The republic has made itself a world-class resource for shipping’s transition away from fossil fuels as our new magazine details.
Grab a pencil and draw in the lines of all the proposed green shipping corridors around the globe, and readers will notice that the crossroads of world trade – Singapore – lies at the nexus of many of these new fuel routes.
This green preemptive positioning is not by accident – the canny folk at the Maritime and Port Authority (MPA) of Singapore have ensured – absent of being able to produce the alternate fuels themselves on home soil – that Singapore, the world’s largest bunkering hub, will still be very much at the centre of shipping’s green transition with new fuel links acting as petri-dishes between the Lion Republic and the US, Europe and Australia among others.
Multi-fuel commitments
Singapore is preparing for a multi-fuel future, and has assembled some of the best brain power on the planet when it comes to prepping for the green transition, many of whom work for the Global Centre for Maritime Decarbonisation (GCMD).
Formed two years ago with funding from the MPA, and six founding partners, namely BHP, BW, DNV Foundation, Eastern Pacific Shipping, Ocean Network Express and Sembcorp Marine, GCMD was established as a non-profit organisation to support decarbonisation of the maritime industry to meet or exceed the International Maritime Organization’s (IMO) goals for 2030 and 2050.
“Singapore recognised early on that decarbonisation is crucial,” says Raymond Peter, managing director of BSM Singapore. The port is now geared up to handle LNG, methanol, biofuels, ammonia and hydrogen, he says.
The Singapore government has set itself a target of achieving net zero emissions by 2050, which will require all sectors, including maritime, to establish clear goals and roadmaps to achieve this.
“It is encouraging to note that with the new national target, the MPA has announced that all newbuilding harbour crafts operating in Singapore waters must be zero-emission ready by 2030 through electrification, using 100% biofuel or zero-emissions hydrogen-based fuels,” says Dr Shahrin Osman,·DNV’s regional head of maritime advisory.
To accurately monitor progress towards this goal, Osman suggests that an emission-reporting regime is necessary to establish an accurate baseline and track emission reductions.
As well as the multi-fuel preparations, collaborations with other industries and nations are ongoing, while Rama Chandran, head of marine at QBE Singapore, says carbon capture and the requirement for shore receiving facilities are being “heavily discussed”.
“Though we are at the early stages of finding the right options, the roadmap is clearly being formed,” Chandran relays.
Hurdles
“Without policy measures, interventions and bottom-up initiatives, the industry may find it challenging to invest in green solutions to meet the emissions target,” DNV’s Osman says.
Morten Ostergaard Jacobsen, managing director of Asian operations for bunker supplier Monjasa, says Singapore is at a disadvantage when it comes to producing its own green-powered alternative fuels such as green methanol and green ammonia, which will demand additional resources for energy import.
There’s also the familiar concerns about suitable talent for this transition – a theme that populates many of the pages of this magazine.
“Decarbonisation and sustainability skills and experience are in short supply and Singapore is competing with Copenhagen, which are the two main centres,” says Heidi Heseltine, who heads up Halcyon Recruitment.
Concluding, BSM’s Peter tells Splash: “No doubt, the transition to a greener future will involve costs and trade-offs, but there is no alternative.”
This article is one of many reports carried in our brand new 56-page Singapore Market Report. Splash readers can access the full magazine for free by clicking here.
