By May, India will invite bids for subsidies for setting up green-hydrogen manufacturing, utilisation hubs, fertiliser and steel plants based on the fuel, and factories for making electrolysers. This is according to Reuters.
This bidding process is part of a phase I of a $2 billion incentive plan that was announced last week to increase green hydrogen use to reduce emissions and make India a major exporter of the fuel.
Green hydrogen is hydrogen produced from renewable energy. It will be used in fertilizer and steel production instead of hydrogen made from fossil fuels. The plan also aims to blend it into urban gas supply gas, and promote its use in transport.
Reuters sent a query to the Ministry of New and Renewable Energy (MNRE), but they did not respond.
Reliance Group, Adani Group and other large companies could be interested in setting up electrolyser factories or hubs for producing and using green hydrogen. These big companies have already committed billions to green-hydrogen activities.
Two government sources who declined to be identified told Reuters that the government will invite competitive bids within three to four months to establish two green hydrogen hubs.
It will also solicit bids to set up two fertiliser plant using green hydrogen and ammonia, which is ammonia that has been made with green hydrogen.
Both sources stated that the government plans to award contracts within one year.
While other countries are also working in this area, the high cost of hydrogen storage and transport and making electrolysers is a key issue that must be addressed.
The National Green Hydrogen Mission is a plan that aims to replace all imported ammonia-based fertilizers with domestic fertilisers made from green ammonia. It will be completed by 2034-35.
India should produce 5 million tonnes of green hydrogen per year by 2030, according to the government.
