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About Commodity Insights
10 Mar 2022 | 04:50 UTC
By Surabhi Sahu
Highlights
MPA commits additional funds for shipping's decarbonization drive
Blueprint outlines seven key areas of focus
Biofuels, methanol, ammonia, hydrogen herald promise for energy transition
The Maritime and Port Authority of Singapore on March 9 unveiled The Maritime Singapore Decarbonization Blueprint: Working Towards 2050 plan setting out ambitious and concrete long-term strategies to build a sustainable Maritime Singapore, with the MPA committing additional funds of at least S$300 ($220.81) million to support such initiatives.
The Blueprint, developed by the MPA in consultation with industry partners, will contribute to Singapore's commitments under the UN's 2030 Sustainable Development Agenda, Paris Agreement and the Initial IMO Strategy on reduction of GHG emissions from ships, it said in a statement.
It outlines seven key areas of focus. This includes port terminals that will transit to a low-carbon future through the adoption of cleaner energy, automation, and digitalization from 2005 levels by 2030 as well as net zero emissions by 2050.
Other areas include domestic harbor craft; future marine fuels, bunkering standards and infrastructure; Singapore registry of ships; efforts at IMO and other international platforms; research & development and talent; and carbon awareness, carbon accounting and green financing.
As far as domestic harbor craft goes, all harbor craft will operate on low-carbon energy solutions by 2030 and full electric propulsion and net zero fuels by 2050, it said.
Meanwhile, it was also set for continued efforts at IMO and other international platforms as a standard-setter and bridge builder, advocating for strong, credible, and inclusive climate action at the IMO and international fora.
It would also push for research and development and facilitate talent and expertise to develop and deploy innovations, while also promoting Singapore as a green maritime finance hub by promoting a green financing landscape and strengthening carbon accounting and reporting.
The MPA also noted that the industry was set for a multi-fuel bunkering transition to support the future of international shipping, by supplying low and zero-carbon marine fuels including biofuels, methanol, ammonia, and potentially hydrogen, while enabling green technologies such as carbon capture, storage and utilization.
In this direction, the Global Centre for Maritime Decarbonization, or GCMD, was formed on Aug. 1 with funding from MPA and six founding partners -- BHP, BW, DNV Foundation, Eastern Pacific Shipping, Ocean Network Express and Sembcorp Marine -- to aid the maritime industry reduce its carbon emissions as quickly as possible by shaping standards, deploying solutions, financing projects, and fostering collaboration across sectors.
It would also recognize and incentivize owners to operate green ships, working towards 50% of the Singapore Registry of Ships fleet to be green ships by 2050.
In January 2022, GCMD awarded its ammonia bunkering safety study to a DNV-led consortium, with Surbana Jurong and the Singapore Maritime Academy as partners.
The MPA is also part of the Castor Initiative project comprising MISC Berhad, Lloyd's Register, Samsung Heavy Industries and MAN Energy Solutions, Jurong Port and Yara. The Initiative aims to build the world's first ammonia fueled tanker by 2025.
Meanwhile, the city-port has been developing LNG bunkering capabilities under the LNG bunkering pilot program. It has also partnered port administrations to establish a global network of LNG bunker-ready ports and co-funded the construction of LNG-fueled vessels.
In February, MV Mt. Tourmaline, the world's first LNG-fueled Newcastlemax bulk carrier, arrived at Jurong Port in Singapore for her first LNG bunkering operation. The fueling of this ship, which was chartered by BHP from Eastern Pacific Shipping took place through the first LNG bunker vessel in Singapore, the FueLNG Bellina.
Singapore sold a total of 50,000 mt of LNG as bunker fuel last year, and commenced regular ship-to-ship LNG bunkering operations in March 2021.
Singapore is the world's largest bunkering port with its 2021 total marine fuel sales volumes standing at close to 50 million mt, MPA data showed.