6. ECONOMIC EVALUATION OF MH SYSTEMS' BALLAST WATER TREATMENT SYSTEM
    FOR A 300,000 DWT TANKER
In making an economic evaluation, the analysis methodology described in Mackey et al. (2000) was used. This method states, "a logical basis for economic comparisons would be a change in Required Freight Rate (RFR)." Since there would be no change in cargo capacity, then:
 
Mackey et al. (2000) stated that the economic payback period for conversions is typically 5 years.

The Authors selected a 300,000 DWT tanker for analysis. As stated earlier, a ballast water treatment system applicable
Table 3.
[click image to enlarge]
for ships must have the capacity for treating huge quantities of ballast water. If a system is practical and economical for treating a ship with 8 ballast tanks of 110,823 cubic meters, then it is practical for all ship types. The economics would have to be assessed for ships of other, smaller ballast capacity, as the economics might not scale. But obviously, the effectiveness as well as the practicality of the system would be established.

Table 3 lists the principal parts and materials in the ballast water treatment system together with estimated prices and labor costs.

The total cost is approximately $3,057,100. All tankers already have some type of inert gas generating capability. The newer tankers have generators with a gas mixture discharge similar to the mix used in the experiments at Scripps. Nevertheless, for conservatism, the generator has been included in the cost. Similarly tankers probably have sufficient excess electrical capacity to supply the load of this equipment - the compressors and blower. This is especially true since this is on the return trip in ballast and the machinery will only run about 48 hours each trip. Nevertheless, again for extreme conservation, a 300 KW generator has been included.

To make a usefully indicative estimate of operating costs, the following assumptions were made:
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The tanker will operate to 360 days per year.
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Six (6) voyages per year between Persian Gulf and USA.
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Half of the voyages are return trips in ballast, or 6 trips a year.
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Assume the 2 compressors and blower must operate 48 hours to obtain hypoxia and carbonation in all 8 tanks (note that actually the cfm of both compressors is only required for tanks B3 port and starboard and B6 port and starboard.
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Operating costs are primarily the fuel costs for the inert gas generator and the 300 KW generator.
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n is 5 years (economic payback period) and i (interest rate) is 8%.
If the gas and electric generators operate 48 hours for each of 6 voyages, then the total operating time is 288 hours per year for each generator. About 6,000 gallons of diesel fuel would be consumed by the electric generator and for the gas generator about 16,500 gallons. This is a total of 22,500 gallons. At a cost $1.25 per gallon, the yearly operating cost will be about $28,125. Considering the few hours per year that the machinery operates and the fact that the ship has no cargo and therefore less requirements of the crew, minimal cost has been allocated for maintenance.

Therefore:
 
In estimating the cost of treatment per ton of ballast water, the estimated annual operating costs of $28,125 is used. The approximate 4 million cubic feet of ballast is 128,000 tons. Six trips are made in ballast, which is a total of 768,000 tons treated. Therefore, cost of ballast water treatment is 3.7 cents per ton.
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