Shipping company Scorpio Tankers expects 62 of its vessels to be fitted with emissions-cleaning scrubber systems in time for the International Maritime Organization’s lower marine fuel sulfur limit from the start of 2020.
The New York-listed firm expects 25 of its MR tankers, seven LR1s and 30 LR2s to have the systems fitted by the end of 2019, the company said late Tuesday. In total, the company owns or leases 109 refined product tankers.
When the IMO’s sulfur limit drops to 0.5% from 3.5% at the start of next year, ships with scrubbers will be able to continue burning fuel oil rather than switching to cleaner, more expensive alternatives. The systems work by spraying water into the vessel’s exhaust to remove sulfur.
Scorpio plans to fit scrubbers to 75 of its ships in total, the company said. It expects to pay $1.5 million-$2.5 million per vessel, with 60%-70% of these costs being financed from external sources.
At a price spread of $250/mt between high sulfur fuel oil and 0.1% sulfur marine gasoil, Scorpio expects to save about $1.53 million per year for each of its LR2 vessels with scrubbers, $1.27 million for each LR1 and $1.14 million for its MR tankers. At a $200/mt spread it expects to save $1.22 million/year for the LR2s, $1.02 million for the LR1s and $908,400 for the MRs.
S&P Global Platts Analytics forecasts a total of 2,200 ships will have scrubbers fitted by the start of 2020, collectively consuming 550,000 b/d of fuel oil.
Source: Hellenic Shipping News.