Indian ports will play a crucial role in supporting the government in its decarbonisation efforts and climate goals. First, ports can become energy hubs for producing and exporting green hydrogen and its derivatives. Second, green fuels can be used to replace petroleum and diesel consumption in ships and vessels. However, there are several complexities involved in the production, transportation and consumption of green hydrogen and its derivatives that need careful evaluation before an economical and efficient supply chain is established.
Transportation of green hydrogen
The development and transportation of green hydrogen in Indian ports faces many challenges, such as high initial capital costs, technological barriers, low density, high flammability and regulatory uncertainties. Currently, most hydrogen is transported through pipelines. However, due to possible embrittlement and leakage, current pipeline systems may not be suitable for the long-term transportation of hydrogen. Pipelines also have a limited role in cross-border hydrogen transportation. Transporting hydrogen by sea would require port infrastructure for storage and regasification. Considering that hydrogen has a very low density, it requires a large storage space unless it is converted into liquid form. All of this is a costly and, above all, energy-intensive process for which there is currently no established infrastructure.
Alternatively, hydrogen can be transported in the form of ammonia, methanol and liquid organic hydrogen. A key benefit in this case is that the cost of ammonia storage is lower than that of hydrogen. Hydrogen can be converted into ammonia using the Haber-Bosch process and then transported. At the point of consumption, ammonia can be converted back to hydrogen or used directly as fuel. While the technology for the conversion of hydrogen to ammonia is well known, the supply chain for green ammonia transportation needs to be developed. Going forward, ports will need to build infrastructure based on the requirements of exporting and importing green hydrogen/green ammonia.
Moreover, green hydrogen production facilities within the port ecosystem offer a unique advantage. Ports, with their access to vast stretches of land and proximity to waterbodies, provide an ideal setting for establishing large-scale electrolysis plants.
Policy environment
In May 2023, the Ministry of Ports, Shipping and Waterways (MoPSW) introduced the Harit Sagar Guidelines. These guidelines serve as a framework for ports to implement green initiatives, develop an environmentally friendly ecosystem and work towards achieving net zero emissions by a specific timeline. It focuses on promoting the use of clean energy in port operations, as well as developing port capabilities for storage, refuelling and bunkering greener fuels such as green ammonia. In addition, MoPSW has urged all ports to meet the renewable energy targets outlined in the Maritime India Vision 2030 and Blue Economy 2047 documents. According to these documents, the share of renewable energy at ports should exceed 60 per cent by the year 2030 and reach 90 per cent by 2047.
In January 2023, the Indian government launched the National Green Hydrogen Mission to spur green hydrogen production and consumption, and establish India as a global hub for green hydrogen production and export by 2030. Within this domain, the government intends to develop ports into energy hubs, to redistribute green hydrogen flows from the coast to inland regions. It also aims to decarbonise the shipping industry by utilising green hydrogen. To this end, it has unveiled pilot project guidelines focused on reducing carbon emissions in the shipping industry through the utilisation of green hydrogen. The initiative seeks to facilitate the use of green hydrogen and its by-products as a source of fuel for ship propulsion, while also working on the establishment of bunkering and refuelling facilities at ports. The programme has been allocated a budget of Rs 1.15 billion until fiscal year 2025-26.
The way forward
The government aims to have green hydrogen bunkering and refuelling facilities at all major ports by 2035. MoPSW plans to set up green hydrogen hubs at three ports: Tuticorin, Paradip and Kandla. Tuticorin port has allocated 500 acres of land, and an MoU has been signed with NTPC for the development of a green hydrogen production facility. Paradip port has invested Rs 2.35 billion to set up port facilities for handling green hydrogen/green ammonia. Meanwhile, a work order for techno-commercial feasibility study and work finalisation has been floated for Kandla port.
Green fuels can enable the energy transition as India takes its net zero journey towards 2070. However, to turn this into reality, the existing port infrastructure will need to be developed to facilitate efficient and economical transportation of green hydrogen and its derivatives.
The article is based on a presentation by Tarkesh Tiwari, vice president, strategy and business development, Essar Ports, at The 7th Edition of Renewable Watch’s Green Hydrogen in India conference
