a captive power plant of whatever type
suits them best.
When the Gas Authority of India Ltd (GAIL), India’s
state-owned gas agency, announced that gas from isolated
gas wells in Ramanathapuram in the southern state of
Tamilnadu would be available, the promoter Arkay Energy
(Rameshwaram) Ltd responded to the tender and was
allotted a certain quantity of gas to set up a power plant
in this remote area. As there were no local industries who
could consume the power generated, some heavy consumers
in other parts of Tamilnadu were invited to participate
in the project, with the assurance that power would be
channelled through the high-tension lines of the state’s
national transmission company.
[ INSIDE ENERGY ]
04.2006.
As the Arkay power plant was located close to the gas
well, transportation charges were kept to a minimum
and the advantage of lower costs could be shared by all
consumers. Since this concept involved the twin benefit
of sharing the investment burden and savings in the cost
of delivered power, the response was quite enthusiastic.
GAIL’s preferential pricing on off-the-well gas for the
first few years, some 40% of the cost of HFO with a
corresponding calorific value, further improved the
viability of the project.
Increased flexibility and efficiency required
In an earlier venture at a nearby location that involved the
sale of power to the state-owned utility company, Arkay
had chosen to use a 52 MW combined-cycle gas-turbine
plant. This time, since power was being distributed to
different consumers with the requirement that generation
must be matched to consumption on a real-time basis,
Arkay felt that a higher degree of flexibility in operation
and higher levels of efficiency at different plant loads were
desirable.
The modular solution proposed by Wärtsilä based on a
20-cylinder configuration in the Wärtsilä 34 series offered
the best efficiency and lifecycle operating costs. This,
together with Wärtsilä’s capabilities regarding turnkey
execution and operations and maintenance of the plant,
convinced the promoter to select Wärtsilä as a partner.
The first phase was the installation
of ten Wärtsilä 20V34SG engines
together with a waste-heat-recovery
boiler and steam turbine for a
total plant output of 95.4 MW
(87.30 MW plus 8.10 MW
combined cycle). In Phase 2,
another two Wärtsilä 20V34SG
engines will be installed in 20072008, lifting the final installed
plant output to 112 MW.
Work on the project started in the
first quarter of 2005 and thanks to the superb teamwork
that characterises Wärtsilä’s delivery management process,
the plant was in commercial operation by March 2006.
With an efficiency of 43.8% and additional 3.93% from
the combined-cycle component, overall efficiency at the
facility reaches 47.78%.
national perspective, this also represents the most efficient
utilisation of resources:
• use gas straight from the well and thus avoid
transportation losses,
• burn the gas to produce power at the highest levels
of efficiency and lowest possible emissions,
• use the waste heat from exhaust gases to produce
additional power, and
• deliver power to consumers through high-voltage lines,
keeping transmission losses as low
as possible.
Multiple generating
sets offer higher levels
of operating flexibility.
“Overall
efficiency at the
Arkay plant
reaches 47.78%.”
Demand for multiple gas engines
Efficiency figures are much higher than the levels that
could have been achieved with simple-cycle turbines and
both flexibility and start-up capability also far exceed
what is possible with combined-cycle turbines. From a
The Arkay power plant has been
operated and maintained by
Wärtsilä personnel with a high
degree of reliability and excellent
levels of efficiency. As the local grid
in Tamilnadu is considered to be
reasonably stable, transmitting the
power over long distances has not
presented a problem.
With more gas discoveries on India’s eastern coast and
the promise of a national gas grid by 2008, the huge
demand for reliable, economical, clean energy means that
Arkay’s group-captive model based on multiple gas engines
can be replicated in other parts of the country. Another 24
MW group-captive plant is already under construction in
Malanpur in Madhya Pradesh in central India.
Many more opportunities are expected to appear and
Wärtsilä India is fully geared up to serve the needs of this
exciting market.
AUTHOR IS SENIOR MANAGER (SALES), WÄRTSILÄ IN INDIA
[ INDIA MARINE ]
[ INSIDE MARINE ]
Twentyfour7.
Shipshape in India
in India
goes back to the 1980s, making
the company one of the first
internationals to enter the
power-starved Indian market.
As the Power Plants business
now has an established position
in the country, Ship Power is
following in its footsteps.
WÄRTSILÄ’S PRESENCE
T
he Indian shipbuilding industry is said to be on
the verge of a boom. To date, development has
been moderate, but unquestionably upwards.
Over the last 10 years, the Indian government
has exhibited a new interest in supporting both
the domestic shipbuilding industry and foreign
investment. The privatisation of shipyards, opening
of the market, healthy local demand, top-level
technological know-how and a more efficient value
chain all pave the way to a business boom. On
the other hand, the same process is under way in
other markets - especially China. When it comes to
shipbuilding and the service offering that it requires,
what is it that makes the Indian market stand out?
T E X T: M A R J A B E R I S A | P H O T O S : W Ä R T S I L Ä
Towards a balanced market situation
“We’ve travelled a long way since the 1980s. India is
a very cautious and cost-conscious market, but we’re
at the point of no return. Shipbuilding-wise, the
government has, after a long period of overlooking
the industry’s potential, made policy changes that
encouraged the local shipbuilding industry, which
now competes in the global shipbuilding market,”
says Sanjay Verma, Head of Ship Power, Wärtsilä
in India.
“The balance between inviting foreign companies
into the domestic market and encouraging local
CCC Pioneer is equipped with five Wärtsilä 9L20 generating sets.
04.2006.
businesses to expand is a delicate one, and has at times
been tough. Certain market segments such as the Indian
Navy require large portions of the scope to be assembled or
produced locally, for the remainder of the market it makes
business sense to import equipment that is ready to install.
Even so, both shipowners and shipyards prefer to have
services that are provided locally”, says Rakesh Sarin, Head
of Services, Wärtsilä in India.*
Nevertheless, the past decade is a showcase example of
moving in the right direction. The legal system and regulations
have been clarified, and the amount of red tape has been
reduced. Tax incentives and investment programmes offer
advantages to the shipyards and shipowners who are operating
in the global market.
The Indian Navy also has an ambitious shipbuilding
programme. The length of the Indian coastline and the
number of natural harbours attract shipbuilders. Low
production costs, skilled people and the English-speaking
work force are well-acknowledged assets. India is also a
democratic market. Proximity to the main shipping routes
and its geographical location make India an ideal location
for ship repair and other services.
Smooth sailing and rough seas
“Naturally there are weaknesses as well. As a market for the ship
industry, India is not as well established as for instance Japan
and Korea. Also, our waterways aren’t that well developed
and we cannot yet compete with the infrastructure and
government support that’s available in China, for example,”
says Verma.
But some obstacles have become advantages. “You can
view population numbers from two different angles. With
1.2 billion people you get poverty and congestion. On the
other hand, these people need goods and services, and things
moving from A to B. That’s a blessing, as the economy is
picking up and creating local jobs and opportunities,” says
Sarin.
As for democracy, it comes in two flavours: freedom of
speech and freedom of movement - for goods and for people.
“I’d say these are something that sets India apart from its
biggest competitors. Add in dedication and education – the
strong human resources component – and things start to
look very good indeed.”
A business with a long lifecycle
Wärtsilä (Wärtsilä Diesel at that time) supplied its first
engine to India in 1983. The timing was advantageous as
Wärtsilä was among the first equipment suppliers in the
market. Competition was scarce, but so was the business
- in the beginning. Wärtsilä would provide an engine and
customers ran it. Providing power for ships was not a centre
of focus - Wärtsilä was not a known brand in ship power
and had no business unit dedicated to the marine sector in
India. Equipment was supplied if requested, but the entire
shipbuilding business remained a government-controlled,
[ INSIDE MARINE ]
sluggish economic sector.
Things changed in 1996-1997 when Wärtsilä acquired
Sulzer Diesel, a recognised brand with important customers
within the Indian shipping fleet.
At the same time, Wärtsilä’s power plant business began
offering value-added services. With each engine delivery,
a new set of aftermarket and service products were offered.
Wärtsilä included Operation & Maintenance (O&M)
contracts, maintenance services, e-business tools and energy
audits in its portfolio. Once equipment was sold, it had to be
maintained for its entire lifecycle, a period of several decades.
Wärtsilä invested heavily in strengthening lifecycle support
capabilities through its technology and competent people.
This became the foundation of the company’s success in
India.
“Growth on the Power Plants side took longer to have
a ripple effect on the Ship Power business. There was
potential, but for reasons of national policy, Indian ships
and vessels were purchasing peripheral services - dry docking
and bunkering - in places such as Singapore and the United
Arab Emirates,” says Sarin.
GEOGRAPHICAL
LOCATION MAKES
INDIA AN IDEAL
LOCATION FOR SHIP
REPAIR AND OTHER
SERVICES.
Shipbuilding expertise exported
As the shipbuilding business grew, small local workshops
that catered to the service needs of shipowners and shipyards
began to emerge. On the other hand, savings in money
terms often carried a sting in the tail. Quality was not as
good as it could be, and for foreign players this proved both
an opportunity and a challenge.
“Companies such as Wärtsilä could offer high quality
work, but the question was whether local customers would
be willing to pay a premium,” says Sarin.
Wärtsilä’s strength was its Power Plants offering combined
with aftermarket services tailored for the power plant sector.
This business model could be copied to cover the need
for ship power services and Wärtsilä is now investing in
its marine service operations. Currently, some 85% of
Wärtsilä’s service business in India comes from the power
plant sector.
Ship Power customers – shipyards and shipowners –
have similar needs, but with different timeframes. Indian
shipbuilders cater to both domestic and foreign customers. p
[ INDIA MARINE ]
[ INSIDE MARINE ]
Twentyfour7.
At the moment, about 70% of all orders come from abroad.
The Indian government has established a subsidy policy for
shipyards that make products for export, and the domestic
building industry has become highly competitive. While
shipbuilders who are Wärtsilä customers require continuous
support throughout the building and warranty stage, the
needs of a shipowner go far beyond this – once a vessel is at
sea, the need for lifecycle services spans decades.
ready to provide every spare part involved in a maintenance
operation. For Wärtsilä in India the goal is to have 10-12
workshops set up across India by 2007.
“A lot of shipping customers are now becoming familiar
with the levels of quality we provide. And we have a strong
global partner network to support our local workshops, so
we can also handle major repairs,” says Sarin.
Customer trust is built diligently. The Khopoli Technology
School, for example, part of Wärtsilä’s competence-building
programme, caters to customers’ needs by offering training.
Shipowners can have their technicians and engineers trained
at Khopoli, and customers can visit the propeller and engine
workshops to see for themselves
how Wärtsilä services products.
Apart from providing training
for customers, Wärtsilä also
manufactures gear boxes and
nozzles for propellers at Khopoli for
marine customers worldwide.
Providing services bring stability to cyclical business
The Indian coastline totals 7,517 kilometres, has 12 major
ports and 187 lesser ports. There are now six significant
shipping hubs around India’s coast,
and these are where the business
opportunities are. Gujarat, Mumbai,
Goa and Cochin head up growth in
shipbuilding industry on the west
coast, and Vizag-Chennai and Kolkata
are the busiest hubs in the east.
