Hong Kong is set to introduce two new incentive schemes related to green maritime fuel-related vessels, as the city continues to promote the green transformation of its shipping industry and accelerate the development of Hong Kong as a green port.

The Marine Department of the Hong Kong Special Administrative Region Government announced on June 12 that the Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels and the Green Vessels Registration Incentive Scheme will be launched on June 16 for a period of three years.

The two schemes are aimed at encouraging more vessels to bunker green maritime fuels in Hong Kong and accelerating the green transformation of the Hong Kong fleet.

The move also marks a further extension of Hong Kong’s green maritime fuel policy framework. Following the launch of the Green Maritime Fuel Bunkering Incentive Scheme last year, which provides incentives for green maritime fuel bunkering operations, the new initiatives extend policy support to both vessel demand and ship registration.

Port dues concessions of up to 50%

The Port Dues Incentive Scheme for Green Maritime Fuel-related Vessels provides concessions for eligible ocean-going vessels, including OGVs powered by or bunkering specified green maritime fuels in Hong Kong, as well as OGVs carrying green maritime fuels for supply in Hong Kong.

Specified green maritime fuels covered under the scheme include liquefied natural gas, methanol, ammonia, hydrogen and bio-diesel blended with at least 20% bio-fuel.

Eligible OGVs conducting specified operation or operations throughout their stay in Hong Kong may apply for reimbursement of port dues paid in accordance with the Shipping and Port Control Regulations. These include port facilities and light dues, anchorage dues, buoy dues and fees for port clearance permits.

The amount of incentive is equivalent to 25% or 50% of the port dues paid, depending on the type of OGV and the relevant operation category.

Eligible shipowners or their agents must submit the application form together with the required supporting documents to the Marine Department within three months of their vessels’ completion of the relevant operation or operations in Hong Kong and departure from Hong Kong. The approved incentive amount will generally be disbursed within 30 working days.

According to the Marine Department, green maritime fuels are often more expensive than traditional fuels. The new initiative is expected to encourage the industry to adopt green maritime fuels and build up demand for green maritime fuel bunkering services in Hong Kong at an early stage.

The department expects the scheme to attract more than 1,000 visits to Hong Kong by green maritime fuel-related vessels.

Annual subsidy of HK$60,000 for green fuel-powered vessels registered in Hong Kong

The Green Vessels Registration Incentive Scheme provides incentives to green fuel-powered vessels currently or newly registered in the Hong Kong Shipping Registry.

Under the scheme, all Hong Kong-registered ships that use green maritime fuels as their primary propulsion fuel will be eligible to apply. The recognised fuels include LNG, methanol, ammonia and hydrogen, while conventional fuels and biofuels are excluded.

During the three-year period of the scheme, each eligible vessel will receive a subsidy of HK$60,000 once every year. Depending on the timing and duration of the vessel’s registration with the Hong Kong Shipping Registry, each vessel may receive one to three years of incentives, with a maximum subsidy of HK$180,000.

Approval and disbursement of the incentives will take approximately three months from the receipt of an application with all required supporting documents. The vessel’s Hong Kong registration status must be maintained on the date the incentive is disbursed.

The Marine Department said the scheme will encourage vessels using green maritime fuels to register in Hong Kong and promote the green transformation of the Hong Kong fleet, thereby further enhancing the overall competitiveness of the Hong Kong Shipping Registry.

The department estimates that the scheme will attract approximately 100 vessels powered by green maritime fuels to register with the Hong Kong Shipping Registry. Together with green fuel-powered vessels currently registered in Hong Kong, around 170 such vessels registered in Hong Kong are expected to benefit from the scheme within three years of implementation.

Hong Kong advances green maritime fuel bunkering ambitions

The International Maritime Organization has set a target of achieving net-zero carbon emissions in international shipping by around 2050. Against this backdrop, the Hong Kong SAR Government promulgated the Action Plan on Green Maritime Fuel Bunkering in November 2024, committing to a series of measures to support the transition to green maritime fuels and expedite the development of Hong Kong as a green port.

In this year’s Budget, the Government allocated approximately HK$34 million to implement relevant initiatives, including port dues concessions for vessels powered by green maritime fuels as well as those carrying green maritime fuels, and incentives for green fuel-powered vessels registered in Hong Kong.

A spokesman for the Marine Department said that “low-carbon” and “decarbonisation” will be inevitable focal points for the future development of the shipping industry.

At present, Hong Kong leads the Guangdong-Hong Kong-Macao Greater Bay Area in bunker volume, ranking second nationally and seventh globally. The Government said it is committed to leveraging Hong Kong’s existing strengths to fully develop its green maritime fuel bunkering capabilities, with the aim of establishing Hong Kong as a premier hub for high-quality green maritime fuel bunkering and trading.