HIGHLIGHTS
- On June 30, India Hydrogen Alliance (IH2A) submitted the proposal titled ‘25/25 National Green Hydrogen Hub Development Plan’ for creation of 25 National Green Hydrogen Projects and Five National H2 Hubs by 2025 to NITI Aayog and Ministry of New and Renewable Energy, Government of India. The plan seeks to develop first-generation green hydrogen projects, with public finance support of USD 360 million over next three years; create a National Hydrogen Development Corporation and public-private hydrogen taskforce. IH2A also conducted a media briefing to announce the proposal and address queries. Press Release, Detailed Plan, ET, HT
POLICY DEVELOPMENTS
- Hydrogen demand in India expected to increase fourfold: NITI Aayog: Hydrogen demand in India is expected to increase fourfold by 2050 and the steel industry and heavy-duty transportation will drive 52% of it, according to a NITI Aayog and Rocky Mountain Institute (RMI) report. India has a distinct advantage in low-cost renewable energy generation, and it makes the country one of the most competitive producers of green hydrogen in the world, the report added. The report underlined the significance of focusing on domestic demand creation, cost reduction pathways, and early pilots. Link
- India needs 115 GW RE generation capacity to meet GH2 target: Report: India will need 115 GW of renewable power generation capacity and 50 billion litres of demineralised water supply to achieve the goal of five million tonnes of green hydrogen by 2030, as per the EY India-SED Fund report. In this decade, industrial feedstock-based applications will drive the demand for green hydrogen, said the report. Price parity between green and grey hydrogen production will determine the speed and scale of transition, said the report titled 'Accelerating Green Hydrogen Economy'. Link
- Quad eyes India as manufacturing hub for green hydrogen: The Quad group of countries is exploring avenues to establish a base for manufacturing, distribution and storage of green hydrogen in India. The development is being viewed as a measure to develop a clean energy market that is outside the influence of China, which already controls a sizeable share of the solar and electric vehicle (EV) manufacturing and supply chains. During its first in-person Quad summit last year, a clean hydrogen partnership for creating a robust and economical value chain had been discussed. Link
- Govt discusses future export of hydrogen with Japan, Germany: The government has held discussions with a number of countries, including Japan and Germany, for future exports of hydrogen from India, as the country is aiming to produce 20 million tonne (MT) of green hydrogen by 2030. With Germany, India has signed a joint declaration of intent on Indo- German hydrogen task force to strengthen cooperation in production, utilisation, storage and distribution of green hydrogen through building enabling frameworks for projects, regulations and standards, trade and joint research and development projects. Link
- Green Open Access Rules 2022: The government has notified the Green Open Access Rules 2022 to further accelerate India's renewable energy programmes. These rules are notified for promoting generation, purchase and consumption of green energy including through waste-to-energy plants. As per the rules, the green open access is allowed to any consumer and the limit of open access transaction has been reduced from 1 MW (megawatt) to 100 kW for green energy to enable small consumers also to purchase renewable power through open access. Link
- Govt has earmarked refining, fertiliser segments for green hydrogen consumption obligation: The government is planning to begin green hydrogen consumption obligation to kickstart the green hydrogen demand for which it has earmarked the refining and fertiliser segments. In the run up to this mandate, all the refineries in the Country have to prepare themselves to convert at least a part for their grey hydrogen to green. Link
- India has scope to produce hydrogen from domestic coal: Expert panel: An expert panel constituted by the government has suggested that India has enough potential to produce hydrogen from domestic coal and the country should strongly pursue this option. The panel also suggested for setting up of a couple of semi-commercial gasification units to convert coal to hydrogen. The integration of Carbon Capture Utilisation and Storage (CCUS) units along with gasification, it said, can be explored so that blue hydrogen thus produced is more acceptable. Link
