Modern Terminals has announced the launch of a trial programme of hydrotreated vegetable oil (HVO) at its facilities at Terminal 9 (South), becoming the first company in Hong Kong to deploy this renewable diesel.

The initiative is part of the company's decarbonisation programme, and is estimated that the trial will last for three to four weeks.

Modern Terminals targets to eliminate direct greenhouse gas (GHG) emissions by 2030 and to become carbon neutral by 2050 under its Sustainability Strategy.

"We have been looking at various possible technologies for decarbonisation since we established our 2030 and 2050 decarbonisation goals back in 2021," said Horace Lo, Group Managing Director.

He added that  HVO significantly reduces greenhouse gas emissions throughout the entire fuel lifecycle from its production to combustion.

"Working with Shell Hong Kong on this project, we are looking at HVO to reduce carbon emissions by up to 87% when compared to using conventional fossil fuels," Lo added.

"Over the coming weeks, we hope to get a better understanding of the application of this greener fuel type and then continue the dialogue with the Government, Shell and other green fuel providers on how we accelerate the availability and use of greener fuel types in Hong Kong."

To thoroughly test the greener fuel across Modern Terminals' Hong Kong operation, HVO will be used in three types of equipment, including a rubber-tyred gantry crane (RTG), a reach stacker and an empty stacker.  

Liu Chu San, undersecretary for Transport and Logistics, commented that "the transport sector accounts for about 18% of carbon emissions in Hong Kong."

"We are glad to see companies like Modern Terminals and Shell taking this initiative to support the green transportation journey of the city," he added.

HVO is produced by hydrogenation of ester and fatty acids of various feedstocks such as vegetable oils, animal fats, used cooking oil and waste oil.

It can be used as a "drop-in fuel" as a direct replacement for fossil diesel without the need for modifications to engines approved to use HVO under EN15940 specifications.

HVO fuel, derived from 100% waste and residue bio components, has a lower "well-to-wheel" carbon intensity and therefore can reduce greenhouse gas emissions with the right feedstock.