This is a legacy page. Please click here to view the latest version.
Thu 2 Oct 2014, 10:45 GMT

Shenzhen praised for fuel switch scheme


New voluntary scheme means that ship operators will receive a subsidy for switching to fuel with a lower sulphur content.



Hong Kong public policy think tank, Civic Exchange, says it supports Shenzhen's latest initiatives to reduce ship and port emissions, which include a new subsidized fuel switch scheme.

The People's Government of Shenzhen Municipality last week announced the launch of an incentive scheme of up to CNY 200 million (US$32.49 million) a year. Under the scheme, port and ship operators will be encouraged to install and use onshore power, and ocean-going vessels to switch to the use of low sulphur fuel of not more than 0.5 per cent sulphur content while berthing, both on a voluntary basis.

Different levels of subsidy are to be provided to cover the cost of the installation, maintenance and electricity use of onshore power facilities. Under the scheme, ship operators will receive a subsidy to cover 75 percent to 100 percent of the cost of fuel switching, depending on the fuel’s sulphur content.

"This is a significant step taken by Shenzhen to address air pollution and to protect public health," Civic Exchange said in a statement.

Since 2013, Shenzhen has become the third largest container port in the world. Most of the ocean-going vessels calling at Shenzhen burn heavy fuel oil with about 3 percent sulphur content. It is estimated that approximately 66 per cent of Shenzhen’s sulphur dioxide emissions, 14 percent of nitrogen oxide, 6 percent of fine particulates (PM2.5) are contributed by port and ship sources.

"This is a milestone in Shenzhen's ship emission control and air quality management policy development," said Simon Ng, Chief Research Officer of Civic Exchange. "First, Shenzhen clearly acknowledges the ship and port sector as a major emission source that needs to be addressed swiftly. Second, government agencies responsible for transport, environmental protection, maritime safety, and city planning are working closely with the private sector in tackling air pollution. Third, they are starting with voluntary actions supported by government incentive, which could potentially pave the way for mandatory requirement in the future. Fourth, Shenzhen’s scheme will benefit the Pearl River Delta (PRD) region as a whole in air pollution reduction and public health protection. The collaborative effort between Shenzhen and Hong Kong over the years is now bearing fruits. It highlights the importance of regional cooperation."

On the issue of air pollution caused by ships in Hong Kong, the public policy think tank said: "Civic Exchange has been actively researching the extent and impact of ship emissions in Hong Kong and the PRD region. We also facilitated the launch of the Fair Winds Charter in Hong Kong, a voluntary at-berth fuel switching scheme led by the shipping industry since 2011, and the drive towards regulatory control over ship emissions in Hong Kong. In the long run, Civic Exchange calls for tighter and uniform standards across the PRD region through the establishment of an emission control area in the PRD waters under the regulation of the International Maritime Organization. This is in line with the long-term vision of both the Hong Kong and Shenzhen governments."


GRSE and ONGC contract signing. GRSE signs contract with ONGC to build four hybrid platform supply vessels  

Indian shipbuilder adds offshore support vessels to its portfolio with hybrid propulsion contract for state oil firm.

Felicitas vessel. AMS Barging christens methanol-ready tanker as fleet reaches 17 vessels  

Dutch inland shipping company adds 9,000-cbm diesel-electric tanker Felicitas, designed for future conversion to methanol bunkering.

Estonia's fully-electric ferry render. Steerprop to supply next-generation CRP units for Estonia's first electric ferry  

Finnish propulsion specialist Steerprop will equip a CRIST-built electric ferry with upgraded contra-rotating propeller technology for the Estonian State Fleet.

BGN and HD HHI contract signing. BGN orders four more dual-fuel LPG carriers from HD Hyundai Heavy Industries  

New contract brings BGN's 2026 orders with HD HHI to 10 vessels and will increase its owned VLGC fleet to 23 ships.

Shenghang Yongle ship-to-ship (STS) bunkering operation. World's first ship-to-ship green ammonia bunkering operation completed in China  

Shenghang Yongle supplied 1,000 tonnes of green ammonia to CMB.Tech's Mineral Europa, connecting the fuel's full supply chain.

CMA CGM Lorenzaccio naming ceremony. 15,000-TEU methanol-powered boxship named CMA CGM Lorenzaccio  

French carrier adds literature-inspired vessel to its methanol-powered fleet for deployment on the REX2 service.

China Zorrilla vessel. Battery-electric ferries grow in scale as aluminium multihulls gain market share  

DNV highlights the rise of battery-electric aluminium ferries, spotlighting the delivery of the world's largest such vessel.

Bjorn Hauschild, IBT Bunkering & Trading. IBT Bunkering & Trading appoints Sales Support Specialist  

Björn Hauschild joins from shipyard broker CombiTrade.

Haiyang Shiyou 301 ship-to-ship (STS) LNG bunkering operation. CLPe and CNOOC complete Hong Kong's first LNG bunkering of a pure car and truck carrier  

Ship-to-ship operation delivered around 2,600 cbm of LNG to dual-fuel vessel AICC Fenghuang.

Mercuria logo. Mercuria seeks senior sales and account manager for bunker delivery platform  

Role can be based either remotely or at one of its offices in London, Geneva, Athens or Las Palmas.


↑  Back to Top