Assessment of emerging technologies for high-speed-crafts decarbonization under the European Union regulation

Abstract

In order to ensure the Carbon Intensity Indicator (CII) compliance by High-Speed-Crafts (HSCs), this paper provides a quantitative analysis of the techno-economic feasibility of a combined solution with slow steaming and vessels’ retrofitting with emerging technologies for their electricity supply. Given the varying introductory dates for the EU Market Based Measures (EU-MBM) application for the outermost regions and remaining zones, both scenarios are analyzed through an application case for inter-island 10,000 GT HSCs in the Canarian Archipelago. The results reveal that the most sustainable solution is the green H2 Fuel-Cells use in HSCs’ electricity generation, along with 25.3% speed reduction by maintaining their daily calls. However, this solution is less attractive for shipowners due to its Internal Rate of Return and Marginal Abatement Costs. Additionally, EUMBM shows a deficient convergence with HSC’s pollutant impact when renewable energies and alternative fuels are involved in retrofitting, by evidencing significant over grants, especially for on-shore power supply. Fuel-EU fines prove to be the most influent variable on Net Present Value for HSC retrofitting projects, however the current Fuel-EU architecture motives permanent EU-MBM’s divergences among EU regions by prejudicing HSC retrofitting with emerging technologies in the outermost regions.