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Pacific Green Technology contests claims on declining scrubber demand

Scrubber technology firm explains why 2020 will see a second wave in scrubber orders when shippers seek solutions to the ‘headaches’ of compliant fuel.

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Scrubber technology firm Pacific Green Technologies (PGT) on Friday (31 January) published the following article outlining reasons why 2020 will experience a second wave of scrubber orders:

It’s January 2020 and the votes are in. By now, every ship owner has made a decision about complying with the IMO’s new 0.5% sulphur fuel limit that took effect on 1 January 2020.

By the end of 2019, approximately 14% of the world’s fleet had been fitted with scrubbers. By the end of 2020 that figure is expected to be 19%.

Some believe that will be the end of a steep demand curve for exhaust gas cleaning systems as supply and demand of LSFO stabilises.

Not so.

Though scrubber orders for IMO 2020 compliance are likely to start slowing at some point in the new year, they will be matched by a new wave of orders by shipowners looking for solutions to the headaches of low sulphur fuel.

Not as easy as it seems

Though a small number of shipowners have opted for LNG-propulsion as their IMO 2020 compliance solution, most of the world’s fleet have opted to switch to low sulphur fuel oil (LSFO).

This may sound like a simple transition, but there are many hidden challenges.

Most of the debate around this choice has focused on the anticipated price differentials of HSFO and LSFO, acknowledging that LSFO will probably make for much more expensive shipping in the short to medium term.

However, insufficient attention seems to have been paid to the inherent operational and engineering risks of switching to LSFO.

This is especially true of shipowners who left their compliance decisions as late as possible. By making a call late in the game they are potentially unprepared for the technical difficulties of suddenly running a ship on a different fuel.

Switching from HSFO to LSFO requires shipowners and operators to plan for several potential issues:

Viscosity and lubricity

HSFO and LSFO differ significantly in terms of viscosity, with residual fuel and MGO, for example, exhibiting a density difference of approximately 8%.

HSFO-capable engine equipment generally requires a relatively high fuel viscosity, 10-20 centistokes (cSt). Low sulphur distillate fuels have a much lower viscosity, usually within 2-11 cSt.

If viscosity is too low, the moving components of the injection equipment will lack sufficient lubrication. The resulting damage could include fuel pump seizures and increased leakage in fuel pumps, engine-mounted pumps, and fuel handling pumps.

Viscosity and lubricity are closely connected. Sulphur is used to increase the lubricity of fuel; low sulphur fuels could provide ship’s engines with insufficient lubrication for components such as the pump plunger.

However, as engine manufacturers MAN point out, the opposite problem is also a risk: compensating with over-lubrication is a regular and damaging occurrence.

Cylinder lubrication-acidity

The alkalinity of cylinder oils usually neutralises harmfully corrosive sulphur in ships’ fuel.

However, when a fuel’s sulphur content decreases, it produces less acidic sulphur. This can lead to a relative increase in the alkalinity of the cylinder lubricant and excessive engine wear or even damage.

Steps can be taken to mitigate this risk, but for shipowners moving over to LSFO it is one of many considerations to be managed.

Cat fines

Catalytic (cat) fines have been a problem in marine engines ever since they were used to extract a higher yield of distillate fuels from feedstock.

These hard ceramic compounds often end up in low sulphur fuel oils and cause damage to engine components, especially cylinder liners and piston rings.

Under the IMO’s new sulphur regulations, increased use of LSFO and a potentially greater variance in local fuel blends means cat fines could become a more serious problem than ever anticipated.

As with cylinder lubrication-acidity, shipowners can take steps to reduce the potential for cat fine-related wear and tear, but this relies on effective planning and good onboard maintenance.

However, data suggests that crews are already failing to take the necessary steps to prevent cat fine damage. Shipowners relying on LSFO from 2020 and beyond cannot reasonably expect this problem to simply go away.

Cat fines in marine fuel may not exceed 60 parts per million (ppm). However, according to Alfa Laval, this limit is fundamentally a compromise – if it were set any lower, global supply of bunker oils could no longer be secured.

Even at 60 ppm, cat fines pose a major problem for engines. Manufacturers, such as MAN and Wärtsilä, recommend that fuel entering the engines should have cat fine concentrations of 15 ppm or lower.

Shipowners switching from HSFO to LSFO in 2020 can expect ongoing issues with cat fines unless they are able to maintain strict and consistent operational controls, which is itself a perennial challenge.

Incompatibility

Sufficient supply of compliant fuels after IMO 2020 has been a lingering concern for some time. These fears have been partly allayed by various suppliers promising to produce low sulphur fuels from a broad range of sources and methods.

Unfortunately, though, these fuels will not necessarily be compatible with each other. And inadvertently mixing fuels could be disastrous.

Beyond these dangers, there is also an economic risk to shipowners who may struggle to secure a predictable supply of compatible fuel across multiple global ports.

Fuel incompatibility could be one of the most significant issues to come back and bite owners who have chosen to rely on LSFO for regulatory compliance.

Scrubbers: more than compliance

While scrubbers have seen an unprecedented surge in demand over the last 18 months due to their benefits in IMO 2020 compliance, the next 18 months are likely to highlight their many other benefits.

These include better operational efficiency and reliability, as well as ongoing cost-saving advantages.

It is for these reasons that MAN engineers insist that scrubbers are the better engineering solution.

They offer shipowners full fuel flexibility and eliminate concerns of new blended fuel qualities and compatibility issues. And, rather than impacting the inner workings of ships’ engines, scrubbers can be fitted or retrofitted to almost any engine.

Over time the industry may be surprised to find that the second wave of scrubber demand will not be based on the need to comply with IMO 2020.

It will happen because scrubbers make more economic, mechanical and operational sense, especially to shipowners who can no longer justify the downtime and engine trouble associated with low sulphur fuel oils.


Source
: Pacific Green Technologies
Published: 5 February, 2020

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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