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."


NYK Line car carrier render. NYK begins one-year B100 biofuel trial on car carrier  

Japanese shipping company NYK Line launches continuous 100% biofuel trial to assess long-term operational safety.

Caroline Yang, Hong Lam Marine. IBIA names Caroline Yang as chair of Asia regional board  

Hong Lam Marine CEO takes over from Capt. Rahul Choudhuri in leadership transition at the bunkering association.

Koki Harada, MOL. MOL outlines biomethane strategy and calls for cross-sector collaboration at Asia renewable gas conference  

Japanese shipping company MOL presents its bio-LNG approach and decarbonisation pathway at industry forum.

Maritime Technologies Forum (MTF) logo. MTF issues safety management guidelines for wind-assisted propulsion systems  

New guidelines aim to help shipping companies integrate WAPS into safety management systems.

MSC Maria Renata vessel. Changhong International delivers LNG dual-fuel boxship to MSC 159 days ahead of schedule  

The 10,300-teu MSC Maria Renata is designed to meet ammonia-ready and methanol-ready requirements.

Birjo II vessel. Sunoil and BFT convert Dutch inland barge Birjo II to run on 100% biodiesel  

Dutch barge Birjo II has been converted to operate on B100, cutting CO₂ emissions by up to 90%.

Renewable and low-carbon methanol project pipeline chart as of May 2026. Global renewable methanol pipeline reaches 61.6 MMT as China construction accelerates  

Gena's latest tracker shows 282 projects in development, with China and Europe dominating the pipeline.

Steel-cutting ceremony for Green Handy vessel. ESL Shipping cuts steel on first methanol-powered Green Handy vessel in Nanjing  

Finnish dry bulk carrier begins construction of four new handysize ships in China.

CMA CGM Notre Dame vessel at Singapore Port. World’s largest LNG-powered container ship makes maiden Singapore call  

CMA CGM Notre Dame arrives in Singapore on her first Asia-Europe voyage.

Singapore waterfront skyline. Uni-Fuels seeks bunker trader in Singapore as Nasdaq-listed firm expands team  

Role includes managing end-to-end transactions, identifying opportunities and optimizing margins.


↑  Back to Top