July 22, 2024 [Microsoft Start]- JSW Infrastructure Ltd, India’s second-largest port operator, is considering building green hydrogen and ammonia plants at its ports to diversify into this potential growth market.
“This is a new age business that is emerging. We have been contemplating and exploring opportunities in this sector,” Arun Maheshwari, joint managing director told ET.
“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,” he added.
Asked about the timeline, Maheshwari said setting up such facilities would be long-term, capital-intensive projects requiring suitable land, robust backend, and strategic port location. “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 three key ports—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.
Recently, Adani Ports & SEZ announced that its Vizhinjam Port will also become a global bunkering hub, supplying clean and green fuels such as hydrogen and ammonia. Adani Ports plans to use its ports in India’s West Coast for exporting these green fuels.
Meanwhile, JSW Energy, JSW Infra’s sister concern, is also exploring acquisitions in the green energy sector.
Regarding overall company growth, Maheshwari said, “The industry guidance is around 4% to 4.5%, but our guidance is 10% to 12%.”
He emphasised that JSW Infra is focusing on enhancing last-mile connectivity and providing robust solutions to ensure customer loyalty.
Discussing growth drivers, Maheshwari spoke about the strategic importance of various terminals. “Paradip is a key iron ore hub and a preferred port for coal and iron ore. Ennore terminal has growth potential due to its proximity to the hinterland. New Mangalore terminal is unique in its cargo handling, and Jaigarh port too has significant growth potential. Additionally, PNP Port, recently acquired, offers rail connectivity that Jaigarh lacked.”
Elaborating on cargo customer mix, he noted that the share of third-party business, which was 6% in 2019, had increased to 50% in the quarter ended June. “This spike is due to a temporary shutdown of one of our anchor customers. For the year, we expect the third-party share to be around 45%, with 55% from anchor customers. This distribution is projected to be sustainable, with a long-term goal of achieving a 50:50 ratio.”
When asked about capacity addition from its recent acquisitions, Maheshwari said the company expects the JNPA terminal to be operational by February-March 2025, and the Tuticorin terminal to be completed within 18 to 24 months.
Additionally, the company aims to complete building its 2 million tonnes per annum LPG terminal at Jaigarh, which was a key objective of its IPO. These represent the three planned capacity additions.
He said the current utilisation is at 63-64%, which is expected to increase to 66%. Assuming that additional capacities or assets aren’t added, the utilisation for 181.5 million tons is projected at around 66% in two years.
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