Hong Kong launches incentives to boost alternative fuel uptake
Hong Kong’s Marine Department (MD) will introduce two new incentive schemes from 16 June to encourage greater use of alternative marine fuels.
IMAGE: Container ship and working crane bridge with Hong Kong skyline in the background. Getty Images
Both programmes will remain in place for three years.
The Hong Kong government has earmarked around $34 million in this year’s budget to support the initiatives. The funding will be used to offer port dues concessions to vessels powered by or carrying alternative fuels, as well as financial incentives for alternative-fuelled ships registered under the Hong Kong flag.
Under the Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels, rebates will be available to alternative fuel-related ocean-going vessels (OGVs). This includes ships powered by or bunkering approved alternative fuels in Hong Kong, as well as vessels transporting such fuels for local supply.
The approved fuels under the scheme are LNG, methanol, ammonia, hydrogen and B20 biofuel containing at least 20% biofuel. Eligible OGVs carrying out the specified operations during their stay in Hong Kong can apply for reimbursement of 25-50% of the port dues they have paid. The rebate covers charges such as port facilities and light dues, anchorage dues, buoy dues and port clearance permit fees levied under the Shipping and Port Control Regulations.
The MD said the scheme is designed to promote the uptake of alternative fuels, which typically cost more than conventional fuels, while stimulating early demand for green bunkering services in Hong Kong.
“This will in turn attract other players in the green maritime fuel bunkering supply chain, such as bunker suppliers, bunker operators and traders, to establish and expand their operations in Hong Kong. We expect this scheme to attract more than 1,000 visits to Hong Kong by green maritime fuel-related vessels,” an MD spokesperson said.
The second initiative, the Green Vessels Registration Incentive Scheme, aims to attract and retain alternative-fuelled vessels in the Hong Kong Shipping Registry (HKSR).
The scheme is open to both existing and newly registered Hong Kong-flagged ships that use alternative fuels as their primary propulsion fuel. Eligible fuels include LNG, methanol, ammonia and hydrogen, while conventional fuels and biofuels are excluded.
Each qualifying vessel will receive an annual subsidy of HK$60,000 (about $7,600) during the three-year programme. Depending on when a vessel joins and remains in the registry, it may receive support for up to three years, bringing the maximum subsidy per vessel to HK$180,000 (about $23,000).
“We estimate that this scheme will attract approximately 100 vessels powered by green maritime fuels to register with the HKSR,” an MD spokesperson added.
By Tuhin Roy
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