India to invite bids for green hydrogen plants in May

India will by May invite bids for subsidies for setting up green-hydrogen manufacturing and utilisation hubs, fertiliser and steel plants based on the fuel, and factories for making electrolysers.

The bidding process is part of a first phase of a $2 billion incentive plan announced last week to boost use of green hydrogen to cut emissions and make India a major exporter in the field.

Green hydrogen is hydrogen made with renewable energy. The plan aims at using it in fertiliser and steel production in place of hydrogen made with fossil fuels, blending it into urban gas supply gas and promoting its use in transportation.

Establishing electrolyser factories and hubs for making and using green hydrogen could attract interest from such big companies such as Reliance Group and Adani Group, which have already committed billions of dollars to green-hydrogen activities. Electrolysers are devices for making hydrogen.

The government will call within three to four months for competitive bids for establishing two green hydrogen hubs, two government sources. In the same period it will seek bids for setting up two fertiliser plants using green hydrogen and green ammonia – ammonia made with green hydrogen.

It will subsidise establshment of the activities proposed by the winning bidders, which will retain ownership.

The plan, called the National Green Hydrogen Mission, aims at substituting all ammonia-based fertiliser imports with domestic fertilisers 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 plan is to be implemented in phases. Up to 2025-26, sectors already using hydrogen will be converted to green hydrogen and low-cost electrolyser manufactuing will be set up.

In the second phase, between 2026-27 and 2029-30, production of commercial-scale green hydrogen in steel and mobility sectors will be explored. The phase 1 projects will begin manufacturing in two years.