Green Hydrogen: The Future of Rajasthan’s Energy with NTPC and RVUNL

March 29, 2024by Digital Team HGPL0
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Rajasthan is positioning itself as a prime destination for green hydrogen production, leveraging its abundant renewable energy resources [1]. The state’s commitment is further solidified with the approval of the ‘Rajasthan Green Hydrogen Policy-2023’, aimed at promoting green hydrogen generation using renewable energy [1].

This move aligns with global efforts to combat climate change by increasing the reliance on renewable energy sources and reducing carbon emissions through green hydrogen initiatives [1].

 

Overview of the Partnership

In an ambitious move to revolutionize Rajasthan’s energy sector, key partnerships have been established, marking a significant step towards the state’s green hydrogen and renewable energy goals:

  • NTPC and RVUNL Collaboration:
    • Objective: Enhance Chhabra Thermal Power Plant’s efficiency and explore the addition of supercritical units [2].
    • Signatories: Shri R Sarangapani (NTPC) and Shri Devender Shringi (RVUNL) in the presence of high-profile dignitaries including Rajasthan’s Chief Minister and Union Ministers [6].
  • Renewable Energy and Green Hydrogen Initiatives:
    • NTPC Green Energy Ltd. (NGEL) and RVUNL: Focus on developing Renewable Energy projects and green hydrogen derivatives with targets of up to 25 GW and one million tonnes, respectively [3].
    • Coal India and RRVUNL: Agreement to explore and execute power projects, including a significant solar power project [3].
    • NLC India and Rajasthan Government: Joint venture for lignite-based and solar power plants [3].
    • SJVN Green Energy: Long-term power usage agreement for solar power [2].

These partnerships underscore a collective effort to not only modernize existing infrastructure but also significantly boost renewable energy production, aligning with the Rajasthan Green Hydrogen Policy-2023 [4][5].

Renewable Energy Development Goals

Rajasthan’s ambitious renewable energy development goals are set to transform the state into a green energy hub, leveraging its natural resources and policy incentives:

  • National and State Targets:
    • The Central Government’s National Green Hydrogen Policy-2022 aims for 5 MMT per annum of green hydrogen production [1]. Concurrently, Rajasthan targets 2000 KTPA energy production by 2030, with a focus on generating 90 gigawatts of clean power [1][4]. This aligns with India’s broader goal to produce 5 million metric tons of green hydrogen annually by 2030, aiming to save over $12 billion in fossil fuel imports and reduce carbon emissions by 50 million metric tons [7].
  • Renewable Energy Capacity:
    • Rajasthan leads with the highest installed solar generation capacity in India, over 8000 MW, and ranks among the top five states for installed wind generation capacity [8]. The state benefits from the highest solar radiation in the country, at 5.72 Kwh/m2/day, hosting the world’s largest fully operational 2245 MW Solar Park in Bhadla, Jodhpur [8].
  • Policy Support and Investment:
    • The Rajasthan Renewable Energy Policy 2023 outlines a roadmap to reach 90 GW of renewable energy projects by 2029-30, with substantial investments in solar, wind, hybrid projects, and advanced technologies like energy storage systems [9][11]. Notably, the policy promotes utility-scale solar power projects, eases land allotment for solar energy equipment manufacturing, and introduces incentives such as 100% exemption from Electricity Duty for 10 years [8][9].

Green Hydrogen Production Initiatives

The Rajasthan Green Hydrogen Policy-2023 has laid a robust foundation for green hydrogen production initiatives, emphasizing the state’s commitment towards a sustainable energy future. Key highlights from the policy and ongoing projects include:

  • Incentives and Support:
    • 50% rebate on transmission and distribution charges for projects with a capacity of 500 kilotons per annum for ten years [1].
    • Exemption from surcharges for green hydrogen procured from third parties for a decade [1].
    • Priority in land allocation and a 30% subsidy for companies establishing green hydrogen research centers [1].
  • Applications and Sector Recognition:
    • Green hydrogen production utilizes renewable energy for the electrolysis of water, finding applications in refineries, steel plants, and ammonia production [1].
    • Recognized as a ‘Thrust Sector’ under the Rajasthan Investment Promotion Scheme-2022, benefiting from the Manufacturing Standard Package [1].
  • Notable Projects and Investments:
    • ACME Group’s integrated pilot project for green hydrogen and green ammonia plant in Bikaner, Rajasthan, showcasing the practical application of policy incentives [12].
    • An investment of around £400 billion for the production of 5 gigawatts of green hydrogen using solar energy and advanced technology [4].
    • Special support for green hydrogen projects to foster growth and job creation, with substantial funding for research centers focusing on green hydrogen [4][1].

