In the dynamic landscape of the maritime industry, Zhejiang Energy Marine Environmental Technology Co., Ltd. (ZEME), a subsidiary of Zhejiang Energy Group, has emerged as a pivotal player for vessel scrubber systems.
As of March 2024, ZEME has inked a substantial total of 290 vessel scrubber orders in the first quarter alone. These orders encompass both retrofitting and new-building projects, with retrofitting projects constituting approximately 60% and new-building projects comprising the remaining 40%.
This surge in orders reflects the growing demand within the scrubber market, indicating the prevailing projections within the shipping industry regarding the sustained disparity between high and low sulphur oil prices. Moreover, it highlights the unwavering confidence of shipowners in the efficacy of ZEME's scrubber products.
Statistical data reveals that since January 2024, the gap between high and low sulfur oil prices has steadily widened, acting as a catalyst for the resurgence in market interest surrounding scrubber solutions. For instance, taking into account the fuel price differentials at the port of Singapore, the variance between high and low sulfur oil prices has consistently exceeded $150 per ton since mid-January 2024, peaking at over $200 per ton at certain points.
In light of this, ZEME's Turnkey mode for installation presents as an attractive feature for shipowners seeking to capitalise on the cost differentials. For instance, considering a container vessel with an annual fuel consumption of 15,000 tons and leveraging ZEME's Turnkey mode for scrubber installation, the return on investment cycle is estimated to be slightly over one year, emphasising the significant potential returns on investment.
ZEME's prominence in the ship desulfurization market is further accentuated by its delivery of nearly 40% of newly installed scrubber systems worldwide, as per Clarkson's 2023 report. This substantial market share can be attributed to ZEME's commitment to providing comprehensive contract services, characterised by high efficiency installation speeds, flexible payment options, and top-tier after-sales service.
Impressively, over 80% of ZEME's new orders stem from the continued backing of its esteemed clientele. In a strategic move aimed at enhancing its product portfolio and addressing the needs of small and medium-sized vessels, ZEME introduced an "exposed-tower" type scrubber in 2023. This innovative solution streamlines the system's aesthetic layout while also reducing manufacturing costs and installation lead times. Notably, the exposed-tower design also facilitates a shorter investment return period compared to traditional scrubber towers.
Moreover, in accordance with the Sino-US Sunnylands statement disclosed in mid-November 2023, the next 6 years are positioned to witness a strong promotion of the Carbon Capture, Utilization, and Storage (CCUS) system. Notably, desulfurization emerges as a foundational requirement for the successful implementation of the Marine CCUS system.
Anticipating this industry shift, ZEME has proactively enhanced its vessel scrubber systems to offer CCUS-ready solutions, thus ensuring readiness to cater to the future installation demands of customers embracing CCUS technologies. In essence, ZEME's steadfast commitment to excellence, coupled with its proactive approach to innovation and market adaptation, positions the company as a pioneer in the maritime desulfurization landscape.
As the industry continues to navigate regulatory and economic challenges, ZEME stands ready to deliver cutting-edge solutions that empower shipowners to navigate a path towards a greener, more sustainable future.
For more information about ZEME, please contact wangjuan@zeme-china.com.
source: ZEME
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