Costs and benefits of alternative fuels

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Sulfur Emission Control Areas (SECAs), in place in North America and Northern Europe, in combination with the upcoming global 0.5% limit on sulfur in 2020 (or 2025) and similar EU limits in 2020, call for alternative fuels as a means for compliance.

The goal of this study was to analyse costs and benefits of various fuel options for a case with an LR1 product tanker and its operating pattern. Product tankers is a market segment where we expect an annual growth in tonnage demand of 3 to 3.5% up to 2020.