World News
LNG May Be Cheapest Option for IMO 2028 Compliance: Report
Using LNG may be the cheapest option for shipping companies to address the IMO's new GHG policy framework in the short term, according to new analysis setting out the total costs for a range of alternative fuels.
The new analysis, titled Global Maritime Decarbonization Under Carbon Pricing, has been published by Eliseo Curcio, director of clean technologies at Blend Tiger.
The report assesses the total daily operating costs for VLSFO, LNG, methanol, biodiesel, hydrogen and ammonia, factoring in IMO penalties, fuel prices, capital expenditure and retrofit costs.
The report suggests daily costs for a 60 MW ship could be $121,200/day for LNG in 2028, compared to $163,819/day for VLSFO. Green methanol comes with a cost of $193,300/day, and green ammonia at $309,486/day.
"In 2028, under real cost conditions, the rational financial choice for shipowners will be to pay the fee—unless they can access LNG," Curcio said in the paper.
"Methanol comes close, and with future policy or price support, may tip over into competitiveness.
"But for hydrogen, ammonia, biodiesel, and bio-blends, the economy is still out of reach.
"In short: the carbon fee nudges, but it doesn't push.
"Transformation will require more than a price. It will require financing, mandates, infrastructure, and time.
"And until those things arrive, most fleets will do what makes sense on paper—stay dirty, pay the fine, and keep moving."
To read the paper in full, click here.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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