India details green hydrogen plans
The Indian government today shed more light on its plans for scaling up domestic renewable hydrogen production and demand through its National Green Hydrogen Mission.
In a policy document, the government reiterated its goal to make India "the global hub for production, usage and export of green hydrogen and its derivatives". An initial outlay of 197.44 billion rupees ($2.39bn) for the mission was approved by the cabinet last week.
Much of the funding will be used to incentivise domestic hydrogen production and electrolyser manufacturing. In the document, New Delhi reiterated its intention to reach 5mn t/yr of green hydrogen production by 2030, and said the longer-term aim "with growth of export markets and international partnerships" is 10mn t/yr.
The document also outlines how demand for green hydrogen and its derivatives is to be scaled up across various sectors, with hard-to-abate industrial consumers a key focus.
The government plans to launch a tender process in the 2023-24 financial year for building four new fertiliser plants — two each for urea and DAP — that will use green ammonia. Construction is targeted for 2024-25, with a view to commencing production in the following year. By 2034-35, all "ammonia-based fertiliser imports" are to be replaced with domestically products manufactured using green ammonia.
In other sectors, such as steel, initial pilot projects are to "help identify operational issues and gaps in terms of current technology readiness, regulations, implementation methodologies, infrastructure and supply chains," the government said.
Blending into city gas-distribution networks is also a component of the mission's first phase, which runs until 2026. In this time the scale up of green hydrogen production and use should drive down costs, allowing for greater and wider deployment in the second phase that is scheduled to run until 2030. Then, the government will seek to make green hydrogen costs competitive with fossil-fuel alternatives for refineries and fertiliser production, and explore commercial-scale green hydrogen-based projects in the steel, mobility and shipping sectors.
New Delhi aims to set up green ammonia bunkering and refuelling facilities at least at one Indian port by 2025 and at all major ports by 2035. State-owned Shipping Corporation of India will have to retrofit at least two of its vessels to run on green hydrogen or derived products by 2027. State-owned oil and gas companies "will be required to charter at least one ship each to be powered by green hydrogen or derived fuels by 2027", and will subsequently need to add one such ship "for each year of the mission."
Hydrogen highways
Use of hydrogen for long-haul, heavy-duty vehicles is to be driven up through 'Hydrogen Highways', along which will be built green hydrogen production projects, distribution infrastructure and refuelling stations, the government said.
The policy document also mentions the possibility of mandating consumption for "designated consumers" in certain sectors through quotas — a step for which a bill was passed last year. It leaves open who these users are and at what level these minimum shares may be set.
Production sites are to be located as closely to demand centres as possible. New Delhi wants "a cluster-based production and utilisation model" with "green hydrogen hubs," to "enhance the viability of green hydrogen projects in the initial years."
The government also highlighted the importance of regulatory measures to encourage green hydrogen production and use, such as waiving interstate transmission charges for renewable energy used for green hydrogen production.
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