Centre to support retrofitting ships to run on H2

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 entails a budgetary outlay of Rs 115 crores till fiscal 2025-26.

This scheme falls under the Rs 19,744 crore National Green Hydrogen Mission which was launched in January 2023. The Mission 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,” an official statement said, while adding that these pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways.

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.

The Scheme aims to leverage existing resources and infrastructure available with the Shipping Ministry and its agencies for transport, storage and use of Green Hydrogen and its derivatives.

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.

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