German shipping company Hapag-Lloyd reiterated that scrubbers would not be the company’s preferred solution in order to achieve compliance with the upcoming stringent environmental regulations.
The IMO sulphur cap, which enters into force in 1st of January 2020 and mandates operators to burn fuel containing up to 0,5% of sulphur, has raised concerns in shipping industry, regarding to which is the most efficient solution to provide compliance and reduce emissions, while not having a financial impact on businesses.
The key three options considered are:
- use of low sulphur fuel, created by an extended refining process, during which a greater percentage of the sulphur content is removed. When used as fuel in ships, it will automatically produce exhaust gases containing considerably less SOx.
- installing scrubbers, which will clean the exhaust gases before they are released. This means vessels can continue to operate using HSFO.
- use of LNG or hydrogen as a fuel, considerably “greener” alternatives to oil, that could generally reduce SOx emissions by 90% – 95%. LNG is seen as probably the longer-term solution to the ship fuel emissions issue.
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In view of these, Hapag-Lloyd’s CEO Rolf Habben Jansen said on Wednesday the issues were complex, but installing scrubbers to remove sulphur did not appear to be the company’s preferred option. However, amid general uncertainty within the industry, he noted the company’s stance on the issue may change.
Hapag Lloyd’s merger with UASC within 2017 made it the world’s fifth biggest container ship company, owning 17 LNG-ready ships.
Mr. Jansen added that the company plans to give details of compliance with the sulphur cap within three to six months.
Earlier, Danish container ship giant Maersk said also it would not pursue scrubbers as an option for compliance with the 2020 sulphur cap, but it would replace the cheaper bunker oil with fuels with a lower sulphur content.