Port & Regulatory

Singapore: MPA calls for financiers and insurers to support adoption of electric harbour craft

EOI was issued requesting financial institutions and intermediaries, as well as marine insurance providers and brokers, to submit proposals to make financing viable and attractive for adoption of these craft.

Published

1 year ago

October 20, 2023

Admin

The Maritime and Port Authority of Singapore (MPA) on Thursday (19 October) launched an Expression of Interest (EOI) today inviting financial institutions and intermediaries, as well as marine insurance providers and brokers, to submit proposals to accelerate the adoption of electric harbour craft in Singapore.

This EOI will help drive the adoption of electric harbour craft among owners and operators of harbour craft in Singapore.

As part of their proposal for financing and / or insurance solutions, EOI participants are expected to assess and propose the demand planning parameters for electric harbour craft in the port of Singapore, which would provide sufficient scale to make financing viable and attractive for the adoption of these craft. As a guide, participants may consider an aggregated fleet of 50 electric harbour craft as an initial demand planning parameter. EOI participants may also propose other portfolio sizes.

For the insurance component of the EOI, participants are expected to propose insurance solutions to address various elements of operating electric harbour craft, such as hull & machinery and / or protection & indemnity. Please refer to the Annex for details of the EOI.

Mr Teo Eng Dih, Chief Executive of MPA, said: “The harbour craft sector is an integral part of our port ecosystem. To accelerate the adoption of electric harbour craft, financial institutions and insurers can play important roles to provide solutions that can help lower the barriers to support early adopters.”

“This will support the financing and insurance of selected consortiums in the earlier Expression of Interest on the design and development of electric harbour craft reference designs. We invite interested parties and institutions to put forth their ideas.”

Interested participants can visit the go.gov.sg/mpa-eoi-ehc-financing for detailed information and submission guidelines. All proposals must be submitted by 19 December 2023, 2359 hrs (Singapore time).

By 2050, the harbour craft, pleasure craft and tug boat sectors are required to achieve net-zero emissions. To achieve the target, from 2030, all new harbour craft operating in the Port of Singapore must be fully electric, be capable of using B100 biofuel, or be compatible with net zero fuels such as hydrogen. The EOI follows from an earlier EOI launched in July 2023 for the design and development of best-in-class electric harbour craft reference designs to support early adopters of electric harbour craft.

Manifold Times previously reported MPA launching an EOI on 10 July to invite parties to submit proposals to design and promote adoption of full-electric harbour craft in Singapore.

Later in August, it also issued a call for proposal (CFP) to develop, commission, maintain, and operate electric harbour craft (e-HC) charging points at Jurong Port, Marina South Pier, Pasir Panjang Ferry Terminal, PSA Marine - West Coast Base, and Sebarok Terminal together with the existing licensees and operators of these sites.

Photo credit: Maritime and Port Authority of Singapore
Published: 20 October, 2023

Up Next

Shipping needs act quickly to achieve 5% zero-emission bunker fuel target by 2030, report warns

Don't Miss

GCMD highlights bunker fuel pilots and trials in inaugural Impact Report

Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

10 hours ago

December 2, 2024

Admin

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024

LNG Bunkering

Molgas commences LNG bunkering operations in United Kingdom

Firm successfully completed the first LNG bunkering of “MV Glen Sannox” since the ship was handed over to CalMac Ferries Limited last week.

Published

11 hours ago

December 2, 2024

Admin

Molgas commences LNG bunkering operations in United Kingdom

Molgas Group on Friday (29 November) said it successfully completed the first LNG bunkering of the MV Glen Sannox since the ship was handed over to CalMac Ferries Limited last week, marking its entry into the United Kingdom.

“We would like to thank CalMac Ferries Limited and Ferguson Marine (Port Glasgow) Limited for their trust and long-term collaboration,” the firm said in a social media post.

“This project not only represents a significant step forward in the adoption of cleaner fuels in the maritime industry of the United Kingdom but also for the expansion of our Pan-European Supply Network for the Marine Segment to receive (bio)LNG via various supply assets across multiple countries and ports.”

Photo credit: Molgas Group
Published: 2 December, 2024

Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

Information shared by the Methanol Institute meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Published

11 hours ago

December 2, 2024

Admin

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 38.6 to 39.9 Mt by 2030

The Methanol Institute recently shared with Manifold Times the renewable and low-carbon methanol project pipeline November 2024 release produced by Finland-based GENA Solutions Oy (Green Energy Analytics).

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key highlights of the November 2024 release are as follows:

The renewable methanol project pipeline increased from 30.5 Mt in October to 31.8 Mt in November (+1.3 Mt). The total renewable and low-carbon methanol project pipeline grew from 38.6 Mt to 39.9 Mt.
As of November 2024, GENA tracks 113 e-methanol plants and projects with total capacity of 18.7 Mt (+0.6 Mt), 77 biomethanol plants and projects with total capacity of 13.1 Mt (+0.7 Mt), and 14 low-carbon methanol plants and projects with total capacity of 8.1 Mt.
Eight projects were added in the November release: four in China, three in Europe and one in Africa. One project was excluded from the Project Navigator due to a change in the final product.
One e-methanol project has started construction in the last month. One small-scale e-methanol plant has started production. Currently, 2.6 Mt of renewable methanol facilities are either operational or under construction.
We estimate that renewable methanol capacity by 2030 could reach 7–14 Mt (22–44% of the project pipeline). However, a lack of long-term off-take agreements and insufficient state support may result in a lower capacity range of 3–7 Mt.