THE ECONOMICS OF RETURNING TO COAL

Weight for weight, bunker oil is now (March 1980) about five times the price of coal, and, per unit of energy, it costs about three times as much. This price difference makes a return to coal-fired ships worth consideration, and the Author, of the International Energy Agency, here presents a comparison of the economics of coal-fired and oil-fired ships (technical factors are not considered). The basis of the Author's estimates makes them particularly appropriate to the purchase of new ships for operation over a long period. It is found that there is at present no economic advantage in adopting coal firing for Panamax-size ships. However, the economics of a return to coal firing are likely to improve with improvements in technology and because the price of oil is likely to rise faster than the price of coal. By 1985, on many bulk-cargo routes the overall costs per cargo tonne for a large coal-fired bulk carrier will be lower than those for an oil-fired ship of similar size. Order from BSRA as No. 54,276.

Media Info

  • Features: References;
  • Pagination: 9 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00324769
  • Record Type: Publication
  • Source Agency: British Ship Research Association
  • Report/Paper Numbers: Paper No. 1
  • Files: TRIS
  • Created Date: Mar 12 1981 12:00AM