Asia/Pacific News
INSIGHT: Singapore's MPA Sets Out Further Details of Green and Digital Corridor Scheme With Rotterdam
The Maritime and Port Authority (MPA) of Singapore is considering a range of alternative fuels in its deal with the Port of Rotterdam to set up a 'green and digital corridor' for shipping between the two hubs.
The two authorities announced the plan earlier this month, seeking to collaborate on alternative fuel supply and digitalisation with the aim of seeing the first sustainable vessels moving between the two hubs by 2027.
"To this end, MPA and the Port of Rotterdam are exploring a variety of low and zero-carbon fuels, including biofuels, hydrogen and its carriers (ammonia, e-methanol), as aligned with the multi-fuel bunkering transition in shipping," an MPA representative told Ship & Bunker.
Bio- and synthetic LNG could also be included within these categories.
"Over the course of the next five years, MPA expects successful early pilots be scaled up to aid in more sustainable international shipping," the representative said.
The authority acknowledges that current high prices for both conventional and alternative fuels may limit investment into the move to alternative fuels, but said work is being carried out by all stakeholders to encourage the shift.
VLSFO prices in Singapore are currently 49.8% higher than at this time last year, according to Ship & Bunker prices, while LNG bunkers priced in fuel oil terms at Rotterdam are up by 263% on the year.
"The transition of international shipping to greener and more sustainable marine fuels is a complex global challenge that calls for concerted global action by all stakeholders concerned," the representative said.
"Bunker fuel prices are only one aspect of the challenge.
"It requires upstream R&D in trialling different technologies and fuel solutions as well as setting relevant standards and regulations.
"It will also require work further downstream to establish a network of infrastructure to support the bunkering of these alternative marine fuels.
"There will also be a need to build capabilities in carbon awareness and carbon accounting in shipping companies."
The MPA has already launched a range of initiatives aimed at encouraging the elimination of carbon emissions from shipping.
"In terms of specific incentives for ships, MPA enhanced the Green Ship Programme (GSP) and Green Port Programme (GPP) under the Maritime Singapore Green Initiative last year," the representative said.
"The GSP incentivises Singapore-registered ships to adopt energy efficient ship designs beyond IMO's Energy Efficiency Design Index (EEDI) requirements by 10% as well as the use of engines capable of running on zero or low-carbon fuels through rebates on initial registration fees and annual tonnage taxes.
"Under the GPP, vessels running on low or zero carbon fuel or EEDI reduction exceeding the IMO Phase 3 EEDI requirement by 10% or more, will be able to enjoy port dues concessions when calling the Port of Singapore."
