(175c) The Marginal Cost of Carbon Reduction Using Different Low Carbon Marine Fuels

Globally, governments and shipping companies have committed to reducing greenhouse gas emissions from marine transportation. The IMO MEPC 80 has set forth an decarbonization strategy to reduce global shipping GHG emissions by 20-30% by 2030 and 70-80% by 2040. The European Union has also enacted the FuelEU maritime initiative that has additional goals including RFNBO targets that encourage the use of e-Fuels. The shipping industry is considering a variety of ways to comply with objectives including alternative fuels, modernization and efficiency improvements.

This presentation explores the variety and cost of low carbon marine fuels available to the industry. Blue ammonia, biomethanol, renewable diesel and e-Fuels are considered. A description of each processes is given and an approximate CI reduction with respect to bunker fuel is estimated. The cost of production and the marginal cost of carbon abatement for the alternate low carbon fuels is compared.