Abstract No.F180131-156
Author name(s): Ainian ZHANG1, Tao SHEN1, Yuan LI2, Fangqi LIU2
Company: 1. American Bureau of Shipping; 2. Marine Design and Research Institute of China, China
The increasingly stringent environmental regulations, unpredictable energy prices and volatile freight rates have made it imperative for the shipping industry to consider relevant options in terms of fuels and machinery technologies and their economic feasibility. This paper presents a feasibility study carried out by ABS and MARIC on the use of LNG as a fuel for an ultra-large container vessel. Based on the market demand analysis of a dual fuel vessel, investigation of LNG supply and bunkering infrastructure, a Techno-Economic study was performed by adopting a full Life Cycle Cost Analysis (LCCA) methodology for a 20000 TEU container vessel. The analysis compared the LNG option with different size and type of LNG storage tanks, alternative technology and fuel scenarios, including a base case with operation on low sulfur fuels complying with ECA and 2020 global sulfur cap regulations. This process identified key parameters such as life cycle costs, net savings, payback period and rate of return on investment, as well as their sensitivity to, for example, changes in CAPEX, and fuel cost for LNG, LSFO and MGO. The study results can assist owners to make meaningful comparisons between the options and to decide when LNG as a fuel would be their preferred solution for future operational and regulatory compliance scenarios.
KEY WORDS: LNG as a fuel; ULCV; life cycle cost
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