India’s first commercial-scale green hydrogen plant within the stainless steel industry has been inaugurated at Jindal Stainless Ltd’s (JSL) manufacturing unit in Haryana’s Hisar. The JSL plant is set to produce 78 tonnes per year of green hydrogen to begin with and will be managed by green hydrogen facilities developer Hygenco India for a duration of 20 years. After two decades, the ownership and operation responsibilities will be transferred to JSL.
The agreement between JSL and Hygenco signifies the maiden commercial long-term offtake agreement for green hydrogen in India. Previously, Larsen & Toubro, Indian Oil Corporation, Oil India, NTPC etc. have established demonstration or pilot plants for green hydrogen making but the output has primarily been reserved for experimental purposes and limited self-use.
The green hydrogen produced at the new JSL-Hygenco facility, inaugurated by Steel Minister Jyotiraditya Scindia, aims to replace grey hydrogen derived from ammonia cracking currently utilized at the JSL manufacturing unit. Hydrogen plays a crucial role in the stainless steel annealing process, forming a part of the heat treatment.
The agreement between JSL and Hygenco says that the stainless steel manufacturer will receive continuous supplies of high-purity green hydrogen for 20 years under a fixed-price offtake contract.
The specific project costs and commercial details of the offtake agreement remain undisclosed.
Through the implementation of the new green hydrogen unit, JSL anticipates a reduction in carbon emissions by approximately 2,700 tonnes annually, totaling 54,000 tonnes over the contract’s duration. The annual requirement of JSL for pure hydrogen for annealing stands at approximately 353 tonnes, with nearly 72 tonnes intended to be supplied through the green hydrogen facility.
The utilization and production of green hydrogen in India align with the government’s strategic vision for the nation’s energy future and its commitment to significantly curbing carbon emissions. In January 2023, the government initiated the Rs 20,000-crore National Green Hydrogen Mission (NGHM) with the objective of positioning India as a global hub for the production, consumption, and export of green hydrogen and its derivatives.
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