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How is global shipping trying to decarbonise?

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 202814 million tonnes vs. supply of 11 million tonnes → price pressures.

Indias 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 dominanceindustrial 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.


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