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DHT Holdings expects ‘super-profit’ from scrubber-equipped VLCCs

Company spending $55 million to install Alfa Laval scrubbers on 12 VLCCs by 2019.

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The use of exhaust gas cleaning systems, also known as scrubbers, on VLCCs owned by New York-listed independent crude oil tanker company DHT Holdings may offer the firm “super profit” during operations, believes Co-CEO Svein Moxnes Harfjeld.

“The ships, once with fitted with scrubbers, will potentially create a super-profit through their ability to consume regular heavy fuel oil versus compliant fuels that are expected to be priced at a meaningful payment,” he told investors during a Wednesday conference call, as quoted by Seeking Alpha.

“You should note that the well-established scrubber suppliers have increasingly committed to their capacity to deliver in 2019,” he adds.

“Hence, we are pleased with the timely project that we have put in place.”

DHT Holdings in July entered into a $55 million agreement to install exhaust gas cleaning systems, also known as scrubbers, on 12 of its VLCCs.

The company entered into agreement with Alfa Laval to supply the systems and has also secured shipyard capacity to install all systems within 2019.

These 12 systems will come in addition to the two systems being installed on the newbuildings DHT Bronco, delivered in July 2018, and DHT Mustang set for delivery from Hyundai Heavy Industries in Q3 2018.

Harfjeld, during an earnings call in Q1 2018, described scrubbers as not a ‘long term solution’.

Related: DHT Holdings: Scrubbers not ‘long-term solution’

Photo credit: EGCSA
Published: 10 July, 2018

 

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Port & Regulatory

MPA informs Singapore shipping community of resolutions adopted at MEPC 82

MEPC 82 was held from 30 September 2024 to 04 October 2024; MPA urges the shipping community to prepare for the implementation of the resolutions.

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The Maritime and Port Authority of Singapore (MPA) on Saturday (28 December) issued Shipping Circular No. 18 of 2024 informing shipowners, ship managers, operators, agents and masters of Singapore-registered ships of resolutions adopted at 82nd session of the Marine Environment Protection Committee (MEPC 82).

MEPC 82 was held from 30 September 2024 to 04 October 2024; MPA urges the shipping community to prepare for the implementation of these resolutions:

Resolution MEPC.392(82) – Amendments to MARPOL Annex VI (Designation of the Canadian Arctic and the Norwegian Sea as Emission Control Areas for Nitrogen Oxides, Sulphur Oxides and
Particulate Matter, as appropriate).

This resolution adopts amendments to the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocols of 1978 and 1997 relating thereto (MARPOL), Annex VI, to designate the Canadian Arctic and the Norwegian Sea as Emission Control Areas (ECA)
for Nitrogen Oxides, Sulphur Oxides and Particulate Matter. The amendments will enter into force on 01 March 2026 and will be given effect through amendments to the Prevention of Pollution of the Sea (Air Pollution) Regulations 2022.

The Canadian Arctic ECA will be applicable to ships constructed on or after 01 January 2025, while the Norwegian Sea ECA will be applicable to ships constructed on or after 01 March 2026, including a “three dates criteria” of date of building contract; keel laying date; and delivery date, to be reflected
as amendments to the Supplement to International Air Pollution Prevention Certificate (IAPP Certificate).

Resolution MEPC.393(82) – Guidance On Best Practice On Recommendatory Goal-Based Control Measures To Reduce The Impact On The Arctic Of Black Carbon Emissions From International
Shipping

This resolution adopts Guidance on best practice on recommendatory goal-based control measures to reduce the impact on the Arctic of Black Carbon emissions from international shipping. It is intended to assist ship operators/companies in their efforts to reduce Black Carbon emissions from
their ships operating in or near the Arctic in measurable and concrete ways.

Resolution MEPC.394(82) – Guidelines On Recommendatory Black Carbon Emission Measurement, Monitoring And Reporting

This resolution adopts Guidelines on recommendatory Black Carbon emission measurement, monitoring and reporting. It specifies recommendations for the measurement, monitoring and reporting of Black Carbon emissions data from marine diesel engines or exhaust gas treatment
systems, in combination or individually, to enhance development of recommendations and regulations to reduce the impact on the Arctic of Black Carbon emissions.

Resolution MEPC.395(82) – 2024 Guidelines For The Development Of A Ship Energy Efficiency Management Plan (SEEMP)

This resolution adopts the 2024 Guidelines for the development of a SEEMP to have a more consistent methodology for fuel oil reporting, taking into account the data collected in the IMO Ship Fuel Oil Consumption Database (IMO DCS) thus far. This resolution revokes Resolution MEPC.346(78).

