Over time, ports have transformed from simple logistical points to influential hubs at the forefront of the global energy transition. The expansion of green hydrogen fits naturally into this evolution, as ports and hydrogen production increasingly support each other’s growth. While hydrogen producers do not have to be located within port boundaries, the extensive infrastructure and industrial ecosystems already present at port sites create a distinct edge for building domestic production centres and facilitating trade. This growing synergy between ports and green hydrogen offers India a compelling pathway to fast-track its sustainable energy transformation. Ports represent vibrant energy ecosystems. They can anchor production hubs, consolidate diverse sources of demand and seamlessly link domestic consumption with global export markets. Strategically located, ports offer extensive infrastructure, robust industrial networks and integrated land-sea connectivity, positioning them uniquely to facilitate the emerging green hydrogen economy.
The report “Gateway to Green: Assessing port readiness for green hydrogen transition in India” provides a comprehensive assessment of how six major Indian ports, Deendayal (Kandla), V. O. Chidambaranar (VOC) (Tuticorin), Paradip, Cochin, Mumbai and Jawaharlal Nehru Port Authority (JNPA) are positioned to support India’s ambitions in green hydrogen and green ammonia. The report, co-authored by RMI and Indian Ports Association (IPA) experts, evaluates existing infrastructure, potential for repurposing assets, quantum of investments needed for further development, economic feasibility and strategic importance in linking India’s renewable energy base to global hydrogen markets.
These six major ports are strategically located, offering access to domestic demand centres and international markets by leveraging proximity to industrial hubs and maritime trade routes. The VOC and Paradip ports are aligned to serve East Asian markets, such as Japan, South Korea and Singapore. Meanwhile, the Deendayal, JNPA, Mumbai and Cochin ports are positioned to engage with European markets like Germany, Netherlands and Belgium.
Widening access to renewable energy via policy push and fiscal commitments
The scale of green hydrogen production at ports differs due to various developer commitments and state government initiatives, but the potential for transformative impact remains immense. Many such initiatives are under way. The capacity for renewable energy at Indian ports is steadily increasing, reaching about 140 MW across major port facilities, primarily used for internal operations. Notably, the VOC, Deendayal and JNPA ports operate fully on green power, with Deendayal generating surplus renewable energy.
Other ports are also actively investing in boosting their renewable footprint. For instance, Cochin Port Trust has plans to install a solar power plant with a capacity of 4,000-5,000 kWp. This initiative supports the port’s goal of transitioning to 60 per cent solar power by 2030. Individual terminals are also switching to renewable electricity. For instance, APM Terminal in Mumbai has switched to 80 per cent renewable consumption with a 10.65 MW captive solar photovoltaic plant under a power purchase agreement with O2 Power.
In May 2023, the Ministry of Ports, Shipping and Waterways (MoPSW) introduced the Harit Sagar Green Port Guidelines, aimed at decarbonising India’s maritime sector and advancing the nation’s target of net-zero emissions by 2070. A key mandate focused on the establishment of green ammonia bunkering and refuelling facilities at all major ports by 2035. To align with these goals, major ports such as Deendayal, Paradip and VOC will be developed as green hydrogen, ammonia and methanol export hubs by 2030. Approximately 4,500 acres have been allocated across these ports to over 19 developers, who generated expressions of interest for green hydrogen complex development projects expected to bring in up to Rs 1.5 trillion ($172 billion) in investments.
These initiatives position Indian ports as central conduits for green hydrogen infrastructure, harnessing export opportunities and driving investments in renewable energy production and hydrogen derivatives.
Maximising value through strategic asset repurposing
Shared infrastructure, comprising pipelines, storage, transmission systems and water facilities, is considered critical to reduce capital cost and support multi-party modular deployment. Therefore, a robust common user infrastructure framework is essential for green hydrogen. Pipeline retrofitting for hydrogen blending is viable up to 23.5 per cent, though blending beyond 20 per cent may increase capital expenditure, emphasising the importance of targeted infrastructure upgrades.
Recycling-focused port infrastructure such as ammonia storage and liquefied natural gas (LNG) terminals can significantly cut costs and accelerate development. For instance, repurposing the Mundra terminal could yield savings of Rs 206.69 billion and the Chhara terminal Rs 289.9 billion, making repurposing a financially prudent alternative to creating new infrastructure.
Besides, portside ammonia storage significantly influences the overall capex when transforming ports into green hydrogen hubs. At larger scales, the levelised cost of ammonia storage decreases due to economies of scale. However, once storage capacity exceeds the optimal size and utilisation profiles, lifetime costs begin to rise incrementally. Even so, leveraging existing ammonia storage infrastructure can help offset some of these expenses by reducing the need for new capital investments.
Tactical action plans for the future
To unlock the potential of ports as green hydrogen hubs, it is critical to upgrade their infrastructure and pursue international partnerships. Indian ports, especially Deendayal, VOC and Paradip, have been designated as future green hydrogen export hubs, with plans to build infrastructure for storage, bunkering and handling of green hydrogen, ammonia and methanol. Accelerating the green transition requires strategic enhancements that enable ports to manage multiple roles, from production and storage to fuel distribution and market facilitation.
Leveraging existing infrastructure, including ammonia storage facilities and LNG terminals, can provide a foundation for initial hydrogen and ammonia operations. Ports such as Cochin, Deendayal and JNPA, which have electricity distribution licenses, can develop the substations and power systems required for large-scale electrolysis, integrating renewable energy more effectively.
Securing land parcels in the vicinity of ports is critical for fostering both green hydrogen development and broader industrial expansion. These strategically allocated zones enable ports to aggregate domestic and global demand for hydrogen derivatives, which in turn catalyses early market adoption. Establishing a stable demand base supports both local supply chains and exports, aligning infrastructure planning with projected needs and encouraging investor confidence.
Furthermore, integrating green hydrogen into existing port operations requires the development of new safety protocols and the adoption of advanced transmission, storage and monitoring systems, along with strong stakeholder coordination. Successfully scaling up green hydrogen infrastructure and accessing affordable financing are foundational to enabling large-scale investments in renewable power generation, hydrogen production and related transport infrastructure. Furthermore, transitioning to green hydrogen will require significant investment in new infrastructure, such as storage facilities and specialised transportation networks.
Conclusion
All in all, “Gateway to Green” charts a pragmatic, infrastructure-based and policy-aligned blueprint. The readiness of ports varies, but all six assessed have clear pathways to becoming regional leaders in green hydrogen logistics. Eventually, their success depends on strategic planning, cost-effective retrofits, demand aggregation and inter-ministerial coordination. w
This is an extract from a recent report “Gateway to Green: Assessing port readiness for green hydrogen transition in India” by RMI and IPA
