With growing interest among industries in green hydrogen as an energy source, Karnataka Renewable Energy Development Limited (KREDL) has decided to set up a 300 kW self-sustained green hydrogen plant in the State. The plant is expected to bring in more investments in the sector and was announced during this year’s Budget.
The project will be taken up on a pilot basis at a cost of ₹10 crore using funds from the Ministry of New and Renewable Energy (MNRE). KREDL is looking at Pavagada and Kalaburagi as potential sites for the project as along with water, a treatment plant for water, an electrolyser machine, and a tanker, the plant will also need a source of green energy, like solar or wind, a KREDL official said.
“Green hydrogen can avert the carbon dioxide emissions and as a nodal agency for it, we have to showcase those benefits. Initially, we will tie up with customers who want to purchase green hydrogen like multinational companies based in Bengaluru,” K.P. Rudrappaiah, Managing Director, KREDL, told The Hindu.
The project is expected to be commissioned in six months as currently the process for preparation of a detailed project report (DPR) and acquiring board approval is in progress.
Demand for green hydrogen
When asked about the demand for green hydrogen in Karnataka, Mr. Rudrappaiah said that the primary consumers are mostly industries as of now. “For now, our primary consumers are petrochemical refineries, fertilizer manufacturers, steel manufacturers and such industries. Then there are also segments like transportation which are evolving for the usage of green hydrogen,” he said.
However, affordability seems to be the concern when it comes to green hydrogen. “Companies which are trying to put up green hydrogen plants are more focussed on exporting energy especially to European countries owing to the affordability factor. Even here, the costs will eventually come down,” Mr. Rudrappaiah said.
Green hydrogen policy
The Karnataka government is also drafting a dedicated green hydrogen policy, as announced by the Chief Minister in the Budget. Sources said that five companies have already signed Memorandum of Understanding (MoU) for the policy.
Earlier in the month, Energy Minister K.J. George and M. B. Patil, Minister for Large and Medium industries, chaired a meeting to discuss the policy.
Facilitation of the development of green hydrogen capacity of at least 2.5 million tonnes per annum, attracting investments qualified under strategic interventions for green hydrogen transition, fostering demand for the energy resource and its derivatives through fiscal incentives, and generation of employment through skilling programmes and strategic tie-ups with stakeholders were discussed as the key objectives of the policy.
