Economic Evaluation of an Ammonia-Fueled Ammonia Carrier Depending on Methods of Ammonia Fuel Storage

Youngkyun Seo and Seongjong Han
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Youngkyun Seo: Offshore Industries R&BD Center, Korea Research Institute of Ships & Ocean Engineering, 1350 Geojebuk-ro, Jangmok-myeon, Geoje-si 53201, Gyeongsangnam-do, Korea
Seongjong Han: Offshore Industries R&BD Center, Korea Research Institute of Ships & Ocean Engineering, 1350 Geojebuk-ro, Jangmok-myeon, Geoje-si 53201, Gyeongsangnam-do, Korea

Energies, 2021, vol. 14, issue 24, 1-13

Abstract: This study proposed two concepts for ammonia fuel storage for an ammonia-fueled ammonia carrier and evaluated these concepts in terms of economics. The first concept was to use ammonia in the cargo tank as fuel and the second concept was to install an additional independent fuel tank in the vessel. When more fuel tanks were installed, there was no cargo loss. However, there were extra costs for fuel tanks. The target ship was an 84,000 m 3 ammonia carrier (very large gas carrier, VLGC). It traveled from Kuwait to South Korea. The capacity of fuel tanks was 4170 m 3 , which is the required amount for the round trip. This study conducted an economic evaluation to compare the two proposed concepts. Profits were estimated based on sales and life cycle cost (LCC). Results showed that sales were USD 1223 million for the first concept and USD 1287 million for the second concept. Profits for the first and second concepts were USD 684.3 million and USD 739.5 million, respectively. The second concept showed a USD 53.1 million higher profit than the first concept. This means that the second concept, which installed additional independent fuel tanks was better than the first concept in terms of economics. Sensitivity analysis was performed to investigate the influence of given parameters on the results. When the ammonia fuel price was changed by ±25%, there was a 15% change in the profits and if the ammonia (transport) fee was changed by ±25%, there was a 45% change in the profits. The ammonia fuel price and ammonia (cargo) transport fee had a substantial influence on the business of ammonia carriers.

Keywords: ammonia; ammonia-fueled ship; ammonia carrier; economic evaluation; life cycle cost (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
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