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."


Maran Melina vessel. Angelicoussis Group takes delivery of fifth dual-fuel Suezmax tanker  

Maran Tankers Management adds the 155,500-DWT Maran Melina to its fleet.

CMA CGM Orsay naming ceremony. CMA CGM takes delivery of LNG-powered Orsay for Asia-Europe trade  

24,212-TEU vessel joins 10-ship series, adding capacity to the carrier's FAL3 route.

Titan Unikum vessel. Titan Clean Fuels completes 15-year survey on LNG bunkering vessel Titan Unikum  

Multi-gas carrier has undergone dry-docking work at a Chinese yard, preparing it for future upgrades.

Aesen 116H vessel. Lehmann Marine’s CUBE battery system debuts in China aboard hybrid crew boat  

German battery maker’s first Chinese installation targets fuel savings on a Cheoy Lee-built vessel for a Singapore operator.

Person signing a document. Iino Lines secures transition loan from Mizuho Bank for LPG dual-fuel VLGC  

Japanese shipowner finances the acquisition of Lumi Aurora through a green transition finance framework aligned with ICMA guidelines.

ABS, HD KSOE and Siemens MoU signing. ABS, HD KSOE and Siemens partner on digital twin technology for ammonia-fuelled ship safety  

Three firms will combine CFD analysis and digital twin technology to assess ammonia leak scenarios in vessel design.

American Bureau of Shipping (ABS) logo. Nuclear-powered LNG carriers cost more upfront but cut lifetime fuel bills, ABS-backed study finds  

Joint study with Blossom Energy examines the economics of a 174,000-cbm LNG carrier powered by a small reactor.

Christos Doulaveris, Flex Commodities. Flex Commodities appoints Christos Doulaveris as general manager for Greece  

Bunker trader strengthens its Greek operations with a new leadership appointment.

Chang Ping Yuan vessel. China delivers first domestically built VLGC under Chinese flag  

Cosco Shipping’s new 88,000-cbm gas carrier features an LPG dual-fuel main engine.

IMO, GreenVoyage2050 and Republic of Türkiye MoTI logos. Electric and hybrid ferries could cut Sea of Marmara emissions by 63%, IMO study finds  

A GreenVoyage2050 study finds that electrification could slash emissions, avoid €492 million in damage costs and support jobs.