Modern Terminals trials renewable diesel in Hong Kong

Photo: Modern Terminals

Modern Terminals announced Oct. 18 the launch of a trial program for hydrotreated vegetable oil (HVO) at its facilities at Terminal 9 (South).

According to Modern Terminals, it has become the first company in Hong Kong to deploy renewable diesel.

This initiative is part of the company’s decarbonization program and it is estimated that the trial will last for three to four weeks.

Modern Terminals targets to eliminate direct greenhouse-gas (GHG) emissions by 2030 and to become carbon neutral by 2050 under its sustainability strategy.

“We have been looking at various possible technologies for decarbonization since we established our 2030 and 2050 decarbonization goals back in 2021,” said Horace Lo, Modern Terminals’ group managing director. “HVO significantly reduces the greenhouse-gas emissions throughout the entire fuel lifecycle from its production to combustion. Working with Shell Hong Kong on this project, we are looking at HVO to reduce carbon emissions by up to 87 percent when compared to using conventional fossil fuels. Over the coming weeks, we hope to get a better understanding of the application of this greener fuel type and then continue the dialogue with the government, Shell and other green-fuel providers on how we accelerate the availability and use of greener fuel types in Hong Kong.”

To thoroughly test the greener fuel across Modern Terminals’ Hong Kong operation, HVO will be used in three types of equipment including a rubber-tired gantry crane (RTG), a reach stacker and an empty stacker.

Liu Chun San, the undersecretary for transport and logistics, and Kenneth Leung Kai Ming, the principal assistant secretary for environment and ecology (air policy), were at the Modern Terminals’ facilities to witness the launch.

Modern Terminals said that Leung appreciated the commitment of the company in helping the city achieve decarbonization and its efforts in putting words into action for using environmentally friendly fuels in its daily operation.

Liu commented that “the transport sector accounts for about 18 percent of carbon emissions in Hong Kong and we are glad to see companies like Modern Terminals and Shell taking this initiative to support the green-transportation journey of the city.”

Anne Yu, managing director of Shell Hong Kong Ltd., added, “Shell is keen to bring low-carbon energy solutions to Hong Kong to support the green transition of the city, and we are pleased to have an opportunity to work with Modern Terminals on this pioneering project.”

HVO is produced by hydrogenation of ester and fatty acids of various feedstocks such as vegetable oils, animal fats, used cooking oil and waste oil.

It can be used as a drop-in fuel for direct replacement of fossil diesel without the need for modifications to engines approved to use HVO under EN 15940 specifications.