Resolution MEPC.396(82) – Designation Of The Nusa Penida Islands And Gili Matra Islands In Lombok Strait As A Particularly Sensitive Sea Area (PSSA)

This resolution designates the Nusa Penida Islands and Gili Matra Islands in Lombok Strait as a PSSA, with the Associated Protective Measures (APMs) being the previously established Traffic Separation Scheme (TSS) which entered into force on 01 July 2019.

Editor’s note: The full Shipping Circular No. 18 of 2024 document may be obtained from MPA’s official website here.

 

Photo credit: Manifold Times
Published: 30 December 2024

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Port & Regulatory

Philippines to mandate 0.50% sulphur cap for domestic shipping industry in 2025

Domestic shipping firms may extend the compliance deadline based on the Ship-specific implementation Plan timelines, but not exceeding five years.

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MARINE IMO 2020 advisory

The Maritime Industry Authority (MARINA) of the Republic of the Philippines will be implementing a 0.50% sulphur cap for bunker fuel consumed by the country’s domestic shipping industry effective 1 January 2025, it said.

MARINA Advisory No. 2024-35, published on 22 October 2024, provided supplemental guidelines on the implementation, monitoring and enforcement of MARINA Circular No. SR-2020-06 “Rules and Regulations on the Mandatory Use of 0.50% M/M Sulphur Limit on Fuel Oil for all Philippine Registered Ships in Compliance to Annex VI of MARPOL 73/78, as amended”.

MARINA MC No. SR2020-06 specifically covers ships which are utilising heavy sulphur fuel oil and are therefore mandated to shift to fuel oil with low sulphur content of .50% in/in or below, effective 01 January 2025, noted the advisory.

Ships which are already using Distillates (MGO, MDO, IDO) or bIends may shift to fuel oil with .50% mass/mass sulphur content and are required to accomplish a Ship-specific implementation Plan (SIP) to be attached to the Ship's SMS Manual.

The Administration, meanwhile, noted domestic shipping firms may extend the compliance deadline based on the SIP timelines as verified by MARINA, but not to exceed five (5) years.

No extension of deadline shall be allowed if there is no SIP submitted by 01 July 2024.

Editor’s note: The complete MARINA Advisory No. 2024-35 document may be obtained from the official MARINE website here.

 

Photo credit: Maritime Industry Authority
Published: 30 December 2024

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Port & Regulatory

Singapore: MPA revises Maritime Singapore Green Initiative to align with IMO targets

Existing incentives for harbour craft under GPP will be subsumed under a new Green Craft Programme (GCP).

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RESIZED MPA stock photo, Singapore flag

The Maritime and Port Authority of Singapore (MPA) on Tuesday (24 December) revised the Maritime Singapore Green Initiative (MSGI) to better align with the targets established by the
International Maritime Organization (IMO).

Under the revised MSGI, with effect from 1 January 2025, the current Green Port Programme (GPP) will be integrated under the enhanced Green Ship Programme (GSP) – Green Port. The existing incentives for harbour craft under GPP will be subsumed under a new Green Craft Programme (GCP).

[For Ocean-Going Vessels] Key Enhancements to the GSP – Green Port

The enhanced GSP - Green Port will continue to incentivise ocean-going vessels calling at the Port of Singapore for port stays of 4 days or less – with vessels meeting either of the following criteria:

  1. Use of zero-emission fuel/technology (e.g. hydrogen, full electrification,
    hybrid of hydrogen fuel cell and electrification etc.)

    Ocean-going vessels that use zero-emission fuel/technologies as its primary fuel
    or propulsion means will enjoy 100% concession off the port dues for eligible vessel
    call.
  2. Use of zero-carbon fuel (e.g. ammonia with pilot fuel capped at 25% with
    ammonia slip/NOx/N2O addressed, B100 biofuel, green methanol etc.)

    Ocean-going vessels that use zero-carbon fuels will enjoy 100% concession off the
    port dues for eligible vessel call.
  3. Use of low-carbon content fuels with CF value1 ≤ 1.375 (e.g. Methanol), or
    using LNG in engine with methane slip addressed to max 1%, or biofuels B50
    and above up to B99.

    Ocean-going vessels that use relevant low-carbon content fuel as its primary fuel
    will enjoy 30% concession off the port dues for eligible vessel call.
  4. Test Use of low carbon content fuels with 1.375 < CF value ≤ 2.750, e.g. LNG (in
    engine without methane slip addressed), or biofuels B24 and above up to
    B49.

    Ocean-going vessels that use relevant low-carbon content fuel as its primary fuel
    will enjoy 20% concession off the port dues for eligible vessel call.

To participate in the GSP - Green Port, shipowners or charterers should ensure that
their vessels are pre-registered under the GSP – Green Port via digitalPORT@SGTM prior to
arrival at the Port of Singapore.

Editor’s note: The full announcement may be obtained from the official MPA website under Port Marine Circular No. 13 of 2024 here.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 27 December 2024

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