Shell recognizes Hong Kong Air Cargo Terminals as its 1st strategic collaborator on renewable diesel initiatives

Photo: Hong Kong Air Cargo Terminals Ltd.

Hong Kong Air Cargo Terminals Ltd.—Hong Kong’s largest independent cargo handler—announced March 4 that it is entering into a new memorandum of understanding (MOU) with Shell Hong Kong Ltd., covering the supply of renewable diesel fuel for its ramp equipment and road vehicles.

Shell is recognizing Hong Kong Air Cargo Terminals as its first strategic collaborator on renewable diesel initiatives.

The MOU also encompasses strategic collaboration on charging infrastructure for electric vehicles (EVs) and ground-services equipment at SuperTerminal 1.

Hong Kong Air Cargo Terminals has been working with Shell in a one-year airport-wide program led by Airport Authority Hong Kong since April 2024, involving some of its ramp tractors, to evaluate the use of hydrotreated vegetable oil (HVO), also known as renewable diesel.

The pilot scheme’s success has driven the extension and expansion of the cooperation through this new dedicated agreement between Hong Kong Air Cargo Terminals and Shell.

“Shell renewable diesel is a little more expensive than the B5/B7 biodiesel that Hong Kong Air Cargo Terminals has been using, but our research confirms it will achieve a dramatic reduction in lifecycle greenhouse-gas (GHG) emissions compared with traditional petroleum-based diesel fuel,” said Wilson Kwong, the chief executive for Hong Kong Air Cargo Terminals. “This will be an important factor in achieving Hong Kong Air Cargo Terminals’ overall sustainability targets—full adoption of renewable diesel will help us reduce our overall scope 1 GHG emissions by 40 percent.”

Kwong added, “HVO requires no modification to engines, and its use does not create any operational issues throughout the seasons and their varying climactic conditions.”

Hong Kong Air Cargo Terminals plans to expand the use of HVO across more of its 190-strong ground-service equipment fleet, which includes tractors, loaders, conveyor belts and passenger steps.

“This is an interim step to reduce emissions while Hong Kong Air Cargo Terminals progressively tests and introduces electrically powered alternatives,” Hong Kong Air Cargo Terminals stated.

The MOU with Shell also covers EV-charging infrastructure, which the company said will become increasingly important as it pursues the switch to electrically powered ground-service equipment.

“Shell Hong Kong is committed to offering low-carbon energy solutions to our customers in Hong Kong, to help them achieve their decarbonization ambitions and support the city’s low-carbon transition,” said Anne Yu, the managing director of Shell Hong Kong. “The signing of the MOU between Shell and Hong Kong Air Cargo Terminals is not only a strategic alliance between us, but also a shared commitment to social and environmental responsibility to advance the application of low-carbon energy to address the challenge of global climate change.”

Kwong concluded, “By signing this MOU with Shell, we aim to set new and achievable goals for sustainable vehicle operations in the air-cargo industry here and around the world.”