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Hyundai Merchant Marine raises $140 million for scrubber retrofits

25 Mar 2019

Hyundai Merchant Marine (HMM) on Thursday (21 March) announced it has signed a memorandum of understanding (MOU) to establish win-win fund for scrubber installations in preparation for IMO 2020.

The total investment amount will be KRW 153.3 billion (US $140 million); HMM has provided KRW 46 billion, Korea Ocean Business Corporation KRW 62.3 billion, and the five companies Hyundai Corporation, SK Trading International, Hyundai Global Service, DSEC, and PANASIA a combined KRW 45 billion.

Under the arrangement, the five firms will get “first priority” for contract negotiations for long-term fuel supply, supply of scrubber equipment, and scrubber installation etc.

HMM plans to complete the scrubber installation on its currently operated 19 containerships by the first half of 2020.

“As the IMO’s new environmental regulation is expected to impose a heavy burden on shipowners, carriers not properly prepared for the IMO 2020 will be in a huge trouble,” said a HMM official.

“Thus, HMM will fully prepare for the IMO 2020 during the remaining period and will take this regulation an opportunity for a quantum leap.”

Two 11,000 TEU containerships, HMM PROMISE and HMM BLESSING which were delivered to HMM last August from Hanjin Heavy Industries & Construction are the world’s first commercially operating mega container vessels of more than 11,000 TEUs equipped with large scrubber systems.

HMM’s five 300,000 dwt VLCCs starting delivery from January 2019, are also retrofitted with scrubber systems to respond to the IMO 2020 regulations.

In addition, HMM plans to install scrubbers on the newly ordered twenty eco-friendly mega containerships, including twelve 23,000 TEU vessels which are expected for delivery in the second quarter of 2020.

Photo credit: Hyundai Merchant Marine
Published: 25 March, 2019

 

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