NTPC considering 50% green hydrogen blending at gas-power units: Officials

The country’s largest power generator, NTPC, is considering blending green hydrogen at its gas-based power generation units, for up to 50 per cent of the total fuel requirement, Business Standard has learnt.

Company executives said this will help meet the gas supply deficit at their units. The proportion of green hydrogen blended will also translate into a similar amount of green power generated from the unit, thereby increasing the NTPC’s renewable energy footprint.

Executives said the original equipment manufacturers (OEMs) have informed the company that blending up to 5 per cent will not require any changes in the turbine design but going forward a retrofit might be needed. NTPC would initially do a pilot with grey hydrogen (produced from conventional energy sources) and then move to green hydrogen.

“The idea is to understand what amount of hydrogen will be needed. Through our pilots, we would ascertain the green hydrogen that the company’s renewables arm needs to produce and supply. We would start with 3-5 per cent blending,” said an executive.

NTPC recently signed separate MoUs with three of its OEMs — Mitsubishi Heavy Industries, GE and Siemens — to explore the possibility of hydrogen blending at its gas units. Auraiya (663 Mw), Kawas (645 Mw) and Faridabad (430 Mw) gas-based power generation units have been identified for the blending pilot.

The company has formed a separate arm for green energy – NTPC Green Energy Ltd (NGEL) — which would have all green energy business and projects of NTPC. The company will undertake solar and wind power production, green hydrogen manufacturing, battery storage, etc. NGEL has been targeted to have a 60-Gw renewable energy portfolio by 2032.

The move to blend hydrogen also comes at a time when the Centre is mulling revival of gas power plants to run as peaking units in the coming high demand summer months. The Union power ministry is looking to designate 2.5 gigawatts (Gw) of NTPC’s gas power capacity as peaking power stations. Under the scheme, gas would be sourced by GAIL in advance and would be completely paid for, even if left unutilised, this paper reported recently.

The ministry plans to set up a fund for this scheme, from which it will pay for the unused gas. NTPC has a gas-based power generation capacity of 4 Gw that it runs on its own, and another 2.5 Gw through joint ventures. However, with GAIL facing gas supply constraints, especially with the Gazprom tap shutting off for another 12 months, it is expected the alternative sources will come at higher rates.

Hydrogen blending, if successful, could pave the way for further revival of the gas-based power generation units in the country. Of the 24,150 Mw of gas grid-connected power generation capacity in the country, 14,305 Mw has no domestic gas supply. On this front, an investment of over Rs 65,000 crore is on the verge of becoming a non-performing asset. The remaining capacity (9,845 Mw), involving an investment of about Rs 40,000 crore, is working at a sub-optimal level, due to the limited quantity of domestic gas in India.

The Centre in 2016 floated a reverse e-auction process for power plants to avail of subsidy on purchase of costly imported Regasified LNG (RLNG). This involved a reverse bid for the subsidy amount to come from PSDF to buy the RLNG. The scheme was stopped in 2017, to be restarted in 2019, with twice the fund amount of Rs 1,000 crore under the PSDF. It has not been revised after that, leaving gas-based units languishing for want of gas and funding.

Gas-based power generation accounts for six per cent of India’s total installed capacity of 408 Gw.

Green push

• India's largest power producer considering upto 50% blending in gas based power plants. 
• To start pilot at three units - Auraiya, Kawas and Faridabad
•  MoU with three OEMs - Mitsubishi, Siemens and GE to explore extent of hydrogen blending 
• 3-5% blending possible without any retrofit. 
• NTPC aims to have a 60 GW green energy portfolio by 2032. New formed entity NGEL to explore green hydrogen manufacturing