MNRE releases guidelines on use of green hydrogen in shipping sector

The government on Friday released guidelines for pilot projects on the use of green hydrogen in the shipping sector.

The Scheme will be implemented with a total budgetary outlay of Rs 115 crore till the financial year 2025-26, the Ministry of New and Renewable Energy (MNRE) said in a statement.

The 'Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Shipping Sector' under the National Green Hydrogen Mission, the MNRE said.

Under the Mission, the MNRE will implement pilot projects in the shipping sector, for replacing fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives.

These pilot projects will be implemented through the Ministry of Ports, Shipping and Waterways (MoPSW) and the implementing agencies nominated under this scheme. The pilot projects also target development of bunkering and refuelling facilities in ports on international shipping lanes for fuels based on green hydrogen.

"Two areas have been identified as thrust areas under the pilot projects. These are retrofitting of existing ships so as to enable them to run on Green Hydrogen or its derivatives; and development of bunkering and refuelling facilities in ports on international shipping lanes for fuels based on green hydrogen," the Ministry said.

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 under Component-A of the scheme.

The SIAs shall award the projects under the scheme through a transparent process. Provisions of General Financial Rules (GFRs) shall be followed in all selections/ procurement.

MoPSW will also finalize the SIA for Component-B of the Scheme, and will issue administrative sanctions for the projects under the Scheme based on the recommendations of Project Appraisal Committee (PAC).

The Executing agencies (EAs) selected for the projects will share knowledge and the outcome of the pilot projects through project completion report, monitoring reports, workshops, and publications to disseminate findings, best practices, and lessons learned from the pilot.

Financial support for projects will be evaluated and granted taking into consideration the specific needs, merits, and feasibility of each project, the ministry said.

"The use of Green Hydrogen and its derivatives in the shipping sector, through the proposed pilot projects, will lead to the development of necessary infrastructure including refuelling stations, storage, and distribution networks, resulting in the establishment of a Green Hydrogen ecosystem in the shipping sector," MNRE said.