WHY GLOBAL GIANTS EXPLORING INDIAN MAJOR PORTS AS A GATEWAY TO SUSTAINABLE ENERGY? S.Sittarasu & Sagardeep Butani

The world is looking towards sustainable energy solutions to achieve the target of net-zero emissions. The global conglomerates working on prospects to ensure a successful transition to Green and Renewable Energy sources. The moot question is the Green Hydrogen and Ammonia can play a prominent role as a clean energy source although the demand is expected to enhance profoundly in the upcoming years. Not because of its intrinsic value & eco-friendly carbon neutrality to a clean environment but more to do with the facility creation called “Electrolysis Process of Green Hydrogen/Ammonia manufacturing facility, despite these challenges, it all becomes important to create sufficient production and infrastructure facilities for manufacturing of clean energy. India has already recognized the need for sustainable energy as the Hon’ble PM launched ‘The Green Hydrogen Mission’ laying the target to achieve a production capacity of 5 (five) Million Metric Tons of Green Hydrogen & Ammonia by 2030. Ammonia has been widely used as a Fertilizer for the last century. Now, using Renewable Energy and a new method for making Ammonia, researchers and entrepreneurs believe “Green” Ammonia can become a significant clean fuel source for generating electricity and powering ships. This document intends to highlight what Green Hydrogen and Ammonia is all about including the understanding of the production process, key elements to form clean energy, and the role of Indian Major Ports in the seamless adoption of sustainable energy in the upcoming future. Deendayal Port Authority (DPA), Kandla is leading an edge with a supporting eco-system and conducive environment which would enable the port to transform into a Global Green Hydrogen Hub.

(A) At the UN Climate Change Conference in Glasgow (UK) 120 world leaders in Nov 2021 discussed all facets of climate change – the science, the solutions, and the political will to act, coupled with a clear action plan. The unanimous consensus by the world leaders envisages concerted steps to reduce global warming. The countries pledged their National determination, and their contributions to ensure energy transition and reduce emissions. Most leading economies have committed to net zeroemission targets and India pledged to achieve it by 2070. Green Hydrogen Policy of India The Hon. Prime Minister launched the National Hydrogen Mission on India’s 75th Independence Day 15th August 2021. The Mission aims to aid the government in meeting its climate targets through the effective transition from fossil fuel-based feedstock to Green Hydrogen. Inter- alia, a Green Hydrogen Policy framed by the Government indicates various benefits and incentives for such manufacturing, transportation, storage, and distribution of Green Hydrogen. Green Hydrogen – process to form clean energy Hydrogen has been a global sun-rising sector more so for India unfolds huge industrial opportunities. A new number of companies across the globe are now exploring Green Hydrogen is the cleanest form of energy on the planet. Input for Hydrogen manufacturing is Water and Electric Power, used in the Electrolysis Process.

(B) The Electric Power generated comes from renewable sources which make the process completely emission-free. Green Ammonia Ammonia is a pungent gas that is being used to produce Fertilizer to feed the world. It has another great potential – when produced sustainably by turning Hydrogen into ‘Green’ Ammonia using a renewable energy source. Green Ammonia is a pungent gas, produced by turning Hydrogen into Ammonia using a renewable energy source. Green Ammonia can act as an emission-free fuel or be used as an energy source and carrier. The production of Green Ammonia offers further options in the transition to net-zero carbon emissions including; - Energy Storage - Ammonia can be easily stored as a bulk liquid and can be transported around the world by pipes, roads, and ship tankers. - Zero-carbon Fuel - Ammonia as a marine fuel can be burnt in an engine or used in a fuel cell to produce electricity. The maritime industry is likely to be an early adopter, replacing the use of fuel oil in marine engines. -Hydrogen Carrier - There are applications where Hydrogen gas is used (e.g., in PEM fuel cells), however, Hydrogen is difficult and expensive to store in bulk (need cryogenic tanks or high-pressure cylinders). Ammonia is easier to store, and transport, and it can be readily “cracked” and purified to give Hydrogen gas when required. It needs to mention that besides Green Ammonia, there will also be a demand for Green Methanol, depending on its use in the market. Nevertheless, from a cost perspective, Green Ammonia would prove to be a reasonable fuel for application in industries in the upcoming future. Green Hydrogen & Ammonia Manufacturing Facility For setting up a Green Hydrogen and Ammonia manufacturing facility, mainly requires a land parcel for undertaking the production process, sufficient potable water, unrestricted banking facility of Renewable Energy (RE Power), connectivity to sub-station, storage facilities near to the port, Right-of-Way (ROW) for transportation of Hydrogen & Ammonia for exports and desalination plant, if needed. Such projects usually require a huge amount of Electric Power and Water to use in the Electrolysers. The Electric Power is generated using RE Power sources such as Wind, Solar or Hybrid. The key elements to be considered while setting up Green Hydrogen & Ammonia Manufacturing Facility are appended;

1. Land; Requirement of contiguous land, leasehold or freehold, free from encumbrances for setting up a manufacturing facility. Additional land may be required for installing Wind Turbines and Solar panels for generating RE Power. The said land may not necessarily be contiguous in nature as the RE Power Generators may be located at different locations.

2. Water; The availability of water and ensuring its seamless supply is a crucial element in the production process. The usual sources of water supply are reservoirs, rivers, canals (operated by State Water Board), local municipal supply, and seawater. The production sites are located close to seashore areas or abutting seaports, and where there is an insufficient supply of surface water, a desalination plant can be set up for the conversion of seawater in order to make it compliant for usage in the production process. The areas next to the ports would be ideal for setting up the project.

