India to seek bids to set up green hydrogen plants by May: Sources

The Ministry of New and Renewable Energy did not respond to a query sent by Reuters.

Establishing electrolyser factories and hubs for making and using green hydrogen could attract interest from such big companies 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, who did not want to be named, told Reuters.

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 — they said.

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

The government intends to award contracts within a year, both sources said.

Other countries are working in this field, but the high costs of transporting and storing hydrogen and of making electrolysers are key issues that need to be resolved

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 five million tonnes of green hydrogen annually by 2030.

Similarly, steel projects using 100 percent 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 manufacturing 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 two officials said.

The phase 1 projects will begin manufacturing in two years, the two officials said.