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Odfjell opts for 0.5% sulfur fuel

14 Sep 2018

Chemical tanker firm Odfjell said it will not invest in scrubbers to comply with IMO’s 2020 regulation, but will instead use 0.5% sulfur compliant fuel.

“Our conclusion for the moment is that it does not make sense for Odfjell (to install scrubbers),” Odfjell CEO Kristian Moerch said at an oil and offshore conference on Thursday, Reuters reported.

“First of all our fleet spends around 50% of its time in ports, then scrubbers are pointless, and the second part is that 60% of our revenues are covered by contracts with our customers and they have bunker adjustment clauses,” Moerch added.

The International Maritime Organization will cap sulfur content in bunker fuel at 0.5% from January 1, 2020, down from the current 3.5% now.

Shipowners can either install scrubbers, which clean the cheaper high sulphur fuel oil, or buy costlier distillate or ultra low sulfur fuel oil to comply with IMO's regulation.

Photo: Pixabay
Published: 14 September, 2018
 

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