"Very Few" Scrubbers Installed So Far, But Likely to be a Strong Choice in the Future

Atkinson said scrubbers seem more popular for retrofits than LNG systems

Only 140 scrubbers have been ordered or installed worldwide in advance of new limits on sulfur emissions, representing a tiny portion of the potential market, according to a study by maritime consultant IHS.

The report considers the likely adoption of low-sulfur fuels, scrubber systems, and liquefied natural gas (LNG) fuel systems in advance of the 2015 reduction of the sulfur limit to 0.10 percent within Emissions Control Areas (ECAs) and the global drop to 0.5 percent in either 2020 or 2025.

"What we've seen is that very few scrubbers have actually been installed on ships to meet the 2015 deadline," said Krispen Atkinson, principal analyst in IHS Maritime's Research & Analysis team, speaking at a recent webinar on the study.

Still, the study suggests scrubbers are likely to be a strong choice in the future, particularly as retrofits to existing ships.

"We're not seeing so many vessels being retrofitted with LNG systems for instance," Atkinson said.

He also noted that global bunker demand has been weak as companies have used slow steaming and other efficiency measures to reduce their fuel consumption, but he said the rise in demand for low-sulfur fuel will create a "massive disruption on the oil markets" as refineries adjust to the new demand patterns.

IHS also predicts that the IMO regulations on sulfur content worldwide will be pushed back from 2020 to 2025 in the face of difficulties with global supply of the low-sulfur fuel.

Some refineries are currently uncertain about investing in upgrades because of questions about whether ship owners will chose low-sulfur fuel rather than one of the other options.