Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF)

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 1 Søknadsnummer: ES474658 Prosjektnummer: 210674 Søker Prosjektansvarlig Institusjon / bedrift EF TECH AS Fakultet Institutt Avdeling Adresse c/o Eidesvik AS Postnummer 5443 Poststed Land E-post til postmottak BØMLO Norge office@eidesvik.no Internettadresse Organisasjonsnummer 992764880 Revideres av Andre eadministrasjon Administrativt ansvarlig Fornavn Etternavn Stilling/tittel Jan Fredrik Meling Adm. Dir Telefon 53448012 E-post Bekreftelse janfredrik.meling@eidesvik.no Søknaden er godkjent av prosjektansvarlig Prosjektleder

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 2 Søknadsnummer: ES474658 Prosjektnummer: 210674 Fornavn Etternavn Institusjon / bedrift Vidar A.T. Thorsen Haugaland Kunnskapspark AS Fakultet Institutt Avdeling Adresse Karmsundsgt. 51 Postnummer 5531 Poststed Land Stilling/tittel Akademisk grad Ønsket målform Haugesund Norge Daglig Leder Dr.Scient Bokmål Telefon 97541006 E-post vidar.thorsen@hkpark.no Prosjektinformasjon Prosjekttittel Prosjekttittel Development of hybrid power generating system for Electrical Power Supply Ship Prosjektets hovedmål og delmål The main aim of this project is to carry out research in order to develop a highly efficient power generating machinery for a Electrical Power Supply Ship. Prosjektets hovedmål og delmål Secondary goals are: Define system specifications and procedures. Develop efficient heat recovery system. Heat to electricity. Develop control systems for the hybride machinery. Carry out a meta-study on air pollution and its negative effects on society. Prosjektsammendrag

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 3 Søknadsnummer: ES474658 Prosjektnummer: 210674 The planned innovation is to design and build an Electrical Power Supply Ship (EPS-Ship). By positioning the EPS Ship alongside larger ships docked at port, the electrical power supply ship shall be able to deliver sufficient electricity to replace the ships own electricity production -cold ironing.the most important part of an EPS-Ship is the onboard power plant which is to be developed through this project. The principle idea is to develop a new generation of ship machinery that has significantly lower specific fuel consumption and lower emission of harmful substances and greenhouse gasses than traditional machinery. In order to achieve this we aim for a hybrid machinery plant, i.e. that it consists of several types of power generating components and energy storages such as fuel cells, batteries, gas engines, steam turbines, boilers and heat recovery systems that can operate alone or in various combinations. Objectives: WP 1: Project administration Prosjektsammendrag WP 2: System Specification and Procedures Selection of suited components Simulations of total system Scaling of electricity generating components Transmission of electricity to customer ship Positioning of EPS Ship for electricity transmission Starting and safety gases Development of procedures WP 3: Heat energy to electricity Concept studies Evaluation of new and emerging technologies Simulation of total system Optimization and scaling studies Operational flexibility studies/dynamic simulations Reliability and safety studies WP 4: System control Control and balancing of power station and power supply systems Control of hybrid system towards a operational profile Energy storing control strategies Modeling of systems Simulation of system Down scale lab testing WP 5: Evaluating measures to reduce air emissions in large port cities:an economic literature review Literature study

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 4 Søknadsnummer: ES474658 Prosjektnummer: 210674 Collect available data Analysis Potential meta-study Plassering Plassering i Forskningsrådet - tilleggsinformasjon fra søker Program / aktivitet MAROFF Søknadstype Innovasjonsprosjekt i næringslivet Delprogram/tema Andre relevante programmer/ aktiviteter/prosjekter Disiplin(er)/fagfelt Thermodynamics, simulation, electronics, economics Prosjektnr. v/ tilleggssøknad Er relatert(e) søknad(er) sendt Forskningsrådet og/eller annen offentlig finansieringsordning Nei Hvis ja, gi nærmere opplysninger Framdriftsplan Prosjektperiode Fra dato (ååååmmdd) 20110601 Til dato (ååååmmdd) 20130601 Hovedaktiviteter og milepæler i prosjektperioden (år og kvartal) Milepæler fordelt over prosjektperioden Fra Til WP 1 Project administration 2011 3 2013 2 WP 2 System specification and procedures 2011 3 2013 2 WP 2.1 Selection of suited components 2011 2 2011 4 WP 2.2 Simulations of total system 2012 1 2013 2 WP 2.3 Scaling of el-generating components 2012 1 2012 2

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 5 Søknadsnummer: ES474658 Prosjektnummer: 210674 WP 2.4 Transmission of electricity to custome 2012 2 2012 4 WP 2.5 Positioning of EPS Ship 2012 2 2012 4 WP 2.6 Starting and safety gases 2011 3 2011 4 WP 2.7 Risk and safety analysis 2012 1 2012 3 WP 2.8 Development of procedures 2012 4 2013 2 WP 3 Heat energy to electricity 2011 3 2013 2 WP 3.1 Concept studies 2011 3 2011 3 WP 3.2 Evaluation of new technologies 2011 3 2011 4 WP 3.3 Simulation of total system 2012 1 2012 3 WP 3.4 Optimization and scaling studies 2012 2 2012 4 WP 3.5 Operational flexibility studies/simula 2012 4 2013 2 WP 3.6 Reliability and safety studies 2013 1 2013 2 WP 4 System control 2011 3 2013 2 WP 4.1 Control and balancing 2011 3 2011 4 WP 4.2 Control towards a operational profile 2011 4 2012 1 WP 4.3 Energy storing control strategies 2012 1 2012 3 WP 4.4 Modeling of systems 2012 3 2013 1 WP 4.5 Simulation of system 2012 4 2013 1 WP 4.6 Down scale lab testing 2013 1 2013 2 WP 5 An economic literature review 2011 3 2013 2 WP 5.1 Literature study 2011 3 2012 1 WP 5.2 Collect available data 2012 1 2012 2 WP 5.3 Analysis 2012 3 2012 4 WP 5.4 Meta-study 2013 1 2013 2 Budsjett Kostnadsplan (i 1000 kr)

