The move marks a step towards the Singapore port authority's rule for all new harbour craft operating in its waters to be electric or run on biofuels or net-zero fuels from 2030.

Shell Eastern Trading has agreed to work with the port authority to develop charging infrastructure for electric harbour craft and work on research and development for low and zero-carbon fuels over five years, Singapore's Maritime and Port Authority (MPA) said.

The oil giant launched the first of a series of 200-seater electric commuter ferries at its refinery-petrochemical complex on Pulau Bukom on Monday. It plans to have another two running by August, partly replacing diesel-powered ferries now in use.

The company also plans to run a hydrogen fuel cell trial on a Shell-chartered vessel later this year, Nick Potter, a general manager at Shell Shipping and Maritime, said in a statement.

(Reporting by Jeslyn Lerh; Editing by Sonali Paul)

By Jeslyn Lerh