Charotar Gas Cooperative plans entry into green hydrogen space

As an energy transformation at India’s grass-root levels, Anand-based gas cooperative Charotar Gas Cooperative Society Ltd is taking a giant leap towards green hydrogen generation and retailing from the soil of dairy cooperative behemoth Amul.

India’s first and only city gas distribution (CGD) player from the cooperative sector - Charotar Gas - is developing a solar energy-based green hydrogen project with support from innovation and incubation agency iCreate under the Government of India’s Hydrogen Valley Project.

The gas cooperative currently sells over 52,000 standard cubic meter (SCM) of gas daily to its over 45,000 domestic consumers and 12 CNG stations, besides about 50,000 scm gas sales to industrial and commercial users. 

“The ₹18-crore green hydrogen facility will come up at Kanajari village in Anand district. We were the only CGD player to be eligible for the grant from the government for this project. Besides having iCreate, we have also roped in Sardar Patel University for their guidance in the project. In line with objectives, we will set up generation, storage, transportation and retailing infrastructure for green hydrogen. Our model retail outlet will come up shortly in Vallabh Vidyanagar,” said Dharmendra Patel, Chairman, Charotar Gas.

Patel claims this will be Gujarat’s first green hydrogen project and will be commissioned in the next 1-1.5 years. “There is a long wait for electrolysers supply,” he said, explaining the long duration required for commissioning. Notably, Charotar Gas was among the stakeholders who participated in the first consultation meeting of the Hydrogen Valley Project held in Ahmedabad in April 2023.

The gas cooperative currently sells over 52,000 standard cubic meter (SCM) of gas daily to its over 45,000 domestic consumers and 12 CNG stations, besides about 50,000 scm gas sales to industrial and commercial users. Set up in 1999 as a cooperative society, Charotar Gas currently has membership of 1,850 and covers 843 square km of geographical area authorised by PNGRB. In aggressive expansion mode, the cooperative has added 14 villages to its PNG network in the past one year with a total reaching 52 villages in Anand district. “We are planning to add a few more villages and four CNG stations in the next 1-1.5 years taking the tally to 16 CNG stations including five Company-owned and Company-operated model and the rest under dealer-operated dealer-owned model,” Patel said adding that his vision is to cover 90 per cent households within the GA under PNG network.

In aggressive expansion mode, the cooperative has added 14 villages to its PNG network in the past one year with a total reaching 52 villages in Anand district. 

In Vansol village of Umreth taluka in Anand, a farmer Ranchhodbhai Vankar recently shifted to PNG from gas cylinders. “We were hesitant about piped gas. But our village leaders and company officials explained to us the benefits of piped gas. It turns out to be cheaper than a cylinder and much more convenient too,” he told businessline.

Patel said that in order to propagate PNG and CNG adoption, he sells cheapest gas to its consumers. “Our margins are not great. But we are not a private or public limited company. As a cooperative, our objective is to protect the interests of our members and consumers both.” Charotar Gas sources spot gas from GSPC and APM gas from GAIL.

Lower prices helped the cooperative achieve higher volumes, which, in turn, helped it register highest-ever profits for the fiscal ended March 2023 at ₹23.5 crore (profit before taxes), on the turnover of ₹250 crore as against the net loss of ₹3.27 crore on turnover of ₹178 crore.

“We transformed the tendering process, brought transparency and prevented financial leakages. This along with an increase in gas sales volumes have helped us improve our profits,” said Patel.