Energetica India Magazine March 2022
energetica INDIA- Mar_2022 45 HYDROGEN interest and manages to compete with both fossil fuels and other types of hy- drogen, because it is the only zero-car- bon option. NextChem has also developed the Green Circular District model in which integrates Upcycling technology and chemical recycling of plastic waste and dry waste into syngas and “circular” chemicals with technologies to produce hydrogen from renewable sources by electrolysis. The g\Green Circular Dis- trict model is mainly aimed at the green recovery of industrial brownfield sites, above all in the petrochemical and steel sectors. The aim of the Green Circular District is to replace fossil sources in in- dustrial processes (such as natural gas or hydrogen from methane) with feed- stocks (renewable or circular) with a lower carbon footprint, which allows to reduce CO2 emissions of industrial sites and to increase the recycling, improving circular economy. Journey so far India’s journey into the green hydrogen space has been path-breaking so far. Currently, the industry faces some chal- lenges such as high cost of production but owing to increased demand, tech- nology upgradation and strong govern- ment support, the industry will soon establish economies of scale, driving down the cost. In line with India’s Make in India initiative and its net zero emis- sion targets, the sector provides tremen- dous scope for growth and investments. Despite some impediments, the biggest support came from the government it- self, when it announced the National Hydrogen Mission last year to focus on meeting its climate targets. In line with India’s ambitious green commitments, Prime Minister Narendra Modi had also highlighted that green hydrogen will play an active role as an alternate fuel to petroleum/ fossil-based products for transforming India into an energy inde- pendent nation by 2047. Last year, a report by TERI (The Ener- gy and Resources Institute, New Delhi) showed that India’s hydrogen demand stood at 6 million Tons (MT) per year. It is estimated that by 2030, the hydrogen costs will be down by 50 per cent and de- mand for hydrogen is expected to see a 5-fold jump to 28 MT by 2050 where 80 per cent of the demand is expected to be green in nature, said the report. Many Indian companies have already started announcing their plans to dip their toes in the green energy sub-sector. Technology tie-ups Maire Tecnimont Group, too, has un- dertaken several green hydrogen initia- tives over the past two years in several countries across its presence. In India, the Group is executing a project with Adani Enterprises by utilizing its sub- sidiaries NextChem and Stamicarbon’s technologies for producing chemicals, ammonia and hydrogen from renewable feedstock. Similarly, the Group is also working towards bringing down emission levels in the fertilizer industry also. In Ken- ya, the Group has signed an agreement with Oserian Development Company for the development of the plant. The renewable power-to-fertilizer plant will support Kenya’s low carbon and inclu- sive growth, its agricultural output and its smallholder farmers and commu- nities. The facility will reduce carbon emission with approximately 100,000 tons of CO2 per annum, compared to a gas-based fertilizer plant. The project will also reduce the dependency of im- ported nitrogen fertilizers. Further, in the US, the Group is already executing a project with Enel Green Power North America, Inc. (EGPNA) under which the North American firm will leverage NextChem’s hydrogen technology and engineering expertise to grow its green hydrogen business in the US. The project, which is expected to be operational in 2023, will convert renew- able energy from one of EGPNA’s solar plants in the United States into green hydrogen to be supplied to a bio-refin - ery. Even as the world is looking at green hydrogen as a solution for decarboni- sation, green hydrogen remains far-off from being a significant contributor to the global energy supply. The notion that the global energy sector is about to usher in the era of green hydrogen is distorting the significant challenges and barriers that must be overcome still.
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