Mon 18 Dec 2017, 12:08 GMT

Foreship predicts up to 30% of shipping will choose scrubbers


Company says a change in the pricing dynamic of higher-sulphur HFO will impact scrubber orders.



Shipowners weighing up their future marine fuel choices after the 2020 IMO 0.5 percent sulphur cap should also consider oil company expectations that up to 30 percent of commercial shipping will gravitate back to high-sulphur fuel oil by 2030, according to leading naval architecture and engineering consultancy Foreship.

With just over 100 ships running on LNG today, Foreship notes that the number in service is likely to be significantly below 500 by 2020.

At the same time, Foreship points out that while the 0.1 percent fuel sulphur content limit inside Emissions Control Areas (ECAs) has brought 1,500 scrubber installations, yard capacity could only grow that number to 3,000-4,000 by 2020. Most ships, therefore, look set to run on 0.5 percent sulphur content heavy fuel oil (HFO) and distillates to meet the cap.

Foreship Head of Machinery Department, Olli Somerkallio, explains that, post 2020, 0.5 percent sulphur content fuel will be blended from distillates and HFO of up to 2.5 percent sulphur content. Higher-sulphur HFO (HSHFO) can be used as a marine fuel where scrubbers are installed, but could also be a substitute fuel in gas power plants in former Soviet countries, or a coal substitute. This, he says, will change the pricing dynamic of HSHFO: to compete with coal, prices would have to be relatively low.

The implication, according to Foreship, is that HSHFO will return to favour as a marine fuel after the dust settles. "This will have a significant impact on the ROI of scrubbers in the future," says Somerkallio.

Experience

Foreship has experience in offering independent advice on adapting ships for new marine fuels and emissions abatement. Its reference list includes 34 exhaust gas scrubber retrofit projects to enable 13 cruise ships, 11 ro-pax ferries, nine ro-ros and one containership to burn HFO in ECAs.

Work includes conceptual design, technology and supplier evaluation, installation feasibility, the classification and basic design work needed for system integration, plus mechanical, piping, electrical systems and automation.

Foreship also covers engineering and structural design for equipment foundations and new tanks, as well as safety plans and stability updates, supervising detail design and installation during systems integration.

Foreship has advised customers to select multi-stream or in-line scrubbers, open-loop, closed-loop or hybrid systems. The high opportunity cost of losing sailing time in the cruise market has seen work planned underway, as well as for ro-ro ship projects work carried outindock.

"We have faced and overcome a broad range of installation challenges, including the fact that scrubbers eat into the revenue-earning space required for passengers or freight," says Somerkallio. "We are also very familiar with the equipment options in the market and supplier references."

As well as needing new pumping, water treatment and tank storage equipment, exhaust gas scrubbers demand considerable new pipework on board. Installing inline means that existing silencers need to be replaced with larger equipment, causing a space challenge for casing.

"Gaining this experience provides a wealth of independent experience that owners of cargo ships can draw on as the 2020 global sulphur cap approaches," says Somerkallio. "The track record is also long enough to understand that ships within the same project do not always benefit from the same equipment selection."


Alisios vessel. Axpo completes first LNG bunkering in Valencia, with over half bio-LNG  

Ship-to-ship transfer to a container vessel makes Valencia the company's fourth Spanish port for LNG bunkering.

Christening ceremony of Makua vessel. Matson christens Makua, first of three LNG-ready Aloha Class container ships  

Dual-fuel vessel, due for delivery in early 2027, is the first of three ships worth around $1bn.

CMB.Tech logo. CMB.Tech seeks Singapore-based ammonia operations manager for Asia Pacific  

New hire will oversee ammonia chartering and bunkering and liaise with Far East partners.

Lumi Aurora vessel. IINO Lines deploys first Ice Class IB VLGC on long-term charter to Borouge International  

LPG-fuelled Lumi Aurora will carry North American gas to Borouge International's Porvoo plant in Finland.

Abelina Wagenborg vessel launch. Wagenborg launches first EasyMax 2.0 vessel, prepared for methanol, ammonia and LNG  

Abelina Wagenborg, built at Niestern Sander, is the first of a new generation designed for multiple alternative fuels.

NYK and MISC joint venture signing. NYK–MISC joint venture signs charter for 18,700-cbm LNG carrier with Malaysia LNG  

Asia LNG Transport will operate the dual-fuel diesel-electric newbuild, due from Hudong-Zhonghua in 2028, on routes to Japan.

Tsuneishi logo. Study finds methanol dual-fuel retrofit of Kamsarmax bulk carrier would take about 75 days  

Report by Mærsk Mc-Kinney Møller Center, involving Tsuneishi, puts conversion costs at 25–30% of the cost of a conventionally fuelled newbuilding.

LR, Shell and GTT joint development project (JDP) launch. Lloyd's Register, Shell and GTT launch joint project on hybrid-electric 200,000-cbm LNG carrier  

Partners to develop a concept combining hybrid-electric propulsion with GTT NEXT1 cargo containment technology for larger LNG carriers.

ClearMariner homepage. ClearMariner expands maritime sanctions screening with ESG, emissions and API support  

Online service now combines sanctions checks with voyage CO₂, CII, EU ETS and FuelEU Maritime estimates.

Long Jing Xin, Flex Commodities. Flex Commodities adds Long Jing Xin to Singapore marine fuels team  

Company appoints associate for marine fuels as part of plan for regional expansion.