Current Affairs

India’s First Port-Based Green Hydrogen Plant: Milestone in Clean Energy Transition

Author: VisionIAS Editorial Team

Aug 4, 2025Current Affairs9 min read

India’s First Port-Based Green Hydrogen Plant: Milestone in Clean Energy Transition

National Green Hydrogen Mission has commissioned a 1 MW Indigenously-Built Green Hydrogen Power Plant (GHPP) at Kandla Port.

India has achieved a milestone in its clean energy journey with the commissioning of the country’s first port-based green hydrogen plant at Kandla. This initiative marks a transformative step in India’s commitment to sustainable development and energy independence, showcasing the nation’s capability to lead the global green energy revolution.

Table of Contents

Historic Achievement at Kandla

On July 31, 2025, Union Minister of Ports, Shipping & Waterways (MoPSW) inaugurated the 1 MW green hydrogen plant at the Deendayal Port Authority (DPA), Kandla, Gujarat. This facility represents more than just technological advancement. It embodies India’s vision of becoming a global hub for clean energy production and export.

The plant’s production capacity of approximately 140 metric tonnes of green hydrogen annually demonstrates India’s commitment to scaling up clean energy infrastructure.

The Kandla facility stands as a testament to India’s indigenous technological capabilities. Implemented by Larsen & Toubro (L&T) as the engineering and construction partner, the plant utilizes fully indigenous “Make in India” electrolyzers, demonstrating the country’s growing expertise in clean energy technology.

The plant’s primary function is to support port decarbonization, initially powering 11 hydrogen buses and street lighting within the port. The long-term vision extends to fueling all port resources, aligning with the Maritime India Vision 2030 and India’s Net Zero emissions goals.

This location at Deendayal Port Authority is particularly significant as it positions India to develop integrated “green hydrogen superhubs” that serve multiple functions including production, consumption, export, and bunkering. The proximity to industrial clusters and renewable energy resources makes these port-based facilities ideal for both domestic use and international trade.

Understanding Green Hydrogen

Green hydrogen is produced through electrolysis, a process that splits water molecules (H2O) into hydrogen and oxygen using electricity generated from renewable energy sources like solar, wind, and hydropower. This production method ensures zero carbon emissions, making it the cleanest form of hydrogen available. To classify as Green hydrogen, the production cost is needed to be less than $2 per kg.

The type of hydrogen depends on the production process.

The significance of green hydrogen extends across multiple sectors:

Industrial Applications: Green hydrogen can revolutionize steel production by replacing coking coal in blast furnaces, and serve as a clean alternative in refineries and fertilizer plants for ammonia and methanol production.

Transportation Sector: Hydrogen fuel cells power trucks, buses, and other vehicles, offering a zero-emission alternative to conventional fossil fuels.

Energy Storage: Green hydrogen serves as an efficient medium for energy storage and grid balancing, generating electricity during peak demand or when renewable generation is low.

India’s National Green Hydrogen Mission

The green hydrogen plant at Kandla operates under India’s National Green Hydrogen Mission (NGHM), launched in 2023 with an outlay of ₹19,744 crore. This mission aims to make India a global hub for production, usage, and export of green hydrogen and its derivatives.

A key component of the mission is the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which provides incentives for electrolyzer manufacturing and green hydrogen production. This approach supports the Make in India initiative by fostering domestic manufacturing capabilities and reducing import dependence.

Additionally, India has launched the Green Hydrogen Certification Scheme of India (GHCI) under the National Green Hydrogen Mission (NGHM). This helps in creating a robust framework for certifying Green Hydrogen production and ensuring transparency, traceability, and market credibility.

Strategic Implications for India’s Energy Security

The development of green hydrogen technology holds profound implications for India’s energy security and economic growth. By producing hydrogen through domestic renewable energy sources, India can significantly reduce its dependence on volatile fossil fuel imports.

The green hydrogen plant at Kandla exemplifies India’s commitment to sustainable development while advancing the Atmanirbhar Bharat vision. This approach extends beyond energy independence to encompass technological self-reliance and indigenous manufacturing capabilities.

In addition, a pioneering initiative, Cochin International Airport Ltd (CIAL) in collaboration with BPCL is setting up the world’s first green hydrogen plant at an airport. This airport has a capacity to produce 1000 KW of power.

International Collaboration and Global Leadership

India’s green hydrogen journey is supported by robust international partnerships. Collaborations with countries like Germany, Denmark, Japan, and the European Union facilitate technology transfer, investment, and market access. The India-EU partnership alone includes €60 million in joint research and development under the Horizon Europe programme.

These partnerships position India as a future energy exporter in the green economy, altering its role in global energy geopolitics by shifting from fossil fuel imports to clean energy exports.

Challenges in green hydrogen adoption

While India’s progress in green hydrogen is commendable, several challenges need addressing for large-scale adoption:

Economic viability: The NITI Aayog report states that the current cost of producing green hydrogen via electrolysis ranges from $4.10 to $7 per kg. This is still too high to compete with grey or brown hydrogen.

Difficulty in Hydrogen Storage: As hydrogen as a gas typically requires high-pressure tanks (350–700 bar) tank pressure and as a liquid requires cryogenic temperatures because of the low boiling point of hydrogen.

Lack of Skill: The hydrogen production sector is expected to require nearly 2.83 lakh skilled professionals. These roles include design and planning, installation, commissioning, and operations of green hydrogen production units. However, there is a lack of availability of specialized technical skilled workforce.

Resource scarcity: Green hydrogen is produced by electrolyzing water, which can require up to 9 Liters of water per kilogram of hydrogen (As per International Energy Agency).

Lack of global standards on carbon intensity & safety: Regulations for green hydrogen definitions, transportation, storage, safety, and usage vary widely across countries.

Way Forward

The successful commissioning of the Kandla green hydrogen plant represents just the beginning of India’s green hydrogen revolution. Several other projects are in various stages of development, including facilities in Paradip, Tuticorin, and other strategic locations.

To accelerate adoption, India is implementing comprehensive strategies:

Cost Reduction: Through research and development, manufacturing incentives, and renewable energy expansion to achieve the target of $2 per kg production cost.

Policy Support: The SIGHT programme and other incentive mechanisms provide crucial financial support for early adopters and manufacturers.

Infrastructure Development: Strategic development of green hydrogen hubs and industrial clusters to create integrated value chains.

Skill Development: Coordinated programs to address expertise requirements across the green hydrogen value chain.

Conclusion

The inauguration of India’s first port-based green hydrogen plant at Deendayal Port Authority marks a historic milestone in the country’s clean energy transition. This achievement demonstrates India’s capability to translate ambitious policy goals into tangible results through indigenous technology and rapid implementation.

As India continues to develop its green hydrogen ecosystem, the Kandla plant serves as a symbol of the nation’s commitment to sustainable development, energy security, and global climate leadership. The success of this initiative paves the way for India to achieve its ambitious targets under the National Green Hydrogen Mission and establish itself as a global leader in the clean energy economy.