Dr.-Ing.

Yves
Expert Opinion
Wild
Ingenieurbüro GmbH
Refrigeration Engineering Consultancy
Marine Engineering Expert Opinions
System Engineering Measurements
Our Reference
Address: Elbchaussee 1
2004/0036 D-22765 Hamburg
Germany
Date
Telephone: +49 40 390 70 65
17. September 2005 Mobile: +49 172 410 18 26
(revised edition) Fax: +49 40 390 24 75
Email: YWild@DrWild.de
On behalf of
Web: www.DrWild.de
Thermo King Corp.
314 West 90th Street
Minneapolis, MN 55420-3693
Client’s Reference

Titel

Determination of energy cost

of electrical energy
on board sea-going vessels

by

Dr.-Ing. Yves Wild

Location of the company: Hamburg Bank account: Financial Authority Hamburg-Altona

Registered at Amtsgericht Deutsche Bank Hamburg Tax no.: 02/895/05008
Hamburg HR B Nr. 53854 BLZ: 200 700 24 VAT ID no.: DE 158 712 034
Managing Director: Dr.-Ing. Yves Wild Account no.: 6429716 00
File: Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc
Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

Content

1 Scope of this report ..........................................................................................1

2 Introduction .....................................................................................................1
3 Cost factors to be considered............................................................................2
3.1 Fuel oil consumption .................................................................................2
3.1.1 Nominal fuel oil consumption .............................................................3
3.1.1.1 Theoretical background ...............................................................3
3.1.2 Effective fuel oil consumption (example)...............................................6
3.1.3 Development of bunker oil prices ........................................................7
3.2 Lub oil consumption ................................................................................10
3.2.1 Nominal lub oil consumption ............................................................10
3.2.2 Effective lub oil consumption (example)..............................................11
3.2.3 Lub oil prices....................................................................................11
3.3 Efficiency of alternator .............................................................................11
4 Cost calculation .............................................................................................12
5 Summary.......................................................................................................14

File: Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc

Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

1 Scope of this report

This report is given on behalf of

Thermo King Corp.

314 West 90th Street
Minneapolis, MN 55420-3693

The following question shall be answered by an independent expert:

- What is the cost per kWh electrical energy on board sea-going vessels?

The undersigned has been contacted by Mr. Steve Bryant (Thermo King USA) and Mr.
Dermott Crombie (Thermo King Europe) in October 2004 in order to discuss the scope
of the evaluation. During the Intermodal Exhibition 2004 in Copenhagen the issuing
of a formal report has been requested.

A first edition of this report has been issued in February 2005. Due to the significant
increase of bunker prices during 2005 a revised edition has been issued in September
taking into consideration the current price levels.

2 Introduction
On board of sea-going vessels the electrical energy has to be produced by on-board
alternators. These alternators are mainly driven by diesel engines or by a PTO (Power
Take Off) from the propeller shaft. Sometimes also other energy sources are used by
installing for example exhaust gas turbines or steam turbines (the steam being
produced with exhaust gas heat). However, the vast majority of vessels is equipped
with diesel generators only.

The following investigation therefore only considers electrical power generation by

medium-speed 4-stroke diesel engines or slow-speed 2-stroke diesel engines (main
engine) with shaft generator.

On modern container vessels the vessel’s internal power demand is approx. 600 kW
to 1,200 kW depending on the ships size. The main consumers are pumps, fans and
A/C systems. Beside this internal power demand the power consumption of reefer
containers has a significant impact on the overall power consumption. For example
the “Monte”-class vessels of Hamburg-Süd (built 2004 / 2005 at Daewoo) are

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

equipped with 1,365 plugs for reefer containers and have an installed diesel
generator capacity of approx. 15 MW.

Thermo King as an important manufacturer of refrigeration aggregates for reefer

containers claims to offer significant energy savings with their MAGNUM unit in
comparison to competitors’ products. In order to determine the cost savings that go
along with the energy savings this study here shall determine the specific cost for the
electrical energy on board of ships.

3 Cost factors to be considered

The cost for the electrical power generation can be divided into the direct cost
(consumables) and the indirect cost (investment, maintenance).

Investment cost are not taken into consideration in this study because it is difficult to
determine any savings that might be achievable by the installation of smaller diesel
generators in case of having a fleet of low power consumption reefer containers.

Maintenance cost is also not taken into consideration because here, too, it is difficult to
determine any savings if the power consumption of reefer containers is reduced. It
sometimes even might be worse to run diesel engines at lower load thus resulting in
higher maintenance needs.

Therefore only the direct operating cost that are caused by the consumables

ƒ fuel oil

and

ƒ lubrication oil.

are analysed in this study.

3.1 Fuel oil consumption

Fuel oil consumption has the greatest impact on operating cost of diesel generators.
Therefore the fuel oil consumption of diesel engines will be addressed in more detail
below.

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

3.1.1 Nominal fuel oil consumption

3.1.1.1 Theoretical background

Heat of combustion, specific energy or calorific value, is a measure of the energy

content of the fuel. It decreases as density, sulphur, water and ash content increase.
Specific Energy is not controlled in the manufacture of fuel except in a secondary
manner by the specification of other properties.

The energy that is stored in fuels is expressed by the calorific value. When burning
mineral oils not only CO2 is produced but also water vapour. The net calorific value
only specifies the energy that can be used without the condensation heat of this water
vapour. It is therefore applicable for diesel engines. In modern house-hold boilers also
the water is condensed so that in this case the gross calorific value is used.

