Shipping Corporation of India to retrofit ships to green hydrogen

The Shipping Corporation of India (SCI) will be required to retrofit at least two ships to run on green hydrogen or other green hydrogen-derived fuels by 2027 as part of India’s decarbonization plans.

India has declared that it plans to become energy independent by 2047 and a net zero country by 2070.

The country is highly reliant on fossil fuels and it spends around $90 billion every year on energy imports, which account for 40% of its primary energy requirements.

Green hydrogen is expected to play a critical role in that strategy as the country looks to tap into its vast renewable energy resources.

The plans involving the Shipping Corporation of India, or in case of its planned divestment, its successor, were revealed in the recently released National Green Hydrogen Mission, a comprehensive action plan establishing a green hydrogen ecosystem.

SCI owns and operates around one-third of the Indian tonnage, and has operating interests in practically all areas of the shipping business. The government has launched a process to privatize the company, with the call for financial bids expected soon.

The mission was approved by the Indian government earlier this month, setting a pathway for the country to become a global hub for the production, utilisation, and export of green hydrogen and its derivatives.

The government anticipates the mission to result in the development of a green hydrogen production capacity of at least 5 million metric tonnes (MMT) per annum with an associated renewable energy capacity addition of about 125 GW in the country.

The production and scaling up of green hydrogen will build upon several pilot projects undertaken in India through electrolysis of water using renewable electricity, and from biomass through thermochemical and biochemical routes.

India expects that with its targeted interventions to reduce input and capital costs, green hydrogen would become competitive with grey hydrogen (produced from fossil fuels) in the next few years.

Shipping is being targeted as part of the first stage of the phased transition approach together with steel production, long-haul and heavy-duty mobility.

Under the strategy, India’s oil and gas public sector undertakings would be required to charter at least one ship each to be powered by green hydrogen or derived fuels by 2027.

Thereafter, they will need to add at least one ship powered by these fuels for each year of the mission. The oil and gas companies currently charter about 40 vessels that are used for the shipping of petroleum products.

In addition, India plans to establish green ammonia bunkers and refueling facilities at least at one port by 2025. By 2035, all major ports in the country are expected to have ammonia bunkering facilities in place.

India’s largest commercial shipbuilder Cochin Shipyard Limited (CSL) Kochi is forging ahead with ambitious plans that will see the construction of vessels powered by alternative energy sources.

Namely, the country’s first indigenously built hydrogen-fuelled electric vessel is planned to be delivered by March/April 2023. The project is being developed by Cochin Shipyard Limited, Pune-based KPIT Technologies Limited, and the Indian Register of Shipping (IRClass).

The 100-passenger vessel will be powered by two 25 kWh H2 fuel cells, developed by a global software integration major to the automotive industry KPIT. It builds upon the yard’s experience gathered in the construction of battery-powered metro boats for the Kochi Metro. CSL is building a total of 23 boats for the Kochi Water Metro project.

The construction of the ferry is a pilot project, which is considered a launch pad for the country to tap the vast opportunities lying in the coastal & inland vessel segment both nationally and internationally.

In line with the strategy, CSL is also working on a proposal that would see vessels powered by ammonia deployed in India’s manufacturing and transport sectors.

The development proposal includes two types of vessels: an 8,000 dwt coastal bulker vessel (engine 2x 1,200 kW) and a coastal tug boat with a 70t bollard pull power (2 X 1,500kW).

The yard is also working with Jawaharlal Nehru Port Trust (JNPT) on bringing two ammonia-powered tugs to the port.