First Indian Port Allots Land for Green Hydrogen & Ammonia Project, Attracts Major Energy Players
V O Chidambaranar Port Authority, the state-owned entity responsible for managing the port at Thoothukudi in Tamil Nadu, has taken a significant step towards promoting green energy solutions in India.
They have issued a letter of intent to ACME Cleantech Solutions Pvt Ltd, allowing them to lease 222.79 acres of port land for the establishment of a green hydrogen and green ammonia project. The investment for this ambitious project is estimated to be around Rs 52,474 crore.
This move has made V O Chidambaranar Port the first port in India to allocate land specifically for the production and export of green hydrogen.
The lease agreement will span 30 years, and the land will be subject to annual rentals set by the port authority.
Additionally, the port authority has granted a 10-acre land lease to ReNew Power Ltd for the purpose of storing and exporting green hydrogen and ammonia.
The ACME plant is expected to have a production capacity of 3,000 tonnes per day of hydrogen, marking a significant milestone in the country’s pursuit of green energy solutions.
ACME and ReNew Power were among the 25 entities that responded to an expression of interest issued by the V O C Port Authority for setting up green hydrogen and green ammonia projects on the port land.
The implementation of green hydrogen production requires a stable and continuous supply of renewable energy. To facilitate this, the port authority has plans for several renewable energy projects, including a 5 MW solar plant, a 2 MW wind farm, a 60 MW hybrid wind solar plant, a mega offshore wind plant, and a desalination plant, all to be developed through public-private-partnership (PPP) mode, in support of the green hydrogen and green ammonia initiatives.
The demand for green hydrogen in India is projected to grow significantly, with a predicted demand of 20 GW by 2030 and 226 GW by 2050. This represents a substantial opportunity for indigenous manufacturing of this emerging energy technology.
Furthermore, it is anticipated that the green hydrogen market in India will have a cumulative value of $8 billion by 2030 and $340 billion by 2050.
The electrolyser market, a crucial component of green hydrogen production, is expected to reach approximately $5 billion by 2030 and $31 billion by 2050.
Apart from the economic benefits, the adoption of green hydrogen is also expected to contribute to a reduction of 3.6 giga tonnes of cumulative CO2 emissions between 2020 and 2050. In terms of energy savings, India stands to save between $246 billion to $358 billion through reduced energy imports by embracing green hydrogen technology.
Beyond financial gains, the shift to green hydrogen is expected to enhance energy security, stabilize price inputs for industries, and strengthen India’s foreign exchange situation in the long run.