Published September 2018
The International Maritime Organization (IMO) MARPOL directive to limit sulfur oxide (Sox) emissions by limiting sulfur in marine bunkers to 0.5%—or by alternate means such as installing exhaust gas cleaning systems (EGCS) or combusting a low-sulfur fuel—is set to kick in on 1 January 2020. This decision, so far, promises to bring uncertainty to the market. This report examines the options available to various stakeholders, both refinery and maritime.
Specifically, the options available to maritime stakeholders examined in this report include:
- Installing an EGCS to meet emissions requirements
- Combusting a low-sulfur fuel such as liquefied natural gas (LNG)/liquefied petroleum gas (LPG) or methanol
The options available to refiners examined in this report include:
- Processing low-sulfur crudes
- Installing delayed cokers
- Installing hydrocrackers
- Installing hydrotreaters
In this report, we will provide investigative information that sets the background for looking at these different options. The technologies are then described in relative detail, and the economics are worked out to evaluate the feasibility via payback of the various options. A risk analysis is also done for the stakeholders’ options, and a risk ranking is presented.
Spreadsheets for the economics of the various options available to stakeholders are provided as a part of this report, and the user can tailor the economics to their individual needs.