top of page
Writer's pictureCapt. Naveen S Singhal

Green Fuel and Shipping Corridors: India’s Chance to Shine

Updated: Oct 21

Green Fuel and Shipping Corridors: India’s Chance to Shine

A large container ship consumes about 120 metric tonnes (MT) of fuel each day. This amount of fuel is equivalent to the daily energy needs of about 50,000 Indian homes. Shipping has been in the spotlight as a polluter since the Conference of Parties (COP)-16 in 2010. The greenhouse gas (GHG) emissions by the shipping industry are equal to Japan’s GHG emissions at around 3%, and as per the current trajectory, this is likely to increase to 4.5% by 2050.

Fast forward to five years, and COP-21 (2015), in its ‘zero emission shipping’, established these highly ambitious targets for the shipping industry to be achieved by 2030:

• Demonstrate commercially viable zero-emission ships.

• Make zero-emission fuel vessels the natural choice for ship owners.

• Build 20 ports with zero-emission carbon-neutral bunkering facilities.

• Ensure 600 large ships operate on well-to-wake carbon-neutral fuel. Well-to-wake refers to fuel extraction from the ‘well’ to the ship’s ‘wake’ when sailing.

• Crew safety is a priority on ammonia, hydrogen, and methanol-fuelled ships.

• Production of 16 million metric tonnes of zero-emission carbon-neutral fuels.

There are uncertainties about fuel carriage capacity, long-distance sailing, and safety concerns for seafarers since ammonia is emerging as the most promising carbon-neutral fuel for ships in the future.

Barring a few leading ship owners like Maersk and AET (Malaysia), most other shipping organisations are waiting and watching, hesitant to invest in dual or carbon-neutral-fuelled ships. This reluctance is primarily due to the high cost of retrofits, new designs, and increased operational expenses. On the supply side, green fuel providers are also holding back due to a lack of buyers, so the paradox with green fuel continues.


Green corridors for ships, and where is India?

Green shipping corridors are bunkering facilities established along shipping routes to supply carbon-neutral fuel at competitive international rates, with a minimum diversion in their sea passage. Ships that use liner services or fixed routes can opt for such green corridors. Ships on spot charter may still need the dual fuel option, since the trading areas may not have green corridors or green fuel bunkering facilities. Interestingly, the number of green corridors has increased significantly from 21 to 50 since the last year.

The Government of India has identified three ports for green ammonia bunkering. Paradip Port, located on the East Coast of India in Odisha; Deendayal Port, also known as Kandla Port, situated on the Gulf of Kutch in Gujarat; and V.O. Chidambaranar Port, located at Tuticorin in Tamil Nadu. How well are these ports positioned to become preferred green fuel bunkering options for ships passing through the Arabian Sea and the Indian Ocean, whether eastbound or westbound?

Options such as Cochin at 10° North and Vizhinjam at 8.2° North are strategically located near the passage for East and Westbound vessels. Policymakers should explore whether and how the value chain of green fuel supply can be developed around main shipping trade routes, requiring virtually no diversion.

An equivalent to the BRICS partnership, Brazil’s CSN (Companhia Siderurgica Nacional Group), operates two terminals in Port Rio. They have signed for a green corridor with Port Sines in Portugal, which will cover the stretch of the Atlantic Ocean from south to north. Similarly, Adani’s Vizhinjam could join hands with Singapore for a green corridor.

The longitudinal stretch spanning 45 degrees in the Arabian Sea, Indian Ocean, and Bay of Bengal region from Aden, Yemen, to Bandar Aceh in Indonesia is about 12% of the entire globe’s surface area. The Indian Government must strategically capitalise on this maritime region where they have significant influence and establish a green corridor to become a dominant player. Without meticulous planning, expedited clearances, and expert involvement, India risks missing the boat and allowing ports like Colombo to gain upper hand.

(The writer is a Marine and Shipping consultant. Views personal.)

Commentaires


bottom of page