Australia’s Fortescue Future Industries (FFI) has signed a memorandum of understanding with Indian EPC firm Thermax to jointly explore the development of green hydrogen projects and component manufacturing facilities in India.

The two firms note that India’s recently approved National Green Hydrogen Mission includes incentives for setting up new manufacturing capacity within the country, which could be used to meet both domestic and international electrolyser and subsystem demand.

The government has budgeted $2.43bn towards accelerating the Indian hydrogen sector, with around $2.16bn allocated for domestic green hydrogen production and electrolyser manufacturing. To participate in competitive bidding for green hydrogen and its derivatives, developers will have to meet eligibility criteria, including the use of government-approved equipment.

“The collaboration… is perfectly timed to leverage the massive potential of the Indian green energy market” Bhandari, Thermax

India has also set a target of 5mn t/yr of green hydrogen production by 2030, displacing current grey hydrogen consumption. The government plans to reduce both electrolyser capex and renewable electricity costs to bring the cost of green hydrogen into parity with grey for use in refining and fertiliser manufacture by 2027.

“The collaboration with Fortescue Future Industries is perfectly timed to leverage the massive potential of the Indian green energy market that presents a multitude of opportunities, backed by favourable policies and incentives,” says Ashish Bhandari, CEO of Thermax.

FFI is due to open its first electrolyser gigafactory in Gladstone in the Australian state of Queensland in 2023. US electrolyser manufacturer Plug Power announced its exit from the project earlier this year, and FFI last September announced a partnership with the US government-backed National Renewable Energy Laboratory (NREL), in which the Australian firm expects to invest $80mn over the next ten years—although NREL has clarified the initial phase of the partnership will last three years. The partnership includes “an extensive R&D program for water electrolysis” to support FFI’s electrolyser manufacturing ambitions, according to NREL.

---

Author: Polly Martin