Five green hydrogen clusters (hubs), where production and consumption of the gas are co-located and government support of Rs 120 crore per year for three years—these two suggestions are the essence of a broad plan for green hydrogen mooted, and submitted to the government, by the India Hydrogen Alliance (IH2A).
The Alliance is an influential body, comprising members from leading industry houses, such as Reliance and JSW.
It’s plan, submitted today to NITI Aayog, the government’s think-tank, calls it “25/25 Green Hydrogen Hub Development Plan”, because it aims for India to build 25 green hydrogen projects by 2025, supported by 150 MW of installed electrolyser capacity.
The plan also calls upon the government to set up a National Green Hydrogen Development Corporation, on the lines of the Solar Energy Corporation of India, to facilitate development of the industry and handhold companies investing in hydrogen.
The five National Green Hydrogen Hubs in Gujarat, Karnataka, Maharashtra, Kerala and Andhra Pradesh; clustering the 25 Green Hydrogen projects, where multi-sectoral demand for green hydrogen can be produced and used, without building expensive new infrastructure in next three years.
This includes:
a) Ankleshwar-Vadodara in Gujarat as National Green Chemicals and AmmoniaFertilizer Hub with 40 MW electrolyser plant, producing 8000 tonnes Green H2 per annum for chemical and fertilizer units; to reduce 8 Mmt of CO2 in the hub within a decade.
b) Bellary-Nellore (Karnataka-Andhra Pradesh) as National Green Steel and Chemicals Corridor with 30 MW electrolyser plant, producing 5000 tonnes Green H2 per annum for steel and chemical plants in the corridor, to reduce 5 Mmt of CO2 within a decade.
c) Pune-Mumbai (Maharashtra) as National Green Steel and Transport Hub with 30 MW electrolyser capacity plant, producing 5000 tonnes Green H2 per annum, to reduce 5 Mmt of CO2 within a decade.
d) Kochi (Kerala) as National Green Refinery and Transport Hub with a 30 MW electrolyser capacity plant, producing 5000 tonnes Green H2 per annum, to reduce 5 Mmt of CO2 within a decade.
e) Vishakhapatnam (Andhra Pradesh) as National Green Refinery and Transport Hub with a 20 MW electrolyser plant, producing 4000 tonnes Green H2/ annum, to reduce 4 Mmt of CO2 within a decade.
Public finance support of USD 360 million over next three years from Government of India for capital expenditure on electrolysers, balance-of-plant (BoP) equipment; and a green hydrogen price support of USD 2 per kg of H2 in first-generation green hydrogen projects. Public funding is important for inducing early-stage green hydrogen demand and supporting first-generation projects that create public project development experience which can be applied to the next generation of scaled-up projects, after 2025.
Formation of Green Hydrogen Project Development Consortia by Industry Champions, in partnership with
State Governments and preparation of State Green Hydrogen Policies to create the Green Hydrogen Hubs.
Speaking on the 25/25 National Green Hydrogen Hub Development Plan, Jill Evanko, Chief Executive and President, Chart Industries and founding member, IH2A, said, “This is a blueprint of how the green hydrogen economy can be developed over the next three years in India. The estimated USD 360 mn public finance support in project development will help India quickly commercialize green hydrogen projects at scale in the region. Government support for hydrogen project development contributes to further investment from both global green climate investors and the private sector.”
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