The centre will support retrofitting existing ships to run them on Green Hydrogen under a new scheme for the sector. Provisions will also be made for developing bunkering, and refuelling facilities in ports on international shipping lanes for fuels based on Green Hydrogen. An official statement said the scheme for implementing pilot projects using Green Hydrogen in the shipping sector gets a budgetary outlay of Rs 115 crores till fiscal 2025-26.
In addition to shipping, the centre also released guidelines for undertaking pilot projects for using green hydrogen in the steel sector. This scheme will be implemented with a total budgetary outlay of Rs 455 crores till fiscal 2029-30. “Considering the higher costs of green hydrogen at present, steel plants could begin by blending a small percentage of green hydrogen in their processes, and increasing the blending proportion progressively, with improvement in cost-economics,” another statement said while adding that guidelines mandate upcoming steel plants to be capable of operating with green hydrogen.
“The scheme will also consider greenfield projects aiming at 100% green steel,” the second statement said.
These schemes fall under the Rs 19,744 crore National Green Hydrogen Mission which was launched in January 2023. The Mission under the Ministry of New and Renewable Energy aims for significant decarbonization of the economy along with reduced dependence on fossil fuel imports.
“The centre will implement pilot projects in the shipping sector, for replacing fossil fuels and fossil fuel-based feedstock with Green Hydrogen and its derivatives under the mission,” the first statement said, while adding that these pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways (MoPSW).
Projects with an intention to develop Pilot Scale or Demonstration Plants for replication of technology will be supported. Shipping Corporation of India (SCI) or its successor, in case of disinvestment, will be the Scheme Implementing Agency (SIA) for retrofitting of the existing ships.
Capital expenditure on retrofitting of existing ships with Green Hydrogen based propulsion system and creating bunkering and refuelling facilities on port will be funded under the scheme. But expenses due to production of Green Hydrogen or its derivatives, and land among others, will not be funded.