Redefining offshore efficiency through system-level energy optimization

Author: Harri Lotila, Vice President, Head of Power, Offshore & Cruise, Alfa Laval

In offshore, focusing purely on equipment deliveries is the easiest way to approach the business. But the real differentiation comes from taking responsibility for how the entire thermal system performs – delivering integrated solutions that are tailored to the customer's requirements.” – Harri Lotila

The offshore activities within my scope sit alongside my two other remits: thermal-system deliveries for the power and cruise industries. These areas operate with distinct requirements reflected in their technologies, R&D, testing and business models.

To support these activities, the organization itself is split primarily between Finland and Singapore, with sales, engineering, project execution and technology capabilities across both locations. This reflects the global nature of our markets.

Across offshore, power and cruise the common focus is a system-level approach to how energy is generated, recovered and used. This includes optimizing energy efficiency, lifecycle performance and supporting emissions reduction.

In practice, this means looking at how energy flows through the entire installation. This is particularly important in continuous-process environments, where inefficiencies directly translate into higher Opex.

Where the market is today

Our offshore activity centres on floating production systems, with the majority of projects relating to FPSOs, and to a lesser extent other types of offshore production and processing units, such as FSRUs.

The floater market remains strong, but is changing in character. We anticipate that there may be the occasional order for a newbuild, but much of the growth is expected to come from conversions, upgrades and life extension projects. In these cases, the main power generation technology onboard often remains unchanged - what changes is the expectation around efficiency.

Operators typically ask a simple question: How can we recover more of the energy we already generate? This has driven growing interest in:

• Larger and more advanced waste-heat recovery systems
• Optimization of existing thermal set-ups
• More complex combined-cycle solutions

The growing interest in combined-cycle solutions is particularly important, where waste heat is used to generate additional power through a steam turbine. These systems significantly improve overall plant efficiency, but also increase project scale and complexity. For Alfa Laval, they represent a major opportunity – both technically and commercially - as only a handful of suppliers have the experience to deliver them effectively.

From wasted energy to system optimization

FPSO installations typically rely on a combination of gas turbines, engines and fired boilers. The opportunity lies in what happens around them.

Waste heat recovery captures energy from exhaust gases - energy that would otherwise be lost – and reuses it within the system. In continuous production environments such as FPSOs, this can capture significant efficiency gains.

However, this is not about replacing one technology with another. In many cases, waste heat recovery and fired boilers work together.

For example, on an FSRU, seawater often provides an ample heat source for regasification of cold LNG. But in colder environments, this may not be sufficient, in which case fired boilers act as a critical safety solution.

Each floater installation is therefore designed case by case, based on its energy balance, operating profile and location.

What differentiates Alfa Laval?

In this business, differentiation is not about having a single superior product, it's about delivering a better-performing system.

One key element is thermal efficiency.

Alfa Laval’s solutions are designed to recover more energy and operate more efficiently than many conventional alternatives. This is supported by decades of experience and a strong reference base, but also by a specific technology choice - namely natural circulation steam generator systems.

Unlike more common once-through steam generator (OTSG) designs, where water passes through the system once and requires significant pumping energy, natural circulation systems allow water and steam to circulate within the system. This reduces auxiliary energy consumption and supports more efficient operation.

But an even more important differentiator is system-level optimization.

Rather than just supplying the hardware, our approach is to take a broader scope – designing and delivering integrated thermal solutions that:

• Reduce operational costs
• Simplify engineering and integration
• Minimize interfaces for the customer
• Improve overall plant efficiency

Engaging early is the new model

Another important shift is how offshore projects are developed.

Traditionally, suppliers in our class entered at quite a late stage, competing on price in a relatively short bidding process. That model is becoming much less relevant.

Today, we get involved much earlier, often during the concept and FEED phases. This co-development approach allows us to:

• Help define the thermal system architecture
• Optimize performance from the outset

What was once a bidding process of a few months can now extend over several years, from initial engagement to contract award. But this early involvement significantly improves both the quality of the solution and the likelihood of successful execution.

As a rule, in offshore influencing the design early is often more valuable than competing at the final stage.

Managing complexity in a non-standard world

Offshore projects are inherently complex and highly customized.

Each FPSO has strict space constraints, particularly in terms of footprint. Each customer has specific technical requirements. In many cases, multiple stakeholders - owners, EPCs and shipyards - are involved, each with different priorities.

So there are no standard solutions.

This makes accurate specification interpretation and risk assessment critical. Misunderstanding even small details can have significant commercial consequences.

Alfa Laval’s approach is to combine:

• Structured upfront engineering
• Detailed analysis of specifications
• Clear definition of scope and deviations

with a focus on price transparency and execution reliability.

In this context, commercial discipline becomes just as important as technical capability. Offshore projects have traditionally been characterized by aggressive upfront pricing followed by a litany of change orders during execution. Our approach is different. We aim to define scope clearly from the outset and provide pricing that customers can rely on - supporting longer-term partnerships rather than transactional project delivery.

The objective is not simply to win projects, but to deliver them predictably and profitably - for both us and the customer.

Why it matters

Offshore is a demanding environment, but also one where optimized thermal systems can deliver measurable value.

As efficiency and emissions move higher on the agenda, operators are seeking integrated solutions from turnkey suppliers that improve overall performance.

For Alfa Laval, this represents a clear opportunity: to move from hardware supplier to system partner, helping customers recover more energy, reduce waste, protect uptime and make better long-term decisions about their assets.

Because getting the system right doesn't just improve performance - it defines it.

And for those involved from the earliest stages, seeing a project that has been developed over several years finally come into operation - often in some of the most demanding environments in the world – is particularly rewarding.