Net specific energy can be calculated with a degree of accuracy acceptable for normal
purposes from the equation

Qn = (46.704 − 8.802 ⋅ 10 −6 ⋅ ρ 2 + 3.167 ⋅ 10 −3 ⋅ ρ ) ⋅ [1 − 0.01 ⋅ ( w + a + s)] + 0.01 ⋅ (9.240 ⋅ s − 2.449 ⋅ w)

[MJ/kg]1

with ρ = the density at 15 °C [kg/m³]

w = the water content [mass-%]

a = the ash content [mass-%]

s = the sulphur content [mass-%]

The net calorific value of marine diesel oil (MDO) and marine gas oil (MGO) is
42,700 kJ/kg, for intermediate fuel oils (IFO) and heavy fuel oils (HFO) it is approx. in
the range from 39,000 to 41,000 kJ/kg. An average of 40,000 kJ/kg can be assumed
for IFOs / HFOs thus resulting in an increase of the specific fuel consumption of
6.75 % in comparison to MDO.

When burning fuel in a diesel engine the thermal efficiency determines the amount of
mechanical energy at the shaft of the engine in relation to the energy in the fuel. Table
1 shows the calculation of the specific fuel consumption. Modern slow-speed 2-stroke
diesel engines as used as main engines on today’s cargo vessels reach a specific fuel

1
See ISO 8217:1996 – Annex A - Informative

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

consumption of approx. 165 g/kWh (when running on MDO) which is equivalent of a

thermal efficiency of slightly more than 50 %. Medium-speed 4-stroke engines as used
as diesel generators on board of vessels can reach a thermal efficiency of up to 45 %
(or approx. 185 g/kWh). High-speed 4-stroke engines (like often used in mobile
power packs) only reach approx. 220 – 250 g/kWh or approx. 35 – 40 % thermal
efficiency.

Specific fuel consumption per mechnical kWh (at motor shaft)

Thermal efficiency of diesel engine
168,6 gr/kWh 25% 30% 35% 40% 45% 50% 55% 60%

42.700 kJ/kgK 337,2 gr/kWh 281,0 gr/kWh 240,9 gr/kWh 210,8 gr/kWh 187,4 gr/kWh 168,6 gr/kWh 153,3 gr/kWh 140,5 gr/kWh
Net calorific value of the fuel

42.500 kJ/kgK 338,8 gr/kWh 282,4 gr/kWh 242,0 gr/kWh 211,8 gr/kWh 188,2 gr/kWh 169,4 gr/kWh 154,0 gr/kWh 141,2 gr/kWh

42.000 kJ/kgK 342,9 gr/kWh 285,7 gr/kWh 244,9 gr/kWh 214,3 gr/kWh 190,5 gr/kWh 171,4 gr/kWh 155,8 gr/kWh 142,9 gr/kWh

41.500 kJ/kgK 347,0 gr/kWh 289,2 gr/kWh 247,8 gr/kWh 216,9 gr/kWh 192,8 gr/kWh 173,5 gr/kWh 157,7 gr/kWh 144,6 gr/kWh

41.000 kJ/kgK 351,2 gr/kWh 292,7 gr/kWh 250,9 gr/kWh 219,5 gr/kWh 195,1 gr/kWh 175,6 gr/kWh 159,6 gr/kWh 146,3 gr/kWh

40.500 kJ/kgK 355,6 gr/kWh 296,3 gr/kWh 254,0 gr/kWh 222,2 gr/kWh 197,5 gr/kWh 177,8 gr/kWh 161,6 gr/kWh 148,1 gr/kWh

40.000 kJ/kgK 360,0 gr/kWh 300,0 gr/kWh 257,1 gr/kWh 225,0 gr/kWh 200,0 gr/kWh 180,0 gr/kWh 163,6 gr/kWh 150,0 gr/kWh

39.500 kJ/kgK 364,6 gr/kWh 303,8 gr/kWh 260,4 gr/kWh 227,8 gr/kWh 202,5 gr/kWh 182,3 gr/kWh 165,7 gr/kWh 151,9 gr/kWh

39.000 kJ/kgK 369,2 gr/kWh 307,7 gr/kWh 263,7 gr/kWh 230,8 gr/kWh 205,1 gr/kWh 184,6 gr/kWh 167,8 gr/kWh 153,8 gr/kWh

Table 1: Specific fuel consumption per mechanical kWh depending on the thermal efficiency of the
engine and the net calorific value of the fuel

Specific fuel consumption per electrical kWh (at generator output)

Thermal efficiency of diesel engine
177,5 gr/kWh 25% 30% 35% 40% 45% 50% 55% 60%
42.700 kJ/kgK 355,0 gr/kWh 295,8 gr/kWh 253,6 gr/kWh 221,9 gr/kWh 197,2 gr/kWh 177,5 gr/kWh 161,4 gr/kWh 147,9 gr/kWh
Net calorific value of the fuel

