World News
High Cost of Conversion to Alt Fuel for Global Fleet: Report
The costs of switching existing ships to alternative fuels could be higher than expected, a new report has found.
The report, Energy Transition in Shipping — Facts and Timeline, found that a complete conversion of an existing vessel to alternative fuels would be somewhere in the region of between $18m to $20m, maritime news provider Tradewinds reported.
Such investment would need compensation for owners to be front-loaded to incentivise investment in retrofits, according to the report's author, Svein Guldteig of Ocean Consulting.
"Many existing ships will face technical and economical hurdles in the process of being converted to use alternative low or zero-carbon fuels — such as LNG and methanol — with a flashpoint below 60 degrees Celsius," Guldteig was quoted as saying.
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Overall, the report found that around 15% of the global shipping fleet has electronically controlled main engines that are viable for conversion to alternative fuels. The global fleet comprises around 94,000 vessels.
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