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Blog / 02 Aug 2025

Green Hydrogen Power Plant at Kandla Port

Context:

India commissioned its first indigenously-built 1 MW Green Hydrogen Power Plant (GHPP) at Kandla Port, Gujarat. Developed under the National Green Hydrogen Mission, the plant is capable of producing approximately 140 metric tonnes of green hydrogen annually, marking a significant leap toward decarbonizing key sectors of the economy.

What is Green Hydrogen?

Green Hydrogen refers to hydrogen produced via electrolysis—a process that splits water (H₂O) into hydrogen and oxygen using electricity from renewable sources such as solar and wind. This clean fuel produces zero carbon emissions when used.

Applications of Green Hydrogen:

·        Steel Production: Replaces coking coal in blast furnaces, reducing CO2 emissions and enabling cleaner steel production. Green hydrogen can be used as a reducing agent of GHGs, producing water vapor instead of CO2.

·        Refineries & Fertilizers: Acts as a substitute for grey hydrogen in ammonia and methanol production, reducing greenhouse gas emissions and dependence on fossil fuels.

·        Transport: Powers hydrogen fuel cell vehicles, particularly in heavy-duty transport like trucks and buses, offering a zero-emission alternative to fossil fuels.

·        Energy Storage & Grid Balancing: Used to generate electricity during peak demand or when renewable generation is low, providing a reliable and sustainable energy source.

·        Green Methanol Production: Can be combined with carbon dioxide to produce green methanol, a liquid fuel with various industrial applications.

India Commissions 1 MW Green Hydrogen Plant at Kandla

Challenges to Adoption:

·        High Cost: Production currently costs $4-$6 per kg, making it economically less viable. However, costs are expected to decrease as renewable energy costs fall and electrolyzer technologies improve.

·        Storage Issues: Requires high-pressure or cryogenic systems, adding complexity and cost to storage and transportation.

·        Water Consumption: Up to 9 liters of water needed per kg of hydrogen, which can strain water resources in water-scarce regions.

·        Energy Demand: Electrolysis needs around 48 kWh of electricity per kg of hydrogen, highlighting the need for efficient and renewable energy sources.

The Way Forward

·        Lower Costs: Through GST cuts, cheaper green electricity, and concessional finance.

·        Policy Incentives: Like the PLI scheme for green steel targeting exports.

·        Investment: A projected $1 billion by 2030 is essential for scaling up technologies.

·        Market Mechanisms: Implement Green Hydrogen Purchase Obligations (GHPO) for selected sectors to ensure demand.

What is the National Green Hydrogen Mission?

The National Green Hydrogen Mission aims to make India a global hub for the production, use, and export of green hydrogen.

Key Features:

  • Objective: To position India as a leader in green hydrogen on the global stage.
  • Target: Achieve 5 million metric tonnes (MMT) of green hydrogen production per year by 2030.
  • Nodal Ministry: The Ministry of New and Renewable Energy (MNRE) is responsible for implementing the mission.

Conclusion:

The plant contributes to India’s commitment to achieving net zero emissions and promoting sustainable development. Its commissioning reflects India’s focus on innovation, self-reliance, and clean energy transformation, aligning both with national priorities and global climate sustainability goals.