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India H2 Monitor – December 2023

Submission & Reports
January 10, 2024
  • IH2A Member Expansion: India H2 Alliance announced membership expansion with seven new industry members Torrent Power, Synergen Projects, Godawari Power and Ispat, Technip Energies, HSBC Bank, Bureau Veritas and Newtrace. Link

POLICY & MARKET DEVELOPMENTS

  • India announces bidders for country's first GH2 manufacturing subsidies: Fourteen companies, including Acme Cleantech, Avaada GreenH2, Bharat Petroleum Corp, CESC, Greenko ZeroC, JSW Energy, Reliance Industries, Sembcorp Green Hydrogen, and Torrent Power, have submitted bids for incentives under India’s Green Hydrogen Mission. These H2 subsidies will only last for three years, capped at 50 rupees per kilogram ($0.60/kg) from the first year of production, 40 rupees the second, and 30 rupees in the third. Link
  • Gujarat signs MoUs for adding clean energy capacity: Gujarat has signed Memorandums of Understanding with several international companies, including MeOH Giga Battery, Australian Premium Solar Pty Limited, Welspun, and Kiri Industries, to boost its renewable energy capacity. The Gujarat government has unveiled a land allocation plan that offers benefits to companies. According to the policy, companies must reach 50% of their green hydrogen production capacity within five years of plant commissioning, and 100% of their capacity within eight years. Link
  • Indian oil plans $10bn spend on green hydrogen and ammonia projects by 2035: ONGC, India’s largest state-owned oil & gas company, plans to invest 800bn-850bn rupees ($9.6bn-10.2bn) to develop an annual production capacity of two million tonnes of green ammonia by 2035. This will be achieved through two projects, each with a capacity of one million tonnes per year, primarily in collaboration with other companies. Link
  • Govt plans long-term exemption for GH2 projects: The Ministry of New and Renewable Energy has proposed an exemption for green hydrogen developers from adhering to its list of authorised manufacturers to enable them to import solar PV modules and wind turbine models from China. Additionally, in a meeting with green hydrogen developers, MNRE also proposed an exemption on duties and taxes up till 2035 on equipment imports for setting up export-oriented green hydrogen projects. Link
  • Sembcorp inks deal with Japanese firms to export green ammonia from India: Sembcorp Industries, a Singaporean company, announced that its green hydrogen unit, Sembcorp Green Hydrogen Pte, has partnered with two Japanese companies, Sojitz Corp and Kyushu Electric Power. The partnership aims to supply green ammonia produced in India to Japan. The initiative is supported by Temasek Holdings, a state-owned investor. Link
  • Green hydrogen policy draft ready for Punjab: Punjab Energy Development Authority has drafted green hydrogen policy which is aimed to make the state green hydrogen/ammonia producer with a production capacity of 100 kilo tonnes per annum by 2030, besides developing innovative manufacturing capacities of producing hydrogen such as biomass gasification, steam methane reforming, electrolysis of waste water and hydrogen fuel blending. Link 
  • Keppel, India's AM Green eye sustainable fuel output: Singaporean company Keppel and Indian firm AM Green, a subsidiary of Greenko, have signed an initial agreement to jointly explore the production of biogenic carbon-based sustainable fuels such as bio-methanol, green methanol, second-generation ethanol, and sustainable aviation fuel (SAF). The companies aim to harness at least 1 million tonnes of biogenic CO2 to produce these sustainable fuels at AM Green’s plants. They will also cooperate on a bio-methanol project in India with a production goal of 500,000 tonnes per year. Link
  • Essar to develop 1 GW green hydrogen project in Gujarat: Essar Group will develop a 1 GW green hydrogen project in Gujarat with an estimated investment of USD 3.6 billion.  In February, the Essar Group had formed Essar Energy Transition (EET) with a focus on hydrogen, decarbonization, new energy infrastructure, and biofuels. EET plans to invest a total of $3.6 billion in developing a range of low-carbon energy transition projects over the next five years, of which $2.4 billion will be invested across its site at Stanlow in the UK and $1.2 billion in India. Link 
  • IOCL green H2 tender in legal mess, gets one bid: The tender to set up the first green hydrogen plant of Indian Oil Corp. Ltd (IOCL) received one bid till 29 November deadline. The bid came from GH4India Pvt. Ltd, which is IOCL’s own joint venture (JV) with infrastructure and engineering major Larsen & Toubro (L&T) and renewable energy company Renew. The tender has got into a legal mess with an industry body, petitioned the Delhi high court against the tender, alleging bias towards IOCL’s JV in the tender clauses, particularly aggrieved by the right to first refusal clause. Link
  • EIB eyes GH2 to add to India renewables push: The European Investment Bank is interested in investing in green hydrogen projects in India as part of the country's renewable energy push. The bank is currently waiting for proposals from Indian companies before making any investment decisions. The EIB has already invested €1 billion in renewable energy projects (largely in solar and wind) in India, and it is looking to expand its presence in the country through green hydrogen projects. Link

GLOBAL DEVELOPMENTS

  • Long-Awaited US Clean Hydrogen Project Tax Credit Rules Proposed: The U.S. Treasury Department has proposed rules for U.S. hydrogen project developers to gain maximum federal tax credits for building facilities that meet standards for low-carbon emissions and wage requirements. However, finalizing the incentive will involve resolving disputed views related to how projects source clean fuel and track/report their carbon emissions. To qualify for the 45V production credit under the 2022 Inflation Reduction Act, clean hydrogen projects must limit emissions to 4 kg of CO2 equivalent per kilogram of hydrogen, which is less than half of the 9 kg of CO2 typically generated today. The proposal is currently open for comments but there is no clear timeline for when it will be finalized. Link
  • China's SPIC plans $5.9 bln investment turning green hydrogen into fuel: China’s State Power Investment Corp has announced a $5.85 billion investment plan to produce fuel from wind power-generated hydrogen in northeast China. The projects include a 3.5-gigawatt wind power plant and a hydrogen-making facility. A pilot plant will initially be built to produce sustainable aviation fuel (SAF) from wind power-based hydrogen, with plans to expand production to 400,000 tons annually by around 2030 if successful. The first fuel from the SAF plant is expected in late 2025. Link
  • In Africa’s Hydrogen Race, TAQA Morocco to Develop $27B Green Hydrogen Plant: AQA Morocco, which is majority owned by the Abu Dhabi National Energy Company, has announced plans to invest $27.2 billion in a green hydrogen project. This project is in the Dakhla-Oued El-Dahab region of Morocco. The project is expected to generate 6,000 MW of renewable energy, which will be used to produce and export green hydrogen. This initiative signifies a significant step towards sustainable energy production and exportation. Link