India plans to force refineries and fertilizer plants to use some green hydrogen, junior oil minister Rameswar Teli said on Monday, as Asia’s third-largest economy strives to reduce carbon emissions.
Governments and energy companies around the world are betting on clean hydrogen playing a leading role in efforts to lower greenhouse gas emissions, though its future uses and costs remain uncertain.
India’s draft hydrogen policy will mandate a gradual increase in the use of green hydrogen instead of fossil fuels in refineries and fertilizer plants, Teli told lawmakers in a written reply to questions.
Green hydrogen is a zero-carbon fuel made by electrolysis, using renewable power from wind and solar to split water into hydrogen and oxygen, but green hydrogen is yet to be produced in India on a commercial scale due to the high cost of production.
India is already encouraging the use of hydrogen as a transport fuel, with some buses running on hydrogen blended fuel on a trial basis. Last week, Indian Railways invited bids to explore if diesel-fuel trains could operate using hydrogen.
Fertilizer minister Mansukh Mandaviya said last month the use of green hydrogen would cut imports of ammonia and natural gas required for fertilizer production.
The policy aims to boost green hydrogen production and its use across multiple sectors, including transportation. India is already encouraging the use of hydrogen as a transport fuel, with some buses running on hydrogen blended fuel on a trial basis.
The draft policy wants green hydrogen to account for 10% of the overall hydrogen needs of refiners from 2023/24, rising to 25% in five years. The respective requirements for the fertilizer sector are set at 5% and 20%.
India is raising its renewable energy capacity, currently 92.97 gigawatts (GW), to meet about 40% of its electricity needs by 2030 under the Paris climate accord, compared with 36.7% currently?
It wants to raise renewable energy capacity to 175 GW by 2022 and 450 GW by 2030. India’s top refiner Indian Oil Corp, top power utility NTPC Ltd and conglomerates including Reliance and Adani have announced plans to build green hydrogen projects.
India Times / ABC Flash Point News 2021.