IMO2020: Scrubbers Are a Buyers' Market

Market for emissions abatement equipment set to grow (file image/pixabay)

More than half of the global fleet will have opted for scrubbers within two years of the 0.5% global sulfur cap coming into force, a consultant has said.

The upbeat assessment belongs to Ram Vis, head of marine consultants Viswa Group, who told price-reporting agency Platts as more scrubbers come to the market, acceptance will grow.

"The main challenge [for using scrubbers] is fear of new technology, hesitation due to inertia. As more and more scrubbers enter the market, the acceptance level will be much higher," Vis was quoted as saying.

Given the price differential between high and low sulfur fuel oil, a ship with a scrubber (where high sulfur fuel oil can be used) will have recouped the equipment's installation costs within the first year of operation, Vis said illustrating his argument with the following example.

If a 20,000 TEU boxship sails for 300 days, it will pay an additional $15 million each year for using low sulfur marine gasoil when scrubbing equipment costs around $6 million including installation.

"Currently, the scrubber market is a buyer's market.

"We feel it will soon turn into a seller's market.

"All those who were hesitating to buy the scrubber are likely to line up and pay more in a seller's market," Vis was quoted as saying.

The company has its own scrubber on the market, the Viswa horizontal H-scrubber. Unlike other emissions abatement equipment, this unit is positioned on the ship horizontally not vertically.

According to Vis, an H-scrubber is lighter with a lower initial and life time cost.