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 6 Søknadsnummer: ES474658 Prosjektnummer: 210674 2011 2012 2013 2014 2015 2016 2017 2018 Sum Personal- og indirekte kostnader 4000 7250 3750 15000 Innkjøp av FoU-tjenester 750 1500 750 3000 Utstyr 500 250 250 1000 Andre driftskostnader 500 1000 500 2000 Totalsum 5750 10000 5250 21000 Spesifikasjonsfelt Hourly rate is 800 NOK. Other costs include traveling and workshops. Kostnadssted (i 1000 kr) 2011 2012 2013 2014 2015 2016 2017 2018 Sum Næringsliv 4997 8495 4298 17790 Instituttsektor 350 600 450 1400 UoH-sektor 400 900 500 1800 Andre sektorer 0 Utlandet 3 5 2 10 Totalsum 5750 10000 5250 21000 Finansieringsplan (i 1000 kr) 2011 2012 2013 2014 2015 2016 2017 2018 Sum Egne midler 2875 5000 2625 10500 Internasjonale midler 0 Andre offentlige midler 0

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 7 Søknadsnummer: ES474658 Prosjektnummer: 210674 2011 2012 2013 2014 2015 2016 2017 2018 Sum Andre private midler 0 Søkes Norges forskningsråd 2875 5000 2625 10500 Totalsum 5750 10000 5250 21000 Spesifikasjonsfelt Stipend Type stipend Doktorgradsstipend Fra dato (ååååmmdd) Til dato (ååååmmdd) Samarbeidspartnere Samarbeidspartnere som skal delta i prosjektet med faglige og/eller økonomiske ressurser 1 Institusjon/ bedrift EIDESVIK OFFSHORE ASA Avdeling/ seksjon Adresse Langevåg Postnummer 5443 Poststed Land BØMLO Norge Organisasjonsnummer 986942785 Kontaktperson Kjell M. Sandaker Kontaktperson telefon 53448000 Kontaktperson e-post Partners rolle kjell.sandaker@eidesvik.no Utførende og finansierende

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 8 Søknadsnummer: ES474658 Prosjektnummer: 210674 2 Institusjon/ bedrift WARTSILA SHIP DESIGN NORWAY AS AVD FITJAR Avdeling/ seksjon Adresse Postnummer 5419 Poststed Land FITJAR Norge Organisasjonsnummer 974139391 Kontaktperson Trygve Eiken Kontaktperson telefon 90128431 Kontaktperson e-post Partners rolle trygve.eiken@wartsila.no Utførende og finansierende 3 Institusjon/ bedrift WARTSILA NORWAY AS Avdeling/ seksjon Adresse Postnummer 5420 Poststed Land RUBBESTADNESET Norge Organisasjonsnummer 940193575 Kontaktperson Ingve Sørfonn Kontaktperson telefon 95732581 Kontaktperson e-post Partners rolle ingve.sorfonn@wartsila.no Utførende og finansierende 4 Institusjon/ bedrift HØGSKOLEN STORD/HAUGESUND Avdeling/ seksjon Adresse Postboks 5000 Postnummer 5409

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 9 Søknadsnummer: ES474658 Prosjektnummer: 210674 Poststed Land STORD Norge Organisasjonsnummer 970889906 Kontaktperson Liv Osland Kontaktperson telefon 52702768 Kontaktperson e-post Partners rolle liv.osland@hsh.no Utførende 5 Institusjon/ bedrift NORGES HANDELSHØYSKOLE Avdeling/ seksjon Adresse Helleveien 30 Postnummer 5045 Poststed Land BERGEN Norge Organisasjonsnummer 974799111 Kontaktperson Gunnar S. Eskeland Kontaktperson telefon 55 95 96 99 Kontaktperson e-post Partners rolle Gunnar.Eskeland@nhh.no Utførende 6 Institusjon/ bedrift STIFTELSEN POLYTEC Avdeling/ seksjon Adresse Sørhauggata 128 Postnummer 5527 Poststed Land HAUGESUND Norge Organisasjonsnummer 971523271 Kontaktperson Carl Nilsson Kontaktperson telefon 971523271

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 10 Søknadsnummer: ES474658 Prosjektnummer: 210674 Kontaktperson e-post Partners rolle Carl.Nilsson@polytec.no Utførende 7 Institusjon/ bedrift Port of Rotterdam Avdeling/ seksjon Adresse P.O. Box 6622 Postnummer 3002 Poststed Land AP Rotterdam Nederland Organisasjonsnummer 0000000000000 Kontaktperson Mautits Prinssen Kontaktperson telefon Kontaktperson e-post Partners rolle m.prinssen@portofrotterdam.com Utførende og finansierende Vedlegg Prosjektbeskrivelse Filnavn Referanse NFR.pdf ES474658_001_1_Prosjektbeskrivelse_20110216 Curriculum vitae (CV) med publikasjonsliste Filnavn Referanse CV 2010 VATT.pdf ES474658_002_1_CV_20110216

Development of hybrid power generating system for Electrical Power Supply Ship (Innovasjonsprosjekt i næringslivet - MAROFF) Side: 11 Søknadsnummer: ES474658 Prosjektnummer: 210674 Partneropplysninger Filnavn Referanse partneropplysninger samlet.pdf ES474658_017_1_Bedriftsopplysninger_20110216 Annet Filnavn Referanse

