Genco Shipping & Trading plans to install scrubbers on its 17 Capesize vessels with the option for installation on an additional 15 minor bulk vessels.
In addition to scrubbers, Genco will use low-sulphur compliant fuel beginning 2020 when the IMO’s 0.5 per cent sulphur cap enters into force. Genco will also sell some of its older and less fuel-efficient vessels and redeploy the capital towards high specification, fuel-efficient vessels to further reduce emissions.
The Company anticipates scrubber installation to be completed in 2019, ahead of the January 1, 2020 deadline.
Genco estimates that the cost of each scrubber, including installation, will be approximately $2 million. The Company is currently in discussions with various lenders in regards to scrubber financing.
John C. Wobensmith, CEO, said: “Following the recent addition of six modern, high specification drybulk vessels to our fleet, and during a time when we continue to execute our fleet renewal strategy, we are pleased to announce Genco’s comprehensive plan for IMO 2020. Our portfolio approach is aimed at improving our environmental footprint, maximising shareholder returns and reducing fuel costs in an evolving marine fuel environment. 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. 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.”