How is global shipping trying to decarbonise?, Pg8

Key Highlights:

• Shipping currently relies on VLSFO, diesel, and LNG; shift toward green methanol, green ammonia, and biofuels is underway.
• Over 360 methanol-powered ships are in service or under construction globally.
• Green methanol is a near drop-in replacement fuel, while green ammonia requires major modifications and safety protocols.
• India is setting up green fuel bunkering hubs at Tuticorin and Kandla ports.
• Green e-methanol costs $1,950/tonne vs VLSFO at $560/tonne.
• India aims to supply green fuels to Singapore, a major bunkering station handling 25% of global refuelling.
• India pledges $10 billion for 110 ships, encouraging green-capable vessels built in domestic shipyards.

Detailed Insights:

• Green hydrogen produced by electrolysis using renewable energy is a key input for both green methanol and green ammonia.
• Green methanol adoption is preferred due to ease of storage, lower toxicity, and minimal retrofitting requirements.
• Shipping industry conservatism and high upfront costs of renewable-based fuels delay widespread adoption.
• India's solar power success (105 GW in 2025) demonstrates the feasibility of scaling green energy inputs for fuel production.
• Production-linked incentive (PLI) schemes, carbon capture (CCUS) support, and sovereign guarantees are critical to reducing fuel costs and attracting global capital.
• Partnerships with South Korean and Japanese shipbuilders aim to boost India's domestic shipbuilding ecosystem.
• Multilateral financing at lower interest rates (4% vs domestic 11–12%) can unlock large-scale investment in marine fuel projects.

Key Concepts Involved:

• Green Hydrogen: Hydrogen generated from water using renewable electricity through electrolysis.
• Green Methanol: Synthesised using green hydrogen and captured CO₂ from industrial sources.
• Green Ammonia: Produced from green hydrogen and atmospheric nitrogen; zero GHG emissions but handling complexity.
• Drop-in Fuel: A substitute fuel that can be used with little or no engine modification.
• Bunkering: The process of supplying fuel to ships at ports.