Norden Chooses Scrubbers for Up to 31 Vessels

BulkerIllustration. Image Courtesy: Pixabay under CC0 Creative Commons license

Danish shipping company Dampskibsselskabet Norden A/S has unveiled its intentions to install scrubbers on up to 31 vessels from its owned and chartered fleet.

Namely, the company informed that during 2018 it secured installation of 26 scrubbers with options for 5 more. Of these, 2 scrubbers will be installed on newbuildings, 16 retrofitted on selected, owned vessels, and the remaining 8 will be installed on long-term chartered tonnage.

The costs are estimated to amount to around USD 54 million, of which USD 41 million would be invested for upgrading owned vessels and some USD 13 million in increased TC hire over the coming years.

“Recognising uncertainties, Norden considers the investment highly attractive with an estimated financial return of approximately 25% within 5 years on own vessels with significant upside,” the company said, adding that it expects a net positive cash flow effect of USD 40 million over the first 5 years.

On January 1, 2020, a global cap of sulphur emissions from bunker fuel will come into effect, reducing the allowed sulphur content from the current level of 3.5% to 0.5%.

Compliance with the regulation can be achieved either by switching to low sulphur fuel or by installing an exhaust gas scrubber on vessels enabling continued use of high sulphur fuel oil. Throughout the last 18 months, NORDEN has evaluated how the sulphur cap will affect both the shipping and bunker markets.

The company revealed the details of the retrofit decision as part of its second quarter of 2018 financial report, in which it said that it realised an adjusted result for the period of USD 4 million, against a loss of USD 3 million seen a year earlier, in a dry cargo market which continued its gradual improvement and a historically poor tanker market.

Share this article

Follow World Maritime News

Posted on August 15, 2018 with tags .

In Depth>

Events>

<< Feb 2020 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1

Eastern Mediterranean Offshore Conference and Exhibition (EMC) 2020

EMC 2020 conference will arm delegates with technical and commercial knowledge to capitalise…

read more >

2nd GREENTECH IN SHIPPING GLOBAL FORUM

Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >