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PGT: Why will so many ships not have scrubbers on time for IMO 2020?

Scrubber technology firm explains why a third of global order book will not be completed by 1 January 2020.

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Scrubber technology firm Pacific Green Technologies (PGT) on Monday (9 December) published the following article explaining to the shipping industry reasons for the current capacity shortfall in scrubber production:

We are just weeks away from the end of 2019 or, more importantly for the shipping industry, the first day of 2020. On 1 January the IMO’s new emissions regulations come into effect, limiting the sulphur content of marine fuels.

The last 12 months have seen a frenzy of conjecture, debate and big decisions as shipowners have considered their IMO 2020 compliance options.

As predicted, many have chosen to sail into 2020 with engines burning low sulphur fuel oil (LSFO) – variations of higher-cost fuel that comply with the IMO’s new standard of 0.5% or lower sulphur content.

A surprise to some, but not to those in the scrubber industry, has been the recent explosion in demand for exhaust gas cleaning systems.

In May 2018, DNV GL reported that the number of vessels with scrubbers installed or on order was 817. At the time this represented a 50% jump within only a few months.

By October 2018 there were 1,300 ships with confirmed scrubber projects.

In June of this year, DNV GL found that number had climbed to 2,947 – more than a one hundred percent increase in less than a year. Latest figures show 3,756 ships with scrubbers in service or on order.

By the time IMO 2020 takes effect, there should be close to 4,000 vessels with scrubbers installed. But this will not be the case. As Lloyd’s List has reported, up to 1,000 scrubber orders – almost a third of the global order book – will not be completed by 1 January 2020.

And, in some cases, the lead time on new orders is 40 to 50 weeks.

What are the reasons for the shortfall?

Underestimating the scale of the project
IMO 2020 is the most disruptive event in the shipping industry for decades. The potential cost impact to shipowners is dramatic, in some cases punitive. Choosing a compliance solution has been a major decision facing almost every owner in the market.

As a result, many have left the decision as late as possible. The exponential rise in scrubber orders reflects this. The closer we have moved to January 2020 the clearer the scrubber value proposition has become.

However, this late bloom in orders has put pressure on the supply side, partly because the complexity of the scrubber installation process is underestimated. Booking yard time is only one aspect of the process.

No two scrubber projects are the same. Careful planning is critical to ensure a positive outcome.

From the outset, factors that need to be considered include engine size and related exhaust gas flow, the vessel’s intended routes, scrubber type (which is itself dependent on a matrix of considerations like ports, ocean alkalinity and cost), cruising speed and vessel space.

Slow decision-making and sub-optimal planning have created delays in design, fabrication, and acquisition of parts and materials. These delays have resulted in, and exacerbated, shortages in parts and engineering capability, creating an industry bottleneck.

Working with the right scrubber supplier ensures that all necessary technical, planning and installation processes are expertly accounted for. Expectations can be properly managed when working with a specialist.

But choosing that specialist is increasingly challenging in the current market.

Don’t get this bit wrong
The scrubber market still has a strong leaning towards traditional buying. The three market leaders–Wartsila, Alfa Laval and Yara–are all Scandinavian and account for 75% of sales.

With these firms operating at full capacity, opportunities have opened up for smaller players to enter the market. This is good and bad news for buyers.

More choice should mean more competitive pricing and better quality.

However, the barriers to entry for scrubber manufacturing are low. Many companies can build the basic equipment. But can they consult on the many technical aspects of planning and implementation, and do they have the necessary production capacity to deliver on time?

In many cases the answer is no, which is why only a small number of outfits outside the big three are having a sustainable impact.

Critical to their trustworthiness are engineering know-how and reliable output. For example, Pacific Green Technologies is able to turn round an installation faster than most of its competitors.

Making this level of service possible was one of the key drivers in the company’s decision to partner with the major industrial conglomerate, PowerChina. To this large scale capability, PGT marries its extensive engineering background and patented technology – its ENVI-Marine scrubber is the most efficient and cost-effective on the market.

Choosing the right scrubber partner
The issue of scrubber backlog is not only short term. In all models presented by DNV GL to forecast the effects of world decarbonization by 2050, price favors HSFO with scrubbers.

Demand will not dry up when IMO 2020 is in place. Once the price of low sulphur fuels stabilizes in the market, we can expect new waves of scrubber orders.

For those shipowners who want to continue capitalizing on scrubbers’ benefits, it will be as necessary as ever to plan well and choose wisely. On this voyage, the right partner will be shipowners’ most valuable asset.

Photo credit: Manifold Times
Published: 12 December, 2019

 

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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Port & Regulatory

Study: Major drop in ship sulphur emissions confirmed following IMO regulations

National Centre for Atmospheric Science study found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following IMO’s 2020 regulation.

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Recent global regulations have significantly reduced sulphur emissions from ships, helping to improve air quality in coastal regions – confirmed by a recent international study led by researchers at the National Centre for Atmospheric Science. 

The research, published in Environmental Science: Atmospheres, used aircraft and ground-based instruments to measure sulphur dioxide and nitrogen oxides emitted by ships in the North-East Atlantic and European coastal waters between 2019 and 2023.

The team found that the average sulphur content in ship fuel dropped nearly tenfold in open ocean areas following the International Maritime Organization’s 2020 regulation, which capped sulphur content in marine fuel at 0.5%. 

Before the change, many ships exceeded the previous 3.5% limit. After 2020, only a small number of ships were found to breach the new standard.

