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."


Participants of SSA training course. SSA launches green fuels training course ahead of low-carbon transition  

The Singapore Shipping Association has introduced a course covering alternative marine fuels and emissions frameworks.

The Nautical Institute (NI) logo. The Nautical Institute launches bunkering and engineering assessors course  

New programme targets behavioural competency and human factors in high-risk shipboard operations.

Quasar Conservation vesel render. ABB retrofits expedition yacht with hybrid-electric propulsion for Galápagos operations  

The conversion will make the 1970s-built vessel the first hybrid-electric yacht of its type in the archipelago, says ABB.

Grande Svezia vessel. Grimaldi christens ammonia-ready car carrier Grande Svezia at Swedish port  

Grimaldi Group's new PCTC, delivered in December 2025, claims fuel savings of up to 50%.

CMA CGM Notre Dame vessel. CMA CGM Notre Dame sets sail as world’s largest LNG-powered container ship  

The 24,212-teu vessel leads a series of ten next-generation French-flagged ships.

IMO building with national flags. IMO seeks head of climate action and clean air section  

London-based role to oversee GHG emissions reduction and air pollution prevention from ships.

Sustainable maritime fuel supply chain report graphic. Strategic port hubs could accelerate sustainable marine fuel adoption, report finds  

Lloyd’s Register Maritime Decarbonisation Hub identifies priority ports and trade routes for alternative fuel infrastructure.

Illustration of a high-speed dual-fuel engine. Nanni develops first high-speed methanol dual-fuel engine with ScandiNAOS  

French manufacturer tests John Deere-based genset running on 70% methanol, 30% diesel blend.

Capital's LNG dual-fuel tanker vessel. New Times Shipbuilding delivers LNG dual-fuel tanker to Capital  

Chinese shipyard hands over 112,500-dwt vessel capable of running on LNG or conventional fuel.

Fuel for Thought: LPG report. Lloyd’s Register examines LPG as marine fuel in new research report  

Classification society evaluates LPG emissions benefits, safety considerations and technology readiness for shipping.


↑  Back to Top