JSW Energy expects to commission its pilot green hydrogen project in the fourth quarter (March) of this fiscal, Chief Executive Officer Sharad Mahendra told Moneycontrol in an interview.
Mahendra added that the company is keeping a close eye on the sector but expansion depends on returns.
The pilot project has a capacity of 3,800 tonnes a year using 25MW of renewable electricity and the produced hydrogen gas will be supplied to JSW Steel's manufacturing facilities through pipelines. As of now, the company said that the detailed engineering work and ordering of equipment have been completed.
JSW Energy has signed a seven-year contract with JSW Steel for supplying green hydrogen and green oxygen to produce green steel.
Further, the company has signed a memorandum of understanding with the steelmaker to supply 90,000 tonnes of green hydrogen, along with 720,000 TPA (tonnes per annum) of green oxygen, by 2030.
Additionally, the company has been allotted a capacity of 6,800 TPA under the Strategic Interventions for the Green Hydrogen Transition (SIGHT) programme by the Solar Energy Corporation of India (SECI), it said in a separate statement.
When asked about expansion plans, Mahendra said, "We do have plans of expanding in this space but yes, as we have been saying earlier also that as and when we get our desired benchmark returns, we will definitely be expanding and we are watching this space very closely."
Mahendra also added that the company is ready to engage with other players provided a longer term contract is signed and the investment yields "desired returns".
"We feel that in the coming few years, this (green hydrogen) is going to be a requirement and then there will be a lot of consumers," he said.
India introduced its Green Hydrogen Policy in 2022, with the primary aim of promoting the production and use of green hydrogen in the country. The mission is part of India's broader efforts to transition to renewable energy and reduce its carbon footprint.
In addition to green hydrogen, the company has also commenced the construction of the 1.0 GWh Battery Energy Storage System (BESS) project awarded by SECI with commissioning expected by June 2025.
JSW Energy has a total locked-in generation capacity of 13.3 GW, of which 7.3 GW is operational, 2.6 GW is under-construction across wind, thermal and hydro and 3.4 GW is in the pipeline.
The company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030.
Post elections outlook
JSW Energy expressed confidence in the stability and continuity of India's energy policies despite the formation of a new coalition government. Mahendra highlighted significant policy reforms over the past two to three years that have benefited power consumers, distribution companies (discoms), and power generators.
"I'm confident that the fundamentals remain good for the country, India as a country, and the economic growth will continue to be there...I'm not seeing any effect on the power sector in general, and also on our plans for growth plan," Mahendra said.