In European sulphur Emission Control Areas (SECAs), such as the English Channel and the Port of Tyne, sulphur levels were even lower – well below the stricter 0.1% limit. Interestingly, ports outside these zones, like Valencia in Spain, also showed low sulphur levels, likely due to EU rules requiring cleaner fuel when ships are docked for extended periods.

This is the first study to use aircraft-based measurements and predictions from the Ship Traffic Emission Assessment Model (STEAM3) to assess ship emissions outside of sulphur control zones since the 2020 regulation came into effect. The findings support the widely held view that ships now emit around seven times less sulphur than before the rule change – an important step toward cleaner air and healthier coastal environments.

Note: The research, titled ‘SO2 and NOx emissions from ships in North-East Atlantic waters: in situ measurements and comparison with an emission model’ can be found here. 

 

Photo credit: shraga kopstein on Unsplash
Published: 8 December, 2025

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Interview

IBIA Annual Convention 2025: ‘Exciting times’ for post IMO 2020 bunker suppliers, states Equatorial

Choong Sheen Mao, Chief Operating Officer, Equatorial, describes to Manifold Times the pre/post IMO 2020 challenges and evolution of bunker suppliers.

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The International Bunkering Industry Association (IBIA) will be hosting its flagship Annual Convention in Hong Kong at the Hong Kong Convention Exhibition & Convention Centre between 18 to 20 November 2025, as part of Hong Kong Maritime Week.

Choong Sheen Mao, Chief Operating Officer, Equatorial Marine Fuel Management Services (Equatorial), speaks to bunkering publication Manifold Times about the challenges of a post IMO 2020 bunker supplier.

MT: How does Equatorial continue to offer customer assurance and maintenance of marine fuel quality to ISO8217 standards despite increasing complexity of bunker fuel blends?

We maintain our focus to provide compliant, quality and competitively priced products to our customers. There is no shortcut. We source our products from a wide range of cargo producers and suppliers. We continue to be strict and vigilant with our testing programme for our products before delivering them to our customers. Equatorial has deepened our engagement with the wider industry to have a better and up-to-date understanding of the existing and new marine fuels.

MT: Can you share the evolution of commercial marine fuel procurement, blending and trading strategies on the back of increasing fuel types (pre/post IMO 2020)?

Pre IMO 2020, the main types of marine fuel procured and consumed by vessels were high-sulphur fuel oil, marine diesel oil and marine gas oil. Trading strategies were therefore closely linked to that within the oil industry.

However, many of the new fuel types are from other industries. For example, biofuels, methanol and ammonia are mainly products from the chemical and agriculture industries. There are marked differences between these industries and the energy industry (in particular, the marine fuels industry). LNG is from the gas industry which is distinct from the oil industry.

Without an existing liquid paper market for many of these commodities (especially as a marine fuel), the price risk management is less straightforward. Furthermore, commodity prices are no longer the sole consideration for price itself. The price of compliance must be considered. This could range from guaranteeing the origin of the marine fuel, its sulphur properties as well as its carbon intensity. The list goes on.

MT: Operational wise, what are the changing role and responsibilities of a bunker supplier to date, compared to before IMO 2020?

The role and responsibility of a bunker supplier have evolved. Fundamentally, it has been about providing quality marine fuels at competitive prices. Quantity assurance has been a critical concern which led to the mandatory implementation of the mass flow meter system for bunkering in the Port of Singapore. Interestingly, due to the nature of credit terms in the bunker industry, bunker suppliers also performed the role of “bankers” by extending favourable credit terms to shipowners and charterers.

These days, post IMO 2020, things have become even more complicated. Today, a bunker supplier retains the abovementioned roles and responsibilities, and much more – it has to ensure compliance with a plethora of rules and regulations. Compliance not only with sulphur cap requirements, but with international and regional sanctions and restrictions unrelated to the quality of the marine fuel itself. In fact, especially with alternative low- and zero-carbon marine fuels, this means compliance with standards, rules and regulations on sustainability such as the European Renewable Energy Directive and/or International Sustainability and Carbon Certification. There is also the need to comply with increasingly stringent safety regulations on both conventional and alternative marine fuels.

In addition to the above, a post IMO 2020 bunker supplier is still expected to supply compliant and quality fuel at competitive prices.

MT: Equatorial is Singapore’s largest local-born supplier; what is the next big thing for the company?

Equatorial continues to adapt and improve with the times, while maintaining its core values – Integrity, Teamwork, Commitment, Proficiency and Quality, and Safety and Environment. The bunker industry is a highly competitive one, and it is our intention to keep our competitive edge and remain relevant. This means that we have had to step out of our comfort zone and embrace the two mega trends of our time – digitalisation and decarbonisation.

We have been early adopters and developers of the electronic bunkering note as part of our own digital bunkering efforts. We have diversified our product offering to include low carbon marine fuels and are proud to be one of the pioneers for bunkering B100 biofuels earlier this year. This was made possible by the arrival of our IMO Type II chemical and oil bunker tankers. These same bunker tankers are also capable for carrying and delivering methanol. Equatorial has invested in an LNG bunkering vessel (LBV) newbuilding that is set to be delivered in Q3 2027. We are also involved in a study to develop low- or zero-carbon ammonia bunkering in Singapore.

These are exciting times.

Note: Choong Sheen Mao is amongst panellists featured in ‘Session Three: Bunker Sellers Panel’ at the IBIA Annual Convention 2025.

Join the Conversation

With over 300 delegates expected, the IBIA Annual Convention 2025 is set to be a defining moment for the marine fuels industry. Registration is now open via the IBIA Annual Convention website.

 

Photo credit: Manifold Times
Published: 31 October 2025

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