How is global shipping trying to decarbonise? Green fuels, challenges, and India's role
Global shipping aims for decarbonisation by 2040-50, presenting a significant opportunity for India. The industry is transitioning from traditional fuels like Very Low Sulphur Fuel Oil (VLSFO) and LNG to green alternatives such as green ammonia and e-methanol. Green hydrogen, produced via renewable energy, is foundational, with green ammonia being preferred for its stability in shipping. India is encouraged to become a marine green fuels production hub, leveraging its solar energy revolution and policy frameworks. Challenges include high upfront capital costs, price discrepancies, and reliance on imports for key technologies. The article suggests innovative financial instruments, PLI schemes, CCUS incentives, and demand-side support for green shipbuilding to achieve this goal.
Key Points
- Global shipping is committed to decarbonisation by 2040-50, transitioning from traditional fuels to green alternatives like green ammonia and e-methanol.
- Green hydrogen, derived from renewable power, is the key enabler, with green ammonia being a more stable and practical fuel for shipping than hydrogen itself.
- India has a significant opportunity to establish itself as a global hub for marine green fuel production, building on its successful solar energy revolution.
- Challenges include the high cost of green fuels, reliance on imports for critical technologies, and the need for substantial investment and policy support.
- Policy recommendations include innovative financial instruments, Production-Linked Incentive (PLI) schemes, Carbon Capture, Utilisation, and Storage (CCUS) incentives, and demand-side support for green shipbuilding.
Exam Facts
- Decarbonisation target for global shipping: 2040-50.
- Current primary fuels: Very Low Sulphur Fuel Oil (VLSFO), diesel, methane gas (LNG).
- Future green fuels: Green ammonia, green or e-methanol, biofuels.
- India's solar capacity growth: From 2.82 GW to 105 GW (2014-2025).
- Government support: $10 billion pledged for ship purchases.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.