POLICY & MARKET DEVELOPMENTS
- 100% RE efficient inland waterways ports in 5 years: The Ministry of Ports, shipping and Waterways (MoPSW), under its guidelines for undertaking green hydrogen pilot projects in the shipping sector, has panned to make 100 per cent renewable energy efficient ports within a period of about five years. The government has identified three ports in Kandla, Tuticorin and Paradip, to be pilots in green hydrogen production. The objective of MoPSW is to use renewable energy for coastal and river inland waterways and build green hydrogen storage and bunkering facilities by 2047. Link
- Govt allocates USD 532M for electrolyser production: For implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme Component I, the Ministry of New & Renewable Energy (MNRE) has allocated incentives for electrolyser manufacturing tranche-II under the National Green Hydrogen Mission (NGHM), which has an outlay of USD 532 million, effective from the fiscal year 2025-26 to 2029-30. The incentive initiative will be executed by the Solar Energy Corporation of India (SECI) as the nodal agency and MNRE through SECI, will invite bids for competitive selection. Link
- MNRE to initiate pilot projects on GH2 mobility for commercial vehicles: The MNRE has issued scheme guidelines for pilot projects under which Ministry of Road Transport & Highways (MoRTH) and scheme implementing agencies shall initiate 24-months pilot projects to test hydrogen-powered vehicles across five Indian routes with a mileage of 60,000KM. The nodal ministry has requested for proposals to run long-haul hydrogen powered vehicles on the selected routes, designated as Hydrogen Highways. Link
- Carbon credit trading platform by 2025: Promoted by NSE and NCDEX, Power Exchange India Ltd (PXIL) plans to launch its own carbon-credit trading platform in second quarter of 2025. As per PXIL’s chief executive, as the regulations for such platforms are likely to be rolled out by the second quarter, the exchange would be ready by then with its technology and also complete its educational workshops for industry participants across sectors to get them on board, for higher penetration. Link
- Govt. revises list of electrolyser subsidy winners: Following the exit of steelmaker Jindal Group in February 2024, from the first auction for the electrolyser manufacturing subsidies, the government has revised its list of winners from the auction. The production linked incentives (PLI) have been re-allocated to Larsen & Toubro and Matrix Gas & Renewables. Additionally, the Centre has also selected Reliance Industries Ltd (RIL) and Adani Enterprises. Link
- UP approves green hydrogen policy: To ramp up investments in green hydrogen production, Uttar Pradesh government has brought out it’s state policy with an ambitious goal to produce 1 million metric tonne of green hydrogen annually within next 4 years by 2028. Industries would receive subsidies and incentives totalling USD 607 million within the time frame of the policy. The state has also approved proposal for setting up two units of 800 MW in Sonbhadra district in collaboration with NTPC at USD 1 million. Link
- Haryana proposes draft green hydrogen policy: The New and Renewable energy department of Haryana has introduced the draft of the Haryana ‘Green Hydrogen Policy 2024', which offers 100% exemptions on several taxes and charges and shall support infrastructure development for the clean energy's generation, storage, and transmission. The policy also envisions green hydrogen production target of 250 kilotons per annum by 2030, coupled with a 2GW electrolyser manufacturing Link
- Gujarat plans green hydrogen policy for PNG blending projects: In its efforts to produce 60% of India's green hydrogen by 2030, with a target of 3 MMPTA, Gujarat Government shall soon finalise its Green Hydrogen policy with a focus on electrolyser production, supporting MSMEs and Piped Natural Gas (PNG) blending projects. Link
- IOCL relaunches green hydrogen tender: Indian Oil Corporation Ltd (IOCL) has re-launched a controversial green hydrogen tender with re-worded clauses, which was cancelled in March after Independent Green Hydrogen Producers Association (IGHPA) took it to court alleging bias and conflict of interest. IGHPA’s had complained about the inclusion of a clause that would have allowed GH4India — a joint venture between IOCL, Larsen and Toubro and ReNew, the first right of refusal on the project, which was discriminatory in nature. Link
- Kochi Water Metro submits proposal for green hydrogen-powered ferry: Kerala's Kochi Water Metro has been exploring hydrogen fuel cell technology to prioritise sustainability of vessels and exploration of hydrogen fuel cell in transport. Trials for boat parking at Fort Kochi have been completed, with further testing planned and the operations targeting tourists are expected to start in April 2024, aiming to run three boats on the benchmarked route. Link
- India to develop indigenous hydrogen based DRI tech for green-steel making: As part of the Make-in-India campaign, India is developing its homegrown technology for making pure hydrogen-based direct reduction of iron (DRI) for producing green steel. A pilot plant has been proposed in consortium mode, involving integrated steel players, secondary players and CSIR lab, basis approval of MNRE and Ministry of Steel. Link
- ACME secures offtake contract with Yara: ACME Cleantech has secured a long-term offtake contract with Norway’s Yara for the supply of 100,000 tonnes per annum of green ammonia. One of the largest deals will produce ammonia at its Oman project, which is expected to commence in 2027 and aims to have a total capacity of 900,000 tons per year once fully operational. Yara will act as a key customer for this project. Link
- Tata Cummins new facility for hydrogen-based engines: Tata Cummins Private Limited (TCPL), joint venture between Tata Motors Limited and Cummins Inc, USA has launched a new facility in Jamshedpur, Jharkhand to produce hydrogen-based internal combustion engines for medium and heavy commercial vehicles. Link
- EU approves USD974m for green hydrogen and biofuels production: The European Commission has cleared USD974Mn scheme by French government to support the production of renewable hydrogen-and biomass-based fuels for industry and transport. The French government through subsidies plans to allocate direct grants to cover a portion of investment costs related with producing these fuels by end 2025. Link
- US grants USD750 million for hydrogen projects across 24 states: The US Department of Energy will be investing USD750 million in 52 clean hydrogen projects across 24 states. The projects are working on six aspects of the hydrogen industry, including research and development on production of electrolysers, securing supply chains for the machines and recycling critical materials used in hydrogen production, such as iridium. Link
- US DoE announces USD1 billion for cleaner steel: The global steel industry is responsible for 11% of global climate pollution due to its reliance on coal and to work towards cleaner energy, the US Department of Energy's Office has announced USD1 bn investments in direct-reduced iron (DRI) furnaces plant. The plant is being developed by Swedish steelmaker SSAB, a pioneering green steel leader and will be the first commercial-scale facility using HYBRIT technology with green hydrogen. Link
- Germany launches first auction for decarbonization subsidy scheme: Germany's subsidy scheme, supported by its Economic Ministry shall offer significant funding to transition industries like steel, paper and cement to greener production methods. The support would be given through two-way carbon contracts for difference (CCfDs), which compensate companies for the additional costs of switching to climate-neutral production procedures. Link
- Canada and Germany partner to create hydrogen trade market: Germany and Canada will each fund USD217 Mn in bilateral hydrogen auctions, which will fall under a platform called H2Global. The aim behind H2Global is to buy quantities of hydrogen and resell them at a lower price to European buyers via auctions. Both countries plan to start supply and demand side auctions by the end of 2024, per their agreement. Link
- Japan to announce next-generation passenger plane using hydrogen fuel: As per a decision taken by Japan’s government committee for aircraft industry, a public-private project, which could use hydrogen fuel in a bid to cut emissions could be soon announced. The government plans to develop a next-generation plane jet, which will cost USD33 Bn and be ready by 2035. Link