Posted on January 15, 2024
APM Terminals Pipavav has today signed a series of Memorandums of Understanding (MoU) to develop a complete green hydrogen ecosystem and port infrastructure. The first-move advantage of this initiative will provide economic benefits for both the local and regional economy, boost employment and support wider decarbonisation goals.
Green hydrogen is a sustainable, renewable energy source produced from water which can be used in industial processes to replace fossil fuels in transport and as energy storage to replace batteries.
“We expect hydrogen demand to rise sharply over the next two decades, and the series of MoU signed today will give Pipavav and Gujarat State a first mover advantage, making it a front runner for attracting ongoing investment to make the most of this new global opportunity,” said Mr. Girish Aggarwal, Managing Director of APM Terminals Pipavav.
Green value chain
The three MoU signed by APM Terminals pull together a consortium of local and international partners to set up a 100% green value chain. The agreements will enable the production, transportation by ship, storage and transshipment, and the distribution of hydrogen. This is expected to drive significant volumes at APM Terminals Pipavav, bring associated economic benefits and boost regional employment.
Working together, they will help overcome some of the major bottlenecks such as long permitting and lead times that can block the complex infrastructure required to safely produce and distribute hydrogen.
APM Terminals signed MoU with integrated power company, NTPC, and multinational conglomerate, Welspun Group, to develop green hydrogen production and distribution facilities on land provided by the port, for both export and domestic use through various models.
Supporting the Gujarat Renewable Energy Policy
As part of the agreement with NTPC the project will explore sourcing renewable power from NTPC Green Energy Limited (NGEL).
The production of green hydrogen requires huge amounts of renewable energy which is fully supported by the Gujarat government, which introduced the Gujarat Renewable Energy Policy in 2023. This outlines the ambitious goal of generating 50% of power from renewable sources by 2030.
Removing green hydrogen barriers
A recent report from the International Energy Agency said lead times for clean hydrogen projects are too long and can act as a barrier to uptake. An MoU signed with the Gujarat Maritime Board will help facilitate permissions for the construction of a Liquid Berth and marine infrastructure development at Pipavav Port.
Together with a new container berth, yard and container handling equipment, the investment is estimated to be around INR 3,320 crore (approximately EUR 365 million).
“APM Terminals Pipavav is committed to the community, environment and to the region. By signing ground breaking MoU predominantly in the capital investment and Green Hydrogen space we bring together all the parties required to make this a success and reiterate our commitment to the state of Gujarat,” said Mr. Aggarwal.
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Image Caption (Left to Right): Mr. Kapil Maheshwari – CEO Welspun Energy; Mr. B. K. Goenka – Chairman Welspun Group; Keith Svendsen – CEO APM Terminals; Girish Aggarwal – MD APM Terminals Pipavav
