Why are ports emerging as the natural location for green hydrogen hubs? Discuss with Indian examples.
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Green hydrogen is costly to store and to move over long distances. It is therefore cheapest where production, use and export happen in one place. Ports meet all three needs. In October 2025, MNRE recognised Deendayal (Kandla), V.O. Chidambaranar (Tuticorin) and Paradip as India's first Green Hydrogen Hubs under the National Green Hydrogen Mission [1].
Why ports suit green hydrogen hubs
- Co-location: the Mission's hubs and Hydrogen Valley Innovation Clusters put production, use and infrastructure together because hydrogen is hard to transport [2]. MNRE treats the three ports as integrated centres for production, consumption and future export [1].
- Export gateway: derivatives such as green ammonia and methanol travel by sea. Sembcorp (Singapore) signed MoUs with the VOC and Paradip port authorities for green hydrogen and ammonia hubs for production, storage and export [1]. SECI's MoU with Germany's H2Global Stiftung on joint tender design is meant to open overseas markets [1].
- Shipping creates demand: a ₹42 crore, 750 m³ green methanol bunkering facility at VOC Port will support a Coastal Green Shipping Corridor between Kandla and Tuticorin [1].
- Pilots already running: India's first port-based green hydrogen pilot (₹25 crore, 10 Nm³/hr) was commissioned at VOC Port in September 2025. It powers street lighting and an EV charging station [1].
- Coastal resources: coastal Gujarat, Tamil Nadu and Odisha have good solar and wind potential, large land parcels under port control, and seawater that can be desalinated for electrolysis.
- Existing facilities: ports already handle bulk liquid and gas cargo, so storage, pipelines and experienced port authorities lower start-up costs.
Constraints to address
- Cheap power: an ISTS charge waiver and time-bound Open Access help [1], but states must grant Open Access quickly.
- Export credibility: the Green Hydrogen Certification Scheme of India (April 2025), with BEE accrediting certifiers, has to be accepted by foreign buyers [1].
- Assured buyers: by May 2025, 862,000 tonnes a year of capacity had been allocated, still small against the 5 MMT target for 2030 [1]. Hubs need signed long-term buyers.
Ports bring together steady local demand, access to export markets and shipping decarbonisation, which turns a single plant into a working ecosystem. Next steps are buyer auctions modelled on the ₹55.75/kg green ammonia tender [1], foreign recognition of Indian certificates and faster state approvals. With these, the hubs can drive the 5 MMT goal and India's net zero by 2070 commitment, in line with SDG 7 and SDG 13.
Sources
- 1PIB Backgrounder, "Unlocking India's Green Hydrogen Production Potential" (12 Nov 2025): the three port hubs (Oct 2025) as integrated production, consumption and export centres; Sembcorp MoUs; SECI–H2Global MoU; VOC pilot; methanol bunkering and the Kandla–Tuticorin corridor; ISTS waiver and Open Access; GHCI and BEE; 862,000 TPA allocated; 5 MMT target; ₹55.75/kg ammonia auction; net zero 2070
- 2PIB press release on Green Hydrogen and the National Green Hydrogen Mission (28 Oct 2026): hubs and clusters co-locate production and use because hydrogen is hard to transport