Page 50: of Maritime Logistics Professional Magazine (Q1 2013)

The entire lifecycle cost of the LNG option has to be ex- plored, said Huibers. ?If you do that math and add in every- thing else and it works for you, then  ne. On the other hand, at the end of a life cycle, especially for a standalone gas engine ? where do you sell that vessel to? Where?s the market for it? Right now, the salvage value on these LNG engines isn?t the same as diesel. It is important for people to pencil the numbers on the total cost of ownership, not just fuel costs, and then you realize that yes ? there is a risk here. Put your toe in the water for the right application ? but look at the total picture. This is why we at Volvo Penta are taking a measured approach.? PROPULSION Type BeneÞ tsChallengesComments MGOLow engine / boiler modiÞ cation cost Fuel switching neededSafety issues Familiar technologyHigher fuel costLess staff training needed CO2 emission is not reducedNon compliant w/ IMO EEDI NOx emission is not reducedNon compliant w/ ECA Tier III Potential limited ULSD availabilityHFO + Scrubber Moderate retroÞ t cost CO2 emission is not reducedNon compliant w/ IMO EEDI Lower fuel costNOx emission is not reducedNon compliant w/ ECA Tier I Increased maintenanceImmature technologySome port restriction on open or even closed type. Onboard space neededLNG20 Ð 25% CO2 reductionAdditional investment cost Meets IMO EEDI100% SOx reductionFuel availabilityMeets ECA100% PM reductionSpecial competence & safe handling 80% NOx reductionIncreased fuel tank spaceMeets ECA Tier III Green imageUncertain regulatory framework on bunker- ing and competence requirementLower engine maintenance and wearNo lube oil renewal for pure gas enginesClean engine roomBetter crew safetySource: Tony Teo / DNV ?Clearly the new regulations, particularly the regulations in North America will drive a lot. And LNG is the obvious choice; to me it?s a no-brainer. DNV CEO Henrik O. Madsen 50 | Maritime Professional | 1Q 2013MP #4 50-63.indd 50MP #4 50-63.indd 502/25/2013 10:01:45 AM2/25/2013 10:01:45 AM