Environmental and Economic Assessment of Alternative Marine Fuels for Bulk Carriers: A Comparative Analysis of Handymax, Panamax and Supramax Vessels

In the present paper, a quantitative assessment of the effect of alternative fuel (LNG, LPG-B, LPG-P and MeOH) implementation in internal combustion engines in bulk carrier vessels on environmental compliance is presented. A fleet comprising 40 vessels across the Handymax, Panamax and Supramax classes is examined. By using LNG, the total fleet achieves environmental compliance up to 2030, with 52.5% of the fleet potentially achieving a minor superior energy ranking, while the EU ETS costs can be reduced by up to 24% compared to the case of burning conventional fuels. LPG-B and LPG-P demonstrated moderate improvements in the compliance period, with 50% to 87.5% and 52.5% to 97.5% surviving up to 2030, respectively. Reductions in the EU ETS costs were similar for these two fuels, with the reductions ranging from 3.3% to 12.1% for LPG-B and from 4.1% to 15.2% for LPG-P. Among all fuels, methanol showed the least improvement in extending the compliance period, with 52.5% to 67.5% of the fleet reaching 2030 with inferior to moderate CII ranks. The EU ETS cost reductions were low, ranging from 2.7% to 10%, with substantial fuel cost increases from 29.9% to 107%. The present study aims to assist ship owners/operators by providing a decision-support tool for bulk carrier alternative fuel pathways. Finally, it provides insights into the marine industry and shipping market regarding the future of the bulk carrier fleet in the context of decarbonization.