Green Hydrogen Ammonia Newsletter - COE Chakra

Ports Powering India’s Green Hydrogen Revolution

India’s green hydrogen journey is increasingly being shaped along its coastline. While hydrogen production is often discussed in terms of renewable energy and electrolysis, its large-scale adoption depends equally on how efficiently it can be stored, transported, converted, and traded. This is where ports become central.

Ports bring together all critical elements of the hydrogen value chain i.e. renewable energy access, industrial demand, storage infrastructure, and global shipping connectivity. In effect, they serve as natural aggregation points where hydrogen can move from being a production concept to a tradable energy commodity.

Recognising this, India has identified key ports such as Deendayal Port (Kandla, Gujarat), V.O. Chidambaranar Port (Tuticorin, Tamil Nadu) and Paradip Port (Odisha) as hydrogen hubs under the National Green Hydrogen Mission. These locations are not just facilitating production; they are being developed as integrated ecosystems that connect domestic capabilities with global demand.

India’s first green hydrogen hubs

The Global Context and India’s Emerging Advantage

Globally, the hydrogen market is being shaped by decarbonisation pressures in sectors that are difficult to electrify, particularly shipping and heavy industry. As countries move toward net-zero commitments, hydrogen derivatives such as ammonia and methanol are gaining prominence as viable alternatives to conventional fuels.

However, a defining feature of this emerging market is the geographical mismatch between production and demand. Regions such as Europe, Japan, and South Korea are expected to rely heavily on imports due to limited renewable energy resources, while countries like India have the potential to emerge as cost-competitive producers.

India’s advantage lies in a combination of factors such as its expanding renewable energy base, strategic location along major maritime routes, and an established port infrastructure. Together, these position India to play a meaningful role in global hydrogen trade flows.

India’s Hydrogen Landscape: Ports as Anchors of Development

Within India, hydrogen development is increasingly taking shape through port-led clusters rather than standalone projects.

At Tuticorin, early developments are focused on building capabilities for green fuel bunkering, aligning with the future needs of low-carbon shipping. Kandla is evolving into a cluster where hydrogen can be integrated into industrial and mobility applications, supported by Gujarat’s renewable ecosystem. Paradip, on the eastern coast, is being positioned as a gateway for export-oriented hydrogen and ammonia projects, leveraging its proximity to industrial zones.

Viewed together, these developments reflect a broader shift from pilot projects to interconnected ecosystems that combine production, utilisation, and export within a single geography.

Policy Tailwinds Supporting the Ecosystem

The development of green hydrogen hubs across India’s coastline is being actively shaped by state-level policy design that is closely aligned with port-led development.

In Gujarat, policy support is clearly oriented toward building large-scale, export-driven hydrogen clusters along coastal regions. The state’s Green Hydrogen Policy 2025 explicitly encourages development of hydrogen hubs near ports, supported by capital subsidies for electrolyser projects, desalination infrastructure, and common facilities. More importantly, the waiver of transmission, wheeling charges, and electricity duties significantly reduces the cost of renewable power which is a significant cost component in hydrogen production.

This combination of low-cost renewable power and port proximity is directly enabling Kandla to evolve as an integrated production-to-export hub.

In Tamil Nadu, the policy focus is less on subsidies alone and more on industrial ecosystem creation around ports. The state’s approach emphasises cluster-based development, faster approvals and manufacturing integration which is particularly relevant for Tuticorin. By enabling industrial users, bunkering infrastructure and port-linked manufacturing zones to co-exist, Tamil Nadu is effectively positioning its ports as multi-use clean energy hubs rather than standalone production sites.

In Odisha, policy interventions are strongly aligned with export competitiveness. The state offers substantial relief on electricity duty, transmission charges and surcharges which significantly reduces landed power cost for a long tenure, which is often the single largest driver of hydrogen economics. Such incentives can reduce effective power costs by substantial margin, making Odisha one of the most competitive locations for green hydrogen production. This directly supports Paradip’s positioning as an export-oriented ammonia and hydrogen hub, where cost competitiveness is critical.

Opportunities for Indian Players: Trade Corridors and Early Market Signals

One of the most important developments in the current phase is the emergence of early demand signals for green hydrogen and its derivatives.

Global trade corridors are beginning to take shape with routes such as the Rotterdam–India–Singapore corridor being positioned as key pathways for future hydrogen trade. These corridors are important not only from a logistics standpoint but also because they help aggregate demand across geographies, making large-scale projects more viable.

At the same time, Indian developers are beginning to secure long-term international agreements for green ammonia supply. These early contracts indicate that global buyers are willing to engage with Indian producers, providing the first signs of demand-backed market development.

Together, trade corridors and export agreements suggest that the sector is moving beyond policy intent toward structured market formation.

Challenges in the Current Phase

While the momentum around port-based hydrogen hubs is strong, the transition to scale is still evolving and presents a few structural challenges.

A key concern is the overall cost of hydrogen production and delivery, particularly as projects move toward export markets. While policy support has helped reduce production-side costs, the increasing role of transportation, storage, and conversion is beginning to add upward pressure on overall hydrogen costs. As hydrogen is converted into ammonia or methanol and transported over long distances, logistics costs become a significant component, leading to an increase in the effective levelized cost of hydrogen (LCOH) at the point of delivery.

At the same time, infrastructure requirements remain complex. Port-based ecosystems require simultaneous development of storage facilities, pipelines, bunkering systems and desalination units, which increases both capital intensity and execution timelines.

There are also evolving regulatory and safety considerations, particularly around hydrogen handling and ammonia bunkering, which are still being standardised. In addition, the availability of contiguous land near ports, while supported in some states through policy, it continues to be a practical constraint in others as projects scale.

Finally, the ecosystem is still in the process of establishing stable, long-term demand linkages. While early export contracts have emerged, wider demand visibility is still developing, which continues to influence financing decisions.

These challenges are typical of a sector transitioning from early deployment to commercial scale, but they highlight the need for coordinated development across production, infrastructure, and demand.

Conclusion: From Ports to Platforms for Global Trade

India’s green hydrogen journey is gradually moving from experimentation to execution. In this transition, ports are emerging not just as supporting infrastructure but as central platforms that connect production with global markets.

The convergence of policy support, evolving global demand, and early trade linkages suggests that India is well-positioned to participate in the emerging hydrogen economy. However, the pace of progress will depend on how effectively these elements are brought together into coherent, demand-linked ecosystems.

If this alignment is achieved, India’s ports could play a defining role in shaping the country’s position in the global energy transition, transforming its coastline into a gateway for clean energy trade in the years ahead.