JSW Energy signs seven-year off-take agreement to supply 3,800 TPA green hydrogen to JSW Steel

JSW Energy said on Tuesday that it has signed a seven-year offtake agreement with JSW Steel to supply 3,800 tonnes per annum of green hydrogen, along with 30,000 tonnes per annum of green oxygen. This forms part of its 6,800 tonnes per annum allocation under the Strategic Interventions for Green Hydrogen Transition program by the Solar Energy Corporation of India.

The announcement comes in conjunction with the commissioning of JSW Energy’s first green hydrogen manufacturing plant—touted as India’s largest—under the Production Linked Incentive-Tranche I. According to JSW Energy, the plant will be strategically located adjacent to the JSW Steel facility at Vijayanagar, Karnataka. The plant will supply green hydrogen directly to the DRI unit for low-carbon steel production.

Additionally, it has signed an MoU with JSW Steel to progressively supply 85,000–90,000 tonnes per annum of green hydrogen and 7,20,000 tonnes per annum of green oxygen by 2030. These initiatives are part of JSW Energy’s sustainability vision and India’s green hydrogen plan to achieve a cumulative capacity of five million tonnes per annum by 2030.

“The project is a key milestone in our country’s clean energy journey and reflects our unwavering commitment to support India’s transition toward a low-carbon economy and decarbonisation of hard-to-abate sectors such as steel. Green hydrogen will assume a pivotal role in shaping a sustainable and Atmanirbhar Bharat,” said Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, in a statement.

JSW Energy has a total locked-in generation capacity of 30.5 gigawatts, comprising 13.3 gigawatts operational, 12.5 gigawatts under construction across thermal and renewable, 150 megawatts under acquisition for hydro, and a pipeline of 4.6 gigawatts. The company also has 29.4 GWh of locked-in energy storage capacity through hydro-pumped storage projects totalling 26.4 GWh and a battery energy storage system totalling 3.0 GWh. JSW Energy aims to reach 30 gigawatts of generation capacity and 40 GWh of energy storage capacity by FY 2030 and achieve carbon neutrality by 2050.

JSW Energy, part of the $23 billion JSW Group, began commercial operations in 2000, with the commissioning of its first 2x130 megawatt thermal power plants at Vijayanagar, Karnataka. Since then, the company has steadily enhanced its power generation capacity from 260 megawatts to 13.3 gigawatts.