Jaideep Saraswat, Nikhil Mall, Tushar Katiyar
Time seems to be in a constant sprint, doesn’t it? It feels like just yesterday we were buzzing with excitement over some groundbreaking announcements on hydrogen. Now, almost a year later, here we are, eager to assess the strides we’ve made since the release of the National Green Hydrogen Mission (NGHM) document by the Ministry of New and Renewable Energy (MNRE) in January 2023[1]. The progress we’ve witnessed over the past year is nothing short of commendable, underscoring India’s unwavering commitment to becoming the global hub for green hydrogen.
As we delve into the specifics, it’s evident that substantial headway has been achieved across various interventions outlined in the mission document. The strides made signal India’s resolute dedication to establishing itself as a frontrunner in the green hydrogen landscape. Join us as we take a comprehensive look at the noteworthy accomplishments that have transpired over the past year:
The NGHM sets an ambitious target for an annual production of 5 MMT of green hydrogen by 2030. In the course of 2023, numerous existing and new players in the green hydrogen sector, both from India and overseas, made various project commitments[2] related to green hydrogen production and electrolyser manufacturing. This has set the nation on a promising trajectory to achieve its ambitious targets.
Furthermore, the trade dynamics of green hydrogen, being a manufactured fuel, will vary substantially from the existing fossil fuel trade. India stands to gain from having one of the world’s lowest costs of renewable electricity and is strategically positioning itself to export green hydrogen to nations with limited renewable energy resources or land constraints. The Government of India has showcased its commitment, as outlined in the NGHM document, to scaling up the target to 10 MMT per annum by 2030, particularly with the expansion of export markets. Ongoing discussions between India and regions such as Europe[3] and Singapore[4] highlight the country’s efforts to export green hydrogen, catering to the growing demand in these areas. This not only aligns with India’s energy goals but also positions it as a key player in the evolving global green hydrogen trade landscape.
Upon thorough examination of the strategies and interventions outlined in the mission, progress can be monitored within three primary categories: Demand-side interventions, Supply-side interventions, and emphasis on Research and Development (R&D) and innovation.
Regarding the demand side, NGHM adopts a phased strategy, commencing with the initial phase spanning from 2022-23 to 2025-26. This phase strategically targets the creation of demand in key sectors such as fertilisers, refineries, and city gas distribution. Notably, state-owned Oil Marketing Companies (OMCs) have embarked on green hydrogen projects[5] for their respective refineries.
Also, a number of industry players have stepped forward to explore the integration of hydrogen into city gas distribution networks. Pioneering initiatives, including those by Gas Authority of India Limited[6] (GAIL), Adani Total Gas Limited[7], Torrent Gas[8], and others, are piloting the blending of hydrogen in these networks.
This phase also emphasises on hard-to-abate sectors like steel production and long-haul transportation. The Ministry of Steel has proactively sought R&D proposals for the establishment of green hydrogen pilot plants, specifically aimed at producing and utilizing green hydrogen in the iron and steel manufacturing processes[9]. On the transportation side, in a bid to mainstream hydrogen vehicles, the Ministry of Road Transport and Highways (MoRTH) has unveiled the draft of AIS 195[10]. This initiative is designed to establish safety and procedural requirements for the type approval of hydrogen-powered vehicles.
Concerning the supply side, the Ministry of Power (MoP) released a policy[11] in February 2022, offering various incentives for the provision of Renewable Energy (RE) to green hydrogen plants. These included the waiving of Inter-State Transmission System (ISTS) charges, the provision of banking facilities for a 30-day period, and a commitment to prioritise open access for RE sourcing within 15 days of receiving an application, among other measures. However, in April 2023, MNRE issued an Office Memorandum, extending the waiver of ISTS charges for RE utilised in green hydrogen and its derivatives. This extension applies to projects commissioned up to December 31, 2030 from 30th June, 2025[12].
NGHM also outlines the Strategic Interventions for Green Hydrogen Transition (SIGHT) Program. With a comprehensive budget of INR 17,490 crores, this program is crafted to provide financial incentives for two pivotal components: electrolyser manufacturing[13] (component-1) and green hydrogen production[14] (component-2). The allocated budget for component-1 is approximately INR 4,440 crore, while component-2 is allotted INR 13,050 crore. Guidelines for both components were unveiled in June 2023, followed by the release of tender for the first tranche by the Solar Energy Corporation of India (SECI) in July 2023[15].
