HMM to Set Up Scrubber Installation Fund

South Korean shipping company Hyundai Merchant Marine has signed a memorandum of understanding (MoU) to establish a win-win fund for scrubber installation.

HMM plans to complete the scrubber installation on its 19 containerships currently operated by the first half of 2020.

The total investment amount will be KRW 153.3 billion (USD 135.8 million) which consists of HMM’s investment of KRW 46 billion. The remainder of KRW 107.3 billion includes Korea Ocean Business Corporation’s guaranteed loan of KRW 62.3 billion and a win-win fund of KRW 45 billion invested by five companies, Hyundai Corporation, SKTI, Hyundai Global Service, DSEC, and PANASIA.

The five companies will get the first priority for the contract negotiation for long-term fuel supply, supply of scrubber equipment, and scrubber installation, according to HMM.

HMM’s preparation for the IMO 2020 included installation of scrubbers on its recently built vessels at an early stage. Namely, two 11,000 TEU containerships, HMM Promise and HMM Blessing, are the world’s first commercially operating mega container vessels of more than 11,000 TEUs equipped with large scrubber systems. Additionally, HMM’s five 300,000 dwt VLCCs, starting delivery from January 2019, are also retrofitted scrubbers.

The company also plans to install scrubbers on the newly ordered twenty eco-friendly mega containerships, including twelve 23,000 TEU vessels which are expected for delivery in the second quarter of 2020.

“As the IMO’s new environmental regulation is expected to impose a heavy burden on shipowners, carriers not properly prepared for the IMO 2020 will be in a huge trouble,” HMM official said.

“Thus, HMM will fully prepare for the IMO 2020 during the remaining period and will take this regulation an opportunity for a quantum leap.”