Expanding Ship Power service
business is a strategic priority for
Wärtsilä. Equipment supplies alone
won’t do, and the shipbuilding
industry is a cyclical, seesaw-type of
Sailain has two Wärtsilä 9L20 engines.
business. The question was how to
get the attention - and the business
- of India-based shipowners. “For
some time now Wärtsilä has run a
successful workshop in Khopoli, near
Mumbai, and this unit’s ship repair
licence makes it an important link in
the service chain,” says Sarin.
First of all, marine customers already
had their service providers, some of
them local, some of them based in
places such as Singapore and Dubai.
How could they be encouraged
to opt for a total package provided
by Wärtsilä?
Triggering new orders
The growth in service personnel
at Wärtsilä in India also reflects
the boom in business. The
number of people working in
Ship Power service has increased
substantially in the past 5-6 years.
In overall terms, Wärtsilä’s service
operations in India employ some
800 people.
“About a year and a half ago
we started offering shipping
companies a propeller repair
service. We noticed that many
companies have huge propellers
sitting in warehouses with tips
and other parts broken. We were
able to get a foot in the door by
fixing these broken propellers at
reasonable cost – for about 25% of
the cost of a brand new item. Customers get a solution with
an affordable price tag and the same lifecycle as a brand-new
propeller. The volume of orders from this customer segment
is now very healthy,” says Sarin.
A wide portfolio of products, consistent service quality,
onsite workshops, training, functioning networks and ‘onestop’ shopping combined with Wärtsilä Global support makes
Wärtsilä in India an attractive ship power partner.
COST EFFICIENCY
COMES FROM
THE CONCEPT
OF ‘ONE-STOP’
SHOPPING.
Building trust through consistent quality
The answer is to mimic the McDonald’s approach – consistent
quality across all regions.
“We decided that trust and quality will prevail over lower
cost. This is a relationship business. So we’re now establishing
a network of service units across the country, with one or
two shops in each major hub. This way we can offer the
same consistent quality at affordable rates, especially
compared to the cost of services procured from outside
India,” says Verma.
Cost efficiency comes from the concept of ‘one-stop’
shopping. The shipbuilder’s partner is right there onsite,
* AS OF 1 OCTOBER 2006, RAKESH SARIN IS APPOINTED VICE
PRESIDENT, SALES AND MARKETING, POWER PLANTS, WÄRTSILÄ
CORPORATION
[ INSIDE MARINE ]
04.2006.
[ SEATRUCK FERRIES ]
The combination of
feathering CPPs and
CoastGuard anti-pollution
seals is an exceptional
feature of the new RoRo
design.
CUTTINGEDGE,
NOT CUTTING
CORNERS
T E X T: J U K K A V I S K A R I
P H O T O S : S E AT R U C K F E R R I E S
U
with a blank sheet of paper. The goal
was to design the best possible freight-only
ferry for a route across the Irish Sea. Wärtsilä is
providing the technical solutions which will help
Seatruck Ferries realise their aim – to have the
fastest shallow-draft RoRo vessels.
IT STARTED
nder the umbrella of the Clipper Group,
Seatruck Ferries will post another milestone in
2007 with the introduction of two new shallowdraft RoRo vessels of unique design. With a top speed
of 22 knots, the two vessels will be employed on a busy
route between Heysham in Lancashire, England and
Warrenpoint in Northern Ireland.
“Our three ships are already running at full capacity
and we’re having to turn customers away. So the target
is to replace the current vessels with ones that are much
more efficient,” says Andy Askham, Ship Manager of
Seatruck Ferries.
The new ships, designed to be the largest that can enter
the port of Heysham, a location where the tidal range is
high, will cut journey times by almost 30 per cent and
increase annual cargo capacity on the route from 85,000
units to 130,000 units.
When Clipper Point and Clipper Pace enter service in
2007, they will be the first purpose-built freight ferries
introduced on Irish Sea routes for more than 20 years.
Wärtsilä is providing a full package of technical solutions
for the two ships, whose strategic measurements are a
maximum length of 142 metres, 1,800 lane metres
of cargo (120 trailers) and a maximum draft of 5.2
metres.
Seatruck Ferries has also ordered a further three vessels
based on a similar design but is still evaluating route
options for them. These additional vessels are expected
to enter service by the end of 2008.
Tailor-made from scratch
Seatruck Ferries commissioned naval architects Knud
E Hansen from Copenhagen to design the vessels. p
[ SEATRUCK FERRIES ]
[ INSIDE MARINE ]
Twentyfour7.
The task was unique since there was no existing blueprint
or prototype. The entire model had to be built from scratch.
Knowledge accumulated by Seatruck Ferries, now celebrating
its tenth birthday on the Heysham-Warrenpoint route, made
a significant contribution to a successful design. The Spanish
shipyard Astilleros de Huelva was commissioned to construct
the vessels and building began in June 2005.
Wärtsilä was closely involved with the shipyard in optimising
the vessel design. This allowed an optimal package of technical
equipment to be tailored for the two vessels. At their hearts lie
a pair of powerful Wärtsilä 46 main engines, each of which
provides 9240 kW at 500 rpm. As the largest supplier of
feathering CPPs (controllable pitch propellers) in the marine
market, Wärtsilä is providing feathering CPPs, gearboxes, and
the propulsion control systems that convert engine power
into thrust. The two 1000kW transverse-mounted tunnel
thrusters provide plenty of power for manoeuvring, even in
strong winds.
Three Wärtsilä Auxpac generating
sets and an emergency generating
set provide the electricity required
on-board. High-specification
CoastGuard anti-pollution seals were
selected as stern tube seals. An option
for the customer to take part in CBM
(condition-based maintenance) is
also being provided by Wärtsilä.
“The other major players were not
able to offer such a comprehensive
package. They had to bring together
a consortium of manufacturers,” says Andy Askham. He is well
aware that if an issue of performance or compatibility arises
when there are multiple players, manufacturers can end up
blaming each other.
“We are dealing with a number of Wärtsilä companies and
factories around Europe. The main engines are made in Italy,
the stern tube seals are made in the UK and the propulsion
systems come from The Netherlands. So we’re really happy to
have a one-to-one interface with Wärtsilä in the UK. To solve
any problems, we only need to knock on one door.”
Seatruck Ferries did not cut corners in ensuring maximum
reliability for their customers. “They have opted for a highspeed vessel which has a draft shallow enough to cope with the
tidal range, which can handle the sandy shallows (hence the
CoastGuard seals), and offers good fuel economy and flexibility
through HFO-burning main engines combined with feathering
CPPs,” says John Grant, Marine Manager, Wärtsilä in the UK
and a leading contact point for Seatruck Ferries.
Two exceptional technical features in this order are the
feathering CPPs and the high-specification CoastGuard antipollution seals. Employing a feathering CPP rather than a
normal CPP significantly reduces drag caused by a propeller.
This helps to minimise fuel consumption when vessels operate
using only a single shaft line, something which Seatruck Ferries
intends to do on daytime sailings. With just one engine
operating, the new vessels will still be able to reach a speed
of 17 knots.
Facing challenges head-on
“Weather conditions on the Irish Sea are similar to those on the
North Sea. The tidal range at Heysham is more than 10 metres
and winter conditions are particularly severe,” says Askham, who
has worked as a chief engineer on the Warrenpoint-Heysham
route. Even with storms of Force 10 on the Beaufort scale and
a huge tidal range, customers have to have their cargo delivered
on time. Seatruck Ferries boasts the fewest lost sailings on the
Irish Sea, and the new vessel’s powerful engines will provide an
even greater reserve to ensure that schedules are met.
“The challenge is not only to
avoid breakdowns but to produce
solutions which enable ships to
transit quickly enough, and to
manoeuvre safely in all weather
conditions,” says Askham. “Worn
or damaged stern-tube seals are a
very common problem on short
sea RoRos. Wärtsilä worked with
us and provided a solution with
CoastGuard seals. Even though they
are not the cheapest, we think the
technological payback is going to
be significant,” says Askham. The seals protect the shaft lines
from the sandy, abrasive water conditions.
“We see Wärtsilä contributing towards minimising downtime
with reliable engineering and 24/7 service and spare parts
support.”
“We are really
happy to have a
one-to-one interface
with Wärtsilä.”
Efficient, reliable business
Seatruck Ferries has purchased more than excellence in
engineering from Wärtsilä. “They have bought the concept
of a long-term relationship, and local service support from a
global organisation that is able to add value to clients locally,”
says John Grant.
According to Andy Askham, Wärtsilä has also shown that it
understands the needs of Seatruck Ferries’ customers as well as
the company’s own needs. “They know that hauliers have to
make onward deliveries, often with perishable goods.”
“We’re looking forward to working very closely with Wärtsilä
for years to come in ensuring that we keep these vessels at
maximum levels of efficiency and reliability. Right now, there’s
no more efficient way of carrying trucks across the Irish Sea
and in shallow draft conditions at these high speeds.”
[ INSIDE MARINE ]
04.2006.
[ SHIPBUILDING INDUSTRY IN CHINA ]
ENGINES FOR CHINA’S SHIPBUILDERS
is growing rapidly. In response
to high levels of demand, a new joint venture is being established to
manufacture large, low-speed engines.
THE CHINESE SHIPBUILDING INDUSTRY
T E X T: E I J A - L I I S A H I LT U N E N - N O R D S T R Ö M
T
hree major players have decided to combine
their skills and expertise in the Chinese
shipbuilding market. In October 2006,
the China Shipbuilding Industry Corporation
(CSIC), Wärtsilä Corporation and Mitsubishi
Heavy Industries (MHI) announced that they
will set up a joint venture to manufacture large
low-speed engines in China. The new company
will be known as Qingdao Qiyao Wärtsilä
MHI Linshan Marine Diesel Co Ltd (or simply
QMD), and CSIC will hold 50%, Wärtsilä 27%
and Mitsubishi 23%.
Dozens of shipyards are now building vessels
in China and all these ships need engines. The
aim of establishing the joint venture is simple to serve China’s shipbuilding industry better. In
national terms, the Chinese shipbuilding industry
is currently the world’s number three, and its
target is to become number one by 2020. The
planned annual production capacity of the QMD
manufacturing facility is 2600 MW.
According to Li Chang Yin, CSIC’s President,
QMD’s offering will be more than just the
provision of increased manufacturing capacity. As
the largest Chinese group in a sector that includes
merchant and military ships, marine engineering
and marine equipment, CSIC’s vision is that the
new factory will enable further development
of the ship machinery industry’s technological
capabilities. Achievement of this objective will
be facilitated through international co-operation
with strong technology partners.
It is also Li Chang Yin’s belief that improved
technological capabilities will encourage technical
innovation amongst CSIC personnel, enhancing
the competitiveness of Chinese shipbuilding and
further increasing its global market share.
Two-stroke engines under licence
QMD will develop, manufacture and sell a new
generation of energy-saving and environmentally-
sound low-speed two-stroke marine engines using
advanced technology from Wärtsilä and MHI.
