- Star Bulk Carrier plans to install scrubbers in its entire fleet by 2020.
- It has secured 3% debt to cover up 70% of the cost.
- The estimated expenditure is below $2.0 million per vessel.
- 35% of the team are deployed to carry out onboard installations while at sea.
In a major development, Star Bulk Carriers Corp. has announced scrubbers installation in its fleet. The global shipping company which focuses on the transportation of dry bulk cargoes recently declared that it intends to equip its entire fleet with Exhaust Gas Cleaning Systems (“scrubbers”) by January 1, 2020 the implementation date of the new IMO sulfur emission cap regulation, reports The Business Insider.
How to tackle the cost?
- Star Bulk expects average cost, including installation, to be below $2.0 million per vessel.
- The Company has secured debt financing with an average margin of below 3.0% to cover up to approximately 70% of such cost
- The remaining amount will be covered from operating cash flow and cash on hand, without raising equity for this purpose.
How will it be done?
- The Company has secured contracts with leading shipyards for scrubbers installation.
- Approximately 35% of the installations, riding teams are already deployed to carry out the retrofitting works onboard the vessels while at sea
- This will reduce off hire time, as a result of those installations, by 50% to 60%.
A month ago, Star Bulk successfully completed the first scrubber installation at sea.
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Source: Business Insider
