Govt greenlights pilot projects for Green Hydrogen in shipping sector

05 Feb 2024 CW Team

The National Green Hydrogen Mission (NGHM) has received government approval for pilot initiatives focused on decarbonising the shipping sector through the utilisation of green hydrogen, as announced by the Ministry of New and Renewable Energy (MNRE).

This initiative, with a budget of Rs 1.15 billion (~$13.9 million) until the financial year 2025-26, is designed to promote the adoption of green hydrogen and its derivatives as a viable fuel for ship propulsion. The primary objectives include the retrofitting of existing ocean-going and inland waterways vessels with green methanol, green ammonia, or hydrogen fuel cell-based propulsion systems, at a cost of Rs 800 million (~$9.7 million) under Component A. The Shipping Corporation of India (SCI) is committed to retrofitting a minimum of two ships by 2027.

Furthermore, under Component B, the program aims to establish bunkering and refuelling facilities for green hydrogen-based fuels at one port along an international shipping route by 2025. This initiative, costing Rs 350 million (~$4.2 million), will be implemented by the Ministry of Ports, Shipping and Waterways (MoPSW), with the specific port to be identified by MoPSW.

It is crucial to note that the program will exclusively fund the capital expenditures associated with retrofitting vessels and developing bunkering and refuelling facilities at ports. Costs related to green hydrogen production or land will not be covered by the initiative. The pilot projects will be executed through the Ministry of Ports, Shipping and Waterways and designated executing agencies.

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