India's Bihar state approves green hydrogen policy

Market: Hydrogen
01/10/26

India's eastern state of Bihar has approved its green hydrogen policy, aiming to produce 100,000 t/yr of renewable hydrogen by 2031.

The move formalises a framework first released in draft form in April.

The state cabinet approved the policy on 30 September which aims to support deployment of 1GW of electrolyser capacity and 2.5GW of renewable energy capacity dedicated to hydrogen and ammonia production. The state estimates the policy could attract around 160bn Indian rupees ($1.66bn) of investment.

Under the policy, electrolysis-based hydrogen projects will be eligible for reimbursement of 10pc of capital expenditure, capped at Rs10mn/MW, while biomass-based hydrogen projects will also qualify for capital support. Incentives are also available for hydrogen refuelling stations and hydrogen-powered transport.

Projects will receive exemptions from electricity duty, state goods and services tax, transmission and wheeling charges, stamp duty and land conversion fees. The state also plans to introduce a single-window clearance mechanism and fast-track approvals for environmental permits, grid connectivity and open-access arrangements.

The policy identifies fertiliser and refinery sectors as initial demand centres for renewable hydrogen, while also targeting future use in chemicals, steel, heavy transport, energy storage and city gas distribution. Infrastructure development, including pipelines and industrial clusters near consumption centres, is also planned. The target of 100,000 t/yr may be ambitious given that Bihar is not currently home to any advanced renewable hydrogen or ammonia project plans.

By Anmol Choubey

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30/09/26

India’s AM Green wins H2Global Asia ammonia contract

New Delhi, 30 September (Argus) — Indian renewable ammonia developer AM Green has won the Asian lot in the second round of Germany's H2Global programme, with ammonia to be supplied from the second phase of its Kakinada project in Andhra Pradesh. H2Global's implementing agency Hintco selected AM Green as the sole winner of the Asia lot, awarding the company a 10-year purchase agreement for renewable fuels of non-biological origin (RFNBO) ammonia with a minimum value of €585mn. Deliveries are expected to start in 2029, but volumes or delivered prices have not been disclosed. Hintco said it may buy additional volumes using proceeds generated through sales into the European market, which will be carried out through separate buy-side auctions. The award forms part of H2Global's second auction round , which opened in 2025 with funding of €2.5bn and included separate regional procurement lots covering Asia, Africa, North America and South America/Oceania. Bidding rounds closed in March 2026. Hintco expects to publish full auction results, including for the other lots, later this year. UAE-based fertiliser company Fertiglobe was the sole winner of a first round held in 2022-23. The firm is due to deliver 397,000t to Germany in 2027-33 at a price of €1,000/t, but buy-side auctions for the supply have yet to be held. AM Green took a final investment decision on the Kakinada plant in 2024. The firm plans to set up 500,000 t/yr ammonia production capacity in a first phase and to double this in the second stage. Output from the first phase is already covered by a binding offtake agreement with German utility Uniper . The H2Global award therefore provides an offtake route for additional production capacity beyond volumes already committed under the Uniper agreement. But the funds would arguably cover less than 20pc of planned production from the plant's second phase. In India's tender for domestic renewable ammonia supply , winning bids were in a range of 49.75-64.74 rupees/kg, which equates to $519-675/t or €457-595/t. Based on this range, the €58.5mn/yr could support 98,300-128,000 t/yr. But delivered costs to Germany would also have to account for freight. Adding $200/t, or €176/t, for freight costs would reduce the range to 75,900-92,400 t/yr. Moreover, providing RFNBO-compliant supply — which was not a requirement in India's tender — could be considerably more expensive. Argus calculates RFNBO-compliant production costs for India at $800/t, or €705/t. At this level, the €58.5mn/yr might only suffice for 66,400 t/yr, again assuming $200/t in freight costs. AM Green is converting an existing gas-based ammonia and urea complex at Kakinada into the renewable ammonia production facility. The plant will use alkaline electrolysers from Belgian firm John Cockerill's Chinese branch, powered by renewable electricity and backed by pumped-hydro storage. By Anmol Choubey and Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Q&A: Redstack eyes RED technology for India H2 hubs

