State-owned Petronas' clean energy unit Gentari Sdn Bhd has bid for tenders across Asia and Europe while it advances its renewable hydrogen and ammonia projects in India and Malaysia and scouts for new projects elsewhere in the world, Gentari's India Country Head, Navjit Gill, told S&P Global Commodity Insights Nov. 15.
Gentari is aiming to produce 5 million mt of renewable ammonia in India by 2030 at three export-oriented projects. It is also developing a renewable hydrogen hub in Malaysia's Bintulu in Sarawak with SEDC.
"We continue to also look at certain options like ... the Salzgitter tender in Europe and also the ammonia RFP by Singapore," Gill said. "There will be a market for general hydrogen in Korea, where you could have Contracts for Difference and then there will be a clean hydrogen market also..."
"So, by participating in the tenders and auctions, which are happening out there, Gentari is looking to align with the requirements in those countries."
German steelmaker Salzgitter opened a tender to source up to 120,000 mt/year renewable hydrogen for its Salcos low-carbon steel production in June, seeking supplies from 2027 for use in its steel plant.
Also in June, Singapore's Energy Market Authority launched a second request for proposal inviting the private sector to build, own and operate two new hydrogen-ready combined cycle gas turbine generating units to be ready in 2029 and 2030, respectively.
"Our initiatives in the countries where we are working ... India, Malaysia ... are the projects that we are doing and I think these itself are significant projects," Gill said. "All going well, we start end of 2026 or early 2027 for exports," he said, referring to the most advanced project in Kakinada in India's Andhra Pradesh.
Gill said contracting for the 1 million mt/year Kakinada project that reached financial investment decision in August is underway. It is being built with Indian renewables company AM Green Ammonia, which has non-binding offtake agreements with Keppel, RWE and Yara.
Meanwhile, in Tuticorin, Tamil Nadu, Gentari's renewable ammonia project is almost ready for FEED following a government order received in June 2023, Gill said. This project has a capacity of 540,000 mt/year of renewable ammonia meant for exports.
The third Indian renewable ammonia project is planned in Karnataka
Malaysia advantage
Gentari's Sarawak H2 Hub for renewable hydrogen in Malaysia is expected to have multiple production units integrated with predeveloped utilities and ancillary services.
"This is going to be a sort of a plug-and-play hub, which takes a very modular approach towards standardizing the upstream hydrogen production," Gill said. "And this will also allow the other investors to focus on the downstream activities once this hub is established."
"We are yet to do the full feasibility analysis on Malaysia (project), but ultimately, I would say that they will be both very well poised with each other," he said, referring to the combined advantage of the Indian and Malaysian projects.
Senoko Energy, one of Singapore's largest energy companies, and Gentari signed a memorandum of understanding to explore the import of hydrogen from Malaysia to Singapore in October, involving a 20-year supply agreement starting 2029.
The company wants to cast its net wider -- it is assessing other locations for renewable hydrogen projects including Canada, where there is a possibility of establishing a low-carbon hydrogen/ammonia base, Gill said.
Low-cost bet
Gill said a broad level for renewable hydrogen prices in Asia and Southeast Asia can be expected at $2.50/kg to $4/kg by 2030 but more clarity would come from government initiatives and how exactly they are implemented on the ground.
For instance, developers expect renewable energy projects to be categorized as bonded units with geographically dispersed renewable energy assets, and this could be one of the "critical determinants" of the cost, Gill said. Clarity on the demarcation of the projects under Special Economic Zones can bring advantages, such as duty waivers that could further benefit costs.
"We are very confident that we are going to be able to get the product at the right price to the right markets," Gill said.
Platts, part of Commodity Insights, assessed Qatar hydrogen produced via alkaline electrolysis (including capex) at $4.12/kg Nov. 18, flat from a month ago. It assessed Japan hydrogen produced via alkaline electrolysis at $5.81/kg Nov. 15, up 1.23% from a month ago.
Blending seen in future
Gill expected consumers to blend renewable hydrogen with low-carbon hydrogen to get the desired level of cost for the end product, rather than singularly opt for one or the other.
"Every market will have their own requirements, and they will have their own multiple ... sourcing channels," he said. "There will be a place for all ... there can also be solutions provided where a green ammonia can be blended with maybe a blue ammonia."
"So, those possibilities of blending cannot be ruled out. But these are all measures which will be finally decided based on the customers' requirements and the availability of the products."