QMD will also manufacture, assemble, test sell
and service low-speed engines under licence from
Wärtsilä and MHI. Japan-based MHI operates
in many sectors and is one of world’s leading
manufacturers of heavy machinery. In the marine
sector for example, MHI supplies diesel engines,
turbines, boilers, propellers, deck machinery, water
jets and pumps.
MHI expects that the new co-operative venture
will raise the reputation of its Mitsubishi UE
engines in world shipbuilding markets. “It will
also extend Mitsubishi UE engine business in
an important shipbuilding country,” said Hiroo
Uchimura, General Manager, Industrial Energy
Power Systems Department of MHI.
“Throug
partnerships,
Wärtsilä is
manufacturing
auxiliary engines,
propellers,
thrusters and
gensets in China.”
Local suppliers are important
The QMD plant will be located in the Shanghai
area where CSIC is establishing a marine industry
cluster. Production is currently scheduled to begin
in late 2008. As QMD will use local suppliers
whenever possible, efficient networking will be
important. Technology transfer will support local
companies in raising their production standards
to world-class levels.
Wärtsilä and MHI, who had previously formed
a strategic alliance to develop two-stroke marine
diesel engines, will use QMD’s facilities for research
into new engines, development and testing.
Through partnerships with Chinese companies,
Wärtsilä has established an assembly facility in
Shanghai, and Wärtsilä propellers, thrusters and
generating sets are also being manufactured in
China. Even though the new QMD factory is
being set up to serve Chinese shipyards, it will also
be able to export engines to companies operating
in other regions such as Europe and India.
Dozens of shipyards are today
building vessels in China.
[ PROPULSION IMPROVEMENT ]
[ INSIDE MARINE ]
Twentyfour7.
New Wärtsilä-design
propeller blades in a
2400 mm HR nozzle
(MV Trygvason).
C
hanges to a vessel’s propulsion system,
the mechanism through which engine
power is converted into motion through
the water, are one obvious way of influencing
both fuel efficiency and performance. In this
context, the term “propulsion system” means
the propeller and any ancillary devices that affect
its performance such as a surrounding nozzle.
The options available for improving existing
installations – retrofits - depend on both the
propeller type and the vessel it is installed in.
The economic results are usually measured in
terms of the Return On Investment (ROI).
IMPROVED
PERFORMANCE
AND LOWER
RUNNING COSTS
T E X T: A N T O N V O E R M A N S | P H O T O S : W Ä R T S I L Ä
in fuel prices
over the last years have had an adverse
effect on ship operating costs. The
need to maintain a vessel’s economic
profitability has resulted in a wideranging focus on fuel-saving devices
- in the broadest possible sense.
SIGNIFICANT INCREASES
Hydrodynamic losses
The total propulsion efficiency of a propeller,
i.e. the proportion of the energy produced by
a ship’s engine that is converted into motion,
varies from 50% to 70%. In the case of an
average propeller, reductions in efficiency can
be traced to three physical phenomena: axial,
frictional and rotational losses.
Propellers generate thrust by accelerating the
incoming water. Behind the vessel, the flow of
water away from the moving propeller mixes
with the water in the local environment and the
resulting turbulence means that some energy
is lost. The name given to this phenomenon
is axial losses.
Friction is present whenever two surfaces
which are in contact move over one another.
This is also the case when water flows over the
surfaces of a propeller blade. The dominant
factors affecting these frictional losses are the
total blade surface, blade surface roughness and
the speed at which a propeller is rotating.
Rotation of the propeller blade also leads to
a rotation of the water in a vessel’s wake. The
energy used in making this happen is then not
available for the generation of axial thrust. These
are called rotational losses.
[ INSIDE MARINE ]
03.2006.
Improving performance
Devices that improve the efficiency of propulsion
by reducing fuel consumption fall into three
categories: up to 5%, up to 10%, and up to
15%. In the first of these, measures such as
polishing a propeller or repairing edge damage
can easily increase its operating efficiency by
2-4% and the corresponding ROI is short,
1-3 months.
Redesigning a propeller using state-of-theart concepts, without optimizing boundary
conditions such as propeller speed and diameter,
can lead to a performance improvement of some
5%. Raking the tips of a propeller’s blades
reduces local rotation of the water in this zone,
and for large fixed pitch propellers (FPP) the
positive effect can be as much as 3%.
Cavitation is a condition where water starts
to boil spontaneously at low temperature. In
cases where a propeller is not designed well,
this results in bubbles imploding on the surface,
reducing the propeller’s lifetime. Using modern
hydrodynamic software, cavitation can now
be predicted with greater reliability. As higher
power densities can then be allowed, lower blade
areas can be utilised and the resulting reduction
in frictional losses can achieve efficiency
improvements of up to 3%.
Since new propellers are required for all
these courses of action, the ROI is 4–5 years.
Combining tip rake and a lower blade area
yields fuel savings of up to 5% and offers an
ROI of about three years.
Heavy running
Improvements of up to 10% in efficiency
involve more fundamental changes which
may also affect engine speed and operation. In
general terms, a larger propeller diameter in
combination with low rotational speed leads
to improvements in efficiency and a reduction
Ducts and nozzles
The concept of surrounding a propeller with a
nozzle or duct is very well established and has
a long history. Converting open propellers to
a ducted configuration can result in efficiency
gains of as much as 15%. Currently, some 25%
of Wärtsilä controllable pitch propellers (CPP)
run inside a nozzle.
In an accelerating nozzle the water speed
at the propeller is higher than it is in the case
of an open propeller. This increase in axial
velocity reduces the propeller load, especially
for propellers that are heavily loaded. This
results in an increase in the overall performance
achieved by the propeller and nozzle compared
to that of the propeller alone. Also, the pressure
distribution round the nozzle generates forward
thrust, resulting in a force in the forward
direction.
To extend the application of ducted propellers
towards higher ship speeds in combination with
a larger bollard pull, Wärtsilä has introduced
a high efficiency nozzle (HR nozzle). This
unique design has a curved exterior and interior,
600
HFO 3% S
HFO 1% S
LFO 0.035% S
500
US$/ton
Using modern
hydrodynamic
software,
cavitation can be
predicted with
greater reliability.
in axial losses. This type of modification can be
applied to all ship and propeller types.
In cases where propeller diameter cannot be
increased, increasing the number of blades to
five or even six sometimes provides a method
for further optimization. Typical ROI in such
cases is 18 months to 2.5 years.
After many years of operation, fixed pitch
propellers (FPPs) can become heavy running as
a result of, for example, increased hull resistance.
The terminology heavy running is somewhat
misleading, as the problem is that the propeller
loading and engine characteristic do not match the engine’s power output limit is reached before
the propeller’s full power is achieved. The result
is that the engine is overloaded, leading to both
increased fuel consumption and increased rates
of wear in engine components.
One solution to heavy running is modification
of the propeller pitch. The same level of power
will then be absorbed at a higher engine speed,
and engine operation is shifted out of the “red”
zone.
Fuel savings of 6% to 8% have also been
reported after trailing edge cutting. This is a
modification in which the trailing edge of the
blade is cut off and the aft part of the blade
wing-section geometry is changed by grinding.
The payback period in this case is just two
months.
400
300
200
100
0
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05
Year
Increases in fuel prices in recent years have been
substantial, adding significant complications to
the economics of ship operation.
axial losses 20%
frictional
losses 15%
efficiency 60%
rotational
losses 5%
Typical losses in propellers of standard design.
p
Fixed pitch propeller (FPP) with and without tip
rake. Conventional propeller design [LEFT] and
LIPS tip rake propeller design [RIGHT].
Twentyfour7.
Economics of retrofits
Wärtsilä nozzle improves
fishing efficiency
6
less interesting
5
Return On Investment (year)
[ PROPULSION IMPROVEMENT ]
[ INSIDE MARINE ]
modern
design
propeller
4
more interesting
3
modern design
propeller
diameter and
rpm adapted
2
ducted propellers
1
prop.- engine
interaction
grinding and repair
0
0
5
10
15
Efficiency improvement (%)
avoiding flow separation and contributing to higher levels of
efficiency. Ducted propellers have a pitch that is significantly
higher (up to 40%) than open-type propellers.
By replacing an existing open propeller with an HR ducted
propeller, bollard pull can be increased by about 25% and
free running efficiency can be increased by 10-15% (see
sidebar). The actual improvement in performance achieved
will depend on the power density of the propeller and the
vessel’s sailing speed.
Retrofit economics
Assessing the profitability of a propulsion improvement
requires knowledge of the increase in hydrodynamic efficiency
and either the investment or the total costs involved. A recent
Wärtsilä in-house study reviewed the fuel savings resulting
from a number of completed retrofit installations. Data on
fuel consumption was supplied by ship operators or estimated
using project information.
The estimated ROI for each propulsion improvement
strategy is shown in the diagram. Since each type of device
has a wide field of application that depends on the type of
ship, its size, engine and the fuel used, areas that indicate the
range of hydrodynamic improvement and payback times
are shown.
Increases in operating costs that result from higher fuel
prices affect all ship owners. Wärtsilä offers a number of
solutions that save fuel by improving propulsion efficiency,
helping to ensure that vessels can be run profitably.
Relatively simple operations such as grinding and repair
of modern propellers offer interesting savings and short
payback times, while the replacement of old designs and
modifications to improve “heavy runners” can provide very
significant benefits. Installing ducted propellers, especially
LIPS HR nozzles, yields increases in free-running propeller
efficiency of as much as 15%, with payback periods of just
12-18 months.
Built in 1988, MV Trygvason is a single-screw trawler originally
equipped with an open-type, 2600 mm-diameter CPP. The
vessel is powered by a Wärtsilä Nohab F38A with an output
of 1580 kW, running on marine diesel oil. To save fuel, the owner
was seeking a propulsion retrofit with an attractive Return On
Investment (ROI).
Wärtsilä’s proposal was a modern propeller design of
diameter 2400 mm operating in a high efficiency (HR) nozzle.
Calculations indicated a bollard pull increase of 29% and a 13%
improvement in free-running efficiency. Operating parameters
in both sailing and fishing conditions were optimized. The ROI for
this rebuilding was calculated as being less than two years.
REVERSE ENGINEERING
As the original propulsion unit was not a Wärtsilä design,
measurements were made on a spare propeller blade to
establish the blade geometry. Both hydrodynamic and
mechanical calculations were performed to define the
maximum hub loading. Cavitation calculations provided
reference values for noise and vibration.
Using this data and a technical specification, new geometry
for the propeller blades was produced. Wärtsilä’s state-of-theart computer techniques make it possible to not only improve
bollard pull and efficiency, but also to reduce hub loading. In this
case, the nozzle effect meant that the new design’s cavitation
and pressure-pulse performance offered a considerable
improvement over the vessel’s original equipment. Both noise
and vibration levels remained well within reference limits.
BETTER THAN EXPECTED
The retrofit was carried out in Norway and the trawler was out
of operation for about two weeks. Trials showed a bollard pull
close to 30 tons – calculations had indicated 27 tons. Before
the retrofit, the bollard pull had been 21 tons. The owner also
reported a reduction in fuel consumption of approximately 30%.
The trawler now uses less fuel when pulling a specific net, or
can trawl using a larger net.
