Member Info for slicksandwets

"I think the scrubber argument is still very positive and if I was able to lock in future good quality HSFO supply and had a big enough ship trading in international [no Emission Control Area] waters, then I would install a scrubber as soon as possible," Tolson told S&P Global Platts in an interview. "I do not think demand for HSFO will suffer due to wash water issues," he added.

https://www.spglobal.com/platts/en/market-insights/latest-news/shipping/032219-interview-locking-in-hsfo-supplies-is-key-for-scrubber-fitted-fleet-post-2020-consultant

“2019 is set to be a pivotal year for the development of the hydrogen economy with the North West set to play a key part. Welcoming INOVYN to the Alliance underpins just how big an opportunity this is and how important it is for the region to collaborate in driving hydrogen forward. There are hydrogen projects happening right now in the North West which could be game-changers in the journey to a low-carbon future.”

https://www.gasworld.com/inovyn-joins-north-west-hydrogen-alliance/2016853.article

"Nouryon and Gasunie to supply ‘green’ hydrogen for methanol production"

“In our methanol reactor unit, we process hydrogen and CO2 to renewable methanol and water, under the same conditions as when syngas is used to produce methanol” said Julius van Dongen, Public Affairs Officer at BioMCN."

https://www.thechemicalengineer.com/news/nouryon-and-gasunie-to-supply-green-hydrogen-for-methanol-production/

"Refiners and analysts expect the new sulfur-content rules for ship fuels to raise diesel demand and refining margins, while weakening the high sulfur fuel oil (HSFO) demand and market. Ships which will have installed the so-called scrubbers removing the exhaust can still use HSFO, but their number is still limited."

https://oilprice.com/Energy/Energy-General/Refiners-Prepare-To-Profit-From-Dramatic-Oil-Product-Switch.html

"IMO’s scrubber rules should be science-based, DNV GL says More researches on the environmental impact of open-loop scrubbers on ecosystems are needed even though they are be costly and time-consuming. Further IMO regulations for scrubbers should be based on scientific evidences of their environmental impact"

https://www.tradewindsnews.com/legal/1735639/imos-scrubber-rules-should-be-science-based-dnv-gl-says

"If those who expect diesel prices to rise sharply turn out to be right, airlines, truckers and other industries that are heavily reliant on the fuel will probably be among the first to feel the pain."

https://www.ft.com/content/c486bfe6-4b05-11e9-bbc9-6917dce3dc62

"If those who expect diesel prices to rise sharply turn out to be right, airlines, truckers and other industries that are heavily reliant on the fuel will probably be among the first to feel the pain."

https://www.ft.com/content/c486bfe6-4b05-11e9-bbc9-6917dce3dc62

The biggest U.S. crude inventory drop since July of last year was responsible for oil prices on Wednesday continuing their upward trajectory, this time topping $60 per barrel - but the draw downs also exacerbated fears that the global
market will soon tighten to the point where prices will become unacceptable in many quarters, including the White House.

https://shipandbunker.com/news/am/549514-oil-tops-60-on-strength-of-massive-drawdowns-and-get-set-for-75-brent-says-morgan-stanley

NYK Gets Green Loan for Scrubber Retrofits NYK today said it has signed a 9 billion yen ($81m) loan agreement to fund its scrubber retrofit programme.

https://shipandbunker.com/news/apac/912202-nyk-gets-green-loan-for-scrubber-retrofits

foxm - the expectation is that with cheaper fuel oil comes cheaper high sulfer residues which is the base stock for msar and the expectation is that msar synthetic fuel oil can retail significantly cheaper than the distillate fuel oil. So it would seem consumers of fuel oil are on a win win there.

The concern could be that the mention of refinery storage availability could also affect msar as storage could be taken up by HFO.

However if customers are not found for that surplus HFO then the refineries will stop producing HFO. More residues presumably available for cheaper msar????

Thoughts.....

foxm - the expectation is that with cheaper fuel oil comes cheaper high sulfer residues which is the base stock for msar and the expectation is that msar synthetic fuel oil can retail significantly cheaper than the distillate fuel oil. So it would seem consumers of fuel oil are on a win win there.

The concern could be that the mention of refinery storage availability could also affect msar as storage could be taken up by HFO.

