Falling cost of batteries boosts prospects for all-electric container shipping

International shipping, fueled by heavy fuel oil, is a major contributor to global CO2, SO2 and NOx emissions. Direct electrification of maritime vessels has been under-explored as a low-emission option despite its considerable efficiency advantage over electrofuels. Previous studies on ship electrification have relied on outdated assumptions about battery cost, energy density values, and space available on board. We show that at battery prices of US$100 kWh−1, electrification of intra-regional trade routes of less than 1,500 km is economical, with minimal impact on ship load capacity. The inclusion of environmental costs increases the economic range to 5,000 km. If the batteries reach a price of 50 USD kWh−1, the economic range almost doubles. We outline a pathway for battery electrification of container ships this decade that electrifies more than 40% of global container ship traffic, reduces CO2 emissions by 14% for US-based ships and mitigates the health effects of air pollution on coastal communities.

Transporting 11 billion tonnes per year, the shipping industry handles nearly 90% of global trade by mass1,2. The rapid growth of the industry has been supported by access to cheap, energy-dense heavy fuel oil (HFO). The shipping industry consumes 3.5 million barrels of low-grade HFO per year, produces 2.5% of total anthropogenic carbon dioxide equivalent (CO2e) emissions in 20182,3 and causes enormous damage from marine eutrophication and ecotoxicity, air pollution and the impacts of climate change4. By 2050, shipping emissions are expected to contribute up to 17% of global CO2e5 emissions,