Cheap green hydrogen-based fuels are India’s biggest strength in decarbonising shipping, a study by the Global Maritime Forum (GMF) said.

GMF’s research found that the production costs for green hydrogen and green ammonia in India are among the lowest in the world due to abundant renewable resources.

India’s location on major trade routes is drawing interest from international shipping companies. The Green Hydrogen Mission, and the upcoming National Green Shipping Policy, are also helping support domestic production, the report noted.

But uncertain demand remains a major barrier for green fuel producers, GMF said, with current international demand for green hydrogen and green ammonia focused largely on Japan, Singapore, South Korea and Europe. Regulatory environments in these countries are supporting demand and green fuel offtakes.

GMF said a global, unified regulatory scheme under the IMO’s Net-Zero Framework will create the strongest industry-wide demand signal to encourage fuel offtakers.

Aligning production with international standards such as the EU’s Renewable Fuel of Non-Biological Origin (RFNBO) rules, alongside domestic regulations, could strengthen India’s green fuel export competitiveness, GMF said.

India’s centralised grid could support green fuel production, but its heavy reliance on coal may make it harder for producers to meet international standards such as the EU’s RFNBO renewable electricity criteria, potentially limiting export competitiveness.

Meanwhile, domestic demand for these fuels is limited but growing, largely driven by government policy ambitions and decarbonization demand from steel and fertiliser production.

The report said that the designation of three Indian ports as green hydrogen hubs has helped create domestic demand for green maritime fuel production and the build-out of bunkering capacity.

India’s trained technical workforce is another strength in the country’s maritime decarbonisation initiatives.

India’s shipbuilding, by comparison, is underdeveloped and lacks the institutional legacy of established players like China, South Korea and Japan, GMF said. But orders are slowly starting to come through.

Source: ENGINE by By Nachiket Tekawade https://www.engine.online/news/indias-strength-in-shipping-decarbonisation-lies-in-cheap-fuel-production-gmf-7e5b