Wärtsilä and Clean Marine Energy (Europe) (CME) have signed an agreement to provide a funding solution to ship owners seeking to install exhaust gas cleaning technology.
This development is expected to reduce the financial burden on ship owners planning to equip their vessels with scrubber systems in order to meet sulphur emissions legislation.
Wärtsilä Environmental Solutions vice-president Juha Kytölä said: "This funding concept enables ship owners to increase the value of their asset without taking on additional debt, thereby making it easier to achieve long-term compliance with increasingly stringent environmental legislation."
With this solution, ship owners will be able to repay the cost of the scrubber system installation through a fuel adder, which is a fuel premium on the price of heavy fuel oil (HFO).
This method will offer a return from the differential between HFO and marine gasoil (MGO) for a period of four to six years, depending on price spreads, Wärtsilä said.
CME Europe co-founder and director Pace Ralli said: "The shipping industry is faced with a number of environmental regulations right now, often with a significant capital burden.
"Despite lower fuel costs, there is an even greater spread between HFO and MGO; as much as 90% in some cases. This allows us to inject capital to pay for the installation of a scrubber, allow the ship owner some of the benefits of continuing to burn HFO and still take out a return."
Wärtsilä and CME will provide the financed installation and maintenance of scrubbers through CME’s Emissions Compliance Service Agreement (ECSA).