Development of hybrid power generating system for Electrical Power Supply Ship PART 1: The planned innovation 1. Underlying idea For the maritime sector the International Maritime Organization (IMO) has ratified new regulations for NOx and SOx that will come into force the next years. The same organization has prepared proposals for efficiency indexes and economical market instruments that will be discussed further this year. EU has established their own regulations for emissions in ports and is in position to establish further strategies for green ports. New emission controlled areas are developing and will require accurate reporting of the total energy use and the related emissions to air. Expected future fuel cost is uncertain and will require increased awareness from the ship owners to be able to run a sustainable business. The planned innovation is to design and build an Electrical Power Supply Ship (EPS-Ship). The vessel shall supply other ships in ports with clean electrical energy. The most important part of an EPS-Ship is the onboard power plant which is to be developed through this project. The principle idea is to develop a new generation of ship machinery that has significantly lower specific fuel consumption and lower emission of harmful substances and greenhouse gasses than traditional machinery. In order to achieve this we aim for a hybrid machinery plant, i.e. that it consists of several types of power generating components and energy storages such as fuel cells, batteries, gas engines, steam turbines, boilers and heat recovery systems that can operate alone or in various combinations. These components have different characteristics and ranges of operation. By combination of component(s) and operation range for each component one may at any time obtain production of energy at the most favorable efficiency and lowest possible emissions. The fuel is mainly natural gas. This project will comprise research, studies, analysis, testing and development in order to lift the technology further up from the level of knowledge and experience gained during FellowSHIP I, II and III. Based on the results from this project one may start building a full scale hybrid demonstration vessel, EPS Electric Power Supply Ship. The building as such as well as initial operation period of the demo vessel will be a separate project. The idea is that demonstration of an EPS-ship, with fully developed hybrid technology may also open up for wide commercial application of this technology. There will not be duplication of work with respect to FellowSHIP III, but the results from fellowship II will be used in this project.. This project will focus on developing full scale energy and environmental efficient hybrid solutions based on different energy sources and energy recovery and storage systems in a common control environment. 2. Level of innovation Ship machinery is traditionally based on engines burning diesel or heavy fuel oil, that run propellers directly or via electrical power generation. The el-power produced is used to drive auxiliary support systems onboard, but also to drive propellers and thrusters. Earlier steam turbines were used to drive as well propellers as el-generators and pumps. Steam was produced in boilers by burning heavy fuel oil. side 1/10

These traditional technologies give considerable emissions and pollution to the atmosphere and increasingly stricter regulations are now being put into force in order to mitigate these emissions. Several types of engines are developed for use with gasous fuels, but with fuel cells the natural gas can be even better utilized. With fuel cells the emission of NOx, SOx and particles is eliminated and the emission of CO 2 is almost reduced to half compared with gas powered engines, and the fuel consumption is almost reduced to half. A change to fuel cells will thus give far less pollution and better air quality in port areas. We intend to lift the technology from laboratory scale to full scale. The machinery plant in the EPS will be a fully developed hybrid system with a capacity of several MW, probably in the order of 8 12 MW. The fuel cell plant will have an output of several MW and the auxiliary systems will be designed to fit the fuel cell. Onboard Viking Lady several of these auxiliary systems are lacking completely or some provisional interface solutions towards the ordinary vessel systems are arranged. This project is a huge step forward in developing and verifying new and more efficient technologies within production of energy and use of energy in urban areas. The new elements in this innovation is to implement and verify new control systems and power generation systems for environmental efficient operations in harbour areas or other urban areas where the pollution level is a threat to human health. The harbour areas are today heavily exposed to emissions from combustion engines running on heavy fuel or distillates. New regulations and new understanding of the health effects of being exposed for particulate matters and NOx, will force the industry to develop solutions that limit this risk in these areas. The proposed project will bring forward new technology and new fuels for replacing present power generation technology during harbour operations. Technologies like large scale fuel cells, batteries, gas engines and thermal heat recoveries will be developed and verified. This type of scaling is new in the market and the total control and optimization is a major innovative part of the project. This will also be a new innovation that is supported by many of the larger harbour administrations and different national governments. 3. Potential for value creation Norway has a leading role when it comes to developing environmental friendly solutions for the maritime segment. Keeping this leading position requires new and better solutions to reduce harmful emissions. Ports and authorities need to find ways to reduce air pollution in order to decrease the negative effects on human health and the environment in general. The scenario where this project is not carried out will be a unfavorable halt in the development of finding new areas of application for fuel cells in hybrid systems. The partners represent a part of the full value chain and thus take part in the value creation at different levels. Wärtsilä has a global marketing network within energy production, propulsion, machinery systems and design that put us in a good market position if we can utilize the full potential of the results. The potential are both within new buildings and for existing vessels. For Wärtsilä the value creation will be within new offerings. These business models are under development. In recent years Eidesvik Offshore ASA has invested large resources in implementation of fuel cell technology in maritime applications and positioned itself as a leading innovative operator with a modern fleet. The aim of EFTech is to develop systems to implement existing fuel cell technology in onboard applications. Eidesvik Offshore and EFTech sees the development as a part of its long term strategy and a commercialization of this technology. side 2/10

