Need to repurpose LNG infra to make ports GH2 export hubs: IPA

 

Indian ports would need to take up extensive reforms like repurposing existing Liquefied Natural Gas (LNG) terminals for green hydrogen (GH2) derivatives such as green ammonia, and setting up common user infrastructure frameworks to become export hubs for GH2, according to a report by the Indian Ports Association (IPA) and the US-based energy think tank RMI. While developing hydrogen pipelines is essential, high costs - 70-80% from materials, labour and construction - and challenges like securing rights of way make repurposing underutilised pipelines appealing. India’s LNG import terminals could be retrofitted to handle the export of GH2 derivatives such as ammonia. 

Clear cost advantage is said to be evident for repurposing LNG import terminals. According to the study, constructing greenfield ammonia terminals with capacity of 5 million tonnes per year is estimated to cost Rs 20,401-21,209 crore. In contrast, repurposing LNG terminals either after or before commissioning would cost approximately Rs 14,766-12,581 crore, assuming a 30-year operational lifespan, as per a report.

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