42.500 kJ/kgK 356,7 gr/kWh 297,2 gr/kWh 254,8 gr/kWh 222,9 gr/kWh 198,1 gr/kWh 178,3 gr/kWh 162,1 gr/kWh 148,6 gr/kWh
42.000 kJ/kgK 360,9 gr/kWh 300,8 gr/kWh 257,8 gr/kWh 225,6 gr/kWh 200,5 gr/kWh 180,5 gr/kWh 164,0 gr/kWh 150,4 gr/kWh
41.500 kJ/kgK 365,3 gr/kWh 304,4 gr/kWh 260,9 gr/kWh 228,3 gr/kWh 202,9 gr/kWh 182,6 gr/kWh 166,0 gr/kWh 152,2 gr/kWh
41.000 kJ/kgK 369,7 gr/kWh 308,1 gr/kWh 264,1 gr/kWh 231,1 gr/kWh 205,4 gr/kWh 184,9 gr/kWh 168,0 gr/kWh 154,0 gr/kWh
40.500 kJ/kgK 374,3 gr/kWh 311,9 gr/kWh 267,3 gr/kWh 233,9 gr/kWh 207,9 gr/kWh 187,1 gr/kWh 170,1 gr/kWh 155,9 gr/kWh
40.000 kJ/kgK 378,9 gr/kWh 315,8 gr/kWh 270,7 gr/kWh 236,8 gr/kWh 210,5 gr/kWh 189,5 gr/kWh 172,2 gr/kWh 157,9 gr/kWh
39.500 kJ/kgK 383,7 gr/kWh 319,8 gr/kWh 274,1 gr/kWh 239,8 gr/kWh 213,2 gr/kWh 191,9 gr/kWh 174,4 gr/kWh 159,9 gr/kWh
39.000 kJ/kgK 388,7 gr/kWh 323,9 gr/kWh 277,6 gr/kWh 242,9 gr/kWh 215,9 gr/kWh 194,3 gr/kWh 176,7 gr/kWh 161,9 gr/kWh

Table 2: Specific fuel consumption per electrical kWh (at 95 % alternator efficiency) depending on
the thermal efficiency of the engine and the net calorific value of the fuel

Under part-load condition the specific fuel consumption is increasing significantly. This
increase is higher when operating as generator (constant speed) than as propulsion
engine (propeller curve) (see Fig. 1).

Fig. 2 shows the influence of the engine speed on the specific fuel consumption. In
general the lowest specific fuel consumption is reached at approx. 85 – 90 % load and
at low engine speed.

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

Generator curve
(constant speed)

Propeller curve
(variable speed)

Load
Fig. 1: Specific fuel consumption on the generator and the propeller curve2

Fig. 2: Specific fuel consumption on the generator curve at different speeds3

Since diesel generators mainly operate in part load condition the real average fuel
consumption is more than the nominal fuel consumption as specified by the engine
manufacturers.

2
Source: Illies, Kurt: Handbuch der Schiffsbetriebstechnik, 2. Edition 1984, page 600
3
Source: Illies, Kurt: Handbuch der Schiffsbetriebstechnik, 2. Edition 1984, page 600

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

3.1.2 Effective fuel oil consumption (example)

In order to determine the “real life” fuel consumption of auxiliary diesel generators on-
board data of a 2,000 TEU container vessel (built 1992) has been analysed. This
vessel has been chosen because the diesel generators were running on MDO (Marine
Diesel Oil) with a separate fuel oil counter for the auxiliary diesel engines. Furthermore
there have been kWh-counters installed for each generator measuring the produced
electrical energy. Based on this information the average fuel consumption per
(electrical) kWh has been calculated.

The auxiliary engine data has been:

Diesel Generator #1 + #3:

Engine type: MAN B&W 7L28/32
Nominal electrical power: 1,292 kW @ 720 rpm / 60 Hz

Diesel Generator #2:

Engine type: MAN B&W 5L28/32
Nominal electrical power: 928 kW @ 720 rpm / 60 Hz

Voyages

92 NB 94 NB 95 NB 99 NB 100 NB 101 NB 102 NB Average

Start 25.07.2003 12:00 18.10.2003 12:00 29.11.2003 12:00 18.05.2004 12:00 27.06.2004 12:00 06.08.2004 12:00 18.09.2004 12:00
Voyage data

End 05.08.2003 12:00 29.10.2003 12:00 10.12.2003 12:00 27.05.2004 12:00 09.07.2004 12:00 18.08.2004 12:00 29.09.2004 12:00

Hours time diff. -3 h -3 h -2 h -4 h -4 h -4 h -4 h

Total hours 261 h 261 h 262 h 212 h 284 h 284 h 260 h

generator #1

kWh Start 19.150.700 kWh 19.949.900 kWh 20.156.000 kWh 21.375.800 kWh 21.683.800 kWh 22.049.800 kWh 22.463.300 kWh
Diesel

kWh End 19.343.900 kWh 20.008.600 kWh 20.330.200 kWh 21.421.000 kWh 21.803.800 kWh 22.221.100 kWh 22.610.300 kWh

kWh Generated 193.200 kWh 58.700 kWh 174.200 kWh 45.200 kWh 120.000 kWh 171.300 kWh 147.000 kWh
generator #2

kWh Start 11.129.700 kWh 11.476.700 kWh 11.606.300 kWh 12.185.100 kWh 12.290.700 kWh 12.491.200 kWh 12.694.100 kWh
Diesel

kWh End 11.202.400 kWh 11.566.800 kWh 11.733.500 kWh 12.243.700 kWh 12.410.800 kWh 12.619.800 kWh 12.801.500 kWh

kWh Generated 72.700 kWh 90.100 kWh 127.200 kWh 58.600 kWh 120.100 kWh 128.600 kWh 107.400 kWh
generator #3

kWh Start 23.698.700 kWh 24.245.600 kWh 24.678.600 kWh 25.994.200 kWh 26.208.200 kWh 26.359.000 kWh 26.548.600 kWh
Diesel

kWh End 23.704.800 kWh 24.407.700 kWh 24.846.800 kWh 26.062.200 kWh 26.288.000 kWh 26.397.300 kWh 26.585.900 kWh

kWh Generated 6.100 kWh 162.100 kWh 168.200 kWh 68.000 kWh 79.800 kWh 38.300 kWh 37.300 kWh

kWh Total 272.000 kWh 310.900 kWh 469.600 kWh 171.800 kWh 319.900 kWh 338.200 kWh 291.700 kWh 2.174.100 kWh
Analysis

