1900

Economic Analysis of a Zero-carbon Liquefied Hydrogen Tanker Ship

Abstract

The green hydrogen economy is considered one of the sustainable solutions to mitigate climate change. This study provides an economic analysis of a novel liquified hydrogen (LH2) tanker fuelled by hydrogen with a total capacity of ~280,000 m3 of liquified hydrogen named ‘JAMILA’. An established economic method was applied to investigate the economic feasibility of the JAMILA ship as a contribution to the future zero-emission target. The systematic economic evaluation determined the net present value of the LH2 tanker, internal rate of return, payback period, and economic value added to support and encourage shipyards and the industrial sector in general. The results indicate that the implementation of the LH2 tanker ship can cover the capital cost of the ship within no more than 2.5 years, which represents 8.3% of the assumed 30-year operational life cycle of the project in the best maritime shipping prices conditions and 6 years in the worst-case shipping marine economic conditions. Therefore, the assessment of the economic results shows that the LH2 tankers may be a worthwhile contribution to the green hydrogen economy.

Funding source: The authors are grateful to the Government of the State of Kuwait and the Public Authority for Applied Education and Training (PAAET) for provisions and financial support.
Related subjects: Applications & Pathways
Countries: Kuwait ; United Kingdom
Loading

Article metrics loading...

/content/journal3708
2022-06-18
2022-10-06
http://instance.metastore.ingenta.com/content/journal3708
Loading
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error