JSW Infrastructure Eyes Green Hydrogen and Ammonia Plants at Strategic Ports to Tap Growth Market

JSW Infrastructure Ltd, India’s second-largest port operator, is considering building green hydrogen and ammonia plants at its ports to tap into this growing market.

“This is a new and emerging business. We are looking into opportunities in this sector,” said Arun Maheshwari, joint managing director.

“We’ve had interest from companies in the green hydrogen and ammonia sector, and we are evaluating whether to enter this market,” he added.

Long Term Benefits

When asked about the timeline, Maheshwari explained that setting up such facilities would be long-term, expensive projects requiring suitable land, strong support systems, and strategic port locations. “Fortunately, both our current and new port locations are attractive to potential partners. However, we don’t have a specific timeline for this project yet.”

Earlier this year, the Ministry of Ports, Shipping, and Waterways (MoPSW) identified three key ports—Kandla, Paradip, and Tuticorin—as future export hubs for green hydrogen, ammonia, and methanol within the next seven years, aiming to make India a major exporter of green hydrogen.

Adani Ports & SEZ

Recently, Adani Ports & SEZ announced that its Vizhinjam Port would also become a global bunkering hub, supplying clean and green fuels such as hydrogen and ammonia. Adani Ports plans to use its ports on India’s West Coast to export these green fuels. Meanwhile, JSW Energy, JSW Infra’s sister company, is also looking at acquisitions in the green energy sector.

Regarding overall company growth, Maheshwari said, “The industry growth forecast is around 4% to 4.5%, but we aim for 10% to 12%.”

Improving Last-Mile Connectivity

He emphasised that JSW Infra is focusing on improving last-mile connectivity and providing strong solutions to ensure customer loyalty.

Talking about growth drivers, Maheshwari highlighted the strategic importance of various terminals. “Paradip is a key hub for iron ore and coal. Ennore terminal has growth potential due to its location near the hinterland. New Mangalore terminal is unique in its cargo handling, and Jaigarh port has significant growth potential. Additionally, PNP Port, recently acquired, offers rail connectivity that Jaigarh lacked.”

Third Party Shares

He also mentioned that the share of third-party business, which was 6% in 2019, had increased to 50% in the quarter ended June. “This increase is due to a temporary shutdown of one of our anchor customers. For the year, we expect the third-party share to be around 45%, with 55% from anchor customers. We aim for a long-term goal of a 50:50 ratio.”

Regarding capacity addition from recent acquisitions, Maheshwari said the company expects the JNPA terminal to be operational by February-March 2025, and the Tuticorin terminal to be completed within 18 to 24 months.

Additional Points

Additionally, the company aims to finish building its 2 million tonnes per annum LPG terminal at Jaigarh, which was a key objective of its IPO. These represent the three planned capacity additions.

He said the current utilisation is at 63-64%, which is expected to increase to 66%. Assuming no additional capacities or assets are added, the utilisation for 181.5 million tons is projected to be around 66% in two years.