Executive Summary

The Green Fuels Transition for International Shipping Workshop, held on 22 November 2024 at Hong Kong Maritime Museum, assessed Hong Kong's strategic positioning amid accelerating regulatory requirements for maritime decarbonization. Coinciding with Hong Kong's Action Plan release, international experts reinforced persistent themes while offering Action Plan-specific recommendations. Asia-Pacific production capacity is expanding rapidly—CEO Frank Yu (Envision Energy) targets 5-7 million tons of green ammonia by 2034, CIMC announces 50,000 tons of green methanol in Guangdong. However, demand activation remains the critical challenge, as Director Martin Cresswell (HK Shipowners Association) emphasized: "We need to create the demand. Basically, governments have got to take action...Without governments, we can't really move forward with these new fuels." Expert insights revealed strategic imperatives requiring research foundation. Managing Director Roberto Giannetta (HK Liner Shipping Association) advocated positioning Hong Kong "as a trading hub for green fuels". Chief Officer Pernille Dahlgaard (Maersk MC-Kinney Center) emphasized fossil fuel users receive "implicit subsidy" requiring carbon pricing to "jump up two or three times." Fleet Management's Prakash Chandra noted Singapore "giving so much grant for green fuel development."  The implied research need can be readily seen in the priorities that emerged from expert discussions:

1. Conduct fuel demand modelling and government intervention analysis to develop evidence-based strategies for demand creation and green corridor establishment

2. Conduct carbon pricing impact assessment to quantify the price acceleration effects needed for decarbonization and inform Hong Kong's policy positioning within evolving regulatory frameworks

Technical Summary

The Green Fuels Transition For International Shipping Workshop took place on 22 November 2024 at the Hong Kong Maritime Museum, marking the conclusion of Hong Kong Maritime Week 2024. It was organized by the Hong Kong University of Science and Technology, co-organized by Karma Works Foundation, Hong Kong Shipowners Association, Hong Kong Liner Shipping Association, and Hong Kong Maritime Museum, with sponsorship by Invest Hong Kong, reflecting strong institutional support from both academic and industry stakeholders. This workshop was particularly significant as it coincided with Hong Kong's release of its Action Plan on Green Marine Fuel Bunkering just days before the event, demonstrating the government's commitment to positioning Hong Kong as a key player in the maritime energy transition.

The Green Fuels Transition for International Shipping Workshop was distinguished by the participation of maritime industry leaders and stakeholders representing the complete international shipping decarbonization ecosystem. We were privileged to welcome Mr. Qiang Shi, Deputy Director of the Hong Kong Marine Department, who delivered opening remarks outlining Hong Kong's newly published Action Plan on Green Marine Fuel Bunkering.

The workshop invited prominent international expertise, including Ms. Pernille Dahlgaard, Chief Officer for Government, Business & Analytics at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping from Denmark, and Dr. Sanjay C Kuttan, Chief Strategy Officer at the Global Centre for Maritime Decarbonisation (GCMD) from Singapore, representing leading global maritime decarbonization institutions.

In addition, the event demonstrated comprehensive value chain engagement across multiple sectors: shipping operations were represented by Mr. Martin Cresswell (Technical Director, Hong Kong Shipowners Association and former Board Member of China Navigation Company/Swire Group), Mr. Roberto Giannetta (Chairman, Hong Kong Liner Shipping Association), and Mr. Prakash Chandra (Director Technical, Fleet Management Limited); advanced energy technology and fuel production featured Mr. Frank Yu (Global Vice President, Envision Energy) and Mr. Tony Li (General Manager R&D, CIMC ENRIC); international port authorities and regulatory bodies included Mr. Ian MacMillan from South Coast Air Quality Management District overseeing Los Angeles/Long Beach ports; maritime training and standards development was represented by Mr. Aalok Sharma (Group Head of Training, Anglo-Eastern Ship Management managing 730+ vessels globally) and Ms. Alishba Zaman (Project Coordinator, Maritime Just Transition Task Force, UN Global Compact); and academic research institutions contributed through Prof. Christine Loh (Chief Development Strategist, HKUST Institute for the Environment) and Prof. Alexis Lau (Head, Division of Environment and Sustainability, HKUST).

