Two government sources told Reuters that India will invite bids by May for subsidies to set up factories to make green-hydrogen manufacturing and utilization centres, fertilizers based on the fuel and steel plants and electrolyzers.
The bidding process is part of the first phase of a $2 billion incentive plan announced last week to promote the use of green hydrogen to cut emissions and make India a major exporter in the sector.
Green hydrogen is hydrogen made from renewable energy. The plan aims to use it in fertilizer and steel production in place of hydrogen made from fossil fuel, blending it with city gas supply gas and promoting its use in transport.
new ministry and renewable energy He did not respond to questions sent by Reuters.
May attract interest from large companies such as setting up electrolyzer factories and hubs to make and use green hydrogen Reliance Group and the Adani Group, which have already committed billions of dollars to green-hydrogen activities. Electrolyzers are devices for making hydrogen.
The government will call within three to four months for competitive bids to set up two green hydrogen hubs, two government sources, who did not wish to be named, told Reuters.
In the same period it will seek bids to set up two fertilizer plants using green hydrogen and green ammonia – ammonia made from green hydrogen.
It will subsidize the setting up of the activities proposed by the winning bidders, who will retain ownership.
Both sources said the government intends to award the contract within a year.
Other countries are working in this area, but the high cost of transporting and storing hydrogen and building electrolyzers are major issues that need to be resolved.
The plan, called the National Green Hydrogen Mission, aims to replace all ammonia-based fertilizer imports with domestic fertilizers using green ammonia by 2034-35.
The government wants India to produce 5 million tonnes of green hydrogen annually by 2030.
Similarly, steel projects using 100% green hydrogen will be set up, according to two sources.
The hydrogen scheme is to be implemented in phases. By 2025-26, sectors already using hydrogen will be converted to green hydrogen and low-cost electrolyser manufacturing will be set up.
The two officials said the second phase would explore commercial-scale green hydrogen production in the steel and mobility sectors between 2026-27 and 2029-30.
Both the officials said that the construction of the first phase projects would start in two years.
The text of this story is published from a wire agency feed without any modification.
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