Shanghai, the world’s busiest port, aims to become a hub for greener shipping. The city plans to increase its supply of cleaner fuels to meet stricter global emissions standards. By 2030, Shanghai targets to supply over 1 million tons of low-carbon bunker fuel annually, reports Economic Times.
Bunkering Hub
China is stepping up competition with Asia’s bunkering hub of Singapore ahead of a decarbonization plan that’s expected from the International Maritime Organisation next year. The European Union is already imposing carbon targets on shipping. The sector is responsible for 3% of the world’s emissions.
Shanghai’s goal is just a fraction of the nearly 20 million tons of fuel oil sold to international shipping in China in 2023, suggesting that the transition to hydrogen-based propellants like methanol and ammonia is likely to take many years. Traditional bunker fuels will only be displaced on a larger scale from 2040, China’s biggest supplier said last month.
Singapore dominates
Singapore, for its part, also has a target of 1 million tons of low-carbon methanol by 2030. The city-state is the world’s dominant supplier of bunker fuel, accounting for more than 50 million tons last year.
But China does have a habit of over-delivering on its promises when it comes to clean technologies and should have a head start on hydrogen-based fuels generated by renewable energy given its enormous global lead in solar and wind power.
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Source: Economic Times
