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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has unveiled a program to promote innovative production and utilization of green hydrogen across various sectors.</p>
<p>Announced on November 8, 2024, the initiative aims to support pilot projects exploring novel methods and pathways for green hydrogen production and use, particularly in residential, commercial, and decentralized applications.</p>
<p>The program has been allocated a budget of ₹2 billion (~$23.7 million) until the financial year 2025-26.</p>
<p>The National Green Hydrogen Mission, <a href="https://www.mercomindia.com/cabinet-approves-%E2%82%B9197-billion-hydrogen-mission" target="_blank" rel="noopener">launched</a> on January 4, 2023, with an outlay of ₹197.44 billion (~$2.3 billion), aims to position India as a global hub for producing, using, and exporting green hydrogen and its derivatives.</p>
<p>The MNRE proposes to implement pilot projects for producing or using green hydrogen to replace fossil fuels and fossil fuel-based feedstock.</p>
<p>The program focuses on exploring decentralized modes of green hydrogen production and utilization, supporting:</p>
<ul>
<li>Innovative ways of producing green hydrogen using floating solar, wastewater, and biomass.</li>
<li>Utilization of green hydrogen and its derivatives as fuel for decentralized applications – cooking, heating, off-grid electricity generation, off road vehicles (on a pilot basis).</li>
<li>Technical feasibility study of how green hydrogen performs as a fuel for residential and commercial applications such as city gas.</li>
<li>Demonstration of safe use of green hydrogen and its derivatives in other new sectors.</li>
</ul>
<p>These decentralized production methods offer advantages in reducing transportation requirements for end-use and optimizing resource utilization.</p>
<p>The program also emphasizes the use of industrial or municipal wastewater for hydrogen production to optimize water requirements.</p>
<p>The program&#8217;s utilization aspect includes replacing fossil fuel-produced hydrogen in ammonia production and petroleum refining, blending green hydrogen into city gas distribution systems, producing steel using green hydrogen, and using green hydrogen-derived synthetic fuels in the mobility, shipping, and aviation sectors.</p>
<p><strong>Implementation</strong></p>
<p>It will be implemented through designated implementing agencies, ensuring a transparent project selection process via calls for proposals.</p>
<p>The program also provides funding for equipment and retrofitting related to green hydrogen production and its applications, leveraging government entities&#8217; existing resources and infrastructure.</p>
<p>The program will be implemented through the following steps:</p>
<p><strong>Project Selection</strong>: Implementing agencies will identify suitable projects based on innovation, financial support requirements, scalability potential, and green hydrogen production capacity.</p>
<p><strong>Call for Proposals</strong>: The agencies will issue calls for proposals, with eligible executing agencies including central power sector undertakings (CPSUs), State-PSUs, non-government organizations, research institutions, and academic institutions.</p>
<p><strong>Evaluation and Award: </strong>Proposals will go through a multi-stage evaluation process. First, they will be screened by a committee within the implementing agencies.</p>
<p>Following this, a Project Appraisal Committee will evaluate the proposals.</p>
<p>Finally, the Advisory Group of the National Green Hydrogen Mission will review and approve the projects. Upon receiving administrative sanctions from the MNRE, the implementing agencies will issue a Letter of Award to the executing agencies.</p>
<p>The work will be carried out according to the approved scope, with implementing agencies aiming to complete the pilot projects within the timeline set in the Call for Proposal.</p>
<p>The executing agencies will be responsible for obtaining all required design, retrofitting, safety, environmental, and regulatory approvals. Additionally, the agencies must ensure compliance with necessary testing and certification standards from the relevant agencies.</p>
<p>In July, MNRE <a href="https://www.mercomindia.com/mnre-450000-mtpa-green-hydrogen" target="_blank" rel="noopener">issued</a> guidelines for incentive disbursement for up to 450,000 metric tons per annum of green hydrogen under Component II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.</p>


