The recent marine decarbonization agreement between Pinnacle Marine and Singapore’s maritime research center is crucial to achieving net-zero goals, industry sources told S&P Global Commodity Insights Oct. 23, but significant technical and infrastructure challenges persist.

The initiative marks a crucial advancement for the NTU Maritime Energy & Sustainable Development Centre of Excellence in facilitating actual trials on harbor crafts and supporting the Maritime and Port Authority of Singapore (MPA) in achieving its 2030 goals.

Marine biodiesel consumption is expected to rise to 1.8 billion liters by 2030, comprising around 0.8% of international shipping, according to IEA forecasts. However, decisive policy measures from the IMO in 2025, such as an emission pricing mechanism, could drive this share to 1.4%.

The MPA is targeting Singapore’s domestic harbor craft sector to reach net-zero emissions by 2050. As of March 2023, the MPA mandated that all new harbor crafts operating in port waters must be fully electric, capable of using B100 biofuels, or compatible with net-zero fuels by 2030.

The research aims to assess engine performance and emissions data related to the long-term use of pure fatty acid methyl ester biodiesel, known as B100, and develop guidelines for its storage, handling, and bunkering.

Looming challenges

While the initiative is a significant step in evaluating the capability of small harbor crafts to operate using B100, small harbor crafts may need to overcome challenges to operate with B100 due to their lack of heating capacity compared to ocean-going vessels, industry participants said.

Without regulatory mandates, the adoption of B100 could be hindered by high operating costs, a market participant noted.

“Additionally, B100 supply could be an issue; if there is a mandate, there also needs to be enough supply for every user,” a trader said.

Meanwhile, there are concerns over limited electric harbor craft usage, as inadequate charging infrastructure remains a significant barrier. According to sources, current facilities are predominantly land-based, and existing power grids may not meet the required demand.

“EV harbor craft is uncommon now as there are too many drawbacks. A lot of talks are in place among the harbor craft community on range anxiety, EV battery repair or replacement costs, long queue time for charging, lack of infrastructure and battery degradation,” said a market source.

Source: Platts