30/09/26

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30/09/26

Q&A: Redstack eyes RED technology for India H2 hubs

New Delhi, 30 September (Argus) — Dutch company Redstack is seeking to establish its first pilot project in India, targeting integration of its reverse electrodialysis (RED) technology with desalination facilities in coastal regions. The firm's technology generates electricity from differences in water salinity and could eventually supply round-the-clock renewable power to hydrogen and ammonia projects located near ports. Argus spoke with Redstack India director Geeta Singh about project development, the path to commercialisation and opportunities for integration with hydrogen projects on the sidelines of the S&P Global Horizons Clean Energy Expansion India 2026 conference. Edited highlights follow. What are Redstack's plans for India? We have been seeking to establish an Indian pilot project for more than three years. Our preferred route is to integrate with an existing desalination facility because that would involve fewer regulatory approvals than developing a project directly at a river-ocean confluence. We are discussing opportunities with potential partners and remain open to locations across India's coastline. At this stage, we do not have a preferred state or site. How close is RED technology to commercial deployment in India? We are still some distance from full commercialisation. Our immediate objective is to establish a first pilot project in India that can demonstrate the technology and show that it is ready for larger-scale deployment. The pilot would showcase the full process flow required for future megawatt-scale implementation. One advantage of RED technology is that scaling up is relatively straightforward because capacity can be expanded without requiring a large horizontal footprint. What economics do you expect from the first commercial RED projects? We estimate that a first commercial-scale project could produce electricity at around 18 Indian rupees/kWh ($0.19/kWh). As membrane costs decline and membrane technology improves, we expect costs to fall over time. With continued innovation, we believe generation costs could eventually decline to around Rs5/kWh over a period of roughly 10 years from the first commercial project integration. How does RED compare with batteries and pumped hydro storage? We do not view RED as directly competing with solar, wind, batteries or pumped hydro. These technologies have already been deployed commercially at scale and have decades of operating history. Our technology is still at a stage where it must demonstrate commercial viability. We see RED as a complementary power source that can generate stable, round-the-clock renewable electricity without requiring battery energy storage. What are the main limitations on deployment? The key requirement is access to two different water sources. Projects need to be located near the coast where seawater is available, while also having access to freshwater, treated wastewater from sewage treatment plants or desalination-related water streams. Apart from that, we do not see major technical limitations. Power generation can be controlled through water flows within the system, allowing stable electricity output. How large could the Indian market become? Based solely on locations where rivers meet the ocean, we estimate a potential market of around 19-20GW in India. As more desalination projects are developed, we believe the market opportunity could become significantly larger. Could RED support hydrogen and ammonia production projects? Yes. One potential application is supplying renewable electricity to hydrogen and ammonia projects located near ports. If a project already has access to seawater and desalination infrastructure, electricity could potentially be generated close to the point of hydrogen production rather than being transmitted from distant renewable energy projects. We believe this could help support renewable hydrogen developments that are looking for dedicated sources of renewable electricity. What policy changes would have the biggest impact on deployment? Marine-based renewable energy projects are subject to multiple regulations and charges. One issue is that various cess and water-related charges may apply even when water is not consumed and is simply passed through the RED system. A clearer regulatory framework for technologies such as RED, tidal and wave energy could help accelerate deployment. What will determine the pace of commercial deployment in India? We do not believe site availability will be a major constraint because India's coastline offers numerous potential locations. We also believe financing should become easier once the technology gains broader acceptance. The more immediate challenge is educating stakeholders about the technology and establishing the ecosystem needed for commercial deployment. What milestones would demonstrate the technology is commercially viable? We already believe the technology is ready for larger-scale deployment, which is why we are pursuing projects in India. We currently operate two pilot projects in Europe. One is located in the Netherlands at the confluence of the Rhine River and the North Sea and is the largest RED project developed to date. The second is in Spain, where desalination wastewater is combined with treated wastewater streams. By Anmol Choubey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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EEA includes EU CBAM in agreement

28/09/26

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28/09/26

EEA includes EU CBAM in agreement

London, 28 September (Argus) — The European Economic Area (EEA) committee has now included the EU's carbon border adjustment mechanism (CBAM) in the EEA agreement, enabling the scheme to apply in Norway and Iceland, the Norwegian government said. "CBAM is one step closer to coming into force in Norway," climate and environment minister Sigrun Aasland said. The country's parliament in June adopted legislation to introduce CBAM. Norway aims to apply CBAM "in full" from 2027, it said, which would require importers to submit their first declarations in 2028 for goods imported in 2027. The Icelandic parliament must still approve the incorporation before CBAM can take effect there. The measure is being taken as "quickly as possible", the government said, adding that it is in close contact with Iceland's authorities. The EU fully launched CBAM at the start of this year. The mechanism imposes a carbon price on certain goods imported to the bloc in the cement, aluminium, fertiliser, iron and steel, hydrogen and electricity sectors. It aims to tackle carbon leakage, whereby firms relocate to avoid carbon costs or more carbon-intensive imports displace EU products. Norway, along with fellow EEA countries Iceland and Liechtenstein, is subject to carbon costs in CBAM sectors under the EU emissions trading system. By Kiara Campagne Nieva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Uniper agrees 40,000 t/yr e-SAF offtake with Arcadia

