EMEA News
2015 Emissions Rules Could Cause Collapse of Ferry Company
Brittany Ferries officials say the company may fold if the new European Union (EU) limits on sulfur emissions go into effect as scheduled, local newspaper the Portsmouth News reports.
The company, which provides transportation between Great Britain, France, Spain and Ireland, said the requirement for vessels to drop the level of sulfur in their fuel to 0.1 percent by 2015 in Emissions Control Areas (ECAs) would raise its fuel costs by 60 percent.
"Fuel accounts for a huge proportion of our costs – around £65m ($99.9 million) a year," said Stephen Tuckwell, Brittany Ferries' director of communications and Portsmouth port operations.
The company said it is unclear whether scrubbers would be an effective solution, so it would have to pay for expensive low-sulfur fuel at least until it could find ways to convert its fleet to liquefied natural gas (LNG) bunkers.
"The 2015 deadline will leave insufficient time to invest in alternative technologies," Tuckwell said.
"We are already looking at other fuel solutions such as LNG, but there is no supply chain in place and this is only likely to be viable for new ships from 2020."
Tuckwell said the company would have to raise passenger fares and freight rates and might also need to reduce services, which "could well lead to the collapse of the company."
French authorities have agreed to delay the start of the new rules until 2020, providing the British government agrees.
In March, European regional leaders called for the EU to delay the rules.