A MUCH QUIETER RIDE
MV Trygvason’s owner is very pleased with the overall result.
“It’s much quieter onboard now,” says Captain Støle Lønning,
a regular visitor to North Sea fishing grounds. “In the first year,
we used the boat just as it was when we bought it, but it became
very expensive to run. Even though it wasn’t the cheapest option,
Wärtsilä’s nozzle solution was the most effective. We can now
use more efficient trawling equipment, and we haven’t suffered
any loss in sailing speed, something which has happened to
others.”
Wärtsilä offers propulsion improvement for both Wärtsilä
and third-party installations. Following an initial assessment,
deliverables are a budget price, an indication of the resulting
efficiency improvement and the estimated ROI. The entire
conversion process from initial discussions to sea trials of
a new installation takes 6-12 months.
Wärtsilä Quarterly Magazine*
Small, but important
*Sign off
Licence
manufacturing
in Brazil
more on page 75
AT YOUR SERVICE | TRAVELLERS’ GEAR | HISTORY CORNER | LITTLE ENGINEER | CHILDRENS’ QUOTE
69
[SIGN OFF]
There are many things in everyday
life that are not so easy to see but
still important. A smile in the rush
hour, the nuts and bolts that hold
devices together, water-resistant
microfibres in the fabric of a coat.
All these add spice to life, and they
really matter - in spite of their size.
sign off
[ AT YOU R S E RV I C E ]
SPECIALIST HAIRCARE
akimoto Arms, a stylish hair salon
situated in the Roppongi Hills
district of Tokyo, is dedicated to
making its customers both beautiful
and wealthy. The key is comprehensive,
high-quality customer service provided
by a variety of specialists all the way from
receptionist to hairstylist. Nobue Hoshino,
Kakimoto Arms’ top stylist and its director,
reveals the secrets of her salon.
K
HOW WOULD YOU DESCRIBE
YOUR SERVICE PROCESS?
We serve our customers with the utmost
care. After being greeted at reception, where
they can leave their coat and belongings and
don a robe, each customer is taken into the
salon for a hairstyle consultation with their
stylist. According to each customer’s wishes,
their hair is washed, cut and/or coloured and
their nails are manicured. Each of these tasks
is carried out by a different specialist as that
ensures the highest quality.
We really focus on customer comfort. For
example, we place a warm, rolled-up towel
under a customer’s neck while their hair is
being washed, and as the sinks we use for
hair washing are movable, customers don’t
have to move from one place to another
during the washing, cutting and colouring
processes. We also offer our customers tea,
coffee or water as refreshment.
WHAT PARTICULAR SERVICE
IS YOUR SPECIALITY?
Since Japanese people like to colour their
hair and we are well known for our skills in
hair colouring, it is a perfect match. Our
professionals have been trained at the Daniel
Galvin Salon in London. Acknowledged as
the world’s leading hair colourist, Galvin
has introduced many innovative colouring
techniques.
HOW DO YOU FOSTER CUSTOMER
LOYALTY?
We have many regular customers who
are very satisfied with the hairstyling and
other services we provide. For these people,
the best guarantee is our employees, who
are keen to develop their skills and truly
passionate about their work. Our customers
really value the competence that our
hairdressers display.
T E X T: K ATJ A A L A J A
P H OTO : P E T R I A RT T U R I AS I K A I N E N
“We really
focus on
customer
comfort.”
– Nobue Hoshino
+
[ T RAV E L L E RS ’ G E A R ]
WHEN IT COMES TO TRAVEL FOOTWEAR, the top
three requirements are comfort, comfort and comfort.
A five-hour walking tour around New York in new but
es can turn your holiday into a blisteru try to
Marine emergency
medical kit
SHOES
CAN MAKE
OR BREAK
YOUR DAY
Going freshwater boating
or water skiing? The Marine
200 medical emergency
kit is organised in colourcoded compartments
classified by type of
injury. It contains items such
as medicines, sterile dressings,
trauma pads, bandages, forceps
and folding scissors, an instant ice
pack, and a book on marine medicine.
www.adventuremedicalkits.com
Insect repellent, mosquito
net and sting relief
A trip into the tropics can be ruined
if you’re not properly equipped
against mosquitoes and other biting
insects. If you want to avoid getting
bitten and ending up full of itchy
bumps, don’t travel without an insect
repellent and a mosquito net. If these
don’t help, sting relief gel will.
Safety pins
If a button comes off and you haven’t
packed a sewing kit with you, a
safety pin can save your day. You
can also use it to fasten your hotel
or safe key inside your coat pocket,
or pin the pockets of your garments
closed with your valuables on the
inside. And if you’re travelling with
a backpack, use safety pins on the
backpack zippers - pickpockets hate
struggling with sharp objects.
Polarity – a magnetic
boardgame
Tired of electronic games? Try
Polarity, a strategy boardgame that
harnesses the force of magnetism.
Players take turns placing hovering
magnetic discs on the board in order
to impose chaos on their opponent.
The resulting chaos causes the discs
in play to come together in a flash
of magnetic frenzy. Stacks of more
than one disc count as points, and
the player with the most points wins.
For details, see www.thinkgeek.com
er
Photoquiz answ
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Hachiko dog, ne
point in Tokyo.
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station is a me
s the loyal
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In 1920s, Hachiko
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so
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dog of a pro
still ten
–
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master every ev
ster
ma
his
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aft
years
had died.
PHOTOS: MIRVA KAKKO
sign off
[ H I STO RY CO R N E R | L I T T L E E N G I N E E R’S PAG E ]
LEVITATING
Galileo Gravitator
GALILEO GALILEI (1564–1642) was an Italian scientist
, India.
Taj Mahal
20
YEARS
IN INDIA
T E X T: E I J A - L I I S A
H I LT U N E N - N O R D S T R Ö M
Wärtsilä started operating in
India in the early 1980s, but
the listed company - standard
practice in those days - was
only established in 1986.
The goal was to offer better
services to Wärtsilä’s rapidlygrowing customer base.
For most of the last 20 years,
the focus has been on Power
Plant business. Over time,
Wärtsilä has grown from being
a DG Set supplier to a provider
of turnkey solutions and longterm O&M contracts. Although
India has not traditionally been
a major force in shipbuilding,
the country is now emerging
as a major ship repair hub,
especially for offshore vessels.
This is good news for the Ship
Power business.
The Wärtsilä brand is strong
in India, representing trust,
reliability and excellence.
India is undergoing a
significant transformation,
and its economy is nowadays
increasingly robust and
liberal. Wärtsilä in India is
ready to make the Indian
elephant dance.
who improved the design of the telescope and was one
of the first people to use it to observe the sky. He was
the first to discover Jupiter’s moons, and to conclude
that the moons he saw were orbiting the planet. Galileo’s
conclusion that a planet could have smaller planets
orbiting around it helped upset the notion, prevalent
at that time, that all celestial bodies revolved around
the earth.
Mars
Jupiter
Moon
Galileo also determined the correct mathematical
law for acceleration, which he verified by careful
measurements. Even though the story that Galileo
dropped balls of different mass from the Leaning Tower
of Pisa to demonstrate that their time of descent was
independent of their mass - excluding the limited effect
of air resistance - is not now generally accepted as true,
he did carry out experiments involving the rolling of balls
down inclined planes which proved the same thing.
During the Apollo 11 mission some 300 years later,
Neil Armstrong experimented by dropping two objects
of different size and proved that objects in a vacuum
fall at the same rate. You can now conduct your
own gravitational experiments with the Levitating
Galileo Gravitator, which demonstrates celestial
gravitation. It comes with four spheres (i.e.
model planets) – the Moon, Mars, Jupiter and
Saturn – and a magnetic source to provide a
source of gravitational force. Your task is to
make the spheres levitate.
Place one of the spheres under the
Gravitator’s magnetic source and adjust the
balance of the gravitational pull affecting it
with the fine-tuning knob until the spheres
start to hover. The LEDs located in the top
and the base of the device give each sphere
a bluish-purple glow, helping you find the
right balance. Use the rotation switch if you
want the sphere to spin slowly. The Gravitator
mimics the rotation of the moon as it orbits the
earth, and Mars, Jupiter and Saturn as they orbit
the sun.
The Galileo Gravitator is 280 mm tall and has a base
diameter of 218 mm. It weighs just over a kilogram,
has an embellished gold frame and is supplied with
an AC power adapter.
PRICE: USD 69.99. FOR DETAILS, SEE WWW.THINKGEEK.COM
[ ONCE UPON A TIME ]
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
CHRISTOPHER
COLUMBUS
EX PLOR ER OF THE SEA S
GREAT DISCOVERIES require faith and
courage. Both courage and a determined
resolve were characteristics of Christopher
Columbus, the man who accidentally
discovered America.
Christopher Columbus was born in
1451. It is believed that he went to sea at
the age of fourteen. He settled some years
later in Portugal, married a Portuguese
noblewoman and the couple had a son. In
1485, after the death of his wife, Columbus
and his young son moved to Spain.
In the fifteenth century, people in Europe
did not know of the existence of the North
and South American continents and the
Pacific Ocean. Columbus was a man of
learning, and was probably convinced that
the world was round. He figured out that if
he sailed far enough to the west, he would
eventually reach the Far East and its riches.
Finding a trade route to Asia became his
solitary goal and obsession.
IT TOOK COLUMBUS ten years of persuasion
before Ferdinand and Queen Isabella of
Spain were ready to finance an exploratory
trip to the west. In 1492, they finally agreed
to a grant that allowed Columbus to set
sail, provided that he brought back gold,
spices and silks from the Far East. He was
also instructed to disseminate Christianity
and to lead an expedition into China.
Columbus and his crew departed from
Palos, Spain, in August 1492 with three
ships: the Niña, the Pinta, and the Santa
Maria. Guided by compass, they sailed
westwards of a rate of about 150 miles a
day. The crew worked in 4-hour shifts. The
voyage took longer than expected and the
hungry crew grew restless, but Columbus
would not be deflected and land was
finally sighted in October. Columbus set
foot on what he thought was an island in
Asia, but in reality they had reached what
is now known as the Bahamas. Since no
riches were found there, they sailed on,
visiting the island of Cuba and another
island called Hispaniola, known today
as Haiti and the Dominican Republic.
When he returned to Palos in Spain in
March 1493, Columbus was hailed as a
national hero.
SINCE COLUMBUS thought he had reached
the Indies, he called the islands’ native
people Indians. Relations between the
Indians and Columbus’ crew were initially
friendly, but problems began to accumulate
because of brutal behaviour by the Spanish
newcomers towards the natives.
Columbus set off on his second voyage
in September 1493 to land in what he
thought was Japan but was actually the
islands of Dominica, Guadeloupe and
Jamaica. His third voyage took place in
1498 and resulted in the discovery of
Trinidad, Tobago, Grenada and Margarita.
The fourth voyage began in 1502 and
took Columbus to the coast of Panama.
The Indians there were hostile and the
explorers were forced to flee to Jamaica.
Columbus sailed back to Spain in 1504
and died in 1505, still convinced he had
set foot in Asia.
sign off
[ C H I L D R E N S ’ QUOTE ]
IF YOU WERE AN INVENTOR
what would you invent?
