The Maritime and Port Authority of Singapore (MPA) has announced a new grant scheme offering up to S$250,000 to operators of electric harbour craft as part of efforts to encourage early adoption of greener vessels. The initiative, unveiled on October 14, will run for two years and aims to stimulate demand for clean maritime technology, giving manufacturers and technology providers assurance to increase production and expand capacity.
Funding will be allocated based on battery capacity at a rate of S$250 per kilowatt-hour and disbursed in three installments. Vessel size will determine the maximum grant amount: smaller boats, such as passenger craft with up to 12 seats or cargo vessels carrying up to 20 tonnes, can receive up to S$150,000, while larger vessels may qualify for the full S$250,000.
Though the scheme officially begins on January 1, 2027, any fully electric vessel obtaining a harbour craft licence between October 14, 2026, and December 31, 2028, will be eligible. The harbour craft sector in Singapore comprises more than 1,600 diesel-powered vessels and is targeted to achieve net-zero emissions by 2050 in alignment with national sustainability goals. Given that vessels typically operate for over two decades, the transition to cleaner propulsion systems is considered urgent.
From 2030 onwards, new harbour craft operating in Singapore waters will be required to be either fully electric, compatible with B100 biofuel—a renewable biodiesel—or capable of using net-zero fuels such as hydrogen. Senior Minister of State for Transport Murali Pillai emphasized the need for early adopters during his keynote at the Singapore International Bunkering Conference and Exhibition. He noted that initial demand is critical to enabling suppliers to scale production and reduce costs, underscoring Singapore’s approach of maintaining fuel diversity rather than relying on a single energy source.
The biennial conference, held this year at Resorts World Sentosa with more than 2,000 participants from over 60 countries, focused on “Charting a resilient multiple future.” Murali highlighted Singapore’s efforts to ensure infrastructure readiness for alternative fuels, including ammonia.
On the same day, MPA and Enterprise Singapore introduced a new Singapore Standard along with two technical references for ammonia fuel. MPA CEO Ang Wee Keong stressed that evolving bunkering standards are essential for supporting the maritime industry’s fuel transition while enhancing Singapore’s role as a global bunkering hub.
Singapore will conduct ammonia fuel trials at its own ports and in Western Australia under the Singapore-Australia Green and Digital Shipping Corridor initiative, sharing insights through collaboration with the Pilbara Ports Authority. Additionally, MPA signed a memorandum of understanding with CMA CGM and Singapore LNG Corporation to explore the use of liquefied bio-methane as marine fuel and how existing gas infrastructure might support its supply.
Complementing these initiatives, MPA plans to open licensing for floating storage units for liquefied natural gas at Singapore’s anchorages by the end of 2026, aiming to increase storage capacity and strengthen supply chain resilience. On the digital front, the authority will advance into the second phase of its digital bunkering project, moving beyond digital documentation to enhance security and automate data exchanges among relevant stakeholders.