Global Shipping’s Decarbonisation and Green Fuels Production

• Global shipping aims for decarbonisation by 2040-50, offering India a significant opportunity.

• Merchant ships primarily use VLSFO, diesel, and methane gas as fuel.

• LNG-powered engines are expected as a transition fuel before transitioning to green fuels like green ammonia, green or emethanol, and biofuels by 2040 and net zero thereafter.

Green Fuel Production

• Green hydrogen is produced from the electrolysis of water using renewable power.

• Green ammonia, made from green hydrogen and nitrogen, is more stable and is encouraged by the government.

• Green methanol is a drop-in replacement for VLSFO and is supported by major container shipping companies.

India’s Decarbonisation Plans

• India committed to decarbonising its domestic shipping, supporting domestic container ships using green fuels and creating green fuel bunkering points.

• The government is looking at producing and supplying green fuels to Singapore, which accounts for nearly one-fourth of all global ship fuelling.

Green Fuels in Indian Shipowning and Shipbuilding

• The government’s move to inject demand-side support for shipbuilders and incentives for foreign cooperation can spur economies of scale and attract global shipbuilders.