Mathematical framework for total cost of ownership analysis of marine electrical energy storage inspired by circular economy

The strongly growing uptake of lithium-ion batteries (LIBs) in transportation requires environmentally sustainable ways to treat spent batteries. Novel material circulation processes establish material flows which create significant business opportunities and new jobs and welfare. This paper develops a mathematical model for considering the circular economy in the life cycle costs in the maritime sector. Current articles and models do not quantify economic gains from the LIB circular economy, especially in the marine sector. An additional challenge is that the typical planned lifetime is 30 years which means that the battery energy storage of a ship needs to be retrofitted 1-3 times over the ship's lifetime. The analysis herein considers the cost evolution of ESS during the coming decades to estimate retrofit battery costs and re-use economics. The main finding of the study is that battery material circulation can be conducted in all phases over the lifetime of the marine application and clear revenue streams are identified. These are not only deceasing the costs for battery investment, but are also able to bring revenues, leading to commercially viable reuse of batteries. However, it is also concluded that material circulation requires more technological, procedural, and industrial innovations during the coming years.

Automated summary

This paper develops a mathematical model for considering the circular economy in the life cycle costs in the maritime sector. The main finding of the study is that battery material circulation can be conducted in all phases over the lifetime of the marine application and clear revenue streams are identified. However, it is also concluded that material circulation requires more technological, procedural, and industrial innovations during the coming years.