Stena Bulk has made a major investment in scrubbers and before January 2020 16 units will be installed. 10 IMOIIMAXes, 5 suezmaxes and one of standard MR will be equipped with the after-treatment system. The total investment is worth US$55 million, including equipment, installation and time out of service. Payback time of investment is between 1.5 and 2.5 years which has already been secured by hedging the fuel spread.
By installing scrubbers onboard, Stena Bulk will comply with the upcoming IMO sulfur cap regulation, which limit the sulfur content in fuel oil used on board vessels globally to a maximum of 0.5% from today´s 3.5% limit, coming in place January 2020. As a result of the new regulation, the global shipping fleet will by 1 January 2020 be required to either install scrubbers on board or to use a compliant fuel with the maximum sulfur content of 0.50% (outside Emission Control Areas (ECAs)).
The fuel availability around the globe, to a degree a given one, has now become a concern to many.
“We evaluated the different options and came to the conclusion that for our business by installing scrubbers we will secure greater availability of fuel for our vessels and by so limit our exposure to not finding the right fuel around the world and by that stay flexible in our trading. Even doing so we know it will require some changes and probably massive challenges in the planning logistically. We will however prepare ourselves best possible so that we can secure at least the same level of support to our customers as today”, says President & CEO Erik Hånell.
The scrubber to be installed is an Open Loop Hybrid Ready with Water Cleaning, which not only removes the sulfur but also particles from the exhaust.
In addition to the equipment, the company now installs the most important part to make all work is of course the people working with this. Over the last 24 months, Stena Bulk prepared the company's business teams to assure minimal-to-no disruption caused by the scenario we are now facing as from 1 January 2020. Going forward, the company's digital platform, Orbit, one of many tools will be able to confirm global supply to optimise the planning in the company's bunker operations, as a support to Commercial Operation, Bunker trading and Chartering.
Stena Bulk is well prepared for the IMO2020 sulfur regulation and implementation of what is needed to always fully comply with the new rules.
Read the article online at: https://www.drybulkmagazine.com/shipping/19032019/stena-bulk-to-install-scrubbers-on-16-vessels/