Scorpio Bulkers eyes name change after unsuccessful scrubber gamble

London — Dry bulk turned marine-based renewable energy company Scorpio Bulkers intends to change its name, the company said in a press release Jan. 6, amid a transition that follows diminishing returns on previous fittings of exhaust gas cleaning systems, or scrubbers.

The company will change its name to Eneti Inc., subject to approval at an Extraordinary General Meeting on Feb. 3, it said.

Prior to IMO 2020, a mandate by the International Maritime Organization which lowered the sulfur limit for bunker fuels to 0.5% from Jan. 1, Scorpio had taken the decision to equip a large proportion of its vessels with scrubbers, in order to take advantage of the anticipated spread between fuel for scrubber-fitted and non-scrubber-fitted vessels.

The company listed 47 vessels in its third quarter 2020 report, of which 57% were described as fitted with scrubbers.

When it announced the transition Aug. 3, the company said it had an operating fleet of 55 vessels, including 49 wholly-owned or finance leased dry bulk vessels.

The company is now exiting the dry cargo business and focusing on signing contracts for wind turbine installations.

According to S&P Global Platts data, the premium on a scrubber-fitted Panamax on Jan. 2 was $6,115/d, which has fallen considerably amid limited output of 3.5% sulfur fuel oil and greater-than-expected demand.

Platts assessed the premium at $1,292/d Jan. 6, it reached a low of $528/d on April 27.

By fitting a scrubber, a vessel can avoid buying fuel oil with a maximum sulfur content of 0.5%, the current prevalent fuel that complies with International Maritime Organization emissions regulations. This very low sulfur fuel oil is more expensive than 3.5%S fuel oil, which can only be burnt on scrubber-fitted vessels.