Nine pathways to support decarbonisation in the maritime industry

The IAP is co-chaired by Mr Andreas Sohmen-Pao, Chairman of the Singapore Maritime Foundation, together with Mr Wong Weng Sun, Chairman of the Board and Governing Council of the Singapore Maritime Institute. It comprises 28 other leaders from maritime and related organisations, including shipping associations, shipping companies, port operators, energy companies, engine makers, shipyards, insurance and finance players, as well as academia.

To achieve this vision, the IAP has recommended focusing on four strategic objectives: (1) harmonise standards; (2) implement new solutions; (3) finance projects; and (4) collaborate with partners.

Recognising the importance of taking action and collaborating for change, the IAP has further identified joint projects to embark on. These projects include conducting fuel and electrification trials for vessels and setting up a decarbonisation centre in Singapore.

In his opening address, Mr Sohmen-Pao said that the strategies represent the IAP’s collective vision for how Singapore can contribute to the global effort to reduce GHG emissions from international shipping. He noted that decarbonisation of the industry would require multiple paths of action, and the collective effort of public and private stakeholders. IAP co-chair Mr Wong added that the release of the IAP’s recommendations was a milestone in the journey towards maritime decarbonisation. In addition, Senior Minister of State for Ministry of Foreign Affairs and Ministry of Transport, Mr Chee Hong Tat said

We thank the IAP for the significant effort and thought which went into producing the report. We will consider their recommendations when developing the Maritime Singapore Decarbonisation Blueprint 2050. The fight against climate change is a global ambition and a collective responsibility. Singapore is committed to do our part to support the IMO and the international maritime community in climate action.

THE 9 DECARBONISATION PATHWAYS FOR THE GLOBAL MARITIME INDUSTRY – ACTION AND COLLABORATION 

#1 Shape common metrics for carbon accounting

• Map out GHG metrics currently used.
• Evaluate lifecycle carbon cost.
• Improve monitoring, reporting, verification and transparency through collaborations
• Develop IT platforms to measure and benchmark the carbon impact of different operating or navigational parameters.
• Build upon the IMO’s Data Collection System to create a registry for maritime related GHG emissions.
• Establish a centre to coordinate the harmonisation of carbon footprint measurements.

#2 Set standards for new technologies and solutions

• Develop a global common standard for improved efficiency through JIT arrivals.
• Harmonise data standards to ensure interoperability across port community systems, with a platform for the secure sharing of data.
• Develop safety standards for bunkering and regulatory frameworks for the handling of alternative fuels.
• Gather and disseminate knowledge on the potential impact of technical and operational solutions on carbon emissions, for instance, through a decarbonisation centre.

#3 Pilot trials and deploy solutions

• Promote a consortium approach towards the design of pilot projects.
• Create a platform for the sharing of findings from pilot projects.
• Launch a programme to fund a larger number of feasibility studies and pilot projects

#4 Build flexible ship capabilities and relevant infrastructure

• Support projects which allow for future transition to zero-carbon fuels.
• Create flexible ship capabilities and port infrastructure which allows multiple fuels to be supplied, and ensure safety standards in the development of such infrastructure.
• Track the readiness of fuel solutions for adoption.

#5 Develop green financing mechanisms

• Develop green financing schemes to support investments.
• Co-create leasing schemes or financing vehicles to defray upfront cost of new investments.
• Explore schemes to close the price gap between existing and new fuels.
• Offer incentives to distribute the cost burden among different parties.
• Explore schemes to increase carbon footprint disclosure of maritime financial products.

#6 Develop mechanisms that could support carbon pricing

• Press for carbon cost to be included in the fuel price.
• Develop and apply mechanisms for the verification and collection of funds that maximise acceptability and practicality.
• Explore offsets or in-setting as a complementary path to carbon reduction

#7 Act as custodian for and deploy research and development funds and grants

• Establish a global funding scheme that collects contributions related to bunker consumption (or other suitable metrics), to be deployed for acceleration of maritime decarbonisation.

#8 Multiply local, regional and global collaboration across stakeholders

• Establish a coalition of ports to develop solutions on a level playing field.
• Strengthen communication and information flows among stakeholders in the port ecosystem.
• Ensure collaborations include all stakeholder types, and enable interconnection with other like-minded organisations

#9 Set up a decarbonisation centre

• Establish a global decarbonisation centre in Singapore that serves as a regional node in a global network of similar centres.
• Leverage the centre to coordinate, drive and sustain decarbonisation efforts.

