Hong Kong Air Cargo Terminals Limited (Hactl) – Hong Kong's largest independent cargo handler – is entering into a new memorandum of understanding (MoU) with Shell Hong Kong Limited (Shell), covering the supply of renewable diesel fuel for its ramp equipment and road vehicles.

Shell recognised Hactl as its first strategic collaborator on renewable diesel initiatives.

The MoU includes strategic collaboration on charging infrastructure for electric vehicles and ground service equipment at SuperTerminal 1.

Hactl said it has been working with Shell in a one-year airport-wide programme led by Airport Authority Hong Kong since April 2024, involving some of its ramp tractors, to evaluate the use of hydrotreated vegetable oil (HVO).

The pilot scheme's success has driven the extension and expansion of the cooperation, through this new dedicated Hactl/Shell agreement.

"Shell Renewable Diesel is a little more expensive than the B5/B7 biodiesel that Hactl has been using, but our research confirms it will achieve a dramatic reduction in life-cycle greenhouse gas emissions compared with traditional petroleum-based diesel fuel. This will be an important factor in achieving Hactl’s overall sustainability targets: full adoption of renewable diesel will help us reduce our overall Scope 1 GHG emissions by 40%," said Wilson Kwong, chief executive, Hactl.

"HVO requires no modification to engines, and its use does not create any operational issues throughout the seasons and their varying climactic conditions," he added.

Hactl plans to expand the use of HVO across more of its 190 ground service equipment fleet, which includes tractors, loaders, conveyor belts, and passenger steps; this is an interim step to reduce emissions while Hactl tests and introduces electrically-powered alternatives.

The MoU with Shell also covers electric vehicle charging infrastructure, which will become increasingly important to Hactl as it pursues the switch to electrically powered ground service equipment.

Anne Yu, managing director of Shell Hong Kong Limited, adds: "Shell Hong Kong is committed to offering low-carbon energy solutions to our customers in Hong Kong to help them achieve their decarbonization ambitions and support the city’s low-carbon transition."

"The signing of the MoU between Shell and Hactl is not only a strategic alliance between us but also a shared commitment to social and environmental responsibility to advance the application of low-carbon energy to address the challenge of global climate change."

Kwong added: "By signing this MoU with Shell, we aim to set new and achievable goals for sustainable vehicle operations in the air cargo industry here and around the world."