Asia/Pacific News
Hong Kong Low-Sulfur Demand Flat Despite Incentive Scheme
Demand for low-sulfur bunkers in Hong Kong has not risen since the city-state launched a voluntary incentive plan to encourage the use of the lower-emission fuel, Platts reports.
Suppliers in Hong Kong said demand for the 0.5 percent sulfur fuel is the same as before the September 26, 2012 start of the three-year incentive program.
About 12 percent of ocean going vessels that stop at Hong Kong applied for the program between September and December, for a total of 839 ships, an Environmental Protection Department spokesperson told Platts.
Some ship owners who are taking part in the program have complained that the payments provided are lower than the extra cost of using the low-sulfur fuel, putting them at a disadvantage compared with competitors who don't make the switch.
Hong Kong officials are now looking at making the switch to low-sulfur bunkers mandatory, and Undersecretary for the Environment Christine Loh said this week that such a rule could take effect next year.
