NAT to Pass on Scrubbers

July 7, 2019

Bermuda-based international tanker company Nordic American Tankers Limited (NAT) has reiterated that it believes scrubbers are not a solution for the company based upon a conservative financial policy.

"NAT does not take on risk it does not have to," it said.

An increased number of ports now prohibit or impose strict requirements on the use of scrubbers, which purify emissions from large ships.

The scrubber cleans the exhaust from vessels for Sulfur and emit impure water into the sea, and that is what the ports now will put an end to.  Therefore, we still do not see that this new requirement is an issue for NAT.

Nordic American Tankers points to a Reuters article of July 04 on the potential ban by Norwegian authorities of scrubbers.

NAT recalled its statement on  October 24, 2017, in which the tanker company said that discussions about the sulfur requirements for bunker consumption on ships to be in effect from 2020.  "Our 33 (which NAT had at the time) Suezmax tankers are fully compliant to run on 0.10% sulfur content or less.  Therefore, going forward we do not see that this new requirement is an issue for NAT," it said.

Now, a ban on so-called scrubbers is also being considered in Norway, according to Reuters.

An increasing number of ports around the world prohibits the use of scrubbers, which purify emissions from large ships. The news agency E24 wrote a few days ago how the industry believes that ships without scrubbers could be exposed, as more and more customers demand lower emissions from their shipping partners.

Now comes the news that several ports consider banning scrubbers. The point of the scrubbers is that they clean the exhaust from the ships for sulfur. The consequence is that the ships pump impure water into the sea - and that is what the ports will now put an end to, writes Reuters.
Also in Norway, a ban on the use of scrubbers that emit unclean water into the fjords is now being considered. E24 refers to a non-named source in the Ministry of Climate and Environment.

It is a question whether all types of scrubbers may be prohibited.

The International Shipping Organization (IMO) has decided that the limit for sulfur content in fuel used in shipping should be reduced from the current 3.5 per cent to 0.5 per cent.

"We cannot say for certain what the outcome can be expected to be. We feel confident, though, that the view of NAT communicated explicitly Oct 24, 2017, is the right avenue forward," NAT statement said.

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