Recent developments involving hydrogen hubs, floating facilities and an oversubscribed auction all point to an Indian hydrogen market on the boil as it strives to meet its 5 mmtpa target by 2030.
Today’s big news, that NTPC Green Energy will develop a $22.3bn green hydrogen hub in Andhra Pradesh, capable of producing 1,500 tonnes of green hydrogen and 7,500 tonnes of derivatives daily, cannot be overstated.
Read more: NTPC to develop 1,500 tpd green hydrogen hub in India
Industrial clusters lie at the heart of India’s green hydrogen strategy because collaboration between industries, public institutions and stakeholders can drive economic growth, create sustainable jobs and significantly cut emissions.
Such clusters not only provide scalable models for green hydrogen production, they also lay the groundwork for infrastructure that can support both domestic needs and global initiatives.
The ‘NTPC Green Energy LTD Green Hydrogen Hub’ will be launched under the country’s National Green Hydrogen Mission and is expected to contribute to India’s capacity target of 500GW by 2030. The strategy has encouraged the domestic production of electrolysers, so NTPC could potentially use products developed by Reliance Industries or L&T.
In other recent news, Greenstat Hydrogen India (GHI) and H2Carrier have agreed to jointly develop and deploy green hydrogen and ammonia projects located in India and Sri Lanka.
Under a Memorandum of Understanding (MOU), the two companies will collaborate on project identification, feasibility studies and the implementation of green hydrogen and ammonia production facilities, focusing on utilising H2Carrier’s DNV-certified P2XFloater technology for production sites.
Financing support is also taking root. India’s second green hydrogen auction in mid-December received 14 bids to receive government funding for a combined 626,500 tonnes per year, despite being capped at 450,000.
International collaborations are on the rise too. Germany – which will increasingly require large amounts of imported green hydrogen for its economy – and India have agreed to encourage private-sector investment and promote green hydrogen trade and export under a new five-year strategy.
The Indo-German Green Hydrogen Roadmap was announced during the 7th Inter-Governmental Consultations (IGC) in New Delhi, attended by German Chancellor, Olaf Scholz, and Indian Prime Minister Narendra Modi.
Such positivity has led some commentators to speculate that India could actually double its annual capacity hydrogen target.
Low-cost green hydrogen can be combined with CO2 captured from cement production to produce methanol, a versatile chemical used to make durable building materials like PVC.
By incorporating CO2 into these long-lasting products, carbon is effectively locked away for extended periods. This is a valuable solution for a country like India, which lacks large-scale carbon sequestration reserves.
To fully unlock the potential of green hydrogen however, India must address several key challenges, notably reducing production and transportation costs, scaling up infrastructure and establishing supportive regulatory frameworks, according to the World Economic Forum.
“Overcoming these obstacles will ensure green hydrogen can support India’s ambitious sustainable development goals and solidify its leadership in the global clean energy arena. With decisive action and continued collaboration, India can pave the way for a low-carbon future – both for itself and for the world,” it states.
