Maritime policy bulletin 004 covers scrubber investment and market prices.

The International Maritime Organisation (IMO) introduced in 2020 a regulation restricting sulphur shipping emissions to 0.5%. Rather than purchasing more expensive low sulphur fuels, a scrubber can be installed on ships to meet this regulation with conventional fuel. Scrubber installation is a shipping technology that has high capital expenditure but enhances profitability. This is due to fuel cost savings when operating the vessel or higher freight income when leasing it out. Volatile fuel prices and freight rates mean that making such investment decisions is challenging.

This bulletin is based on research on Scrubber Installation in Shipping by Dr. Yao Shi and Dr. Ioannis Moutzouris of City St. Georges, University of London.

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To read other bulletins, please see: Resources – UK National Clean Maritime Research Hub