JOINT PROJECTS IDENTIFIED BY THE IAP

ESTABLISH A DECARBONISATION CENTRE

MPA will set up a maritime decarbonisation centre, with joint contribution from the industry. BW Group, Eastern Pacific Shipping (EPS), Ocean Network Express (ONE), Sembcorp Marine, The Foundation Det Norske Veritas and BHP have committed towards funding for the establishment of the centre.

COLLABORATE WITH GLOBAL DECARBONISATION CENTRES

The decarbonisation centre and the Maritime Energy and Sustainable Development (MESD) Centre of Excellence in Singapore will collaborate with global centres such as the Mærsk McKinney Møller Center for Zero Carbon Shipping.

EXPLORE FUTURE FUEL TRIALS FOR REGIONAL CONTAINER FEEDER VESSELS

MPA and ONE are exploring a coalition with other liner companies and feeder operators to advance decarbonisation solutions for regional container services. Stakeholders, such as classification societies, fuel suppliers and cargo interests, will be involved too.

EXPLORE BIOFUEL TRIAL FOR TRAMP SERVICES

MPA and Eastern Pacific Shipping are considering trialling biofuel bunkering at the Port of Singapore in collaboration with relevant partners such as a biofuel supplier.

ELECTRIFICATION OF PULAU BUKOM FERRIES

Shell Eastern Trading is exploring the electrification of its ferries calling at Pulau Bukom, which is used to ferry workers between Pulau Bukom and the main island of Singapore.

RETROFIT AND CONSTRUCT NEWBUILD VESSELS TO USE METHANOL AND AMMONIA AS MARINE FUEL

EPS, OCI N.V. (OCI) and MAN Energy Solutions (MAN) have signed a MoU to develop methanol and ammonia as marine fuels. Conventional vessels from EPS’s existing fleet that uses MAN engines will be retrofitted to run on methanol and ammonia supplied by OCI. EPS will also construct newbuild methanol and ammonia-powered vessels using MAN engines.

EXPLORE GREEN AMMONIA BUNKERING IN SINGAPORE

A.P. Møller-Mærsk A/S, Fleet Management Limited, Keppel Offshore & Marine, Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, Sumitomo Corporation and Yara International have signed a MoU to conduct a feasibility study. This aims to establish an end-to-end supply chain to provide green ammonia ship-to-ship bunkering at the Port of Singapore.

CONDUCT JOINT WORKSHOPS ON AMMONIA AS A MARINE FUEL

DNV and MPA are looking to engage selected shipowners interested in exploring the use of ammonia as zero-emission fuel. This could be through workshops to address the production and utilisation of ammonia, its availability and future pricing.

STUDY SUBSEA STORAGE OF GREEN AMMONIA

ABS will partner NOV on “Subsea Ammonia Energy Storage System” to address existing challenges with green ammonia as a route towards the hydrogen economy. The research project will study a novel method of storing, recovering and transporting green ammonia in the most optimal way. The end goal is to increase the ease and safety of storing green ammonia and the efficient fuelling of shipping vessels.

EXPLORE CROSS INDUSTRY COLLABORATION FOR HYDROGEN AND SOLID OXIDE FUEL CELL TRIAL

MPA is looking at collaborating with interested parties such as Shell Eastern Trading and Corvus Energy to test hydrogen and solid oxide fuel cells in Singapore. Shipyards such as Sembcorp Marine and hydrogen frontrunners such as CMB could be involved.

EXPLORE CARBON CAPTURE TECHNOLOGY ONBOARD VESSELS

MPA is looking at working with parties such as Pacific Carriers Limited and Sembcorp Marine to investigate the technical and economic feasibility of installing carbon capture technology on board vessels.

DEVELOP JUST-IN-TIME OPERATIONS

MPA has embarked on digitalPORT@SGTM which will facilitate just-in-time operations at the Port of Singapore, and will collaborate with stakeholders to harmonise efforts through its digitalOCEANSTM initiative. The Singapore Shipping Association has been working with MPA on this front, and liner companies such as Pacific International Lines may participate through sharing of data.

PUBLISH CARBON FOOTPRINT FOR COMMONLY-PLIED MARITIME TRADE ROUTES

The Baltic Exchange could explore publishing carbon footprint measurements tagged to the Baltic routes. This could be in consultation with academic experts at University College London and existing efforts such as the Sea Cargo Charter. MPA could support this by soliciting industry feedback on the computation methodology and trial numbers.

EXAMINE POSSIBILITY OF DEVELOPING VOLUNTARY TRADING OF MARITIME OFFSETS

The Baltic Exchange and the Singapore Exchange are exploring the trading of maritime offset credits to create a voluntary carbon market. In its concept development phase, MPA could facilitate industry consultation for feedback on the idea and sizing of demand

EXPLORE MORE BY READING THE REPORT HERE