Eagle Bulk Shipping Inc. (NASDAQ: EGLE) announced today that it has entered into a series of agreements for the purchase of up to 37 exhaust gas cleaning systems (i.e., scrubbers) to be retrofitted on vessels within its fleet, becoming the latest shipping company to show its hand as it related 2020 low sulphur fuel compliance.
The agreements announced Tuesday are comprised of firm orders for 19 scrubbers and up to an additional 18 units, at the Eagle Bulk’s option. The projected cost, including installation, is approximately USD 2 million per scrubber system, Eagle Bulk said in a press release.
The company says it intends to complete the retrofit of all 19 vessels prior to the January 1, 2020 implementation date of the International Maritime Organization’s new sulphur emission cap regulation.
Eagle Bulk did not disclose which company or companies the scrubbers will be purchased from, nor where they will be installed.
“Eagle Bulk, in partnership with a global engineering firm, has developed a scrubber installation program whereby a significant amount of the required retrofit work will be carried out onboard the vessels while at sea and trading, thereby reducing off-hire time as compared with a typical shipyard installation,” the press release said.
Gary Vogel, Eagle Bulk’s CEO, commented, “Today’s announcement is the culmination of significant work and analysis, and we are excited to be able to position ourselves to not only meet the forthcoming sulphur emission regulations, but also to realize the economic advantage we believe scrubbers will provide. Additionally, we are confident that Eagle Bulk’s active owner-operator model will ensure that we can effectively maximize the returns on this investment and technology.”
Eagle Bulk owns one of the largest fleets of self-loading/-unloading Supramax/Ultramax dry bulk vessels in the world, with vessels ranging in size from approximately 50,000 to 65,000 dwt. The company lists 47 owned vessels and one time chartered-in vessel on its website.