DHT Holdings Bets on Scrubbers

Bermuda-based crude oil tanker company DHT Holdings plans to fit exhaust gas cleaning systems on two thirds of its very large crude carriers (VLCCs) to comply with the impending 2020 sulphur cap.

The oil tanker owner-operator said that the retrofit program encompass 16 ships built between 2004 and 2012, representing the ships within our fleet that stands to gain the greatest economic benefits.  

Additionally, the two newbuildings delivered from Hyundai Heavy Industries this year had scrubbers installed, taking the total to 18 out of 27 ships with scrubbers.

"As we have stated, we are neither for nor against scrubbers, but deem it our responsibility to position DHT as best as we can ahead of the implementation of the new regulations.  We believe scrubbers to be an economical way to comply with the new regulations and want with this communication to share some important details in our scrubber program," said Trygve P. Munthe and Svein Moxnes Harfjeld, Co- CEOs of the company.

"Fifteen of the scrubbers that we will install will be able to clean the Sulphur content in the exhaust gas down to 0.1%, enabling these ships to operate with scrubbers within emission control areas (ECA) and ports, where permitted," they said.

"Secondly, we configured our fuel tank lay-out allowing us to carry various grades of fuels facilitating the flexibility to consume compliant fuels with 0.5% or less Sulphur content when in emission control areas and in ports that does not permit scrubbers.  We have elected this configuration in anticipation of countries implementing stricter rules related to use of scrubbers when ships operate in their respective near seas and ports," the Co-CEOs added.

With the last newbuilding delivered in October in time for the current market upturn,  the company now has all ships in the water earning money, they claimed.