India H2 Monitor – December 2022

IH2A adds six new members: On Dec 19, Industry body India Hydrogen Alliance (IH2A) announced expansion of its membership with the inclusion of Hero Future Energies, bp, Welspun Corp Ltd., Tubacex, Climate Policy Initiative, and Climate Group. This takes IH2A’s membership base to fifteen, comprising seven industry members and eight partner organisations, all of whom work closely with the Government of India and state governments to help develop the hydrogen economy and supply chain in India. Link

 

POLICY & MARKET DEVELOPMENTS

 

  • Parliament passes Energy Conservation (Amendment) bill: A bill to mandate the use of non-fossil energy sources such as biomass, ethanol and green hydrogen and allow carbon credit trading in the country was passed by the Parliament. The bill provides for penalties for violations by industrial units or vessels, and on manufacturers if a vehicle fails to comply with fuel consumption norms. Link
  • Airbus looking to procure green hydrogen from India: European aircraft manufacturer Airbus is looking to source green hydrogen from India as well as Australia and Latin America. Reportedly, Airbus is working on developing a hydrogen-powered fuel cell engine for its ambitious zero-emission aircraft that will enter service by 2035. Airbus has also signed an agreement with HyPort to set up a low-carbon hydrogen production and distribution station at an airport in France. Link
  • India likely to have hydrogen-powered trains by Dec next year: Union Minister for Railways Ashwini Vaishnaw has informed that the country will roll out its first domestically designed and built hydrogen-powered train by December 2023. Reportedly, the hydrogen-powered train will be called Vande Metro and will be manufactured in large numbers with an objective to replace the trains built in the 1950s and 60s. Currently, most of the trains in India are powered by diesel or electricity. Link
  • India plans $2 bln incentive for green hydrogen industry: Reportedly, India is planning a $2 billion incentive programme for the green hydrogen industry, in a bid to cut emissions and become a major export player in the field. The 180-billion-rupee ($2.2 billion) incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years, said a senior government official and an industry manager working in renewable energy. It would do this in part by increasing the scale of the industry, they said. The Indian aid could be announced in the Feb. 1 budget for the fiscal year beginning April 1, said the government official. Link
  • Reliance, Ashok Leyland in talks for engines running on H2: Mukesh Ambani's Reliance Industries Ltd (RIL) is in advanced talks with Hinduja-owned truck and bus maker Ashok Leyland for the development and supply chain of hydrogen-powered engines. As a first step under the plan, Leyland will retrofit an existing fleet of 45,000 trucks, which RIL has contracted to ferry refined products and other marketing goods, with fuel-cell engines so that these vehicles can use green hydrogen instead of diesel. Reliance is planning to produce green hydrogen at its Jamnagar refinery facility from 2025. As technology evolves, it is looking to expand the supply of hydrogen to the larger automotive market, including for buses and cabs. Link
  • Kerala to become 100% renewable energy-based State by 2040: Kerala aspires to become a 100% renewable energy-based State by 2040 and net carbon neutral by 2050, Chief Minister Pinarayi Vijayan has said. The Chief Minister was inaugurating the India Climate and Development Partners’ Meet, hosted by the State government and the World Bank, and releasing the Kerala State Action Plan on Climate Change 2023-2030 (Kerala SAPCC 2.0). Kerala is the first State in India to include hydrogen-powered mobility in its zero emissions mobility policy. The government has constituted the Kerala Hydrogen Economy Mission to contribute strategic inputs and facilitate partnerships and collaborations towards transforming the State into a green hydrogen hub. Link
  • India can be a global leader in green hydrogen, says G20 Sherpa: India can transform and become the global leader, exporter, producer of electrolyzer and global champion of green hydrogen, but for that, multilateral institutions must also finance our entrepreneurs said India’s G20 Sherpa Amitabh Kant. Link

 

