The piece examines the financial premium associated with marine fuel scrubber technology during 2020.
Key Data Points:
- At 2020's start, the price spread between 0.5% Low Sulfur Fuel Oil (VLSFO) and 3.5% heavy sulfur fuel oil (HSFO) exceeded $300 per tonne, before collapsing to $70 per tonne in March
- The differential averaged just $60 per tonne in 20Q2
- Forward projections anticipated the gap would increase modestly to $90 per tonne during 2021 and stabilize at an average of $100 per tonne from 2022 through 2024
Primary Insight:
The analysis reflects how global oil price recovery expectations would influence the economic viability of scrubber technology adoption in maritime shipping, with projections suggesting moderate expansion of the cost advantage between compliant and non-compliant fuel oils through the mid-2020s.
