Financiers and Insurers Ready to Support Electrification of the Domestic Harbour Craft Sector
Powering Progress | Financiers and Insurers Embrace Harbour Craft Electrification
The Maritime and Port Authority of Singapore (MPA) has garnered significant interest from financial institutions and insurance providers in response to its Expression of Interest (EOI) aimed at bolstering the adoption of electric harbour craft (e-HC) in Singapore. The proposals, totaling 12 in financing and seven in insurance, were submitted by a mix of local and international entities including financial institutions, financial intermediaries, marine insurers, and insurance brokers.
In an effort to expand financing options for harbour craft owners, MPA has shortlisted proposals from DBS Bank Ltd, United Overseas Bank Limited, BNP Paribas Singapore Branch, KfW IPEX-Bank Asia Ltd, and Société Générale. These proposals focus on providing direct debt financing options. Additionally, the strong interest from financial institutions and intermediaries has led MPA to consider alternative financing solutions beyond debt financing.
Furthermore, MPA, in collaboration with Enterprise Singapore (EnterpriseSG), is exploring the integration of interested financial institutions into the Enterprise Financing Scheme – Green (EFS-Green). This initiative aims to support lending for harbour craft owners planning to adopt green technologies and solutions for their fleet, with EnterpriseSG undertaking risk-sharing of 70%.
Regarding insurance, the seven submissions indicate that proposed insurance premiums for e-HC are comparable to those of conventional harbour craft. However, participants in the EOI raised concerns regarding information sharing, access to technical and operational information, loss prevention programs, and quality assurance mechanisms. MPA plans to address these concerns by consulting the industry on potential supportive mechanisms such as establishing a data repository platform, developing training programs, and implementing quality assurance frameworks.
In addition to financing and insurance initiatives, MPA announced plans to pilot three vessel charging concepts in Singapore, with a focus on developing, operating, and maintaining e-HC charging points. These initiatives aim to support the development of the e-HC charging infrastructure and ecosystem in the Port of Singapore.
Moreover, MPA is collaborating with industry stakeholders and academia to develop a Technical Reference (TR) for e-HC charging and battery swap systems. The draft TR will provide guidelines for onshore electrical installations to ensure safety, operational efficiency, and interoperability. It will align with relevant International Electrotechnical Commission (IEC) standards and adopt charging practices such as the Combined Charging System (CCS) and the upcoming Megawatt Charging System (MCS).
MPA’s recent shortlisting of 11 passenger launch and cargo lighter vessel designs underscores its commitment to enhancing vessel designs and reducing energy requirements. These efforts are expected to result in overall cost savings for companies transitioning to e-HC.
Finally, MPA’s directive for all new harbour craft operating in the Port of Singapore to be fully electric, capable of using B100 biofuel, or compatible with net zero fuels by 2030 demonstrates its proactive approach towards environmental sustainability. Collaborative efforts with industry stakeholders aim to develop standards for biofuels, ensuring a smooth transition towards greener maritime practices.