New Delhi: The federal government has missed out on offering a transparent framework for identification of inexperienced hydrogen hubs and strategic facets in its scheme pointers for organising of inexperienced hydrogen hubs below the Nationwide Inexperienced Hydrogen Mission issued final month, in accordance with trade consultants.
“The rules are very complete, nonetheless, there are some strategic factors that we should always handle as a nation,” stated a senior authorities official on situation of anonymity.
Mails despatched to the secretary of the renewable vitality ministry and the press workplace for particulars on additional plans to deal with points within the launched scheme pointers remained unanswered.
Talking on the necessity for newer applied sciences, the official stated that liquid hydrogen for instance, will grow to be a actuality in one other 5 years. Therefore, the cryogenic know-how to liquefy and transport the hydrogen just 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,” stated the official.
Carbon fiber tanks that are utilized in storage are all imported at the moment.
“This isn’t viable and thus funding for his or her home manufacturing is required as nicely… Other ways of storage comparable to steel hydride or in powder type additionally must be explored,” added the official.
In response to Amit Kumar, companion and chief – vitality and local weather, Grant Thornton Bharat, whereas the scheme accommodates ‘another infrastructure required’ below core infrastructure, the protection for manufacturing of infrastructures comparable to cryogenic techniques isn’t clear.
“There ought to be a spotlight in the direction of such transportation applied sciences particularly for lengthy distance transportation given the congestion that we envisage in inland transportation,” he stated.
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 widespread companies and services, relatively than funding particular person mission parts.
“Its salient options point out sure standards to establish hydrogen hubs however a transparent framework for identification of hydrogen hubs is lacking,” stated Ravi Shekhar, managing director, Eninrac Consulting.
Shekhar stated that it’s ultimate for the hydrogen trade and the federal government to arrange a hydrogen hub evaluation framework which is constant all through every potential web site 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 brief for hydrogen hub growth of comparable measurement and scale to the proposed Inexperienced Kochi Hydrogen Hub in Kerala.
“This clearly signifies that extra monetary leverage must be supplied by the federal government other than the capitalisation for the mission builders/SPV for H2 hubs,” stated Shekhar.
At current, the vast majority of funding made in hydrogen and its derivatives are for catering to the export market, stated 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 many of the states the demand for hydrogen hubs infrastructure goes to be scattered and over one hub inside a state could be wanted. Therefore, the stipulated funds of INR 200 crore for 2 hubs could be inadequate given the anticipated demand for such hubs,” stated Kumar.
He stated that there’s a want for framework and pointers on contractual and business 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 for the time being notably for these hydrogen hubs which is able to use the Ministry of New and Renewable Power’s (MNRE’s) central monetary help (CFA),” added Kumar.
He stated that it might be fascinating that the scheme ought to cowl at the very least two hydrogen hubs per state with the intention to have equitable growth.
He additional stated that given the capex want for transmission traces which isn’t holistically coated below 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 pointers, in accordance with which, the hub ought to have a capability of at the very least 100,000 MTPA and better manufacturing capability will get precedence.
It added that the executing company ought to have current capabilities to finish and commercialise the tasks.
The eligible companies for sending mission proposals consists of CPSUs, state PSUs, personal sector, state companies, autonomous our bodies, JVs, partnerships, and consortiums of such entities, stated the MNRE in its pointers.
In response to Shekhar, an idea degree framework for identification of hydrogen hubs may have been included which might have been ultimate to tell determination makers about score completely different potential websites for additional investigations.
He stated that this was purely for the truth that there would possibly exist many dynamic components that get into a range for location for a home hydrogen hub which, satirically on this scheme, is concentrated solely when it comes to primary infrastructure assist.
“For example, with the intention to choose potential websites for creating H2 hubs allow us to assume a framework which is constant by way of two potential hypothetical websites – which ideally ought to have been included within the scheme notified by GoI,” added Shekhar.
Together with these pointers for organising two hydrogen hubs in India, the ministry had additionally introduced pointers to supply further incentives for electrolyzer manufacturing (tranche-II).
Grant Thornton’s Kumar added that one other key factor for having manufacturing services nearer to the demand section below the MNRE’s hydrogen hub is transmission line infrastructure.
He stated that this can be a key worth hyperlink within the worth chain. Hydrogen and its derivatives manufacturing services face connectivity constraints for the time being and each the Central and state governments want to deal with it on precedence with particular funds allocation.
“Funding wants for transmission traces and different infrastructure, the proposed CFA assist below the hydrogen hub scheme is comparatively insignificant,” he stated.
