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Japan's ports waive fee for LNG, hydrogen-fuelled ships

  • : Emissions, Hydrogen, Natural gas, Oil products
  • 21/03/26

The Tokyo metropolitan government has decided to wave the port entry fee at Yokohama, Kawasaki and Tokyo for ships powered by LNG and hydrogen, as well as LNG bunkering vessels, as an incentive to expand the use of alternative marine fuels.

Tokyo's port bureau is to introduce a fee waiver on 1 April for LNG-fuelled ships and LNG bunkering vessels entering the ports. Ships powered by dual-fuel engines that run on LNG or low-sulphur marine fuel will be included in the scheme. The fee waiver will remain effective for five years until 31 March 2026.

The port entry fee at the three ports is set at ¥2.70/gross tonne (gt) for one entry for ocean-going vessels, equivalent to around ¥200,000 ($1,840) each for an LNG-fuelled car carrier. The fee is ¥1.35/gt per entry for coastal vessels bigger than 700gt, equivalent to around ¥90,000 each for an LNG-fuelled coastal bulk carrier. Smaller than 700gt coastal ships are waived from the payment of the port entry fee.

Japanese joint-venture Eco Bunker Shipping is targeting to commission this year the Ecobunker Tokyo Bay, the first LNG bunkering ship in Tokyo bay.

The port bureau will also waive the entry fee for hydrogen-fuelled vessels entering Yokohama, Kawasaki and Tokyo ports including those powered by hydrogen fuel cells (FCs). The fee waiver for hydrogen-fuelled vessels will also take effect in the new April 2021-March 2022 fiscal year and remain in place for five years.

A cross-industry group of Japanese firms is working to launch a hydrogen-powered FC passenger ferry at Yokohama port in 2024.

Japan's use of hydrogen as a fuel is to expand over the coming years under the country's roadmap towards a 2050 decarbonisation goal. Development of hydrogen port infrastructure is also backed by the transport ministry's policy to establish a carbon-neutral port at key domestic ports, including Yokohama and Kawasaki.

The country's hydrogen demand is predicted to hit 3mn t/yr in 2030 before increasing to 20mn t/yr by 2050 for power generation, land and sea transport and possibly steel production.

The first commercial hydrogen-powered vessel is expected to be commissioned next month in Japan's Seto inland sea by Belgian shipping firm CMB. The hydrogen-powered passenger ferry HydroBingo is being built by Japanese shipbuilder Tsuneishi Facilities and Craft.

Japanese ship engine producer Yammar is carrying out a trial of its 250KW marine FC system using a pleasure craft and a hydrogen FC module from auto producer Toyota's Mirai FC electric vehicle. Yammar is targeting to commercialise FC vessels by 2025.

The Tokyo port bureau said it is currently not considering introducing the fee waiver for ammonia-fuelled vessels.


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