48 green hydrogen projects have been announced in India, says top bureaucrat

 As many as 48 projects of green hydrogen / green ammonia have been publicly announced in India, according to Bhupinder Bhalla, Secretary, Ministry of New and Renewable Energy, Government of India. In India, a 'Secretary' is the top bureaucrat of the respective ministry.

“A lot of them are talking about green ammonia, which totals to production of around 3.5 million metric tonnes per annum of green hydrogen. There is a lot of traction from the industry, as far as green hydrogen opportunity is concerned," he said at a press conference on June 28, which was held to announce an international conference on green hydrogen in Delhi between July 5 and 7.

The Secretary said that the government is working with states on development of green hydrogen hubs. Explaining the concept, the Secretary said: “A Green Hydrogen Hub is an area where production and consumption occur in close proximity. If a particular green hydrogen production capacity is purely export-oriented, they would be largely near the ports and this is a call which the private sector is going to take. We are working with the Ministry of Shipping in order to explore setting up of green hydrogen hubs at major ports. Hubs will be selected for infrastructure support from the government based on parameters identified under the policy to be rolled out, but hubs in addition to what the government supports can also come up, based on initiatives by the industry.

International presence

The conference on green hydrogen will have significant internatonal presence. On July 6, will have two plenary lectures, one presenting a Japanese and another an Australian perspective on the role of green hydrogen. The technical sessions for the day would be on Pipeline Infra, and Compatibility; Hydrogen Economy - Logistics and Infrastructure; Codes, Standards and Regulations; Hydrogen Valleys/ Hubs / Clusters; Start-ups in Hydrogen; Hydrogen Strategies and Polices; Green Financing; Strengthening R&D Ecosystem. The day will close with a Panel Discussion on Carbon Emissions associated with Green Hydrogen Production.

The third and final day of the international conference, July 7, will feature a plenary lecture presenting a European perspective and a panel discussion among key industry stakeholders. The conference will conclude with the valedictory session.

Germany considering buying green hydrogen from India

 The Indian government has shared its concerns and suggestions with Germany over the European nation’s $985-million tender to import green hydrogen

BS Bhalla, Secretary, Ministry of New & Renewable Energy (MNRE), said the Ministry has taken up the issue with the Ministry of External Affairs (MEA).

“Domestic industry had some reservations with the German tender. We have taken this up with the MEA. Besides, India’s Ambassador to Germany is also following up the issue with the government there. I believe they are considering the suggestions we have made. The industry felt that some of the issues were slightly restrictive. We have pointed it out to Germany and they are looking at it,” he added.

Bhalla was speaking at a press conference organised by the MNRE and industry chambers CII on the upcoming international conference on green hydrogen being organised by India.

In December last year, Germany’s Federal Ministry for Economic Affairs and Climate Action launched the procurement procedure for the import of green hydrogen under the H2Global programme, reports businessline.

The H2Global auction process is the first global bidding procedure for the purchase of hydrogen and its derivatives. It will identify the world’s first market price for green hydrogen and its tradable derivatives.

Green hydrogen tender

In December 2021, Germany’s Federal Ministry for Economic Affairs and Climate Action approved a €900 million (around $985 million) funding instrument entitled H2Global. The idea is to purchase green hydrogen products cheaply on the world market and to sell them to the highest bidder in the EU, the businessline report says.

The rationale is that the exercise will support the global market ramp-up of green hydrogen, while hydrogen exporters gain security for their investment decisions through long-term purchase contracts, and the importers gain access to green derivatives. The large purchase contracts incentivise investment in renewable energy and the production of hydrogen-based ammonia, methanol and sustainable aviation fuel (SAF).

At present, three tenders for procuring ammonia, methanol and electricity-based SAF are in the evaluation stage under the programme.

The first deliveries of these sustainable hydrogen derivatives to Germany and Europe are expected by end-2024.

In the 2023 federal budget, the German Government plans to provide a further €3.5 billion (around $3.84 billion) for new auction rounds to cover periods up to 2036. 

Govt unveils guidelines for green hydrogen production, electrolyser manufacturing

 The Ministry of New & Renewable Energy (MNRE) has announced guidelines under the National Green Hydrogen Mission for manufacturing electrolysers and production of green hydrogen, reports businessline.

Earlier this year, MNRE launched the National Green Hydrogen Mission, for implementing the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme that aims to establish electrolyser manufacturing base and green hydrogen producing facilities.

Under Component 1 of SIGHT, the MNRE has allocated ₹4,440 crore for manufacturing electrolysers for the period FY26 to FY30, while Component 2 deals with an allocation of ₹13,050 crore for producing green hydrogen from FY26 to FY30, the businessline report says.

Overall, under SIGHT, the total financial incentive is ₹17,490 crore and the two components have been launched with the aim of enabling rapid scale-up, technology development and cost reduction.

State-run Solar Energy Corporation of India (SECI) is the implementing agency.

Manufacturing electrolysers

Under Component 1, the government support is offered for manufacturing electrolysers in terms of ₹ per kilowatt (kw) corresponding to the manufacturing capacity.

The base incentive will start at ₹4,440 per kw in the first year, which will gradually decline on an annual basis. The incentives will be provided for five years from the date of commencement of the manufacturing facility.

Also read: The roadmap to green hydrogen remains unclear

Another feature in the scheme is to indigenise the electrolyser value chain. The incentives come attached with a condition for the bidder to demonstrate a certain minimum local value addition (LVA) every year. The minimum LVA for both alkaline and proton exchange membrane/ solid oxide/ Anion exchange membrane electrolysers has been specified.

The capacity targeted in the first tranche under this component is 1,500 megawatts (MW).

Producing green hydrogen

A major portion of the financial incentive has been devoted to establishing a robust domestic green hydrogen manufacturing infrastructure in the country.

The MNRE has identified two modes for producing the sustainable fuel. Under Mode 1, interested parties can bid on the least incentive demanded over a three-year period through a competitive bidding mechanism.

Under Mode 2, the SECI will aggregate demand and then call for bids for procuring green hydrogen and its derivatives at the lowest cost through a competitive bidding system.

Under the scheme, a direct incentive in terms of Rs per kg of green hydrogen production will be provided for 3 years from the date of starting the production facility.

The incentives will be capped at ₹50 per kg in the first year of production and thereafter it will reduce to ₹40 per kg and ₹30 per kg in the second and third year, respectively.

The total capacity targetted is 4.5 lakh tonnes per annum (LTPA), which is divided into two pathways. Under the first pathway, which is technology agnostic, the target is to have a capacity of 4.10 LTPA, while the second pathway is for biomass based production to achieve a capacity of 40,000 tonnes per annum.

The maximum capacity that can be allotted to a bidder is 90,000 tonnes per annum, while the minimum bid capacity is 10,000 tonnes per annum.