US-based tanker company International Seaways, Inc. (INSW) announced that it has signed contracts with Norwegian Clean Marine AS and a qualified system installer for the purchase and installation of scrubbers on seven of its modern VLCCs, with an option for a further three systems covering the remaining three VLCCs in its fleet.
The announcement comes amid a hot debate in shipping industry, regarding to which is the best solution for compliance with the upcoming stringent environmental regulations. The key options vary between the use of scrubbers or LSFO (low sulphur fuel oils), including LNG.
Following significant economic analysis and evaluation of different systems, we are pleased to have executed contracts to install scrubbers on a large portion of our VLCC fleet,
…said Lois Zabrocky, President and CEO of International Seaways.
The seven scrubbers are all to be installed prior to 1 January 2020, when the new 0.5% IMO sulfur cap goes into effect.
We believe that by installing scrubbers on our largest ships, we will gain an economic advantage while further demonstrating a commitment to the environment as we did with our recent acquisition of highly efficient VLCCs. In addition to being well positioned to capitalize on a market recovery based on International Seaways’ sizeable high-quality fleet, our scrubber initiative also strengthens the Company’s ability to take advantage of a potential strong tanker market resulting from the IMO regulations, as both crude and product tankers stand to benefit from increased transportation demand,
…Mr. Zabrocky concluded.
A recent trend in the industry sees an increasing shift to scrubber technology over the last months, with the Exhaust Gas Cleaning Systems Association (EGCSA) counting 983 vessels fitted with scrubbers as of 31 May 2018. Despite their high installation cost, scrubbers allow ships to continue burning cheap high-sulphur bunker fuel, which has set HSFO forecasts higher than expected.
