A proposal to mandate hard-to-abate sectors is soon going to be tabled before the Union cabinet. The government aims to achieve a production of at least 5 million tonnes per annum of green hydrogen by 2030.
Aug 24, 2023
Mr. RK Singh, India’s minister for power and new and renewable energy, said, “A proposal to mandate hard-to-abate sectors such as refineries and fertilizer companies to use green hydrogen as feedstock is soon going to be tabled before the Union cabinet. We have had discussions with other ministries such as the Ministry of petroleum and natural gas and have come up with certain figures. We will go to the cabinet pretty soon.” However, the proposed percentage of green hydrogen consumption mandates that are likely to be imposed were not specified.
The minister stated that within a span of 10 months, India already has a pipeline of 5.8 million tonnes of green hydrogen and 37 million tonnes of green ammonia production which are either orders that have already been backed or are in the pipeline. Mr. RK Singh went on to say, “Why should we import natural gas to make hydrogen? Every kilogram of hydrogen made from natural gas emits 11 kg of carbon dioxide.”
The National Green Hydrogen Mission (NGHM) document does have provisions for such mandates, and the Energy Conservation Act amended in December 2022 permits such mandates when they are decided upon. Industrial stakeholders, speaking anonymously, said these mandates could have potential price impacts on products such as petrol and diesel. The cabinet approved the NGHM on January 4 and allocated an initial outlay of INR 19,744 crore, including INR 17,490 crore for incentives. The government aims to achieve a production of at least 5 million tonnes per annum of green hydrogen by 2030 through NGHM, which would require 60-100 GW of electrolyzer capacity and 125 GW of renewable energy capacity. This initiative is expected to reduce carbon dioxide emissions by 50 million tonnes per annum.
On August 18, the ministry rolled out the standard for green hydrogen produced in the country. In that, the government has mandated that the carbon emission should not be more than two kilograms of carbon dioxide equivalent per kilogram of hydrogen.