And what would this invention do?
I would like to invent a robot. It
would be around the same size as
myself and built like a human.
The robot should be controlled by a
remote, and I can hear, see and talk
through its ears, eyes and mouth. It
would help me do everyday tasks.
It would be cleaning up my room,
carry my backpack when I go to
school and when I kick my soccer
ball into the neighbour’s backyard it
would go and get the ball for me.
LUCAS WINKELMANN, 7 years, Herlev,
Denmark
I would invent the
‘superhoovercomocinetikcellphone’;
a vacuum cleaner with integrated
mobile phone, flat screen,
TV and fan.
Lucas
PETRA JENSEN, 7 years, Valby, Denmark
I would invent the ‘digital car’;
a noise and exhaust-free car
whizzing over land without
wheels or tyres.
ANTON JENSEN, 9 years, Valby, Denmark
Petra and Anton
sign off
Licence manufacturing
in Brazil
SHIPBUILDING IN BRAZIL is restarting following a decade of
inactivity. The country’s new government is encouraging local
production. And as the demand for oil only grows, oil producing
companies need new vessels – and those vessels need engines.
Many of the new ships to be built in Brazil will be using
Wärtsilä engines manufactured under licence. An agreement
between Wärtsilä and the state-owned industrial company
NUCLEP (Nuclebrás Equipamentos Pesados S.A.) was signed in
December 2005.
NUCLEP will build two-stroke marine engines for new bulkers
and product carriers ordered by Transpetro, the shipping arm
of Petrobras, Brazil’s state-owned oil company. Over a period of
five years, 26 vessels will be produced. The first engine delivery
is scheduled to take place in 2008 and the target is to produce
between six and eight engines each year. It is also quite likely
that NUCLEP will manufacture engines for vessels ordered
from Brazilian shipbuilders by PDVSA, the Venezuelan state oil
company.
Local manufacturing preferable
The manufacturing of engines under licence is a totally new
concept for NUCLEP, which was originally set up in 1975 to
produce nuclear power plants. To date, only some 20% of the
company’s capacity has been utilised. The building of Wärtsilä
engines will not only generate jobs, as usage of production
capacity will rise to 100%.
“NUCLEP will be the only manufacturer of two-stroke engines
in Latin America. The licence agreement with Wärtsilä will help
us obtain orders from all over Latin America, because Wärtsilä is
well known and local production is preferred. Even the Brazilian
government approves of this new partnership”, says Jaime
Wallwitz Cardoso, President of NUCLEP.
Wärtsilä is helping its new partner by training NUCLEP
engineers. Last winter, two engineers visited a training centre
located in Switzerland. In autumn 2006, a group of eight
engineers underwent training and another group of ten engineers
will follow. Wärtsilä-trained personnel will be responsible for
disseminating know-how at the NUCLEP plant.
Ole Johansson,
Wärtsilä’s CEO and
President [LEFT]
and Jaime Wallwitz
Cardoso, President
of NUCLEP. [RIGHT]
T E X T: M A A R I T K A U N I S K A N G A S
P H O T O : K I R S I S A L O VA A R A
GREEN, STRAIGHT AND UNPROCESSED.
Wärtsilä liquid biofuel power plants use high efficiency reciprocating engines to
turn vegetable clarified oils to electricity and heat. Liquid biofuel can be produced
from practically any oil-rich crop. From oil palm, soy, rapeseed and olive to
sunflower seeds, grown in many regions all around the world. See what we have
done so far 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°
[ SO LU T I O N ]
45°S
Multi-purpose floater
changes the rules
MORE ON PAGE 49
MPF 1000, MPF CORP
WWW.WARTSILA.COM
i
R E P O RTAG E
DETAILS MATTER
Tokyo’s Ginza Line, viewed from
the Shibuya centre, transports
millions of travellers a day.
R E P O RTAG E
MORE ON PAGE 20
i
03
PHOTO: PETRI ARTTURI ASIKAINEN
*contents
44 INFOGRAPHICS
BIOGRATE
38
SOLUTION
Wärtsilä
14RT-flex96C
The world’s most-powerful
reciprocating engine,
powering the world’s largest
container vessel.
49
Multipurpose
floater A harshenvironment FPSO
opens up a window of
opportunity for MPF Corp.
– and for Wärtsilä.
30 Innovation
Economies seeking to
encourage innovation
have to focus on a lot
more than just R&D.
PLUS: 35 FINANCE & BUSINESS WORLD
PASSSION
[ CO N T E N TS ]
Tokyo epitomises the
Japanese desire to make
sure everything runs as
smoothly as possible.
IN-DEPTH
20 Details matter
FEATURE
REPORTAGE
Ingenious design provides
optimal conditions for
combusting biomass
without using auxiliary fuel.
A choice for the future.
46 Mastermind
Success in golf requires
that many things click at
just the right moment.
It’s that simple.
43 R&D, INNOVATION
4.06 Twentyfour7. 5
NO BOARDROOM CONVERSATION WILL BREAK THIS ICE.
The world has enough talkers. We are doers. We are more than 13,000 men
and women across the globe who are dedicated to achieving our clients’ goals
– including keeping a fleet running. We are the engine of industry, see what we
are doing today at wartsila.com
WÄRTSILÄ® is a registered trademark.
*contents
inside Energy & Marine
54 EXTRAS
The emerging market for ancillary
services in the United States.
57 ITALY’S GOING GREEN
Power plants that use vegetable oil, and
profit from Green Certificates.
58 GAS POWER IN INDIA
“Group-captive” projects are generating
plenty of enthusiasm.
60 INDIAN MARINE BUSINESS
An extensive ship power portfolio makes
Wärtsilä an attractive “one-stop” partner.
63 EFFICIENCY RULES
Seatruck’s new shallow-draft RoRos
have unique design features.
EVENTS, PAGE 75
AROUND THE GLOBE
SIGN OFF
10 Spotted beauty
12 CALENDAR upcoming events
69 DESSERT the importance of
smiles - and nuts and bolts!
13 DICTIONARY useful definitions
add sparkle: FIREWORKS
70 AT YOUR SERVICE specialist haircare
71 TRAVELLERS’ GEAR shoes
14 PEOPLE & FACES
72 HISTORY CORNER twenty years
in India LITTLE ENGINEERS’ PAGE
spinning spheres with Galileo
73 ONCE UPON A TIME
by Raimo Lind
Christopher Columbus –
courageous and determined
16 MY BOOKS Mumbo
74 CHIDRENS’ QUOTE wisdom from
jumbo” and delusions
younger generations
YESTERDAY,
NOW, TOMORROW
75 EVENTS
Measuring speed.
66 PROPULSION IMPROVEMENT
Different approaches, a wide range
of returns on investment.
can make or break your day
Sweden’s royal couple
visit Wärtsilä
More NEWS
15 COLUMN
Joint venture in China will produce
large, low-speed engines.
Licensing in Brazil
17 PHOTO QUIZ Where
do you find a loyal dog?
18 COLUMN by Pekka Ahlqvist
19 CORPORATE CITIZENSHIP
EXTRAS, PAGE 54
UNIQUE RORO, 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: Marit Holmlund-Sund,
Maria Nystrand, Dan Pettersson, 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: JMT Airguard 3AS on the production line
by Petri Artturi Asikainen
Written permission from Wärtsilä Corporation is required
for the reproduction of articles in whole or in part.
Support for the Mesoamerica Center
72
www.wartsila.com
LITTLE ENGINEER
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. 4.06
Disclaimer
NEWS orders, appointments
[ CO N T E N TS ]
65 QMD IN SHANGHAI
editorial
Dear Reader,
that daring to innovate is essential.
We also know we must constantly move forward and change
while engaging in a wide range of activities which enable us
to both create and improve the products and services that
correspond to customers’ needs today and in the future.
AT WÄRTSILÄ, WE KNOW
that customers prefer to deal with global
partners who have local presence and are able to offer total
solutions, we are expanding the services we offer in the electrical
and automation sector to complement our existing offerings in
several locations. To reinforce this strategy, we have initiated a
joint venture with Mitsubishi Heavy Industries (MHI) and the
China Shipbuilding Industry Corporation (CSIC). Announced
in Hamburg in September, the innovative Wärtsilä Pulse
Lubricating System is clear proof of our technological expertise.
SINCE WE BELIEVE
a very important market for Wärtsilä for the
last 20 years, especially within the power plant sector. It has also
now become one of the key markets for Wärtsilä Ship Power
and Wärtsilä Services.
Japan has played an important role in shipbuilding. For
Wärtsilä, the acquisition of Japan Marine Technology (JMT) in
2004 and the associated manufacturing of seals and bearings has
significantly enhanced our understanding of this market.
[ T W E N T Y FOU R 7. ]
INDIA HAS BEEN
we are a technology company, the human
dimension remains our driving force. Examples of this
are Wärtsilä’s support for the Mesoamerica Center and its
new facility in Guatemala, and sponsorship of a skilful and
passionate golfer.
EVEN THOUGH
Enjoyable reading!
Mikael Simelius
Vice President
Marketing Communications & Branding
[email protected]
4.06 Twentyfour7. 9
Wärtsilä and
MAN Diesel to co-operate
in research.
[ A R O U N D T H E G LO B E ]
more on page 12
*around the
NEWS | PEOPLE AND FACES | EVENTS | DICTIONARY | PHOTO QUIZ | Q&A
A SPOTTED BEAUTY
THE AGILE LEOPARD (Panthera
pardus) lives in eastern and central
Africa as well as in some parts of Asia.
Powerful and graceful, this big cat
thrives in swampy tropical forests,
rugged mountains, deserts and
grassland. Whether spotted or black, the
leopard’s coat makes it difficult to see
in all types of terrain – while making the
job of hunting for prey easier.
A MUSCULAR BODY with broad paws
and long tail makes the leopard a good
climber. They are strong enough to carry
prey of up to twice their own weight into
a tree to eat it. They are good swimmers
and opportunistic hunters who will eat
almost anything – monkeys, rodents,
reptiles, amphibians, birds, fish, wild
pigs and hoofed mammals such as
antelopes.
globe
IN THE WILD, the nocturnal and solitary
leopard may live less than 10 years. In
captivity, this beautiful creature can live
for more than 20 years. Extremely-acute
hearing and eyesight are the leopard’s
strongest senses, helping it to spot
potential prey and avoid threats such as
lions, tigers, and hunters, and of course
habitat destruction. On a hot day, this
magician of balance can sometimes
be discovered taking a nap in a tree,
its presence revealed by two legs and
a tail hanging below the branches.
T E XT: E I JA- L I I SA
H I LT U N E N - N O R DST R Ö M
11
around the globe
calendar
POWER-GEN INTERNATIONAL
November 28–30
Orlando, USA
POWER-GEN Exhibits feature
the latest in power products and
technologies.
STAND 1428
GASTECH 2006
December 4–7
Abu Dhabi, United Arab Emirates
The 22nd International Conference
& Exhibition for the LNG, LPG and
Natural Gas Industries.
