IMO2020: NORDEN Makes $54 million Commitment to Scrubbers

Wednesday August 15, 2018

With another Q2 report released today came another owner revealing it has invested in scrubbers; today it was the turn of D/S NORDEN who said it has placed orders worth $41 million for 26 exhaust gas cleaning systems plus an option for five more.

It puts the per-scrubber cost at just under $1.6 million, with two to be installed on newbuildings, 16 retrofitted on owned vessels, and eight installed on long-term chartered tonnage.

The order is part of an overall $54 million commitment to the technology, with the additional $13 million coming from increased TC hire over the coming years.

NORDEN says it also expects its investment to boost the value of its Dry Cargo vessels by 2% and Tankers by 1%.

"Recognising uncertainties, NORDEN considers the investment highly attractive with an estimated financial return of approximately 25% within 5 years on own vessels with significant upside," the owner wrote in its latest Q2 report.

NORDEN joints a raft of other companies who in recent weeks have made similar announcements as part of an apparent industry-wide change in attitude towards the technology.

What has not changed, however, is that when the new 0.50% global sulfur cap comes into force on January 1, 2020, the technology will still be absent from that vast majority of the global fleet.