MDO used 60,4 t 70,8 t 120,5 t 43,1 t 85,8 t 81,8 t 68,0 t 530,4 t

specific fuel
222,1 g/kWh 227,7 g/kWh 256,6 g/kWh 250,9 g/kWh 268,2 g/kWh 241,9 g/kWh 233,1 g/kWh 244,0 g/kWh
consumption

Table 3: Determination of the average fuel consumption per (electrical) kWh from on-board data of
a 2,000 TEU container vessel

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

Table 3 shows the analysis of the on-board data for seven northbound voyages (with
reefer containers on board) and the calculated specific fuel consumption. The specific
fuel oil consumption varied from 221.1 g/kWh to 268.2 g/kWh. The average value
was 244.0 g/kWh. The measured value is therefore about 25 % higher than the value
specified by the engines manufacturer (185 g/kWh mechanical or ~190 g/kWh
electrical). The higher consumption can be explained by the low average load of the
engines (when running) which was only between 42.8 % and 48.7 % instead of the
desirable 85 % MCR.

It has to be highlighted that the values measured here are specific fuel consumptions
for the operation with MDO. When operating on IFO with a lower calorific value the
fuel consumption will increase accordingly (see Table 2) to an average of
260.5 g/kWh (with a variation from 236.0 g/kWh to 286.3 g/kWh).

3.1.3 Development of bunker oil prices

After a stabilisation of bunker oil prices between 1988 and 2000 there is a quite
steady upward trend in the bunker oil prices since 2000 (see Fig. 3). While the
increase of the prices of MDO and MGO already started in early 2003 the prices for
HFOs remained quite stable until end 2004. Since then the price for HFOs almost
doubled within 10 months from approx. US$ 150 per ton in December 2004 to
US$ 300 per ton in September 2005.

Bunker oil prices for IFO 380 today reached a level of over US$ 300.- per ton
throughout the world with peak prices at Japan exceeding US$ 370.- per ton. Analysts
today do expect that the oil price will stay high or increase even more due to the
strong demand for oil products from China.

The price levels of lower quality fuels (IFOs / HFOs) and higher quality fuels (MDO /
MGO) in direct comparison at Rotterdam are shown in Fig. 4 and Fig. 6. While
IFO 180 is only approx. 10 – 15 US$/ton more expensive than IFO 380, MDO at
approx. US$ 600.-/ton is almost 2-times as expensive as IFO 380 (or US$ 300 more
per ton). For this reason most ship-board diesel engines today run on HFOs / IFOs.
Only in some special areas with high environmental regulations the operation on
MDO might be of advantage (e.g. the Baltic Sea). Marine Gas Oil (MGO) is even
more expensive. For electrical power generation MGO is mainly used in mobile power
packs that can be placed on deck in case of a shortage of ship-own electrical power
generation plant.

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Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

Monthly Bunker Prices (380 cst) Monthly Bunker Prices (180 cst)

350 $/t 350 $/t

300 $/t 300 $/t

250 $/t 250 $/t

Cristobal Cristobal
Fos Fos
Fujairah Fujairah
Bunker Price

Bunker Price
200 $/t Genoa 200 $/t Genoa
Houston Houston
Japan Japan
150 $/t Los Angeles 150 $/t Los Angeles
Philadelphia Philadelphia
Rotterdam Rotterdam
100 $/t Singapore 100 $/t Singapore

50 $/t 50 $/t

0 $/t 0 $/t
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Date Date

Monthly Bunker Prices (MDO) Monthly Bunker Prices (MGO)

700 $/t 700 $/t

600 $/t 600 $/t

500 $/t 500 $/t

Cristobal
Fos
Fujairah Cristobal
Bunker Price

Bunker Price

400 $/t 400 $/t

Houston Fujairah
Japan Genoa
Los Angeles Rotterdam
300 $/t 300 $/t
Philadelphia Singapore
Rotterdam
Singapore
200 $/t 200 $/t

100 $/t 100 $/t

0 $/t 0 $/t
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Date Date

Fig. 3: Long term monthly bunker prices for different fuel oils4

Monthly Bunker Prices at Rotterdam

600 $/t

500 $/t

400 $/t
Bunker Price

MGO
MDO
300 $/t
180CST
380CST

200 $/t

100 $/t

0 $/t
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Date

Fig. 4: Long term monthly bunker prices at Rotterdam5

4
Source: Clarkson Research Studies 2005
5
Source: Clarkson Research Studies 2005

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 7
6
Bunker Price
Bunker Price

Bunker Price

0 $/t
100 $/t
200 $/t
300 $/t
400 $/t
500 $/t
600 $/t
700 $/t
800 $/t
0 $/t
50 $/t
100 $/t
150 $/t
200 $/t
250 $/t
300 $/t
350 $/t
400 $/t
04.01.2002
04.01.2002

Fig. 6:
Fig. 5:
05.03.2002
05.03.2002
04.05.2002
04.05.2002

0 $/t
100 $/t
200 $/t
300 $/t
400 $/t
500 $/t
600 $/t
700 $/t
03.07.2002
04.01.2002 03.07.2002
01.09.2002
01.09.2002
31.10.2002
31.10.2002
05.03.2002
30.12.2002
30.12.2002
28.02.2003
28.02.2003
04.05.2002
29.04.2003
29.04.2003
28.06.2003
28.06.2003
03.07.2002
Ref.-Nr.: 2004/0036

27.08.2003
27.08.2003
26.10.2003
26.10.2003
01.09.2002 25.12.2003
25.12.2003

Date
Date
23.02.2004
Client: Thermo King Corp.

