Singapore to set up S$120m decarbonisation centre, with support from industry partners

THE Maritime and Port Authority of Singapore (MPA) on Wednesday said it will establish a S$120 million fund for a maritime decarbonisation centre to be set up in Singapore, supported by funding from industry partners.

MPA has signed a memorandum of cooperation with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP.

Each private sector partner will contribute S$10 million to the fund, while MPA will add S$60 million in research and development funding, it said in a press statement. This will support the establishment of the centre and fund maritime-decarbonisation-related research and technology development projects.

The industry partners will also collaborate with institutes of higher learning and research institutes.

The centre is one of nine recommendations submitted by the International Advisory Panel on Maritime Decarbonisation (IAP) to support decarbonisation in the maritime industry.

The nine recommendations cover four strategic objectives -  harmonise standards, implement new solutions, finance projects and collaborate with partners, the IAP said separately on Wednesday in a press statement.

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To harmonise standards, IAP recommended shaping common metrics for carbon accounting and setting standards for new technologies and solutions.

Implementing new solutions involves piloting trials and deploying solutions, as well as building flexible ship capabilities and relevant infrastructure.

Meanwhile, financing projects include developing green financing mechanisms, as well as mechanisms that could support carbon pricing. IAP has also recommended having a custodian for R&D funds and grants with the ability to deploy them.

When it comes to collaborating with partners, IAP also suggested multiplying local, regional and global collaboration across stakeholders. The decarbonisation centre falls under this strategic objective.

Other joint projects on top of the decarbonisation centre include conducting fuel and electrification trials for vessels.

IAP has also identified ammonia-related joint projects such as retrofitting and constructing newbuild vessels to use methanol and ammonia as marine fuel, exploring green ammonia bunkering in Singapore and conducting joint workshops on ammonia as a marine fuel.

The Singapore Maritime Foundation (SMF), with MPA’s support, formed the IAP in July 2020. The IAP is co-chaired by SMF chairman Andreas Sohmen-Pao and Wong Weng Sun, chairman of the board and governing council of the Singapore Maritime Institute.

The IAP comprises 28 other leaders from maritime and related organisations, including shipping associations, shipping companies, port operators, energy companies, engine makers, shipyards, insurance and finance players, as well as academia.

Minister for Transport Ong Ye Kung first announced the establishment of the decarbonisation centre at the launch of Singapore Maritime Week on Monday. The International Advisory Panel on Maritime Decarbonisation had proposed the establishment of a global maritime decarbonisation centre in Singapore, where a cluster of like-minded stakeholders can coordinate, drive and catalyse maritime decarbonisation solutions, Mr Ong said.

MPA has also signed a memorandum of understanding with Temasek. This is to explore collaborations related to the decarbonisation of port operations, the development and use of low-carbon and/or alternative marine energy sources and the decarbonisation of the other parts of the global and regional maritime supply chain.

MPA chief executive Quah Ley Hoon said: "Maritime decarbonisation is a global challenge requiring a collective responsibility from all stakeholders involved. It is crucial to have strong public-private sector partnerships."