India has the potential to become a competitive regional hub for alternative marine fuels, according to the Study on Potential Demand and Pricing of Alternative Marine Fuels in India.
Initiated by India's Directorate General of Maritime Administration (DGMA) and the Ministry of Ports, Shipping and Waterways (MoPSW), and supported through IMO's GreenVoyage2050 Programme, the study examines future demand for alternative marine fuels, fuel pricing and the practical steps needed to strengthen India's competitiveness in the emerging alternative marine fuel market.
Competitiveness will drive future bunkering decisions
One of the study's key findings is that competitiveness, rather than geography alone, will determine where ships choose to bunker in the future. Factors such as delivered fuel costs, operational efficiency, reliability and port charges are likely to be decisive.
The analysis indicates that India could compete regionally across all major alternative fuel pathways, with demand of biofuels and methanol expected to support earlier uptake, followed by ammonia as supply chains, infrastructure and safety frameworks mature. Realizing this potential will depend on the country's ability to provide an attractive overall bunkering proposition, supported by efficient port operations, clear regulatory procedures, reliable fuel supplies and predictable costs.
Shri Shyam Jagannathan, Director General of Maritime Administration, Government of India, said: "The transition to alternative marine fuels presents a significant opportunity for India. Beyond supporting the decarbonization of shipping, it can strengthen our energy security, reduce dependence on imported fossil fuels, create new industrial opportunities and reinforce India's position as a leading maritime nation."
Leveraging existing traffic to build demand
The study also concludes that India's strongest opportunity lies in serving ships already calling at its ports, rather than primarily seeking to attract transiting traffic. To support market development, the study recommends concentrating initial efforts at a limited number of strategic ports, including Mundra, JNPT, Chennai and Tuticorin, where strong cargo volumes and established shipping activity create favorable conditions for commercially viable bunkering operations.
It proposes a three-phase pathway: establishing safe and competitive bunkering at selected ports in 2026-2030; scaling proven operations and preparing for ammonia bunkering in 2030-2035; and positioning India for multi-fuel bunkering and green shipping corridors in 2035-2047. Methanol is identified as the most suitable starting fuel, with a potential first pilot at Mundra supplied from Deendayal (Kandla).
Supporting the development of India's National Green Shipping Policy
Building on the GreenVoyage2050 Policy and Investment Dialogue on Alternative Marine Fuels and Bunkering Competitiveness held earlier in the year, the findings provide timely evidence and practical recommendations to support the ongoing development of India's National Green Shipping Policy, which aims to accelerate the decarbonization of the country's maritime sector while enhancing its competitiveness and promoting sustainable economic growth.
The final study can be downloaded here.
About GreenVoyage2050
The GreenVoyage2050 Programme is supporting developing countries in reducing greenhouse gas (GHG) emissions from shipping, in line with the IMO Strategy on Reduction of GHG Emissions from Ships. Through technical assistance, capacity building, policy support and pilot projects, the programme helps countries identify practical pathways towards maritime decarbonization while fostering innovation, investment and international collaboration. The GreenVoyage2050 Programme is technology- and fuel-neutral, responding to requests for technical assistance in response to annual open calls for expression of interest to participate in the Programme. GreenVoyage2050 is funded by the Governments of Denmark, Finland, France, Germany, the Netherlands and Norway, as well as contributions from the Integrated Technical Cooperation Programme (ITCP).
