The authorities is contemplating mandating longer period green hydrogen and green ammonia buy agreements of not lower than 15 years to allow restoration of prices. “The green hydrogen and green ammonia projects are likely to involve higher upfront capital investment.
Hence, the purchase agreement period should not be less than 15 years. There would also be provisions for further extension of the contract period on terms and conditions mutually agreed between the parties,” a senior authorities official stated.
As per bidding tips beneath preparation by the renewable vitality ministry, an digital technical and worth bids-based public sale for green hydrogen and green ammonia procurement is proposed for procurement over 4,000 metric tonnes each year (mtpa) of green hydrogen and 20,000 mtpa of green ammonia.
The authorities can also be prone to permit the choice of e-reverse bidding for prepared procurers. The guidelines additionally suggest the availability of intermediaries between green hydrogen and ammonia procurers and suppliers who can combination demand from multiple shopper. The choice of pooling of tariff by the merchants can also be being thought of.
“Procurers can avoid the risk of getting locked into higher tariffs as there are improvements in technology. The Centre is mulling providing options that intermediaries can consider to pool tariff for green hydrogen and ammonia. The pool tariff will be a weighted average of tariff arrived through each competitive bid,” the official stated.
The similar is being proposed by the power ministry for renewable vitality initiatives.
“Long-term contract is a necessary condition for this market to take off in the absence of which these capital-intensive projects will not be viable. We would prefer it if it is closer to 25 years,” stated ACME Group CEO Rajat Seksaria.
He stated the availability to permit pooled tariffs reduces threat to each procurers and producers. “That’s a very mature decision,” he stated.
India had, on February 17, introduced plans to supply 5 million tonnes of green hydrogen by 2030 and unveiled a coverage that may allow producers to supply renewable vitality to supply hydrogen or ammonia with out paying transmission fees for 25 years. The mission seeks green hydrogen consumption obligation on fertiliser models, petroleum refineries and metropolis gasoline distribution networks.
Most home oil refiners have introduced massive plans to supply green hydrogen and a few of them have already begun the method to arrange small services based mostly on captive renewable energy crops.
Source: PTI
