The Maritime and Port Authority of Singapore (MPA) has shelled out S$26 million to kick-start the use of liquefied natural gas (LNG) as a cleaner burning marine fuel ahead of green shipping regulation.
Contract awarded to build LNG vessels
On October 1, Mr.ALan Lim, MPA’s deputy director for port services, disclosed the up-to-date investment made by the maritime regulator at an industry roundtable meeting.
The investment includes S$18 million or up to S$2 million per ship awarded as grants to shipowners for building LNG-powered ships plus another S$6 million that went to two licensed suppliers for the construction of LNG bunkering vessels. The MPA has spent a further S$2 million to build LNG trucking capabilities at the SLNG terminal.
The bunkering vessel is powered by LNG, which emits almost zero sulphur dioxide, is touted as a bridging fossil fuel allowing for international shipping to comply with an upcoming green shipping regulation.
By 2020, the International Maritime Organization will enforce a 0.5 percent cap on sulphur content in marine fuel. This is intended to cut the emission of sulphur dioxide, a harmful greenhouse gas, from ship operations.
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Source: Business Times