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Meeting the 2020 sulphur cap - DHT fitting 12 VLCCs with Alfa Laval scrubbers

DHT Holdings is the latest large tanker owner to take the plunge on retrofitting Alfa Laval scrubbers to 12 very large crude carriers (VLCCs) to meet the requirements of the International Maritime Organization's (IMO) 0.5% sulphur cap global from 2020.

DHT said it had entered into an agreement with Alfa Laval supply the systems and shipyard capacity to fit them to the vessels during in 2019. The scrubbers will be fitted to vessels built between 2004 and 2012 where the company said it would get the most economic benefit.

The retrofitted scrubbers add to two the company is having installed on the newbuildings DHT Bronco and DHT Mustang due for delivery this quarter from Hyundai Heavy Industries.

 "We look at the upcoming IMO Sulphur Cap as an opportunity for DHT rather than a threat.  We come well prepared and are very pleased with the timely project we have put in place.  This project could potentially create a super-profit for the ships in question and boost the already significant operational leverage in DHT,” the company said.

DHT sad it had received proposals for debt financing and was confident this would be concluded in the near future.

Scrubbers are increasingly becoming the solution of choice to meet the sulphur for large vessels such as VLCCs with owners able to continue to burn cheaper high sulphur even after the 0.5% global sulphur cap kicks in on 1 January 2020, and a payback period of just 8 – 12 months.

Read more: Scrubbers shown a little bit of love for large sized vessels

DHT Holidngs joins major owners such as Frontline, Star Bulk Carriers, Maran Tankers and Songa Shipmanagement to opt to install scrubbers to meet the requirements of the sulphur cap.

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