Comparative Life Cycle Assessments and Economic Analyses of Alternative Marine Fuels: Insights for Practical Strategies

Hyunyong Lee, Jinkwang Lee, Gilltae Roh, Sangick Lee, Choungho Choung and Hokeun Kang ()
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Hyunyong Lee: R&D Division, Korean Register, 36, Myeongji Ocean City 9-ro, Gangseo-gu, Busan 46762, Republic of Korea
Jinkwang Lee: Department of Mechanical Convergence Engineering, Gyeongsang National University, 48-54 Charyong-ro, Uichang-gu, Changwon 51391, Republic of Korea
Gilltae Roh: R&D Division, Korean Register, 36, Myeongji Ocean City 9-ro, Gangseo-gu, Busan 46762, Republic of Korea
Sangick Lee: R&D Division, Korean Register, 36, Myeongji Ocean City 9-ro, Gangseo-gu, Busan 46762, Republic of Korea
Choungho Choung: R&D Division, Korean Register, 36, Myeongji Ocean City 9-ro, Gangseo-gu, Busan 46762, Republic of Korea
Hokeun Kang: Division of Coast Guard Studies, Korea Maritime and Ocean University, 727, Taejong-ro, Yeongdo-gu, Busan 49112, Republic of Korea

Sustainability, 2024, vol. 16, issue 5, 1-33

Abstract: The growth of the global shipping industry has increased the interest in the environmental impact of this sector. The International Maritime Organization adopted the initial Greenhouse Gas strategy for reducing GHG emissions from ships at the 72nd Marine Environment Protection Committee in April 2018. In this study, we carried out a life cycle assessment of nine production pathways of alternative fuels, including LNG, ammonia, methanol, and biofuels, and conducted an economic analysis considering the life cycle carbon pricing of each fuel pathway. Our results indicate that biomass-based FT-diesel, e-methanol, and e-ammonia are the most environmentally friendly, with GHG reductions of 92%, 88.2%, and 86.6%, respectively. However, our net present value analysis of ship life cycle cost considering carbon price indicated that using those fuels would not be cost-effective during the target period of study. Sensitivity analysis was performed by changing the life cycle carbon pricing from the baseline scenario, and we investigated the approximate years for when these alternative fuels will become more cost-effective compared to conventional fossil fuels. Further, to provide practical implications for shipping stakeholders, we analysed the effect of blending the same kinds of fuels with different production pathways.

Keywords: alternative marine fuel; greenhouse gases; life cycle assessment; carbon price; fuel cost; fuel pathway (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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