Stena Bulk invests $55m to install 16 scrubbers

Stena Bulk has invested $55m to retrofit scrubbers to 16 oil tankers, with the installation work planned for completion before January 2020 to comply with the IMO fuel sulphur cap regulation.

The 16 Stena Bulk ships comprise of 10 IMOIIMAXes, five suezmaxes and one MR tanker.

Stena Bulk has estimated the payback time of investment to be between 1.5-2.5 years, which has already been secured by hedging the fuel spread.

“We evaluated the different options and came to the conclusion that for our business by installing scrubbers we will secure greater availability of fuel for our vessels and by so limit our exposure to not finding the right fuel around the world and by that stay flexible in our trading,” said Erik Hanell, president and ceo of Stena Bulk.

“Even doing so we know it will require some changes and probably massive challenges in the planning logistically. We will however prepare ourselves best possible so that we can secure at least the same level of support to our customers as today,” he said.

The scrubber type to be installed is an open-loop hybrid ready with water cleaning, which not only removes the sulphur but also particles from the exhaust.

Read more: Carnival’s two-year wash-water study affirms scrubbers are positive for environment

From 1 January 2020, ships globally will be required to burn bunker fuel with a maximum sulphur content of 0.5%, down from the current 3.5%. Ships that wish to continue burning 3.5% sulphur fuel will need to install scrubbers to bring down the sulphur content to the compliant level.

Posted 19 March 2019

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Lee Hong Liang

Asia Correspondent

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