India Hydrogen Alliance (IH2A) has submitted to the government a funding plan for five renewable hydrogen hubs worth a combined $5 billion.
IH2A, which counts Chart Industries Inc. (Ball Ground, Georgia), Reliance Industries (Mumbai) and JSW Group (Mumbai) as members, is seeking private-public partnerships to progress the hubs.
“The plan seeks public finance support for green hydrogen production and offtake to create the necessary infrastructure in the initial 2024-2030 period,” said IH2A.
As a reference project, IH2A has proposed a Green Kochi Hydrogen Hub (GKH2) in Kerala State, as a 50/50 public-private special-purpose vehicle with a 150 megawatt (MW) electrolyzer, as well as storage and transit infrastructure and renewable energy link ups.
The Kochi hub would incorporate renewable ammonia plants and likely offtake agreements with industrial and mobility users, with a $468 million capital expenditure outlay over a 20-year period.
IH2A said it recommended similar large-scale renewable hydrogen hubs to be developed in Gujarat, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh. It has submitted proposals to the respective state governments in this regard.
“The model is replicable and demonstrates that a financially viable green hydrogen can be designed and built,” IH2A it said. “The model can be supported with techno-commercial studies and should accelerate project development.”
Price
Large-scale hubs will be commercially viable with offtake prices between $6 per kg and $4.25 per kg during 2024–30 at offtake point, as per preliminary estimates, IH2A said.
“Hydrogen Hub production, storage and evacuation infrastructure development will require government participation as equity partner, inducing demand by enabling guaranteed offtake for early defined volume, and incentives for infra development over [the] first seven years [2024–30],” it said.
The government is to issue guidelines for renewable hydrogen producers and tenders for electrolyzer manufacturers to help disburse a $2.4 billion subsidy, government officials have said.
The country’s National Green Hydrogen Mission, released in January, announced the funding support for renewable hydrogen, with a goal of delivering 5 million metric tons per year of green hydrogen by 2030 and capturing a 10% share of the global renewable hydrogen trade.
IH2A would join the ranks of Adani Group (Ahmedabad) and Reliance that have announced plans for large-scale hydrogen projects with backward and forward linkages.
Reliance Industries, a partner in IH2A, said it was investing $10 billion over three years in the production of renewable energy and related businesses in 2021, projecting a cost of $2 per kg or less for renewable hydrogen within this decade.
SOURCE: Platts Live
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
