IMO: Study identifies methanol as starting point for India’s alternative fuel bunkering

A study has highlighted that India has the potential to become a competitive regional hub for alternative marine fuels, according to the International Maritime Organisation (IMO) on Tuesday (27 October). 

The Study on Potential Demand and Pricing of Alternative Marine Fuels in India examined 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. 

It proposed 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).

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 indicated 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.

The study also concluded 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.

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.”

Building on the GreenVoyage2050 Policy and Investment Dialogue on Alternative Marine Fuels and Bunkering Competitiveness held earlier in the year, IMO said the findings provided 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.

Note: The final study can be downloaded here.

Photo credit: Naveed Ahmed on Unsplash
Published: 29 October, 2026