Global Context: Decarbonising Shipping
- IMO Target: Net-zero emissions from global shipping by 2050.
- Current fuels: VLSFO, diesel, LNG.
- Transition fuels: LNG (↑ 5% efficiency).
- Final green fuels: Green methanol, ammonia, biofuels.
Relevance : GS 3(Infrastructure , Environment and Ecology)
Green Fuels: Production & Properties
- Green Hydrogen: Via electrolysis of water using renewable power.
- Green Ammonia: From hydrogen + nitrogen; more stable than H₂.
- Green Methanol: From green hydrogen + captured industrial CO₂.
Fuel Preferences & Industry Trends
- Shipping industry is technology-conservative.
- First phase: Methanol (10% CO₂ emissions of VLSFO); easier integration.
- Next phase: Ammonia (zero GHG) but complex onboard processes.
- Over 360 methanol-ready ships are in operation/order.
- Leaders: Maersk, CMA CGM, Evergreen.
Financial Viability & Price Gap
- E-methanol cost (Feb 2024): $1,950/tonne vs. VLSFO $560/tonne.
- Cost drivers: Renewable power (10–11 MWh/tonne) + electrolyser capex.
- Projected demand by 2028: 14 million tonnes vs. supply of 11 million tonnes → price pressures.
India’s Strategic Leverage
- Solar capacity: 2.82 GW (2014) → 105 GW (2025).
- Electrolyser PLI scheme + 1.5 GW local capacity by GoI.
- India has land, sunlight, and industrial CO₂ sources → ideal for green fuel hubs.
- Tuticorin & Kandla: Green fuel bunkering ports under development.
Policy & Institutional Support
- $10 billion fund to acquire 110 ships — 10–20% to be green-fuel-capable, Indian-flagged, Indian-built.
- De-risking via sovereign guarantees → ↓ capital costs, ↑ global financing.
- Production-Linked Incentives (PLIs): For electrolysers to localise green hydrogen value chain.
- CCUS incentives: To scale green methanol via industrial CO₂ capture.
Shipbuilding Revival & Geoeconomic Potential
- Demand-side incentives for domestic shipbuilding.
- Tie-ups with South Korea, Japan for tech & retrofitting support.
- Goal: Restart Indian ship-owning and build green-capable vessels at scale.
Export Potential & Global Integration
- Singapore: Global bunkering hub (¼ of global marine fuel) needs large-scale green fuel imports.
- India’s goal: Become green fuel supplier to Singapore and global ports.
Challenges
- Dependence on imported solar panels & electrolysers.
- High initial green fuel costs.
- Need for scale, global tie-ups, and strong policy alignment.
Conclusion
India stands at a pivotal moment to lead the global green shipping revolution by leveraging its solar dominance, industrial base, and policy innovation. By converting its maritime aspirations into a clean energy leadership model, India can decarbonise transport, boost shipbuilding, and gain strategic geoeconomic leverage in a low-carbon future.