In light of the upcoming 2020 sulphur cap, the shipping industry is on the run of finding compliant low-sulphur fuels; Yet, some state that the demand for high sulphur fuel will not be extinct as those who will use scrubbers will continue making use of it.
Shipowners, operators and charterers face technical, commercial and legal challenges in the run-up to the IMO’s January 2020 sulphur cap. In the following article, Ian Short, a Campbell Johnston Clark partner, explains some essential contractual precautions.
Clean Arctic Alliance’s Lead Advisor, Dr Sian Prior and Árni Finnsson from the Iceland Nature Conservation Association are urging the Nordic Prime Ministers and the German Federal Chancellor to support the call for a ban on heavy fuel oil in the Arctic at their gathering in Reykjavik, Iceland.
In light of Iceland’s Ministry of the Environment and Natural Resources decision, which bans the use of fuel oil with more than 0.1% sulphur content for ships operating in its territorial waters, Dr Sian Prior, Lead Advisor to the Clean Arctic Alliance, highlighted that the Alliance although supports this decision, they are in favour of generally banning HFO use and carriage as fuel.
The Icelandic Ministry for the Environment and Natural Resources has made a draft to amend current regulations regarding the sulphur content of fuels. If adopted, the amendments will not allow the use of heavy fuel oil within Icelandic territorial waters from the start of 2020, with fuels with only 0.1% sulphur content being allowed.
Lloyd’s Register witnessed a process demonstration, in which the exploration and drilling company Genoil used a hydroconversion upgrader to convert high sulphur heavy fuel oil into IMO 2020-compliant marine fuel. During the desulphurisation process, the sulphur content of an HSFO was reduced from 1.72% to 0.38%.
Hapag-Lloyd Cruises announced that it will use low-sulphur Marine Gas Oil on all expedition ships from July 2020. Currently, the company is using MGO in particularly vulnerable areas like the Arctic, Antarctica and Kamchatka. The routes will be managed on the basis an eco-efficient average speed, which aims to reduce fuel consumption by one third.
GoodFuels Marine along with bulker and tanker owner and operator Norden A/S, has successfully completed trials of the world’s first zero emission, ‘drop in’ Heavy Fuel Oil. The Bio-Fuel Oil is able to deliver almost zero carbon and Sulphur Oxide emissions without requiring engine modifications.
MEPC 73, which concluded on Friday, considered impact assessment methodology ahead of sending the ‘Scope of Work’- which sets out the work to be done to reduce the risks associated with the use and carriage of HFO by ships in Arctic, including the proposal for a ban, to PPR6 in February.
It would cost passengers just the price of a glass of wine a day if cruise ships would stop burning HFO in the fragile Arctic, according to a new report from T&E. The report resulted from analysis of the impact on the cruise ship ‘MS Rotterdam’ had it switched to MGO, during three summer trips to the Arctic.
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