MUMBAI (ICIS) – India’s state-owned Gas Authority of India Ltd (GAIL) expects its two new polypropylene (PP) plants with a combined capacity of 560,000 metric tons/year by the second quarter of 2025, a company source said on Tuesday.
The 60,000 t/a PP line in the northern state of Uttar Pradesh will start up in January 2024, while the 500,000 t/a plant in the western state of Maharashtra is expected to start up by April 2025, the source said.
The Maharashtra plant has an upstream propane dehydrogenation (PDH) plant with a capacity of 500,000 t/a which supplies the plant with propylene feedstock.
“Work is ongoing on both projects and we expect to bring them online within the established timeframe,” the company source said.
GAIL currently operates a 200,000 tpy high density polyethylene (HDPE) plant, two swing linear low density polyethylene (LLDPE)/HDPE plants with capacities of 230,000 tpy and 400,000 tpy, and a butene 1 plant with a capacity of 10,000 tons/year line in its Pata complex.
In addition, GAIL plans to invest Indian rupees (Rs) 2.3 billion (US$41 million) in the construction of a proton exchange membrane (PEM) electrolyser to produce green hydrogen at Guna in central Madhya Pradesh state.
The project, which is expected to produce 4.3 tons of green hydrogen per day, is expected to be operational by November 2023, the source said.
“We intend to ramp up production of green hydrogen by 2030 once government policy on hydrogen becomes clear,” he added.
Plans to expand green hydrogen production will depend on government policy on mandatory use of hydrogen in industry, the source said.
In February, the Indian government announced its green hydrogen policy, which is expected to boost green hydrogen production in the country.
According to media reports, the government is now planning to launch a comprehensive green hydrogen mission that could oblige fertilizer, refinery and petrochemical companies to use green hydrogen in their operations.
($1 = Rs 78.96)