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Engine - HFO vs LSMGO Cost Break-even

Contents

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Break-even bunker-price difference where HFO + scrubber becomes cheaper than LSMGO - the retrofit economics.

Formula

$$ \text{Saving} = \Delta p \cdot m_{fuel} - OPEX_{scrubber} $$

Symbol legend

SymbolMeaningUnitSource
$Δp$Bunker price spreadUSD/tbunker market

Sources

  • Platts Bunkerwire / S&P Global.