These initiatives underscore Rajasthan’s strategic approach to leveraging its abundant solar energy resources for green hydrogen production, setting a precedent for renewable energy adoption and climate change mitigation efforts.

 

Future Impact and Strategic Importance

The strategic importance and anticipated impact of green hydrogen initiatives in Rajasthan, supported by national policies and investments, signal a transformative shift in the energy sector with far-reaching implications:

  • National Support and Investment:
    • The Indian government’s allocation of Rs 19,700 crore for the National Green Hydrogen Mission [7].
    • An additional Rs 35,000 crore earmarked for priority capital investments towards energy transition and achieving net zero objectives [15].
  • Economic and Employment Benefits:
    • Expected to reduce fossil fuel imports by a cumulative Rs 1 lakh crore by 2030, leveraging over Rs 8 lakh crore in total investments [16].
    • Creation of over 6 lakh jobs, fostering economic growth and employment opportunities within the state [16][13].
  • Energy Sector Transformation:
    • A focus on making solar a dependable power source, which is anticipated to drive exponential demand for solar energy [15].
    • The transition towards low carbon intensity and positioning India as a leader in the green hydrogen sector [15].
    • NTPC Limited, as India’s largest integrated power utility, plays a critical role by contributing 25% of India’s total electricity demand, further underscoring the strategic importance of green hydrogen projects in Rajasthan [5][6].

 

FAQs

What is the capacity of NTPC’s green hydrogen production?
NTPC is set to construct India’s largest green hydrogen production facility, with a capacity of 1200 tons per day (TPD). This facility will focus on producing green hydrogen and its derivatives, including green ammonia and green methanol, which are primarily aimed at various export markets.

What is India’s largest green hydrogen project to date?
The largest green hydrogen project in India is planned to be established on 1,200 acres near Pudimadaka village in the Atchutapuram mandal of Visakhapatnam, Andhra Pradesh. This initiative is led by NTPC Green Energy Limited (NGEL) as part of its commitment to achieving green energy and green hydrogen goals, supporting the Government of India’s energy transition efforts.

 

References

[1] – https://www.linkedin.com/pulse/unlocking-future-rajasthans-green-hydrogen-dgtaf
[2] – https://www.thehindubusinessline.com/companies/rajasthan-inks-mous-with-four-cpses-for-setting-up-solar-power-thermal-green-hydrogen-projects/article67938178.ece
[3] – https://mercomindia.com/rajasthan-slew-of-incentives-green-hydrogen-projects
[4] – https://www.linkedin.com/pulse/gh2-solar-delights-rajasthans-green-hydrogen-policy-announcement
[5] – https://energy.economictimes.indiatimes.com/news/renewable/ntpc-and-rvunl-sign-mous-to-develop-25-gw-renewable-capacity-and-1-million-ton-green-hydrogen-in-rajasthan-by-2030/108378769
[6] – https://ntpc.co.in/media/press-releases/ntpc-ngel-ink-mous-rajasthan-rajya-vidyut-utpadan-nigam-development-super
[7] – https://www.forbesindia.com/article/isbinsight/green-horizon-indias-journey-to-leadership-in-the-hydrogen-revolution/90711/1
[8] – https://invest.rajasthan.gov.in/en/renewable-energy
[9] – https://www.linkedin.com/pulse/rajasthans-renewable-revolution-everything-x76rc
[10] – https://solarquarter.com/wp-content/uploads/2023/10/Rajasthan-Policy-2023.pdf
[11] – https://jmkresearch.com/rajasthan-renewable-energy-policy-2023/
[12] – https://www.acme-ghc.com/india-green-hydrogen-project/rajasthan
[13] – https://energy.economictimes.indiatimes.com/news/renewable/rajasthan-govt-approves-hydrogen-policy/103750404
[14] – https://globalflowcontrol.com/newsroom/ntpc-and-ngel-sign-mous-with-rvunl-to-add-25-gw-renewable-energy-green-hydrogen-projects-and-enhance-thermal-efficiency-in-rajasthan/
[15] – https://timesofindia.indiatimes.com/city/jaipur/raj-likely-to-benefit-big-from-union-budgets-emphasis-on-green-energy/articleshow/97539816.cms
[16] – https://m.economictimes.com/industry/renewables/what-ntpc-gail-and-other-govt-entities-doing-under-green-hydrogen-mission/articleshow/106184560.cms


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