Shipping company Scorpio Group plans to fit scrubber equipment to a majority of its vessels by July 2020 to allow them to continue burning fuel oil after global sulfur emission limits are cut.
The International Maritime Organization’s global marine fuels sulfur limit is set to drop to 0.5% from 3.5% at the start of 2020, forcing shipowners either to switch to cleaner, more expensive alternatives or invest in installing scrubbers and continue using fuel oil.
In filings to the US Securities and Exchange Commission published Friday, the company’s dry bulk unit Scorpio Bulkers and oil shipping unit Scorpio Tankers both announced plans to install scrubbers.
“Management expects to retrofit the substantial majority of its vessels with exhaust gas cleaning systems, or scrubbers, to comply with the IMO 2020 rules regarding sulfur emissions by the end of the first half of 2020,” the company said in both filings. “The company expects the aggregate capital investment of such retrofits to be material, but has not determined the exact costs or how such costs will be financed.”
Scorpio Bulkers has a fleet of 56 owned or finance leased vessels, according to its website, while Scorpio Tankers has 109.