During 2012, Wärtsilä's R&D activities continued strongly with the focus being on the development of technologies and products to meet tightened environmental legislation and also on products and solutions that can secure profitable operations for our customers. The R&D related expenditure was at a high level of EUR 188 million, which represents 4% of net sales.
Progress with regard to ballast water management systems continues. All testing of the AQUARIUS UV (ultraviolet) system has been completed, and type approval was received in December 2012. The first orders for the ultraviolet based systems have been received and were delivered in 2012. IMO Basic Approval was granted to the AQUARIUS EC (electro-chlorination) based system on 1 October 2012 and the type approval is expected during the second quarter of 2013.
Wärtsilä has today the widest portfolio of exhaust gas cleaning systems for the removal of SOx, and the most extensive reference list on the market. The portfolio consists of open-loop, closed-loop and hybrid exhaust gas cleaning systems. Wärtsilä has to date a total of 47 exhaust gas cleaning scrubbers delivered or on order, for a total of 24 vessels.
Last autumn Wärtsilä Finland Oy announced that its product development strategy had been redefined and that consequently its fuel cell function would be reorganised. Key persons in Wärtsilä's fuel cell development have started up a new company that will focus on fuel cell technology development. Wärtsilä will have a minority interest of 19.9% in the new company, named Convion Oy, and nine former Wärtsilä employees will move to the new company.
Development of Wärtsilä's low-speed dual-fuel engine technology is progressing at its test laboratory in Italy. Testing during 2012 showed that this new technology will meet IMO Tier III emission requirements without exhaust gas treatment systems. The low-speed dual-fuel technology will undergo full engine testing during 2013. The first onboard installation is planned for 2014.