DOI: 10.11648/j.ajset.20261103.13 ISSN: 2578-8353

Economic Performance Analysis of Organic Rankine Cycle Retrofit for Carbon Neutral Shipping in the Gulf of Guinea

Victor Odokowo, Robert Poku, Oyinkepreye Bebeteidoh, Ezenwa Ogbonnaya
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This study presents a detailed economic assessment tailored for retrofitting marine diesel engine (MDE) with Organic Rankine Cycle (ORC) towards attaining energy efficiency and carbon neutrality in shipping. Addressing a vital gap in current research, the study, adeptly synchronizes thermodynamics, mass and energy balance equations coupled with economic indices to assess the viability of ORC retrofit technology onboard a tanker vessel on voyage in the Gulf of Guinea (GoG). To define a roadmap to the adoption of ORC onboard towards economic, energy and emission efficiency, the simulation and analysis were brought to fruition applying MATLAB. The results obtained establish that employing ORC retrofit significantly boosts the overall ship operational and economic performances by converting Waste Heat (WH) into power. Results showed that ORC retrofit remains attractive in the case study ship, with a Capital Expenditure (CAPEX) range of 20 to 60%, providing a lower Levelized Cost of Electricity (LCOE) and maximum Net Present Value (NPV). An interest rate of less than 8 % produces a strongly positive NPV and a LCOE of ₦80 per kWh. A rise in fuel price to about 0.9% cost/kg has a positive effect on the IRR and a reduction in the DPBT below 4 years. Analysis revealed that below 60% of base running hours, the NPV may turn negative causing the ORC retrofit investment unbeneficial and unviable. Above 60% of base running hours, the NPV rises, signaling the ranges of viability of the ORC retrofit especially in the GOG. The study also highlights the importance of adopting a well-matched ORC unit based on a vessel’s peculiarity of WH. Also, a proper blend of economic indicators is imperative to achieve an economically viable retrofitted system for enhanced operational and energy efficiency for a carbon neutral shipping.

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