HMM sets up $135m scrubber fund

HMM sets up $135m scrubber fund
L-R: Young-Jun Yoon (CEO PANASIA), Jun-Sup Shin (CEO DSEC), Myeong-Ho Ha (CEO Hyundai Corporation), Ho-Seon Hwang (KOBC), C.K. Yoo (president & CEO HMM), Seok-Won Seo (president & CEO SKTI), Kwang-Hun Ahn (CEO Hyundai Global Service), and Ki-Cheon Nam (CEO Multi Asset Global Investments)

Hyundai Merchant Marine (HMM) has signed a memorandum of understanding (MOU) for the installation of scrubbers in preparation for the IMO’s 2020 global sulphur cap.

The total investment amount will be KRW 153.3 billion (US $135 million) which consists of HMM’s investment of KRW 46 billion and the rest of the amount of KRW 107.3 billion (including Korea Ocean Business Corporation’s guaranteed loan of KRW 62.3 billion and a win-win fund of KRW 45 billion invested by five companies: Hyundai Corporation, SKTI, Hyundai Global Service, DSEC, and PANASIA).

The five companies invested in a win-win fund will get the first priority for the contract negotiation for long-term fuel supply, supply of scrubber equipment and scrubber installation.

HMM plans to complete the scrubber installation on its 19 containerships by the first half of 2020.

In addition, HMM plans to install scrubbers on the newly ordered twenty eco-friendly mega containerships, including twelve 23,000 TEU vessels which are expected for delivery in the second quarter of 2020.

Two 11,000 TEU containerships, HMM Promise and HMM Blessing, which were delivered to HMM last August from Hanjin Heavy Industries & Construction are the world’s first commercially operating mega container vessels of more than 11,000 TEUs equipped with large scrubber systems. HMM’s five 300,000 DWT VLCCs starting delivery from January 2019, are also retrofitted with scrubber systems.

HMM official said “As the IMO’s new environmental regulation is expected to impose a heavy burden on shipowners, carriers not properly prepared for the IMO 2020 will be in a huge trouble.” And that “Thus, HMM will fully prepare for the IMO 2020 during the remaining period and will take this regulation an opportunity for a quantum leap.”