Marine Alternative Fuel Pricing, Supply, and Demand

The International Maritime Organization low sulfur fuel rules and greenhouse gas-reduction strategy may create a significant perturbation to global refinery operations, impacting volumes and prices of marine fuel globally and within the United States and incentivizing the transition to alternative fuel use. The goals of this project are to (1) enhance understanding of how very low-sulfur fuel-primarily fuel oil and diesel-and low carbon fuel requirements and promising biofuel processes will affect the marine fuel supply chain; and (2) explore how these perturbations interact with and impact indicators such as pricing, number of trips, and demand behavior, along with the potential to meet low sulfur and carbon fuel demand with biofuel supply chains, (3) merge innovative thinking in the area of marine fuels within research centers of DOE (NREL) and the U.S. Department of Transportation (Volpe). These goals will be accomplished through the combination of detailed refinery, marine fuel burn, system dynamics, and geospatially explicit linear programming models.