H2ePower Wins Oil India's 1 MW Green Hydrogen Project in Himachal Pradesh

H2ePower Systems wins Oil India’s 1 MW green hydrogen project in Himachal Pradesh, advancing India's renewable energy goals. Learn about the SIGHT program and green hydrogen developments in India.

H2ePower Systems has been awarded a major green hydrogen project in Himachal Pradesh by Oil India Limited (OIL), underlining India's growing commitment to renewable energy. The 1 MW green hydrogen project, which is set to be commissioned within 18 months, aims to generate 17 kg of hydrogen per hour using H2e's innovative steam electrolysis system based on Solid Oxide Fuel Cell (SOFC) technology. This new technology promises to deliver lower onsite hydrogen production costs compared to conventional methods.

Green Hydrogen in Himachal Pradesh: A Milestone for India's Renewable Energy Goals

In December 2023, Oil India initiated a tender for the development of a 1 MW green hydrogen facility in Himachal Pradesh. The project marks a key step in the company's broader renewable energy goals. By utilizing the H2e steam electrolysis system, the project can adjust its hydrogen output between 0% and 125% capacity, providing flexibility to meet changing energy demands. Additionally, the green hydrogen supply will be measured quarterly, and any shortfall in production will require the contractor to compensate the project owner, ensuring accountability in delivery.

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The Strategic Interventions for Green Hydrogen Transition (SIGHT) Program

This project falls under India's broader green hydrogen initiative, backed by the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. Launched in 2023 under the Green Hydrogen Mission, the SIGHT program has a budget of ₹174.9 billion (approx. $2.08 billion) to support green hydrogen projects across the country. The Ministry of New and Renewable Energy (MNRE) has set aside ₹3.99 billion (approx. $47.64 million) specifically for developing green hydrogen hubs and associated infrastructure. Two green hydrogen hubs will be established during the initial phase, aimed at supporting large-scale hydrogen production and utilization.

The MNRE defines green hydrogen as hydrogen with well-to-gate emissions of less than 2 kg CO2 equivalent per kg of hydrogen, a critical benchmark for sustainable hydrogen production.

Incentives and Regulatory Frameworks for Green Hydrogen

The Indian government continues to push for the development of green hydrogen. Under Component II of the SIGHT program, the MNRE has issued guidelines for the disbursement of incentives for up to 450,000 metric tons of green hydrogen production annually. These incentives are aimed at encouraging large-scale adoption of green hydrogen technologies in the country.

In August 2024, the National Institute of Solar Energy also invited proposals to create testing facilities, infrastructure, and institutional support to establish standards and regulatory frameworks for green hydrogen under the National Green Hydrogen Mission.