Edwin Khew, chairman of the Sustainable Energy Association of Singapore (SEAS), recently discussed the potential and challenges of alternative fuels in the maritime sector. While green hydrogen is recognised as a promising alternative, its high production costs, currently around S$5/kg, and technical limitations such as metal embrittlement and difficulties in large-scale transportation, are significant barriers to widespread adoption in Singapore. Reducing these costs through government incentives, research and development, and public-private partnerships could be crucial in making green hydrogen more economically viable.
Khew also highlighted why stakeholders in Singapore are hesitant to adopt hydrogen and hydrotreated vegetable oil (HVO) over other options like ammonia. In addition to the high costs and lack of competitive energy converters for green hydrogen, the safety concerns due to its high flammability and limited distribution systems are major obstacles. While HVO is a paraffinic fuel compatible only with diesel, its high cost makes it more suitable for the airline industry than the maritime sector. Ammonia, though historically used in industrial settings, faces challenges such as limited availability of green ammonia, lack of large ammonia engines, and the need for stringent safety measures due to its toxicity.
The transition to green alternative fuels in the shipping industry is fraught with challenges. Despite the International Maritime Organization (IMO) and various port authorities setting ambitious decarbonisation targets, many shipping companies remain cautious. Uncertainties around fuel availability at specific ports, higher costs, and the need for more frequent bunkering or larger storage tanks pose significant obstacles. Additionally, the split incentives between shipowners and charterers, combined with a lack of confidence in the effectiveness of energy efficiency technologies, complicate the adoption of greener practices.
Furthermore, the diversity of shipping vessels in terms of size, energy needs, and routes makes it difficult to find a one-size-fits-all solution for decarbonisation. The lack of standardised global regulations and a skilled workforce also adds to the complexity. However, efforts by organisations like the Global Maritime Forum and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping are helping the industry navigate these challenges.
Singapore faces its own set of risks in achieving decarbonisation in the maritime sector. The availability and cost-competitiveness of green alternative fuels, particularly green hydrogen, are critical concerns. The Maritime & Port Authority of Singapore (MPA) has developed a domestic decarbonisation roadmap with clear targets, and the country is preparing to become a multi-bunker fuel port. Singapore is actively involved in international efforts, including its leadership roles in the IMO, to develop strategic plans and regulations for the global shipping industry.
These topics, including energy efficiency, regulations, and decarbonisation, will be central to discussions at the Asia Clean Energy Summit (ACES) 2024. The summit will focus on aligning net-zero objectives with the growing demands of climate change and the commitments needed to achieve carbon neutrality.
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