Thoothukudi, October 23, 2025 – In a landmark boost to India's green energy transition, Adani Ports and Special Economic Zone Ltd (APSEZ) has secured a ₹3,000 crore contract to develop a state-of-the-art green hydrogen production and storage facility at the V.O. Chidambaranar (VOC) Port here, positioning Tamil Nadu as a frontrunner in sustainable maritime logistics. The project, announced during a high-profile investor summit hosted by the state government, aligns seamlessly with Chief Minister MK Stalin's aggressive renewable energy push, aiming to make the port India's first fully green hydrogen-powered hub by 2030 and create over 1,500 direct jobs in the coastal district.
The deal, inked between APSEZ and the Tamil Nadu Industrial Development Corporation (TIDCO) in the presence of Industries Minister TRB Rajaa, entails constructing a 50 MW electrolyzer-based plant spanning 100 acres within the port complex. Powered by 200 MW of dedicated solar and wind capacity – sourced from Adani Green Energy's nearby assets – the facility will produce 20,000 metric tonnes of green hydrogen annually, primarily for bunkering ships, powering port equipment, and exporting ammonia derivatives to Europe and Japan. "This isn't just an investment; it's a blueprint for decarbonizing global trade routes," declared APSEZ CEO Karan Adani at the signing ceremony, flanked by VOC Port Chairman Susanta Kumar Purohit. "Thoothukudi's strategic location on the India-Middle East-Western Europe corridor makes it ideal for scaling green fuels, reducing our ports' carbon footprint by 40% within five years."
Tamil Nadu, already a renewable powerhouse with 50% of its installed capacity from solar and wind, views the project as a cornerstone of its ₹1 lakh crore Green Tamil Nadu Mission launched in 2024. The state, which attracted ₹8.25 lakh crore in investments at the 2024 Global Investors Meet, targets 50 GW of renewables by 2030, including 5 GW dedicated to green hydrogen under the National Green Hydrogen Mission (NGHM). "Adani's commitment validates our vision: Turning ports from polluters to pioneers," Rajaa enthused, highlighting incentives like 100% stamp duty exemptions and subsidized land leases that sweetened the deal. The initiative builds on VOC Port's pioneering efforts, including the September 2025 launch of India's first port-based green hydrogen pilot – a 1 MW setup powering streetlights and EV chargers – which has already cut diesel use by 30% in operations.
The ₹3,000 crore outlay breaks down into ₹1,500 crore for electrolyzers and storage tanks, ₹800 crore for renewable integration, and the balance for infrastructure like hydrogen pipelines and safety systems compliant with international standards. Funding will blend Adani's equity, green bonds, and NGHM subsidies worth ₹500 crore from the Ministry of New and Renewable Energy (MNRE). Experts hail it as a game-changer for de-risking hydrogen economics: At ₹250-300 per kg production cost, the project eyes offtake from Maersk and Hapag-Lloyd for zero-emission shipping trials starting 2027.
Yet, the fanfare isn't without caveats. Environmental activists, citing Adani's past controversies in Thoothukudi – including 2020 protests over the nearby copper smelter's emissions – have urged independent audits. "Green hydrogen is promising, but we need enforceable safeguards against water overuse in this drought-prone belt," cautioned Nityanand Jayaraman of the Community Environmental Monitoring group. The state has allayed fears by mandating 100% desalinated water use and zero-liquid discharge norms. Adani, for its part, pledged a ₹100 crore community fund for local fisheries and skill training.
This pact adds to Adani's Tamil Nadu portfolio, which already includes ₹24,500 crore in pumped storage projects across three sites for 4.9 GW capacity, announced in 2024. Nationally, it dovetails with the group's $60 billion clean energy blitz by FY32, encompassing solar, wind, and hydrogen across Gujarat, Rajasthan, and now the south. As PM Modi's Viksit Bharat@2047 vision emphasizes green corridors, Thoothukudi's transformation from a coal-shadowed port to a hydrogen haven signals a seismic shift. For the 5 lakh residents here, it's not just cleaner air – it's a greener tomorrow, one molecule at a time.
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