H2e Power Systems has secured a tender from Oil India (OIL) to establish a 1 MW green hydrogen project in Himachal Pradesh, marking a significant step towards renewable energy in the region. The project is slated for commissioning within 18 months of receiving the letter of award.

In December 2023, Oil India issued bids for the project, which will have a hydrogen generation capacity of 17 kg/hr. H2e will utilise its steam electrolysis system based on solid oxide fuel cell (SOFC) technology, which is expected to offer lower onsite hydrogen production costs compared to traditional methods. The hydrogen output will be flexible, varying between 0 and 125%.

Supply of green hydrogen will be measured quarterly, and if there is any shortfall in production, the bidder will incur a penalty of Rs 350 per kg to the owner.

In 2023, the Strategic Interventions for Green Hydrogen Transition (SIGHT) program was launched under the Green Hydrogen Mission, with a financial commitment of Rs 174.9 billion. The Ministry of New and Renewable Energy (MNRE) has allocated Rs 4 billion for the development of green hydrogen hubs and related projects, aiming to establish two hubs in the initial phase to promote large-scale hydrogen production and utilization.

The MNRE has defined green hydrogen as having a well-to-gate emission of less than 2 kg CO2 equivalent per kg of H2. Additionally, the MNRE has issued guidelines for providing incentives for the production of up to 450,000 metric tons of green hydrogen annually under Component II of the SIGHT program.

In August 2024, the National Institute of Solar Energy also invited proposals to develop testing facilities and infrastructure to create standards and regulatory frameworks as part of the National Green Hydrogen Mission. (Mercom)