Kerala's new $27m green hydrogen pilot
Kerala is gearing up to launch several green hydrogen pilot projects in Kochi under the National Green Hydrogen Mission.
In early August (2024), the government's Ministry of New and Renewable Energy (MNRE) and Department of Science and Technology approved Kerala's roadmap for Kochi to have a 'green hydrogen valley' - one of four large-scale green hydrogen projects planned across India. Expect a formal announcement at the MNRE's International Conference of Green Hydrogen in Delhi from September 11-13 (2024).
Speaking to this report, Kerala's additional chief secretary (power) KR Jyothilal said the state's finance department had approved a Special Purpose Vehicle (SPV) for green hydrogen pilot projects. "(State) cabinet approval is expected soon," Jyothilal said, adding that this SPV will tie up with private investors for green hydrogen projects.
After the SPV becomes operational, Kerala will invest Rs73cr ($9m), the central government will invest Rs53cr ($6.6m), and private investors will invest Rs100cr ($12m) in green hydrogen projects in Kochi. Jyothilal said Kerala's Agency for New and Renewable Energy Research and Technology (ANERT) will co-ordinate all the projects.
Delhi-based consultant MEC Intelligence has prepared a 268-page Kochi Green Hydrogen Valley Roadmap for MNRE. MEC estimates that Kochi can consume 120,000 t/y of green hydrogen in sectors such as the (Bharat Petroleum) refinery, fertiliser factories, shipyard, port, container terminal, airport, public transport (road and marine) and exports.
"But there are no signs of (green hydrogen) offtake until 2025," added the report, "with pilot programmes scheduled between 2025 and 2027; a feasible timeline for domestic offtake is anticipated around 2030." The report continued that local players need time to develop decarbonisation plans, evaluate feasibility, and assess the impact on existing contracts.
What's more, state authorities have limited capacity to approve permits for hydrogen, develop port infrastructure and enhance renewable energy infrastructure. No processes are in place yet for green hydrogen standards and certifications.
Therefore, the report suggests a phase-wise approach for the project. MEC suggests total CAPEX investments in the project worth Rs18,542cr ($2.3bn).
Of this, Rs4166cr ($520m) will be for electrolysers and ammonia plants, and Rs12,687cr ($1.6bn) will be for renewable energy facilities.