Asia maritime decarbonisation faces fuel dilemma: Panel

Alternative fuels are the way to go to decarbonise the maritime industry, but the various fuel options create uncertainty and the risk of stranded assets for ports like Singapore's Jurong Port, according to panellists at a maritime seminar on 29 November.

Alternative fuels available to the maritime industry range from biofuels to methanol to ammonia and liquid hydrogen, each with their respective pros and cons. This creates a risk for port operators when they choose what fuel infrastructure to invest in, Singapore port operator Jurong Port's chief technical officer and chief sustainability officer Tan Wee Ming said at the Maritime Energy and Sustainable Development Centre of Excellence (MESD) seminar in Singapore. Singapore is the world's largest bunkering hub.

Tan added that should ports wait to observe the market direction, they would not only have to wait for engine manufacturers to give the go-ahead, but also for vessel owners to trial such engines, test the vessels in water, among other logistical issues, before ports are able to start building infrastructure. By then, the response time to do so is very short, Tan said, which adds to the challenges that ports face.

Fuel uncertainty is also complicating decision-making at marine services firms. "Not all types of alternative fuels will be applicable across the board," Singapore marine services provider PSA Marine's head of fleet management Bernard Wong said at the seminar on 29 November. "There will be a need to differentiate," he added, referring to a need to cater to flexibility and options within the industry.

Singapore-based business unit Rolls-Royce Solutions Asia's Asia-Pacific director of sales marine and offshore Chew Xiang Yu agreed. "Where are we going to invest our resources to?" he asked, referring to the breadth of alternative fuels available. He also added that development projects need to run for many years to come, as assets or engines are being developed to operate for 10-15 years and not shorter durations like five years.

But when it comes to selecting which fuels to focus on, especially given that Singapore has little available space to adopt different green fuels, Wong is of the opinion that the key question is about "what is most practical", referring to safety standards and the ease of bunkering. He also added that the business aspect still remains pertinent when it comes to answering who will pay the premium if there is indeed one.

But Tan said it is important to "find a way to lock it in" and prove that Singapore is able to handle these alternative fuels, even if some of them are potentially dangerous. He also noted the importance of a "strong leadership" to foster collaboration. There could be many unknowns when undertaking new studies, but giving up on a promising idea in favour of one that is sub-par because of high costs is "not doing justice to the collaboration", Tan said.

By Tng Yong Li