Ministry of Oceans and Fisheries to Increase Eco-Friendly Ship Fuel Supply Ratio to 30% by 2030

The government plans to expand the share of eco-friendly ship fuel supply to 30% by 2030 and strengthen the proportion of eco-friendly fuel-powered container ships entering domestic ports by 20% compared to the current level. The government aims to raise the port storage capacity for eco-friendly ship fuels to 1 million tons, positioning itself as a key hub port for eco-friendly ship fuel supply in Northeast Asia.

Yoon Hyun-soo, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, is speaking at a briefing on the establishment plan for an eco-friendly ship fuel supply chain, jointly prepared by related ministries, at the Government Sejong Complex on the 14th.
[Image source=Yonhap News]

On the morning of the 15th, the Ministry of Oceans and Fisheries announced the "Plan to Establish an Eco-Friendly Ship Fuel Supply Chain" at an emergency economic ministers' meeting held at the Government Seoul Office. This plan is based on the assessment that the availability of eco-friendly ship fuel supply will become a major factor determining port competitiveness in line with the International Maritime Organization (IMO)'s 2050 carbon neutrality goal.

The Ministry of Oceans and Fisheries plans to pursue four major tasks to secure a port storage capacity of 1 million tons for eco-friendly ship fuels: △ creating a market for eco-friendly ship fuels △ establishing a supply chain for eco-friendly ship fuels △ inducing private investment △ and improving systems to strengthen the industrial base.

First, Ulsan Port will be designated as a hub port for eco-friendly fuel supply to respond to the demand of domestic and international shipping companies. By 2027, the plan is to proactively supply at least 600,000 tons of liquefied natural gas (LNG) (25% of demand) and 230,000 tons of green methanol (full demand), while utilizing the Korea Gas Corporation’s Tongyeong base as a backup supply base. By 2030, a total of 317 vessels, including national foreign vessels and government vessels, will be converted to eco-friendly ships, and green shipping routes will be expanded from Korea-US to Korea-Australia and Korea-European Union (EU).

Supply chains for each type of eco-friendly ship fuel will also be established. For LNG, a ship-use natural gas tariff system will be introduced and direct imports promoted to secure price competitiveness. Considering that there are no dedicated fuel supply vessels for green methanol and that shipbuilding takes considerable time, related regulations will be revised to allow coastal liquid cargo vessels to concurrently supply fuel. Plans will also be made to secure fuel by utilizing chemical infrastructure tanks at existing ports. For ammonia and hydrogen, existing port infrastructure will be used, and depending on future demand, production and storage facilities within ports will be established, with priority site allocation from the port development stage.

Yoon Hyun-soo, Director of the Maritime Logistics Bureau at the Ministry of Oceans and Fisheries, is speaking at a briefing on the establishment plan for an eco-friendly ship fuel supply chain, jointly prepared by related ministries, at the Government Sejong Complex on the 14th.
[Image source=Yonhap News]

Establishment of a 1 trillion KRW Eco-Friendly Ship Fuel Infrastructure Fund

The Ministry of Oceans and Fisheries is also planning to establish a 1 trillion KRW "Eco-Friendly Ship Fuel Infrastructure Fund" (tentative name) to respond to visible investment demand. Government subsidies covering 10-30% of the ship price will be provided when new eco-friendly fuel supply vessels are built, and private investment in eco-friendly ship fuel infrastructure will be induced through investment and payment guarantees via the Korea Ocean Business Corporation.

Related system improvements will also be pursued. The approval system for fuel supply safety management plans using ship-to-ship (STS) methods will be converted to a notification system, and the restriction on fuel supply business areas via tank lorries will be abolished to flexibly respond to demand by port. Temporary port fee reductions will be applied to eco-friendly fuel supply vessels and demonstration port projects to secure eco-friendly fuel supply performance. Additionally, installation of supply volume measurement equipment on ship fuel supply vessels will be mandated to fundamentally block illegal distribution of duty-free fuel and disputes over supply volume.

Furthermore, by monitoring technological development trends and order volumes of eco-friendly ships, the Ministry plans to prepare response measures to supply LNG, methanol, ammonia, hydrogen, and other fuels promptly at domestic ports according to demand. Minister Cho Seung-hwan of the Ministry of Oceans and Fisheries stated, "We will enhance the competitiveness of our shipping industry and ports through proactive public-led establishment of an eco-friendly ship fuel supply chain and comprehensive support."

This content was produced with the assistance of AI translation services.