SHIPS' exhaust gas cleaning systems (EGCS) known as 'scrubbers' have saved US$13 billion worth of shipping fuel, according to Sea-Intelligence.
Scrubbers allow shipping lines to run fuel oils with a higher sulphur content (IFO380), which is also cheaper, reports London's Port Technology.
Sea-Intelligence noted that an increase in scrubber installations would mean an increasing share of vessels that are capable of the cost savings potential of buying cheaper regular fuel instead of the more expensive low-sulphur Very Low Sulphur Fuel Oil (VLSFO).
The current price for premium on VLSFO is US$166/tonne, according to Sea-Intelligence.
Using a model to estimate worldwide fuel usage per day throughout the whole industry, shipping lines have saved a total of $13 billion through the deployment of scrubbers since the adoption of IMO2020.
Alan Murphy, CEO of Sea-Intelligence, said: 'This development demonstrates that the shipping sector is motivated by regulatory actions that cost them money. However, it also demonstrates that monetary motive does not always result in the outcome that some proponents of regulation expect.'
Instead of converting to low-sulphur fuel, it is more cost-effective to utilize ordinary gasoline in conjunction with scrubbers, which is completely compatible with laws.
It then highlights the issue of policies aimed at reducing carbon emissions. Financially motivated regulations are taking effect, such as the EU's ETS carbon price on shipping.
'What remains to be seen, is to which degree the industry will find other ways to abide by the regulation in letter, but not necessarily in spirit,' Mr Murphy added.
In January, Sea-Intelligence predicted that maritime companies' CO2 emissions would rise as a result of the ongoing Red Sea crisis.
SeaNews Turkey
Scrubbers allow shipping lines to run fuel oils with a higher sulphur content (IFO380), which is also cheaper, reports London's Port Technology.
Sea-Intelligence noted that an increase in scrubber installations would mean an increasing share of vessels that are capable of the cost savings potential of buying cheaper regular fuel instead of the more expensive low-sulphur Very Low Sulphur Fuel Oil (VLSFO).
The current price for premium on VLSFO is US$166/tonne, according to Sea-Intelligence.
Using a model to estimate worldwide fuel usage per day throughout the whole industry, shipping lines have saved a total of $13 billion through the deployment of scrubbers since the adoption of IMO2020.
Alan Murphy, CEO of Sea-Intelligence, said: 'This development demonstrates that the shipping sector is motivated by regulatory actions that cost them money. However, it also demonstrates that monetary motive does not always result in the outcome that some proponents of regulation expect.'
Instead of converting to low-sulphur fuel, it is more cost-effective to utilize ordinary gasoline in conjunction with scrubbers, which is completely compatible with laws.
It then highlights the issue of policies aimed at reducing carbon emissions. Financially motivated regulations are taking effect, such as the EU's ETS carbon price on shipping.
'What remains to be seen, is to which degree the industry will find other ways to abide by the regulation in letter, but not necessarily in spirit,' Mr Murphy added.
In January, Sea-Intelligence predicted that maritime companies' CO2 emissions would rise as a result of the ongoing Red Sea crisis.
SeaNews Turkey