Scorpio Bulkers announced that it signed an agreement with third parties to purchase scrubbers for 18 of its vessels in 2019 and for 10 of its vessels in 2020. The total value of these agreements reaches $42.4 million.
The scrubbers will have ‘hybrid ready’ design, which enables them to be upgraded to a ‘closed loop’ configuration in the future.
Scorpio Bulkers also has an option to buy scrubbers for up to 18 additional vessels in 2020.
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During October, Scorpio Tankers entered into agreements with suppliers, engineering firms, and ship repair facilities to cover the purchase and installation of scrubbers on its remaining owned and financed leased LR2, LR1, and MR tanker vessels.
This number amounts to a total of 75 vessels, which will have been retrofitted with scrubbers between the second quarter of 2019 and the second quarter of 2020.
The scrubbers and their installation are expected to cost between $1.5-$2.2 million per vessel, with 60-70% of these costs to be financed.
Earlier in October, Scorpio informed that it will install scrubbers to the vast majority of its vessels in order to comply with the 2020 sulphur cap, by the end of the first half of 2020. However, the company had not determined the exact costs or how such costs will be financed.
Before this decision, Scorpio Tankers was planning to use compliant fuel in order to comply with the upcoming regulations, as informed in June 2018. As the company explained, at that time it was evaluating scrubbers as well, but did not choose them because it did not have a reason to do so.
Nevertheless, because of regulatory, technological, and supply/pricing risks, Scorpio ultimately decided to install scrubbers as a way to comply.
