JSW Infrastructure Explores Green Hydrogen and Ammonia Plants at Ports
JSW Infrastructure Ltd, India's second-largest port operator, is considering the development of green hydrogen and ammonia plants at its ports to diversify into these emerging growth markets. The company aims to capitalize on the increasing global demand for sustainable energy solutions.
“This is a new age business that is emerging. We have been contemplating and exploring opportunities in this sector,” said Arun Maheshwari, Joint Managing Director of JSW Infrastructure. He added, “We’ve been approached by companies interested in the green hydrogen and ammonia segment, and we are evaluating the potential to enter this market as well”.
Maheshwari noted that establishing these facilities would be long-term, capital-intensive projects requiring suitable land, robust backend infrastructure, and strategic port locations. “Fortunately, both our existing and new port locations are appealing to potential players. However, we do not yet have a specific timeline for this project,” he remarked.
Earlier this year, the Ministry of Ports, Shipping, and Waterways (MoPSW) identified Kandla, Paradip, and Tuticorin as future export hubs for green hydrogen, ammonia, and methanol within the next seven years, aiming to position India as a major green hydrogen exporter. This aligns with JSW Infrastructure’s vision to expand into the green energy sector.
Adani Ports & SEZ recently announced plans for its Vizhinjam Port to become a global bunkering hub, supplying clean and green fuels such as hydrogen and ammonia. Adani Ports intends to utilize its West Coast ports for exporting these green fuels, highlighting the growing competition in this sector.
JSW Energy, a sister concern of JSW Infra, is also exploring acquisitions in the green energy sector, reflecting the group's broader commitment to sustainability and renewable energy.
Maheshwari expressed optimism about the company’s growth prospects, stating, “The industry guidance is around 4% to 4.5%, but our guidance is 10% to 12%”. He emphasized JSW Infra’s focus on enhancing last-mile connectivity and providing robust solutions to ensure customer loyalty.
Discussing the strategic importance of various terminals, Maheshwari highlighted Paradip as a key hub for iron ore and coal. The Ennore terminal has significant growth potential due to its proximity to the hinterland, while the New Mangalore terminal is unique in its cargo handling capabilities. Jaigarh port also shows substantial growth potential, and the recently acquired PNP Port offers rail connectivity that Jaigarh previously lacked.
Regarding the cargo customer mix, Maheshwari noted that the share of third-party business had increased from 6% in 2019 to 50% in the quarter ended June, primarily due to a temporary shutdown of an anchor customer. For the year, JSW Infra expects a 45% share from third-party business and 55% from anchor customers, aiming for a long-term sustainable 50:50 ratio.
On capacity addition from recent acquisitions, Maheshwari said the JNPA terminal is expected to be operational by February-March 2025, and the Tuticorin terminal is projected to be completed within 18 to 24 months. Additionally, JSW Infra plans to complete its 2 million tonnes per annum LPG terminal at Jaigarh, a key objective of its IPO.
Current utilization stands at 63-64%, with an expected increase to 66%. Assuming no additional capacities or assets are added, the utilization for 181.5 million tons is projected to reach around 66% within two years.
JSW Infrastructure's strategic plans and investments underscore its commitment to becoming a significant player in the green energy market while continuing to expand its port operations and capacity.
