Singapore Offers Up to S$250,000 per Vessel to Spur Electric Harbour Craft Adoption

Summary

The Maritime and Port Authority of Singapore will give owners of new fully electric harbour craft up to S$250,000 per vessel under a two-year Early Adopter Scheme starting January 1, 2027. The grant pays S$250 per kWh of propulsion battery capacity, as Singapore’s 1,600-strong, largely diesel harbour craft fleet works towards net-zero emissions by 2050.

Article

Singapore: The Maritime and Port Authority of Singapore (MPA) has launched an Early Adopter Scheme for Electric Harbour Craft (EASE) to encourage owners to switch to fully electric vessels, offering grants of up to S$250,000 per vessel.

Announced on October 14, 2026, at the Singapore International Bunkering Conference (SIBCON), the scheme takes effect on January 1, 2027, and will run for two years.

How does the grant work?

Owners buying eligible electric harbour craft will receive S$250 for every kilowatt-hour (kWh) of installed battery capacity used for propulsion. Payouts are capped by vessel size:

• Small craft: passenger craft carrying 12 or fewer passengers, or cargo craft of 20 tonnes or less, capped at S$150,000
• Large craft: all other harbour craft licence categories, capped at S$250,000

MPA gave two examples: a passenger launch with a 500 kWh battery would receive S$125,000, while a supply vessel with a 1.2 MWh battery would receive the maximum S$250,000.

The grant will be paid in three tranches over two years: 30% on acceptance, 30% on the first anniversary and 40% on the second.

Which vessels qualify?

Fully electric vessels that first obtain a harbour craft licence between October 14, 2026, and December 31, 2028, are eligible. The grant applies to all vessel types operating within Singapore that meet licensing requirements.

Why is MPA offering the grant?

MPA said the scheme aims to give manufacturers and technology providers confidence to invest in production and expand capacity. It expects electric harbour craft costs to fall as volumes rise and technology matures, improving commercial viability.

Speaking at SIBCON, Senior Minister of State for Transport Murali Pillai said “every transition needs first movers,” explaining that early orders are needed for suppliers to scale and bring costs down. He added that Singapore is not betting on a single winning fuel but building optionality across fuels.

What is the wider context?

Singapore’s harbour craft sector has more than 1,600 mostly diesel-powered vessels providing passenger transport, towage, bunkering and maintenance services. The sector is expected to reach net-zero emissions by 2050, and because harbour craft typically stay in service for over 20 years, fleet renewal decisions in the coming years are critical.

From 2030, all new harbour craft operating in Singapore must be fully electric, capable of running on B100 biofuel, or compatible with net-zero fuels such as hydrogen.

How is charging infrastructure being expanded?

MPA will expand charging in step with adoption. After a pilot charger at Marina South Pier in 2024, a second will be rolled out in the coming months. Four more chargers will be installed at Loyang Offshore Supply Base, with public chargers at Jurong Port and West Coast Pier in 2027.

MPA will also study power capacity upgrades at key terminals and explore flexible options, including battery-based and mobile charging.

Why does it matter?

Harbour craft are an early, practical target for electrification because they run short, predictable routes close to charging points. Singapore’s combination of grants, a 2030 mandate and public charging gives operators a clear pathway, and could accelerate demand for electric workboats, tugs and ferries across the region.

The approach is relevant for India, where Kochi Water Metro already operates battery-electric ferries and the Green Tug Transition Programme is rolling out electric tugs at major ports, including Kandla.

FAQs

How much can electric harbour craft owners receive?

S$250 per kWh of propulsion battery capacity, capped at S$150,000 for small craft and S$250,000 for large craft.

When does the scheme start?

The Early Adopter Scheme for Electric Harbour Craft takes effect on January 1, 2027, and runs for two years.

Which vessels are eligible?

Fully electric harbour craft first licensed between October 14, 2026, and December 31, 2028.

How is the grant paid?

In three tranches: 30% on acceptance, 30% after one year and 40% after two years.

What is Singapore’s 2030 requirement for harbour craft?

All new harbour craft must be fully electric, B100-capable or compatible with net-zero fuels.