March 18, 2025 [Aviation Business News]- Hong Kong Air Cargo Terminals Limited (Hactl), the city’s largest independent cargo handler, has signed a new Memorandum of Understanding (MoU) with Shell Hong Kong Limited (Shell) to advance the use of renewable diesel fuel in its ramp equipment and road vehicles.
As part of the agreement, Shell has named Hactl its first Strategic Collaborator on Renewable Diesel initiatives. The partnership will also focus on developing charging infrastructure for electric road vehicles and ground support equipment at Hactl’s SuperTerminal 1 facility.
Since April 2024, Hactl has been participating in an airport-wide pilot programme, led by Airport Authority Hong Kong, to evaluate hydrotreated vegetable oil (HVO) as an alternative fuel for its ramp tractors. The success of this initiative has led to an expanded collaboration with Shell under the new MoU.
Hactl plans to extend HVO usage across its fleet of 190 ground service vehicles, including tractors, loaders, conveyor belts, and passenger steps. This transition serves as an interim measure to reduce emissions while the company continues testing and adopting electric-powered alternatives.
The agreement also includes plans for enhanced electric vehicle charging infrastructure, supporting Hactl’s long-term goal of fully transitioning to electric ground service equipment.
Hactl chief executive Wilson Kwong, said: “Shell Renewable Diesel is a little more expensive than the B5/B7 biodiesel that Hactl has been using, but our research confirms it will achieve a dramatic reduction in life-cycle greenhouse gas emissions compared with traditional petroleum-based diesel fuel. This will be an important factor in achieving Hactl’s overall sustainability targets: full adoption of renewable diesel will help us reduce our overall Scope 1 GHG emissions by 40%.
“HVO requires no modification to engines, and its use does not create any operational issues throughout the seasons and their varying climactic conditions.”
Anne Yu, managing director of Shell Hong Kong Limited, said: “Shell Hong Kong is committed to offering low-carbon energy solutions to our customers in Hong Kong, to help them achieve their decarbonisation ambitions and support the city’s low-carbon transition. The signing of the MoU between Shell and Hactl 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 concludes: “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.”
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