Low-Sulphur Deadline: …Scorpio Bulkers to Spend USD 42.4 million Scrubbers for 28 Ships

Scorpio

Dalumo Josephine

Monaco-based dry bulk shipping company Scorpio Bulkers has entered into an agreement to purchase exhaust gas cleanings systems (EGCS) for a total of 28 of its vessels.

The deal, which is a part of the company’s previously announced program to install scrubbers across its fleet, would see Scorpio Bulkers buy the equipment for 18 of its vessels in 2019 and for another 10 units in 2020.

The total value of these contracts was estimated to be around USD 42.4 million.

Scorpio Bulkers explained that the systems that are being fitted are of ‘hybrid ready’ design, which allows them to be upgraded to a closed loop configuration at a future date.

Furthermore, as part of the agreement, the company has an option to purchase exhaust gas cleaning systems for up to 18 additional vessels in 2020.

The International Maritime Organization (IMO) from Jan. 1, 2020 will prohibit ships from using fuels with sulphur content above 0.5 percent, compared with 3.5 percent today, unless they are equipped with exhaust gas cleaning systems, known as scrubbers, to clean up sulphur emissions.