With the imminent of the MARPOL Annex VI mandate, it’s clear that state regulators and the insurance industry are committed to enforcing strict compliance of the new Sulphur limitations from 1 January 2020.
Recent public statements from international regulators, industry and the media would indicate there is are growing concerns on many levels with regards to the ability of the industry to manage the technical and commercial challenges associated with the introduction of the new sulphur limits. This, despite several years of notice, will make 2019 very interesting. Decisions made several years ago and more recently will come into sharp focus as we approach 2020.
For the oil producers, oil currently sold as fuel to the marine industry above the 0.5% Sulphur cap will need further blending to meet the new specifications. Oil remaining above the Sulphur cap will have low value and possibly become an expensive waste management issue. Irrespective of the direction taken there will be significant cost implications.
The ship owners have several issues; commit to the installation of high CAPEX scrubbers [closed/opened looped] and continue to burn less expensive High Sulphur Fuel Oil (HSFO) or accept the increased operating expense associated with Low Sulphur Fuel Oil (LSFO) or MDO. Long term strategies may involve LNG or Hydrogen.
Curve Marine brings new environmental technology, an advanced desulphurization system to mitigate some of the issues briefly mentioned. The ability to remove Sulphur via a commercially sustainable pre-treatment process and other contaminants from HSFO prevents what would otherwise become an expensive blending option or a waste management problem is now a “waste to value” proposition. Curve’s systems can be deployed both statically or mobile. Upstream or downstream; it all helps to get all parties where they need to be post 1 January 2020.
Below is a collection of links to recent media comments which expand upon the above.