The Maritime and Port Authority of Singapore (MPA) is working with industry partners through two separate agreements meant to advance decarbonisation efforts in the maritime industry.
In a statement, MPA said it will also build a S$120 million (US$90 million) fund for a maritime decarbonisation centre in Singapore.
The first agreement is a "Memorandum of Cooperation with Partners on Maritime Decarbonisation Centre in Singapore" signed on April 21 which notes that each private sector partner will contribute S$10 million (US$7.5M) to support the establishment of the centre, fund maritime-decarbonisation-related research and technology development projects and collaborate with institutes of higher learning and research institutes.
MPA will then add S$60 million (US$45M) R&D funding to these contributions, bringing the fund to a total of S$120 million.
MPA signed the memorandum of cooperation (MoC) with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP.
This follows the release of a recommendation by the International Advisory Panel on Maritime Decarbonisation (IAP) to set up a maritime decarbonisation centre in Singapore.
Temasek deal on decarbonisation
"To drive and catalyse maritime decarbonisation efforts, MPA also signed a memorandum of understanding (MoU) with Singapore-headquartered investment company, Temasek, to explore collaborations related to the decarbonisation of port operations, development and use of low-carbon and/or alternative marine energy sources and decarbonisation of the other parts of the global and regional maritime supply chain," MPA said, noting that the agreement was also signed on the same day.
Quah Ley Hoon, chief executive of MPA, noted that maritime decarbonisation is a global challenge that requires a "collective responsibility" from all stakeholders involved.
"It is crucial to have strong public-private sector partnerships. We thank like-minded partners that have responded strongly to our call for collaboration. The agreements signed today are two initial steps, which we hope will catalyse a larger, much-needed momentum to make international shipping more sustainable," she said.
Commenting on the deal, Jeremy Nixon, CEO, Ocean Network Express (ONE) said: "This is a further significant step forward by ONE, in alignment with its new green strategy direction. ONE is committed to accelerating maritime decarbonisation collaboration at both governmental and private sector industry level."
