DHT Holdings to retrofit eight vessels with scrubbers by Q1 2023
These retrofits will take DHT Holdings' scrubber-fitted fleet to 23 vessels.
PHOTO: Front view of the DHT Leopard, one of the eight vessels to be fitted with scrubber. DHT Holdings
The installation process for the eight vessels is slated to begin in the fourth quarter of this year with an investment of $25 million.
They are eco-designed vessels built between 2015 and 2018, it says. Eco-design ships help to reduce fuel consumption.
“The combination of lower cost and the current higher fuel spreads makes this a compelling investment,” it says.
Favourable price spreads between VLSFO and HSFO have increased demand for scrubbers.
Greek shipowner Star Bulk recently announced that it has recovered the $250 million it invested in scrubbers within 2.5 years because of favourable price spreads between the two grades.
Global Hi5 spreads have fluctuated heavily since the International Maritime Organisation's (IMO) 0.50% cap came into force, from lows of around $50/mt to highs of $570/mt in Singapore, the world's biggest supplier of both grades.
The sulphur cap had generally presented shipowners with one in two options for deep-sea voyages: either start burning more expensive VLSFO or invest in scrubbers to continue to burn cheaper HSFO.
Data from shipping classification society DNV suggests that scrubber orders have kept on rising in a boost to future HSFO demand. DNV has registered a total of 4,727 ships that are either fitted with scrubbers or have scrubbers on order this year, up by 177 from last year.
