Indicative shipping fuel cost ranges

Sources

Based on IEA (2020c), Outlook for biogas and biomethane: Prospects for organic growth; IEA Bioenergy TCP (2020), Advanced biofuels: Potential for cost reduction.

Notes

GJ = gigajoule. HSFO = high-sulphur fuel oil. VLSFO = very-low-sulphur fuel oil. Fossil fuel price ranges based on 2019 global market values. VLSFO has a cost premium over HSFO at equivalent oil prices. Biofuel oil costs estimated based on a USD 200-300/tonne premium over fuel oil. Bio-LNG based on global cost estimates of biomethane production with additional liquefaction cost. BtL fuels are not in commercial production, so production cost range is not reflective of current market prices. Hydrogen and ammonia cost range based on production through electrolysis using renewable electricity; the bottom of the cost range requires renewable electricity costs of around USD 25/MWh. Potential exists to reduce costs for a given electricity input price by reducing electrolyser capital costs.