VLCCs Lead the Way in Scrubber Installations

VLCCs Lead the Way in Scrubber Installations

A new analysis conducted by shipbroking firm Gibson has revealed that the owners of very large crude oil carriers (VLCCs) have been the top installers of exhaust scrubber systems. 

At the time of the analysis, approximately half of the global VLCC fleet has been fitted with scrubber systems - allowing these vessels to benefit from significant rate premiums on key routes. 

The surge in scrubber installation follows the implementation of the IMO’s global sulphur rules in 2020.

In the run-up to these rules, VLCC owners had found themselves faced with a choice; pay for the installation of exhaust gas scrubber systems, or switch to compliant low sulphur fuels, known as very low sulphur fuel oil (VLSFO). 

In the end, significant fluctuations in the price differentials between scrubber installation, high sulphur fuel oil and very low sulphur fuel oil (known as the Hi5 spread) appears to have tipped the scales in favour of scrubber installation. 

As per the analysis from Gibson, it is the owners of younger VLCCs that have led the charge on scrubber installation. Gibson found that a significant 74% of tankers under ten years of age have scrubber installations. This contrasts to 47% of VLCCs in the 10-20 year age bracket that have scrubbers. 

Whilst VLCCs have led the way in installing exhaust gas scrubbers, fewer smaller sized tankers have taken the scrubber route. Figures provided by Gibson show the following percentage of each tanker segment with scrubbers: 

  • Suezmax - 29%.
  • Medium Range - 17%.
  • Panamax - 8%.
  • Handysize - 2%.

Gibson suggests that these smaller tanker segments have not embraced scrubber installations compared to the VLCC segment due to the economics not being as ‘clear cut’. 

Whilst scrubber installation is largely viewed by the industry as a positive move towards greener, low-carbon shipping, they are not without controversy. Open-loop versions of exhaust scrubbers (which discharge emissions into open water) are increasingly being banned or limited from certain national waters. 

Need assistance with scrubber corrosion issues? 

Here at Brookes Bell we have identified and helped to remedy a variety of exhaust gas scrubber issues. Acidic corrosion can occur in various parts of the scrubber system - most notably the section of discharge piping outboard of the scrubber overhead valve (also known as the distance piece). 

So, whether you’re dealing with a current scrubber gas corrosion issue, or you want to prevent problems from arising, speak to Brookes Bell today. 

Find out more about Brookes Bell’s marine engineering services now

For more maritime industry insights and information, read the Brookes Bell News and Knowledge Hub

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Author
Anthony York
Date
13/08/2024
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