EDITORIAL COMMENT Decisive shift to


scrubber option augurs well for repair yards


Reducing sulphur emissions in line with the cap will require a substantial investment in scrubber systems


tional shipping must be capped at 0.5%, compared with. 3.5% at present. Tere are, broadly speaking,


T two ways that


shipping companies can comply. One is to use low sulphur content fuels; the other is to install exhaust gas cleaning systems, or scrubbers. In recent months there have been


signs of a decisive shiſt amongst leading shipping companies towards the scrubber option. Indeed, a group comprising many prominent passenger and cargo shipping companies, including Cargill, Carnival Corporation,


he IMO requires that from 1 January 2020 the sulphur content in fuels used for interna-


Lauro, chairman and chief executive, commented: “We have long maintained that scrubbers could be the right choice for compliance with the IMO 2020 regulations. Having cautiously and patiently evaluated various risks associ- ated with this disruptive change to our industry, we are now confident that substantial savings can be realised and that with this investment in our vessels our fleet will remain the most competi- tive in our marketplace.”


Frontline, Grimaldi,


Navig8, Oldendorff Carriers, Spliethoff, Star Bulk Carriers, Torm and Trafigura, have formed the Clean Shipping Alliance (CSA). Its declared aim is to promote the benefits of scrubbers, believing that this technology will make a substantial differ- ence to the port and ocean environments in which their ships will operate. The support of these shipowners


seems likely to tip the balance towards scrubber installations as the preferred industry option, and heralds a sustained programme of investment in scrubber retrofits not just by CSA member companies, but by others worldwide. Certainly the scale of retrofit contracts


has picked up significantly over the past few months, particularly in the bulk carrier market. Scorpio Bulkers has, for example, agreed to install scrubbers on the majority of its owned and finance leased Kamsarmax and Ultramax vessels, of which it has over 50 in its fleet, between the second quarter of 2019 and the third quarter of 2020. Emanuele


Shiprepair & Maintenance 4th Quarter 2018


“There is only limited capacity available, and all the signs are that there will be a last minute rush”


Similarly another bulk carrier


operator, Genco Shipping & Trading, has confirmed that it plans to install scrubbers on 17 Capesize vessels, with options to also retrofit the technology on 15 smaller bulkers. The company aims to complete the installation process before the end of 2019 and believes that the retrofits will have a very attractive payback period. Stena Bulk has also signed an exhaust


gas treatment systems deal to fit 15 of its vessels, with an option for six more, prior to January 2020. The company has entered an agreement with Bluesoul of China, and will install an open loop hybrid ready technology, with water cleaning, which removes both sulphur


and particulate matter from the exhaust. Analysis by DNV GL indicates that


over the past 6 months orders have been placed for over 1,000 scrubber systems, the majority of which are for retrofits. Bulk carriers account for around 38% of these orders, tankers 20% and container- ships 14%. Tere has also been a strong uptake amongst operators of cruise ships and ferries. Time is however a limiting factor and


DNV GL has highlighted the complexity of managing the large scale retrofitting of a fleet of ships. For owners still undecided the classification society is advocat- ing urgency, suggesting: “Scrubbers can significantly mitigate the cost impact of the 2020 sulphur cap and the decision to invest should be made yesterday.” Scrubber retrofits are likely to prove a


welcome bonus for the shiprepair sector, as well as specialist equipment suppliers and installers over the next year or so. But there is only limited capacity available, and all the signs are that there will be a last minute ‘rush’ to fit this technology prior to the compliance deadline. Drydock space is likely to be a key constraining factor within the supply chain. Some shipowner groups are mounting


a last minute effort to delay the deadline, but at


the time of writing they seem


unlikely to be successful. Shipyards can therefore proceed with some certainty that this is not going to be kicked down the road; and that these investment opportunities are real and not hypotheti- cal. However, those that are not fully ready to take on this work need to take urgent action. Otherwise the chance to supplement regular repair work with this high-value retrofit activity will be lost. SR


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