MAN: Low Bunker Prices Mean Efficiency Gains Need to Deliver "Twice the Value for the Same Price"

Christian Poensgen, Senior VP of Engineering at MAN, says future efficiency gains will largely be gleaned through software solutions rather than hardware.

Christian Poensgen, senior vice president engineering at MAN Diesel & Turbo SE (MAN) says low bunker prices mean that energy efficiency improvements on marine engines need to be delivered at "twice the value for the same price," the Motorship reports.

The comments came during a debate session at last week's CIMAC World Congress in Helsinki, which featured high level representatives from MAN, Wärtsilä Corporation (Wärtsilä), and Caterpillar Inc. (Caterpillar) discussing ways to provide value for ship owners beyond engine hardware in the context of low oil and fuel prices.

"The payback period our customers [are seeking] is still on average three years," said Poensgen, adding that "with low fuel prices we need to deliver twice the value for the same price."

As a result, Poensgen says gains will largely be delivered through systems, software, and engine mapping improvements, which could see efficiency reach gains of 6.5 percent per year over the next decade, up from the current 0.3 percent per year.

"Our focus will be to work much more on system integration and big data applications, with efficiency driven more through software solutions than by hardware. Engines have to be built more flexible, but the flexibility has to come through software."

Poensgen further notes that, as alternative fuels, such as electric propulsion and storage, see increased demand, system integration will also experience a growth in demand.

Joel D. Feucht, director gas engines at Caterpillar, said: "when energy prices are low, other cost apsects become more important."

Feucht adds that marine engine companies will likely look to offer ship operators further savings through other sources, including reducing planned and unplanned downtime, improving service and parts availability, as well as integration, digitisation, information management.

In April, NGOs Seas At Risk (SAR) and Transport & Environment (T&E) released a study that suggested that improvements in vessel efficiency is being driven by bunker prices and economic cycles, rather than the uptake of new technologies driven by improved standards such as International Maritime Organization's (IMO's) Energy-Efficiency Design Index (EEDI).