Genco to Install Scrubbers on up to 32 Ships
Dry bulk shipping company Genco Shipping & Trading Limited said it plans to install exhaust gas cleaning systems, or scrubbers, on its 17 Capesize vessels with options for installation on an additional 15 vessels ahead of new environmental regulations set to take effect in 2020.
“Based on extensive evaluation and analysis, we plan to fit our Capesize vessels with scrubbers given their trading patterns and higher fuel consumption, which we expect to result in a very attractive payback period,” said Genco CEO John C. Wobensmith.
“Options to install scrubbers on 15 minor bulk vessels will also provide the company with the flexibility to react to market conditions as they develop.”
The scrubbers will help Genco to meet new rules set by the International Maritime Organization (IMO) that cap sulphur emissions from ships at 0.5 percent, down from 3.5 percent currently.
Genco anticipates scrubber installation to be completed in 2019, ahead of the January 1, 2020 deadline.
The company said it is currently in discussions with various lenders in regards to financing the scrubbers, which it estimates will cost approximately $2 million each, including installation.
Genco said the balance of its fleet not equipped with scrubbers is expected to consume compliant, low sulphur fuel beginning in 2020, when the new environmental regulations come into effect.
The company added it will also continue selling older, less fuel-efficient vessels and redeploying the capital toward high specification, fuel-efficient vessels to further reduce emissions.