Norden has ordered scrubber equipment for 26 of its vessels to allow them to continue running on high sulfur fuel oil after the IMO’s marine fuels sulfur limit is cut in 2020, the company said.
The IMO’s sulfur cap is due to fall from 3.5% to 0.5% from the start of 2020, forcing shipowners either to switch to cleaner, more expensive fuels or to install scrubbers. Scrubbers remain a niche solution within the global fleet, but have seen a rapid rise in popularity among shipowners in recent months.
Norden has ordered two new vessels with scrubbers, will retrofit 16 of its current fleet with the technology and will have it installed on eight more long-term chartered vessels, the company said. It has the option to add five more vessels to its order.
The cost of the equipment will total about $41 million for the vessels it owns, and about $13 million in extra time-charter costs for the rest, Norden said. The company expects a return on the investment in its owned vessels over the next five years of about 25%, “with significant upside.”