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Biofuels and Bio-LNG Will Be More Expensive Than Other Alternatives: Report
New research has estimated the cost of a future marine energy scenario where emissions reductions are achieved largely using biofuels and bio-LNG could be more expensive than other options.
Consultancy Ricardo has produced the new report on the shipping industry's decarbonisation pathways for OGCI and Concawe, it said in an emailed statement on Tuesday.
The following three pathways were considered:
- The early pursuit of green ammonia and hydrogen
- Replacing fossil fuels with drop-in liquid and gaseous biofuels
- Maximum uptake of energy efficiency technologies, carbon capture onboard vessels and the gradual increase of green ammonia and methanol
Price forecasts for the various options came from pricing data supplied by IHS Markit.
"All three pathways are estimated to meet the IMO's decarbonisation goals when calculating greenhouse gas emissions from well-to-wake," Ricardo said in the statement.
"However, when considering total costs through to 2050, the study estimated that pathway 2, while facing fewer barriers to deployment, would be more expensive than the fuel switches of pathways 1 and 3 that would require new vessel engine investments."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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