Retrofit Payback

Simple payback and NPV for an energy-saving retrofit - WHR, air lubrication, wind assist, hull coating, battery hybrid. Inputs: capex, annual fuel saved, bunker price, discount rate and project horizon.

LifecycleEconomic

Project

Capital expenditureUSDAnnual extra opex (if any)USD/year

Saving

Fuel savedt/yearBunker priceUSD/tCO₂ avoidedt/yearUsed to value ETS/FuelEU avoided cost.Effective carbon price (ETS + FuelEU)USD/t

Financing

Project horizonyearsDiscount rate%

Annual cash saving: 655,000USD

Simple payback: 3.1years

NPV at discount rate: 2,600,446USD

Accept project

Changing the inputs requires JavaScript. The calculator above shows its default inputs and result. The formula, symbols, and regulatory sources are shown in the Formula section below.

Formula, assumptions, and limits

\text{Saving}_\text{annual} = F_\text{saved} \cdot P_\text{fuel} + C_\text{avoided} \cdot P_\text{carbon} - \text{Opex}

Symbol	Meaning	Unit
$Capex$	Up-front capital cost	USD
$Opex$	Incremental annual operating cost	USD / year
$F_\text{saved}$	Fuel saved	t / year
$P_\text{fuel}$	Bunker price	USD / t
$C_\text{avoided}$	CO₂ avoided (subject to carbon price)	t / year
$P_\text{carbon}$	Effective EUA + FuelEU carbon price	USD / t
$r$	Discount rate	fraction
$N$	Project horizon	years

Source: Stopford - *Maritime Economics* (investment appraisal chapter); IMO Global MTCC Network - energy-efficient technology finance guidance

In short

Simple payback and NPV for an energy-saving ship retrofit including bunker and carbon-price savings.

Learn the theory Ship Finance and Asset Valuation