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					</table>The costs of producing and trading green hydrogen must be lower than domestic production to offset higher transport costs and make hydrogen trade cost-effective, a report by the International Renewable Energy Agency (<a href="https://www.irena.org/" target="_blank" rel="noopener">IRENA</a>) has said.
The report said the hydrogen trade would significantly contribute to a more diversified and resilient energy system.
With falling costs of renewables and the hydrogen potential surpassing the energy demand by twenty-fold globally, three-quarters of global hydrogen will still be produced and used locally in 2050. This is a significant change from today’s oil market, where the bulk is internationally traded.
The report details that by 2050, about one-quarter of the global hydrogen demand totaling 150 megatons per year, could be satisfied through international trade, while the other three quarters would be domestically produced and consumed. IRENA observes this transition as a significant change from today’s oil market, where about 74% is internationally traded. It is similar to today’s gas market, of which just 33% is traded across borders.
The report titled ‘Global hydrogen trade to meet the 1.5 degrees Celsius climate goal’ said hydrogen trade can lead to a lower-cost energy supply. This is because cheaper (imported) energy is tapped into while creating a more robust energy system with more alternatives to cope with unexpected events.
Hydrogen is currently being traded through largely existing, repurposed gas pipelines resulting in the drastic reduction of transport costs. As H2 becomes an internationally traded commodity, the reports predict its production will witness increased investments, fulfilling the global energy demand of around $4 trillion by 2050.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-37851" src="https://mercomindia.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application.png" alt="Hydrogen Demand by Application" width="1504" height="1153" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application.png 1504w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application-300x230.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application-768x589.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application-650x498.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application-624x478.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/Hydrogen-Demand-by-Application-600x460.png 600w" sizes="(max-width: 1504px) 100vw, 1504px" />
IRENA emphasizes that when the world has transitioned to a cleaner future by maintaining the 1.5°C temperature, around 25% of hydrogen will be traded globally— half in the form of ammonia transported by sea and half through gaseous hydrogen pipelines concentrated in Europe and Latin America.
It further observes that of the internationally traded H2 in the 1.5°C scenario, around 55% would travel by pipeline— while most of the hydrogen network would be based on existing natural gas pipelines that would be retrofitted to transport pure hydrogen drastically reducing the transport costs.
The report highlights that the two pipeline-enabled trade routes would be concentrated in Europe and Latin America. The remaining 45% of the internationally traded H2 would be shipped as ammonia, primarily used without being reconverted to hydrogen. Around 70% of hydrogen traded will be used as feedstock and fuel in 2050.
According to the report, the cost of producing green hydrogen must be sufficiently less expensive in the exporting region than in the importing region to compensate for the transport cost. Such cost differential, the agency says, would become larger as the scale of projects increases and technology develops to reduce transport costs.
IRENA’s Director-General Francesco La Camera asserted, “It is true that hydrogen trade offers multiple opportunities from decarbonizing industry to diversifying supplies and improving energy security. A mix of innovation, government policy support and scale can bring the necessary cost reduction and create a global hydrogen market. Whether or not trade potentials can be realized will depend on countries’ policies and investment priorities and the ability to decarbonize their own energy systems.”
Recently, a report by the Government of India’s think tank, NITI Aayog, <a href="https://mercomindia.com/niti-aayog-ten-steps-make-india-hydrogen-hub/" target="_blank" rel="noopener">prescribed</a> ten ways for India to emerge as the global hub for green hydrogen production. It said that India could have the world’s highest green hydrogen capacity of over 60 GW by 2030 if the right steps are taken.
Earlier this year, IRENA <a href="https://mercomindia.com/daily-news-wrap-up-mnre-irena-green-hydrogen/" target="_blank" rel="noopener">signed</a> a strategic partnership agreement with the Indian Ministry of New and Renewable Energy (MNRE) to facilitate knowledge sharing from India on scaling-up clean energy technologies and support the country’s efforts in advancing cost-effective decarbonization through the domestic production of green hydrogen.

