Govt weighs use of green hydrogen for peak power generation
10 Feb 2024
The union ministry of new and renewable energy has proposed the use of green hydrogen for power generation in order to ensure round-the-clock availability of green power and also to ensure peak grid power supply.
In fact, minister for new and renewable energy and power, R K Singh, had earlier announced plans for setting up a 100 MW pilot project generating power using green hydrogen as an energy storage medium.
Government of India is reported to have awarded tenders for production of a total 4.12 lakh tonnes of green hydrogen and 1,500 MW electrolysers, as part of the efforts to promote increased adoption of renewable energy.
The tenders awarded under the National Green Hydrogen Mission (NGHM), aims at catapulting the nation into a global hub for green hydrogen production, usage, and export. NGHM, with a plan outlay of Rs19,744 crore, will spearhead the government’s efforts towards promoting increased adoption of renewable energy and the use of green hydrogen.
Underscoring the government’s proactive approach towards sustainable energy transition, Singh said, the ministry of new and renewable energy is working on the modalities for promoting the use of green hydrogen for making available electricity round-the-clock.
Announcing the award of tenders for production of green hydrogen in the Rajya Sabha in a written reply to members’ questions, Singh said the government is looking at various options for incentivising green hydrogen production in the country.
One way to subsidise green power generation is for government to provide the difference between strike price (contracted price) and prevailing price, so as to prevent the awardee from making losses. However, during peak power periods, entities will have to pay back in a similar manner.
Ministry officials are in the process of drafting a model mechanism for supporting green power production.
Singh also said that in order to create a green hydrogen ecosystem in the country, the government has selected 10 companies for award of tender for setting up 4,12,000 tonne annual green hydrogen capacity while eight companies have been awarded electroliser tenders. These include:
Bucket-1: Electrolyser manufacturing based on any stack technology
Reliance Electrolyser Manufacturing Limited, with a manufacturing capacity of 300 MW/annum and a maximum incentive of Rs444 crore;
Ohmium Operations Private Limited, with a manufacturing capacity of: 137 MW/annum and a maximum incentive of Rs202.76 crore;
John Cockerill Greenko Hydrogen Solutions Private Ltd, with a manufacturing capacity of 300 MW/annum and a maximum incentive of Rs444 crore;
Advait Infratech Limited (consortium with Rajesh Power Service Private Limited), with a manufacturing capacity of 100 MW/annum and a maximum incentive of Rs148 crore;
Jindal India Limited, with a manufacturing capacity of 300 MW/annum and a maximum incentive of Rs444 crore; and
L&T Electrolysers Limited, with a manufacturing capacity of 63 MW/annum and a maximum incentive of Rs93.24 crore.
Bucket-2: Electrolyser manufacturing based on indigenously developed stack technology
Homihydrogen Private Limited, with a manufacturing capacity of 101.5 MW/annum and a maximum incentive of Rs150.22 crore;and
Adani New Industries Limited, with a manufacturing capacity of 198.5 MW/annum and a maximum incentive of Rs293.78 crore.
In order to bolster India’s green energy infrastructure, NGHM has identified regions capable of supporting large-scale hydrogen production and utilisation, besides earmarking two green hydrogen hubs for development. The ministry of ports, shipping and waterways has identified three major ports — Deendayal, Paradip, and VO Chidambaranar (Tuticorin) — to be developed as hydrogen hubs.
It is currently in the process of identifying specific sectors for pilot projects utilising green hydrogen in the shipping sector are set to materialize following the issuance of scheme guidelines. These initiatives underscore India’s commitment to embracing sustainable energy practices and positioning itself as a pivotal player in the global Green Hydrogen market.
In a complementary move, the Petroleum and Natural Gas Regulatory Board (PNGRB) has paved the way for a gas-based economy through the establishment of gas trading exchanges. Indian Gas Exchange Limited (IGX), authorized as the first gas exchange, facilitates transparent and efficient gas trading, bolstering the availability and distribution of natural gas across the nation.
NGHM aims to achieve a green hydrogen production capacity of 5 million tonnes per annum by 2030, as India makes steady progress in its transformation to a cleaner, greener economy.