Ports can adopt new business models such as energy-as-a-service
| Photo Credit:
FRANCIS MASCARENHAS
Indian ports are uniquely positioned to lead, reshaping both the national and global green hydrogen and maritime landscapes. The government has designated Deendayal Port, Paradip Port and VO Chidambaranar (VOC) Port located in Gujarat, Odisha and Tamil Nadu, respectively, as green hydrogen hubs. Industry leaders have also committed over ₹1.5 lakh crore in investments across the ports-linked value chain.
Recent market signals further strengthen India’s competitiveness. The SECI green ammonia tender for the fertilizer sector achieved price discoveries averaging around $600 per tonne, nearly 45 per cent lower than comparable global auctions such as Germany’s, setting new international benchmarks. Similar trends are expected for green methanol, reaffirming India’s potential as a cost-competitive producer of green e-fuels. Ports offer several advantages as green hydrogen hubs, including proximity to industrial clusters, established infrastructure, and access to international markets.
The shift provides an opportunity for ports to become Asia’s new gateway for green shipping fleets. The recently launched report, ‘Gateway to Green’ —assessing port readiness for green hydrogen transition to India, published by RMI and the Indian Port Association (IPA) — offers insights into Indian ports’ infrastructure and investment requirements to transition into green hydrogen hubs. It also outlines actions that port authorities must take to capitalise on these opportunities.
Emerging opportunities
The emerging green hydrogen landscape presents opportunities for ports to evolve from mere trade enablers into key players in the green hydrogen value chain, integrating roles spanning production, storage, distribution, and demand facilitation. With targeted measures in place, ports can now take a more active role in enabling a green hydrogen ecosystem.
The three designated green hydrogen port-based hubs — Deendayal (Kandla), Paradip, and VOC (Tuticorin) — have allocated close to 4,500 acres of land for production, storage, bunkering, and refuelling infrastructure. To build on this foundation, a tiered land allocation strategy could be introduced prioritising off-takers of hydrogen derivatives, such as fertilizers, ammonia, and steel. Such a strategy would ensure land use efficiency, stimulate demand, and enable trade of hydrogen-embedded products.
Indian ports already handle nearly five million tonnes of ammonia and methanol annually. Ports such as VOC and Jawaharlal Nehru Port, which already handle ammonia and green ammonia cargo with dedicated storage, can leverage this existing infrastructure and fast track their ambitions to scale.
Adopting a hub-based model through public and private collaboration could be a pragmatic path. Ports that adopt common user infrastructure (CUI) systems can bridge infrastructure gaps by minimising redundant capital expenditure.
A CUI model, where essential infrastructure such as hydrogen pipelines, storage, or desalinated water is shared, enables ports to explore new business approaches, including shared revenue and fee-based access. Today, subsidies play a significant role in making Indian green ammonia competitive. Subsidies, such as electricity charge waivers and capital support, can reduce production costs by nearly 40 per cent, making them on a par with, if not lower than, global auction prices, as seen in the H2Global auction in Germany.
The lack of credible offtake remains a key challenge for the global green hydrogen industry. Port-based interventions such as establishing green shipping corridors (shipping routes optimised for zero-emission fuels) can mitigate this. This green supply chain model can complement India’s cost competitiveness in the global green hydrogen market.
Ports can adopt new business models such as “energy-as-a-service,” leasing land and infrastructure to hydrogen producers with performance-based revenue sharing. They can also become innovation zones by anchoring green industrial clusters, creating circular green hydrogen demand ecosystems.
Lakshmanan is Joint Secretary (Ports, PPP, CS, Sagarmala-I, & IT), Ministry of Ports, Shipping and Waterways; Ghate is Managing Director, RMI. Views are personal
Published on October 11, 2025
