Green Light for Green Hydrogen: Kerala Secures Rs 34.84 Crore for Pilot Project

Kerala has been awarded Rs 34.84 crore funding for its green hydrogen pilot project in the transport sector, according to ETENergyWorld. Ministry of New and Renewable Energy (MNRE) is funding the project, while Automotive Research Association of India (ARAI), set up by the automotive industry with the Central government, will be approving the project, N Veluri, chief executive officer of Kerala government-run Agency for New and Renewable Energy Research and Technology (ANERT) told ETEnergyWorld.

The project consists of two fuel cell-based and two hydrogen internal combustion engine-based trucks and two hydrogen refuelling units.

The total cost of the project is estimated at Rs 40 crore, as per the report. Rs 34.85 crore, constituting 90 per cent of the total cost, is supported through viability gap funding (VGF). VGF is a Central government scheme which provides financial support in the form of grants to infrastructure projects undertaken through public private partnerships to make them commercially viable.

During the first two years, ANERT will bear the expenses related to green hydrogen fuel to subsidise operations. Under the project, two routes which are sanctioned are Thiruvananthapuram to Kochi and Kochi to Edappally, the report mentioned.

Also Read: Roadblocks Along The Way: What's Stopping a Green Hydrogen Transition

While automotive manufacturer Ashok Leyland will supply hydrogen trucks, Bharat Petroleum Corporation (BPCL) and Greenstat India will develop refueling infrastructure.

Kerala government aims to achieve net zero emissions by 2050 in the state and become a 100 per cent renewable energy state by 2040, with green hydrogen playing a pivotal role in the transition. Kerala's Green Hydrogen Policy is under the consideration of the state government and is expected to be announced soon, according to ANERT. 

The other green hydrogen projects in the state include setting up a green hydrogen plant in the Cochin International Airport premises. Under the agreement, BPCL will supervise the establishment of the plant and fuelling station, providing technology and managing the operations.

ReNew, a decarbonisation firm, last year proposed to invest Rs 26,400 crore in green hydrogen project with 220 kilo watt of production capacity in the state.

Also Read: Hydrogen Hype: How India Can power Its Green Game Through Electrolyser Manufacturing By 2030

Green Hydrogen forms a crucial component of India's decarbonisation plans. Under the National Green Hydrogen Mission launched in 2022, India aims to set up 5 metric tonnes per annum green hydrogen production capacity by 2030 and encourage its exports.