Navigating CO2 Emissions and Fuel Efficiency in Maritime Operations

In today’s maritime industry, regulatory pressures and rising operational costs have put fuel efficiency and emissions control at the forefront of shipowners' concerns. The European Union’s Emissions Trading System (EU ETS), which requires shipowners to purchase allowances for their CO2 emissions, presents both challenges and financial opportunities. Shipowners who can reduce their fuel consumption will not only lower their fuel costs but also reduce the cost of these emission allowances, leading to significant savings.
 
At IPCO, we’ve developed advanced technologies like the FID Improver that help shipowners meet these challenges head-on. By reducing fuel consumption and optimizing combustion, our systems provide a direct impact on operating costs and emissions. Whether you operate 4-stroke or 2-stroke engines, the financial benefits are clear.

How the FID Improver Reduces Fuel Consumption and CO2 Emissions
The FID Improver works by refining the fuel to achieve smaller droplet sizes, improving atomization, and leading to more complete combustion. This results in fuel savings of 1.5% on 4-stroke engines and 2.5% on 2-stroke engines, which directly translates into reduced fuel costs and lower CO2 emissions.
 
Real-World Examples: How Our Systems Work
Here are some examples of how our systems can positively impact your fleet's operations, both in terms of fuel savings and reduced CO2 allowances under the EU ETS.

1. 2-Stroke Engine Vessel (30 tons of HFO per day)

• Fuel Savings: With a fuel consumption of 30 tons per day and a fuel savings of 2.5%, the FID Improver delivers daily savings of $375.
• CO2 Savings: This also results in a daily CO2 emissions reduction of 2.103 tons of CO2, saving $189 per day on emission allowances.
• Return on Investment (ROI): Without EU ETS, the payback period is 151 days. With the EU ETS, this drops to 97 days—a reduction of over 50 days due to the combined fuel and emissions savings.

2. Ferry with 4-Stroke Engine (70 tons of HFO per day)

• Fuel Savings: For a ferry consuming 70 tons of HFO per day, the FID Improver delivers daily fuel savings of $1,050 with a 1.5% reduction in fuel consumption.
• CO2 Savings: The system reduces CO2 emissions by 6.5 tons per day, saving an additional $585 per day on emission allowances.
• Return on Investment (ROI): Without EU ETS, the ROI is 108 days. Factoring in the EU ETS, the payback period is shortened to 69 days.

3. Cruise Ship with 4-Stroke Engine (100 tons of HFO per day)

• Fuel Savings: On a large cruise ship burning 100 tons of HFO per day, our system can save $1,500 per day with a 1.5% fuel reduction.
• CO2 Savings: This results in daily CO2 savings of 9.3 tons, which provides a further daily allowance saving of $840.
• Return on Investment (ROI): Without EU ETS, the ROI remains at 76 days. Interestingly, even with EU ETS, the payback period stays at 76 days, highlighting how fuel savings alone are substantial enough to ensure a quick return.

​4. Dredger with 4-Stroke Engine (60 tons of HFO per day)

• Fuel Savings: A dredger consuming 60 tons per day can achieve fuel savings of $900 daily.
• CO2 Savings: The system reduces emissions by 5.6 tons of CO2 per day, translating to a further saving of $504 on emission allowances.
• Return on Investment (ROI): Without EU ETS, the payback period is 126 days, but with the EU ETS, it drops significantly to 81 days.

 
The Financial Opportunity of the EU ETS
The introduction of the EU Emissions Trading System (ETS) requires shipowners to purchase allowances to cover their CO2 emissions. For those who adopt fuel-saving technologies like the FID Improver, this presents a powerful financial opportunity. By reducing fuel consumption, shipowners can not only lower their fuel expenses but also reduce the number of emission allowances they need to purchase, effectively cutting costs on both fronts.
As regulations evolve, there are increasing opportunities for financial incentives and savings for companies that invest in emission-reducing technologies. The early adopters of these technologies will not only meet regulatory requirements but will also future-proof their operations against rising emission costs.
 
Future-Proofing Your Fleet with IPCO
At IPCO, we are committed to helping shipowners improve their fleet’s fuel efficiency while meeting environmental regulations. Our systems are designed to provide significant savings and offer a rapid return on investment. With the added benefit of lower CO2 emissions, shipowners are positioned to stay ahead of both regulatory challenges and rising operational costs.
 
The future of maritime operations depends on sustainable and efficient technologies. Let us help you navigate this future with confidence.