Kochi's Green Hydrogen Valley to Attract ₹18,542 Crore Investment

Kochi’s Green Hydrogen Valley to attract ₹18,542 crore in investments for renewable energy and hydrogen production. Learn about Kerala’s roadmap for clean energy, job creation, and emission reduction.

The Kochi Green Hydrogen Valley project in Kerala is poised to become a major hub for green hydrogen production, with an estimated capital investment of ₹18,542 crore. Of this, ₹4,166 crore will be allocated for the development of electrolyser and ammonia plants, while ₹12,687 crore will be dedicated to renewable energy (RE) infrastructure.

Breakdown of Investments and Phases According to the Kochi Green Hydrogen Valley Roadmap, an additional ₹669 crore will be spent on pilot projects, with ₹5,130 crore required for the scale-up phase. These figures exclude investments in renewable energy, which will be a critical component of the initiative. The roadmap also outlines the need for ₹731 crore in government funding, with allocations including ₹45 crore for techno-commercial assessments, ₹351 crore for transmission infrastructure, ₹264 crore for pipelines and refueling stations, and ₹70 crore for offtake infrastructure.

The subsidy required to bridge the viability gap for green hydrogen is estimated between ₹1,055 crore and ₹2,908 crore in Phases II and III, respectively.

Key Development Phases

The project will be rolled out in three phases:

• Phase I (2024-2025): Focus on creating green hydrogen clusters and initiating RE infrastructure for industrial electrification.

• Phase II (2026-2030): Scaling up renewable energy projects within Kerala, alongside the deployment of electrolysers for hydrogen production.

• Phase III (2030-2040): Major upscaling efforts, including the construction of ammonia plants and the expansion of hydrogen and ammonia infrastructure.

The project is expected to generate around 3,600 jobs and reduce carbon emissions by 0.49 million tonnes (Mt) CO₂ equivalent, accounting for approximately 2% of Kerala’s overall emissions.

ANERT to Lead the Initiative

The Agency for New and Renewable Energy Research and Technology (ANERT) will serve as the nodal agency overseeing all phases of the Kochi Green Hydrogen Valley project. The agency will engage key stakeholders, manage the project's implementation, and establish the Kerala Hydrogen Council and the Kerala Green Hydrogen Hub subsidiary.

Green Hydrogen Demand and Supply By 2040, the Kochi Green Hydrogen Valley is projected to meet a demand for 71 kilotons per annum (ktpa) of green hydrogen and 625 ktpa of green ammonia in the aggressive scenario. The valley will also cater to significant hydrogen demand from various sectors, including refineries, fertilizers, chemicals, and transport hubs within Kerala.

In terms of renewable energy, the project will leverage India's best RE resources, alongside centralized hydrogen production and refueling infrastructure. The project’s primary offtakers include major corporations such as BPCL, FACT, HOCL, and KSRTC, with additional potential for hydrogen exports.