Environmental and Economic Evaluation of Dual-Fuel Engine Investment of a Container Ship

Abstract

In this study, environmental and economic examinations of Liquefied Natural Gas (LNG) investments are conducted. A year-long noon report data is received from a container ship and LNG conversion is performed. Savings from both the fuel expenses and the amount of the emissions are calculated and presented. To eliminate the fuel consumption uncertainties in future operation periods of the stated ship, different scenarios that simulate various fuel consumption statuses are created and analyzed within the Monte Carlo Simulation method. Lastly, calculations are made with two different time prices, approx. one and half year apart. As a result of the analyses, LNG can provide high environmental benefits since it reduces 99% for SOx, 95% for PM₁₀, 95% for PM_2.5, 41% for CO₂, and 82% for NOx, respectively. It is also determined that LNG investment is highly sensitive to fuel prices. In addition, the LNG usage can be beneficial for maritime companies in terms of marine policies such as paying carbon tax based on the expanding European Union Emission Trade System to maritime business. Still, it needs supportive carbon reduction method to comply with the maritime decarbonization strategy. This study has great importance in that the economic analysis way presented is able to adapt any alternative fuel system conversion for the maritime industry.

Keywords

Dual-fuel engine / Monte Carlo simulation / Emission reduction / Maritime transportation / Economic analysis / Environmental analysis