IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v322y2022ics0306261922007279.html
   My bibliography  Save this article

Economics of marinised offshore charging stations for electrifying the maritime sector

Author

Listed:
  • Yang, Shuai
  • Yuan, Jun
  • Nian, Victor
  • Li, Lu
  • Li, Hailong

Abstract

Electrification of international maritime transport, despite rapidly falling battery prices and improvements in battery technologies, remains constrained by midway charging, as the range of electric ocean-going vehicles is limited on a full charge. Before countries pour trillions of dollars of investment, this study is commissioned as the first attempt to investigate the economics of offshore marinised charging stations for enabling long-distance shipping by full-electric vessels. Three offshore power generation technologies, namely, wind, solar, and floating nuclear power plants, are compared to demonstrate the economics of offshore charging stations. Compared to conventional vessels using bunker fuels, full-electric vessels are cost competitive even under the assumed first-of-a-kind costs. Among the three offshore power sources compared in this study, a marinised charging station with floating nuclear power plant is shown to be the most cost-competitive. Despite the absence of a pilot project, the technoeconomic parameters as assumed in this study serve as important reference indicators for decision makers to consider when building an ecosystem for sustainable international shipping.

Suggested Citation

  • Yang, Shuai & Yuan, Jun & Nian, Victor & Li, Lu & Li, Hailong, 2022. "Economics of marinised offshore charging stations for electrifying the maritime sector," Applied Energy, Elsevier, vol. 322(C).
    • Handle: RePEc:eee:appene:v:322:y:2022:i:c:s0306261922007279
    DOI: 10.1016/j.apenergy.2022.119389
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922007279
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.119389?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andrew B. Abel & Avinash K. Dixit & Janice C. Eberly & Robert S. Pindyck, 1996. "Options, the Value of Capital, and Investment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(3), pages 753-777.
    2. Nian, Victor & Jindal, Gautam & Li, Hailong, 2019. "A feasibility study on integrating large-scale battery energy storage systems with combined cycle power generation – Setting the bottom line," Energy, Elsevier, vol. 185(C), pages 396-408.
    3. Pindyck, Robert S., 2002. "Optimal timing problems in environmental economics," Journal of Economic Dynamics and Control, Elsevier, vol. 26(9-10), pages 1677-1697, August.
    4. Pindyck, Robert S, 1991. "Irreversibility, Uncertainty, and Investment," Journal of Economic Literature, American Economic Association, vol. 29(3), pages 1110-1148, September.
    5. Saumya Bansal & Yi Zong & Shi You & Lucian Mihet-Popa & Jinsheng Xiao, 2020. "Technical and Economic Analysis of One-Stop Charging Stations for Battery and Fuel Cell EV with Renewable Energy Sources," Energies, MDPI, vol. 13(11), pages 1-15, June.
    6. Pindyck, Robert S, 1988. "Irreversible Investment, Capacity Choice, and the Value of the Firm," American Economic Review, American Economic Association, vol. 78(5), pages 969-985, December.
    7. repec:reg:rpubli:98 is not listed on IDEAS
    8. Ellabban, Omar & Abu-Rub, Haitham & Blaabjerg, Frede, 2014. "Renewable energy resources: Current status, future prospects and their enabling technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 748-764.
    9. John H. Cochrane, 2011. "Presidential Address: Discount Rates," Journal of Finance, American Finance Association, vol. 66(4), pages 1047-1108, August.
    10. Nian, Victor & Liu, Yang & Zhong, Sheng, 2019. "Life cycle cost-benefit analysis of offshore wind energy under the climatic conditions in Southeast Asia – Setting the bottom-line for deployment," Applied Energy, Elsevier, vol. 233, pages 1003-1014.
    11. Arrow, K. & Cropper, M. & Gollier, C. & Groom, B. & Heal, G. & Newell, R. & Nordhaus, W. & Pindyck, R. & Pizer, W. & Portney, P. & Sterner, T. & Tol, R. S. J. & Weitzman, Martin L., 2013. "Determining Benefits and Costs for Future Generations," Scholarly Articles 12841963, Harvard University Department of Economics.
    12. Nian, Victor & Yuan, Jun, 2017. "A method for analysis of maritime transportation systems in the life cycle approach – The oil tanker example," Applied Energy, Elsevier, vol. 206(C), pages 1579-1589.
    13. Esteban, Miguel & Leary, David, 2012. "Current developments and future prospects of offshore wind and ocean energy," Applied Energy, Elsevier, vol. 90(1), pages 128-136.
