Independent repair specialist Goltens expects a surge of scrubber installations to take place due to the upcoming IMO 2020 regulation, when a global sulphur cap of 0.5% will be applied for marine fuel from March 2020.
“When emissions regulations are applied globally, the investment in exhaust cleaning will make more sense to many operators,” believes Goltens COO Roy Strand.
“There will be more customers who choose to invest in scrubber technologies due to the clear payback.”
He suggests that scrubber retrofits have started slow, but momentum is building up.
“Prior to 2018, Goltens Green Technologies had been involved in many emissions control projects evaluating the retrofit of scrubbers, but most of these projects involved cruise and ferry operators and other vessels that spend large amounts of time in the ECAs,” notes Strand.
“For other operators, the retrofit projects involved lower cost piping system modifications and fuel oil cooler installations to allow vessels to periodically operate on LSGO as required.”
However, he has observed a major uptick in interest since the beginning of 2018, with a much broader range of companies actually pushing to retrofit with scrubbers.
“This has resulted in longer lead times for scrubber delivery and increasing competition for the attention of some of the leading scrubber manufacturers. That said, it still does not appear to be the decision most owners are making.”
The IMO 2020 report from Swedish financial group Skandinaviska Enskilda Banken AB (SEB) estimated fewer than 2,000 vessels will have been fitted with scrubbers by the implementation date, and further project a significant price delta between LSGO and HFO providing scrubber-equipped vessels with a significant short-term advantage post 2020.
The SEB report highlights this “wait and see” approach is compounded by the fact that owners pay for scrubbers (CAPEX) and charterers pay for fuel (OPEX), and that if most vessels are operating without scrubbers, the market prices will largely be set by those vessels factoring in higher fuel costs without a competitive disadvantage.
The analysis further highlights those moving to install scrubbers now will be at a competitive advantage compared to their non-scrubber counterparts in the first few years after the implementation.
These first movers will likely be able to charge significant “freight rate premiums” to account for the savings on fuel associated with operating the vessel. These premiums are projected to allow for a quick payback on the initial investment as others move more gradually to scrubbers.
At that point, SEB contends that “it will be too profitable and too tempting not to install a scrubber in 2020”. Roy Strand concurs, but adds that the likely question for late adopters will be: “How long is the wait?”
Published: 30 October, 2018
‘MFMs will continue to have a place within the bunkering sector even when the shipping industry continues to adopt new types of marine fuels, such as LNG, biofuel, methanol, ammonia and hydrogen,’ states spokesman.
Current ISO 8217 bunker fuel standard not comprehensive enough for biofuels; National Mirror Committee working with local players to develop more comprehensive biofuels standard for Singapore, says Capt. Rahul.
‘There are some important differences between VLSFO and biofuels, and as a result, parties should consider whether additional changes should be made to biofuel bunker contracts,’ says Paul Collier.
Quek Rong Hong first joined Shell sometime in 2005 and had held the position of Blending Specialist from November 2017. At the time of arrest, his monthly basic salary was about SGD 4,300, showed documents.
Glencore previously commenced Singapore International Arbitration Centre Emergency Applications against Straits Pinnacle but those applications were dismissed, according to documents obtained by Manifold Times.
Captain Segar, MPA Assistant Chief Executive, Operations, to be also joining IBIA for the game where proceeds will be channelled into an IBIA Bursary Fund for supporting students to obtain a maritime studies degree.