Fusion Fuel Green, an Ireland-headquartered green hydrogen technology company, today announced it has signed a memorandum of understanding (MoU) with Indian EPC contractor BGR Energy Systems to develop green hydrogen projects in India.
The two partners would first establish a small demonstrator plant in India in 2021. After that, they plan to co-develop larger-scale projects in the region to supply hydrogen for green ammonia and bio-ethanol production and as a feedstock for other heavy industrial applications.
Fusion Fuel will install the demonstrator facility for BGR Energy in the Cuddalore district of Tamil Nadu in the second half of 2021. The facility would use its HEVO-SOLAR technology to generate cost-competitive green hydrogen.
The companies would then co-develop projects throughout India, leveraging BGR Energy’s extensive client network and existing commercial footprint. They will also explore broader areas of potential cooperation, given BGR Energy’s broad competencies in the energy, environmental and industrial sectors.
BGR Energy has developed more than 12 GW of power plants and balance-of-plant-related services in India. It also has substantial capabilities in the design and manufacture of high-tech equipment.
“[This makes] BGR well-positioned to take the lead in developing green hydrogen production infrastructure in the region,” read the company statement.
Nearly all hydrogen used today is created through the steam reforming process using gas or coal as base fuel. This process generates large amount of CO2. Traditional steam reforming with gas can generate 9 tonnes of CO2 for every ton of hydrogen produced. With coal, the emissions levels are substantially higher, Fusion Fuel Green writes on its website.
Fusion Fuel claims to have developed its proprietary electrolysis solution using solar energy to create hydrogen with zero carbon emissions. The system allows for the production of green hydrogen at the same cost levels as brown hydrogen.
Enabling cost-effective domestic production of green hydrogen is critical for India to reduce the carbon intensity of heavy industry and help achieve its energy security and emissions targets—as virtually all the hydrogen consumed in India today is grey hydrogen, the production of which emits roughly 9 tons of CO2 per ton of hydrogen.
Hydrogen plays a critical role in the Indian economy, with roughly 6 million tons of hydrogen consumed annually, primarily in the production of ammonia and methanol and for use in refineries. A recent study from The Energy and Resources Institute estimated that demand could grow to as much as 28 million tons by 2050.
João Wahnon, Fusion Fuel’s Head of Business Development, said, “We are excited to open up this new market for Fusion Fuel and develop India as a leader of the global hydrogen economy. We could not ask for a better partner in this undertaking than BGR Energy, with its extensive experience developing turnkey solutions in India’s power and industrial sector.”
Arjun Govind Raghupathy, Managing Director of BGR Energy commented, “BGR Energy has long been an innovator in India’s energy and industrial sectors, and we are excited now to be taking these steps to establish a foothold in the burgeoning green hydrogen industry. We look forward to working with Fusion Fuel to scale the development of local green hydrogen production and play a leading role in creating a green hydrogen ecosystem in the region.”
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