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

Singapore is offering grants to make fully electric harbour craft more affordable. The two-year scheme is designed to create early demand, giving manufacturers and technology providers confidence to invest and expand production. It officially begins on January 1, 2027.

The payment mechanism is tied to battery capacity. Operators receive $250 for every kilowatt-hour, divided across three payments. Vessel size sets the ceiling: smaller passenger or cargo boats can receive up to $150,000, while larger vessels can receive up to $250,000.

Eligibility is broader than the official launch date. Fully electric vessels securing a harbour craft licence from October 14, 2026, through December 31, 2028, can qualify. The grant is meant to encourage first movers before Singapore requires all new harbour craft to use electric power, B100, or net-zero fuels from 2030.

An electric harbour craft is a boat that runs on stored electricity, using batteries and electric propulsion rather than a diesel engine burning fuel. The article focuses on fully electric vessels, meaning the craft is powered entirely by electricity during operation. This is one route toward reducing emissions from harbour transport.

A diesel-powered vessel carries and burns diesel to produce movement. An electric vessel stores energy in batteries and uses that energy to drive its propulsion system. The grant reflects this technical difference: payments are calculated from battery capacity, at $250 per kilowatt-hour.

The change matters because Singapore’s harbour-craft sector contains more than 1,600 diesel-powered vessels. New harbour craft operating in Singapore’s waters from 2030 must be fully electric, able to use B100, or compatible with net-zero fuels. The wider sector is expected to reach net-zero emissions by 2050.

Singapore’s harbour-craft sector comprises more than 1,600 vessels, and the article describes them as diesel-powered. This makes the fleet a substantial part of the country’s maritime transition. It also gives the policy a clear scale: cleaner propulsion must eventually reach the sector as a whole, not just a few pilot boats.

The article does not provide a separate number for vessels that will switch specifically to electric power. Instead, it says the harbour-craft sector is expected to achieve net-zero emissions by 2050. The transition can therefore include fully electric vessels, B100-capable craft, and vessels compatible with net-zero fuels such as hydrogen.

From 2030, every new harbour craft operating in Singapore’s waters must meet one of those cleaner requirements. Since vessels commonly remain in service for more than 20 years, operators need to begin replacing or upgrading the fleet well before 2050.

Few early adopters would slow the entire transition. Operators would have less incentive to order cleaner harbour craft, and manufacturers would see too little demand to expand production. Technology providers would also have less confidence to invest in capacity and improve their products.

The key mechanism is scale. Senior Minister of State for Transport Murali Pillai said that without early adopters there are no initial orders; without orders, suppliers cannot scale; and without scale, costs remain high. The grant is designed to break that cycle by lowering the cost for first movers.

Fuel suppliers would face a similar problem if demand for alternative fuels stayed weak. Singapore is building infrastructure for options including ammonia, bio-methane and LNG, while digital bunkering is advancing. Early vessel orders can help create the demand and operating experience needed for cleaner fuels, equipment and supply chains to become more practical.

The Maritime and Port Authority of Singapore is supporting several fuel pathways because no single future marine fuel has been confirmed. Murali Pillai said Singapore has decided not to bet on one winning fuel. Instead, it is building optionality so the maritime sector can adapt as technologies, supply chains and demand develop.

That approach includes grants for fully electric harbour craft and requirements allowing B100 or net-zero fuels from 2030. MPA and Enterprise Singapore have also launched an ammonia standard and technical references. MPA is exploring liquefied bio-methane with CMA CGM and Singapore LNG Corporation, while floating LNG storage units are planned for Singapore’s anchorages.

This variety reduces dependence on one solution. It also supports different vessel needs and fuel infrastructure. Singapore is preparing for ammonia bunkering trials with Western Australia and advancing digital bunkering, helping the port handle a broader range of fuels securely and efficiently.

Singapore’s 2030 rule allows cleaner choices beyond battery-electric power. New harbour craft must be fully electric, capable of using B100, or compatible with net-zero fuels such as hydrogen. The policy therefore sets an emissions direction without requiring every vessel to use the same technology.

B100 is pure biodiesel made from renewable sources. Hydrogen is identified in the article as an example of a net-zero fuel. Ammonia is another alternative marine fuel being prepared through a Singapore Standard, technical references and planned bunkering trials. Unlike B100 and hydrogen, the article does not classify ammonia in the 2030 harbour-craft requirement.

These options differ in fuel type and supporting infrastructure. Batteries store electricity onboard. B100 is a liquid biofuel used in compatible engines. Hydrogen and ammonia require dedicated handling arrangements. Singapore is developing those capabilities while studying bio-methane and expanding LNG storage.

Fuel and vessel technology determine how harbour craft produce emissions during operation. Singapore expects its harbour-craft sector to reach net-zero emissions by 2050, so continuing to add conventional diesel vessels would make that goal harder. Cleaner propulsion and fuels must enter the fleet soon, not only near the deadline.

The challenge is especially clear because vessels typically remain in service for more than 20 years. An operator choosing a vessel today may keep it for much of the period leading to 2050. Electric craft also need batteries and charging arrangements, while alternative fuels need standards, storage, bunkering and compatible vessels.

The transition therefore depends on more than individual purchases. Grants can encourage early orders, helping manufacturers and technology providers scale and lower costs. Singapore is also developing ammonia standards, bio-methane plans, LNG storage units and digital bunkering to make a multi-fuel transition possible.