Scorpio Confirms Orders for Over 140 Scrubbers

Scorpio to use scrubbers for IMO 2020. Image Credit: Scorpio Tankers

Scorpio today confirmed it has ordered over 140 scrubbers that will be fitted across both its dry bulk and tanker fleets.

For its tanker fleet, this includes an agreement it has already entered into to retrofit units on 15 of its LR2s, plus it has now agreed letters of intent to cover the purchase and installation of units on substantially all of its remaining owned and financed leased LR2, LR1, and MR tanker vessels - approximately 75 vessels.

Meanwhile, Scorpio Bulkers has agreed letters of intent to cover the purchase and installation of scrubbers on substantially all of its owned and finance leased Kamsarmax and Ultramax vessels.

The firm says it has an operating fleet of 57 vessels consisting of 56 wholly-owned or finance leased drybulk vessels (including 19 Kamsarmax vessels and 37 Ultramax vessels), and one time chartered-in Ultramax vessel.

"We have long maintained that Scrubbers could be the right choice for compliance with the IMO 2020 regulations. Having cautiously and patiently evaluated various risks associated with this disruptive change to our industry, we are now confident that substantial savings can be realized and that - with this investment in our vessels - our fleet will remain the most competitive in our marketplace," said Emanuele Lauro, Chairman & CEO.

The work will take place between the second quarter of 2019 and the third quarter of 2020 at a cost of between $1.5-$2.2 million per vessel.

Scorpio says between 60-70% of these costs will be financed.

After a flurry of orders this summer, DNV GL says there are now 1,850 vessels with installed or confirmed orders for scrubbers.

Even though this is more than double the total from just a few months ago, the Scorpio order remains a significant one.