EGCS – mature, robust, reliable, but what happens if there is a problem?

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Fotolia_139351316_XSWith the number of ships with scrubbers approaching 600, exhaust gas cleaning is now firmly established as the main alternative to low sulphur fuel for compliance with MARPOL Annex VI regulation 14.

While scrubbers have proved robust and reliable, what should a ship operator do in the unfortunate event of malfunction or breakdown? Through its own workshops, and regular participation in conferences and training events, EGCSA has sought advice from legal experts and marine regulators on this important question.

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2020 – dramatic reduction in high sulphur fuel oil price predicted.

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The marine fuel sector may be small, but it has the potential to have significant influence on global crude oil and refined product markets, so said Victor Shum Vice President of IHS Markit at the recent Asian Emissions Technologies conference in Singapore.

The marine industry is the most significant demand centre for high sulphur residue from product refining, which is the most difficult stream to be processed and upgraded in refineries. If, as predicted, there is a sharp drop in demand for high sulphur fuel oil (HSFO) in 2020 when the global 0.50% sulphur limit comes into force, it is likely to have an acute impact on the price differential with low sulphur fuel products. Those making the right investment decisions could be very big winners.

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The cost of non-compliant fuel

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Image courtesy The Maritime Executive

If delegates at the recent Asian Emissions Technology conference in Singapore were not aware of the care that must be taken when changing over from high sulphur to low sulphur fuel, then a presentation by a UK based ship manager was certainly a strong warning of the serious consequences of not getting it right.

A visit by Port State Control inspectors in Rotterdam resulted in a vessel being detained for 5 days  – a pointer to what can happen, not only in an ECA, but also when the global sulphur limit drops to 0.50% in 2020.

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And now to get ready!

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How apt that January is named after the Roman God of gateways, of beginnings and endings and of transition. As 2016 draws to a close, this is one year where we can surely look back at a momentous decision for shipping and look ahead to what must happen next.

In October IMO made the only correct and sensible decision. No delays – from 2020 the global limit on marine fuel sulphur outside of ECA’s will be 0.50%. Ships will still be able to use higher sulphur fuel with an approved exhaust gas cleaning system, provided that the reduction in SOx emissions is at least as effective as the new sulphur cap.

The Organization is to be applauded. It is not only for EGCSA members that this brings certainty, but also the whole marine industry and its supplier base. It is a definite decision, beneficial to human health and the environment, that opens the door for businesses to take action.

So, is that job done? Read more