The International Maritime Organization implemented the IMO 2020 regulations on January 1, 2020.
The International Maritime Organization implemented the IMO 2020 regulations on January 1, 2020. As they pertain to sulfur emissions, the regulations require ships without exhaust gas scrubbers to burn either 0.5-wt%-sulfur fuel (very low sulfur fuel oil, or VLSFO) or 0.1-wt%-sulfur marine gasoil (MGO). Ships outfitted with scrubbers can continue burning 3.5-wt%-sulfur heavy fuel (high-sulfur fuel oil, or HSFO). The economics of installing scrubbers depends very much on the price differential between VLSFO and HSFO.
One analysis1 reported a $100/t differential as the tipping point above which installing scrubbers becomes cost-effective, although the figure could be as low as $75/t. Of course
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