Centre to float bids for green hydrogen in 4 months

The Centre is set to invite bids for green hydrogen in the next four months to encourage viable usage of hydrogen as a fuel.

The government is looking at bids for 4,000 MW of electrolyser capacity. Earlier the government had announced a production-linked incentive (PLI) scheme for manufacturing electrolyzers.

The government plans to implement the Green Hydrogen Consumption Obligation (GHCO) in fertilizer production and petroleum refining, on the line of renewable purchase obligations (RPO). The government also plans to provide viability gap funding (VGF) or grants for green hydrogen in heavy mobility, an official in the New and Renewable Energy department said.

The government is also proposing to come out with mandates for green hydrogen purchase obligations in refining and fertilizers starting with 10 per cent which will be increased later to 20-25 per cent. With time by adding more and more volume the price will reduce and the mandate will no longer be required, said the official.

Green hydrogen also has usage in sectors such as chemicals, iron, steel, fertilizer, refining, and heating. Besides, the GHCO on the lines of RPOs will mandate electricity distribution companies to purchase a fixed amount of renewable energy to cut reliance on fossil fuels; the draft Electricity Rules, 2021 issued by the Ministry of Power has allowed green hydrogen purchase to help meet RPOs.

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