Star Bulk Carriers is confident in the future of open-loop scrubbers, despite public outcry and pending regulatory scrutiny over the IMO 2020 devices.
Environmental groups last week called for a total ban on them, pointing to numerous use violations allegedly committed by Carnival Corp.
At the same time, IMO's Marine Environment Protection Committee (MEPC) approved the European Union's February request to "harmonise" IMO scrubber rules over the next year.
Star Bulk is not overly concerned over a possible ban, even though the Petros Pappas-led bulker player is spending $175m on 102 ship retrofits by 2020.
"We think the likelihood of an open loop scrubber ban is very small in international waters," president Hamish Norton said during today's first-quarter earnings call.
"And the science here is coming out pretty strongly that open loop scrubbers are not in fact a source of pollution of any significance at all."
Norton said many countries agree more scientific studies on scrubbers are needed but recent tests show scrubber pollutant levels in ports to be well within EU limits, if not zero.
"It doesn't appear to be something that is likely to end up being concerning," he said.
Plus, the IMO will probably take a couple years to come up with new rules on the devices and any installed before then will probably be protected through a grandfather clause, he said.
"It is going to be quite difficult for the IMO to change any substantial regulations around open-loop scrubbers before 2022," he said
"We're pretty optimistic that this is not going to be a serious problem for us."
Star Bulk today reported a $5.34m net loss for the first quarter, in great part due to costs related to scrubber installations
