Low Sulfur / High Sulphur Bunker Price Differential Expected to be Substantial for Some Time: Norden

Thursday October 25, 2018

The price differential between low sulfur and high sulfur bunkers is expected to be substantial for some time, according to Jens Christensen, Head of Technical Department, Dampskibsselskabet NORDEN A/S (Norden).

Christensen's comments came at a signing ceremony of a scrubber installation deal between the shipowner and Turkey's Besiktas Shipyard.

"We have conducted a thorough analysis of the effect of the sulphur directive, when it takes effect on 1 January 2020. The price difference between low sulphur and high sulphur fuel is expected to be substantial for some time, which makes scrubbers an attractive method of complying with the sulphur regulations," said Christensen.

"In practice, this means that vessels equipped with a scrubber are expected to have a significant competitive advantage as of 2020, and we therefore see scrubbers as an investment which is both economically attractive and technically viable."

Norden announced in August it has made a $54 million commitment to scrubber technology.