Centre to issue tenders based on aggregated demand for green hydrogen soon

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20 November 2018, Saxony-Anhalt, Magdeburg: A tap of the first hydrogen filling station in Magdeburg Saxony-Anhalt. The technology for the H2 system comes from Air Liquide and enables the refuelling of around 40 vehicles per day. Located directly on the Autobahn 2, the filling station closes a gap between Berlin and the Hannover area. The client and operator is the joint venture H2 MOBILITY, in which the companies Air Liquide, Daimler, Linde, OMV, Shell and TOTAL have joined forces. Photo: Peter Gercke/dpa-Zentralbild/ZB (Photo by Peter Gercke/picture alliance via Getty Images)

The Centre will issue tenders based on the ‘demand aggregator’ model for green hydrogen. The Ministry of New and Renewable Energy (MNRE) in its latest Cabinet note has proposed that demand for green hydrogen from key sectors such as fertilisers, steel, and refineries would be aggregated and offered as a mega tender.

The Cabinet note has been sent to ministries of petroleum and natural gas, law, department of fertilisers, among others for their comments. The demand aggregation will help in creating substantial volume to facilitate commercial supply of green hydrogen.

MNRE has proposed that SECI can host the bidding process, unless any other agency is not suggested by other ministries. SECI is the nodal agency under MNRE for tendering solar and wind power projects.

Senior officials said the new National Hydrogen Mission which is in works would outline the purchase obligation of green hydrogen for several industries. “This would in turn help in designing the tender as the demand calculations would be available,” said an official.

Union Minister for Power, New and Renewable Energy R K Singh last month said, green hydrogen would be included in the ‘Renewable Purchase Obligation’ (RPO) regime. RPO entails states/power discoms to purchase a certain portion of their energy demand from green energy sources.

MNRE is hoping that with mega tender, the cost of green hydrogen would also come down.

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