Emission reduction and cost-benefit analysis of the use of ammonia and green hydrogen as fuel for marine applications

Abstract

Increasingly stringent emission standards have led shippers and port operators to consider alternative energy sources which can reduce emissions while minimizing capital investment. It is essential to understand whether there is a certain economic investment gap for alternative energy. The present work mainly focuses on the simulation study of ships using ammonia and hydrogen fuels arriving at Guangzhou Port to investigate the emission advantages and cost-benefit analysis of ammonia and hydrogen as alternative fuels. By collecting actual data and fuel consumption emissions of ships arriving at Guangzhou Port, the present study calculated the pollutant emissions and cost of ammonia and hydrogen fuels substitution. As expected, it is shown that with the increase of NH3 in fuel, mixed fuels will effectively reduce CO and CO2 emissions. Compared to conventional fuel, the injection of NH3 increases the NOx emission. However, the cost savings of ammonia fuel for CO2, SOx and PM10 reduction are higher than that for NOx. In terms of pollutants, ammonia is less expensive than conventional fuels when applied to the Guangzhou Port. However, the cost of fuel supply is still higher than conventional energy as ammonia has not yet formed a complete fuel supply and storage system for ships. On the other hand, hydrogen is quite expensive to store and transport, resulting in higher overall costs than ammonia and conventional fuels, even if no pollutants are produced. At present, conventional fuels still have advantage in terms of cost. With the promotion of ammonia fuel technology and application, the cost of supply will be reduced. It is predicted that by 2035 ammonia will not only have emission reduction benefits, but also will have a lower overall economic cost than conventional fuels. Hydrogen energy will need longer development and technological breakthroughs due to the limitation of storage conditions.