As time starts to run out for meeting the 2020 sulphur cap deadline by installing a scrubber, UK-based ship repair specialist Newport Shipping has inked a deal that could see lead time for projects reduced to just eight months and a deferred payment scheme for a large part of the project cost.
Under the deal, Newport Shipping Group has purchased 100 scrubbers with options for an additional 100 units from Chinese scrubber manufacturer Weihai Puyi Marine Environmental Technology Co (Puyier). The bulk purchase of scrubbers, which aims to safeguard shipowners against any price hikes or production bottlenecks as demand increases, coincides with the signing of cooperation agreements with engineering services providers Harris-Pye and Goltens.
Puyier manufactures open, closed and hybrid scrubber systems in both I-type and U-type configuration. It has more than 70 references including major operators as TRF and RCL and another 100 units on order. The system received approval from all the major classification societies following its installation aboard the containership COSCO Binghe in 2013.
Engineering will be facilitated by Harris Pye and Goltens, who will provide 3D scanning and engineering services, including basic and detailed design, prefabrication and, where and when required, riding squads to facilitate partial or full in-service retrofits.
Newport Shipping Chief Executive Officer Erol Sarikaya said: “Together with our existing global network of drydocks, we can now offer the marine industry its first-ever turnkey scrubber retrofit solution. We are providing shipowners with a true one-stop-shop for equipment procurement, engineering, guaranteed retrofit slots, and attractive deferred payment plans covering up to 60% of the total contract cover over 18-months subsequent to retrofit completion. Having secured an 8-month lead-time for scrubbers ordered by the end of October, we can guarantee shipowners that their retrofits will be completed well in advance of the 2020 Sulphur Cap implementation date.”
Roy Yap, Newport Shipping’s COO, said: “Having vetted numerous scrubber manufacturers over the past year, including new entrants to the market; we selected Puyier because of its 10-year track record in exhaust gas cleaning technology. Together with our professional network of partners, Newport makes scrubbers accessible for retrofits in service or at the shipyard.”
Newport currently has a pipeline of owners across all major vessel classes for projects totalling 87 of the 100 scrubbers purchased with binding LOIs and contracts.
Goltens VP Sandeep Seth said: “The market is gathering pace as more and more shipowners opt for the scrubber solution as the way to comply with the global sulphur cap rule. With the agreement we have reached with Newport Shipping, shipowners benefit not only from our Green Technologies’ service offering, but drydock availability, a cost-effective means of financing their scrubber retrofits and a scrubber technology that is proven with more than 50 installations.”
Harris-Pye COO Chris David said: “With the global emissions regulation due to enter into force in just over one year, shipowners and operators are realising that exhaust cleaning makes more commercial sense due to the clear payback. Harris-Pye further enhances Newport Shipping offerings by providing a significant scope of in-service work which reduces off-hire time at the shipyard for a more rapid retrofit re-delivery.”
Puyier General Manager Ryan Gao said: “With Newport’s bulk purchase of 100+100 scrubbers we are able to pass on any savings to the shipowner while locking in favourable delivery slots. With major scrubber manufacturers offering lead-times of between 16 to 20 months; our established design, supply chain and manufacturing base provide timely 8-month deliveries for Newport customers.”