STAND F 72
SALON MARITIMA PARIS
December 6–9
Paris, France
MIDDLE EAST
ELECTRICITY 2007
Firmly established
and recognised as the
premier energy event
in the Middle East,
WÄRTSILÄ FINANCIAL
INFORMATION
The Financial Statement
Bulletin for the 2006 financial
year will be published on
Tuesday 6 February 2007.
February 11–14, 2007, Dubai,
United Arab Emirates
Wärtsilä’s 2007 Annual General
Meeting will take place on
Wednesday, 14 March 2007
in Helsinki, Finland.
NEWSFLASH
The Annual Report 2006 will be
published in Week 10, 2007.
Wärtsilä and MAN Diesel to
cooperate in research
HERCULES-ß – a wide-ranging
cooperative research project - is
being proposed by Wärtsilä and
MAN Diesel, two world-leading
Europe-based manufacturers
of marine engines. Innovations
and technological breakthroughs
which result from the project
will be used to reduce fuel
consumption and emission levels
in the next generation of marine
diesel engines.
Technology Demonstrator
engines incorporating the new
technology will be among the
outputs of the four-year project,
and some of the technologies
developed will be validated in
new vessels. Agreement on the
project is expected in 2007 and
funding proposals will be made
within EU Framework Program 7.
Wärtsilä Propulsion UK
“a worthy winner”
In September, Wärtsilä
Propulsion UK won the RBS
International Trade Award at
the 2006 Hampshire Business
Awards. Selection criteria were: k
Winners of the 2006 Hampshire Business Awards.
[ CO N T I N U ES O N PAG E 14 ]
SEATRADE CRUISE SHIPPING
March 12–15, 2007
Miami, USA
International event for cruise line
visitors and cruise industry suppliers.
around the globe
04.2006
Dictionary
LOW-SPEED ENGINE
An engine whose maximum
running speed is 300 rpm or below.
Normally taken to be a crossheadtype two-stroke engine.
FIREWORKS
Nothing feels more festive than a
spectacular fireworks display at the end of a
special day or event. Celebrating New Year’s Eve,
for example, just wouldn’t be the same without
the dazzling explosions of light, colour and
sound that fireworks provide.
The history of fireworks stretches back to
ancient China and the Han Dynasty (206 BC
to AD 220). The world’s first firecrackers were
made by roasting sticks of bamboo. The
resulting loud bang, known as “bian pao”,
was intended to frighten away evil spirits.
As the centuries passed, Chinese people also
began to use firecrackers as a way of praying
for happiness and prosperity.
The discovery of gunpowder in China made the
invention of true fireworks possible. In ancient
China, the knowledge and skills possessed by
pyrotechnicians – fireworks masters – made
them a members of highly-respected profession.
In most modern cultures, fireworks add an
extra and lively dimension to New Year parties,
anniversaries, inaugurations and official
openings. Competitions are arranged to reward
the most captivating displays.
OFFSHORE
Industrial activity out at sea, such
as drilling and pumping operations
associated with oil or gas wells.
Ro-Ro (ALSO RORO) VESSELS
Ro-Ro stands for Roll-on/Roll-off,
and describes a ship designed
for carrying wheel-based cargo
(including vehicles) which is loaded
and unloaded by being driven rather
than lifted using a crane.
SIMPLE-CYCLE POWER PLANT
In a simple-cycle power plant, the
waste heat from the prime mover(s)
is not used as the energy input for
another power-generation process/
prime mover.
APPOINTMENTS
Mr Clas-Eirik Strand was appointed
President, Wärtsilä China Ltd. and
Director, East Asia Operations on
1 October 2006. Based in Shanghai,
Mr Strand is also Chairman of the
Wärtsilä companies in Japan, Korea,
Vietnam and Taiwan. Mr Strand
was formerly President of Wärtsilä
in Switzerland and responsible for
Wärtsilä’s Ship Power two-stroke
engines.
Mr Lars Anderson was appointed
Vice President, Wärtsilä’s Ship
Power two-stroke engines on
1 October 2006. Mr Anderson is a
member of the Ship Power Board
and reports to Mr Jaakko Eskola,
Group Vice President, Ship Power.
Mr Anderson is based in Winterthur,
Switzerland.
Dr. Martin Wernli was appointed
President, Wärtsilä Switzerland
on 1 October 2006. Dr. Wernli is
a member of the Engine Division
Board and reports to Mr Lars
Hellberg, Chairman of Wärtsilä
Switzerland and Head of the Engine
Division.
[ P EO P L E & FAC ES ]
around the globe
Swedish royal couple tours Wärtsilä
A TOUCH OF HISTORY
T E X T: L E I L A W E S T E R B A C K P H O T O S : K R I S T E R L Ö F R O T H
ON 14 SEPTEMBER 2006, Wärtsilä had both
the honour and the pleasure of introducing
its operations to King Carl XVI Gustaf and
Queen Silvia of Sweden. The visit to the Finnish
company’s Vaasa facilities was part of the City
of Vaasa’s 400th anniversary celebrations.
Wärtsilä was the only industrial company to
be included in the programme.
THE ROYAL PARTY was introduced to the
NEWSFLASH
[ CO N T I N U ES F RO M PAG E 1 2 ]
incredible size and power of the engines
and the high level of turbocharging.
Detailed questions regarding the engines
and components clearly indicated that the
Swedish king is very interested in technology
and also knows a great deal about it. Some
of this knowledge results from his military
service in the Swedish navy.
Commitment to international
trade, evidence of versatility,
imagination and persistence,
increased export or import
turnover, sales into new markets
and Innovative products/services.
Project Genesis cruise ship
powered by Wärtsilä
In July 2006, Aker Yards in Finland
contracted Wärtsilä Corporation
to supply six Wärtsilä 46 commonrail diesel engines and four Lips
transverse tunnel thrusters for
the 220,000 grt Project Genesis
cruise ship being built for Royal
Caribbean Cruise Ltd (RCL). The
THE TOUR INCLUDED the construction site for
new Wärtsilä 32/34 plant and the logistics
centre, and finished in the courtyard. Sales
Director Tore Björkman presented a Wärtsilä
20V34 gas engine awaiting shipment to
Azerbaijan and explained that the engine
would be travelling to its destination along
an ancient route used by the Vikings. This
observation generated so much discussion
that the precise route had to be checked using
a map.
THE VISIT by King Carl XVI Gustaf and Queen
Silvia was the culmination of the city’s jubilee
celebrations. It also added a touch of history,
as the City of Vaasa was established by
Carl IX of Sweden in 1606.
engines will be incorporated into
the ship’s diesel-electric power
plant that supplies all propulsion,
ancillary and hotel services. Project
Genesis is scheduled for delivery
in the autumn of 2009 and will
be operated by Royal Caribbean
International.
Wärtsilä BLRT Services
Klaipeda open for business
The Wärtsilä BLRT Services
Klaipeda joint venture started
operation in September. Owned
by Wärtsilä Corporation (51%)
and the BLRT Group (49%), the
new company offers full ship-
repair services in the Baltic
region, including the servicing of
engines, gearboxes, propellers
and other onboard equipment.
In addition to its 70 employees,
the new company can draw on
the extensive resources of both
Wärtsilä and BLRT’s subsidiary
Western Shipyard to meet specific
service needs.
Wärtsilä in Norway
Three Wärtsilä companies in
Norway: Wärtsilä Norway, Wärtsilä
Propulsion Norway and Wärtsilä
Automation Norway, are to be
merged into a single company
under the name Wärtsilä Norway.
The merger is expected to come
into effect on 1 January 2007.
Order for 50 propellers in China
The Wärtsilä CME Zhengjiang
Propeller Co. Ltd joint venture
in China has received an EUR 17
million order for 50 fixed pitch
propellers (FPP) for delivery to
two Chinese shipyards, the New
Century Shipyard and the New
Times Shipbuilding Co. Ltd.,
both located in China’s Jiangsu
Province. The propellers are
destined for tankers and container
ships scheduled for delivery in
[ CO LU M N ]
Focus on core areas
IN 2000, WÄRTSILÄ DECIDED
to focus its activities on
Ship Power, Power Plants
and Services (also called
the Power businesses) and
to gradually reduce levels
of ownership in non-core
sectors of the company.
The latest steps in these areas
were taken when Wärtsilä,
together with SKF and
Rautaruukki, agreed to sell the
operating companies of Ovako to a Dutch-German
investor group. This transaction will be finalized
by the end of 2006 and is estimated to close during
Q4/06. Earlier this year, in May, another step was
taken by selling 10 Million Assa Abloy B-shares,
reducing our stake in the company to just 2%.
timing is of the utmost
importance to guarantee the best possible value for
shareholders. Assa Abloy’s share price had recovered
to a reasonable level, while the bullish market
situation in the steel industry enabled a withdrawal
from Ovako ownership on optimal terms. When
Wärtsilä became an owner of Ovako, the goal was to
benefit from synergies between operations brought
in from SKF, Rautaruukki and Wärtsilä. Ovako’s
business has now developed to a point where a
change in ownership represents a natural step.
The significant capital gains resulting from the
above transactions increase Wärtsilä’s cash flow
and improve solvency. In actual fact, combined
with a good operational performance and
cash flow, these transactions will eliminate the
Group’s interest-bearing debt by the year end.
IN TRANSACTIONS OF THIS TYPE,
2007–2009.
The Wärtsilä/CME joint venture
is currently investing in a new
propeller foundry in Zhengjiang
which will enable the company to
supply complete FPP and shaftline packages, as well as blades and
hubs for controllable pitch propeller
(CPP) installations. The new plant
will be ready in June 2007.
World’s largest swinging bell
Ordered by the Japanese
entrepreneur Kiyokazu Shoji
for his tourist resort in Gotenba
City, the world’s largest swinging
bell has been cast at Wärtsilä
Propulsion’s foundry in Drunen
in The Netherlands. As the huge
bell exceeded the capacity of
Royal Eijsbouts’ foundry, the two
companies worked together to
produce it, designing and building
Drunen’s highest-ever casting
system, a mould almost 14 metres
high. The new bell has a diameter
of almost four metres and weighs
more than 36 tons. Its first peal
will be heard in Japan around
Christmas 2006.
for shareholders calls
for reasonable gearing, we can now study the
possibilities for further development of the
Group through acquisitions and/or
improvement of the dividend stream.
SINCE AN OPTIMAL RETURN
Raimo Lind
Executive Vice President,
Chief Financial Officer
Wärtsilä Corporation
around the globe
[ Y EST E R DAY, N OW, TOM O R ROW | Q & A ]
My books
T E XT: T E RO S E P P Ä L Ä
HOW MUMBO-JUMBO
CONQUERED THE WORLD
– A short history of modern
delusions
Francis Wheen
British journalist Francis
Wheen observes modern
society and finds it has
diluted, if not completely
forgotten, the Age of
Enlightment and its legacy.
His claim is that instead of
using common sense, we
resort to “mumbo-jumbo”
and delusions. In most
cases, he excels in building a
compelling case to support
his observations. The themes
flow from globalization,
capitalism and stock
market to sciences, religion
and politics, as well as to
conspiracy theories, business
life, leadership and self-help
gurus – a real cornucopia of
specimens.
