Alternative-renewable energy in shipping - economic aspect

• Main Author: Huang, Junjie.
• Other Authors: Chew Ah Seng, David
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/53807
• Institution: Nanyang Technological University

The deterioration of the environment has pressed industries globally to take actions. Shipping activities has been viewed as one of those with significant environmental impacts. As a result, international organizations like the International Maritime Organization (IMO) have been enforcing stricter environmental protection regulations. The uncertainty of supply of fossil fuel is another one of the concerns towards the use of bunker fuel. Alternative energy seem to be the optimum solution amidst these challenges. This study focuses on Alternative Energy (used interchangeably with Renewable Energy) in Shipping, and four alternative energy sources; Solar, Wind, Bio-fuels, and Hydrogen Cells. Operational feasibility, environmental impacts and economic viability are analyzed based on the current state of technology of these sources. This report focuses on the Economic Viability of each alternative energy technology. Comprehensive review of past literatures indicates high investment costs for such alternative energy technologies. Moreover, the amount of power generated are unreliable and insufficient to justify the significant amount of money invested. The technologies have to be improved in terms of production cost, efficiency and reliability. Supplementary costs such as; retraining for operating the technologies, and infrastructure for storage and distribution, provide additional deterrence. Surveys and interviews also indicated costs as the main contribution to the reluctance of adoption of these technologies. Other contributory factors include their reliability, efficiency and availability. However, the shipping industry foresees possible implementations as a result of future environment changes. The analysis of future outlook of the maritime industry helps to assess the possible effects on use of alternative energy. The analysis reveals possible changes related to fossil fuel supplies and prices; market condition; environment and concerns; and technological advancements. These future developments may have a positive impact on the implementation of alternative energy technologies. As such, recommendations will be given based on the context of the concluding current state of alternative energy technologies. There should be support from researchers, port operators, suppliers, and the government. Ship operators should also consider seeking other options before the technologies mature.