Nuberg Engineering Ltd (Nuberg EPC) is a domestic industrial EPC conglomerate serving the global markets in segments like chemicals & fertilizers, hydrocarbons, nuclear, defence and steel, to name a few. In this exclusive interaction, we have A.K. Tyagi, Founder, Chairman & Managing Director, Nuberg Engineering Ltd expounding on the emerging green hydrogen segment from a technical and EPC perspective. Despite the challenges associated in the EPC of green hydrogen plants, Tyagi is confident that Nuberg, with its vast experience in the conventional hydrogen space, can play a pivotal role in developing efficient hydrogen production facilities and support the overall green economy in India.
We understand that while production of hydrogen (grey or blue) is an established activity in India, it is “green” hydrogen that is emerging as a new field. From an EPC perspective, how does production of green hydrogen differ from the conventional hydrogen?
Absolutely! Hydrogen production can be categorized into grey, blue, and green. Grey hydrogen is produced via steam methane reforming, releasing significant CO₂ emissions. Blue hydrogen incorporates carbon capture and storage (CCS) to reduce emissions but still relies on fossil fuels. Green hydrogen, in contrast, is produced via electrolysis powered by renewable energy sources like solar or wind, resulting in zero emissions.
From an EPC perspective, green hydrogen production differs from conventional hydrogen in design, infrastructure, and execution. It requires integrating renewable energy systems, advanced electrolyzers, and sustainable water management into project designs. Grey and blue hydrogen production, by contrast, use established industrial processes and infrastructure, without needing extensive renewable integration.
Green hydrogen poses challenges for EPC providers, including managing renewable energy variability, designing scalable electrolysis systems, and ensuring environmental sustainability. Facilities demand advanced engineering for high-purity hydrogen production, storage, and distribution, along with seamless renewable energy integration.
Economically, green hydrogen’s higher initial costs, driven by renewable infrastructure and electrolyzer technology, are offset by its alignment with sustainability goals and energy independence. India’s National Green Hydrogen Mission, targeting 5 million metric tonnes annually by 2030, offers significant opportunities for EPC companies like Nuberg EPC (the EPC division of Nuberg Engineering Ltd) to lead innovative solutions in this transformative field.
What are the services that Nuberg EPC provides in the green hydrogen value chain?
Nuberg EPC is actively involved in various aspects of the green hydrogen value chain, offering a comprehensive range of services that cater to the growing demand for sustainable energy solutions. We specialize in the design and engineering of hydrogen production plants, utilizing electrolysis-based technologies to meet diverse client needs while emphasizing efficiency and sustainability.
Our services include turnkey project solutions, where we manage everything from basic engineering to the complete construction of hydrogen facilities. This involves leveraging our own intellectual property or licensed technologies from global suppliers to ensure high-quality outcomes. Additionally, our construction services cover the building of hydrogen production plants, including facilities for purification, compression, storage, and dispensing. We also support the transportation and storage of hydrogen by developing refueling stations essential for hydrogen fuel cell vehicles.
Research and development play a crucial role in our operations as we continuously innovate new technologies that enhance the efficiency and cost-effectiveness of green hydrogen production. Furthermore, we actively engage with government initiatives such as India’s National Green Hydrogen Mission, aiming to contribute significantly toward achieving national targets for green hydrogen production.
A notable project exemplifying our capabilities is our collaboration with the Indian Oil Corporation Ltd (IOCL) to develop India’s first commercial-scale hydrogen purification, compression, storage, and dispensing facility. The successful implementation of this facility not only enhances India’s hydrogen infrastructure but also promotes hydrogen as a clean fuel alternative, contributing to reduced greenhouse gas emissions and supporting national energy goals.
From a technical perspective, what is the key difference between green hydrogen production through the electrolyzer and “PEM” routes? Would Nuberg EPC be dealing with both the technologies?
The primary technical difference between green hydrogen production via electrolyzers and PEM routes lies in ion movement. In PEM electrolysis, hydrogen ions (protons) pass through a gas-tight membrane to form high-purity hydrogen, ideal for applications like fuel cell vehicles. Alkaline electrolysis, on the other hand, uses hydroxide ions (OH-) and typically requires more complex purification.
PEM electrolyzers operate at higher pressures, improving efficiency and reducing compression needs. They are also more compact, making them suitable for space-constrained locations, and handle renewable energy fluctuations better, ensuring seamless integration with solar and wind power.
At Nuberg EPC, we employ both PEM and alkaline technologies, tailoring solutions to specific client needs. With the growing demand for green hydrogen, we remain committed to leveraging both systems to advance sustainable energy initiatives.
“India’s current import dependence on electrolyzers is a significant concern as we strive to establish a robust green hydrogen economy.”
As a key member of the green hydrogen value chain, how do you see India’s current import-dependence on electrolyzers and what is your view on the PLM scheme for domestic electrolyzer production?
India’s current import dependence on electrolyzers is a significant concern as we strive to establish a robust green hydrogen economy. Electrolyzers are crucial for producing green hydrogen, and they constitute about 30-50% of the total production cost. Currently, many key components, such as membranes and specific minerals like platinum and iridium, are imported. This reliance not only affects our cost competitiveness but also poses risks to supply chain stability.
The government’s Production Linked Incentive (PLI) scheme under the Strategic Interventions for Green Hydrogen Transition (SIGHT) is a timely and strategic initiative. The PLI scheme aims to stimulate local manufacturing capabilities for electrolyzers, which is essential for reducing import dependence. By fostering a domestic electrolyzer manufacturing ecosystem, India can not only meet its own needs but also tap into global markets, positioning itself as a competitive player in the green hydrogen sector.
