JSW Infrastructure is considering venturing into green hydrogen and ammonia production at its port facilities.
Joint Managing Director Arun Maheshwari emphasized the potential of this new market and mentioned that JSW has already been approached by other companies interested in collaboration. However, specific timelines for these capital-intensive projects remain undefined.
Maheshwari highlighted the availability of suitable land and robust infrastructure at existing and new port sites as key factors that make these investments appealing. While these elements are crucial for project feasibility, the absence of clear timelines and concrete plans raises questions about the immediacy and readiness of JSW’s entry into the green hydrogen market. The company’s strategic intentions, although promising, require further clarity and detail to be fully convincing.
The Ministry of Ports, Shipping, and Waterways (MoPSW) has identified Kandla, Paradip, and Tuticorin ports as future hubs for green hydrogen, ammonia, and methanol exports. This government initiative aims to position India as a global exporter of green hydrogen. While JSW Infrastructure’s plans align with this national vision, the competitive landscape is intensifying. Adani Ports & SEZ, a major industry competitor, is also setting up green fuel terminals, specifically at Vizhinjam Port for clean fuel exports.
JSW Energy, a related entity, is actively seeking acquisitions in the green energy segment, reflecting the broader strategic shift within the JSW Group towards renewable energy. However, the competitive dynamics with Adani Ports & SEZ, which has similar ambitions, underscore the need for JSW Infrastructure to clearly define its unique value proposition and strategic advantages.
JSW Infrastructure has set a growth target of 10-12% with a focus on enhancing connectivity and customer solutions. The company’s cargo handling operations are becoming more balanced, aiming for an equal mix between third-party and anchor customers. Future expansions include projects at the Jawaharlal Nehru Port Authority (JNPA) and Tuticorin terminals, as well as a 2 million tonnes per annum (MTPA) LPG terminal at Jaigarh.
Current port occupancy levels are at 63-64%, with a projected increase to 66%. While these figures indicate a positive trajectory, the incremental gains suggest a need for more aggressive capacity utilization strategies. The expansion plans, although ambitious, must be critically assessed against the backdrop of existing infrastructure and market demand to ensure they deliver the anticipated growth.
