Tag: HFO

Wärtsilä and Clean Marine Energy announced the landmark signing of the shipping industry’s first collaboration agreement that will provide a convenient funding solution to drive the uptake of exhaust gas cleaning technology. The move is intended to ease the financial burden on ship owners seeking to install scrubber systems in order to meet sulphur emissions legislation. The financing solution, similar to those prevalent and proven in the building environment space, enables a ship owner to repay the cost of the scrubber system installation via a fuel adder, i.e. a fuel premium on the price of HFO by which the ship owner repays the cost of installing the scrubber. This provides a return from the differential between Heavy Fuel Oil (HFO) and Marine Gasoil (MGO) for a period of four to six years, depending on price spreads. This means that ship owners do not have the burden of meeting the up-front capital expenditure, which is typically between USD 3 million and USD 12 million per vessel. This investment is often difficult to pass on to charterers, whereas with CME financing, the fuel adder charge can be easily passed on until such time as the scrubber system is paid for. The concept ...

ExxonMobil Marine Fuels & Lubricants has expanded the availability of its Marine Gas Oil (MGO) to include the key port of Le Havre, France. This expansion is part of the company’s offer to help vessel operators meet the Emissions Control Area (ECA) 0.10 percent sulphur limit, which came into force on 1st Jan. 2015. ExxonMobil is the first supplier to make MGO available to vessel operators in Le Havre via dedicated barge delivery. This provides faster, more efficient refueling, when compared with truck deliveries, and ensures that the required fuel volumes are available for vessels with small and big stem sizes, starting from 40mt. “We have increased the availability of MGO to help marine operators comply with the new ECA legislation,” said Luca Volta, general manager EAME, ExxonMobil Marine Fuels and Lubricants. “In addition, by offering MGO at Le Havre via barge delivery, marine operators will benefit from a faster and more efficient fuel delivery process. “ExxonMobil now supplies MGO at more than 40 ports worldwide, providing marine operators with our expertise, products and services on a Global level.” The expansion of MGO availability follows the recent launch of ExxonMobil Premium HDME 50, a new category of marine fuel that ...

Responding to adoption by the International Maritime Organisation of the long-awaited Polar Code, aimed at regulating shipping in Polar Regions, a coalition of environmental groups criticized the measures for not going far enough to adequately protect the fragile Arctic and Antarctic environments. While the new code is a positive step forward- for the first time there will be mandatory rules for management of shipping in Arctic and Antarctic polar waters – it is insufficient to properly protect Polar environments from the increased levels of shipping activity that are anticipated as sea ice recedes in the face of global warming. In Arctic waters, the Polar Code fails to address the need to phase out the use of heavy fuel oil (HFO); an HFO spill has been identified as the highest risk posed by shipping. HFO was previously already banned in Antarctica for this reason. The Code will contain regulations requiring that ship operators limit entry into ice according to the ability of their ship to resist ice pressure, but major concerns remain due to the fact that non-ice strengthened ships will still be allowed to operate in ice covered waters. Of further concern is the impact of shipping on wildlife. While ...

The American P&I Club has issued circular No 8/14 regarding condition survey requirement for tankers carrying Heavy Fuel Oil (HFO) as cargo.

American P&I Club issues Circular No 27/13 re Condition Survey Requirement for Tankers Carrying HFO as Cargo

Condition Surveys for Tankers Carrying HFO as Cargo