Indian utility NTPC and chemicals firm Gujarat Alkalies and Chemicals Limited (GACL) have signed a memorandum of understanding to work together to produce green methanol and green ammonia from electrolysis.

The firms say they are developing a project to produce 75t/d of green methanol and 35t/d of green ammonia to be used by GACL at its Vadodara and Dahej chemicals facilities in Gujarat.

“This would be the first commercial-scale green ammonia and green methanol project in the country,” the firms say.

NTPC is already carrying out several green hydrogen pilot projects. These include blending 5pc hydrogen into the natural gas network in Gujarat from an electrolyser coupled to a 1MW floating solar asset; producing 50t/d of green ammonia for use in a fertiliser production facility owned by National Fertilizers; developing an energy storage project in Andhra Pradesh where green hydrogen is used to balance a microgrid via a 240kW solid-oxide electrolyser; and tendering for hydrogen buses in Delhi via its subsidiary NTPC Vidyut Vyapar Nigam.

Hydrogen strategy

Indian prime minister Narendra Modi announced the country’s hydrogen mission in 2021, allocating INR250mn/yr ($3.4mn/yr) for research and development.

75t/d – Amount of green methanol project is set to produce

India’s cheap renewables—particularly solar—coupled with high current fossil fuel prices, led to the government to set out a raft of additional policies earlier this year designed to drive investment in green hydrogen projects as it targets production of 5mn t/yr by 2030.

Some projects are now underway as a result: state-run Indian Oil Corporation is planning to build India’s first green hydrogen plant at its petroleum refinery in Mathura, while oil firm Reliance Industries announced it will install an electrolyser at its Jamnagar refinery. Hindustan Petroleum, a subsidiary of state-backed ONGC, is also planning a pilot hydrogen production programme.

India is a natural home for green hydrogen because of its ample renewables potential, according to a study by thinktank Gateway House.

The country had 8.5mn t/yr of hydrogen demand in 2021, and this is expected to rise to 9.1mn t/yr in 2022 and 11mn t/yr in 2030. Ammonia production for fertilisers and desulphurisation of fuel in refineries are the two major sources of demand.

India should develop 25 national green hydrogen projects totalling 150MW of electrolyser capacity across five national hubs by 2025, according to a recent plan from industry body the India Hydrogen Alliance.

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Author: Tom Young