India Could Become a Regional Hub for Alternative Marine Fuels

A new study backed by the International Maritime Organization (IMO) concluded that India has the potential to become a competitive regional hub for alternative marine fuels. The study, titled Study on Potential Demand and Pricing of Alternative Marine Fuels in India, was initiated by India's Directorate General of Maritime Administration (DGMA) and the Ministry of Ports, Shipping and Waterways (MoPSW), with support from the IMO's GreenVoyage2050 program, and analyzes future demand for alternative fuels, their pricing, and the steps needed to strengthen the country's competitiveness in this emerging market.

The study identifies methanol as the most suitable fuel to kick off this transition, with a possible pilot project at the Port of Mundra supplied from Deendayal, in Kandla. According to the analysis, biofuels and methanol could drive early adoption, followed by ammonia as infrastructure and supply chains mature.

One of the key findings is that competitiveness, not just geographic location, will determine where vessels choose to bunker in the future. Factors such as fuel delivery cost, operational efficiency, reliability and port tariffs will be decisive in that choice. The study also notes that India's greatest opportunity lies in serving vessels that already call at its ports, rather than trying to capture transit traffic.

To drive market development, the study recommends concentrating initial efforts on a limited number of strategic ports: Mundra, Jawaharlal Nehru Port (JNPT), Chennai and Tuticorin, where high cargo volumes and consolidated shipping activity create favorable conditions for commercially viable bunkering operations. The plan proposes a three-phase approach: establishing safe and competitive bunkering at selected ports between 2026 and 2030; scaling up proven operations and preparing ammonia bunkering between 2030 and 2035; and positioning India for multi-fuel bunkering and green shipping corridors between 2035 and 2047.

Shri Shyam Jagannathan, Director General of the Maritime Administration of the Government of India, stated that the transition to alternative marine fuels represents a significant opportunity for the country, as, in addition to supporting the decarbonization of shipping, it can strengthen energy security, reduce dependence on imported fossil fuels, create new industrial opportunities and reinforce India's position as a leading maritime nation. The study builds on the GreenVoyage2050 policy and investment dialogue held earlier this year, and its findings aim to provide evidence and practical recommendations for the development of India's National Green Shipping Policy.