Unleashing the Potential of Industrial Clusters 2025

Exploring new and enhanced business models that address the green premium is key to incentivizing electrification and the adoption of clean fuels. These models include creating new green products and markets underpinned by digital certificates. As highlighted by Accenture’s 2023 report, Powered for Change, 51% of heavy industry executives plan to launch or expand products and services with a lower carbon footprint in the next 3-5 years.47 These new products and services will be critical to unlocking demand across the clean energy value chain. New business models could also include a shared economy, allowing users to utilize infrastructure without requiring upfront investment (e.g. via subscription-based services and pay-per-use models). For example, the Port of Rotterdam Authority, as part of a consortium with Wärtsilä, the ING Group and Engie, established a pay-per-use model for battery containers to reduce upfront investment in clean technologies for users.48 Business models based on vertical integration and circularity provide another option, as they lower the green premium on clean fuels by reducing costs through supply chain control, economies of scale and process efficiency.New and enhanced business models In the Mundra cluster, one of India’s largest green hydrogen hubs is currently being built by strategically applying vertical integration to drive down costs and enhance the efficiency of the production of green hydrogen and its derivatives. By managing all aspects of the supply chain – from renewable energy equipment manufacturing and generation to electrolyser manufacturing and green hydrogen production – the Mundra cluster minimizes reliance on external suppliers, streamlining operations and reducing expenses. This approach allows to capitalize on economies of scale, while enabling circularity and integrating cutting- edge technologies. Regarding circularity, CO2 captured from cement production is combined with green hydrogen to produce low-carbon methanol. In addition, the proximity of the industrial cluster to the country’s largest commercial port facilitates the transport and export of green hydrogen and its derivatives, further lowering logistics costs. By combining large-scale production capabilities with the adjacent industrial ecosystem, decarbonization within the cluster is supported, while enabling the trade and export of green hydrogen and its associated derivatives. This comprehensive vertical integration not only supports cost reductions but also aligns with India’s broader goals of achieving energy security and reducing reliance on imports of energy, fertilizer and chemicals. We have implemented a vertically integrated model at our Mundra industrial cluster to achieve economies of scale and reduce the cost of green hydrogen production. By controlling every stage of the supply chain – from renewable energy equipment manufacturing and generation to electrolyser manufacturing and green hydrogen production – we minimize reliance on external suppliers to facilitate the large-scale production of low-cost green hydrogen. Karan Adani, Managing Director, Adani Ports and Special Economic Zone Mundra cluster, Mundra Port Gujarat, India; Image credit: ShutterstockCASE STUDY 12 Vertical integration across the green hydrogen value chain and circular economy business model in the Mundra cluster Unleashing the Full Potential of Industrial Clusters: Infrastructure Solutions for Clean Energies 31