News

The Center Launches the Fuel Cost Calculator

Published — April 17, 2024

To further inform and guide the maritime industry, the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping has launched the Fuel Cost Calculator.

The tool, which is available for free on our website, enables users to calculate the bottom-up production costs of sustainable maritime fuels and benchmarks these against fossil fuels. It provides credible, third-party cost estimates that enable fuel producers, financiers and off-takers to assess fuel options on a like-for-like basis.

The launch of the Fuel Cost Calculator is an important strategic move towards transparency. Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, said:

“The Center was established in 2020, and since the beginning, we have openly shared our research and knowledge to inform and inspire transition pathways. Now we are taking it to the next level. With the Fuel Cost Calculator, we are opening our toolbox and assumptions to allow others to leverage and further develop our insights.”

Learn more about how the calculator works by watching this video.

You can try the Fuel Cost Calculator by clicking here.

One of the major challenges the maritime industry is facing, is the absence of reliable third-party fuel cost estimates, a report published by the World Economic Forum and BCG states.

“With the Fuel Cost Calculator, we are addressing the issue by providing transparent predictions of regional fuel production costs. All calculations of the Fuel Cost Calculator are based on the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping's set of assumptions that are derived from a blend of public literature, extensive industry knowledge, and expert insights,”

said Torben Nørgaard, CTO – Head of Energy & Fuels at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping.

“We want everyone to understand what contributes to the cost of producing green fuels, and we welcome dialogue around our assumptions. We wish for the entire ecosystem to have an insight-based dialogue around realistic estimates for green fuel production costs. Therefore, we encourage you to try our new tool,” said Torben Nørgaard.

With the Fuel Cost Calculator Tool, you will be able to calculate the bottom-up production cost of sustainable fuels and benchmark them against fossil fuels.

You can access the Fuel Cost Calculator by clicking here.