Context

• Global shipping aims for decarbonisation by 2040–50, shifting from Very Low Sulphur Fuel Oil (VLSFO), diesel, and LNG to green fuels like green ammonia, e-methanol, and biofuels.

About Green Shipping

• Green shipping refers to environmentally sustainable practices and technologies used in the maritime industry to reduce the environmental impact of shipping activities.
• It includes cutting greenhouse gas (GHG) emissions, improving energy efficiency, and minimizing marine pollution.

Need for Green Shipping

• Global Emissions: The shipping industry emits around 1 billion tonnes of GHG annually, accounting for about 2.8% of global emissions
• Future Projections: Emissions may increase by 50–250% by 2050 if unchecked.
• Measures Already Enforced:
• Energy Efficiency Design Index (EEDI): Sets efficiency standards for new ships.
• Energy Efficiency Management Plan (SEEMP): Operational plans to cut emissions.
• Mandatory fuel oil consumption reporting: Improves accountability and transparency.

Production of Green Fuel

• Green hydrogen is produced via water electrolysis using renewable energy. 
• For shipping, more stable alternatives like green ammonia (from green hydrogen and nitrogen) and green methanol (from green hydrogen and industrial carbon dioxide) are preferred. 
• India promotes green ammonia to reduce LNG imports in fertilizer production.

Green Methanol as Preferred Fuel

• Shipping is gradually adopting green methanol as its primary decarbonisation fuel due to its ease of use and lower carbon emissions—about 10% compared to conventional fuels. 
• Green methanol can largely replace VLSFO without major engine modifications, unlike green ammonia, which, despite emitting no greenhouse gases, requires complex onboard handling.
• Over 360 methanol-capable ships are already operational or on order, supported by major companies like Maersk, CMA CGM, and Evergreen.
• Demand for green methanol is projected to exceed 14 million tonnes by 2028, while supply is expected to lag at around 11 million tonnes, adding further price pressure.

India’s Shipping Decarbonisation Strategy and Global Green Fuel Ambitions.

• India plans to decarbonise its domestic shipping by promoting green fuels for container ships and establishing green fuel bunkering hubs at ports like Tuticorin (V.O. Chidambaranar) and Kandla. 
• The government also aims to produce and export green fuels to Singapore, a major global ship fuelling hub handling nearly 25% of the world’s ship fuel needs. 
• With its large solar power capacity and expertise, India is positioning itself as a key global supplier of green fuels to support international shipping’s shift towards sustainability..

Reviving Indian Shipbuilding Through Green Fuel Initiatives

• To boost shipbuilding and shipowning, India is offering demand-side support and incentives for foreign partnerships, especially with South Korean and Japanese shipbuilders. 
• The focus is on building new ships and retrofitting existing ones for green fuel compatibility. 
• India has committed $10 billion to purchase over 110 ships, with plans to ensure 10–20% of these are green fuel-capable, built in Indian shipyards, and fly the Indian flag. 
• This strategy aims to scale up local shipbuilding while aligning with global decarbonisation goals.