India has embraced a remarkable milestone in its march towards a greener future with the commissioning of its first green hydrogen plant dedicated to steel production. Strategically located in Haryana, Hygenco, a company specialized in green hydrogen and derivatives established in 2020, has launched this pioneering facility with plans to introduce three additional plants by the end of the fiscal year 2025. Anshul Gupta, Co-founder and VP (Strategy & Partnerships) of Hygenco, discussed an array of topics with Aggam Walia, conveying a future where producing green hydrogen is not only commercially viable but also a proven reality without governmental support.
The choice of the renewable energy source for any green hydrogen project is central to Hygenco’s operations, which primarily focuses on cost efficiency and environmental impact across various industries, including steel, refineries, and glass production. The newly inaugurated plant in Hisar, feeding green hydrogen into Jindal Stainless Limited’s furnace, exploits the benefits of floating solar and some rooftop solar solutions. Meanwhile, their upcoming project in Maharashtra, engineered for Sterlite Technologies Limited to manufacture glass preforms for optical fibers, is tapping into a synergetic blend of wind and solar energy. The goal is always to maximize electrolyser utilization, whether it is through purely solar applications or the extended operations enabled by incorporating wind power.
The discussion further delved into energy storage technologies and their role in ensuring a 24×7 green hydrogen supply. Despite the theoretical possibilities, Gupta indicates that current energy storage solutions, be it battery storage or pumped hydro, fall short of economic feasibility. He projects it will be several years before these technologies can viably sustain round-the-clock green hydrogen production.
Comparatively assessing the commercial viability of green hydrogen in India and the United States, Gupta pointed out that the U.S. enjoys low-cost grey hydrogen due to widespread shale gas reserves, creating a considerable cost difference between grey and green hydrogen. In contrast, India’s high costs for grey hydrogen stem from its reliance on imported liquefied natural gas (LNG), radically narrowing the price gap—and in certain instances, overturning it in favor of green hydrogen. He confidently stated that Hygenco has undertaken projects where the cost of green hydrogen undercuts that of grey hydrogen.
The commercial viability of Hygenco’s projects has been attributed to a series of incremental innovations rather than a singular transformative breakthrough. The expertise gathered from their pilot plant in Ujjain, coupled with the ability to secure project equity and bank financing repeatedly, buttresses Gupta’s assertion of indisputable commercial viability. Dispelling skeptics, he affirms that businesses rooted in reliance on governmental aid have doubtful sustainability.
One contentious industry debate involves the Approved List of Models and Manufacturers (ALMM), which specifies domestically preference for solar panels over cheaper foreign options, potentially impacting green hydrogen production costs. Gupta takes a firm stance that exceptional relaxations for the green hydrogen sector are unjustified and that businesses should thrive without reliance on such exemptions.
Green hydrogen, as per Hygenco’s strict definition that surpasses even the rigorous European Union standards, relies on renewable energy that is both additional and bears temporal correlation, ensuring that no thermal power is utilized during off-peak hours. This strict adherence is foundational to their approach to green hydrogen, which they sustain through advanced temporal correlations.
The vision for greener practices is reinforced by the government’s strategic moves towards standardization and the establishment of electrolyser manufacturing hubs in India. Gupta sees vibrant domestic production as essential, with governmental support in creating industrial areas offering special rates for land or electricity to create a conducive environment similar to that of successful automotive hubs.
Hygenco’s proficiency in cost-efficient and environmentally sound production has also gazed beyond domestic borders, attracting international attention. South America, the Middle East, the US, and Australia have all shown interest, with potential ventures particularly in Saudi Arabia presenting exciting opportunities.
As green hydrogen ventures continue to evolve, Hygenco’s commitment to producing commercial returns, independent of government support, and harnessing innovation to carve a cost-effective and sustainable future underscores a new era in the energy sector—a future where India leads the charge in the green hydrogen revolution.
