by Lloyd's List
4 November 2024 (Lloyd's List) - SHANGHAI aims to be a frontrunner in the bunkering, trading, and certifying alternative marine fuels, with a goal of supplying at least 1m tonnes of green fuels by 2030.
The city plans to set up a bunkering system by 2030, sourcing supplies locally and from projects across China. It will also prepare itself to be a hub for global green fuels trading and certification, as outlined in a recent work plan released by the city’s economic planner and transportation commission.
By 2030, Shanghai anticipates a local supply of 300,000 tonnes of green fuels, encompassing green methanol, ammonia, bio-LNG, and biofuel.
What is more, the city aims to secure a 1m tonnes supply from projects nationwide, intending to enhance collaboration with regions abundant in natural resources for green fuel production, including those in the northeast, west, and along the Yangtze river.
Several methanol projects have been launched in Jilin province in northeast China, leveraging its abundant wind resources and biomass waste, including a project by Shanghai Electric Group, a major power equipment manufacturer, which aims to produce 50,000 tonnes of bio-methanol by 2025.
Shanghai also targets 1m cu m of tax-exempted LNG bunkering for vessels trading internationally by 2030.
With handling more than 260,000 cu m of LNG bunkering last year, it has overtaken Singapore to be the world’s second-largest LNG port.
To meet these bunkering targets, Shanghai will accelerate the construction of facilities, including the storage tanks for LNG and other green fuels at Yangshan port and Waigaoqiao port.
Shanghai port is improving its infrastructure for the efficient storage, transport, and bunkering of alternative fuels to stay competitive in the energy transition, as mentioned by SIPG Energy general manager Luo Wenbin at the recent North Bund forum in late October.
“By the end of this year, carriers will have access to LNG bunkering services at both Yangshan and Waigaoqiao ports.”
Luo mentioned that Shanghai International Port Group has upgraded the storage facilities for green methanol at Yangshan port this year, with the approved port expansion plan securing ample methanol storage capacity.
In addition to being a bunkering hub, Shanghai’s 2030 plan also includes establishing a spot market for green fuel trading, initiating efforts to build a futures market for green fuels, and developing related financial derivative products.
The city also plans to introduce third-party institutions that offer professional services including certification, training, and consulting in the realm of green fuels, such as the International Sustainability and Carbon Certification, a leading certification system that advocates for sustainable, traceable, deforestation-free and climate-friendly supply chains.