We see a large potential in offering clean power to ships in port. Air pollution from ships is now a significant and recognized problem. In several areas people have got reduced length of life due to this In the Rotterdam area the reduced length of lifetime is in the order of 3 years, whereas in Bergen about 150 people die too early each year due to this. We want to develop and offer an EPS-ship to the ports in Bergen and Rotterdam. The Port of Rotterdam has 100 calls from ships every day and is thus a big market. The criteria for a project in Bergen are quite different from Rotterdam for several reasons. The number and type of ships calling are different in size as well as power demand. To Rotterdam there comes more than one large container ship per hour, while such ships do not call on Bergen at all. Cruise-ships, however, do hardly call on Rotterdam, while Bergen was visited by 241 such ships during summer 2010. The cost of electricity is much higher in Rotterdam as compared to Bergen. This will have a big influence on cost calculations and optimal design for profitability. We have also seen the potential for an EPS-ship in Geirangerfjorden that in 2010 had visit from 158 cruise vessels. Special solutions are discussed, but we also need to find a market for the EPS outside the summer season. Through a network of cooperating companies in the region we want to build up as well know-how as capacity to build series of EPS-ships here in this district. As well Wӓrtsilä as Eidesvik are now members in a new network Maritime Clean Tech West, that so far has 9 member companies and several more may join shortly. 4. Plan for realization The speed of commercialization has high priority by all partners. Wärtsilä has a global marketing network within energy production, propulsion, machinery systems and design that put us in a good market position if we can utilize the full potential of the results. Due to the uncertainties about the development of the market within environmental technology it is difficult to put up a sales budget for the future. The potential are both within new buildings and for existing vessels. Wärtsilä plans to offer hybrid systems when fully developed. EF Tech plans to build, own and operate EPS-Ships, while Eidesvik Offshore represents one potential end user. Full business models for all companies are under development. 5 Risk factors New market mechanism for energy trade and emissions will hopefully be established for different market areas. This will push the need for efficient design, and efficient and predicted operational control. If not, the market will slow down. Price and availability of energy is expected to increase the demand for energy efficient systems. There are both economic and research related risks involved in this project. The research risk is related to that the new systems for conversion of heat to el-power and other optimizing effects found may not be cost effective. We acknowledge that there still is a large distance, as well technologically as commercially, before we are ready for the international commercial market. Thus we first need to present a full scale demonstrator at home in order to gain experience and confidence with the technology. We see Port of Bergen as arena for such a demonstrator. Then we can adjust the concept to suit Rotterdam requirements and then go international. Because the cost of electricity is low and the distribution of types of ships calling Bergen is different from Rotterdam Bergen is more challenging than Rotterdam. Never the less, we think we need a demonstrator in Bergen/Geirangerfjorden even if it is unlikely that we are able to obtain sustainable income for the project until the phase after Bergen. The difference has to be taken by the project partners and public support. Thus public support will be decisive. Without public support large parts of the project will be put on hold. Momentum will then be lost and much of the marketing effort made in vane. But a success in side 3/10

Norway will depend on special solutions and agreements. It is the cruise-ships calling upon Bergen that is the challenge. They have power requirements in the order of 6 12 MW. Port stay is about 10 hours per visit, and Bergen had 241 visits in 2010 in the summer season. The rest of the year far smaller ships are predominant where the power demand is 1/10 of the cruise ships. Thus we need to find a market also outside the cruise season, but this may be a quite low price market. It will be decisive for the project to find commercial solutions here. This application is for development costs, while operation cost support will be subject to another application. Such a mobile power station may be utilized in several ways: Supply shore power to ships in port, Supply el-power to large/remote construction sites, Supply power to large arrangements, Emergency power in case of catastrophes. PART 2: The R&D project 6. The R&D project s objectives and its importance for the planned innovation Work package 1: Project administration Purpose: Project Administration Tasks: Reporting Accounts General administration Result: Project administration Responsible: EF Tech Work package 2: System Specification and Procedures Purpose: The main goal of this work package will be to define the overall specifications for the hybrid system Tasks: Selection of suited components Simulations of total system Scaling of electricity generating components Transmission of electricity to customer ship Positioning of EPS Ship for electricity transmission Starting and safety gases Risk- and Safety Analysis Development of procedures Result: Specifications for the hybrid system Responsible: Wärtsilä, EF Tech, Polytec Work package 3: Heat energy to electricity Purpose: The main goal of this work package will be to explore and develop a efficient system for conversion of heat energy to electricity Tasks: Concept studies Evaluation of new and emerging technologies Simulation of total system Optimization and scaling studies Operational flexibility studies/dynamic simulations Reliability and safety studies Result: Define a efficient heat energy to electricity system Responsible: Polytec, Wärtsilä, EF Tech side 4/10

Work package 4: System control Purpose: The main goal of this work package will be to develop a control and safety management system Tasks: Control and balancing of power station and power supply systems Control of hybrid system towards a operational profile Energy storing control strategies Modeling of systems Simulation of system Down scale lab testing Result: Development of system control Responsible: Wärtsilä, EF Tech, Polytec Work package 5: Evaluating measures to reduce air emissions in large port cities: An economic literature review Purpose: The main goal of this work package will be to gain knowledge of economic consequences through a literature study. Tasks: Literature study Collect available data Analysis Potential meta-study Result: Literature study Responsible: Stord/Haugesund University College, Norwegian School of Economics and Business Administration, EF Tech 7. R&D challenges and scientific methods System specification and procedures The use of fuel cells gives both challenges and new opportunities. Regulation of the cell is slow. A load change of 50% takes several hours and this is not in accordance with the vessel s functional requirements, where load changes in the order of MW may be required within a minute. Eidesvik has a patented solution to this problem, but this foresees several so called buffer systems that cooperate with the fuel cell. By combined operation of several energy sources and distribution of the load between them we may exploit the operational characteristics of each component and thus model and regulate the power production to match the ship s required load profile. We may thus optimize on minimum fuel consumption and minimum pollution. In order to achieve this, tools for modeling and analysis of the complete plant is needed, as a tool for estimating the capacity of the components relative to each other and towards a desired load profile. Further a control system need to be developed for optimal control of all components working together. In FellowSHIP II hydrogen was used as starting gas. Hydrogen is a highly explosive gas, and finding solutions that does not include the use of this gas will make safety design much simpler, but will require change in the fuel cell control and starting procedure. Nitrogen is used as safety gas and instrument quality (99,995 % purity) is required. We have received supply in gas cylinders from shore. The storage capacity of this quality is 2000 Nm 3 onboard Viking Lady and this is very costly. We now see that this high purity is only required for the high temperature range, whereas less pure N 2 (97 % purity) may be accepted for the lower temperature range. This project will introduce a two quality nitrogen system and develop systems and procedures to deal with this and also to produce both these qualities of N2 ourselves onboard. side 5/10