GLOBAL DEVELOPMENTS

  • Hydrogen pipeline between Spain and France to cost $2.6 bln: An underwater pipeline to carry green hydrogen between Spain and France will cost about 2.5 billion euros ($2.6 billion). The pipeline between Barcelona and Marseille will have a capacity of 2 million tonnes a year and be ready by the end of the decade, Sanchez, PM of Spain said. Link
  • Adani Partners with Cavendish Renewables to Develop Hydrogen Electrolysers Tech: Adani New Industries, the manufacturing and green hydrogen platform of the Adani Group, has signed a development and licensing agreement with Melbourne-based hydrogen technology company Cavendish Renewable Technology (CRT). The agreement includes infrastructure costs for intellectual property development, license fees, and royalties on the successful commercialization of CRT's electrolysers technologies. Adani is currently setting up a vertically integrated 5 GW electrolysers manufacturing plant in India. The electrolysers giga factory is crucial to Adani Group's plan to invest $70 billion by 2030 in green technologies and projects. Link
  • BP to explore potential for green hydrogen production in Egypt: BP has signed a memorandum of understanding (MoU) with the Government of Egypt under which it will explore the potential for establishing a new green hydrogen production facility in the country. Under the MoU, BP will carry out several studies to evaluate the technical and commercial feasibility of developing a multi-phase, large scale green hydrogen (gH2) export hub in Egypt. It is intended that high potential locations across Egypt will be considered as part of the feasibility study, targeting best-in-class resources. Link
  • Europe and Japan step up cooperation on hydrogen project: The Memorandum of Cooperation was signed in Tokyo by Commissioner for Energy Kadri Simsonand Japanese Minister of Economy, Trade and Industry, Yasutoshi Nishimura. As frontrunners in hydrogen technology, the EU and Japan will work together for sustainable and affordable production, trade, transport, storage, distribution, and use of renewable and low-carbon hydrogen. The cooperation will help to establish a rules-based and transparent global hydrogen market without distortions to trade and investment. Link
  • UK proposes ‘hydrogen ready’ boilers in homes from 2026: The UK government has proposed banning the installation of traditional gas boilers in homes from 2026 and replacing them with “hydrogen ready” heating systems. Replacing gas-fired boilers is a key part of the UK’s target to achieve net zero emissions by 2050 with the housing stock accounting for around a fifth of greenhouse gas emissions. Some academics, climate groups and electricity companies argue that hydrogen is expensive and question its suitability for domestic properties. They insist low carbon alternatives to gas boilers already exist in the form of electric heat pumps. Link
  • Spain's Cepsa to invest 3 bln euros in green hydrogen project: Spanish oil company Cepsa plans to invest 3 billion euros ($3.1 billion) in one of the largest green hydrogen projects in Europe. The project will produce 300,000 tons of hydrogen a year, which will be used to power the company's refineries as well as local heavy shipping and haulage. It will also be used to produce biofuel for the aviation industry. The project will consist of two electrolysers totalling 2 gigawatts (GW) in the port cities of Huelva and Algeciras, with the former due to be running in 2026 and the latter in 2027. The project will help Spain become an energy powerhouse with capacity to export to the rest of the world and guarantee Europe’s energy independence. Link
  • Air Products plans big green hydrogen plant in US: Air Products, the industrial gas maker is teaming up with the energy firm AES to build a $4 billion complex in Texas that it says will be the largest green hydrogen facility in the US. The venture will sell hydrogen to Air Products for distribution to the transportation market and for new industrial uses that Air Products declines to identify. Over its lifetime, the company says, the project will circumvent more than 50 million t of CO2emissions, which would be generated in conventional natural gas–based hydrogen production. Link
  • DOE Boosts Hydrogen Efforts With $750 Million in Funding: The U.S. Department of Energy announced it intends to issue $750 million in funds to dramatically lower the cost of hydrogen technologies for heavy-truck fuel cells as well as hydrogen delivery and storage. DOE has designated hydrogen produced with net-zero carbon emissions as “a key pillar in the emerging clean energy economy” that is essential to meet Biden’s goal of a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050. Link
  • German pipeline firms say they will 'make hydrogen happen' in 2025: Germany's Gascade, Ontras and terranets have agreed to convert high-pressure gas pipelines to transport low-carbon hydrogen from the Baltic Sea all the way the south of the country by 2025. The three pipeline companies are creating a 1,100 kilometre 683.5 miles north-south hydrogen corridor as European policymakers and industry embrace hydrogenas a way to reduce dependence on gas and meet climate goals provided it is produced using renewable energy. Link
  • Uniper working with UAE's Masdar on hydrogen project: German utility Uniper said it was involved in a project with the United Arab Emirates (UAE) clean energy company Masdar to produce green hydrogen. Masdar and Uniper will build a 1.3 gigawatt (GW) solar plant from which they expect to produce clean hydrogen via electrolysis from 2026. Link