GAIL starts India's maiden project of blending hydrogen into CGD network; Stock up 2%

1 Feb 2022 , 12:04 PM

GAIL (India) Limited has commenced India’s first-of-its-kind project of mixing hydrogen into the natural gas system at Indore, Madhya Pradesh. The hydrogen blended natural gas will be supplied to Avantika Gas Limited, one of GAIL’s Joint Venture (JV) companies with HPCL, operating in Indore.

The company stock was trading higher and at around 12.07 pm, GAIL (India) Ltd was trading at Rs147.15 per piece up by Rs2.95 or 2.05% from its previous closing of Rs144.20 per piece on the BSE.

In line with the National Hydrogen Mission, GAIL has started hydrogen blending as a pilot project to establish the techno-commercial feasibility of blending hydrogen in the City Gas Distribution (CGD) network. This project marks the stepping stone of India’s journey towards a hydrogen-based and carbon neutral future.

GAIL started injection of grey hydrogen at City Gate Station (CGS), Indore. This grey hydrogen would subsequently be replaced by green hydrogen. GAIL has already obtained necessary regulatory permissions to commence the project. GAIL has also engaged domain experts to carry out the impact assessment of blending of hydro gen in natural gas.

GAIL has always been committed to the growth of a gas-based economy in India and to India’s vision of a greener and cleaner enviromnent. As our country is moving forward with ambitious goal of achieving a carbon-neutral and self-reliant future, this project is a significant step in that direction.

It is expected that this pilot project would help in creation of a robust standard and regulatory framework in India to cover the aspects of injecting hydrogen into natural gas. This will pave the path for carrying out more similar projects in India.