Opting out of the LNG movement within the shipping industry, Danish shipping group DFDS has announced their intention to invest upwards of $100 million to install emissions scrubbers on board their fleet of vessels. The decision was made in order to meet the requirement that comes into force on 1 January 2015 that prohibits the use of heavy fuel oil within the European emissions control areas (ECAs) unless used in concert with an emissions scrubber.
DFDS notes they have been testing scrubber technology on board their RoRo vessel, Ficaria Seaways since it was delivered from the Flensburger Schiffbau Gesellscahft shipyard in 2009. “The results have been promising and often better than when using MGO,” the company notes.
For DFDS, choosing scrubbers is a costly, but necessary decision. The initial installation costs between 4 and 7 million euros and the use of the system decreases the efficiency of the engine by 1 to 2 percent, resulting in higher daily operating costs.
As a result, DFDS’ business plan is changing.
The company notes today that they will be shutting down the passenger ferry route between Harwich and Esbjerg as of 29 September, one that has been in existence since 1875.
“We haven’t been able to reduce costs enough to enable the route to bear the very high additional costs of around £2m a year,” commented DFDS CEO Niels Smedegaard. “This is what the new environmental law and the requirement to use low-sulphur oil will cost based on current oil prices from 1 January 2015.
The route is currently being served by the Sirena Seaways.
Further Reading: DFDS invests $71 Million in New Scrubber Technology (August 2013)