OCTOBER 15, 2018 — Scorpio Bulkers Inc. (NYSE:SALT) has joined the growing list of bulk carrier operators who will invest in fitting exhaust gas scrubbers to its ships to meet to the requirements of the IMO global sulfur cap.
The company says that it has agreed letters of intent, which are subject to the execution of definitive documentation, with suppliers, engineering firms, and ship repair facilities to cover the purchase and installation of exhaust gas cleaning systems on substantially all of its owned and finance leased Kamsarmax and Ultramax vessels between the second quarter of 2019 and the third quarter of 2020.
The scrubbers and their installation will cost between $1.5 – $2.2 million per vessel, and Scorpio Bulkers anticipates that between 60-70% of these costs will be financed.
Chairman & CEO Emanuele Lauro commented, “We have long maintained that scrubbers could be the right choice for compliance with the IMO 2020 regulations. Having cautiously and patiently evaluated various risks associated with this disruptive change to our industry, we are now confident that substantial savings can be realized and that — with this investment in our vessels — our fleet will remain the most competitive in our marketplace.”