The workshop featured comprehensive technical presentations addressing critical green fuel transition aspects. Mr. Martin Cresswell outlined IMO's ambitious 2023 strategy requiring 70-80% emission reductions by 2040, while Ms. Pernille Dahlgaard emphasized the critical gap between projected green fuel demand and current production capacity. HKUST's Mr. Jiajing Chen demonstrated AI-powered shipping emission analysis identifying high-traffic green corridor routes, and GCMD's Dr. Sanjay Kuttan shared Clean Energy Marine Hub strategies for connecting green electricity production with fuel delivery.

Envision Energy's Mr. Frank Yu showcased substantial ammonia supply capabilities from their Inner Mongolia facility producing 5 million tons annually, while Fleet Management's Mr. Prakash Chandra detailed practical ammonia ship preparation through the SABRE consortium. CIMC's Mr. Tony Li contributed methanol production insights, and Mr. Ian MacMillan presented critical research on alternative fuel emissions monitoring. The session concluded with comprehensive crew training presentations from Mr. Aalok Sharma and Ms. Alishba Zaman, addressing the essential human element in safe alternative fuel operations.

The discussions revealed the multifaceted nature of international shipping's green fuel transition, emphasizing the critical interplay between technological readiness, regulatory frameworks, and collaborative stakeholder action to achieve Hong Kong's maritime decarbonization objectives.

Green fuel production capacity is rapidly scaling in Asia-Pacific, with substantial supply commitments from mainland China, though demand creation remains the fundamental challenge. Understanding the massive scale and complexity of maritime fuel demand is fundamental to realistic transition planning. Envision Energy demonstrated capabilities targeting 5-7 million tons of green ammonia annually by 2034, while CIMC ENRIC announced 50,000 tons of green methanol production coming online in Guangdong. However, participants consistently emphasized that government intervention and policy frameworks are essential to stimulate market demand, with the IMO's mid-term measures expected by 2027 being crucial for establishing carbon pricing mechanisms.

Shipping's future requires a multi-fuel ecosystem approach rather than single-fuel solutions, necessitating sophisticated port infrastructure across different vessel types and trade routes. Container liners operating on European routes face different fuel preferences compared to regional services, while bulk carriers and tankers have distinct requirements. Port infrastructure must accommodate multiple bunkering systems, storage facilities with varying specifications, and safety protocols tailored to each fuel type, requiring strategic coordination between terminal operators, bunker suppliers, and regulatory authorities.

Safety frameworks and workforce readiness represent critical enablers, with comprehensive training programs being developed industry-wide. The UN Global Compact's Maritime Just Transition Task Force revealed that up to 800,000 seafarers require retraining by the mid-2030s. GCMD's pioneering ammonia ship-to-ship transfer operations demonstrated that these fuels can be handled safely with proper procedures, though operational complexity significantly exceeds conventional fuel handling.

Hong Kong's positioning as a regional green marine fuel hub depends on enhanced policy ambition, infrastructure investment, and credibility-building measures leveraging proximity to mainland production capacity. While participants welcomed the government's Action Plan on Green Marine Fuel Bunkering, industry stakeholders advocated for more aggressive targets and innovative compliance mechanisms. The workshop emphasized that port credibility—exemplified by Singapore's transformation through mandatory mass flow meters—is essential for attracting international shipping business.

Panel Discussion: Getting HK ready for new fuels and new opportunities, including GBA collaboration and trading

Prof. Christine Loh (HKUST) was the moderator of the Panel which addressed three major themes detailed as follows.

Supply and Demand Dynamics

1. Mr Frank Yu (Envision Energy) highlighted significant opportunities in green ammonia production, noting that "handling air, which has zero cost" makes the Asia-Pacific region, led by China and India, well-positioned for competitive green ammonia. He differentiated between bio-methanol and e-methanol, favouring e-methanol due to challenges in handling biogenic CO₂, and emphasized that "if costs for producing green molecules could be reduced effectively, there might not be a need for long-term agreements, as the products could be sold as commodities.
2. Mr Tony Li (CIMC) presented a contrasting perspective on methanol production routes, stating that "biomass methanol exhibits clear cost advantages" and highlighted China's abundant biomass resources of "over one billion tons of agricultural and forestry waste." He emphasized that from a cost-competitiveness perspective, biomass methanol is currently the most viable option for industrial-scale production.
3. Mr Martin Cresswell (HKSOA) stressed that "without government support, the advancement of new fuels would be challenging" and emphasized the need for government action to create demand and the IMO to provide midterm incentives to offset fuel costs.

