JSW Energy Limited has set up the green hydrogen plant, the largest in India, at Vijayanagar, Karnataka, which is a significant milestone in the country's clean energy transition. This facility, made possible through the National Green Hydrogen Mission and the Production Linked Incentive (PLI) Scheme by the government, is going to export green hydrogen to the Direct Reduced Iron (DRI) unit of JSW Steel to generate low-carbon steel, thereby cutting down the carbon footprint of the steel industry.
The company, in its announcement, stated that the project is under Tranche I of the National Green Hydrogen Mission PLI scheme. JSW Energy will supply 3,800 tons per annum of green hydrogen to JSW Steel under a seven-year offtake agreement
JSW Energy in an offtake agreement for seven years will supply green hydrogen and oxygen up to 3,800 tons per annum (TPA) and 30,000 TPA, respectively, to JSW Steel. The company mentioned that the item forms part of the 6,800 TPA allotment made to them under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme carried out by the Solar Energy Corporation of India (SECI).
Moreover, the company has entered into a Memorandum of Understanding (MoU) with JSW Steel to progressively raise the supply to 85,000-90,000 TPA of green hydrogen and 720,000 TPA of green oxygen by 2030.
This growth is in line with India's target to manufacture around 5 million tons of green hydrogen per annum by 2030.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said, “We are proud to commission India's first green hydrogen plant under the National Green Hydrogen Mission, implemented through the SIGHT programme by the Government of India. The project is a key milestone in our country's clean energy journey and reflects our unwavering commitment to support India's transition toward a low-carbon economy and decarbonisation of hard-to-abate sectors such as steel. Green hydrogen will assume a pivotal role in shaping a sustainable and Atmanirbhar Bharat.”
JSW Energy has a total of 30.5 GW of locked-in generation capacity at present — 13.3 GW operational and 12.5 GW under construction, in a mix of both thermal and renewable projects. In addition, the company has 150 MW under acquisition in hydropower and a 4.6 GW pipeline.
The company owns 29.4 gigawatt-hours (GWh) of locked-in energy storage capacity, out of which 26.4 GWh is through hydro pumped storage, and 3.0 GWh is through battery systems.
By commissioning this plant, JSW Energy has extended its leadership in the Indian clean energy sector. The company will aim to achieve 30 GW of generation capacity and 40 GWh of energy storage capacity by FY 2030, as well as carbon neutrality by 2050.
The commissioning is timed well with India's move to speed up its worldwide green hydrogen leadership ambition under the National Green Hydrogen Mission. The Mission is designed to transform India into a green hydrogen production, consumption, and export hub, besides providing a zero-carbon solution for industries such as steel, chemicals, and transportation.
JSW Energy’s project is one of the pioneering industrial-scale implementations to be carried out under the Mission, which will transition renewable power directly to the industrial use of hydrogen — a necessary step in the advancement of India’s low-carbon manufacturing ecosystem.
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