Study: eFuels in the shipping industry
The 2021 study“GHG Saving Potential of E-fuels” by researchers from the Norwegian Sintef Ocean AS (independent research institute for maritime research and technology) and the Norwegian University of Science and Technology (NTNU), examines the potential of e-fuels to reduce greenhouse gas (GHG) emissions in the maritime sector.
The study uses a well-to-wake assessment method that covers all emissions from production (well-to-tank) to fuel use (tank-to-wake).
Through a comprehensive life cycle analysis (LCA), the study compares conventional fossil fuels with different eFuels to assess their emission saving potentials, energy consumption and costs.
The results provide valuable insights into the role of eFuels in reducing greenhouse gases and the importance of renewable energy sources in this context.
eFuels in shipping: “Up to 99 percent less new CO2 emissions”
The study analyzes various e-fuels (e-hydrogen, e-ammonia, e-diesel, e-LNG and e-methanol) with regard to their greenhouse gas emissions, their energy consumption and the costs of use.
The study comes to the following, in part surprising, conclusions:
Emissions and energy consumption: The results of the study show that the reduction potential of greenhouse gas emissions for eFuels strongly depends on the availability and use of renewable electricity. eFuels such as e-diesel and e-methanol could achieve a reduction in new CO2 emissions of up to 99%, provided that production is based entirely on renewable energies.
Costs and profitability: The costs of using eFuels vary considerably depending on the price of the renewable electricity used to produce them. If electricity costs are high, the operating costs for ships powered by eFuels are uneconomical. In contrast, the economic viability of these fuels improves in a scenario with lower electricity prices. At an optimistic electricity price of USD 0.02/kWh, eFuels such as e-diesel, e-methanol and e-LNG could become competitive with conventional fossil fuels. This potential cost reduction makes eFuels an attractive option for the shipping industry, especially if renewable energy prices continue to fall in the future.
Technological flexibility: The authors of the study point out that the dual-fuel engines already in use in shipping can minimize the risk of switching to new fuels and enable the gradual integration of eFuels in shipping, such as e-LNG and e-methanol. With dual-fuel engines, ships can run on both fossil and renewable fuels, increasing flexibility and facilitating the transition to greener options. E-diesel, on the other hand, does not require special engines, as this fuel is fully compatible with conventional diesel engines. This means that e-diesel can be used directly as a replacement for fossil diesel without the need for engine modifications.
Source: Reduction of maritime GHG emissions and the potential role of E-fuels, 2021
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