ACME and City Gas Distribution Company Indraprastha Gas Limited (IGL) recently inked a memorandum of understanding (MoU) to jointly study the potential commercial possibilities of Green Hydrogen, according to an exchange filing.
The companies will also investigate the possibility of establishing hydrogen producing units, including the installation of electrolyzers to blend Green Hydrogen into IGL’s existing pipeline networks delivering petrol to houses, industrial and commercial installations and CNG for automobiles.
The collaboration would benefit both companies, as ACME will provide its knowledge and expertise, while IGL, as a green energy distributor to many cities and millions of homes, has a ready-made network for blending green hydrogen.
ACME will also co-operate on policy matters and help the industry and government to bring in an enabling regulatory framework that facilitates and incentivizes the customers to provide long term off-take commitments for green hydrogen and green ammonia.
In conjunction with IOCL, IGL has previously completed a Hydrogen Enriched Compressed Natural Gas (H-CNG) Pilot Project in Delhi. Green Hydrogen in the automobile sector is currently in its infancy, and IGL, as a leading city gas distribution company, wishes to investigate the possibilities of Green Hydrogen in the automobile sector, as well as the production of Green Ammonia from Green Hydrogen, which has the potential to be another business vertical for IGL.
Moreover, recently, the Government of India has released several incentives for production of Green Hydrogen, which will help to attain commercial viability of Green Hydrogen/ Green Ammonia in future.
Reference- Mercom India, Economic Times, Business Standard, The Indian Express