JSW Infrastructure Ltd, India’s second-largest port operator, is planning to develop green hydrogen and ammonia plants at its ports. This move aims to diversify its business and capitalize on the growing demand for sustainable energy solutions.
Arun Maheshwari, Joint Managing Director of JSW Infrastructure, shared insights on this development, saying, “This is a new age business that is emerging. We have been contemplating and exploring opportunities in this sector.” He further explained that the company has been approached by firms interested in green hydrogen and ammonia, and JSW is assessing the potential to enter this market.
Maheshwari highlighted that building these facilities will be long-term and capital-intensive, requiring suitable land, robust infrastructure, and strategic port locations. He noted, “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.”
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 to transform its Vizhinjam Port into a global hub for green fuels like hydrogen and ammonia, indicating growing competition in this sector. Additionally, JSW Energy, a sister company of JSW Infrastructure, is exploring acquisitions in the green energy sector, reflecting the group’s 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 strategic port locations, Maheshwari identified Paradip as a key hub for iron ore and coal, Ennore terminal as having significant growth potential, and New Mangalore terminal as unique in cargo handling. 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 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 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.