Heat energy to electricity We will have a boiler plant for exhaust gas heat recovery and with possibility for additional gas firing and then a steam turbine driven el-generator. The fuel cell system installed onboard the Viking Lady only has a simple and incomplete heat recovery system. We will now develop a far more comprehensive heat recovery system that also includes reclaim of condensed water from the fuel cell exhaust and then use this water into the process again. In addition to the heat that can be utilized by the steam turbine, there will be considerable rest energy which up to now has been difficult to use. Exploration of possibilities to convert this energy to electricity will be crucial. Fuel cells based on molten carbonate (MCFC) offer very high efficiency, ca. 50% efficiency using NGL fuels, compared to other technologies. The rest of the fuel energy (ca. 50%) ends up in the exhaust from the fuel cell. Since the temperature of this exhaust is relatively high (ca. 450 o C) a significant amount of this heat can by recovered and converted to electricity. An important part of this project will be to convert a maximum of the heat energy to electricity and to ensure that the overall efficiency is as high as possible with a target of >70% overall efficiency. A challenge will be to design the heat integration network in the exhaust outlet in a way that does not interfere with the fuel cell operation. The fuel cells tolerate only a very small back pressure at the exhaust outlet. To increase the overall efficiency several options are available. The traditional way will be use the exhaust heat to produce steam for a steam turbine that in turn drives an electric generator. Alternative and emerging technologies (direct thermo-electric conversion for example) will also be evaluated in the project. In particular a new technique from LandTech RE<C (www.landtechrec.com) will be evaluated for this project. This technique can potentially offer significantly higher conversion efficiency for waste heat than existing technology. This is a new concept for heat recovery (a heat pumped heat engine) using a combination of a Sterling heat engine and a heat pump that has the potential for efficient conversion of waste heat to electric energy. This technique is now at the prototype stage (full scale testing will be performed during Q1, 2011) and can probably be matured sufficiently to be integrated into this project in a timely manner. Using a combination of such techniques will also be evaluated. For operational flexibility and rapid response to changes in the electric load the system should also be able to store energy in simple but robust ways. This can be by battery banks and/or by a pressurised hot water reservoir for rapid supply of extra steam when needed by a steam turbine for example. There are several challenges in the project that has to be highlighted. The basic challenge is to validate and verify new hybrid systems for energy production and low emission technology in a full scale operating vessel. This involves the basic understanding of the design of the vessel loading conditions and transfer of power to adjacent vessels with an optimum energy and emission profile. Simulation models will be established for the total concept including complete thermodynamic models of the complete machinery system in different modes and with different power generating components. The simulation models will be validated and verified against data collected within this project. System Control One of the challenging parts is to control the overall system in a stable mode during all dynamic operations and during all transit operations. There are several modes of operation; either of the energy sources should be able to deliver power to other vessels and any combinations of power sources should be able to work together. The characteristics of each of the power generation systems will in nature be different in power and energy abilities and this requires new control strategies that have to be verified through simulations and part testing and full scale testing. Storing of energy is another area that will need special attention either as chemical energy storage or thermal heat storage. Control of storing and selection of best side 6/10

available energy source is a challenging control task and need development and testing to be able to verify this kind of operation. Economics It has been shown that air pollution has a number of negative effects on society. These effects may be experienced both as health-related and as non-health-related costs. Given the public's increasing concern for the environment, it is to be expected that measures aimed at reducing air pollution will become increasingly important in the coming years. There are many sources of emissions. In urban areas, the transportation sector in general is a major source. This has led policy-makers to concentrate their efforts on this sector, and particularly on road transport. Considerably less attention has been given to the effect of emissions from ships on the air quality in port cities and their immediate surroundings. This in spite of the fact that maritime transport is often assumed to be sustainable. There are many explanations for this fact, and the explanations are both related to practical, scientific and institutional issues. Some of the most important reasons are the difficulties in regulating this sector and whether port cities have the necessary powers to implement effective policies. There are measurement problems and data on for instance emissions are scarce. In addition as mentioned above, other parts of the transportation sector are likely to contribute more to both local and national pollution, making them of more interest than maritime transport. Finally, within the maritime sector environmental issues associated with catastrophes seems to have received more attention. Whether the reduction of emissions has any particular value in areas in and around port cities depends in part on policies, goals and agreements. In part it is also a question of environmental knowledge and considerations. For example, Gothenburg is a city which has gone some lengths to establish a port electricity supply with environmental considerations in mind. The city of Bergen has been actively considering such measures along with, amongst others, BKK, the local power company. Bergen is an important port city. Nationally, it is one of the cities which can be identified as having problems with air quality. A relevant question therefore is how, and to what extent, can measures aimed at ships in the port contribute to improving air quality in cities. It is also important to consider whether such measures can be cost effective either to achieve superior goals in a given time period, or from a more longterm, strategic perspective. Such questions can be answered through the use of variants of cost-benefit analyses. If this type of analysis can be generalised, then it would be useful to know what characterises a port city where such emission reduction measures can lead to a net benefit. Against this background, the research will concentrate on gaining an overview of the relevant studies which have been published analysing air quality problems in large cities. Particular weight will be given to studies of port cities in north-west Europe. This area is of special interest because of the Gothenburg-protocol, the EU's focus on the environment as well as the volume of maritime traffic in this region. Through the literature review, we will gain an insight into which measures can be most cost effective in relation to specific emissions goals, and particularly those relating to technology and electrification. If a sufficient number of studies exist, we hope to carry out a meta-analysis in addition to a more traditional literature review. This would give added insight into the aforementioned problems. side 7/10