23.02.2004
31.10.2002 23.04.2004
23.04.2004
22.06.2004
22.06.2004
30.12.2002 21.08.2004
21.08.2004

Weekly Bunker Prices (MDO)

Weekly Bunker Prices (380 cst)

20.10.2004
20.10.2004
28.02.2003 19.12.2004
19.12.2004

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc

17.02.2005
17.02.2005
29.04.2003 18.04.2005
18.04.2005
17.06.2005
17.06.2005
28.06.2003 16.08.2005
16.08.2005

Source: Clarkson Research Studies 2005

Source: Clarkson Research Studies 2005
15.10.2005
15.10.2005
27.08.2003 14.12.2005
14.12.2005

26.10.2003

Fos
Fos

Japan
Japan
Genoa

Fujairah
Houston
Cristobal
Fujairah

Houston
Cristobal

Singapore
Rotterdam
Singapore
Rotterdam

Philadelphia
Los Angeles
25.12.2003
Philadelphia
Los Angeles

Date
Bunker Price
23.02.2004 Bunker Price

0 $/t
100 $/t
200 $/t
300 $/t
400 $/t
500 $/t
600 $/t
700 $/t
800 $/t
0 $/t
50 $/t
100 $/t
150 $/t
200 $/t
250 $/t
300 $/t
350 $/t
400 $/t

04.01.2002
23.04.2004 04.01.2002
05.03.2002 05.03.2002

Short term weekly bunker prices at Rotterdam7

04.05.2002 04.05.2002
22.06.2004
03.07.2002 03.07.2002
01.09.2002 01.09.2002
21.08.2004
31.10.2002 31.10.2002

Short term weekly bunker prices for different fuel oils6

Weekly Bunker Prices at Rotterdam

30.12.2002 30.12.2002
20.10.2004
28.02.2003 28.02.2003

29.04.2003 29.04.2003
19.12.2004
28.06.2003 28.06.2003

27.08.2003 27.08.2003
17.02.2005
26.10.2003 26.10.2003

25.12.2003 25.12.2003
Date
Date

18.04.2005
23.02.2004 23.02.2004

23.04.2004 23.04.2004
17.06.2005
22.06.2004 22.06.2004
Titel: Determination of energy cost of electrical energy on board sea-going vessels

21.08.2004 21.08.2004
Weekly Bunker Prices (MGO)
Weekly Bunker Prices (180 cst)

16.08.2005 20.10.2004 20.10.2004

19.12.2004 19.12.2004
15.10.2005 17.02.2005 17.02.2005

18.04.2005 18.04.2005
14.12.2005 17.06.2005 17.06.2005

16.08.2005 16.08.2005

15.10.2005 15.10.2005

14.12.2005 14.12.2005
Fos

MDO
MGO
Japan
Genoa

Genoa
Fujairah

Houston

Fujairah
Cristobal

Cristobal

380CST
180CST
Singapore
Rotterdam

Singapore
Rotterdam
Philadelphia
Los Angeles
Dr.-Ing. Yves

Page 9
Wild
Ingenieurbüro GmbH
Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

3.2 Lub oil consumption

The second largest consumable of diesel engines is the lubrication oil. Depending on
the engine type the lub oil systems are different:

- Medium-speed 4-stroke engines only use circulation lub oil which also
lubricates the cylinder liners. Here the lub oil consumption usually depends
on the load of the engine, thus it is measured in g/kWh.

- Slow-speed 2-stroke engines use cylinder oil for direct lubrication of the
cylinder liner and circulation lub oil for the crank case and cross head
lubrication. The cylinder lub oil consumption usually depends on the load of
the engine, thus it is measured in g/kWh, while the circulation lub oil
consumption mainly depends on the number of revolutions and is therefore
usually expressed as kg / cylinder / day.

3.2.1 Nominal lub oil consumption

Table 4 shows the specific lub oil consumption for some 4-stroke and 2-stroke diesel
engines. When assuming that the 2-stroke engines will be operated at 90 % MCR the
circulation lub oil consumption of 7 – 11 kg/cyl/day can be transferred to approx.
0.06 – 0.09 g/kWh. This means that the circulation lub oil consumption is only
approx. one tenth of the cylinder lub oil consumption.

Specific lub oil consumption

Type Manufacturer Engine series Speed Power
(manufacturer's data)

Guangzhou Diesel 230 series 750 - 900 rpm 891 - 1,408 kW 1.0 g/kWh

Guangzhou Diesel 300 series 500 - 600 rpm 550 - 607 kW 1.8 g/kWh

4-Stroke Guangzhou Diesel 320 series 400 - 525 rpm 971 - 2,426 kW 1.2 g/kWh
Medium
Speed MAN B&W L27/38 800 rpm 2,040 - 3,060 kW 0.5 - 0.8 g/kWh

MAN B&W L28/32 775 rpm 1,320 - 3,920 kW 1.5 g/kWh

MAN B&W L58/64 400 - 428 rpm 7,800 - 12,510 kW 0.8 g/kWh

2-Stroke MAN B&W K90MC 71 - 94 rpm 8,840 - 54,840 kW 0.7 - 1.2 g/kWh 7 - 10 kg/cyl/day
Slow Speed
MAN B&W K98MC-C 94 - 104 rpm 24,840 - 79,940 kW 0.7 - 1.2 g/kWh 7.5 - 11 kg/cyl/day

Table 4: Specific lub oil consumption for some diesel engines as per manufacturer’s data

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 10

Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

3.2.2 Effective lub oil consumption (example)

In order to verify the manufacturer’s data the lub oil consumption of a 2,000 TEU
container ship has been analysed8. Table 5 shows the result of the analysis. In case of
cylinder oil of the main engine and circulation oil of the diesel generators the lub oil
consumption was less than specified by the manufacturer. Only the consumption of the
circulation lub oil of the main engine was approx. 60 % higher than specified.
However, the main engine circulation lub oil system has the lowest overall
consumption so that this discrepancy is of minor importance.