Green Hydrogen Trade Can Provide a Low-cost Option for Diversifying Energy Imports

South Africa-based <a href="https://www.implats.co.za/downloads/2006/annual_report/review06/marula.htm" target="_blank" rel="noopener noreferrer">Marula Platinum Mine</a> has issued a request for information (RfI) for setting up a 10 MW solar project to power its operations.
Marula sought information on how to design, finance, supply, construct, commission, operate, and maintain a 10 MW solar project at its platinum mine in Limpopo, South Africa. It also requires assessments, advice to the mine’s management, and information regarding the development, land requirements, and securing environmental and technical permits for the project.
The deadline for the RfI is October 20, 2020. It noted that parties need not quote prices, sign agreements, or submit a proposal for this process.
The company, owned by South African Holding Company <a href="https://www.implats.co.za/downloads/2006/annual_report/review06/marula.htm" target="_blank" rel="noopener noreferrer">Implats</a>, explained the move citing issues with the quality of electricity supplied by its state utility <a href="https://www.eskom.co.za/" target="_blank" rel="noopener noreferrer">Eskom</a> which have adversely affected its production.
Additionally, Marula said that recent regulatory changes by the country’s Department of Minerals Resource and Energy allowing mining companies to use alternative sources of power, including self-generation options, to meet their production and expansion needs.
Earlier, Mercom <a href="https://mercomindia.com/south-africa-sasol-invites-bids-solar/" target="_blank" rel="noopener noreferrer">reported</a> that Sasol, a South Africa-based integrated chemicals and energy company, has issued a request for proposal to develop two solar projects of 10 MW at its Secunda and Sasolburg facilities. It said it would sign a long-term power purchase agreement with the successful bidder to supply electricity to its facilities. The company said it is committed to securing 600 MW of renewable energy capacity eventually, and this tender was the first step in that direction.
Previously, <a href="https://arcelormittalsa.com/" target="_blank" rel="noopener noreferrer">ArcelorMittal South Africa</a>, a steel producer, issued a request for information to recruit independent power producers to set up solar power projects at six locations in South Africa. The company plans to enter into power purchase agreements with IPPs to build, own, and operate solar projects at Vanderbijlpark, Newcastle, Vereeniging, Pretoria, Thabazimbi, and Saldanha. These projects will be used to supply low-cost power for its operations across these sites.
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Image credit: U.S. Department of the Interior / CC BY-<a href="https://creativecommons.org/licenses/by-sa/2.0" target="_blank" rel="noopener noreferrer">SA</a>

South African Mining Company Plans to Set up a 10 MW Solar Project

The Energy Efficiency Services Limited (<a href="https://www.eeslindia.org/content/raj/eesl/en/home.html" target="_blank" rel="noopener noreferrer">EESL</a>) has amended its tender for solar home lighting systems for member countries of the International Solar Alliance (<a href="https://isolaralliance.org/" target="_blank" rel="noopener noreferrer">ISA</a>). The tender now seeks bids for 9,347,000 solar home systems.
The tender was initially <a href="https://mercomindia.com/eesl-bids-solar-home-lighting/" target="_blank" rel="noopener noreferrer">announced</a> in July 2020.
Interested bidders are expected to make an earnest money deposit (EMD) of $280,410 (~₹21 million), and the last date for the submission of bids is October 1, 2020. A pre-bid conference will be held on August 6, 2020.
The scope of work includes the design, supply, installation, testing, and commissioning of the solar home systems along with warranty services for five years. The solar home systems must be supplied to the destination within 90 days in the case of domestic deliveries, and within 120 days in case of international deliveries.
The bidder should have been in the business of manufacturing solar home systems or should have been a solar systems integrator involved in designing, manufacturing, testing, or installing solar projects or solar home systems for at least five years.
Bidders must also have experience supplying at least 140,200 batteries of 30 Amp-hour capacity or at least 78 MW of solar modules over the last three years.
They must also have had an average annual turnover of ₹6.31 billion (~$84.5 million) in the case of Indian companies or $84 million (~₹6.3 billion) in the case of international companies over the last three financial years. They must have been profitable for at least two of three preceding financial years. Their net worth must be not less than 100% of their paid-up capital, as well.
The ISA is an <a href="https://mercomindia.com/isa-international-intergovernmental-organization/" target="_blank" rel="noopener noreferrer">Indian initiative</a> that was jointly launched by Narendra Modi and the French president on November 30, 2015, in Paris, on the sidelines of COP-21, the UN Climate Conference. The ISA is an international and inter-governmental organization of more than 121 countries having its headquarters in India and the United Nations as the strategic partner.
In April this year, EESL <a href="https://mercomindia.com/eesl-announces-tender-led-streetlights/" target="_blank" rel="noopener noreferrer">floated</a> a tender for the design, manufacture, testing, and supply of 1.9 million LED streetlights including Telangana, Gujarat, Punjab, Uttar Pradesh, Uttarakhand, West Bengal, Jharkhand, Bihar, and Delhi.
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Image credit: Unsplash

EESL Floats Revised Tender for 9,347,000 Solar Home Systems for ISA Member Countries

