Harbour craft operators to be given grants of up to $250k for switching to electric vessels

SINGAPORE – Electric harbour craft operators can qualify for up to $250,000 in grants as part of efforts to help offset costs and encourage the early adoption of greener vessels.

The Maritime and Port Authority of Singapore (MPA) on Oct 14 said the scheme will run for two years and aims to spur early demand, giving manufacturers and technology providers greater confidence to invest in production and expand capacity.

MPA added that the funding will be split into three payments and disbursed based on a vessel’s battery capacity, at $250 for every kilowatt-hour.

The grant will be determined by vessel size, said MPA.

Smaller boats, such as passenger craft carrying up to 12 people or vessels hauling up to 20 tonnes of cargo, can receive up to $150,000, while larger vessels qualify for the maximum amount of $250,000.

While the scheme officially kicks in on Jan 1, 2027, any fully electric vessel that secures a harbour craft licence between Oct 14, 2026, and Dec 31, 2028, will be eligible.

MPA said the harbour craft sector – which comprises more than 1,600 diesel-powered vessels – is expected to hit net-zero emissions by 2050, in line with national targets.

However, because vessels typically remain in service for more than 20 years, the transition to greener alternatives will need to kick into gear soon.

From 2030, all new harbour craft operating in Singapore’s waters will need to be fully electric or capable of using B100 biofuel – a pure form of biodiesel made from renewable sources – or be compatible with net-zero fuels such as hydrogen.

Senior Minister of State for Transport Murali Pillai said “every transition needs first movers”.

In an address at the Singapore International Bunkering Conference on Oct 14, he said: “Without early adopters, there are no initial orders. Without orders, suppliers have no opportunity to scale.

“And without scale, costs remain high.”

More than 2,000 maritime professionals from over 60 countries attended the conference, which takes place every two years. In 2026, it was held at Resorts World Sentosa, with the theme “Charting a resilient multi-fuel future”.

Murali said: “With the future fuel mix still uncertain, Singapore has decided not to bet on a single winning fuel but is instead building optionality.”

Singapore, he added, is working to ensure that infrastructure is ready to support the use of alternative fuels like ammonia.

On Oct 14, MPA and Enterprise Singapore launched a new Singapore Standard and two technical references for the fuel.

MPA chief executive Ang Wee Keong said: “As shipping transitions towards a wider range of marine fuels, our bunkering standards and capabilities must evolve with it.”

He added that the new standards will support the maritime industry’s transition towards alternative fuels while also strengthening Singapore’s capabilities in meeting global bunkering needs.

To that end, bunkering trials using ammonia will take place at ports in Singapore and Western Australia.

Through the Singapore-Australia Green and Digital Shipping Corridor, the experiences gleaned from the trials will be shared between MPA and the Pilbara Ports Authority.

Besides ammonia, MPA also signed a memorandum of understanding with French ocean transportation and logistics firm CMA CGM and Singapore LNG Corporation to look into the potential use of liquefied bio-methane as marine fuel, including how existing gas infrastructure can be used to support its supply.

At the same time, MPA will open licence applications to operate floating storage units for liquefied natural gas in Singapore’s anchorages by the end of 2026. MPA added that these units will expand storage capacity and make the supply chain more resilient, supporting growing demand.

On the digital front, MPA will start on the second phase of its digital bunkering initiative. While the first phase introduced digital documentation, this next stage aims to boost security and automate data transfers for relevant stakeholders.

Aqil Hamzah is a transport journalist at The Straits Times. He is also interested in issues related to crime and technology.