India's Green Hydrogen Pilot Projects in the Shipping Sector
Key Ideas
  • The Ministry of New and Renewable Energy in India issued Scheme Guidelines for pilot projects focusing on green hydrogen in the shipping sector to promote decarbonization and reduce fossil fuel dependency.
  • The Scheme emphasizes retrofitting ships with green hydrogen-based propulsion systems and establishing bunkering facilities on ports, with a total budget of Rs 115 crore allocated until the financial year 2025-26.
  • Key components include transparent project awards, financial assistance based on need and feasibility, oversight by Steering Committee and Project Approval Committee, and monitoring reports to ensure successful implementation.
  • The Scheme aims to evaluate economic viability, effectiveness, and safety of green hydrogen utilization in shipping, contributing to India's self-reliance and emergence as a global green hydrogen hub.
The Ministry of New and Renewable Energy (MNRE) in India has introduced Scheme Guidelines for implementing pilot projects focused on green hydrogen in the shipping sector to advance the country's decarbonization efforts and reduce reliance on fossil fuel imports. The Scheme for Shipping Sector under the MNRE's mission aims to promote the production, usage, and export of green hydrogen while making India self-reliant and positioning it as a global hub for green hydrogen technologies. The Scheme targets the pivotal role of shipping and port operations in influencing the future demand and trade of green hydrogen. It calls for pilot projects to be initiated through the Ministry of Ports, Shipping and Waterways to assess the potential of green hydrogen and its derivatives within the sector. Key components of the Scheme include retrofitting existing ships with green hydrogen-based propulsion systems and developing bunkering and refueling facilities for green hydrogen-based fuels. The executing agencies are mandated to transparently award projects and share project outcomes and best practices. Financial assistance under the Scheme will support capital expenditure on components, with oversight by a Steering Committee and Project Approval Committee to ensure successful implementation, monitoring, and adjustments as needed. Quarterly reports will be provided to monitor progress. The Scope of Funding includes retrofitting oceangoing vessels with green ammonia or methanol propulsion systems under Component A and establishing bunkering facilities at a selected port for Component B. The Scheme has allocated a total budget of Rs 115 crore until 2025-26, with distinct funding for each component. The Implementation Approach involves selecting suitable ships and ports, issuing calls for proposals, evaluating submissions, and executing approved projects through the designated Special Implementing Agencies. The Scheme aims to evaluate the economic viability and safety of green hydrogen utilization in the shipping sector to drive India's sustainable growth and environmental goals.
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