{"id":115832,"date":"2021-07-01T19:35:59","date_gmt":"2021-07-01T14:05:59","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=115832"},"modified":"2024-01-16T11:48:06","modified_gmt":"2024-01-16T06:18:06","slug":"govt-charts-course-for-usage-of-new-age-fuel","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/govt-charts-course-for-usage-of-new-age-fuel\/","title":{"rendered":"Govt Charts Course For Usage of New-Age Fuel In 2023"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-278053 aligncenter\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/07\/Govt-charts-course-for-usage-of-new-age-fuel.webp?resize=560%2C437&#038;ssl=1\" alt=\"Govt Charts Course For Usage of New-Age Fuel\" width=\"560\" height=\"437\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/07\/Govt-charts-course-for-usage-of-new-age-fuel.webp?resize=300%2C234&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/07\/Govt-charts-course-for-usage-of-new-age-fuel.webp?resize=1024%2C800&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/07\/Govt-charts-course-for-usage-of-new-age-fuel.webp?resize=768%2C600&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/07\/Govt-charts-course-for-usage-of-new-age-fuel.webp?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/p>\n\n<p><b>Source<\/b><span style=\"font-weight: 400;\">: <a href=\"https:\/\/epaper.livemint.com\/Home\/ShareArticle?OrgId=17f70e6182&amp;imageview=0\" target=\"_blank\" rel=\"noopener\">Livemint <\/a><\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><strong>Relevance:<\/strong><\/h2>\n<p>Green Hydrogen has the potential to become a major source of energy. It will be helpful in dealing with climate change.<\/p>\n<h3><b>Synopsis<\/b><span style=\"font-weight: 400;\">:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The <strong>Govt Charts Course For Usage of New-Age Fuel<\/strong>, plans to implement the Green Hydrogen Consumption Obligation (GHCO) in fertilizer production and petroleum refining. This would reduce the country&#8217;s dependence on fossil fuels for producing hydrogen and enable a smooth transition towards green hydrogen.<\/span><\/p>\n<h3><b>Background<\/b><span style=\"font-weight: 400;\">:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A draft note prepared for the Union cabinet said that fertilizer plants and oil refineries may have to mandatorily use green hydrogen in their operations.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The aim is to cut the nation\u2019s dependence on fossil fuels and promote the generation of clean energy.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Currently, Around 54% or 3.6 mmt of India\u2019s annual hydrogen consumption of 6.7 mmt is utilized in petroleum refining and the rest in fertilizer production.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This is, however, <\/span><b>\u2018grey\u2019 hydrogen produced from fossil fuels<\/b><span style=\"font-weight: 400;\"> such as natural gas or naphtha.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s total hydrogen demand is expected to touch 11.7 million metric tonnes (mmt) by 2029-30 from the current 6.7 mmt.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>About Green Hydrogen<\/b><span style=\"font-weight: 400;\">:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Green hydrogen is<\/span><b> produced by splitting water into hydrogen and oxygen using an electrolyzer <\/b><span style=\"font-weight: 400;\">that may be powered by electricity from renewable energy sources such as wind and solar.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hydrogen can be used for both fuel cell and internal combustion engines. It is also being leveraged for applications in sectors such as chemicals, iron, steel, transport, heating and power.<\/span><\/li>\n<\/ul>\n<h3><b>What Does The Draft Cabinet Note Say?<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government plans to implement the Green Hydrogen Consumption Obligation (GHCO) in fertilizer production and petroleum refining. This would be similar to what was done with renewable purchase obligations (RPO).\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">RPOs require electricity distribution companies to buy a fixed amount of renewable energy to cut reliance on fossil fuels.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">GHCO is proposed to be raised from 0.15% in 2023-24 to 0.25% in 2024-25 and 0.5% in 2025-26.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Subsequently, it may be raised to 1.5%, 3.5% and 6.5% in 2026-27, 2027-28 and 2028-29, respectively, with the <\/span><b>10% mark targeted for 2029-30.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The proposal involves leveraging the country\u2019s large landmass and low solar and wind tariffs to produce low-cost green hydrogen.<\/span><\/li>\n<\/ul>\n<h3><b>Way Ahead<\/b><span style=\"font-weight: 400;\">:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The mandatory adoption would help in reducing the current cost of green hydrogen produced by electrolysis. It would reduce the cost to Rs. 160 per kg by 2029-30 while its current price is Rs. 350\/kg.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government is also aiming to<\/span><b> extend the production-linked incentive (PLI) scheme for manufacturing electrolyzers<\/b><span style=\"font-weight: 400;\"> to produce green hydrogen.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Indian companies, including Reliance Industries Ltd, have been gearing up to leverage opportunities presented by the transition to cleaner energy.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">RIL has announced plans to build an electrolyzer giga factory and a fuel cell giga factory as part of its pivot towards clean energy.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source: Livemint \u00a0 Relevance: Green Hydrogen has the potential to become a major source of energy. It will be helpful in dealing with climate change. Synopsis: The Govt Charts Course For Usage of New-Age Fuel, plans to implement the Green Hydrogen Consumption Obligation (GHCO) in fertilizer production and petroleum refining. This would reduce the country&#8217;s&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/govt-charts-course-for-usage-of-new-age-fuel\/\">Continue reading <span class=\"screen-reader-text\">Govt Charts Course For Usage of New-Age Fuel In 2023<\/span><\/a><\/p>\n","protected":false},"author":10322,"featured_media":278053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,8043,9],"tags":[],"class_list":["post-115832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-current-affairs-cat","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/07\/Govt-charts-course-for-usage-of-new-age-fuel.webp?fit=1280%2C1000&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704779494},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/115832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10322"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=115832"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/115832\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/278053"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=115832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=115832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=115832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}