Hyundai Merchant Marine signs deal to fund scrubbers

   Hyundai Merchant Marine said Thursday that it has signed a memorandum of understanding to establish a fund for scrubber installation in preparation for the International Maritime Organization requirement that ships reduce sulfur emissions in their engine exhaust by either using low-sulfur fuel or installing exhaust scrubbers.
   HMM, based in South Korea, plans to complete the scrubber installation on 19 containerships it currently operates by the first half of 2020.
   Also this week, the Japanese shipping company NYK said it had entered into a 9 billion yen ($81.8 million) syndicated loan agreement, with the proceeds devoted to buying and installing emission scrubbers. Nine financial institutions are participating in the syndicated loan, the first to be certified by Japan Credit Rating Agency Ltd. with its highest ranking of “Green 1,” demonstrating the loan to be aligned with the core components of the Green Loan Principles.
   HMM said it will invest 153.3 billion South Korean won ($135 million). That will include a 46 billion won investment by HMM, a loan of 62.3 billion from the Korea Ocean Business Corporation, a public corporation, and 45 billion won invested by five companies — Hyundai Corporation, SKTI, Hyundai Global Service, DSEC and PANASIA,” HMM said.
   HMM said those five companies will get the first priority for the contract negotiation for long-term fuel supply, supply of scrubber equipment and scrubber installation. 
   HMM noted it has installed scrubbers on two 11,000-TEU containerships, HMM Promise and HMM Blessing, which were delivered  last August from Hanjin Heavy Industries & Construction. It said those two ships are the world’s first containerships with more than 11,000 TEUs to be equipped with large scrubber systems.
   HMM also said that it is installing scrubbers on five VLCCs and plans to install scrubbers on 20 new containerships, including 12 containerships with 23,000-TEU capacity that are expected for delivery in the second quarter of 2020.