Investment Case - Hunter Group ASA

IMO 2020 - Alternatives Install a scrubber • Can continue to run on 3,5%S HFO bunker fuel • Possible to retrofit • • Price/Availability (lead time for delivery) Uncertainty about quality Run on compliant fuels (MGO or LSFO) • 0,5% sulfur fuels on open seas and 0,1% in Emission Control Areas (ECA) Invest in Dual Fuel Engines (LNG or liquid fuels) Expensive and LNG bunker is not commonly available • • LNG makes up around 2.5% of marine fuel consumption, and is not meaningful in a 2020 perspective. Scrap the "thirsty old ladies"/ find alternative use Comments 3 (4) types of Scrubber solutions • Open Loop - in the ocean Closed Loop - stored on board Hybrid Can do both "Scrubber ready" Sulphate is a naturally occurring constituent of seawater. The large amount of sulphate in seawater is derived from volcanic activities and degassing at the seafloor. Further, sulphates reach the oceans via river flows, but the concentration in open seawater remains constant at around 2.65 g/l [8] or about 20kg of Sulphur per ton of seawater. Studies [1] and in field testing [4] confirm that the sulphate increase from exhaust gas scrubbing will be insignificant when compared with the quantity already in the oceans. An analogy that has been used is if all the Sulphur in the world's oceans were to be removed, it would form a layer around the earth about 1.7M thick. All the Sulphur in all the known oil reserves would add only another 10 micron to this layer. (10 microns = 0,01 millimeters) - EGCSA H HUNTER GROUP 4

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