India has been recognized as a competitive hub for alternative marine fuels. This conclusion comes from a study conducted by the Directorate General of Shipping of India and the Ministry of Ports, Shipping and Waterways. Supported by the GreenVoyage2050 IMO program, the study explores future demand for alternative marine fuels, fuel pricing, and practical steps to enhance India's competitiveness in the emerging alternative marine fuel market.
Factors Influencing Bunkering Decisions
One key finding of the study is that competitiveness, rather than geography, will be a determining factor in the choice of bunkering locations for ships in the future. Factors such as fuel costs, operational efficiency, reliability, and port costs will significantly impact these decisions.
A Three-Phase Pathway for Developing Alternative Marine Fuels
Analyses indicate that India can compete across all alternative fuel pathways. Demand for biodiesel and methanol is expected to rise initially, followed by ammonia being recognized as the next fuel. Realizing this potential depends on India's ability to provide an attractive bunkering proposition that includes efficient port operations, clear regulatory procedures, and reliable fuel supply.
Shri Shyam Jagannathan, Director General of Shipping of India, stated, "The transition to alternative marine fuels is a great opportunity for India. It not only helps reduce carbon emissions in maritime transport but can also enhance our energy security."
The study also emphasizes that India should focus on the ships currently visiting its ports. To develop the market, it suggests that initial efforts should be concentrated in several strategic ports such as Mundra, JNPT, Chennai, and Tuticorin.
This three-phase plan includes establishing safe and competitive bunkering at selected ports from 2026 to 2030, expanding tested operations and preparing for ammonia bunkering from 2030 to 2035, and ultimately positioning India for multi-fuel bunkering and green transport corridors from 2035 to 2047.
