India’s Gujarat strives to boost green hydrogen output

The West Indian state of Gujarat is looking to become a frontrunner in renewable hydrogen, launching a policy that defines conditions for leasing out land to hydrogen project developers.

The state government will lease out wasteland to those looking to produce hydrogen from wind or solar sources, or from a combination of the two. Projects will have to produce at least 100,000 t/yr of hydrogen to be eligible for leasing the land under an agreement that will be valid for 40 years.

To be eligible, firms need to have experience in setting up at least 50MW wind or solar power generation capacity or be an existing user of hydrogen from fossil fuel sources, with a requirement of at least 100,000 t/yr.

The companies will have to pay an annual rent of 15,000 rupees ($181) a hectare with a 15pc increase every three years. They will have eight years to fully develop the plant to maximum capacity.

The policy is intended to help Gujarat realise its ambitious hydrogen production plans. The state aims to become a “global hub of green hydrogen manufacturing capacity” with the production of 8mn t/yr in the next 10-12 years, Balvantsinh Rajput said in January.

India’s central government has set a target of 5mn t/yr for 2030, while it aims to reach 10mn t/yr later on with the growth of export markets. Delhi approved an initial outlay of Rs197.44bn in pursuit of these goals in January.

Gujarat has already agreed to preliminary deals for the development of large-scale hydrogen production sites, including with domestic conglomerates Reliance Industries (RIL) and Adani and renewable project developer Ocior Energy.

RIL has said it will invest about Rs5.95 trillion in green hydrogen ecosystems and renewable energy in the state over a span of 10-15 years. Its plans include the construction of electrolyser manufacturing sites in Gujarat.

Ocior in January announced plans to build a 1mn t/yr renewable ammonia site in Kutch district, with an aim to start operations in 2027 and reach maximum capacity by 2030. The company is targeting export markets for offtake, Ranjit Gupta told Argus at the time.

The first small-scale green hydrogen plant in Gujarat was commissioned in August last year by the engineering firm Larsen & Toubro.

Gujarat’s Deendayal port has been selected by India’s Ministry for Ports, shipping and Waterways as one of the country’s three ports that are to be developed into hydrogen hubs by 2030.

Engr. Haseeb Ullah

Haseeb covers the global energy market for both conventional and modern energy resources. His expertise is on the global energy supply chain from generation to distribution and end-users. He has a Master degree in Engineering Management and a Bachelor of Science degree in Electrical Engineering.
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