Kerala to Set Up INR 18,542 Crore Green Hydrogen Valley Project in Kochi
Kerala is launching a major green hydrogen valley project in Kochi, with an investment of INR 18,542 crore. The initiative will develop electrolyser and ammonia plants, renewable energy infrastructure, and create 3,600 jobs. Phased over 2024-2040, the project aims to reduce carbon emissions and scale green hydrogen adoption, supported by INR 731 crore in government funding.
Kerala is set to launch an ambitious green hydrogen valley project in Kochi, with a substantial total investment of INR 18,542 crore aimed at establishing a comprehensive green hydrogen valley.
The initiative will allocate INR 4,166 crore specifically for the development of electrolyser and ammonia plants, while INR 12,687 crore will be dedicated to enhancing renewable energy infrastructure.
The project will be executed in three distinct phases viz. Phase I, commencing in 2024-2025, will concentrate on developing green hydrogen clusters alongside renewable energy infrastructure to support industrial electrification. This initial phase is crucial for establishing the foundation for the broader application of green hydrogen within various sectors.
Phase II is set to take place from 2026 to 2030, will focus on deploying advanced green hydrogen technologies. This phase will continue the development of renewable energy sources, integrating more sophisticated systems to facilitate industrial energy needs.
Finally, Phase III, which will span from 2030 to 2040, aims to significantly scale up the utilisation of green hydrogen across industries. This phase will involve the expansion of electrolyzer capacity, the establishment of new ammonia plants, and the development of essential infrastructure to support the widespread adoption of green hydrogen technologies.
Government funding for this groundbreaking project is expected to reach INR 731 crore, which will cover crucial aspects such as techno-commercial assessments, transmission infrastructure, pipeline and refueling systems, and offtake infrastructure. Furthermore, the project roadmap outlines a subsidy requirement of INR 1,055 to INR 2,908 crore to bridge the viability gap for green hydrogen during the second and third phases.
Investment in hydrogen production, infrastructure development, and grid transmission will total INR 56 crore in Phase I, INR 669 crore in Phase II, and a substantial INR 5,130 crore in Phase III, according to the Kochi Green Hydrogen Valley roadmap. The project is projected to create approximately 3,600 jobs and help reduce Kerala’s carbon emissions by 0.49 million tonnes, translating to a 2 percent reduction in overall emissions.
ANERT (Ayurveda Natural Energy Resource Technology) will act as the nodal agency overseeing the entire project, supported by the formation of the Kerala Hydrogen Council and the establishment of a subsidiary company, Kerala Green Hydrogen Hub. Kochi’s hydrogen valley will place a strong emphasis on green ammonia production, with anticipated demand reaching 71 kilotonnes per annum (ktpa) of green hydrogen and 625 ktpa of green ammonia by 2040. Key offtakers for this initiative include major players such as BPCL (Bharat Petroleum Corporation Limited), KSRTC (Kerala State Road Transport Corporation), and HOCL (Hindustan Organic Chemicals Limited), amongst others.
It may be noted that, in 2022, the India Hydrogen Alliance (IH2A) and the Government of Kerala announced their collaboration to evaluate a proposal for the Kochi Green Hydrogen (KGH2) Hub, aiming to establish a large-scale green hydrogen hub with multiple applications in the region.
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