8. Organisation and project plan Project plan No. Main activity, objectives and deliverables Cost Responsible partner Participating partners WP1 Project administration 2 000 000 EF Tech WP2 System specification and procedures 5 500 000 Wärtsilä EF Tech, Polytec WP3 Heat energy to electricity 2 000 000 Polytec Wärtsilä, EF Tech WP4 System control 9 500 000 Wärtsilä EF Tech, Polytec WP5 An economic literature review 2 000 000 Stord/Haugesund UC NHH, EF Tech The project consortium will consist of four industry partners, Wärtsilä Norway, Wärtsilä Ship Design, Eidesvik and EF Tech. EF Tech is 100% owned by Eidesvik AS. In addition, the Research Foundation Polytec, Stord/Haugesund University College, Norwegian School of Economics and Business Administration and Port of Rotterdam are to be participating partners. Suppliers and development companies with technologies that will be incorporated into the overall concept will be involved. Project participants are selected because they represent a chain of non-competing companies. The various players in this research project are aware of the importance of close interaction in this multidisciplinary project. WP 1 The project is organized by project manager from EFTech. The project manager will be Dr. Scient Vidar A.T. Thorsen. The project is strategically secured in EFTech's management, board and owners. The project is also anchored in the management of all companies in the project consortium. Administrators from each of the participants are: WP 2 and 4 Wärtsilä Norway: Ingve Sørfonn (Director Future Solutions) Wärtsilä Ship Design: Trygve Eiken (Senior Manager, Project Development) Eidesvik Offshore: Kjell M. Sandaker (Project Developer) EF Tech : Dr. Scient Vidar A.T. Thorsen. Skilled workers from the companies will be made available. The participants from the companies are also active in the Fellowship project and will thus contribute with solid experience and knowledge. At the same time this will contribute to an effective transfer of experience between the projects. WP 3 Research Foundation Polytec: Senior researcher Carl Nilsson The Research Foundation Polytec has over the years built up solid expertise in various system analysis and simulations. WP 5 Faculty of Technology/Business/Maritime Education Stord/Haugesund University College: Associate Professor Liv Osland, Associate Professor David McArthur Norwegian School of Economics and Business Administration: Professor Gunnar S. Eskeland Port of Rotterdam: Maurits Prinssen MSHE side 8/10

The Port of Rotterdam will hold two workshops to align technology to the port requirements. 9. Key milestones Year/Quarter WP 1 Project administration WP 2 System specification and procedures WP 2.1 Selection of suited components WP 2.2 Simulations of total system WP 2.3 Scaling of electricity generating components WP 2.4 Transmission of electricity to customer ship WP 2.5 Positioning of EPS Ship WP 2.6 Starting and safety gases WP 2.7 Risk- and Safety Analysis WP 2.8 Development of procedures WP 3 Heat energy to electricity WP 3.1 Concept studies WP 3.2 Evaluation of new and emerging technologies WP 3.3 Simulation of total system WP 3.4 Optimization and scaling studies WP 3.5 Operational flexibility studies/simulations WP 3.6 Reliability and safety studies WP 4 System control WP 4.1 Control and balancing WP 4.2 Control towards a operational profile WP 4.3 Energy storing control strategies WP 4.4 Modeling of systems WP 4.5 Simulation of system WP 4.6 Down scale lab testing WP 5 An economic literature review WP 5.1 Literature study WP 5.2 Collect available data WP 5.3 Analysis WP 5.4 Meta-study 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 10. Costs incurred by each research-performing partner (in NOK 1 000) Partner Payroll and indir. exp. Equipment Other op. expenses Sum Wärtsilä Norway 7 740 1 000 450 9 190 Wärtsilä Ship Design 1 750 450 2 200 EF Tech 2 850 450 3 300 Eidesvik Offshore 2 650 450 3 100 HSH/NHH 1 700 100 1 800 Polytec 1 300 100 1 400 Port of Rotterdam 10 10 Totalt 18 000 1 000 2 000 21 000 Other expenses include travels and workshop. side 9/10

