An investment appraisal method to compare LNG-fueled and conventional vessels

Fokkema, Jan Eise; Buijs, Paul; Vis, Iris F. A.

doi:10.1016/j.trd.2017.07.021

Cited by 35 publications

(12 citation statements)

References 10 publications

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“…The introduction of LNG carriers may more readily help shipowners to comply with the new International Maritime Organisation (IMO) environmental regulations on emissions, and may also improve the financial performance of the firms. A key deciding factor for the adoption of such investments on innovation or to support innovation is often its impact on the financial profitability of a firm (Fokkema et al 2017). Hence we study the impact of acquiring LNG carriers on shipping firm profitability.…”

Section: The Concept Of Eco-innovationmentioning

confidence: 99%

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Lim

2020

J. shipp. trd.

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The technology to liquefy natural gas for transport to countries worldwide and the increasing use of natural gas as a cleaner fossil fuel for industry and household meant that the supply of liquified natural gas (LNG) worldwide is a profitable trend. Shipping companies can strategically choose to diversify into LNG fleet to grasp this trend. By supplying more LNG shipping capacities, the greater availability of LNG worldwide, as a source of marine fuel and as a source of cleaner energy in replacing coal and oil, is supporting eco-innovation. In this paper, we investigate three economic and financial benefits to a shipping firm that diversified into liquefied natural gas (LNG) shipping, namely firm profitability performance, firm efficiency, and stock return performance. We also investigate if there is an early mover advantage in doing so. Our empirical findings indicate that fleet diversification into LNG carriers resulted in higher profitability and better operational efficiency. For the listed shipping firms, their stock returns increased with diversified exposures to the LNG business. There is some evidence of higher profitability in the early mover advantage. Firms that originated in LNG business also benefited when there was diversification into the non-LNG business.

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Section: The Concept Of Eco-innovationmentioning

confidence: 99%

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Lim

2020

J. shipp. trd.

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“…Yoo (2017) [15] carried out an extensive economic assessment about using LNG as an alternate marine fuel for CO2 carriers. Fokkema et al (2017) [16] discussed an investment appraisal method to compare conventional vessels with LNG fueled ships. More recently, Iannacone et al (2020) [17] compared the use of LNG against the use of diesel oil when cruise ship fuel systems are investigated, finding that the use of LNG is more sustainable than standard marine fuel technologies.…”

Section: Introduction and Litterature Reviewmentioning

confidence: 99%

Port Energy Supply Through An LNG-Powered Integrated Grid

et al. 2020

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Ports are primary importance infrastructures when considering the transportation of people and goods across the planet. Two of the biggest issues linked to harbor areas are the pollutant emissions from moored ships, as well as the huge energy demand coming from ships and other activities that take place inside of the port boundaries. To tackle these challenges, the effort on the ship-side is to promote the transition to Liquefied Natural Gas (LNG) propulsion, while on the harbor-side is to implement electrical ship feeding. In general, using LNG for bunkering purposes implies its storage onshore using dedicated tanks. The regasification of LNG in situ can be exploited to cool down a water-brine flow (i.e. ethyl-alcohol and water). The cold brine can be used to increase the efficiency of a standard inverse cycle to produce cold (i.e. -30°C) used for refrigeration purposes inside ports. Then, the NG flow can be used to produce electrical energy with a standard turbogas cycle with energy recovery from flue gases. The generated electricity directly runs the standard inverse cycle with ethyl-alcohol and water brine to completely fulfill the energy demand for cold thermal power. The electricity still available is then used to supply the onboard systems of moored ships, or otherwise is sold to the users operating in the port. The flue gas coming from the turbogas plant can be used to provide both heating and process heat, through a dedicated heat exchanger and a natural gas boiler. The new envisaged plant can exploit all possible useful effects coming from the regasification process, helping to push towards a greener energy management system in harbor areas, through smart operative integration of the several available energy systems and the implementation of efficient energy smart grids.

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“…As a result, there is growing interest in liquefied natural gas (LNG)-powered ships to suppress vessel emissions. Because the International Maritime Organization (IMO) has established emission control areas (ECAs) and issued strong regulations on emissions from ships, LNG-powered ships equipped with LNG fuel supply systems are attracting attention as a powerful alternative to comply with regulations [4][5][6].…”

Section: Introductionmentioning

confidence: 99%

Optimization of an Organic Rankine Cycle System for an LNG-Powered Ship

Koo

Choi

et al. 2019

Energies

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Recovering energy from waste energy sources is an important issue as environmental pollution and the energy crisis become serious. In the same context, recovering liquefied natural gas (LNG) cold energy from an LNG-powered ship is also important in terms of energy savings. To this end, this study investigated a novel solution for a LNG-powered ship to recover LNG cold energy. Six different organic Rankine cycle (ORC) systems (three for high-pressure dual-fuel engines and three for medium-pressure dual-fuel engines) were proposed and optimized; nine different working fluids were investigated; annualized costs for installing proposed ORC systems were estimated based on the optimization results. In addition, a sensitivity analysis was performed to identify the effect of uncertainties on the performance of the ORC systems. As a result, the ORC system for the medium-pressure engines with direct expansion, multi-condensation levels, and a high evaporation temperature exhibited the best performance in terms of exergy efficiency, net power output and actual annualized cost. These results demonstrate the possibility of replacing a typical LNG supply system with an ORC system.

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An investment appraisal method to compare LNG-fueled and conventional vessels

Abstract: An investment appraisal method to compare LNG-fueled and conventional vessels Fokkema, Jan Eise; Buijs, Paul; Vis, Iris F. A.

Cited by 35 publications

References 10 publications

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Financial performance of shipping firms that increase LNG carriers and the support of eco-innovation

Port Energy Supply Through An LNG-Powered Integrated Grid

Optimization of an Organic Rankine Cycle System for an LNG-Powered Ship

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