Infrastructure and Operational Challenges

1. Mr Sanjay Kuttan (GCMD) addressed port infrastructure adaptation, emphasizing that "operational efficiency is critical" and that ports must analyse different fuels and vessel types. He noted that "simultaneous bunkering and cargo operation is essential for container liners" but warned that "conducting simultaneous operations with ammonia fuel requires extensive safety analysis due to toxic risks."

2. Mr Roberto Giannetta (HKLSA) highlighted Hong Kong's service limitations, noting that "large 20,000 TEU vessels bound for Europe are not part of the services offered in Hong Kong." He stressed the importance of attracting regional services and pointed out that "multi-storage solutions would be necessary, explaining that storage tanks for conventional fuels may not be suitable for LNG but could be for methanol."

3. Mr Prakash Chandra (FML) countered concerns about readiness, stating "there are already established worldwide bunkering practices for LNG and methanol" with sufficient guidelines available from organizations like IAPH, Lloyd's, and DNV.

    

Future Market Development and Collaboration

1. Roberto proposed that "Hong Kong should position itself as a trading hub for green fuels, leveraging its advantages in financial institutions, legal systems, and infrastructure" rather than focusing solely on bunkering operations.

2. Sanjay suggested managing the transition through blending strategies, explaining that "by blending grey and green fuels, it is possible to lower costs while still meeting compliance requirements" and identified biofuels as "the most accessible option for today's market."

    

3. A participant from ExxonMobil emphasized the importance of credibility, sharing Singapore's experience where the 2013 Mass Flow Meter regulation transformed the market by attracting major corporations. She stressed that "establishing credibility should be a priority moving forward" for Hong Kong to compete effectively.

4. Christine concluded that the gathering served as "a valuable networking opportunity" and emphasized the importance of experiential learning, stating that "while theories exist, practical trials and courageous policymakers are essential for developing effective demonstrations and working out the details." She noted the presence of early movers in alternative fuels debating commercial viability, suggesting that "over time, the cost structures of these alternatives are likely to converge."

Event Intro

The Hong Kong Special Administrative Region (HKSAR) is positioning itself as a leading bunkering hub for near zero and zero emission (ZNZ) fuels. The first step, bunkering of liquefied natural gas (LNG), is expected to be ready soon. HK’s bunkering hub for fossil fuels is well established and is the 7th largest globally, meeting the dual demand of ocean-going vessels (OGV) calling at the port and also for ships that bunker outside port limits (OPL). HK could also be a transhipment trade in these new fuels. 

All forecasts for the shipping sector’s future energy mix, due to regulatory pressures of the EU ETS scheme, the upcoming FuelEU Maritime plus the International Maritime Organization (IMO)’s mid-term measures, suggests that Green Methanol and Ammonia will account for a substantial share of the ZNZ fuels.

To this end, the Institute for the Environment of the Hong Kong University of Science & Technology (HKUST) in support of the HKSAR Government (HKSARG), is organizing a Green Fuels Transition for International Shipping Workshop. This will be of interest to many maritime stakeholders, Shipowners, Bunker suppliers, Fuel storage facilities, Berth owners and various Government Departments, etc.

The Green Methanol OGV Workshop on 22 October has shown that Green Methanol bunkering is coming. Noting that engine manufacturers have been testing ammonia engines at the final stage and solutions are being developed in collaboration with Ammonia Consortiums in Singapore and North America on NH3 bunkering infrastructure and public readiness, the future demand for Green Ammonia bunkering is assured. The workshop aims to facilitate early adoption of Green Ammonia bunkering in Hong Kong, explore the city’s potential role in supporting the scaling up of global ZNZ fuel supply and a platform to foster collaboration among stakeholders to create a unified plan for advancing green fuels in HK.

Sponsor: InvestHK, HKSARG 

Notes: Free Admission. Limited seats. Organizer has full discretion to limit registrants per company or decline registration. The event will be video-recorded and uploaded to internet for global coverage.  

Disclaimer: The views expressed by speakers or moderator do not necessarily reflect the official policies of HKUST, supporting organizations or the sponsor, nor does mention of commercial practices or companies imply endorsement of HKUST, supporting organizations or the sponsor.