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vessels, as the technology is new and many shipyards lack 
familiarity. To estimate the capital cost of vessels, KPFF 
conducted in-depth research on recent U.S. vessel builds 
and sought direct feedback from construction shipyards. 
The fleet-scale capital cost diverges significantly when the 
number of vessels and the charging/refueling infrastruc-
ture required to maintain operations is factored in. The 
graphic below shows the vessel and infrastructure require-
ment for each fleet type for the East River Route. 
Operating Costs
It is important to consider the cost of labor, ongoing main-
tenance, and fuel, and how those costs will change over the 
course a vessel’s usable life. 
FLEET OPERATING COSTS, 
FIRST YEAR OF OPERATION
BEV fleet
43.6% premium to diesel
FCEV fleet
49.2% premium to diesel
BEV fleet 
47.9% TCO premium
While diesel vessels appear more economical in the first 
year, modeling shows projected annual costs approach 
parity with FCEVs within 15 years, based on identical la-
bor costs, lower maintenance for FCEVs, and a hydrogen 
fuel cost curve defined by higher costs in the near-term 
and incremental cost reduction over time. KPFF’s model 
assumed no permanent bunkering infrastructure for the 
FCEV fleet. If on-site storage, higher-volume transporta-
tion, or even on-site hydrogen production were installed, 
fuel costs would be lower, and operating cost parity could 
be achieved much sooner.
Conversely, the higher number of vessels in operation and 
expected continued growth in electricity prices is projected 
to widen the operating cost gap between BEVs and diesels 
over the lifetime of the fleet.
Over 30 years, BEVs carry a 91.7 percent TCO premium to 
diesel; FCEVs, 29.7 percent. FCEV costs stem from vessel 
capital and fuel. BEV costs are driven by shoreside infra-
structure and operational constraints. The 47.9 percent 
FLEET OPERATING COST OVER TIME
 $-
 $5,000,000
 $10,000,000
 $15,000,000
 $20,000,000
 $25,000,000
 $30,000,000
 $35,000,000
 $40,000,000
 $45,000,000
1
2
3
4
5
6
7
8
9
10 11
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Year of operation
Diesel
FCEV
BEV

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