Reforming Indian Ports for Green Hydrogen Export
The Indian Ports Association (IPA) report suggests significant reforms are necessary for Indian ports to become export hubs for Green Hydrogen (GH2) and its derivatives like green ammonia.
Key Recommendations
- Repurposing Existing Terminals:
- Liquefied Natural Gas (LNG) terminals could be retrofitted for GH2 derivatives export.
- Repurposing is cost-effective due to high material and labor costs associated with new constructions.
- Developing Infrastructure:
- Common user infrastructure like intra-port pipelines and storage units is essential.
- This infrastructure can make ports central hubs for both domestic and export markets.
- Energy Aggregation:
- Ports partner with distribution companies and independent power producers for cost-effective renewable energy (RE) sourcing.
Challenges and Considerations
- Technical Challenges:
- Hydrogen's unique properties like lower density and embrittlement, require infrastructure upgrades.
- Existing infrastructures need thorough analysis for compatibility and safety improvements.
- Market and Operational Challenges:
- Low capacity utilization of current regasified LNG terminals due to pipeline connectivity issues and developing gas markets.
- Limited long-term contracts between terminals and major offtakers.
Strategic Positioning
- East coast ports like Tuticorin and Paradip can serve major Asian markets (Japan, Singapore, South Korea) expected to need 4.4 million tonnes of H2 by 2030.
- West coast ports can address European demands projected at 10 million tonnes of hydrogen by 2030.
Economic Impact
- Repurposing terminals could save ₹7,000-8,000 crore over a 30-year span.
- Estimated retrofitting cost per tonne is approximately $105.
The report underscores India’s strategic potential to become a significant player in the global green energy market, leveraging its existing infrastructure and strategic port locations.
