Cost-Benefit Evaluation on Promising Strategies in Compliance with Low Sulfur Policy of IMO

Abstract

According to the amendment of the International Convention for the Marine Prevention of Pollution from Ships (MARPOL), Annex VI stating that the sulfur content in marine fuel oil cannot exceed 0.5 wt. % came into effect in 2020. This study uses cost-benefit analysis method to evaluate the feasibility and implementation benefits of those strategies. A container ship serving on the ship route is selected as a representative. It is found that the very low-sulfur fuel oil (VLSFO) strategy has a higher total incremental cost than the scrubber strategy in the first 4.14 years, but then, the trend is reversed. After this container ship is equipped with a scrubber, the pollutant emission reduction is 5% higher than the condition of VLSFO only in the first year. The SOx and PM emission reduction rates of VLSFO strategy are higher than that of the scrubber strategy by 9% and 25%, respectively, within five years. In addition, during 3.3 years after the scrubber is installed, the cost-benefit ratio is higher than that of the VLSFO strategy. Hence, the scrubber for the ocean route container ships is merely a short-term compliance strategy within 3.3 years. In contrast, the low sulfur fuel oil strategy that less pollutant is emitted is a compliance strategy for periods longer than 3.3 years.