Obligatory inexperienced hydrogen plan could quickly be submitted to the cupboard

NEW DELHI : Industries comparable to refineries and fertilizer producers could quickly need to comply with a mandate for inexperienced hydrogen consumption, with the Ministry of New and Renewable Power (MNRE) approaching the union cupboard with a proposal.

Talking on the BloombergNEF Summit, New and Renewable Power Minister RK Singh mentioned talks are nonetheless ongoing on the inexperienced hydrogen consumption mandate stage, which has not but been determined.

“We now have amended the Power Conservation Act, which supplies the federal government the facility to set mandates for altering the uncooked supplies from fossil to non-fossil. For instance, I could make fertilizer, petroleum, and so forth. necessary. I can ask fertilizer and petroleum (refineries) that you just use grey hydrogen or grey ammonia and a sure share of that needs to be inexperienced beginning this 12 months, and regularly escalate it in order that 100% of that’s inexperienced,” Singh mentioned.

“We now have mentioned this with the related ministries. In precept, the adoption of the mandate is underway. Broadly talking, we’ve had the talks and we’ve provide you with some figures, and we’ll quickly go to the cupboard.”

The plan to spice up demand for inexperienced hydrogen comes a number of months after the ministry launched incentive schemes 17,000 crore for inexperienced hydrogen manufacturing and electrolyser manufacturing.

The mandate was anticipated to be introduced with the rollout of the inexperienced hydrogen mission, however was delayed because of disagreements over the mandate stage.

The minister mentioned the manufacturing capability of 5.8 million tonnes of inexperienced hydrogen is already in numerous phases of set up and that the “low price” of renewable power in India would result in the manufacturing of the most affordable inexperienced hydrogen on this planet.

Lately, the ministry rolled out the usual for inexperienced hydrogen produced within the nation.

The federal government has decided that manufacturing items could not emit greater than 2 kg of carbon dioxide per kg of hydrogen.

Earlier this 12 months, the union cupboard authorised the Nationwide Inexperienced Hydrogen Mission, which goals to provide 5 million tons of inexperienced hydrogen yearly and make India a world inexperienced hydrogen hub.

In June, the federal government notified the Strategic Interventions for Inexperienced Hydrogen Transition Program (SIGHT), together with 13,050 crore would go in the direction of boosting inexperienced hydrogen manufacturing, and once more 4,440 crore would go in the direction of electrolyzer manufacturing.

In January, the commerce union cupboard authorised the Nationwide Inexperienced Hydrogen Mission 19,744 crores. Apart from the SIGHT program to assist electrolyzer and inexperienced hydrogen manufacturing, the federal government would allocate assets 1,466 crore for pilot initiatives, 400 crore for analysis and growth, and 388 crore for different mission elements.

Below its formidable inexperienced hydrogen mission, the Middle goals to make India a world hub for the manufacturing, use and export of inexperienced hydrogen and its derivatives. The federal government goals to carry India’s inexperienced hydrogen capability to five million tonnes every year, with related renewable power. capability enlargement of roughly 125 GW.

Inexperienced hydrogen could be utilized in numerous sectors, together with petroleum refineries, fertilizer and metal producers, that are known as “tough to cut back” sectors by way of CO2 emissions. The usage of inexperienced hydrogen is gaining significance as a number of export-oriented industries, together with the metal trade, put together to keep away from the disruption that might be attributable to the implementation of the Carbon Border Adjustment Mechanism (CBAM).

India is already exploring tariff and non-tariff measures to counter the EU’s Carbon Border Adjustment Mechanism (CBAM), which proposes to tax embedded carbon imports from a number of sectors, together with metal, aluminum, cement, hydrogen, electrical energy and fertilizer. 2026. From October, firms must submit CO2 emission knowledge from their exports to the EU.

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Up to date: August 24, 2023, 10:17 PM IST