MNRE Issues Implementation Guidelines to Push Innovation in Green Hydrogen


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					</table><p>Maharashtra State Electricity Distribution Company (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) has issued a request for selection to set up pilot projects of 300 MW/ 600 MWh standalone battery energy storage systems in Maharashtra under tariff-based global competitive bidding.</p>
<p>The last date for submission of bids is August 26, 2024.</p>
<p>Bidders must pay a document fee of ₹29,500 (~$351.52). They must also furnish an earnest money deposit of ₹0.74 million (~$8,818) per MW.</p>
<p>Bidders selected by MSEDCL will also have to submit a performance bank guarantee for a value of ₹1.85 million (~$22,042)/MW.</p>
<p>The scope of work includes setting up a 600 MWh (300MW x 2 hrs) Battery Energy Storage System (BESS), with the primary objective of making the energy storage facility available to MSEDCL for charging/discharging the BESS on an “on-demand” basis.</p>
<p>The total project capacity will be located near substations of the MSEDCL network in Maharashtra. MSEDCL will allocate the land to the projects.</p>
<p>The minimum bid size is 100 MWh (50 MW x 2 hrs).</p>
<p>Only commercially established and operational technologies must be used in the project to minimize technology risk and achieve timely commissioning.</p>
<p>Bidders may indicate the selection of technology and its details at the time of submission of bids. The technology proposed when submitting the bid can be changed during financial closure.</p>
<p>MSEDCL will enter into a Battery Energy Storage Purchase Agreement with the successful bidders.</p>
<p>The net worth of the bidders should be equal to or more than ₹7.4 million (~$88.19 million)/MW of the quoted capacity.</p>
<p>If a consortium submits bids, the net worth to be met by each consortium member will be in proportion to the equity commitment made by each of them in the project company.</p>
<p>The successful bidders must guarantee a minimum system availability of 95% annually and pay liquidated damages for the shortfall, which will be twice the capacity charges for the capacity not made available.</p>
<p>MSEDCL had <a href="https://www.mercomindia.com/maharashtra-1150-mw-wind-solar-hybrid" target="_blank" rel="noopener">invited</a> bids to procure 1,150 MW of long-term wind-solar hybrid power from grid-connected intrastate projects with an additional greenshoe option of up to 1,150 MW earlier this year.</p>
<p>The Maharashtra Electricity Regulatory Commission recently <a href="https://www.mercomindia.com/merc-msedcl-procure-solar-thermal-power" target="_blank" rel="noopener">approved</a> MSEDCL’s plea to procure 5,000 MW of solar and 1,600 MW of thermal power.</p>


MSEDCL Invites Bids for 300 MW/600 MWh Battery Energy Storage Systems


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					</table><p>The <a href="https://steel.gov.in/" target="_blank" rel="noopener">Ministry of Steel</a>, under the recently <a href="https://www.mercomindia.com/cabinet-approves-%e2%82%b9197-billion-hydrogen-mission" target="_blank" rel="noopener">approved</a> National Green Hydrogen Mission, has invited research and development (R&amp;D) proposals to establish pilot projects focused on the production and utilization of green hydrogen within the iron and steel industry.</p>
<p>The ministry has earmarked a budget of ₹4.55 billion (~$55 million) specifically for the steel sector. These funds can be utilized for research, development, and demonstration activities and for setting up pilot projects for hydrogen production and utilization in the iron and steel-making processes.</p>
<p>The application of hydrogen in oxygen-rich induction (ORI) and blast furnace processes presents significant technical and economic challenges. However, these challenges also create opportunities for innovation and advancement within the industry.</p>
<p>The government aims to address these challenges by supporting projects that focus on the utilization of hydrogen in various processes, such as hydrogen-based ORI, redesigning electric arc furnaces (EAFs) to incorporate hydrogen-based ORI and hot metal transfer, adapting existing ORI plants for partial or full replacement of existing energy sources with hydrogen, and modifying designs, technologies, and machinery for hydrogen utilization in blast furnaces.</p>
<p>The proposals should cover a range of critical aspects related to the integration of hydrogen in iron and steel-making processes. The following areas should be considered:</p>
<ul>
<li>Simulation models on the use of hydrogen in iron production</li>
<li>Designing, spacing, detailing, testing, and validation of the design of machinery for new plants or for modifying and retrofitting existing designs for ORI, EAF, or components thereof</li>
<li>Hydrogen logistics in the steel-making environment for hazard mitigation</li>
<li>Pilot plans for the above</li>
</ul>
<p>Interested parties can submit proposals to the Ministry of Steel before the formal process of floating a mechanism is initiated.</p>
<p>The proposals should include a detailed project description, including its objectives, methodology, expected outcomes, and timelines.</p>
<p>An indicative budget for financial support required should be provided to access funding under the Green Hydrogen Mission.</p>
<p>Under the Green Hydrogen Mission, the <a href="https://www.mercomindia.com/government-mulls-mandating-green-steel-public-projects" target="_blank" rel="noopener">focus</a> of the steel sector until 2047 will be on green hydrogen and carbon capture. As part of the initiative, the Ministry of New and Renewable Energy has made the steel sector a stakeholder in the mission.</p>


Steel Ministry Invites Proposals to Set Up Green Hydrogen Pilot Projects

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