Green Hydrogen Revolution: India Embarks on Pilot Projects in Shipping Sector

In a significant move towards decarbonizing the shipping industry, the Indian government has released guidelines for pilot projects on the use of green hydrogen in the sector. The initiative, backed by a substantial budgetary outlay of Rs 115 crore until the financial year 2025-26, aims to replace fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives.

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Implementation and Thrust Areas

The Ministry of New and Renewable Energy (MNRE) will spearhead the implementation of these pilot projects through the Ministry of Ports, Shipping, and Waterways (MoPSW) and designated implementing agencies. Two key thrust areas have been identified: retrofitting existing ships to run on green hydrogen or its derivatives, and developing bunkering and refuelling facilities in ports along international shipping lanes for green hydrogen-based fuels.

Scheme Implementing Agencies

The Shipping Corporation of India (SCI) or its successor, in the event of disinvestment, will serve as the Scheme Implementing Agency (SIA) for retrofitting existing ships under Component-A of the scheme. Transparent procurement processes adhering to General Financial Rules (GFRs) will be followed in selecting projects.

For Component-B of the scheme, MoPSW will finalize the SIA and issue administrative sanctions based on recommendations from the Project Appraisal Committee (PAC). The selected Executing Agencies (EAs) will disseminate knowledge and project outcomes through reports, workshops, and publications, sharing findings, best practices, and lessons learned.

Financial Support and Impact

Financial support for projects will be evaluated and granted based on specific needs, merits, and feasibility. The adoption of green hydrogen and its derivatives in the shipping sector, facilitated by these pilot projects, is expected to drive the development of essential infrastructure, including refuelling stations, storage, and distribution networks. This, in turn, will pave the way for establishing a robust green hydrogen ecosystem in the shipping industry.

India's commitment to green hydrogen in the shipping sector aligns with global efforts to reduce carbon emissions and transition towards sustainable maritime transportation. These pilot projects hold immense potential to transform the industry, fostering innovation, job creation, and environmental stewardship. As India embarks on this transformative journey, the successful implementation of these projects will serve as a beacon of hope for a greener and more sustainable future for the shipping sector.