Mandatory green hydrogen plan may go to cabinet soon

livemint.com:

NEW DELHI : Industries such as refineries and fertilizer makers may soon have to follow a green hydrogen consumption mandate, with the ministry of new and renewable energy (MNRE) set to approach the union cabinet with a proposal. Addressing the BloombergNEF Summit here, minister for new and renewable energy R.K. Singh said talks are still underway on the green hydrogen consumption mandate level, which is yet to be decided.

“We amended the Energy Conservation Act, which gives power to government to lay down mandates for changing the feedstock from fossil to non-fossil. So I can mandate fertilizer, petroleum etc. for instance.

I can ask fertilizers and petroleum (refineries) that you are using grey hydrogen or grey ammonia and a certain percentage of that has to be green from this year onwards, gradually escalating it so that 100% of that is green," Singh said. “We have had discussions with the concerned ministries on this. Basically, that mandate fixing is in process.

By and large, we have had the discussions and we have come up with some figures, and we will go to the cabinet soon." The plan to boost demand for green hydrogen comes a couple of months after the ministry rolled out incentive schemes worth ₹ 17,000 crore for production of green hydrogen and manufacturing electrolyzers. The mandate was expected to be announced with the rollout of the green hydrogen mission, but was delayed amid disagreements over the mandate level. The minister said that manufacturing capacity of 5.8 million tonne green hydrogen is already in different stages of installation and that the “low cost" of renewable energy in India would lead to production of the cheapest green hydrogen globally.