New Delhi: The federal government has missed out on offering a transparent framework for identification of inexperienced hydrogen hubs and strategic elements in its scheme tips for organising of inexperienced hydrogen hubs beneath the Nationwide Inexperienced Hydrogen Mission issued final month, in response to trade specialists.
“The rules are very complete, nevertheless, there are some strategic factors that we must always handle as a nation,” mentioned a senior authorities official on situation of anonymity.
Mails despatched to the secretary of the renewable power ministry and the press workplace for particulars on additional plans to deal with points within the launched scheme tips remained unanswered.
Talking on the necessity for newer applied sciences, the official mentioned that liquid hydrogen for instance, will turn out to be a actuality in one other 5 years. Therefore, the cryogenic know-how to liquefy and transport the hydrogen much like LNG throughout the globe must be discovered.
“We require strategic funding in cryogenic know-how… Cryogenic ship manufacturing is one other facet to be checked out… We additionally want ship terminals to deal with these ships,” mentioned the official.
Carbon fiber tanks that are utilized in storage are all imported presently.
“This isn’t viable and thus funding for his or her home manufacturing is required as properly… Other ways of storage similar to metallic hydride or in powder kind additionally must be explored,” added the official.
In line with Amit Kumar, associate and chief – power and local weather, Grant Thornton Bharat, whereas the scheme accommodates ‘every other infrastructure required’ beneath core infrastructure, the protection for manufacturing of infrastructures similar to cryogenic programs just isn’t clear.
“There must be a spotlight in direction of such transportation applied sciences particularly for lengthy distance transportation given the congestion that we envisage in inland transportation,” he mentioned.
The scheme lately launched by the federal government goals to assist the event of core infrastructure at hydrogen hubs – at-least two by 2025-26 – particularly for frequent companies and services, somewhat than funding particular person undertaking elements.
“Its salient options point out sure standards to establish hydrogen hubs however a transparent framework for identification of hydrogen hubs is lacking,” mentioned Ravi Shekhar, managing director, Eninrac Consulting.
Shekhar mentioned that it’s supreme for the hydrogen trade and the federal government to arrange a hydrogen hub evaluation framework which is constant all through every potential website with various levels of significance.
He added that the outlay proposed until 2025-26 for 2 plot hubs within the scheme is INR 200 crore, would possibly fall quick for hydrogen hub improvement of comparable dimension and scale to the proposed Inexperienced Kochi Hydrogen Hub in Kerala.
“This clearly signifies that extra monetary leverage needs to be offered by the federal government aside from the capitalisation for the undertaking builders/SPV for H2 hubs,” mentioned Shekhar.
At current, the vast majority of funding made in hydrogen and its derivatives are for catering to the export market, mentioned Grant Thornton’s Kumar.
Until March 2024, bulletins have been made for about 25 MMTPA inexperienced ammonia manufacturing capability in India that targets the export market, he added. These tasks are majorly concentrated within the coastal states – Odisha, Karnataka, Maharashtra, Gujarat, Kerala, Tamil Nadu, Andhra Pradesh.
“In a lot of the states the demand for hydrogen hubs infrastructure goes to be scattered and over one hub inside a state can be wanted. Therefore, the stipulated finances of INR 200 crore for 2 hubs can be inadequate given the anticipated demand for such hubs,” mentioned Kumar.
He mentioned that there’s a want for framework and tips on contractual and industrial preparations which hydrogen hub infrastructure operators can have with producers and offtakers to keep away from unreasonable worth seize within the type of hub infrastructure fees within the worth chain.
“That is unclear in the mean time significantly for these hydrogen hubs which can use the Ministry of New and Renewable Power’s (MNRE’s) central monetary help (CFA),” added Kumar.
He mentioned that it could be fascinating that the scheme ought to cowl a minimum of two hydrogen hubs per state as a way to have equitable improvement.
He additional mentioned that given the capex want for transmission traces which isn’t holistically coated beneath the MNRE’s Inexperienced Power Hall Program, there’s a necessity to have a devoted inexperienced hall programme for inexperienced hydrogen tasks in India.
Final month, the MNRE issued scheme tips, in response to which, the hub ought to have a capability of a minimum of 100,000 MTPA and better manufacturing capability will get precedence.
It added that the executing company ought to have present capabilities to finish and commercialise the tasks.
The eligible businesses for sending undertaking proposals contains CPSUs, state PSUs, non-public sector, state companies, autonomous our bodies, JVs, partnerships, and consortiums of such entities, mentioned the MNRE in its tips.
In line with Shekhar, an idea degree framework for identification of hydrogen hubs might have been included which might have been supreme to tell determination makers about ranking completely different potential websites for additional investigations.
He mentioned that this was purely for the truth that there would possibly exist many dynamic elements that get into a variety for location for a home hydrogen hub which, mockingly on this scheme, is concentrated solely by way of primary infrastructure assist.
“As an illustration, as a way to choose potential websites for growing H2 hubs allow us to assume a framework which is constant by means of two potential hypothetical websites – which ideally ought to have been included within the scheme notified by GoI,” added Shekhar.
Together with these tips for organising two hydrogen hubs in India, the ministry had additionally introduced tips to supply extra incentives for electrolyzer manufacturing (tranche-II).
Grant Thornton’s Kumar added that one other key aspect for having manufacturing services nearer to the demand phase beneath the MNRE’s hydrogen hub is transmission line infrastructure.
He mentioned that this can be a key worth hyperlink within the worth chain. Hydrogen and its derivatives manufacturing services face connectivity constraints in the mean time and each the Central and state governments want to deal with it on precedence with particular finances allocation.
“Funding wants for transmission traces and different infrastructure, the proposed CFA assist beneath the hydrogen hub scheme is comparatively insignificant,” he mentioned.