However if customers are not found for that surplus HFO then the refineries will stop producing HFO. More residues presumably available for cheaper msar????

Thoughts.....

There is some suggestion on the private forum that the Maersk trial did in fact trial MSAR in scrubber mode as indicated in the linked article.

https://shipandbunker.com/news/world/174379-maersk-confirms-it-will-not-use-scrubbers-for-imo2020-compliance

Dustof - I think what I was trying to say was wet + wet = more wet.

MSAR in conjunction with scrubbers has not been tested as far as I am aware however the characteristics of MSAR having almost complete burn out of the hydrocarbon and significant reduction in soot/particulate/NOX suggests to me that using MSAR the shipper will have less waste matter to deal with. However the exhaust gas maybe wet owing to msar water content which may need to be assessed in scrubber mode as to potential impact on the volume of waste coming from the scrubber. Not an issue in open loop mode but with all these port bans appearing and with regulatory bodies taking interest I would expect some regulation with regard to uncontrolled discharge of scrubber waste.

“A lot of people out there...in good faith have made significant investments.”

Ships with open loop scrubbers docking or sailing through those ports would need to store waste in tanks until it could be discharged elsewhere or avoid the ports.

The other option is to use a scrubber with a “closed loop”, which stores the waste until it can be treated on land. There are also hybrid scrubbers with a loop that can be open or closed.

https://uk.reuters.com/article/uk-shipping-imo-scrubbers-analysis/ship-owners-worry-about-clean-fuel-bill-as-ports-ban-scrubbers-idUKKCN1R015U

Yes FYOZ, oh to be a fly on the wall within Maersk. There decision of going to low sulfer fuels was no doubt an economic decision like most things, did they have the cash to retrofit the fleet with scrubber, perhaps not.

However they have committed to a very small amount of scrubber installations so just maybe an opportunity to go with synthetic fuel there (I think we would all be very surprised if they did), we are told that Quadrise still maintains open dialogue with them but long term they are seeking carbon neutral fuels so perhaps MSAR is not green enough to fit with CC neutral in their view:-

https://www.greenmatters.com/p/shipping-company-maersk-carbon-neutral

They are also a fuel trader so no doubt buying low sulfer fuel in bulk to sell to the market place will ensure availability at the best possible price for themselves:-

https://www.supplychaindive.com/news/maersk-secures-source-of-low-sulfur-fuel/548766/

https://shipandbunker.com/news/features/industry-insight/661752-insight-is-maersk-oil-trading-emerging-as-one-of-the-worlds-biggest-physical-bunker-suppliers

"We evaluated the different options and came to the conclusion that for our business by installing scrubbers we will secure greater availability of fuel for our vessels and by so limit our exposure to not finding the right fuel around the world and by that stay flexible in our trading," said President & CEO Erik Hånell.

https://shipandbunker.com/news/world/376609-stena-locks-in-scrubber-payback-period

Great News:-

https://www.theguardian.com/business/2019/mar/19/toyotas-altona-site-to-become-hydrogen-production-and-refuelling-centre

"Gothenburg, Sweden, headquartered tanker operator Stena Bulk is to install exhaust gas scrubbers on 16 ships before the January 2020 IMO sulfur cap deadline.

In all, ten IMOIIMAX tankers, five Suezmaxes and one standard MR will be equipped with scrubbers, representing an investment worth $55 million including equipment, installation and time out of service."

https://www.marinelog.com/news/sixteen-stena-bulk-tankers-to-get-scrubbers/

Japan Is Betting Big On The Future Of Hydrogen Cars:-

"Meanwhile, Japan is investing heavily to create the infrastructure needed to promote hydrogen vehicles. It is tough to sell a hydrogen car without a lot of places to fill it up. But without more cars on the road, such fueling stations are not a smart investment for private companies.

So the Japanese government has stepped in with subsidies. The country, along with private companies like Toyota, has helped build and operate 100 hydrogen fueling stations so far. Japan has a target of 900 by 2030. By then, Toyota hopes there will be enough hydrogen vehicles to make the stations profitable."

https://www.npr.org/2019/03/18/700877189/japan-is-betting-big-on-the-future-of-hydrogen-cars?t=1552978594595