MEASURING SPEED
–The origin of knots
Knowledge of a ship’s speed
through the water is an essential
element in systems of dead reckoning, standard practice in the
days before modern navigation instruments became available.
The entertaining examples
seen in almost everything and
everywhere are the book’s
inherent strength – but also
a shortcoming. Nevertheless,
Wheen’s analytical collage
is amusing and well worth
reading.
AU T H O R I S G E N E RA L
M A N AG E R , P O RT FO L I O
P L A N N I N G & VO LUM E
O PT I M I SAT I O N , W Ä RTS I L Ä
CO R P O RAT I O N
YESTERDAY Standard equipment
on all small vessels, the Chip Log
consists of a sand glass to measure
time and the “chip”, a small weighted
wood panel attached to a reel of 150
fathoms (275 metres) of light rope.
Marked with knots tied at equal distances of approximately eight fathoms (14.6 metres) along its length,
the chip is cast into the sea behind
the ship, and the resulting drag
causes the rope to unwind from the
reel.
Counting the number of knots that
go overboard in the half minute measured by the sand glass provides a
remarkably-accurate estimate of
a ship’s speed. This is the origin of
the knot, the nautical unit of speed,
which is one nautical mile per hour.
Since one nautical mile (6080 feet)
is almost exactly the same as one arc
minute of the earth’s circumference,
both ships and aircraft use this unit
when calculating distances.
NOW In addition to systems that
use positioning information obtained
from GPS satellites, pitometer logs,
impeller logs and Doppler speed logs
are all current methods of measuring speed through the water. In larger constant-draught ships fitted with
CP propellers, the relationship between between propeller-shaft rpm
and speed through the water is also a fairly consistent one, so engine
speed can also be used for this purpose.
TOMORROW As with the other tools
used in navigation, mechanical methods of measuring speed are first supplemented, then eventually replaced
by digital techniques using information obtained from satellite and other systems. All of these, of course,
depend on the availability of reliable
sources of energy.
T E XT: R I C K M c A RT H U R
P H OTO : M I RVA K A K KO
around the globe
Where can you
find this dog
– a symbol of
loyalty?
You’ll find the
answer on page 71.
photo quiz
[ CO LU M N ]
around the globe
Automation
STRENGTHENS OUR BASE
TAKING A NARROW-MINDED VIEW, automation
is great, just a fraction outside Wärtsilä’s core
business. So who wants to be narrow-minded?
Not us.
For years, we’ve been delivering major turnkey
projects in the power plant business, making
sure our customers get not only state-of-the-art
machinery in their power plants, but also the plant
management systems - the automation. In the
marine business, our traditional focus has been on
main and auxiliary engines and propulsion, leaving
electrical and automation systems and even other
things that are closely related to engines to others.
Many of our customers would however prefer
to deal with fewer but stronger players in the
market, those that can deliver complete packages,
all the way from A to Z, from engines to turnkey
systems and a full range of after-sales services.
By expanding our services on the electrical
and automation side, we strengthen our position
in the marine business as a preferred one-stop
service provider for entire vessels.
The plan is not to become another manufacturer
of general automation products and devices, but
rather to focus on applications within our core
businesses, using products and systems based on
industry standards and open architecture.
Our competitive edge will come from a new
range of products and system designs which
complement our existing technological abilities,
and our comprehensive, in-depth understanding of
customers’ needs in our traditional business areas.
The way I see it, working on our core business
in this way will make us a better and stronger
supplier both now – and in the future.
Pekka Ahlqvist
Vice President
Automation
[ CORPOR ATE CITIZEN SHIP ]
Mayan hieroglyphic writing system, while
Dr. Guernsey focuses on tales told not in
words but in the marks left by daily activities
and artistic creations. She acknowledges that
the stories uncovered by deciphering the
Maya’s written language are a vital piece of
the puzzle, but adds that, for art historians
like herself, “Art speaks volumes, and was an
equally important form of expression and
communication.”
A VERY SOPHISTIC ATED
CIVILIZATION
Wärtsilä supports Mesoamerica Center
THE
A LEADER IN PROVIDING ELECTRICAL GENERATION TECHNOLOGY TO POWER
MW
1500
THAN
ECONOMIES OF CENTRAL AMERICA, WÄRTSILÄ HAS INSTALLED MORE
OF GENERATION CAPACITY IN THE REGION DURING THE PAST FIFTEEN YEARS.
hile doing so, Wärtsilä became
increasingly aware of the rich
history of this beautiful part
of the world and its peoples. More than
three thousand years ago. The region
now known as Mesoamerica (southern
Mexico, Guatemala, Belize, Honduras and
El Salvador) was a vital cradle for many
different but interrelated pre-Columbian
civilizations. It is only in recent decades that
historians and archaeologists have begun to
gain a more complete understanding of the
area and its peoples.
W
peers in the Guatemalan community, and
to open many of its activities to the public.
Beginning in January 2007, historic Casa
Herrera will house the programmes of the
Mesoamerica Center, focusing on study
of the arts, languages and archaeology of
Mesoamerican indigenous cultures.
ARTS, LANGUAGES
AND ARCH AEOLOGY
As part of its commitment to development
in the region, Wärtsilä is a supporter of the
Mesoamerica Center, University of Texas
(UT) and Casa Herrera, a new Guatemalan
facility. Located in Antigua, this facility will
allow international scholars, researchers
and artists to interact directly with their
Recent discoveries have provided researchers
with crucial links between the Classic Maya
and their antecedents, the Olmecs, who
flourished during the Middle Pre-Classic
florescence. As Dr. Guernsey emphasizes,
these new discoveries confirm that “The term
‘Pre-Classic’, with its suggestion of something
that wasn’t fully formed or developed, is a
misnomer.” Clearly frustrated by the use of
this term, and its inaccurate implications,
she continues “The more we learn, the more
we realize that what we’re looking at is a very
sophisticated civilization. A lot of the ideas
we typically credit to the Classic Maya are
actually much more ancient.”
Work by researchers such as Dr. Stuart, Dr.
Guernsey and their Mesoamerican Center
colleagues means these ancient voices will be
heard more clearly in future years.
DISCOVERIES FROM
THE PRE-CLASSIC PERIOD
Thanks to Dr. David Stuart and Dr. Julia
Guernsey, two members of the UT faculty
who work in the Mesoamerica Center, these
cultures are speaking to us from the past.
Recent discoveries made by researchers and
others have helped to re-define the Preclassic period (300 BC – 250 AD) in ancient
Mesoamerica. Although long considered
some sort of “dark age”, new discoveries
have illuminated our understanding of the
Pre-classic period as a time when written
language, culture, and the arts flourished.
Dr. Stuart’s area of expertise is the ancient
AUTHOR IS VICE PRESIDE NT, POWER PLANTS,
WÄRTSIL Ä IN NORTH AMERICA
TEXT: FRANK DONNEL LY PHOTOS : WÄRTSI LÄ
reportage
Besides larger
infrastructural elements
there are also small
but essential items that
keep Japanese society
functioning. The list
features efficient trains,
multi-function mobile
phones, and high-tech
seals.
DE TA I L S
M AT T ER
[ A F R I CA | A M E R I CAS | AS I A | EU RO P E | O C E A N I A ]
Guidance for travellers
looking for the route they
should take can be found
on maps that display the
subway lines in different
colours. Each station has its
own alphanumeric code.
reportage
T E XT: K ATJA A L A JA P H OTOS : P E T R I A RT T U R I AS I K A I N E N
A
s the sun rises over Tokyo, the hustle and bustle begins
in the tiny suburban apartments of the city’s 12 million
residents. After a quick breakfast, reminiscent of a
European lunch – fried fish, rice, vegetables and miso
soup, a Japanese soup flavoured with soybean paste –
people hurry to perform their duties at work and school.
Travellers prefer trains and the subway because they can sleep during
the journey, while cars just get stuck in traffic jams. Tokyo’s transport
network, with more than 70 train and subway lines and 1000 stations,
is bigger than its counterparts in New York and Paris.
Tokyo also boasts Shinjuku, the world’s busiest station, used by
well over three million people each day. Essentially a giant hub where
passengers change trains, Shinjuku Station has more than 200 exits.
Guidance for those not sure of their route is available from a map that
shows all the subway lines in different colours with alphanumeric codes
for each station.
The Shinjuku show is repeated every couple of minutes between 7
a.m. and 9 a.m. Doors fly open and masses of stylish businessmen, so
called salarymen and business women briskly flow out. At almost the
same moment, groups who are boarding trains step into super-clean
compartments from the super-clean station, both of which are the
Tokyo standard.
When travelling to Japan’s other big cities, people use Shinkansen,
often called “bullet trains” because of their rounded shape and high
speeds. The fastest, Nozomi, runs at around 300 km/h from Tokyo to
Osaka and on to Fukuoka. In the future, passengers will be travelling
at speeds of more than 500 km/h if development work on levitating
magnetic trains is successful.
Sushi – delightful to the eye,
and a delight for the palate.
English in signs and
publications is a rarity.
UNIQUE FORM OF RUBBER PLAYS KEY ROLE
Since early in the morning, employees of Japan Marine Technologies
(JMT), Wärtsilä-owned and one of Japan’s top marine equipment
manufacturers, have been hard at work at the Toyama factory. They
produce sterntube seals and bearings for the propulsion shafts used
in ships.
For trouble-free operation, one of a vessel’s small but very essential
components is a JMT Airguard 3AS, an anti-pollution, lip-type
sterntube sealing system. It has a dual function – stopping lube oil
from leaking into the sea and preventing sea water from entering
the sterntube by the ingenious use of an air barrier and multiple
sealing rings.
As it uses a unique, in-house-developed rubber compound in the
seal rings, the most important parts of the seal, JMT has complete
control over its production instead of purchasing the material from
subcontractors. The quality of the rubber employed is of fundamental
importance - it must be strong enough to resist both the pressure
p
reportage
In certain parts of Tokyo,
also streets are nonsmoking areas.
Crossing the streets in
Tokyo is like swimming
in a sea of people.
The quality
of the rubber
employed is of
fundamental
importance.
of the seawater and the heating caused by the revolving
propeller shaft.
Research and development aimed at continuous
improvement is integrated into everyday activities at JMT.
It includes the endurance testing of rubber seal rings in
hazardous operating conditions, fatigue testing and other
methods of identifying improved materials that can be used
in seal rings.
Even though many other Japanese companies are moving
production to China and southeast Asia to take advantage of
lower production costs, the high quality of JMT products and
the expertise and service consciousness displayed by the JMT
team means that production of JMT Airguard 3AS lip seals
in Toyama will continue. Since JMT is expecting significant
growth in lip seal business, investing in Japan is a must.
HEALTHY SEAWEED IN A BENTO
At lunchtime, business people pour out of their offices in the
Marunouchi business district, a key financial centre and home to
several of Japan’s largest corporations. Even salarymen on bikes,
who usually favour pedestrian alleys, can be found here.
