MPA inks collaborations with partners to advance decarbonisation efforts in maritime industry

A S$120 million fund for a maritime decarbonisation centre in Singapore

MPA inks collaborations with partners to advance decarbonisation efforts in maritime industry

The Maritime and Port Authority of Singapore (MPA) will join hands with industry partners under two separate agreements signed today to advance decarbonisation efforts in the maritime industry. 

MPA signs a memorandum of cooperation (MoC) with BW Group, Sembcorp Marine, Eastern Pacific Shipping, Ocean Network Express, Foundation Det Norske Veritas and BHP to establish a fund for a maritime decarbonisation centre to be set up in Singapore. This follows the release of a recommendation by the International Advisory Panel1 on Maritime Decarbonisation (IAP) to set up a maritime decarbonisation centre in Singapore. 

Under the MoC, each private sector partner will contribute S$10 million 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 add S$60 million R&D funding to these contributions, bringing the fund to a total of S$120 million. 

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 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, with Temasek and Temasek Portfolio Companies at the same event today.

Quah Ley Hoon, Chief Executive of MPA, said:

“Maritime decarbonisation is a global challenge requiring 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.”

Andreas Sohmen-Pao, Chairman, BW Group, said:

“Climate change is a defining challenge of our time, and the only way to tackle this is with cross-border, cross-sector collaboration.  While helping to find solutions for the industry, companies can also help themselves to prepare for the future by being part of this effort.”

Cyril Ducau, Chief Executive Officer, Eastern Pacific Shipping, said:

“Sustainability begins with accountability and maritime leaders have a responsibility to implement emission-lowering solutions available today while simultaneously developing solutions for tomorrow. The formation of a maritime decarbonisation centre is a major milestone, combining forces of both public and private industry players. It proves that the sector is willing to band together and take ownership of environmental preservation for future generations.”

Remi Eriksen, Chief Executive Officer, Foundation Det Norske Veritas and DNV, said:

“Transforming the world energy system is one of the biggest challenges currently confronting society, and shipping must play its part. But doing this cannot be achieved without industry wide collaboration. That is why we have taken the decision to become a founding member of the Singapore decarbonisation centre. We believe the deep expertise behind the Foundation complements Singapore’s status as a world-leading maritime ecosystem for sustainable energy and climate change. Working together, I am confident the Centre will deliver a global impact on decarbonisation while further bolstering the Foundation’s purpose of safeguarding life, property and the environment.” 

Vandita Pant, Chief Commercial Officer, BHP, said:

“The key to navigating the pathway to decarbonisation in the maritime industry is an ecosystem approach with all partners working collaboratively towards the same goal. BHP is proud to sign this Memorandum of Cooperation (MoC), and is committed along with other like-minded companies, to lead the maritime sector towards that goal through the maritime decarbonisation centre.”

Juliet Teo, Head of Transportation and Logistics at Temasek, said:

“Decarbonisation is an important priority for the maritime industry. This MPA-Temasek agreement paves the way for joint efforts aimed at reducing carbon emissions across port operations, maritime supply chains and shipping, including new potential low- or no-carbon fuels for ships. By combining our expertise, experience and global networks, both within and beyond the maritime eco-system, we hope to bring capabilities to this task that will make a difference.”