All in all the manufacturer’s data seem to be quite reliable.

Manufacturer's
Engine Maker / Type Lub oil system Measured data
data

Cylinder lub oil 1.4 g/kWh 1.347 g/kWh

Wärtsilä New Sulzer
Main Engine
RTA 76
Circulation lub oil 6.0 kg/cyl/day 9.706 kg/cyl/day

MAN B&W
Diesel Generators Circulation lub oil 1.6 g/kWh 1.328 g/kWh
L28/32

Table 5: Comparison between manufacturer’s and measured data for the specific lub oil
consumption of a 2,000 TEU container ship over a period of approx. one year

3.2.3 Lub oil prices

Lubrication oil prices can vary significantly depending on the specification of the oil.
Typical prices at the end of 2004 were approx. US$ 700.- to US$ 900.- per 100 litres.
Assuming a density of approx. 900 kg/m³ the price is approx. US$ 780.- to
US$ 1,000.- per ton.

Since the strong increase of oil prices in 2005 it is assumed that lub oil prices now
increases by approx. 50 % to approx. US$ 1,200.- to US$ 1,500.- per ton.

3.3 Efficiency of alternator

The efficiency of the alternator is the ratio between the electrical power at the
generator and the mechanical power of the diesel engine.

PElectrical = η Alternator ⋅ PMechanical

8
Same vessel as for the specific fuel oil consumption of the diesel generators

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 11

Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

Usually the efficiency of the alternator is around 95 %.

If a PTO (power take off) from the propeller shaft is used there usually a gear box is
installed to increase the alternator speed. In this case the mechanical efficiency of the
gear box has to be taken into consideration, too.

PElectrical = η Gearbox ⋅ η Alternator ⋅ PMechanical

The efficiency of the gear box can be assumed to be approx. 97 %, so that the overall
efficiency of gear box and alternator would be 92.15 %.

4 Cost calculation
Based on the above explained relations the specific cost calculation per electrical kWh
can be made up as shown in Table 6. The example calculation is based on the use of
MDO (as can be seen from the heating value) at a price of US$ 600.- per ton. The
specific fuel consumption is set to be 246.5 g/kWh. The overall specific cost then add
up to approx. 15 ct/kWh in this case. The lub oil consumption is only making up
approx. 1.3 % of the overall cost while the main cost factor is the fuel oil. When using
HFOs / IFOs this proportion will increase to approx. 2.5 %.

Specific fuel Cost 600 $/t

Lower heating value 42,7 MJ/kg

11,9 kWh/kg

Thermal efficiency of diesel engine 36%

Efficiency of alternator 95%
Overall efficiency 34,2%

Specific fuel consumption (mechanical power) 234,2 g/kWh

Specific fuel consumption (electrical power) 246,5 g/kWh

Overall specific fuel cost 4,109 ct/MJ

14,791 ct/kWh

Lub oil cost 1300 $/t

Spec.lub oil consumption (mechanical power) 1,50 g/kWh

Spec.lub oil consumption (electrical power) 1,58 g/kWh

Spec. lub oil cost (electrical power) 0,205 ct/kWh

Overall specific cost 14,996 ct/kWh

Table 6: Cost calculation (yellow fields are input fields)

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 12

Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

Table 7 shows the specific cost when varying the specific fuel consumption and the fuel
oil price.

Specific Electrical Energy Cost on Ships

Fuel Oil Price

Thermal Specific Fuel

100 $/t 200 $/t 300 $/t 400 $/t 500 $/t 600 $/t 700 $/t 800 $/t 900 $/t
Efficiency Consumption

25% 355,0 gr/kWh 3,8 ct/kWh 7,3 ct/kWh 10,9 ct/kWh 14,4 ct/kWh 18,0 ct/kWh 21,5 ct/kWh 25,1 ct/kWh 28,6 ct/kWh 32,2 ct/kWh

26% 341,3 gr/kWh 3,6 ct/kWh 7,0 ct/kWh 10,4 ct/kWh 13,9 ct/kWh 17,3 ct/kWh 20,7 ct/kWh 24,1 ct/kWh 27,5 ct/kWh 30,9 ct/kWh

27% 328,7 gr/kWh 3,5 ct/kWh 6,8 ct/kWh 10,1 ct/kWh 13,4 ct/kWh 16,6 ct/kWh 19,9 ct/kWh 23,2 ct/kWh 26,5 ct/kWh 29,8 ct/kWh

28% 317,0 gr/kWh 3,4 ct/kWh 6,5 ct/kWh 9,7 ct/kWh 12,9 ct/kWh 16,1 ct/kWh 19,2 ct/kWh 22,4 ct/kWh 25,6 ct/kWh 28,7 ct/kWh

29% 306,0 gr/kWh 3,3 ct/kWh 6,3 ct/kWh 9,4 ct/kWh 12,4 ct/kWh 15,5 ct/kWh 18,6 ct/kWh 21,6 ct/kWh 24,7 ct/kWh 27,7 ct/kWh

