IMO 2020: Scrubber Skeptics Starting to Soften Their Stance

Questions over HSFO availability remain. File Image / Pixabay

If the wave of recent headlines are to be believed, scrubbers are finally getting the recognition they deserve - a sentiment perhaps most succinctly summed up last week in a comment posted on LinkedIn by Quadrise Fuels' Martin Verle, General Manager, Marine: "The tide has well and truly turned in favour of scrubbers at long last!"

Indeed, even vocal scrubber skeptics such as Scorpio Bulkers now seem to be warming to the idea of using the technology, albeit not any time soon.

Having earlier this year listed three things preventing a "mature long-term decision" being made on choosing scrubbers as a compliance solution for IMO 2020, in April, Chief Operating Officer Cameron Mackey said people are struggling to understand the viability of the technology.

But in comments made this week during the firm's latest earnings call, Mackey conceded that the technology is now starting to make sense.

"I think most in the community admit now or agree that the case for scrubbers is more compelling the larger the ship size, whether it's containers, wet, or dry," he said.

"We continue to look at them but we haven't yet gotten to the point where we feel that's a good use of capital for Scorpio Bulkers. That has to do both with the technology and technological risks, regulatory risks, and most importantly for smaller vessel sizes the availability of HFO in, call them secondary or tertiary bunkering ports post 2020."

Mackey's concern over availability is, of course, well founded. While there is little doubt post 2020 HSFO supply will continue in the major ports, at least initially, Olivier Jouny, Managing Director of Total Marine Fuels Global Solutions (TMFGS) told Ship & Bunker back in January that its availability will not necessarily continue in all ports.

NSI's Paul Hardy also raised the point last year, arguing that barging would make or break the case for scrubbers.

"When you get into smaller ships that have to bunker in areas way off that those main trade routes, it's still very, very unknown and uncertain whether the benefit of a scrubber can be realised because you won't be able to find any fuel," said Mackey, but added that "the environment is changing rapidly and we're watching it."

So will there be a day Scorpio Bulkers invests in scrubbers?

"There may be a point where it becomes compelling but it isn't to us today," said Mackey.

"But as and when we get closer to 2020 we'll see how the facts on the ground change."

The "IMO 2020" global 0.50% sulfur cap on marine fuel comes into force from January 1, 2020.