- ACME Group to develop green hydrogen project in Karnataka: India-based renewable energy company ACME Group has signed an MoU to invest around $6.7bn to build a green hydrogen and green ammonia project in the Indian state of Karnataka. Under the terms agreed, ACME Group will establish a green hydrogen and ammonia plant, with an annual capacity of 1.2 million tonnes, in the state. The plant will also have an attached solar power unit. The facility is expected to be built over the next five years and create more than 2,000 jobs once operational. Link
- Total, Adani Team Up for Multi-Billion Indian Hydrogen Plans: French oil giant TotalEnergies SE and Indian billionaire Gautam Adani’s conglomerate have partnered to fund billions of dollars’ worth of green hydrogen development in India as the world’s third-largest polluter seeks to decarbonize. As part of the deal, TotalEnergies will buy a 25% stake in Adani New Industries Ltd. for an undisclosed sum. Adani New Industries is a closely held company of Adani Enterprises, the flagship firm for the coal-to-ports conglomerate. Link
GLOBAL DEVELOPMENTS
- Equinor needs £16 million govt. funding for second UK hydrogen project: Equinor has submitted a bid for £16 million in funding from the UK government under its Net Zero Hydrogen Fund, to start its second fossil fuel plus carbon capture feedstock hydrogen production facility in the Humber region on the east coast of England. The Hydrogen to Humber Production 2 project expects a final investment decision in 2025 and to be operational beginning by 2028. Link
- Finland to construct three hydrogen valleys as part of a hydrogen transmission network: Finland’s state-owned Gasgrid has announced plans to construct a hydrogen transmission network to increase long-term energy security by reducing reliance on Russian natural gas and to help reduce emissions. The network will include three hydrogen valleys with two on the western coast near current power infrastructure and one in south-eastern Finland. Notably, Gasgrid will not produce hydrogen and instead will leave it to private companies, creating an opportunity for hydrogen production companies. Link
- Uruguay launches green hydrogen plan for 20 gigawatts of renewables: With an aim to change the production profile of the country in a positive way, Uruguay launched its green hydrogen roadmap to install 20GW of renewables as well as 10GW of electrolysers by 2040. The ministry of industry, energy and mining (MIEM) eyes for the country’s green hydrogen industry to have a turnover of more than US$2.1 billion by 2040, coming mainly from the export of hydrogen and green fuels. Moreover, it is expected that the production cost of green hydrogen in the country will drop to US$1.2-1.4/kg by 2030, positioning it near prices of other important green hydrogen markets like Spain, Australia and Algeria. Link
- Netherlands to build 10 GW national network for green hydrogen: The Netherlands is planning a $1.6 billion green hydrogen network that will consist of 85% recycled natural gas pipes. It is expected to go online in 2027. Gasunie, a state-owned natural gas infrastructure specialist in the Netherlands, announced its plans to build a national network that will link up “carbon-free” hydrogen supply and demand. The network will have an initial capacity of 10 GW and will consist of 85% recycled natural gas pipes, supplemented by new pipes. Link
- Siemens, Air Liquide enter a JV to build industrial-scale electrolysers in Europe: In the latest attempt to find a way to drive “renewable” or “green” hydrogen production costs down and make the sector competitive, Siemens Energyand Air Liquide announced plans to set up a joint venture focused on the production of “industrial scale renewable hydrogen electrolyzers in Europe.” The establishment of the joint venture — Siemens Energy will have a 74.9% stake, while Air Liquide will hold 25.1% — is subject to approval from authorities. The European Union’s executive arm, the European Commission, has previously said it wants 40 GW of renewable hydrogen electrolyzers to be installed in the EU in 2030. Link
- Egypt seeks to activate MoUs for green hydrogen production at COP27: The Egyptian government notified the companies that signed memoranda of understanding (MoUs) to establish hydrogen and green ammonia projects that they should complete their feasibility studies within five months, provided that a framework agreement would be signed on the sidelines of the upcoming climate summit in Sharm el-Sheikh. Companies began preparing technical, financial, and legal studies of their projects by hiring consultants to put an integrated plan before signing framework agreements in November. MoUs for hydrogen and green ammonia production have been signed with Maersk, Total, EDF, EMEA Power, Masdar, Demi Energy, Enara, and others. Link