30% 295,8 gr/kWh 3,2 ct/kWh 6,1 ct/kWh 9,1 ct/kWh 12,0 ct/kWh 15,0 ct/kWh 18,0 ct/kWh 20,9 ct/kWh 23,9 ct/kWh 26,8 ct/kWh

31% 286,3 gr/kWh 3,1 ct/kWh 5,9 ct/kWh 8,8 ct/kWh 11,7 ct/kWh 14,5 ct/kWh 17,4 ct/kWh 20,2 ct/kWh 23,1 ct/kWh 26,0 ct/kWh

32% 277,3 gr/kWh 3,0 ct/kWh 5,8 ct/kWh 8,5 ct/kWh 11,3 ct/kWh 14,1 ct/kWh 16,8 ct/kWh 19,6 ct/kWh 22,4 ct/kWh 25,2 ct/kWh

33% 268,9 gr/kWh 2,9 ct/kWh 5,6 ct/kWh 8,3 ct/kWh 11,0 ct/kWh 13,7 ct/kWh 16,3 ct/kWh 19,0 ct/kWh 21,7 ct/kWh 24,4 ct/kWh

34% 261,0 gr/kWh 2,8 ct/kWh 5,4 ct/kWh 8,0 ct/kWh 10,6 ct/kWh 13,3 ct/kWh 15,9 ct/kWh 18,5 ct/kWh 21,1 ct/kWh 23,7 ct/kWh

35% 253,6 gr/kWh 2,7 ct/kWh 5,3 ct/kWh 7,8 ct/kWh 10,3 ct/kWh 12,9 ct/kWh 15,4 ct/kWh 18,0 ct/kWh 20,5 ct/kWh 23,0 ct/kWh

36% 246,5 gr/kWh 2,7 ct/kWh 5,1 ct/kWh 7,6 ct/kWh 10,1 ct/kWh 12,5 ct/kWh 15,0 ct/kWh 17,5 ct/kWh 19,9 ct/kWh 22,4 ct/kWh

37% 239,9 gr/kWh 2,6 ct/kWh 5,0 ct/kWh 7,4 ct/kWh 9,8 ct/kWh 12,2 ct/kWh 14,6 ct/kWh 17,0 ct/kWh 19,4 ct/kWh 21,8 ct/kWh
Efficiency of diesel engine

38% 233,5 gr/kWh 2,5 ct/kWh 4,9 ct/kWh 7,2 ct/kWh 9,5 ct/kWh 11,9 ct/kWh 14,2 ct/kWh 16,6 ct/kWh 18,9 ct/kWh 21,2 ct/kWh

39% 227,6 gr/kWh 2,5 ct/kWh 4,8 ct/kWh 7,0 ct/kWh 9,3 ct/kWh 11,6 ct/kWh 13,9 ct/kWh 16,1 ct/kWh 18,4 ct/kWh 20,7 ct/kWh

40% 221,9 gr/kWh 2,4 ct/kWh 4,6 ct/kWh 6,9 ct/kWh 9,1 ct/kWh 11,3 ct/kWh 13,5 ct/kWh 15,7 ct/kWh 18,0 ct/kWh 20,2 ct/kWh

41% 216,5 gr/kWh 2,4 ct/kWh 4,5 ct/kWh 6,7 ct/kWh 8,9 ct/kWh 11,0 ct/kWh 13,2 ct/kWh 15,4 ct/kWh 17,5 ct/kWh 19,7 ct/kWh

42% 211,3 gr/kWh 2,3 ct/kWh 4,4 ct/kWh 6,5 ct/kWh 8,7 ct/kWh 10,8 ct/kWh 12,9 ct/kWh 15,0 ct/kWh 17,1 ct/kWh 19,2 ct/kWh

43% 206,4 gr/kWh 2,3 ct/kWh 4,3 ct/kWh 6,4 ct/kWh 8,5 ct/kWh 10,5 ct/kWh 12,6 ct/kWh 14,7 ct/kWh 16,7 ct/kWh 18,8 ct/kWh

44% 201,7 gr/kWh 2,2 ct/kWh 4,2 ct/kWh 6,3 ct/kWh 8,3 ct/kWh 10,3 ct/kWh 12,3 ct/kWh 14,3 ct/kWh 16,3 ct/kWh 18,4 ct/kWh

45% 197,2 gr/kWh 2,2 ct/kWh 4,1 ct/kWh 6,1 ct/kWh 8,1 ct/kWh 10,1 ct/kWh 12,0 ct/kWh 14,0 ct/kWh 16,0 ct/kWh 18,0 ct/kWh

46% 192,9 gr/kWh 2,1 ct/kWh 4,1 ct/kWh 6,0 ct/kWh 7,9 ct/kWh 9,9 ct/kWh 11,8 ct/kWh 13,7 ct/kWh 15,6 ct/kWh 17,6 ct/kWh

47% 188,8 gr/kWh 2,1 ct/kWh 4,0 ct/kWh 5,9 ct/kWh 7,8 ct/kWh 9,6 ct/kWh 11,5 ct/kWh 13,4 ct/kWh 15,3 ct/kWh 17,2 ct/kWh

48% 184,9 gr/kWh 2,1 ct/kWh 3,9 ct/kWh 5,8 ct/kWh 7,6 ct/kWh 9,4 ct/kWh 11,3 ct/kWh 13,1 ct/kWh 15,0 ct/kWh 16,8 ct/kWh

