Achieving affordable, clean shipping by integrating ship design and clean fuels

Abstract

This work assesses the technical, economic and greenhouse gas (GHG) emission performance of different, low emission shipping options. It shows how the levelized cost of shipping (LCOS) and lifecycle GHG emissions depend not only on the fuels and propulsion systems used, but also on key vessel design parameters. A case study of a conventional, 250 kt deadweight, iron ore carrier is shown to have a similar LCOS as a 350 kt deadweight vessel with a reduced range, lower design speed and green hydrogen gas fuelling, without compromising on the cargo delivered over some period. The resulting ‘green premium’ is much smaller than historical iron ore price fluctuations and towards the lower end of the IMO’s currently discussed carbon price range, with similar results also achievable with other, low emission fuels. This suggests that significant increases in shipping costs may not be inevitable as carbon-based emission policies are implemented.