What Changes & Regulation Come to the Intense Shipping Industry?
One of the components of the intense shipping industry is very large crude carriers (VLCCs). New LNG and dual-fuel VLCCs are currently priced with USD 15-20m premium, while scrap prices for VLCCs typically after 20-year are USD 3.5 million. In other words, new LNG and dual-fuel VLCCs will sell up to 20% of their current price in an optimistic mood after 20 years.
VLCC Status in the World
- 826 VLCCs currently on the water
- 181 VLCCs turning 15 years or more by 2022, equal to ~22% of the current fleet (9.5% over 15 years & 12.5% over 20 years)
- VLCCs are designed for 25-30 service lifetime
Hunter Group’s Share
Hunter Tankers has seven identical, world class, eco design, SMART vessels under construction at DAEWOO Shipbuilding & Marine Engineering CO., LTD. (DSME), all to be outfitted with open loop scrubbers from Wärtsila.
Hunter’s VLCCs which were delivered between Q4 2019 and Q3 2020, in time for the new IMO II regime where ship-owners either must equip vessels with scrubbers or use marine gas oil (MGO).
What Changes & Regulation Will Come to the Shipping Industry by 2050?
The power sector would be underpinned by the wide-scale deployment of renewable energy and increasingly flexible power systems, supporting cost-effective integration. The share of renewable energy in the power sector would increase from 25% in 2017 to 85% in 2050. This transformation would require new approaches to power system planning, system and market operations, and regulation and public policy. Renewable electricity would account for just under 60% of total renewable energy use in final energy terms, two and a half times today’s share.
This story is tripartite and will be continued in the third part.