Technical–Economic Analysis for Ammonia Ocean Transportation Using an Ammonia-Fueled Carrier

Youngkyun Seo, Jiyoung An, Eunyoung Park, Jintae Kim, Meangik Cho, Seongjong Han and Jinkwang Lee ()
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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, Republic of Korea
Jiyoung An: Energy and Climate Policy Research Group, Division of Hydrogen Economy, Korea Energy Economics Institute, 405-11, Jongga-ro, Jung-gu, Ulsan 44543, Republic of Korea
Eunyoung Park: Offshore Industries R&BD Center, Korea Research Institute of Ships & Ocean Engineering, 1350, Geojebuk-ro, Jangmok-myeon, Geoje-si 53201, Republic of Korea
Jintae Kim: Offshore Industries R&BD Center, Korea Research Institute of Ships & Ocean Engineering, 1350, Geojebuk-ro, Jangmok-myeon, Geoje-si 53201, Republic of Korea
Meangik Cho: Offshore Industries R&BD Center, Korea Research Institute of Ships & Ocean Engineering, 1350, Geojebuk-ro, Jangmok-myeon, Geoje-si 53201, Republic of Korea
Seongjong Han: Offshore Industries R&BD Center, Korea Research Institute of Ships & Ocean Engineering, 1350, Geojebuk-ro, Jangmok-myeon, Geoje-si 53201, Republic of Korea
Jinkwang Lee: Department of Mechanical Convergence Engineering, Gyeongsang National University, 48-54 Charyong-ro, Uichang-gu, Changwon 51391, Republic of Korea

Sustainability, 2024, vol. 16, issue 2, 1-16

Abstract: This study performed a technical–economic analysis for ship-based ammonia transportation to investigate the feasibility of international ammonia transportation. Ammonia is considered to be a vital hydrogen carrier, so the international trade in ammonia by ship will considerably increase in the future. This study proposed three scenarios for transporting ammonia from the USA, Saudi Arabia, and Australia to South Korea and employed an 84,000 m 3 class ammonia carrier. Not only traditional very low sulfur fuel oil (VLSFO)/marine diesel oil (MDO) but also LNG and ammonia fuels were considered as propulsion and power generation fuels in the carrier. A life-cycle cost (LCC) model consisting of capital expenditure (CAPEX) and operational expenditure (OPEX) was employed for the cost estimation. The results showed that the transportation costs depend on the distance. The unit transportation cost from the USA to South Korea was approximately three times higher than that of Australia to South Korea. Ammonia fuel yielded the highest costs among the fuels investigated (VLSFO/MGO, LNG, and ammonia). When using ammonia fuel, the unit transportation cost was approximately twice that when using VLSFO/MDO. The fuel costs occupied the largest portion of the LCC. The unit transportation costs from Australia to South Korea were 23.6 USD/ton-NH3 for the LVSFO/MDO fuel case, 31.6 USD/ton-NH3 for the LNG fuel case, and 42.9 USD/ton-NH3 for the ammonia fuel case. This study also conducted a sensitivity analysis to investigate the influence of assumptions, including assumed parameters.

Keywords: ammonia; ammonia transportation; ammonia-fueled carrier; techno-economic; life-cycle cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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