11. Financial contribution from each partner (in NOK 1 000) Partner In-kind contribution Cash financing Sum Wärtsilä Norway 5 190 0 5 190 Wärtsilä Ship Design 1 350 0 1 350 EF Tech 2 050 0 2 050 Eidesvik 1 900 0 1 900 HSH/NHH 0 0 0 Polytec 0 0 0 Port of Rotterdam 10 0 10 NFR 0 10 500 10 500 Totalt 10 500 10 500 21 000 12. Other collaboration The project has been presented to the Interreg IVB North Sea Region Program project Clean North Sea Shipping and close co-operation with this Hordaland County Council lead project will be assured. A pre study for the introduction of an EPS-Ship in the Port of Bergen is planned with a consortium consisting of both public authorities and private companies. Furthermore, a pre market study regarding Port of Rotterdam, Geirangerfjorden and Port of Bergen has been completed. The project was supported by Innovasjon Norge. PART 3: Other aspects 13. Other socio-economic benefits The project incorporates an own Work package (WP 5) for economic issues. 14. Dissemination and communication of results The major part of the project participants will use the results to promote their business activities. The partners will present and publish results that are not a part of any patented applications. Publishing in actual magazines will be a parallel activity. The project will link to a web site in this field and where social networks can give valuable input and discussions and where general publications can be published in an efficient way. 15. Environmental impact As described the results from the project has a promising positive impact on the environment. This is mainly due to the fact that the actual operations can be better optimized. Within operations the machinery can be run in a more environmental friendly way based on a model based advisory system or an advanced control system. The environmental awareness on-board and within complete fleet administrations will improve. Energy optimalisation will in general have a positive influence on both an improved sustainable business and the emissions. No negative effects can be seen. 16. Ethical perspectives No negative ethical perspective can be seen from result of this project. 17. Gender issues (Recruitment of women, gender balance and gender perspectives) In general the project will aim at 30 % participation by women to achieve a better gender balance than what is normal in the maritime industry. 18. Additional information specifically requested in the call for proposals side 10/10

CURRICULUM VITAE PERSONALIA : Navn : Vidar A.T.Thorsen Adresse : Norrønagt. 14, 5529 HAUGESUND Telefon : 52738378 (Privat), 97541006 (Mob) E-mail : Vidtho@haugnett.no Fødselsdato : 05.06.61 Sivilstatus : Gift med Nora Olsen-Sund; ett barn, Ingrid Marie Thorsen (02.08.96) Språk : Norsk, Engelsk, Tysk (alle flytende både skriftlig og muntlig) HØYERE UTDANNELSE : 1988-1999 : Biokjemi ved Universitetet i Bergen, Cand.Scient. (1991), Dr.Scient. (1999). 1980-1987 : Teknisk kjemi ved Technische Universität Graz, Østerrike.

ANSETTELSER : 2008 Daglig Leder Haugaland Kunnskapspark AS 2005 2008 Daglig leder Viking Innovation Partner AS 2003 2005 : Daglig leder ved Biosentrum AS 2002 2003 : Forskningsleder for Bioteknologi ved IRIS 2001 2002 : Seniorrådgiver ved Høgskolen i Stavanger, forskningsavdelingen. 1999 2001 : FoU-leder ved Primex Ingredients ASA. 1997 1999 : Post.Doc./forsker ved Institutt for biokjemi og Molekylærbiologi gjennom EU Biomed 2 Programme Contract BMH-CT-97 2609 i perioden 01.10.97-31.07.99. 1997 : Universitets lektor ved Inst. for Biokjemi og Molekylærbiologi, Universitetet i Bergen. (01.04.97-30.09.97) 1993 1997 : Stipendiat ved Institutt for biokjemi og molekylærbiologi, UiB 1992 1993 : Militær tjeneste ved Forsvarets forskningsinstitutt, Kjeller 1991 1992 : Stipendiat ved Institutt for biokjemi og molekylærbiologi, UiB 1983 1990 : Diverse sommer- og vikarjobber

PERSONLIGE VERV : 2008 Styremedlem EFTech AS 2004-2007 : Styreleder i grunderbedriften TidalSails AS (www.tidalsails.com) 2002-2004 : Styremedlem i Prekubator AS (www.prekubator.no) 2002 : Styremedlem i interrimstyret til Biomarin Vekst (www.biomarinvekst.no) PUBLIKASJONER : 1. Phospholipase D in platelets and other cells. Vorland, M., Thorsen, V. A. T. and Holmsen, H. Phospholipase D in platelets and other cells. Platelets, December 2008; 19(8): 582 594 2. Nettverksdilemmaet Idar A. Johannessen, Vidar A.T. Thorsen, Rolf L. Sjursen, Martha Kold-Bakkevig Magma Nr 3/07 3. Participation of phospholipase D and alpha/beta-protein kinase C in growth factorinduced signalling in C3H10T1/2 fibroblasts. Thorsen VAT, Vorland M, Bjørndal B, Bruland O, Holmsen H, Lillehaug JR. Biochim Biophys Acta. 2003 Jun 10;1632(1-3):62-71. 4. Chlorpromazine interaction with glycerophospholipid liposomes studied by magic angle spinning solid state (13)C-NMR and differential scanning calorimetry. Nerdal W, Gundersen SA, Thorsen V, Hoiland H, Holmsen H. Biochim Biophys Acta. 2000 Mar 15;1464(1):165-75. 5. Expression of a peptide binding to receptor for activated C-kinase (RACK1) inhibits phorbol myristoyl acetate-stimulated phospholipase D activity in C3H/10T1/2 cells: dissociation of phospholipase D-mediated phosphatidylcholine breakdown from its synthesis. Thorsen VA, Bjorndal B, Nolan G, Fukami MH, Bruland O, Lillehaug JR, Holmsen H. Biochim Biophys Acta. 2000 Sep 27;1487(2-3):163-76. 6. Effects of stimulated phospholipase D activity on phosphatidylcholine turnover and activation of signal transduction in murine C3H/10T1/2 fibroblasts.vidar A.T. Thorsen Dr.Scient. thesis.

