Green Hydrogen Ammonia Newsletter - COE Chakra
Green Hydrogen Ammonia Newsletter
Ports Powering India’s Green Hydrogen Revolution
April, 2026
Subhadeep Guha, Green Hydrogen, SBI CHAKRA
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.
Green Hydrogen & Ammonia Sectoral Insights
India’s green hydrogen sector is undergoing a structural transition, shaped by its central role in achieving the 2070 net zero target and decarbonising hard-to-abate industries. Green hydrogen is positioned to close the 30–35% emissions gap that renewable energy and electrification alone cannot address. Current demand of around 10 MMT, almost entirely grey hydrogen, highlights the scale of transition required. By 2030, the National Green Hydrogen Mission aims for 5 MMT of domestic production, supported by incentives for both generation and electrolyser manufacturing.
Policy and regulatory interventions are building the foundation for scale. Direct production support, transmission charge waivers, and port-linked infrastructure allocation are strengthening project viability. State-level policies in Gujarat, Maharashtra, and Tamil Nadu are reinforcing this momentum by offering land, subsidies, and green power integration. Bilateral treaties with the EU, Japan, and Australia are also opening trade corridors for exports. India’s strict emission intensity norms, at ≤2 kg CO₂ per kg of hydrogen, are setting benchmarks for credibility in global markets.
Demand is diversifying across refining, fertilizers, city gas distribution, chemicals, and steel. Blending offers immediate low-barrier entry points, with offtake in refineries and non-urea fertilizers already under discussion. Exports of green ammonia, methanol, and embedded products such as green steel present significant near-term opportunities, especially to Europe and Asia where policy-driven imports are accelerating. Public procurement, particularly in steel for railways and infrastructure, is expected to play an anchoring role in early demand creation.
Domestic electrolyser production is scaling rapidly under the PLI scheme, with over 16 GW already announced by companies such as Adani, L&T, and Greenko. Alkaline systems are expected to dominate in the near term, supported by localised electrode manufacturing, while PEM and solid oxide systems remain limited by cost and material risks. India’s renewable energy advantage and manufacturing scale position it as a globally competitive hub.
Commercial viability remains dependent on cost reduction and financing innovation. Current production costs of USD 4.2–5 per kg is well above grey hydrogen, but parity is expected post-2030 as renewable power and electrolyser costs decline. Blended finance, offtake-linked contracts, and sovereign-backed guarantees are identified as critical enablers to close this gap. Global case studies in the US, EU, and Middle East highlight that early-stage projects achieve viability through long-term offtake agreements and subsidy-backed capital structures.
Challenges persist across infrastructure, storage, and transport. Limited domestic pilots in pipelines, ammonia conversion, and LOHCs underscore execution risks. Electrolyser supply chains are vulnerable to imported iridium, platinum, and nickel, raising concerns about cost stability. Broader risks include permitting delays, demand-side uncertainty, and integration challenges in fertilizer and steel value chains. These underscore the importance of coordinated policy support, industrial coalitions, and standardised certification frameworks.
India’s pathway is now defined by a combination of policy ambition, industrial demand creation, and cost leadership. A deep pipeline of announced projects, export-linked opportunities, and state-supported hubs is positioning the country as a credible participant in the global hydrogen economy. The opportunity lies in disciplined prioritisation of large-scale, low-cost, and offtake-secured developments that align financial viability with long-term sustainability goals.
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Last Updated On : Saturday, 30-05-2026
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