In the initial tranche of Component-I, the tender sought to procure approximately 1.5 GW of electrolyser manufacturing capacity. Bucket-1 was dedicated to any stack technology, with a set capacity of 1.2 GW, while Bucket-2 focused on domestically developed stack technology. Both buckets were oversubscribed[16], and the results reveal that major players such as Reliance, John Cockeril-Greenko, and Jindal secured the highest allotment of 300 MW in Bucket-1, alongside other successful participants. Noteworthy winners in Bucket-2 include Homihydrogen and Adani New Industries.
On similar lines for component-II, the objective was to produce 410,000 metric tonnes per annum from the first bucket, which is technology-agnostic, and an additional 40,000 metric tonnes per annum for biomass-based pathways. The results of this tranche were revealed on January 2, with Reliance, Greenko, and ACME obtaining the maximum permitted bid capacity of 90,000 metric tonnes per annum each, alongside several other successful bidders[17].
Moreover, to streamline procedures for developers and manufacturers involved in green hydrogen space the National Single Window System[18] has been established. This system facilitates the seamless submission of applications, project sanctioning, approval processes, project monitoring, and more.
MNRE has also finalised the definition[19] of green hydrogen within the parameters of both the RE-based electrolysis route and the thermochemical or biochemical-based biomass route. Additionally, specific emissions criteria have been established to qualify the produced hydrogen as green. This emissions cap is set at 2 kg CO2 equivalent per kg of H2. It encompasses emissions associated with water treatment, electrolysis, gas purification, drying, and compression for the first route. For the second route, the criteria include emissions from biomass processing, heat/steam generation, conversion of biomass to hydrogen, gas purification, drying, and compression.
Finally, on innovation and R&D, the MNRE introduced the R&D roadmap[20] for the green hydrogen ecosystem in India in October 2023 to ensure India’s prominence in innovations related to green hydrogen. The roadmap aims to reduce the capital expenditure of electrolysers, enhance their efficiency, explore the integration of electrolysers with power systems, and pursue additional avenues for advancement in the field.
Clearly, the implementation of the NGHM has unfolded at a remarkable pace, showcasing India’s unwavering commitment to becoming a global leader in the green hydrogen landscape. The strides made in various sectors, from the successful tender results to the streamlined processes through the National Single Window System, signify a nation racing ahead in embracing sustainable energy solutions. While this brief overview captures some key achievements, it’s important to acknowledge that the mission’s impact extends across multiple facets, demonstrating a holistic effort to usher in a greener and more sustainable future for India and the world.
References:
[1] https://mnre.gov.in/national-green-hydrogen-mission/
[2] https://www.vasudha-foundation.org/capturing-a-decade-of-indias-clean-energy-journey/
[3] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1927680
[4] https://www.reuters.com/sustainability/climate-energy/india-talks-supply-10-mln-tonnes-green-hydrogen-eu-2023-07-05/
[5] https://mopng.gov.in/files/article/articlefiles/2023Q2.pdf
[6] https://pib.gov.in/Pressreleaseshare.aspx?PRID=1794428
[7] https://timesofindia.indiatimes.com/city/ahmedabad/adani-total-gas-launches-green-hydrogen-blending-project-in-ahmedabad/articleshow/105577544.cms
[8] https://www.thehindubusinessline.com/companies/torrent-gas-starts-blending-green-hydrogen-for-cgd-network/article67037915.ece
[9] https://steel.gov.in/sites/default/files/Letter%20R%26D%20Proposals%20Green%20Hydrogen%20Mission.pdf
[10] https://morth.nic.in/sites/default/files/ASI/15_Draft_AIS_195_DF.pdf
[11] https://powermin.gov.in/en/content/green-hydrogen-policy
[12] https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1928128
[13] https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2023/07/2023072664.pdf
[14] https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2023/07/2023072641.pdf
[15] https://www.seci.co.in/view/publish/tender/details?tenderid=53454349303030313131
[16] https://www.seci.co.in/whats-new?id=new
[17] https://www.mercomindia.com/greenko-acme-reliance-winners-secis-green-hydrogen-auction
[18] https://www.nsws.gov.in/portal/scheme/greenhydrogenpolicy
[19] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/aug/doc2023819241201.pdf
[20] https://mnre.gov.in/notice/rd-roadmap-released-by-mnre-on-the-eve-of-world-hydrogen-day/