Financial And Insurance Support For Electrification Of Domestic Harbour Craft Sector

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  • The Maritime and Port Authority of Singapore (MPA) has received 12 financing and seven insurance proposals in response to its Expression of Interest (EOI) to support early adopters of electric harbour craft (e-HC).
  • Local and international financial institutions (FIs), financial intermediaries, marine insurers, and insurance brokers submitted proposals to aid the transition to electric vessels.

Financing Options and Support

The MPA has shortlisted proposals from several banks, including DBS Bank Ltd, United Overseas Bank Limited, BNP Paribas Singapore Branch, KfW IPEX-Bank Asia Ltd, and Société Générale, to provide direct debt financing options for harbour craft owners. MPA will collaborate with these banks to develop their solutions further.

In addition to debt financing, the MPA received alternative financing proposals from eight consortia. It will issue a closed call for proposals to select alternative financing options. MPA and Enterprise Singapore (EnterpriseSG) are exploring including interested FIs in the Enterprise Financing Scheme – Green (EFS-Green), offering 70% risk-sharing support for lending.

Insurance Proposals and Initiatives

Seven insurance-related proposals indicated that premiums for e-HC are similar to conventional harbour craft. The MPA is considering supportive mechanisms such as data sharing, loss prevention programs, quality assurance frameworks, and maintenance standards to help insurers right-price e-HC insurance premiums.

Advancements in Harbour Craft Charging and Infrastructure

MPA is piloting three vessel charging concepts in Singapore, including Direct Current (DC) charging deployed at Marina South Pier, an innovative mobile charging concept by Seatrium O&G (International) Pte Ltd, and a high-power DC charger proposed by Yinson Electric Pte Ltd.

MPA is working with EnterpriseSG and academia to develop a Technical Reference (TR) for e-HC charging and battery swap systems, aligning with International Electrotechnical Commission (IEC) standards. Public consultation on the draft TR will be available soon.

Future Directions and Requirements

MPA has shortlisted 11 passenger launch and cargo lighter vessel designs following an EOI for e-HC design proposals. Researchers are enhancing vessel designs and reducing energy requirements, with plans to market reference designs and aggregate production orders for cost savings.

From 2030, all new harbour craft operating in the Port of Singapore must be fully electric, capable of using B100 biofuel, or compatible with net-zero fuels such as hydrogen. MPA is working with industry to establish standards for up to B100 biofuel blends.

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Source: MPA