We are launching the Fuel Cost Calculator! With the Fuel Cost Calculator, you will be able to calculate the bottom-up production cost of sustainable fuels and benchmark them against fossil fuels. Access the Fuel Cost Calculator here: https://lnkd.in/eQkvrVkD All calculations are based on the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping's set of assumptions that are derived from a blend of public literature, extensive industry knowledge, and expert insights. “The Center was established in 2020, and since the beginning, we have openly shared our research and knowledge to inform and inspire transition pathways. Now we are taking it to the next level. With the Fuel Cost Calculator, we are opening our toolbox and assumptions to allow others to leverage and further develop our insights,” said Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. Commenting on the launch of the Fuel Cost Calculator, Torben Nørgaard, CTO and Head of Energy & Fuels at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, said: “We want everyone to understand what contributes to the cost of producing green fuels, and we welcome dialogue around our assumptions. We wish for the entire ecosystem to have an insight-based dialogue around realistic estimates for green fuel production costs. Therefore, we encourage you to try our new tool,” said Torben Nørgaard. Explore the Fuel Cost Calculator here: https://lnkd.in/eQkvrVkD #ZeroCarbonShipping
Great effort, and thanks for sharing! It is stated in the assumptions that "...our assumptions for electricity costs are based on large-scale renewable electricity generation, operating independently of any grid connection" Can you share your assumptions on the capacity factor of the renewables power production, and does it differ by location? Thanks!
I'm having a difficult time understanding how your calculations could consider all the many ways of producing hydrogen and the costs incurred and then assign that hudrgoen a particular value curve point when it system has varying costs based on different front ends.
Excellent Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping i will have à look and then I am willing to discuss with you how to upgrade it with Electric cost in ports in réal time to charge vessel fair price of energy to finance ports decarbonation by the market.Yann Alix ESPANET EMILIE Transport & Environment (T&E)
Interesting! However, looking at your cost estimates for e-ammonia in Europe, I see unrealistically low costs. If we look at your 2050 figures, you estimate $370/t. With today's production technology pushing the theoretical limits in terms of efficiency, there is really not a lot to be gained in efficiency. Lets take an arbitrary 1GW green ammonia plant. If the 1GW plant has a CAPEX of $0, and an OPEX of $0/yr while running at 50% capacity and with a power price of $35/MWh, the production cost of green ammonia would be $350/tonne using peak efficiency. Interesting to see how you in 2050 assume the cost of capital and labor to result in $20/tonne and/or the power costs decreasing significantly.
I was hoping for a useful tool. It gives cost per ton which is a useless metric for shipping. Cost per nautical mile, while speculative would be a fairer comparison. Then of course there is energy density to factor in. Every cubic meter extra required for is one less for freight. Lastly there is the risk factor. Ammonia has no business as a fuel. The societal risk level guarantees numerous incidents and a measurable level of increased (and painfully horrible) deaths.
This would be great motivator for user to switch to sustainable alternatives bringing business clarity with possible emission impact. Also the sub section gives clarity on TRL-CRL levels of various fuel production pathways. Kudos team Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping for useful tool.
Super cool, this gets public. Well done guys👍
This is massively cool Torben Nørgaard ! 👍
Why is there no ULSD at the fossil fuels? I can’t compare as we sail our vessels on ULSD