FCC

Kerala govt receives proposals for Green Hydrogen, Ammonia Plants

2023-08-02

Two major companies have approached the government of Kerala with proposals to establish green hydrogen and green ammonia production plants for both domestic and export purposes.

The first company's proposal entails exporting one lakh tonnes of green ammonia to Germany from the Vizhinjam Adani port. They plan to create an integrated renewable energy project capable of meeting the round-the-clock energy requirements of the green ammonia plant. This unique project in Kerala will consist of a solar installation paired with a pumped hydro storage facility within the state. The pumped-storage power plant, responsible for providing round-the-clock renewable energy, will be funded by the Kerala State Electricity Board, following the state policy. The green ammonia production facility is expected to have an annual output of 2,00,000 tonnes, and its power demands will be met through a 1,200-MW solar capacity integrated with a closed loop pumped hydro storage plant of 1,500 MW/12,000 MWh capacity. The total investment for this project is estimated to be Rs 220.61 billion. The project sites have already undergone preliminary identification and analysis.

The second company's interest lies in establishing a 252-MW electrolyser plant alongside a green hydrogen and ammonia generation plant. The company plans to develop the plant in phases with a capital expenditure (capex) investment of Rs 87.63 billion. The green hydrogen or ammonia produced by this plant will be made available to local consumers, the government, refineries, and fertiliser companies at market rates, and it can also be exported.

In the initial phase, the company proposes setting up a 2-MW electrolyser and a five-tonnes-per-day ammonia production plant, which will require a fixed capex cost of Rs 800 million, with the total estimated expense being Rs 1,150 million. After the completion of this phase, the plant will produce 36 kg per hour of green hydrogen and 288 kg per hour of ammonia.

Earlier in the year, the Kerala state government released a draft of its green hydrogen policy and announced Rs 2 billion schemes for establishing green hydrogen hubs in Kochi and Trivandrum.