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Title:
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Quick Scan of the Economic Consequences of Prohibiting Residual Fuels in Shipping
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Author(s):
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Published by:
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Publication date:
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ECN
Policy Studies
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17-7-2007
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ECN report number:
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Document type:
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ECN-E--07-051
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ECN publication
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Number of pages:
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Full text:
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76
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Download PDF
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Abstract:
The Energy Research Centre of the Netherlands has carried out a ‘Quick Scan’ on the economic impact on the Netherlands, resulting from a potential prohibition of residual fuels in international shipping.
The Dutch refinery industry annually produces about 8 million tons of refinery residues, the main component of the presently used shipping fuel. It is technically possible to convert all residues into lighter products, although this process will cause an additional energy use of about one million tons of crude oil and a related CO2 emission of about 3.5 million tons. A fast introduction would lead to market disruptions and peak prices. These effects could be limited by a grad-ual introduction over about 6 years, preceded by a preparation phase for the refineries of approximately 6 years. The investment costs for the Netherlands are estimated at about € 1.5 tot 2 billion.
The Rotterdam bunker market processes both domestic and imported refinery residues. The residues are used to blend shipping bunker fuels, which are both sold to ships and exported to other harbors. Rotterdam will not necessarily be able to develop a similar position in import, export and bunkering of distilled shipping fuels. On balance, there is a reasonable chance that the bunker sector, where about 1500 people are employed, would decrease.
This report is a translation of a report originally written in Dutch, entitled ‘Quick Scan economische gevolgen van een verbod op residuale brandstof in de zeevaart’, ECN-E--07-036, June, 2007.
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