Singapore, Maritime Companies Commit US$90 Million for Decarbonization Center

   Ben Otto 
 

Singapore will set up a US$90 million fund with companies including BHP Group Ltd. and Sembcorp Marine Ltd. to establish a maritime decarbonization center in the trade-and-transit hub, a move that comes amid growing efforts globally to limit the climate impact of international shipping.

Singapore's maritime and port authority said Wednesday that it would contribute 60 million Singapore dollars (US$45.2 million) to the effort, with six private-sector entities adding S$10 million each. The sum will go toward establishing the decarbonization center in the Southeast Asian nation and funding related research efforts, it said.

Other companies contributing to the fund include Eastern Pacific Shipping, BW Group, Ocean Network Express and Foundation Det Norske Veritas.

The port authority also said it would work with Singapore state investment company Temasek Holdings on the decarbonization of port operations and the development of clean fuels for use in marine shipping.

The agreements "are two initial steps, which we hope will catalyze a larger, much-needed momentum to make international shipping more sustainable," said Quah Ley Hoon, chief executive of the maritime and port authority.

The moves come amid growing global interest in lowering the carbon footprint of the global shipping industry, and in meeting a 2018 United Nations goal to at least halve carbon emissions across the industry by 2050.

Global oil major Royal Dutch Shell PLC and Sembcorp Marine this week announced a partnership to study the use of hydrogen fuel cells for ships in Singapore, a first step in potentially promoting wider use of the clean fuel locally.

Temasek, which aims to achieve a net-zero carbon emissions across its portfolio by 2050, earlier this month announced plans to raise US$1 billion with Blackrock Inc. to invest in decarbonization efforts.

Write to Ben Otto at [e-mail]

(END) Dow Jones Newswires

April 21, 2021 23:20 ET (03:20 GMT)

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