“Unrivalled” de-SOx scrubbing technology … PANASIA reaches out globally 

PANASIA, a Busan-based marine equipment supplier, has attracted attention globally for its scrubbers, and at this point, the company has no rivals in Asia.

Scrubbing technology was designed to comply with the sulfur regulations the International Maritime Organization (IMO) started implementing in 2020. The scrubber uses seawater to remove sulfur in ship exhaust gas emissions.

PANASIA announced on the 10th, “In May, we signed contracts for the deployment of eco-friendly scrubbers for two 114,000dwt AFRAMAX tankers owned by a European shipowner and for two very large ore carriers (VLOC) of 325,000dwt capacity owned by a Korean shipowner.”

- Tightening of marine environmental regulations

- Orders flowing in from domestic and international shipowners 

- Awarded contracts for 21 vessels this year alone

Last February, PANASIA became the first company in Korea to ship a scrubber system that was developed using its own technology. Following the delivery of scrubbers to Woomin Shipping, PANASIA won contracts for 21 additional ships. This represents the largest order ever awarded in Asia.

Soo-tae Lee, CEO of PANASIA, said, “The first order we won from Woomin Shipping was for a small ship. But the orders we recently won are all for large ships. This proves that PANASIA is capable of winning contracts no matter the size of the ship.

PANASIA continues to win scrubber contracts because there is no well-developed infrastructure for LNG supply yet.

As the IMO lowered the sulfur emission limit from 3.5% to 0.5% or less, shipowners are now required to install scrubbers by 2020 to comply with the environmental regulations for sulfur. They should either reduce sulfur, or replace existing fuel with low-sulfur oil or LNG. However, due to the lack of infrastructure for LNG supply, scrubbers have become a reasonable alternative.

Based on its prediction that there would be more scrubber installations on existing ships, PANASIA signed an MOU (photo) with Hanjin Heavy Industries on the 17th last month. Under the contract, Hanjin Heavy Industries is responsible for installing, constructing, and engineering the equipment, while PANASIA supplies scrubbers. CEO Lee said, “We expect that if a shipyard with a competitive advantage works with an equipment supplier, it will win a lot of contracts from international shipping companies. Even though the global shipbuilding industry is in a recession now, diversifying the shipbuilding business will help revitalize local economies, such as through export growth.”