The Energy Efficiency Services Limited (<a href="https://www.eeslindia.org/content/raj/eesl/en/home.html" target="_blank" rel="noopener noreferrer">EESL</a>) has issued a tender for 279 MW of solar projects across the state of Maharashtra.
The project will be partially funded through the corpus India has received from <a href="https://www.kfw.de/kfw.de-2.html" target="_blank" rel="noopener noreferrer">kFW</a>, the German state-owned development bank, towards the cost of ‘scaling up demand-side energy efficiency (sector) project.’
The last date for submission of bids is September 25, 2020.
The tender documents stated that the international competitive bidding process will be conducted as per the KFW’s guidelines and that it was open to bidders from all eligible source countries.
All countries are eligible to bid except the ones ruled out by sanctions issued by the UN Security Council, European Union, the German Government, or the Government of India.
The scope of work includes the design, engineering, supply, construction, testing, commissioning of the solar generating systems, each with a capacity ranging between 2 MW and 10 MW, across the state. The selected bidders are expected to provide operations and maintenance services for 25 years.
The work was divided into five lots, as represented below:
<a href="https://mercomindia.com/wp-content/uploads/2020/08/EESL_Tender-Details-for-279-MW-of-Solar-Power-Projects-Divided-into-5-Lots-District-wise.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-20665" src="https://mercomindia.com/wp-content/uploads/2020/08/EESL_Tender-Details-for-279-MW-of-Solar-Power-Projects-Divided-into-5-Lots-District-wise.png" alt="EESL_Tender Details for 279 MW of Solar Power Projects Divided into 5 Lots (District-wise)" width="621" height="524" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/08/EESL_Tender-Details-for-279-MW-of-Solar-Power-Projects-Divided-into-5-Lots-District-wise.png 621w, https://cms.mercomindia.com/wp-content/uploads/2020/08/EESL_Tender-Details-for-279-MW-of-Solar-Power-Projects-Divided-into-5-Lots-District-wise-300x253.png 300w, https://cms.mercomindia.com/wp-content/uploads/2020/08/EESL_Tender-Details-for-279-MW-of-Solar-Power-Projects-Divided-into-5-Lots-District-wise-600x506.png 600w" sizes="(max-width: 621px) 100vw, 621px" /></a>
To be eligible to participate in the competitive bidding process, applicants are expected to have an average annual turnover ranging between ₹719.3 million (~$9.7 million) and ₹1.06 billion (~$14.2 million) over the last three years depending on which lot they belong to. Bidders are also expected to have been profitable in at least two of the last three financial years and mandatorily in the last one.
EESL also provided criteria for the minimum capacity of similar projects applicants are expected to have completed over the last seven years. The cumulative capacity of these projects must exceed 15.6 MW, 17.7 MW, 15.6 MW, 17.7 MW, and 17.1 MW for Lots 1, 2, 3, 4, and 5, respectively.
At least one of these must be a grid-connected, ground-based solar project greater than 5 MW in capacity. Alternatively, they must have completed two similar projects over 4 MW or three above 3 MW in capacity.
Last year, German development bank, KfW, and Bank of Baroda <a href="https://mercomindia.com/kfw-bank-of-baroda-refinance-solar/" target="_blank" rel="noopener noreferrer">announced</a> that they would extend $113 million to refinance solar power projects in India under the Solar Partnership II – Promotion of Solar PV in India.
Recently, EESL <a href="https://mercomindia.com/eesl-empanel-consultants-solar-projects/" target="_blank" rel="noopener noreferrer">invited</a> bids to empanel consultants for a detailed project report (DPR) for solar power projects in West Bengal, Bihar, Jharkhand, and northeastern states of India.
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Image credit: Unsplash