49% 181,1 gr/kWh 2,0 ct/kWh 3,8 ct/kWh 5,6 ct/kWh 7,4 ct/kWh 9,3 ct/kWh 11,1 ct/kWh 12,9 ct/kWh 14,7 ct/kWh 16,5 ct/kWh

50% 177,5 gr/kWh 2,0 ct/kWh 3,8 ct/kWh 5,5 ct/kWh 7,3 ct/kWh 9,1 ct/kWh 10,9 ct/kWh 12,6 ct/kWh 14,4 ct/kWh 16,2 ct/kWh

51% 174,0 gr/kWh 1,9 ct/kWh 3,7 ct/kWh 5,4 ct/kWh 7,2 ct/kWh 8,9 ct/kWh 10,6 ct/kWh 12,4 ct/kWh 14,1 ct/kWh 15,9 ct/kWh

52% 170,7 gr/kWh 1,9 ct/kWh 3,6 ct/kWh 5,3 ct/kWh 7,0 ct/kWh 8,7 ct/kWh 10,4 ct/kWh 12,2 ct/kWh 13,9 ct/kWh 15,6 ct/kWh

53% 167,4 gr/kWh 1,9 ct/kWh 3,6 ct/kWh 5,2 ct/kWh 6,9 ct/kWh 8,6 ct/kWh 10,3 ct/kWh 11,9 ct/kWh 13,6 ct/kWh 15,3 ct/kWh

54% 164,3 gr/kWh 1,8 ct/kWh 3,5 ct/kWh 5,1 ct/kWh 6,8 ct/kWh 8,4 ct/kWh 10,1 ct/kWh 11,7 ct/kWh 13,4 ct/kWh 15,0 ct/kWh

55% 161,4 gr/kWh 1,8 ct/kWh 3,4 ct/kWh 5,0 ct/kWh 6,7 ct/kWh 8,3 ct/kWh 9,9 ct/kWh 11,5 ct/kWh 13,1 ct/kWh 14,7 ct/kWh

other relevant input data: Lower heating value 42,7 MJ/kg Specific lub oil consumption 1,50 gr/kWh
Efficiency of alternator 95% Lub oil price 1300 $/t
Specific fuel consumption is related to electrical kWh at alternator output

Table 7: Calculated specific cost (per kWh electrical energy) depending on the thermal efficiency of
the diesel engine and the fuel oil price

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 13

Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

5 Summary
The results of the cost calculations are shown in Fig. 7. Taking into consideration the
four main potential ways of generating electrical power on board ships the following
areas as show in Fig. 7 can be separated:

Cost of Electrical Power

Specific fuel
35,0 ct/kWh consumption related
to electrical kWh

350,0 gr/kWh
340,0 gr/kWh
30,0 ct/kWh MGO operation 330,0 gr/kWh
of power packs 320,0 gr/kWh
310,0 gr/kWh
300,0 gr/kWh
290,0 gr/kWh
280,0 gr/kWh
25,0 ct/kWh MDO operation 270,0 gr/kWh
of diesel generators 260,0 gr/kWh
250,0 gr/kWh
240,0 gr/kWh
230,0 gr/kWh
Specific Cost

20,0 ct/kWh 220,0 gr/kWh

210,0 gr/kWh
200,0 gr/kWh
HFO / IFO operation 190,0 gr/kWh
180,0 gr/kWh
of diesel generators 170,0 gr/kWh
15,0 ct/kWh 160,0 gr/kWh
150,0 gr/kWh

10,0 ct/kWh

5,0 ct/kWh HFO / IFO operation

of main engine with
shaft generator

0,0 ct/kWh
100 $/t 200 $/t 300 $/t 400 $/t 500 $/t 600 $/t 700 $/t 800 $/t 900 $/t
Bunker Price

Fig. 7: Calculated specific cost (per kWh electrical energy) depending on the specific fuel
consumption (per electrical kWh) of the diesel engine and the fuel oil price

MGO operation of mobile diesel generators (power packs) with a specific fuel
consumption varying from 280 to 330 g/kWh and fuel oil prices between US$ 600 to
US$ 700 per ton. The resulting specific cost will range from approx. 17.0 ct/kWh to
23.0 ct/kWh.

MDO operation of diesel generators with a specific fuel consumption varying

from 210 to 260 g/kWh and fuel oil prices between US$ 600 to US$ 700 per ton. The
resulting specific cost will range from approx. 12.5 ct/kWh to 18.5 ct/kWh.

HFO/IFO operation of diesel generators with a specific fuel consumption varying

from 240 to 290 g/kWh (due to lower calorific value) and fuel prices between
US$ 300 to US$ 400 per ton. The resulting specific cost will range from approx.
7.5 ct/kWh to 12.0 ct/kWh.

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 14

Ref.-Nr.: 2004/0036 Dr.-Ing. Yves
Wild
Client: Thermo King Corp.
Titel: Determination of energy cost of electrical energy on board sea-going vessels
Ingenieurbüro GmbH

HFO/IFO operation of main engine with shaft generator with a specific fuel
consumption varying from 190 to 220 g/kWh (due to lower calorific value and gear
box but better efficiency of the engine and operation at optimum load) and fuel prices
between US$ 300 to US$ 400 per ton. The resulting specific cost will range from
approx. 6.0 ct/kWh to 9.0 ct/kWh.

Hamburg, the 17th September 2005

(this document has been transmitted by email

and is therefore not signed)

Dr.-Ing. Yves Wild

Officially appointed and
Sworn expert for Refrigeration
Chamber of Commerce, Hamburg

File Y:\GMBH\2004-0036 Energy Cost\05-09-17 2004-0036 Report.doc Page 15