Marine Scrubber Market Ready for 2020, Says EGCSA

The Exhaust Gas Cleaning Systems Association (EGCSA) has voiced that the marine scrubber industry is in fact ready for the 2020 global limit on sulphur emissions.

They hold the opinion that  postponing air quality issues for another five years is not acceptable.

The EGCSA, which represents more than 25 member companies, has raised concerns regarding the delay in adoption of a global sulphur limit, stating that harmful sulphur oxides (SOx) emissions need to be regulated urgently due to their impact on human health and the environment.  Furthermore, the international association has highlighted that there is no real need to do so as technologies to achieve SOx emissions equal to or below the regulation are widely available, proven and cost effective.

The EGCSA’s ’s Director Don Gregory commented: “In 2016, we have a much clearer view of the 2020 economy than we do of the 2025 economy. To push back the global sulphur cap implementation date in order to reduce uncertainty in the marine industry would be a fallacy. A delayed global sulphur limit will not only continue to drive uncertainty, but it will kill today’s innovation and investments in developing emission reduction technology, will hinder research into alternative fuels, and will result in higher costs.”

According to the EGCSA, there are a number of systems that are in place to help ship owners easily and cost-effectively meet the 2020 requirements, and postponing the regulation will only prolong air quality problems.  A survey conducted by the EGCSA in April 2016 indicated that capacity for manufacture and installation of marine scrubbers is likely to be almost 20 times as high at the end of 2019 as it was in 2015, proving that there is ample scrubber capacity for 2020.

Although other alternatives, such as low-sulphur fuel and liquefied natural gas (LNG) exist as options for compliance, a scrubber can be used alongside heavy fuel oil (HFO) and has therefore proven to be a popular option thus far. Since 2010 over 600 vessels have made investments to allow them to meet low sulphur standards through LNG or scrubbers, say EGCSA.

However, although early adoption of these alternatives can reduces ship owners’ vulnerability to fuel market price volatility and relieve demand on low-sulphur fuels for the rest of the world, there is some concern that early technology adopters may be hurt if the SOx regulation enforcement is delayed.  At the moment there is full clarity on the performance of the systems and therefore the only uncertainty is the actual date of entry into force of the SOx regulation.
EGCSA also points out that a delay in the global limit will cause patchwork of regional sulphur limits that will be more costly and more difficult scenario for ship owners.  If local authorities implement their own legislation in a move to take action against environmental damage, ship owners may be left with a variety of regionally different regulations to comply with.

Benefits of the 2020 over 2025 global sulphur cap implementation for all stakeholders include increased adoption of alternative fuels, improved technology, improved air quality, confidence in investment, uniform global regulations, and sufficient time to plan and implement compliance strategies, state EGCSA.

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