3. Power; The availability of power also plays a critical role in the effective operation of the production process. To ensure an uninterrupted power supply, the production site needs to be well connected with the RE power generation areas through sub-station connectivity and where an unrestricted power banking facility is available. For instance, under the recently introduced Govt. of India’s Green Hydrogen Policy, the banking of RE power shall be permitted for a period of 30 days.

4. Allied Infrastructure; The logistics and storage infrastructure of Green Hydrogen and Ammonia is important to ensure an efficient supply chain and distribution while catering to domestic and international consumers. The location of the production site and the storage facilities having multi-modal connectivity facilitates seamless movement of cargo to serve the hinterland customers as well as exports by setting up a Hydrogen and Ammonia Storage Terminal near ports.

(C) The Ministry of Ports, Shipping & Waterways’ Maritime India Vision (MIV) 2030 To lead the World in a Safe, Sustainable & Green Maritime Sector, the Indian Major Ports, under the MIV 2030, have committed to adherence to International Marine Organization’s alignment to United Nations (UN) Sustainable Development Goals (SDG) which includes obligations on safe, efficient and sustainable ports. A National Action Plan (NAP) has been prepared to promote Green Shipping in India with focus areas including technology and solutions, policy instruments, and developing supporting infrastructure such as bunkering stations for LNG and Green Hydrogen. The Indian Major Port Authorities including Deendayal on the west coast and Paradip on the east coast have already initiated efforts in this direction. Deendayal Port Authority (DPA) – Green Port Initiatives DPA has undertaken several initiatives under the Green Port mission and has emerged as the First Indian Major Port to install a 20 MW wind power project during 2018-2020.

(D) There are further potentialities for setting up wind farms on the port landfall areas, shallow, and along breakwaters. The port is actively working on the Centre of Excellence for Policy, Research, and Co-operation on Green Shipping and in the area of Green Hydrogen and Green Fuels, which is in cognizance to the MOU signed between the Ministry of Ports, Shipping and Waterways (GOI), and Ministry of Business, Industry and Financial Affairs of Denmark during May 2022. Setting up battery charging stations, electric shore equipment, and shore power supply to the ships are some of the initiatives which the port is promoting under the scope and purview of this MOU. DPA – A Potential Green Hydrogen Corridor Transforming the Future As per records, around 6 (six) million tons of Hydrogen is consumed annually in India, primarily in Ammonia and Methanol production and for use in refineries. It is estimated that the demand for Hydrogen could grow to as much as 28 (twenty-eight) million tons by 2050.

(E) The National Hydrogen Policy aims to produce 5 million tons of Green Hydrogen by 2030 in line with the projected demand. Several Indian companies including RIL, L&T, GAIL, NTPC, IOCL, AVAADA, ADANI, and others have already started announcing their plans to dip their toes in the green energy sub-sector to produce Green Hydrogen. DPA can play a key role in well integration of demand and supply, as it holds a unique position by setting benchmarks and meeting industry requirements. The numerous port advantages including multifarious cargo handling, competitive tariff, all-year operation, strategic location- close to Middle East and Europe, vast hinterland, largest land bank, and among others, make DPA as an ideal destination for hosting the Green Energy Projects.

(F) To take leverage of the available port benefits, global conglomerates such as Tesla, Vestas, Statkraft, and AVAADA are already keeping an eye, as visited Kandla port for exploring avenues for investment in Renewable Energy. According to Statkraft, owned by the Norwegian state, the team visited recently to the Port to recce the ecosystem, focusing on electrifying and decarbonizing an Ammonia plant.

The time is now, as in terms of a timeline indicated it would take five to seven years to get the project up and running. for the role of transition, storage, and manufacturing as part of the long-term energy mix. To get Green Ammonia going fast and big enough, government policies will likely be needed to help subsidize Green Hydrogen and encourage economies of scale. No matter which specific direction things go, observers expect the Green Ammonia market to ramp up quickly. Nature has given Ammonia attributes that seem to make it a perfect commodity for a future Hydrogen economy. __________________________________________________________________________For achieving the seamless transition from Fossil Fuel to De-carbonization of economy, Deendayal Port Authority (DPA) Kandla is open for new investments, fulfilling the interest of ‘Atmanirbhar Bharat’ and as a step to achieve net-zero emissions.

References;

1. Green Hydrogen Policy, Ministry of Power (Govt. of India), dated 17th February 2022, New Delhi

2. List of agreements signed/announced during the visit of Prime Minister to Denmark, Ministry of External Affairs, Govt. of India, May 03, 2022, Copenhagen, MEA | Statements: Bilateral/Multilateral Documents

3. Press Release on Prime Minister’s meeting with Prime Minister of Denmark, 3rd May 2022 by PIB Delhi, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1822370

4. With 2 big ports, Gujarat sets off a race for the Tesla plant, The Hindu Business Line, on January 16, 2021, in Mumbai,

5. Maritime India Vision (MIV) 2030, Ministry of Ports, Shipping & Waterways (Govt. of India), February 2021.

6. India’s announcement on climate targets, Indian Express, November 6, 2021, Glasgow

7. From Fertilizer to Fuel: Can ‘Green’ Ammonia be a Climate Fix? Yale Environment 360, January 20, 2022, Nicola Jones, https://e360.yale.edu/features/from-fertilizer-to-fuel-can-green-ammonia-be-a-climate-fix