As green hydrogen would depend largely on renewable energy, what would the criticality of energy storage in the green hydrogen value chain?
Energy storage plays a crucial role in the green hydrogen value chain, primarily due to the intermittent nature of renewable energy sources like solar and wind. Green hydrogen production relies on electrolysis, which converts surplus renewable electricity into hydrogen during periods of high generation. This stored hydrogen can then be utilized when energy demand peaks or when renewable generation is low, effectively acting as a buffer that enhances grid stability and resilience.
Moreover, hydrogen offers significant advantages as an energy storage medium. Unlike traditional battery systems that discharge quickly, hydrogen can be stored for extended periods without losing power, making it suitable for seasonal storage needs. This characteristic allows for the effective management of energy supply and demand, ensuring a reliable and constant energy source.
“On the global front, Nuberg Group has developed considerable expertise in the green hydrogen space through various projects and collaborations.”
What challenges due to foresee in the building of green hydrogen plants in India, from an EPC perspective? At this point, it would be useful to know the global expertise that Nuberg Group has built so far in the green hydrogen space.
Another critical challenge is the availability of water, as green hydrogen production requires large quantities of water, and many regions in India are already facing water scarcity. Additionally, there are technological hurdles related to improving the efficiency of electrolysis processes and ensuring a reliable renewable energy supply for continuous operation. The intermittent nature of renewable energy sources also highlights the need for effective energy storage solutions to ensure stable production.
On the global front, Nuberg Group has developed considerable expertise in the green hydrogen space through various projects and collaborations. With over 28 years of experience and more than 60 turnkey projects delivered across 32 countries, Nuberg EPC is well-positioned to navigate the challenges of building green hydrogen plants while contributing to India’s ambitious goals for a sustainable energy future.
With zero accidents since its inception in 1996, Nuberg EPC takes pride in being considered one of the safest contractors in the industry. This impeccable safety record further solidifies our reputation as a leader in the EPC industry, enabling us to deliver projects with the highest safety standards while maintaining efficiency and reliability.
What challenges do you foresee in the storage and distribution of green hydrogen? From a technical standpoint, we hear that green hydrogen will actually be produced as green ammonia. Please explain.
The storage and distribution of green hydrogen present several significant challenges. One of the primary issues is hydrogen’s low energy density, which makes it difficult to store and transport efficiently. To achieve a reasonable energy density, hydrogen must be stored under high pressure or at cryogenic temperatures, necessitating specialized storage tanks and infrastructure. This adds to the overall cost and complexity of the logistics involved. Additionally, hydrogen is highly flammable, requiring stringent safety protocols to ensure safe handling and storage. The small size of hydrogen molecules also poses a risk of leakage, making it essential to develop robust storage solutions that minimize these risks.
From a technical standpoint, producing green hydrogen as green ammonia is gaining traction due to its advantages in storage and transport. Green ammonia, synthesized by combining hydrogen with nitrogen from the air, can be stored more easily than hydrogen itself. It has a higher energy density and can be transported using existing ammonia infrastructure, reducing the need for new investments. Furthermore, ammonia can be converted back into hydrogen when needed, making it a versatile carrier for green hydrogen.
“India is working towards establishing itself as a global hub for green hydrogen production and export, positioning itself as a competitive player in the coming years.”
Which countries globally can be considered as leaders in terms of green hydrogen/ammonia production?
Several countries are leading the way in green hydrogen and ammonia production. China currently has the largest operational capacity for green hydrogen, driven by significant investments and a robust manufacturing base. Germany is also at the forefront, with its National Hydrogen Strategy focusing on extensive research and infrastructure development. Japan is making notable strides as well, emphasizing hydrogen’s role in its energy transition.
Other prominent players include Australia, which is leveraging its abundant renewable resources to produce green hydrogen for both domestic use and export, and the United States, where numerous projects are underway to enhance green hydrogen capabilities. Additionally, Saudi Arabia is investing heavily in large-scale projects aimed at producing green hydrogen for global markets.
As for India, while it is still in the early stages of green hydrogen production, the country has set ambitious targets to become a significant player in this space. The Indian government aims to produce 5 million tonnes of green hydrogen annually by 2030 under the National Green Hydrogen Mission. Currently, India’s production is relatively negligible compared to global leaders, primarily focusing on grey hydrogen derived from fossil fuels. However, with commitments of around $70 billion in investments and ongoing policy support, India is working towards establishing itself as a global hub for green hydrogen production and export, positioning itself as a competitive player in the coming years.
India’s National Green Hydrogen Mission has targeted 5 million tonnes of green hydrogen production by 2030, apart from creating domestic competence for electrolyzers. Given this, how do you see the opportunity for Nuberg EPC?
The National Green Hydrogen Mission presents a significant opportunity for Nuberg EPC as we align our expertise with India’s ambitious goals. With a target of producing 5 million tonnes of green hydrogen by 2030, there is a growing demand for advanced engineering, procurement, and construction (EPC) services in this sector. Nuberg EPC has over 28 years of experience in hydrogen management and has already established a strong foothold by successfully delivering projects like India’s first commercial-scale hydrogen fueling station in Vadodara.
As the country seeks to build domestic competence for electrolyzers and enhance its green hydrogen infrastructure, Nuberg EPC is well-positioned to contribute to this growth. We are actively exploring cutting-edge technologies and expanding our portfolio in green hydrogen projects. Additionally, with the government’s commitment to reducing reliance on fossil fuels and promoting sustainable energy solutions, Nuberg EPC can play a pivotal role in developing efficient hydrogen production facilities and supporting the overall green economy in India. This alignment not only enhances our business prospects but also contributes to India’s vision of becoming a global leader in green hydrogen production.
