Shanghai released a work plan on Oct 30 to boost the green transformation of global maritime fuels.

According to the plan, the municipality aims to establish a green fuel supply system for shipping by 2030, catering to both domestic and international needs.

By that time, the bonded liquefied natural gas bunkering capacity at Shanghai Port is projected to reach 1 million cubic meters (liquid), while bunkering capacities for green methanol and ammonia are expected to hit 1 million metric tons.

A preliminary framework for a green fuel bunkering center for international shipping will also be in place, laying a solid foundation for the development of international green fuel trading and certification service centers.

The following are some of the major targets and measures stipulated in the plan:

Green fuel supply system

Shanghai aims to achieve a green fuel supply capacity of 1.3 million tons by 2030, with 300,000 tons supplied locally and 1 million tons sourced externally.

It will expedite the expansion of LNG stations and pipelines, ensuring sufficient resources for bonded LNG bunkering for vessels engaged in international shipping, while maintaining a secure natural gas supply throughout the municipality.

It will also explore and support the establishment of bonded LNG storage tanks and green fuel storage tanks in the Yangshan Port and the Waigaoqiao Port Area (No 5 Terminal).

International cooperation

Shanghai will expedite the construction of the green shipping corridors linking Shanghai Port with the ports of Los Angeles and Hamburg, promoting the gradual transition of the ports and the shipping industry towards low-carbon and zero-carbon operations.

The city will work to attract international certification organizations, including the International Sustainability and Carbon Certification.

Optimized services

Building on the "single window" declaration system for entry and exit of vessels engaged in international trade and the paperless operation of logistics information for customs clearance, Shanghai aims to streamline the process so that end users are exempt from appearing in-person to complete procedures, while fuel-supplying vessels complete all related formalities in one step.

The city will further explore innovative methods such as "nighttime bunkering operations", expand LNG bunkering permits from the Yangshan Port Area to the entire Shanghai Port, and assess "anchorage-based bunkering" in a timely manner to facilitate the establishment of dedicated anchorages for LNG bunkering and chemical tankers.

Shanghai will encourage relevant trading institutions and enterprises to establish green fuel trading and information exchange platforms in the Lin-gang Special Area.

The city aims to complete the establishment of a green fuel spot trading market by 2030, explore the formation of a futures trading market for green fuels, and develop related financial derivative products.

Shanghai will study and release key trading data including transaction types, trading volumes, and price indices, and will introduce a series of green fuel price indices with international influence.

It will encourage domestic professional service organizations to provide certification services for overseas green fuel products.

The city will study support policies for renminbi settlement in oil and gas trade, better support bonded LNG bunkering and green fuel bunkering for vessels engaged in international shipping, and do research on reducing or waiving port service fees for ships refueling with green fuels.

Industrial development

Prioritizing the use of methanol and ammonia over hydrogen, and taking into account the development of other green fuels such as biomass natural gas and fuel, Shanghai will proactively and appropriately promote the adoption of diverse green fuels in international shipping.

The city will build high-level, high-standard green fuel industrial clusters in areas such as the Lin-gang Special Area and the Shanghai Chemical Industry Park.

It will select and cultivate leading enterprises in the industrial chain for green fuels, introduce and foster a batch of "specialized and sophisticated enterprises that produce unique and new products" in the field of green fuels, and forge a group of projects with remarkable industrial driving capabilities.

Source: Shanghai Municipal Development and Reform Commission

Note: The English version of the work plan is for reference only; the official Chinese document shall prevail.