OCTOBER 20248INDIA'S SHIP RECYCLING SECTOR TO GROW 10 PERCENT BY 2026 WITH OBSOLETE FLEET RISEADANI GROUP DOUBLING DOWN ON GREEN ENERGY COMMITMENTS WITH LATEST PLANSThe ship recycling sector in India is projected to increase by approximately 10 per cent annually from CY26-CY28. The decrease in Baltic Dry Index, The Adani Group is planning to develop 10 gigawatts (GW) of overseas hydroelectric projects over the coming years, aligning with its goal of achieving net-zero carbon emissions by 2050, according to sources cited by steadying of heavy melting scrap prices, and rise in obsolete ships being used indicate that more vessels will be entering the recycling market starting from CY25.A report predicts that the ship recycling sector in India will increase to 3.8-4.2 million gross tonnage by 2025, up from an estimated 2.3-2.6 million GT in 2024. CareEdge reports that India dismantled 33 percent of the global gross tonnage in 2023, coming in second place after Bangladesh, which dismantled 46 percent."India's ship recycling Industry is poised for major growth in CY25 and is expected to witness similar recycling level in CY24 with an estimate of 2.3 to 2.6 million GT, thereafter a jump to over 3.8 to 4.2 million GT in CY25," said Sajani Shah, Assistant Director at CareEdge.Shah believes that nations with improved infrastructure and eco-friendly recycling capabilities will likely see an increase in ship traffic.India's portion of the worldwide recycling sector stayed at approximately 27 percent previously, but rose to about 33 percent in CY22 and CY23, showing an increase in its involvement despite global decreases. During CY22 and CY23, India scrapped 2.26 and 2.47 million GT in terms of volume, according to CareEdge. Reuters. This move is part of the conglomerate's broader commitment to green energy, with Gautam Adani having previously announced a $100 billion investment over the next decade, focused on green energy initiatives, including the creation of the world's largest solar energy park in western India.The group's focus for hydroelectric projects includes countries such as Nepal, Bhutan, Kenya, Tanzania, the Philippines, and Vietnam due to their favorable topography and high demand for hydropower. While primarily concentrating on pumped hydro storage in India, Adani is seeking international opportunities that meet these criteria.Adani Green Energy, the green energy arm of the group, currently operates 11.2 GW of renewable energy projects, with an ambition to expand to 50 GW by 2030. In line with this strategy, Adani signed an agreement in June with the Bhutanese government to build a 570 MW hydropower plant in Chhukha province. The group is also considering a 700 MW project in Chamkarchu, Bhutan, where approvals are already in place, allowing for immediate commencement of work.The group is actively evaluating potential hydroelectric projects in other countries and engaging in discussions with governments and some private parties. TOP STORIES
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