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Amidst drop in supplies of petroleum and natural gas due to the West Asia crisis, India is aiming to expand the Piped Natural Gas (PNG) network along with with blending of Green Hydrogen with natural gas to reduce imports. Minister for New and Renewable Energy, Consumer Affairs, Food and Public Distribution Pralhad Joshi said that he was a part of an inter-ministerial meeting with Power Minister Manohar Lal Khattar and Minister for Petroleum & Natural Gas Hardeep Singh Puri the issue was discussed while the government works to accelerate expansion of the PNG network.
In 2023, NTPC had commissioned India's first green hydrogen blending project in a joint effort with Gujarat Gas Limited in the PNG network of NTPC Kawas township in Surat. Green hydrogen in Kawas is made by electrolysis of water using power from already installed 1 MW floating solar project. Regulatory body Petroleum and Natural Gas Regulatory Board (PNGRB) had earlier given approval for 5% vol./vol. blending of green hydrogen with PNG to start with and the blending level would be scaled phase wise to reach 20%. Green hydrogen when blended with natural gas reduces CO2 emissions keeping the net heating content same.
India is implementing the National Green Hydrogen Mission with an outlay of ₹19,744 crore, aimed at positioning the country as a global hub for the production, utilization, and export of green hydrogen and its derivatives. The Mission targets the production of at least 5 million metric tonnes (MMT) of green hydrogen per annum by 2030, while enabling decarbonization of key sectors, enhancing energy security, and attracting investments.
Under the Mission, the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme is being implemented for incentivising the production of Green Hydrogen in India and cost competitiveness through transparent competitive bidding. In this context, Solar Energy Corporation of India (SECI) has conducted competitive bidding for the supply of green ammonia to fertilizer units across the country.
The bidding process has led to the discovery of competitive green ammonia prices, with the lowest discovered price of approximately ₹49.75 per kg and an overall discovered price range of about ₹49.75 – 64.74 per kg. In comparison, internationally discovered prices have been reported at approximately Euro 1000 per tonne (around ₹110 per kg). Through this process, SECI has allocated a total capacity of approximately 7,24,000 tonnes per annum (TPA) to selected developers, with supply linked to 13 fertilizer units across the country.
