The Centre is planning for green hydrogen auctions within the next 3-4 months to further this agenda, said Power Minister R K Singh.
Union Power Minister R K Singh addressing media in Kochi.Union Power Minister R K Singh addressing media in Kochi.
NEW DELHI: Taking forward the National Hydrogen Mission announced in the Union Budget this month, the Government of India is planning to make the usage of Made-in-India green hydrogen mandatory in sectors such as steel, oil refineries, and fertilizers. The Centre is planning for green hydrogen auctions within the next 3-4 months to further this agenda, said Power Minister R K Singh.
Green hydrogen is produced through processes which are powered by renewable energy, as opposed to that produced through fossil fuel-driven systems. Hydrogen, in turn, is used in several high energy sectors, such as in oil refineries, and fertiliser and steel factories.
The government is now planning to make it mandatory for such factories to buy and use a minimum amount of green hydrogen from India, instead of importing their requirements. Singh pointed out that materials such as ammonia, for instance, are imported. “Suppose we have a mandate, like the renewable purchase obligations.
To begin with, 10 per cent of the ammonia you import should be replaced by green ammonia made in India,” Singh said, adding that a similar system could be put in place for hydrogen too. “We have put it to the Ministry of Petroleum… Suppose we put a mandate to replace 10 per cent of the hydrogen used for refining with green hydrogen made in India,” Singh explained.
According to Singh, his officials have already conducted discussions on such a measure with the fertiliser and steel ministries too. As for the cost, which is likely to turn out to be significantly higher for green hydrogen, Singh said that a purchase obligation and subsequent demand would make the fuel more affordable in time.
“You have to have an obligation to buy made in India green hydrogen which may be slightly more expensive. It depends on the bid. In fact, it may turn out to be not more expensive at all,” he said. As an example, he noted that solar electricity tariffs had cost as high as `15 per unit at one point of time, but now, have come down to just Rs 1.99 per unit,” he added.
Green hydrogen is clean-burning molecule that can help to decarbonise a range of sectors that are difficult to clean up. It is produced from renewable electricity.