EESL Announces Tender for 279 MW of Solar Projects in Maharashtra

<a href="https://www.suzlon.com/" target="_blank" rel="noopener">Suzlon</a>,  a wind turbine manufacturer and renewable energy project developer, intends to re-enter the international market, a senior company official told PTI.
In the past, the company had expanded its operations, generating 60% of its revenue. However, the global financial crisis of 2008 seriously affected the investment in the wind energy space.
<a href="https://mercomindia.com/suzlon-generates-revenue-of-%E2%82%B982-92-billion-2018/" target="_blank" rel="noopener">Recently</a>, Mercom reported that Suzlon registered a net loss of ₹3.84 billion (~$0.057 billion) for FY 2018. The consolidated net term debt of Suzlon stood at ₹60.37 billion (~$0.89 billion) while its working capital debt is valued at ₹38.89 billion (~$0.58 billion).
The company has been working strategically to bring down its debts to more sustainable levels. It has divested a part of its international operations and gone through a debt restructuring. It has also sold one of its overseas assets, the German subsidiary Senvion at an equity value of €1 billion (~$ 1.17 billion) in January 2015.
Suzlon continues to own 100 percent of its domestic assets and has a strategic presence in select overseas market, with only 5 percent of its shares held by lenders.
&#8220;There was a time our exports were more than our domestic revenue. Then, we went through a financial crisis forcing us to slow down our international business and stabilise whatever assets we have. 
But now that we have regained our market position, we are planning to re-enter international market shortly. We hope to get some orders as early as next quarter,&#8221; JP Chalasani, the chief executive of Suzlon told PTI.
<a href="https://mercomindia.com/suzlon-renew-power-wind-agreement/" target="_blank" rel="noopener">Recently</a>, the company secured a repeat order of 96.6 MW from renewable energy project developer <a href="https://renewpower.in/" target="_blank" rel="noopener">ReNew Power</a> for the development of a wind project in the state of Karnataka.
Wind installations have slowed down in India as the government announced the move from feed-in tariffs to reverse auctions. Competition to win auctions is intense. Trade disputes are also affecting the sector with the DGAD in <a href="https://mercomindia.com/dgad-recommends-imposition-anti-dumping-duty-imports-wind-turbine-castings-china/" target="_blank" rel="noopener">August 2017</a>, recommending anti-dumping duty on castings for wind-operated electricity generators originating in or exported from China.
<a href="https://mercomindia.com/suzlon-340mw-solar-commissioned/" target="_blank" rel="noopener">Suzlon has an international presence</a> in 18 countries across Asia, Australia, Europe, Africa, and north and south America. With an operational track record of over two decades, the group has a cumulative installation of over 17 GW of wind energy capacity, of which over 11 GW are in India.

Favorable Wind Markets Entice Suzlon to Re-Enter the Global Sector

Sindicatum Renewable Energy, a Singapore-headquartered renewable energy company, has raised ₹2.5 billion (~$39.3 million) through the sale of rupee-denominated international green bonds.
The bonds were issued in two tranches and have a maturity period of five and seven years, respectively. The guarantor of the issuance is GuarantCo, an international development finance institution headquartered in London.
With the closing of the bond, Sindicatum Renewables became the first Singaporean company to issue international green bonds in Indian rupees. The company intends to use the raised funds to finance renewable energy projects in India and refinance its existing debts.
The bond also marks a number of other firsts. It is also the first international green bond issued by a Singapore-based renewable energy company with a maturity period of seven years, and the first international green bond issued in accordance with both the <a href="https://www.icmagroup.org/green-social-and-sustainability-bonds/green-bond-principles-gbp/" target="_blank" rel="noopener">International Capital Market Association (ICMA)’s Green Bond Principles 2017</a> (GBP) and the <a href="http://www.theacmf.org/ACMF/upload/ASEAN_Green_Bond_Standards.pdf" target="_blank" rel="noopener">ASEAN Green Bond Standards</a>.
Sindicatum develops, owns, and operates renewable energy generation facilities in southern and southeastern Asia. Incorporated in 2013, the company’s portfolio as of November 2017 amounted to 307 MW.
“With a seven-year maturity, this bond will allow us to accelerate the pace of our investments in India’s clean energy infrastructure while protecting us from foreign exchange risk,” Assaad W. Razzouk, the chief executive officer of Sindicatum Renewables, said in a media statement.
“We hope that our innovative green bond will open the market for renewable companies to tap into investors’ demand for sustainable energy assets. This will accelerate the mobilization of sustainable finance for South and South-East Asia, a region at the front lines of suffering from climate change,” Assaad added.
Lasitha Perera, the CEO of GuarantCo said, “GuarantCo is committed to mobilizing capital markets to support the growth of infrastructure developers that operate in lower income countries. In line with this mission, it is our hope that the innovative synthetic local currency bond structure, developed for Sindicatum Renewables, will be replicated by other developers of critical infrastructure in lower income countries to access the international capital markets whilst mitigating currency risk.”
The Sindicatum offering comes eight months after the Asian Development Bank (ADB) issued its own rupee-denominated bonds in an effort to help finance climate change mitigation and adaptation projects in India. Mercom <a href="https://mercomindia.com/adb-raises-47-million-indian-bonds-fight-climate-change-india/" target="_blank" rel="noopener">reported</a> in May that ADB’s offshore bond offering raised ₹3 billion (~$47 million).
Image credit: Flickr

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