Singapore green-proofs its global future
A series of new decarbonisation initiatives are about to spearhead Singapore’s well-resourced ambitions to remain the world’s leading global shipping centre.
At the start of August 2021, the Maritime and Port Authority of Singapore (MPA) set up a new Global Centre for Maritime Decarbonisation (GCMD) to facilitate the development of decarbonisation technology and future marine fuels.
The move is just one of a several recommendations made by the International Advisory Panel on Maritime Decarbonisation (IAP) – formed in 2020 by the Singapore Maritime Foundation (SMF) – which also includes proposals to develop new metrics for carbon accounting and green financing mechanisms.
The MPA has teamed up with a broad range of corporate partners – Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express, Sembcorp Marine, BHP and BW Group – to fund the GCMD, with each private sector partner contributing S$10m (US$7.4m) to establish the centre, with the MPA contributing a further S$60m (US$44m).
Port decarbonisation
A second new MPA initiative is an agreement with the Singapore-headquartered investment company Temasek to explore collaborations related to the decarbonisation of port operations, develop and use of low-carbon and alternative marine energy sources, and decarbonise all other parts of Singapore’s global and regional maritime supply chain.
Singapore has, for the eighth year running, been ranked as the world’s top global shipping centre
“Maritime decarbonisation is a global challenge that requires collective responsibility from all stakeholders – so it’s crucial that we have strong public-private sector partnerships,” said Quah Ley Hoon, MPA’s chief executive. “These two new agreements will catalyse a larger and much needed momentum to help make commercial shipping more sustainable in the future.”
Shell’s hydrogen fuel trials
Shell, meanwhile, has announced it will trial the use of hydrogen fuel cells for ships in Singapore, insisting that hydrogen fuel cells will provide a major boost to the shipping sector in its efforts to achieve net-zero emissions by 2050.
“We see fuel cells and hydrogen as a promising pathway for decarbonising shipping and working with partners in this way will develop our understanding of this critical technology,” said Nick Potter of Shell Shipping and Maritime.
“This trial is a testament to the thriving sector ecosystem in Singapore and is part of our ambition to help accelerate progress towards net-zero emissions in the shipping sector – which is an important pillar of the Singapore economy.”
The initial 12-month trial will see a Proton Exchange Membrane (PEM) fuel cell installed on an existing roll on/roll-off vessel that transports cargo between the Singapore mainland and Shell’s manufacturing site at Pulau Bukom.
Index success
More broadly, Singapore has, for the eighth year running, been ranked as the world’s top global shipping centre by the Xinhua-Baltic International Shipping Centre Development Index, which ranks the performance of locations around the world that provide port and professional services to the shipping industry.
Singapore came out top again due to the size of its port, highly supportive government policies, and numbers of shipbrokers, lawyers, and insurers.
Despite a significant drop in global trade and business disruptions in 2020 because of the pandemic, the relative positions of the world’s leading maritime centres have remained unchanged from last year, with London, Shanghai, Hong Kong and Dubai coming in as the next four strongest centres.
Policy support vital
'The government is playing a critical role in the development of the maritime industry in Singapore – which is worth around seven per cent of Singapore’s GPD,” explained the IMarEST Asia Pacific regional manager, Andrew Wong.
“The MPA's Maritime Cluster Fund, for instance, is another excellent initiative that provides substantial financial support to help both individuals and companies to meet their education and training needs – keeping Singapore’s maritime workforce highly competitive in the ever-changing maritime industry."
Dennis O’Neill is a journalist specialising in maritime.