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."


KUSPC grand opening. ABS grants AiP for LNG bunkering barge design  

Samsung Heavy Industries and Conrad Shipyard receive AiP for basic design under joint development.

Waalvliet vessel. ABB and Econowind combine wind propulsion with digital routing to cut ship emissions  

The partnership integrates wind-assisted propulsion with weather routing to reduce fuel consumption.

Peninsula logo. Peninsula seeks junior cargo trader for Dubai role  

Position centres on the procurement of marine fuels, blending components and associated products.

Island Oil Summer Students Programme. Island Oil opens operations to students in summer internship programme  

Cyprus-based firm gives students hands-on experience across its bunker business.

Launching ceremony of a 20,000-cbm LNG bunkering vessel with hull no. S1129. New 20,000-cbm LNG bunkering vessel for Somtrans Group launched at Chinese yard  

Exmar’s newbuilding supervision team oversaw the launch at CIMC Group’s shipyard in Qidong, China.

BP logo. BP seeks bunker trader for Singapore marine sales role  

Selected candidate will be responsible for key accounts, day-to-day marketing and marine trading.

Yangtze Canal widening project signing. Van Oord consortium completes first phase of Rotterdam’s Yangtze Canal widening  

The project will enable two-way traffic for container vessels of up to 24,000 TEU.

Orca Fisher vessel. James Fisher’s first LNG-capable chemical tanker named at London ceremony  

The Orca Fisher is the first of four dual-fuel FKAB T68 vessels built in China.

World Kinect Corporation logo. World Kinect marine segment posts record quarterly gross profit amid bunker price volatility  

Marine division delivers its best-ever quarterly result as the conflict in the Middle East drives bunker price swings.

Explora III vessel. Explora Journeys takes delivery of first LNG-powered ship in its fleet  

Explora III, delivered by Fincantieri in Genoa, marks the brand’s first LNG-fuelled vessel.


↑  Back to Top