Complying with the 2020 global sulphur limit

Examensarbete på grundnivå

Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.12380/256279
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Type: Examensarbete på grundnivå
Title: Complying with the 2020 global sulphur limit
Authors: Wiberg, Joel
Fredriksson, Georg
Abstract: International Maritime Organization (IMO) has decided that the global sulphur limit in ship emissions shall be decreased from 3.5% to 0.5% in year 2020. This is a major change for the shipping industry which can have a large economic impact. There are numerous different compliance methods that ship owners can invest in before and after 2020. Two of these compliance methods are scrubber systems and fuel-switching operation. Scrubber systems allow ships to continue operating on HFO (heavy fuel oil, 3.5% sulphur) which is a relatively cheap bunker fuel. Fuel-switching is when ships switch between operating on ULSFO (Ultra low-sulphur fuel oil, 0.5% sulphur) and MGO (Marine Gas Oil, 0.1% sulphur). HFO is cheaper than MGO and ULSFO which makes operative costs lower, but the installation of scrubber systems is associated with a higher capital cost. Ship owners must decide what type of compliance method their vessels will use after 2020. This thesis presents total lifespan costs for scrubber systems and fuel-switching systems on two types of newbuilt vessels after 2020. This thesis also presents break-even number of years for the scrubber, compared to the fuel-switchning compliance method. The results indicate that the scrubber option is always cheaper for a specific container vessel and a tanker vessel after a 15-year lifespan. The break-even point is reached around 3-5 years for both vessels.
Keywords: Materialvetenskap;Hållbar utveckling;Innovation och entreprenörskap (nyttiggörande);Marin teknik;Materials Science;Sustainable Development;Innovation & Entrepreneurship;Marine Engineering
Issue Date: 2018
Publisher: Chalmers tekniska högskola / Institutionen för mekanik och maritima vetenskaper
Chalmers University of Technology / Department of Mechanics and Maritime Sciences
URI: https://hdl.handle.net/20.500.12380/256279
Collection:Examensarbeten på grundnivå // Basic Level Theses



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