Many head towards convenience stores to buy a proper
bento, a ready-made lunch in a box. Beautifully arranged,
bentos include rice, fish or meat and pickled or cooked
Seal liners are an
important component
in JMT Airguard 3AS lip
seals. Produced using
a special type of highnickel-chromium steel,
they offer optimum
resistance to wear
and corrosion.
vegetables and possibly sushi, for example maki rolls made
from rice, tuna and nori seaweed.
Tasty seaweed is as essential to the Japanese as pasta is
to Italians. It is an ingredient in miso soup, salads and
rice dishes and also as a side dish. Seaweed contains many
minerals, calcium and vitamins and is healthy – just like
the whole of the Japanese diet. It’s no wonder that the
Japanese have the longest life expectancy in the world: 86
years for women and 79 years for men according to the
World Health Organization. On the other hand, eating
habits are now changing as young people have discovered
western fast food.
People do not eat in the streets as this is considered to be
impolite, but return to their strictly organized open-plan
offices. After enjoying their lunch, employees continue
working hard for their employers. Everyone is expected
to stay late - especially those looking for promotion. It
is commonly said that they should not leave the office
before their superiors, and this can happen as late as
8 or 9 p.m.
MOBILE PHONES OFFER MANY SERVICES
While employees are busy at work, students, housewives
and the elderly have time to shop in Tokyo’s giant
department stores, electronics shops and fashion
boutiques.
Many people head to Akihabara, the famous electric
town, where box-like buildings blink in every possible
p
Manga – comic-strip
characters – appear in
many forms and in many
locations. Some young
people even dress the
way their favourites do.
colour. The electronic shops offer everything from the latest
digital cameras to electronic components manufactured by
both international companies and Japan’s best-known brands:
NEC, Panasonic, Sharp, Sony, Toshiba...
Sony’s MP3 player resembles a fancy lipstick. Salesman
Gino Kuo Tsung confirms that it is the very latest model,
continuing the current boom in MP3 players. “Japanese
people always want new gadgets,” says Kuo Tsung, who is
originally from Taiwan.
Why is this? “They are rich,” says Kuo Tsung, and he’s
on the right track. In 2005, Japan’s GDP per capita was
some EUR 25,500. The Japanese are also extremely fond
of entertainment. They are constantly fingering their big,
clamshell-style mobile phones as they can use them to watch
TV, write e-mails, read news and manga comic strips, take
photos, purchase goods from mobile-phone shopping websites
and find out where they are or should be.
Even if 7-8% of all electrical appliance sales in Japan
are still made in Akihabara, it has lost clients to powerful
competitors in Shinjuku. Akihabara is therefore focusing to
an increasing extent on anime, i.e. animation, video games,
toys and doujinshi - self-published manga comic strips
or novels - a growing trend thanks to the development of
personal publishing technology. Some doujinshi are alternative
versions of existing manga or anime series, others are created
from scratch.
Extremely style conscious, the Japanese also love shopping
for clothes. The most demanding consumers prefer the
brand shops in the Ginza and Omote-Sand fashion districts.
The Prada building in Omote-Sand is also architecturally
fascinating – an innovative six-story glass crystal which is soft
despite all its sharp angles. Some of the glass is curved, giving
you the sensation that the building is moving as you walk
around it.
HIGH-QUALITY SEALS KEEP VESSELS MOVING
When JMT Airguard 3AS lip seals are ready for delivery to
clients, they are loaded onto ships which transport them to
shipyards in Japan, South Korea and China. One client is
NYK Line, Japan’s leading shipping and logistics company
and also one of the world’s largest, whose fleet of more than
p
reportage
The Japanese
are also
extremely
fond of
entertainment.
Glitz and glam –
covers and stickers for
mobile phones come
in every conceivable
colour and form.
There’s a multitude
of consumer devices,
some so small that
it’s interesting to work
out what they actually
do. This is one of the
newest MP3 players.
Specialist engineers
are on standby at strategic
locations all over the
world if an inspection
should be required.
Tokyo has been designed to be
rail-centric, with major train
stations such as Shinjuku, and
suburban railways at street level.
Even though expressways for
cars have been built, the basic
design philosophy continues.
reportage
700 ships includes container carriers, VLCCs, LNG
carriers, LPG carriers, bulk carriers, car carriers and
multipurpose RoRo vessels. Recently, NYK Line has
signed contracts for 20 large container carriers that will
be fitted with JMT Airguard 3AS lip seals.
JMT Airguard 3AS lip seals are fitted around propulsion
shafts while a vessel is being constructed. Once a ship
has been launched, access to the seals can only be gained
during scheduled visits to harbour or dry dock. As the
first sealing ring shuts out seawater and the second and
third rings provide active security against oil spillage,
lip seals ensure that ships can be kept on the move in an
environmentally-friendly way.
The durable construction of JMT Airguard 3AS lip
seals means that maintenance is easy. NYK Line only has
to arrange for replacement for the seal rings every five
years, and the metallic liner usually lasts for the lifetime
of a ship.
While lip seals are in practice fail-safe, external factors
such as fishing nets or very sandy water may result in
damage. JMT is always on hand to provide immediate
service. As well as providing NYK Line with consultation
services, specialist engineers are on standby at strategic
locations all over the world if an inspection should
be required.
SERVICE BEGINS WITH A GREETING
After the working day is over, Japanese people head for
the bright lights, often for social reasons. They go to
bars, clubs, restaurants, cinemas and theatres, but are
most passionate about karaoke and playing games. The
best-known entertainment districts are Roppongi Hills,
which offers nightclubs with an international flavour,
and multi-faceted Shibuya and Shinjuku, where even the
grasshoppers can be heard chirping. This is more than
welcome as life in Tokyo puts a lot more pressure on what
can be seen than on what can be heard.
Of all the different games available, pachinko is a
real favourite. The noise level in the Sega game centre
in Shibuya is truly unbelievable – it’s as if one is in the
middle of a battle. On the contrary, people of all ages are
simply playing pachinko to their heart’s content, trying
to control numerous tiny steel balls being thrown into a
combination slot and pinball machine.
As a businessman checks his mobile phone in the
middle of a game, the comical cat trinket he has attached
to the phone sparkles. “It’s a Japanese thing,” he explains,
laughing.
As evening turns into night, the small eateries serving
yakitori - chicken on skewers and ramen, noodles with
a variety of toppings in a delicious broth – become
increasingly tempting. Even though such places are
thought of as fast food restaurants, the level of service is
just as high as in the most expensive sushi establishments.
The air is full of irassyaimase! – the “Nice to meet you!”
greetings used to welcome each group of diners.
SHIPS BRING LIFE TO JAPAN
Day after day, NYK Line ships arrive at Tokyo’s harbour
and other locations in Japan. They are very welcome as
Japan’s mountainous terrain means the Japanese would
have a hard time doing without the wide range of imported
raw materials they bring. Shops also receive the goods they
have ordered from overseas suppliers.
With reliability levels as high as 99.8-99.9%, including
failures not attributable to JMT, every single JMT Airguard
3AS lip seal plays its part with the greatest distinction. It’s
one of the small but necessary details that keep Japanese
society functioning smoothly.
The trains and subways
used by Tokyo’s 12
million inhabitants
are punctual,
clean and safe.
Even in a crowd of hurrying
people, politeness is
a fundamental part of
the Japanese way.
feature
[ F E AT U R E ]
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TEXT: MARJATTA PIETILÄ ILLUSTRATION: KLAUS WELP
INNOVATION activity is the most
important competitive factor in the
global economy. In this race, the US is
clearly in the lead. While production
is moving to low cost locations in Asia,
Europe is gathering its innovative
resources to bolster its economies.
An innovation system is often understood to be a synonym for
research and development (R&D). This is, however, not the case. While
R&D activity is the core of an innovation system, to be innovative
an economy must also have the ability to apply new technologies and
succeed in creating framework conditions and structures that support
change. This includes establishing a market with both active consumers
and users of new services who will stimulate innovation.
The best innovations are seldom created by experts in an existing
field. The most fruitful soil for innovations is at the interfaces between
different worlds, where customers and experts in different industrial
sectors and science meet. Innovativeness is also something that is more
associated with the young than with the old, because the latter are more
cautious about the risks that innovation demands. Age itself does not
set limits on innovativeness, but attitudes towards risk taking should be
reconsidered.
Success in global competition involves three factors: research and
development, industrial manufacturing and the skills involved in
p
Text: Marjatta Pietilä
feature
Revolutionary
sources of light
The Millennium Technology Prize
is the world’s largest technology
prize. It is awarded for a specific,
groundbreaking technological
innovation that improves the quality
of human life, contributes towards
the realization of human values, and
encourages sustainable economic
growth.
The prize of one million euros and
the “Peak” trophy were presented
in September to Professor Shuji
Nakamura by Tarja Halonen,
President of the Republic of Finland.
Professor Nakamura developed
new and revolutionary sources of
light-bright-blue, green and white
light-emitting diodes (LEDs) and a
blue laser. His innovation launched
a completely new sector in lightproducing semiconductor research
and development, and has made
possible the widescale industrial
production of energy- saving
LED lights. Not only do they have
much longer lives than normal
incandescent lamps, LEDs consume
far less energy. According to
Professor Nakamura, using LEDs for
all forms of lighting could halve the
amount of electricity used for this
purpose.
One of the future applications for
Professor Nakamura’s invention is
the sterilisation of drinking water.
The use of ultraviolet LEDs makes
the process of water purification
both cheaper and more efficient.
In data-storage and transfer
applications, using the light
generated by blue lasers means that
the amount of data stored on CDs or
DVDs can be five times higher than
is possible using current techniques.
Professor Shuji Nakamura was
born in Japan in 1954. He has
worked in the US at the University
of California, Santa Barbara since
2000.
The Millennium Technology Prize
is funded by the Millennium Prize
Foundation and awarded every
second year. The foundation was
established by Finnish organisations,
industrial concerns and the
Finnish state. The first Millennium
Technology Prize was awarded to
Sir Tim Berners-Lee in 2004 for his
invention of the World Wide Web.
commercialisation. In terms of R&D skills, the US
represents the highest levels. In manufacturing, the
focus has moved to Asia, but in the commercialisation
of new innovations the USA is, once again, at the top.
In all these areas, Europe is lagging behind and faces
great challenges in improving its performance, if it is
to maintain a competitive edge.
China and India will also be strong in
manufacturing in the future, and their share of
research and development activity is increasing.
Currently, although they are training large numbers
of scientists and technologists, they still have a
long way to go before they can be called innovative
societies. In China, societal structures are still
centralized. India lacks an environment that supports
innovation. Both societies also have many unsolved
problems in their framework conditions. Technology
used in production is mostly imported, not developed
by domestic concerns. Also, the basis for innovation is
not solely educational or material factors, there must
be incentives and a culture that supports change in
both attitudes and performance.
Success cannot be bought by simply
investing in R&D. Investing in research and
development is a process through which money is used
to create knowledge. Innovation, on the contrary, is a
process in which knowledge is used to make money.
While the latter process is poorly managed in Europe,
the US has succeeded in integrating R&D investment
and its application. North Americans have created
entrepreneurial structures where risks are turned into
victories and almost all innovations are tested in the

Wärtsilä Quarterly Magazine

Transcription

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