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Shipping Corporation to Use Low Sulphur Fuel & Not Install Scrubbers

Logistic News - Published on Wed, 14 Aug 2019

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State-run Shipping Corporation of India Ltd will not install exhaust gas cleaning systems or scrubbers on any of its ships and will use low sulphur fuel to comply with an impending global rule aimed at cutting emissions from ships. Earlier this year, Mr Anoop Kumar Sharma, Chairman and Managing Director, SCI, had told BusinessLine that India’s biggest ocean carrier was looking at the option of fitting scrubbers on its bigger ships like the very large crude carriers and Suezmaxes. But, after conducting an in-depth study, SCI has decided to change course. Mr Sharma said “We are not putting any scrubbers whatsoever,” Sharma told BusinessLine on Friday. “In the beginning, we were thinking of installing scrubbers on our VLCCs and Suezmaxes, but then, the more we studied the matter, we realised that we will not have a pay-back period. So, we will go for the low sulphur fuel. As of now, we are buying high sulphur fuel, but come October, we’ll start buying low sulphur fuel.”

SCI runs a fleet of 63 ships, of which five are VLCCs. Installing a scrubber is estimated to cost some USD 3-5 million per ship.

Beginning 1 January 2020, ships must use fuel oil on board with a sulphur content of not more than 0.5 per cent mass/mass (m/m), a steep cut from the current global sulphur cap of 3.5 per cent m/m, according to rules framed by the International Maritime Organisation. Ships can meet the requirement by either using low-sulphur compliant fuel oil or continue to use high sulphur fuel oil by fitting scrubbers. The IMO rule face challenges including adequate availability of both low and high sulphur fuels, their price and capacity addition of refineries involving huge investment, particularly for the older ones.

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Posted By : Mohan Sharma on Wed, 14 Aug 2019
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