More than 2000 vessels will get scrubbers before 2020

More than 2000 vessels will be installing scrubbers ahead of 2020, meaning demand for bunker with a high sulfur content will not decline as significantly as previously projected, reports Reuter.
Photo: Hyundai Merchant Marine
Photo: Hyundai Merchant Marine

As many as 2100 ships will install scrubbers in the months leading up to the turn of the year 2019/2020.

This is significantly higher than an earlier estimate of 1500 ships, Thomas Olney from energy consultancy FGE in Singapore tells Reuters.

The higher number of scrubbers means that demand for high sulfur marine fuel is likely to see a smaller decrease than previously expected by 2020, says FGE.

If scrubber installations continue over the next 18 months, and several major shipping companies get on board – such as Hapag-Lloyd's announcement last week that it was opting to use the technology – the consumption of high sulfur oil will climb to more than 800,000 barrels per day from 2020, according to FGE.

This is twice as many as previously expected by FGE, which projected between 300,000 and 400,000 barrels daily.

The argument from the carriers which have opted for scrubbers is that investments in scrubbers will quickly pay off with the savings companies achieve by being able to continue to use the high-sulfur fuel, which is estimated to be far cheaper than the low-sulfur fuel which ships without a scrubber installed will be required to sail on from Jan. 1, 2020.

English Edit: Lena Rutkowski

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