23/09/26

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23/09/26

Uniper agrees 40,000 t/yr e-SAF offtake with Arcadia

Paris, 23 September (Argus) — German utility Uniper has signed a binding agreement to buy 40,000 t/yr of synthetic sustainable aviation fuel (e-SAF) from US developer Arcadia eFuels' Endor project in Vordingborg, Denmark, the companies said today. The agreement runs for more than 10 years and represents one of the largest announced e-SAF offtake deals. Deliveries will start in the early 2030s, subject to fulfilment of agreed conditions and commissioning of the Endor plant . The contracted amount is equivalent to the fuel required for around 1,000 Boeing 787-9 flights between Dusseldorf and Abu Dhabi each year, according to the companies. The agreement provides certainty for Arcadia as it advances the Endor project towards construction and commissioning, it said. The project is designed to produce 70,000 t/yr of e-SAF and 10,000 t/yr of e-naphtha as a by-product, using renewable hydrogen and captured CO2 to produce synthetic fuels. Arcadia recently entered a preliminary agreement with German firm MB Energy to support commercialisation of its e-SAF output. The deal marks another step in Uniper's efforts to build a position in the market for sustainable aviation fuels, the German company said. The agreement comes as e-SAF developers seek long-term offtake commitments to support project financing ahead of the EU's ReFuelEU Aviation mandates. ReFuelEU Aviation requires e-SAF to account for 1.2pc of aviation fuel supplied at EU airports from 2030, rising to 5pc by 2035. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Cautious optimism on German decarbonisation

18/09/26

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18/09/26

Cautious optimism on German decarbonisation

Berlin, 18 September (Argus) — German government officials have voiced cautious optimism about financing the country's industrial decarbonisation, as the economy ministry this week disclosed the results of its €5bn ($5.7bn) tender for carbon contracts for difference. Germany's government is advancing in its aim to get more private capital involved in the green transformation, finance ministry official Anna Klabunde said at an industry event in Gelsenkirchen this week. Klabunde, who is head of the ministry's sustainability, decarbonisation and carbon pricing unit, flagged the three new programmes launched or planned by the government's "Germany fund", under the auspices of state-held bank KfW, that are designed to make it easier for private-sector investors to get involved. The first of the programmes is an investment loan scheme for energy supply, aimed at district heating and cooling networks. The second is a hedging instrument for "industries in transition". Both were launched last month, with German turbine manufacturer Enercon already making use of the new hedging instrument for its €1bn green loan syndicated guarantee facility, arranged with banks including KfW. The third scheme has not yet been launched. It targets the construction sector and aims to push private investments in residential construction. Half of all applications for state guarantees in the industry-heavy German state of North Rhine-Westphalia are for transformation projects such as biogas plants or electrolysers, auditing firm PWC director Rainer Holtmann said at this week's event. The firm audits and manages state guarantees for loans on behalf of the economy ministry. But it is difficult to arrange state guarantees for hydrogen or steel projects, given the lack of "expectations", Holtmann said. Such projects are considered loss-making businesses that will be dependent on subsidies for the foreseeable future. Hydrogen projects will typically need 100pc equity, Holtmann said. Financing for steel is difficult too, and there is massive competition from areas such as the armament industry, which promises better returns in the short term, Holtmann said. German research institute Oeko Institut's Felix Matthes called for a more encompassing approach. Germany needs a hydrogen strategy and a carbon capture and storage (CCS) strategy, and sufficient funding, he said. The cost gap for transformation projects will not be bridged through insurance instruments alone or the EU emissions trading system (ETS) price, Matthes said. He pointed out how the UK, a country with a "different attitude to the financial markets", supports its green hydrogen industry. Klabunde suggested there might be a case for extending to other sectors Germany's "inter-temporal" funding mechanism for its hydrogen core grid — through which the state broadly advances the investment costs. And she defended the government's much-criticised decision to shift billions of euros from Germany's climate transformation fund to the general budget. Finance minister Lars Klingbeil has said the changes were necessary owing to budgetary constraints, but Klabunde clarified that they were also carried out as part of an overall focus on raising efficiency and enabling the most emissions reductions at the lowest costs. Many European states do not even have such a fund, she said. Green lead markets — another much-debated support mechanism for industrial decarbonisation — can be "hard work" as they must be implemented at the European level, economy ministry official Verena Lauber said. Lauber leads the ministry's decarbonisation funding programmes unit. Local content rules planned under the European Commission's proposed Industrial Accelerator Act would only come in 2030, which would be too late for "many", think-tank the Jacques Delors Centre senior policy fellow Philipp Jaeger said. North Rhine-Westphalia's junior economy minister, Silke Krebs, voiced her "joy" at the plans for public green procurement mooted by the EU, and stressed that "we continue with confidence and hope that everything will fit together". North Rhine-Westphalia is actively driving forward Germany's hydrogen starter grid. The "key" problem facing the state's industrial decarbonisation is that "the timelines no longer match" on areas such as CCS, along with the voices placing doubt on the need for decarbonisation in the first place, Krebs warned. There is always a risk that policy makers cave in, crashing EU ETS prices, research institute Wuppertal Institut's Lukas Hermwille said. This makes the restrained reaction of the EU ETS to the commission's revision proposal in July all the more remarkable, he said. It shows how market participants had correctly anticipated and priced in the "waning credibility", Hermwille said. It is precisely the massive delays in infrastructure deployment that made ETS adjustments necessary, Jaeger said, stressing that the delays were not expected 2-3 years ago. And the lack of a Europe-wide consensus on decarbonisation and ensuing political insecurity make investment decisions more difficult, Jaeger said. Germany's government is also working on a carbon management strategy and a long-term negative emissions strategy, which are expected to be presented by the end of this month. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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