US owner Genco Shipping & Trading has confirmed it plans to install exhaust gas cleaning systems on its 17 capesizes.
It also revealed options to install the scrubbers on 15 smaller bulkers in its fleet.
But it said: "The balance of the fleet is expected to consume compliant, low sulphur fuel beginning in 2020, when new environmental regulations come into effect capping sulphur emissions at 0.5%, down from 3.5% currently.
"Genco will also continue to execute its previously announced fleet renewal program aimed at selling older, less fuel-efficient vessels and redeploying the capital towards high specification, fuel-efficient vessels to further reduce emissions."
It expects retro-fitting of the devices to be completed next year.
The company is estimating the cost at $2m per ship, including installation, and is in talks with various lenders over financing.
Flexibility retained
CEO John Wobensmith 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, maximizing 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."
He added: "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.”
Last week TradeWinds reported that Genco had decided to install scrubbers on the capesizes.
These ships represent a little more than a quarter of the 64 bulkers in Genco’s fleet, yet nearly 60% of its capacity in dwt.
The decision to convert them would take into account that the scrubber-retrofit cost could be recouped much more quickly on larger vessels than on smaller ones, market sources said.
