16 Stena Bulk vessels to get scrubbers. Image Credit: Stena Bulk
Stena Bulk says it has locked in the payback period for its scrubber programme to between 18 and 30 months by hedging the fuel spread between low and high sulfur fuels.
With the global sulfur cap for marine fuel falling to 0.50% from January 1, 2020, after this vessels must be fitted with a scrubber to continue burning the HSFO bunkers they do today, or switch to using inherently compliant and more expensive low sulfur fuels.
While many consider the economics of scrubbers to be sound given the expected spread between high and low sulfur fuel, the shipowner today said it decided to secure the payback period as fuel availability around the globe "has now become a concern to many."
Erik Hånell, President & CEO, Stena Bulk
we know it will require some changes and probably massive challenges in the planning logistically
The $55 million investment has also been expanded to 16 vessels, with a one of its standard MR tankers also now set for a scrubbing unit in addition to the 15 vessels (10 IMOIIMAXes, 5 Suezmaxes) it announced last year.
"We evaluated the different options and came to the conclusion that for our business by installing scrubbers we will secure greater availability of fuel for our vessels and by so limit our exposure to not finding the right fuel around the world and by that stay flexible in our trading," said President & CEO Erik Hånell.
"Even doing so we know it will require some changes and probably massive challenges in the planning logistically. We will however prepare ourselves best possible so that we can secure at least the same level of support to our customers as today."
Stena Bulk says it is installing Open Loop, Hybrid Ready scrubbers.