Neptunus Ship Builders & Recyclers: Redefining Sustainable Ship Recycling With Practical Innovation

The global ship recycling industry has made incremental progress toward adopting safer, more environmentally responsible methods. Yet, an overwhelming majority of the world’s vessels, nearly 80 percent, are still dismantled using the beaching method. This approach, which involves grounding ships on tidal beaches for manual disassembly, often lacks the necessary infrastructure to safely manage toxic materials. As a result, it poses significant risks to both marine ecosystems and worker health, including oil spills, the release of hazardous substances, and long-term coastal pollution.

Neptunus Ship Builders & Recyclers is an ESG-compliant company at the forefront of driving this transition by implementing safer, more sustainable ship recycling practices. The company employs the slipway method, a controlled approach that significantly reduces the risk of marine pollution compared to traditional beaching. Advanced equipment, including plasma and electrostatic cutters, is used to lower emissions and enhance worker safety. Additionally, manifold systems efficiently extract residual oils, while gas detection sensors ensure hazardous substances are identified and managed before dismantling begins.

“We follow a structured approach to ship recycling, beginning with upstream material handling, through a dismantling phase, and concluding with downstream processing. Our facility ensures the safe identification and segregation of hazardous materials well before the actual dismantling begins”, says Satish Burugupalli Executive Director, Neptunus Ship Builders & Recyclers.

The operations adhere to global and national regulatory frameworks, including the Hong Kong International Convention (HKC), the EU Ship Recycling Regulation of 2013, and the Indian Ship Breaking Code of 2019. The company’s systems are also built with flexibility in mind, ensuring they can be readily adapted to meet future environmental and safety standards. According to Kavya Yedla, Principal Architect, Neptunus Ship Builders & Recyclers, the facility’s layout is designed to reflect these standards through a thoughtfully zoned design. “We’ve created distinct yet integrated zones for dismantling, steel rerolling, logistics, employee housing, and renewable energy generation. The design supports seamless operations, avoids congestion, and reinforces our commitment to environmental responsibility”, she explains.

Recovery and reuse are central to the company’s approach. Approximately 90 percent of the steel from each dismantled vessel is salvaged and repurposed as green steel, a more sustainable alternative that reduces the need for energy-intensive virgin steel production. “Our goal is to recover around 5 million metric tons of green steel annually”, says Akaash Reddy, Finance Associate, Neptunus Ship Builders & Recyclers. “Given that India imports 10 to 12 million tons of steel scrap each year, even a modest contribution from domestic recovery supports both self-reliance and circular economy objectives”.

Green Ship Recycling Park

One of the flagship initiatives led by Neptunus Ship Builders & Recyclers is the development of the Green Integrated Ship Recycling Industry Park in Odisha. Designed with long-term environmental and economic impact in mind, the project aims to set a new benchmark for sustainable industrial infrastructure. Once operational, the park is projected to contribute approximately $3 billion annually to India’s GDP and generate around $300 million in yearly revenue for the state of Odisha. In addition to these economic gains, the project is expected to create about 2,200 direct jobs and over 20,000 indirect employment opportunities.

“We’ve incorporated green corridors, rainwater harvesting systems, and climate-responsive infrastructure into the master plan. These elements not only minimize environmental impact but also enhance the park’s resilience to future climate challenges”, notes Kavya Yedla. The infrastructure is also being developed in alignment with LEED, EDGE, and GRIHA standards, underscoring a commitment to long-term sustainability while maintaining operational efficiency and practicality.

Technology, Compliance, & Practical Solutions

Advanced technologies are integral to Neptunus Ship Builders & Recyclers' operations. AI-powered automation, digital tracking, and smart mobility systems are seamlessly integrated to enhance safety oversight, streamline logistics, and reduce overall energy consumption. The design of the industrial park further reinforces this commitment, with dedicated corridors for electric vehicles and strategically planned multimodal transport hubs, ensuring efficient, low-emission movement throughout the facility.

With India now requiring that at least 30 percent of steel production come from recycled sources, waste recovery is a core focus of their operations. During the dismantling process, materials are carefully sorted and diverted from landfills to secondary and tertiary users, ensuring minimal waste and maximum reuse. This approach not only supports regulatory compliance but also reinforces a broader commitment to sustainability and resource efficiency.

By focusing on practical, scalable solutions, Neptunus Ship Builders & Recyclers is aligning itself with both global environmental regulations and India’s broader goal of self-reliance in key industrial sectors.

Sustainability & Financial Responsibility

From an investment standpoint, the ship recycling sector is entering a new phase of growth and accountability. Investors increasingly seek companies that align with environmental regulations while offering long-term financial viability. By integrating resilient infrastructure with environmental responsibility and technological foresight, Neptunus Ship Builders & Recyclers stands out as a company prepared for both current demands and future growth.

According to Akaash, the projected annual revenue of $300 million stems not only from steel recovery but also from value-added processes and strategic land utilization within the industrial park. “It’s a long-term, value-driven model. We’re not rushing toward scale, we’re focusing on building a robust, responsible foundation”, asserts Akaash.

A Steady Step Forward

Through strategic planning and a commitment to global standards, Neptunus Ship Builders & Recyclers is helping shape a more sustainable future for the ship recycling industry. With the adoption of safer, eco-conscious practices and the development of the Odisha industrial park with a focus on local engagement and equitable employment, Neptunus Ship Builders & Recyclers is setting a forward-looking precedent for the future of ship recycling.

“Our goal is to ensure that the growth of this sector is grounded in principles that support workers, safeguard the environment, and drive local economic development. We believe in steady, well-planned progress, not shortcuts”, concludes Satish Burugupalli.