Strategic optimization of onboard carbon capture and storage for maritime supply chain management

Abstract

The shipping industry is essential to global supply chain management, acting as a fundamental driver of international commerce and economic growth. However, its significant carbon emissions pose a serious threat to the environment, exacerbating climate change and necessitating immediate action to reduce its environmental impact. In this context, Onboard Carbon Capture and Storage (OCCS) has emerged as a critical solution, providing an effective measure to lower emissions and support the transition toward green supply chain in shipping industry. Considering the interdependent decisions of ports and shipping companies, our research focuses on selecting ports and timing for carbon processing systems to maximize ports revenue, identifying vessels on specific routes for OCCS installation, and determining optimal ports for offloading captured carbon to minimize processing costs. To address these problems, we develop an integer programming model to optimize the decisions of both ports and shipping companies. Furthermore, to validate the model’s effectiveness, we conduct extensive numerical experiments and perform sensitivity analyses to evaluate how parameters related to carbon processing prices and costs, influence optimal decisions. Finally, we provide valuable insights for future research on OCCS optimization and scheduling in the maritime industry.