2020 Global Sulphur Limit Legislation

The 2020 Global Sulphur Limit legislation will come into effect on 1 January 2020.

From this date, for all ships operating outside designated Emission Control areas, the International Maritime Organisation (IMO) has set a limit for sulphur in fuel oil used on board ships of 0.50% m/m (mass by mass). This will significantly reduce the amount of sulphur oxide emanating from ships and should have major health and environmental benefits for the world, particularly for populations living close to ports and coasts (further details at: www.imo.org).

This change in legislation means that the MV Helena will no longer be able to burn the mix of clean oil (Marine Gas Oil) and heavy fuel oil (IFO 180) it currently uses. Instead from 1 January, AW Ship Management (AWSML) are forced to purchase and consume compliant fuel as required by the new law.

It is intended that a new low sulphur oil will become available in Cape Town but until this time AWSML will use Marine Gas Oil (MGO) which has a sulphur content below 0.5%. MGO is however more expensive to purchase than heavy fuel oil and has the potential to significantly increase annual fuel costs for the company. 

The impact of this increased cost in fuel will mean that freight rates and transhipment costs are likely to increase. SHG together with AWSML, are exploring options to mitigate against any potential significant increases and will keep the public informed.

SHG/AWSML

22 November 2019

St Helena Government Communications Hub

Telephone: 22470
Email: kimberley.peters@sainthelena.gov.sh