New study explores renewable fuels’ future potential
In the UK, Safety4sea reported that WinGD and Envision have released a new study examining the operational costs of ships powered by renewable fuels, providing a look at how green shipping economics are expected to evolve in the coming years.
According to the “Renewable Fuel Economics: An OPEX Illustration Based on Current Costs” report, green fuels can be competitive in the near future. While a vessel fueled by green ammonia currently costs nearly three times as much to operate as a VLSFO-fueled vessel, that premium will decrease rapidly if prices evolve as expected.
The report does not factor in a reward for using zero or near zero (ZNZ) emissions fuels, but it would clearly reduce the net cost of all green fuels. A significant reward would be needed for e-LNG and green methanol to compete with VLSFO, while any reward whatsoever would further incentivize green ammonia.
Category: Fuels
