A life cycle cost analysis of using alternative technologies on short sea shipping vessels in ECAs

Abstract

Air emission control has been targeted as an important issue in the decade. In ship industry, MARPOL ANNEX VI regulates the limit of emissions. The regulations will become stricter in the upcoming years. Ship owners face to a cost challenge due to the rising fuel price, especially the low sulphur marine diesel oil. This study focuses on the alternative solutions that fulfil with the MARPOL regulations. By comparing the life cycle cost to help ship owners make their decisions with different operation strategies. The life cycle cost analysis is applied to four vessel types (Ro-Pax, container feeder, cruise vessel and small ferry) which are mostly serviced in emission control area.

To figure out the feasibility of alternative solutions, a review of the most discussed technologies is conducted. Including the basic introduction, influence after installed on board, impacts to operation, cost data and related international conventions/classification rules. The case to switch marine gas oil (MGO) is chosen as a baseline, the life cycle cost analysis is performed with liquid natural gas (LNG), scrubber system and methanol as a fuel.

In the life cycle cost analysis, it is difficult to assess the price of types of fuel in the next 15 year life cycle. Instead of guessing the tendency of price escalation, this study gives four scenarios of price profile. According to the result of those scenarios, the sensitivity of lifecycle cost analysis due to fuel price can be observed. The total life cycle cost and the payback time of initial investment are two key targets in the comparison. According to the LCCA result shown in this study, each alternative has its own advantages, depending on the type, purpose, routes and life time. There is no best solution for all vessels., but it is obvious that all alternatives are better than switching to MGO for short sea shipping vessels in SECAs.