In a national address, Prime Minister Narendra Modi announced that the new National Hydrogen Mission would be a key pillar of his government’s plan for India to achieve energy independence within 25 years. Currently, India spends US$164 billion annually to meet its energy requirements, with the vast majority of that figure spent on oil, gas and coal imports.
Green Hydrogen Consumption Obligation
A Green Hydrogen Consumption Obligation (GHCO) for fertiliser production and petroleum refining will be introduced, mandating the use of certain % green hydrogen in production processes. Official details for the GHCO are yet to be released, but the Indian press reports that:
According to the draft cabinet note, GHCO is proposed to be raised from 0.15% in 2023-24 to 0.25% in 2024-25 and 0.5% in 2025-26. Subsequently, it may be raised to 1.5%, 3.5% and 6.5% in 2026-27, 2027-28 and 2028-29, respectively, with the 10% mark targeted for 2029-30.Govt charts course for usage of new-age fuel, Mint, 1 July 2021
As already reported at Ammonia Energy, a GHCO would be similar to the existing Renewable Purchase Obligation (RPO), which mandates that certain entities purchase a certain % of renewable electricity. There is also the possibility that purchase of green hydrogen could be used in lieu of the RPO, as reported by Mint.
1.3 million tonnes green ammonia by 2030
According to the US Geological Survey, India produced 13 million tonnes of ammonia in 2020, up from 12.2 million tonnes in 2019. Using the above draft figures, a 10% GHCO would mean India produces around 1.3 million tonnes of green ammonia by the end of the decade, requiring several GW of dedicated electrolysers to supply the necessary green hydrogen. The Ministry of Power is shortly going to call for bids for a combined 4 GW electrolyser capacity.