7. Choline derived from the phosphatidylcholine-specific phospholipase D is not directly available for the CDP-Choline pathway in phorbol ester-treated C3H10T1/2 Cl8 fibroblasts. Vidar A.T. Thorsen, Ove Bruland, Johan R. Lillehaug and Holm Holmsen. Molecular and Cellular Biochemistry, 187:147-154,1998. 8. Proceedings of the European Thrombosis Research Organisation (ETRO) Working Party on Platelet Cellular Signalling. A Joint Meeting of European Thrombosis Researchers, 25-29 June 1996, Brakanes Hotel, Ulvik, Norway. Vidar A.T.Thorsen Platelets1996, Vol. 7, No. 5-6 : Pages 335-365 9. Compartmentalization, acyl specificity and diacyglycerol recyceling in fibroblast phospholipid metabolism. Vidar A.T. Thorsen and Holm Holmsen. Journal of Cellular Biochemistry, Abstract Supplement 18D, 1994, s42. 10. The toxins of the marine alga prymnesium patelliferum increases cytosolic Ca 2+ in synaptosomes and voltage sensitive Ca2+-current in cultured pituitary cells. A-S Meldahl, S. Eriksen, V.A.T. Thorsen, O. Sand and F. Fonnum. NATO ASI Series, Vol. H 82. Biological Membranes: Stucture Biogenesis and dynamics. Edited by Jos A. F. Op den Kamp, Springer-Verlag Berlin Heidelberg 1994. 11. Delvis rensing og karakterisering av elektrogen protonpumpende ATPase fra gjellene saltvannsadaptert laks (Salmo salar). Hovedfagsoppgave til Cand. Scient. graden.

Vedlegg til søknad om Innovasjonsprosjekt med tittel: Partneropplysninger Partnernavn: EF Tech AS Organisasjonsnr.: 992 764 880 Etableringsår: 2008 Nøkkeltall, ifølge siste årsrapport (beløp i mill. kr) For 2009 Antall ansatte 0 Omsetning/budsjett 0 Resultat 0 Samlede 0 EF Tech AS er i dag 100% eid av Eidesvik AS. Selskapet er i en oppbygningsfase og er under oppkapitalisering. Forretningsidé er å utvikle brenselcelle baserte systemer for elektrisk energiforsyning til maritim industri, i samarbeid med partnere. Partnerens nettsted: Nettadresse for sist offentliggjorte årsrapport: Kontaktperson for årsrapport/årsregnskap, med epost-adresse: Nils Inge Steinsvåg, e-post < nilsinge.steinsvag@eidesvik.no > Kopier og fyll ut tilsvarende tabell for hver av de sentrale partnerne nedenfor. 1/1

Vedlegg til søknad om Innovasjonsprosjekt med tittel: Partneropplysninger Partnernavn: Eidesvik Offshore ASA Organisasjonsnr.: 986 942 785 Etableringsår: 2004 Nøkkeltall, ifølge siste årsrapport (beløp i mill. kr) For 2009 Antall ansatte 570 Omsetning/budsjett NOK 1202 mill Resultat EBITDA NOK 643 mill Samlede FoU-kostnader NOK 22 mill Utdrag fra årsrapport 2009: Eidesvik Offshore ASA er et selskap som er nyskapende og som leverer godt sjømannskap. Vi skal være et kraftsenter for framtidsrettede og miljøvennlige skips- og operasjonsløsninger. Selskapets formål er i følge vedtektene å drive rederivirksomhet og alt som står i forbindelse med dette, herunder å eie aksjer og andeler i selskaper som driver tilsvarende eller beslektet virksomhet. Dette formålet er gjennom 2009 realisert gjennom drift av 23 skip hvorav 18 er konsolidert i konsernet. Skipene var i det vesentligste befraktet på langsiktige kontrakter innenfor segmentene Supply, Seismikk og Subsea. Eidesvik deltar i et Joint Venture med CGGVeritas som har 2 seismikkskip under bygging ved Ulstein Verft. Ellers er oljeselskap viktigste kunder. I april 2009 tok rederiet levering av Viking Lady som er en gassdrevet PSV. Skipet gikk fra levering inn på en 3 års kontrakt med Total. Skipet er tilrettelagt for å kunne produsere deler av sitt energibehov fra brenselcelle. Partnerens nettsted: www.eidesvik.no Nettadresse for sist offentliggjorte årsrapport: www.eidesvik.no/aarsrapport-2009/ Kontaktperson for årsrapport/årsregnskap, med epost-adresse: Nils Inge Steinsvåg, e-post < nilsinge.steinsvag@eidesvik.no > Kopier og fyll ut tilsvarende tabell for hver av de sentrale partnerne nedenfor. 1/1

Vedlegg til søknad om Innovasjonsprosjekt med tittel: Partneropplysninger Partnernavn: Wärtsilä Ship Design AS Organisasjonsnr.: 940193575 Etableringsår: 1986 Nøkkeltall, ifølge siste årsrapport (beløp i mill. kr) Antall ansatte 104(2009) Omsetning/budsjett 234(2009) Resultat - 18(2009) Samlede FoU-kostnader Wärtsilä Ship Design has extensive experience in designing ships and in providing ship design related services. Optimising ships for best economy and for environmental performance is our strong expertise. In view of upcoming ever more strict regulations, Wärtsilä Ship Design can add value to your business by creating ships sutable to meet future regulations without major need of reconstruction. Wärtsilä Ship Design can support you by providing ship design as well as new-building services and consultancy. As a ship design solutions provider with complete in-house capacity and capability, Wärtsilä Ship Design s core offering comprises both basic and detailed design packages. Wärtsilä s specific strength is the ability to provide environmentally and economically sound integrated solutions, including ship design, equipment, and service throughout the entire lifecycle of the vessel or marine structure. Separate elements of the offering can be combined according to the customer s preference. Partnerens nettsted: http://www.wartsila.com/fi/meriratkaisut/ship-design/sd-services Nettadresse for sist offentliggjorte årsrapport: http://www.wartsila.com Kontaktperson for årsrapport/årsregnskap, med epost-adresse: hildegunn.severud@wartsila.com 1/1