Asia/Pacific News
Hong Kong Low Sulfur Fuel Switching Incentive Scheme Expanded to Include LNG And Other Tech
Hong Kong's Environmental Protection Department (EPD) Monday announced it is accepting applications for its extended at-berth fuel switching incentive scheme, and that additional fuels and technologies will now qualify under the programme.
Originally launched in 2012 and intended to run for three years, the scheme was recently extended by 30 months despite the upcoming July 1, 2015 introduction of a mandatory 0.5 percent cap on the sulfur content in marine fuel for ocean-going vessels (OGV) berthed in Hong Kong.
The original incentive scheme reduces by half the port facilities and light dues levied on OGVs that switch to fuel with a maximum sulfur content of 0.50 percent by weight when at-berth.
Under the extended scheme, the scope will expand on July 1 to cover OGVs not only using approved fuel, but also liquefied natural gas (LNG) or technology that can achieve sulfur dioxide (SO2) emission reduction as effectively as low sulfur fuel while at berth.
Such technology typically involves an exhaust gas cleaning system, also known as a scrubber.
The Government estimates that switching to cleaner fuel while at berth can reduce total SO2 emission in Hong Kong by 12 percent.
The EPD advises OGV owners, operators or their agents registered under the current incentive scheme to apply for registration for the extended scheme before September 26 this year.
Last month when the Government of Hong Kong said it would extend the incentive scheme by 30 months to March of 2018, it said the move would "help the shipping industry cope with the increased operating costs of the fuel switch during the transitional period."
