{"id":408817,"date":"2025-03-21T16:29:44","date_gmt":"2025-03-21T10:59:44","guid":{"rendered":"https:\/\/zerodha.com\/z-connect\/?p=408817"},"modified":"2025-04-04T12:45:58","modified_gmt":"2025-04-04T07:15:58","slug":"ossus-green-hydrogen-from-first-principles","status":"publish","type":"post","link":"https:\/\/zerodha.com\/z-connect\/rainmatter\/ossus-green-hydrogen-from-first-principles","title":{"rendered":"Ossus: Green hydrogen from first principles"},"content":{"rendered":"<p>Hydrogen has been hailed as a possible solution to the world\u2019s energy needs for a hundred years. While its role as a fuel is still being debated, hydrogen is also a key ingredient in a range of industrial processes such as petroleum refining, manufacturing ammonia for fertilisers, methanol production, treatment and production of metals. India\u2019s industrial processes use about 5 million metric tonnes per annum (MMTPA), most of which is produced using an age-old process called steam reforming of natural gas and naphtha. Basically from fossil fuels.<\/p>\n<h4>Defining green hydrogen became political<\/h4>\n<p>The world figured out a better way: by splitting water in an electrolyser. The problem is that this process uses too much energy. Hence, the focus on renewable energy like solar and wind to make \u2018green hydrogen\u2019. Europe had some additional factors in the green hydrogen definition &#8211;<\/p>\n<ul>\n<li>Being generated by dedicated new renewable energy capacity (additionality),<\/li>\n<li>Is in the same location as hydrogen production (deliverability), and<\/li>\n<li>Ensuring temporal alignment between renewable electricity generation and hydrogen production (temporal matching).<\/li>\n<\/ul>\n<p>(source: JMK Research\u2019s March 2024 paper titled India\u2019s $2.1b leap towards Green Hydrogen page 23).<\/p>\n<p>India\u2019s definitions &#8211;<br \/>\n<a href=\"https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=1950421\">https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=1950421<\/a><\/p>\n<p>The regulation disparities hinder global comparisons of Indian projects and affect market access (exports) for Indian hydrogen not meeting these criteria.<\/p>\n<p>The definitions highlighted the difficulties with adopting green hydrogen separate from the cost factor. These include the transmission and infrastructure. India\u2019s National Green Hydrogen Mission (NGHM) aims to solve for some of these with a budget of US$2.4 billion. However, Indian players had yet to start production of any green hydrogen.<\/p>\n<h4>Bio-renewables have potential<\/h4>\n<p>In 2016, a young PhD student, Suruchi Rao was working on generating methane from organic waste. She teamed up with Kamar Basha to develop a process by which bio-organisms generate electricity. The duo applied for and received a bunch of grants to develop their idea. Eventually they patented their process and set up a start-up with initial funding from Shell.<\/p>\n<p>The breakthrough innovation allows the world to think about green hydrogen in a different way rather than just focusing on splitting water. The advantages are many &#8211; from a cost that\u2019s less than half to avoiding the transmission issue.<\/p>\n<p>Like Ossus, there are many other startups around the world that are working on similar innovation such that the definitions are being broadened.<\/p>\n<p>Watch the latest episode of The Climate Conversations.<\/p>\n<p><iframe width=\"100%\" src=\"https:\/\/www.youtube.com\/embed\/NIrQ5IzwyMQ\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<h4>Evolving business model<\/h4>\n<p>Ossus\u2019 alternative model to generating hydrogen was significantly cheaper, on-site, and cleaned up the effluent water as a by-product. It was received well by some big names such as Tata Steel and ONGC which have set up the Ossus bio-reactors at their sites. Ossus decided to focus on the \u2018hard to abate\u2019 industries &#8211; oil refineries, petrochemicals and steel production.<\/p>\n<p>At this stage, Ossus met Nikhil Kamath who eventually invested in the company through Gruhas. Rainmatter also invested. Shell remains a small shareholder.<\/p>\n<p>As Suruchi explained the episode, Ossus\u2019 business model has evolved after raising capital: the company was putting in the capex to charge for the hydrogen, but it\u2019s now considering allowing the client to pay for their own capex and paying a lower price for the hydrogen.<\/p>\n<p>The company\u2019s third co-founder focuses on the patent strategy as the company has ambitions to produce 10 percent of India\u2019s target by itself in the next year. Rao predicts revenue to cross 2500 crores next year and a billion dollars in the next few.<\/p>\n<p>Exactly what India needs. Young founders with breakthrough ideas and lofty ambitions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hydrogen has been hailed as a possible solution to the world\u2019s energy needs for a hundred years. While its role as a fuel is still being debated, hydrogen is also a key ingredient in a range of industrial processes such as petroleum refining, manufacturing ammonia for fertilisers, methanol production, treatment and production of metals. India\u2019s [&hellip;]<\/p>\n","protected":false},"author":242549,"featured_media":408818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[478],"tags":[],"class_list":["post-408817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rainmatter"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.5 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ossus: Green hydrogen from first principles &#8211; Z-Connect by Zerodha<\/title>\n<meta name=\"description\" content=\"Hydrogen has been hailed as a possible solution to the world\u2019s energy needs for a hundred years. 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