India to seek bids to set up green hydrogen plants by May

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NEW DELHI: India will by May invite bids for subsidies for setting up green-hydrogen manufacturing and utilisation hubs, fertiliser and steel plants based on the fuel, and factories for making electrolysers, two government sources have told Reuters.

The bidding process is part of a first phase of a US$2bil (RM8.74bil) incentive plan announced last week to boost the use of green hydrogen to cut emissions and make India a major exporter in the field.

Green hydrogen is hydrogen made with renewable energy. The plan aims at using it in fertiliser and steel production in place of hydrogen made with fossil fuels, blending it into urban gas supply and promoting its use in transportation.

The New and Renewable Energy Ministry did not respond to a query sent by Reuters.

Establishing electrolyser factories and hubs for making and using green hydrogen could attract interest from big companies such as Reliance Group and Adani Group, which have already committed billions of dollars to green-hydrogen activities.

Electrolysers are devices for making hydrogen.

The government will call within three to four months for competitive bids for establishing two green hydrogen hubs, the sources said.

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In the same period, it will seek bids for setting up two fertiliser plants using green hydrogen and green ammonia – ammonia made with green hydrogen – they added.

It will subsidise the establishment of the activities proposed by the winning bidders, which will retain ownership.

The government intends to award contracts within a year, both sources said.

Other countries are working in this field, but high costs of transporting and storing hydrogen and making electrolysers are key issues that need to be resolved

The plan, called the National Green Hydrogen Mission, aims at substituting all ammonia-based fertiliser imports with domestic fertilisers using green ammonia by 2034-35.

The government wants India to produce five million tonnes of green hydrogen annually by 2030.

Similarly, steel projects using 100% green hydrogen will be set up, according to the two sources.

The hydrogen plan is to be implemented in phases. Up to 2025-26, sectors already using hydrogen will be converted to green hydrogen and low-cost electrolyser manufacturing will be set up. — Reuters

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