As IMO’s 2020 global sulfur limit comes into force,
countries have taken active steps toward compliance,
and upstream and downstream companies in the industry
have also made preparations and plans. Research shows
that there will three major changes to the consumption of
marine fuel:
(1) Switch to low sulfur fuel oil (less than 0.50% m/m in
sulfur content) or marine gas oil (MGO). Low sulfur heavy
marine fuel is all-in-all the most economical and widely
used solution at present. While this fuel is more expensive
to produce (and therefore more costly to run on), it can be
used in most ships today without additional or modified
equipment.
(2) Installation of an exhaust gas cleaning system
(“scrubber”) in ships, so that they can still use marine
fuels with sulfur content no higher than 3.50% m/m.
Ship owners need to weigh the savings from the use
of cheaper high sulfur fuels against the investment in
additional equipment and the issue of disposing of the
wastewater and other desulfurization-related liquid
wastes. At present, countries and regions including China,
the United States, Singapore, Germany, Belgium, Norway,
and United Arab Emirates have expressly prohibited
ships on international voyages from discharging, in their
territorial waters, washwater from open-loop scrubbers,
while countries including Japan and South Africa still allow
it.
(3) Conversion to alternative energies such as liquefied
natural gas (LNG). While LNG is an option, currently
there are very few ocean-going ships capable of using
it as fuel. Furthermore, the lack of resupply facilities and
the high cost of LNG are also challenges that need to be
overcome.
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