Mumbai-listed Swan Defence and Heavy Industries Ltd (SDHI) has secured a first-of-its-kind order from Energy ONE Ltd to build four dual-fuel ammonia bulk carriers. The deal, valued between $240–280 million (₹2,230–₹2,603 crore), marks the first ammonia-powered bulk carriers to be constructed in India and one of the largest commercial shipbuilding projects undertaken locally.
Pioneering Dual-Fuel Ammonia Vessels
Each ship will have a Deadweight Tonnage (DWT) of 92,500 and measure 229.5 metres in length with a beam of 37 metres. The vessels will feature an ammonia-fuelled propulsion system, designed by KMS-EMEC from South Korea and classed by Det Norske Veritas (DNV). This represents a major step forward in India’s technological capability and shipbuilding scale.
Boosting India’s Green Shipping Capabilities
The order highlights SDHI’s ability to construct next-generation, low-emission ships, reflecting growing global confidence in Indian shipyards. It follows a January 2026 order from Rederiet Stenersen AS to build six chemical tankers of 18,000-tonne capacity each, valued at $227 million, at SDHI’s Pipavav yard in Gujarat.
Backed by Global and Domestic Partnerships
Energy ONE Ltd, part of the New Energy One (NEO) investment fund based in Jersey, focuses on funding zero-emission ships. NEO has a total investment program of $2 billion to reduce greenhouse gas emissions in industrial shipping. They have partnered with Sagarmala Finance Corp Ltd to co-invest in green maritime projects under the Maritime Development Fund (MDF).
Government Support and Financial Incentives
The vessels qualify for the Shipbuilding Financial Assistance Scheme, which provides state aid: 15% on the first ₹100 crore and 25% on amounts above ₹100 crore. These initiatives, along with the ₹69,725 crore Union Cabinet-approved shipbuilding package, aim to make India a top 10 shipbuilding nation by 2030 and top 5 by 2047.
The package includes:
- ₹24,736 crore for SBFAS (financial assistance, shipbreaking credit notes, National Shipbuilding Mission)
- ₹25,000 crore MDF for long-term maritime financing
- ₹19,989 crore Shipbuilding Development Scheme (SbDS) for greenfield and brownfield shipyard expansion, R&D, and domestic ship technology.
SDHI’s Expanding Pipeline
SDHI has also applied to build Medium Range (MR) dual-fuel tankers for a Shipping Corporation of India joint venture and is exploring the construction of eight Very Large Gas Carriers (VLGCs), partnering with Samsung Heavy Industries for these upcoming projects.
Strategic Significance
This order underscores the growing capability of Indian shipyards to meet global green shipping standards. With ammonia and dual-fuel vessels, SDHI is positioned at the forefront of eco-friendly maritime technology, contributing to both national industrial growth and international sustainability goals.
