Alternative Fuels’ Techno-Economic and Environmental Impacts on Ship Energy Efficiency with Shaft Generator Integration

This study presents an integrated techno-economic and environmental assessment of shaft generator (SG) integration in marine propulsion systems using alternative fuels. A comprehensive numerical model is developed to simulate the operation of a bulk carrier equipped with a low-speed two-stroke main engine, comparing conventional diesel generator (DG) configurations with SG-powered alternatives under varying ship speeds and auxiliary electrical loads. Three fuel types, heavy fuel oil (HFO), fatty acid methyl esters (FAMEs), and methanol–diesel dual fuel, are analyzed to evaluate fuel consumption, exhaust emissions, and economic feasibility. The results show that SG integration consistently reduces total fuel consumption by 0.1–0.5 t/day, depending on load and fuel type, yielding annual savings of up to 150 tonnes per vessel. Carbon dioxide (CO2), Nitrogen oxide (NOx), and sulphur oxide (SOx) emissions decrease proportionally with increased SG load, with annual reductions exceeding 450 tonnes of CO2 and up to 15 tonnes of NOx for HFO systems. Methanol–diesel operation achieves the highest relative improvement, with up to 50% lower CO2 and near-zero SOx emissions, despite a moderate increase in total fuel mass due to methanol’s lower calorific value. Economically, SG utilization provides daily fuel cost savings ranging from $200 to $1050, depending on the fuel and load, leading to annual reductions of up to $320,000 for high-load operations. The investment analysis confirms the financial viability of SG installations, with net present values (NPVs) up to $1.4 million, internal rates of return (IRRs) exceeding 100%, and payback periods below one year at 600 kW load. The results highlight the dual benefit of SG technology, enhancing energy efficiency and supporting IMO decarbonization goals, particularly when coupled with low-carbon fuels such as methanol. The developed computational framework provides a practical decision-support tool for ship designers and operators to quantify SG performance, optimize energy management, and evaluate the long-term economic and environmental trade-offs of fuel transition pathways.