Govt unveils guidelines for supporting pilot projects using Green Hydrogen in shipping sector

New Delhi: The government has come out with guidelines for providing financial support to pilot projects for using green hydrogen in the shipping sector. The Ministry of New and Renewable Energy (MNRE) and the Ministry of Ports, Shipping and Waterways will be the nodal ministries for the implementation of the scheme. The guidelines, named ‘Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Shipping Sector,’ aims “to support the deployment of Green Hydrogen and its derivatives as fuel for ship propulsion, including bunkering and refueling, on a pilot basis.”

Under the National Green Hydrogen Mission, along with other initiatives, the MNRE will implement pilot projects in the shipping sector, for replacing fossil fuels and fossil fuel-based feedstock with Green Hydrogen and its derivatives. These pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways and the implementing agencies nominated under this scheme. The scheme will be implemented with a total budgetary outlay of Rs 115 crore till the financial year 2025-26.

Use of green hydrogen in shipping sector pilot projects

Two areas have been identified as thrust areas under the pilot projects. These are retrofitting of existing ships so as to enable them to run on Green Hydrogen or its derivatives; and development of bunkering and refuelling facilities in ports on international shipping lanes for fuels based on Green Hydrogen.

“These pilot projects will help identify operational issues and gaps in terms of current technology readiness, regulations, implementation methodologies, infrastructure and supply chains. These will serve as valuable inputs for future scaling and commercial deployment of Green Hydrogen in the shipping sector,” say the guidelines.

“The use of Green Hydrogen and its derivatives in the shipping sector, through the proposed pilot projects, will lead to the development of necessary infrastructure including refuelling stations, storage, and distribution networks, resulting in the establishment of a Green Hydrogen ecosystem in the shipping sector. The utilisation of green hydrogen in the shipping industry is expected to increase over the years, with the expected reduction in its production cost,” said the MNRE.

Financial support of Rs 80 cr for component A, Rs 35 cr for component B

Based on preliminary estimates, the MNRE intends to provide support of Rs 80 crore for Component A (retrofitting of existing ships) and Rs 35 crore for Component B (creation of bunkers and refueling facilities). The government wants India to become a Green Hydrogen refuelling destination for ships from across the world.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)