Japanese container line Ocean Network Express (ONE) is likely to use mainly compliant hybrid fuels to meet the 2020 0.5% sulphur cap.
Setting out its plans for compliance with the low sulphur regulation, ONE said, “We have launched a cross-functional task force to evaluate from technical aspect and established ONE’s stance on 2020 Global Sulphur Limit. Several options have been researched to identify the possible best and most cost-efficient method to comply with the regulation.”
Looking at three main options – hybrid fuels, scrubbers and LNG as a marine fuel – ONE is looking at hybrid fuels at least for compliance in the early years of the regulation. The company said its vessels were equipped to burn such fuels without modification. “At current, we identified this as one of the most realistic and cost-efficient solutions, to enable ONE to be compliant ready by 1 January 2020.”
It added the company was in discussions with bunker suppliers on specifications. Based on current prices the cost impact of such fuels would $150 – $200 per tonne.
In the case of scrubbers ONE said it might order newbuilds fitted with scrubbers “in the next phase” but not for 2020 compliance. “ONE is also evaluating to charter vessels with scrubber system to expand the number of compliant vessels in the fleet,” it added.
When it came to LNG as fuel the company said it would take too long to build new LNG powered vessels to meet the 2020 deadline, and also noted the limited routes such vessels could be used on due to fuel availability.
“Although our LNG powered vessel deployment plan is not concrete at this moment, evaluation is underway where development of LNG bunkering environment is being further analysed,” ONE said.
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