    14. Sheng, Yu & Shi, Xunpeng & Su, Bin, 2018. "Re-analyzing the economic impact of a global bunker emissions charge," Energy Economics, Elsevier, vol. 74(C), pages 107-119.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Konduru, Sudharshan & Naveen, C., 2024. "Intelligent hybrid deep learning models for enhanced shipboard solar irradiance prediction and charging station," Renewable Energy, Elsevier, vol. 235(C).
    2. Zhou, Shiqi & Lin, Meng & Huang, Shilong & Xiao, Kai, 2024. "Open set compound fault recognition method for nuclear power plant based on label mask weighted prototype learning," Applied Energy, Elsevier, vol. 369(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel P. Mathy, 2020. "How much did uncertainty shocks matter in the Great Depression?," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 14(2), pages 283-323, May.
    2. Pindyck, Robert S., 2000. "Irreversibilities and the timing of environmental policy," Resource and Energy Economics, Elsevier, vol. 22(3), pages 233-259, July.
    3. Luis Alvarez, 2010. "Irreversible capital accumulation under interest rate uncertainty," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 72(2), pages 249-271, October.
    4. Gabriel P. Mathy, 2014. "Uncertainty Shocks and Equity Return Jumps and Volatility During the Great Depression," Working Papers 2014-02, American University, Department of Economics.
    5. repec:dau:papers:123456789/1046 is not listed on IDEAS
    6. Sels, A.T.H., 2006. "Foreign direct investment as an entry mode. An application in emerging economies," Other publications TiSEM 583ca9b5-1691-425d-8f77-0, Tilburg University, School of Economics and Management.
    7. Takao Asano, 2005. "Irreversibilities and the Optimal Timing of Environmental Policy under Knightian Uncertainty," ISER Discussion Paper 0643, Institute of Social and Economic Research, The University of Osaka.
    8. Alvarez, Luis H.R., 2011. "Optimal capital accumulation under price uncertainty and costly reversibility," Journal of Economic Dynamics and Control, Elsevier, vol. 35(10), pages 1769-1788, October.
    9. Shibata, Takashi & Wong, Kit Pong, 2019. "Investment under uncertainty with variable costly reversibility," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 14-28.
    10. Avinash K. Dixit & Robert S. Pindyck, 1998. "Expandability, Reversibility, and Optimal Capacity Choice," NBER Working Papers 6373, National Bureau of Economic Research, Inc.
    11. Hartman, Richard & Hendrickson, Michael, 2002. "Optimal partially reversible investment," Journal of Economic Dynamics and Control, Elsevier, vol. 26(3), pages 483-508, March.
    12. Luis H.R. Alvarez E., 2006. "Irreversible Investment, Incremental Capital Accumulation, and Price Uncertainty," Discussion Papers 4, Aboa Centre for Economics.
    13. Richard Hartman & Michael Hendrickson, 1999. "Optimal Partially Reversible Investment," Discussion Papers in Economics at the University of Washington 0032, Department of Economics at the University of Washington.
    14. Jonathan B. Berk, 1998. "A Simple Approach for Deciding When to Invest," NBER Working Papers 6678, National Bureau of Economic Research, Inc.
    15. Abel, Andrew B. & Eberly, Janice C., 1997. "An exact solution for the investment and value of a firm facing uncertainty, adjustment costs, and irreversibility," Journal of Economic Dynamics and Control, Elsevier, vol. 21(4-5), pages 831-852, May.
    16. Li, Yanjie & Nian, Victor & Li, Hailong & Liu, Shengchun & Wang, Yabo, 2021. "A life cycle analysis techno-economic assessment framework for evaluating future technology pathways – The residential air-conditioning example," Applied Energy, Elsevier, vol. 291(C).
    17. Hjalmar Böhm & Michael Funke & Nikolaus A. Siegfried, 1999. "Discovering the Link between Uncertainty and Investment - Microeconometric Evidence from Germany," Quantitative Macroeconomics Working Papers 19906, Hamburg University, Department of Economics.
    18. John P. Small & Henry Ergas, 1999. "The Rental Cost of Sunk and Regulated Capital," Econometrics Working Papers 9908, Department of Economics, University of Victoria.
    19. Tsekrekos, Andrianos E., 2010. "The effect of mean reversion on entry and exit decisions under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 725-742, April.
    20. Belke, Ansgar & Göcke, Matthias, 2019. "Interest rate hysteresis in macroeconomic investment under uncertainty," Ruhr Economic Papers 801, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    21. Andrea Bacchiocchi & Sebastian Ille & Germana Giombini, 2024. "The effects of a green monetary policy on firms financing cost," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 19(4), pages 727-757, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:322:y:2022:i:c:s0306261922007279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.