India is set to steer its maritime sector into a new era of sustainability with the launch of its inaugural coastal green shipping corridor, slated to connect Kandla on the west coast to Thoothukudi on the east. In an ambitious public–private partnership, the V. O. Chidambaranar Port Authority and Deendayal Port Authority have joined forces with the Shipping Corporation of India (SCI) to pilot cleaner fuel technologies and dramatically curb carbon emissions in domestic coastal trade.
A Corridor Forged in Collaboration
This pioneering route, expected to be operational within the next three to six months, will see at least two retrofitted SCI cargo vessels powered by methanol—a fuel that, when produced from renewable sources, can reduce greenhouse gas emissions by up to 60% compared to conventional marine diesel. These vessels will serve as floating laboratories, gathering critical data on fuel efficiency, powertrain performance, and real-world emissions over long-haul voyages.
From Blueprint to Green Hydrogen Production
In a bid to cultivate a holistic green ecosystem, the V. O. Chidambaranar Port Authority (VOC Port) has already initiated small-scale green hydrogen production on-site. By the time the corridor is fully operational, VOC Port aims to ramp up output to a modest 1 MW of green hydrogen by March 2026—enough to trial hydrogen-based power systems for shore-side operations and potentially fuel next-generation vessels. Meanwhile, Deendayal Port Authority in Kandla is laying the groundwork for bunkering stations and secure storage facilities, tackling one of the greatest logistical hurdles in green shipping: the consistent and safe delivery of alternative fuels.
Why Methanol and Green Hydrogen?
Methanol, often overlooked in discussions dominated by LNG and ammonia, boasts unique advantages. It is liquid at ambient temperatures, which simplifies handling and storage; existing port infrastructure can be retrofitted at relatively low cost. When synthesized from green hydrogen and captured CO₂, it becomes a truly carbon-neutral fuel. In parallel, green hydrogen itself—produced via electrolysis powered by renewable energy—offers versatility, from powering port cranes to generating electricity in microgrids.
Economic Feasibility under the Microscope
While the environmental incentives are clear, stakeholders are carefully modeling the economics. Initial capital expenditures for retrofitting vessels and establishing bunkering stations are substantial. However, proponents argue that economies of scale—driven by future corridor expansions and regional adoption—will slash per-unit fuel costs. Preliminary projections suggest that, with carbon pricing mechanisms and potential tax incentives, green shipping could become cost-competitive with traditional marine fuels by the early 2030s.
A Blueprint for Regional Adoption
India’s green corridor is not an isolated experiment. It dovetails with global efforts under the Clydebank Declaration—signed in November 2021 by more than 20 nations—to develop at least six green corridors by 2025. By showcasing a working model on 1,600 nautical miles of coastal waters, India aims to inspire neighboring countries to adopt similar initiatives, potentially knitting together a network of low-emission maritime routes across the Bay of Bengal and Arabian Sea.
Beyond Emissions: Socioeconomic Ripples
Cleaner shipping carries benefits beyond carbon metrics. Reduced air pollution in port cities can improve public health, especially in densely populated coastal regions. New technology hubs around green hydrogen and methanol bunkering can spark innovation, generate skilled jobs, and invigorate local economies. The project also dovetails with India’s broader ambitions under its Nationally Determined Contributions (NDCs) to cut emissions intensity by 45% from 2005 levels by 2030.
Charting the Course Ahead
Over the coming months, the partners will finalize vessel retrofits, commission bunkering infrastructure, and calibrate monitoring systems. Cargo volume forecasts, insurance models, and regulatory frameworks will be fine-tuned to ensure commercial viability and safety. If successful, this corridor could serve as a lighthouse project—illuminating the pathway to truly sustainable maritime trade.
As the first methanol-fueled ship prepares to slip its lines in Kandla, it carries with it more than containers of goods; it tows the promise of a cleaner blue horizon. India’s coastal green corridor isn’t just a route on a map—it’s a bold statement that the future of shipping can sail in harmony with the planet.
