10-Jan-2023: India's 4-plank energy security strategy

India has been able to navigate through the most formidable energy crisis the world has seen since the 1973 oil crisis thanks to its four-pronged energy security strategy: Diversification of energy supplies; Increasing India's Exploration & Production footprint; Alternate energy sources and meeting energy transition through Gas-based economy, Green Hydrogen and EVs. India increased the number of its crude oil suppliers from 27 countries in 2006-07 to 39 in 2021-22, adding new suppliers like Columbia, Russia, Libya, Gabon, Equatorial Guinea etc., while strengthening our relationship with countries like US and Russia.

"Diesel prices, which in India between December 2021 and December 2022 rose by only 3%, went up by 34% in the USA, 36% in Canada, 25% in Spain and 10% in the UK. There was a massive impact due to the Central excise cuts announced by the Hon'ble Prime Minister in May 2022 and November 2021, amounting to Rs. 13 per litre of petrol and Rs.15 per litre on diesel cumulatively, along with significant VAT rate cuts by many Indian states. Govt. of India intends to increase India's exploration acreage to 0.5 million sq. km. by 2025 and 1.0 million sq. km. by 2030. The Govt. has been successful in reducing the 'No Go' area by 99%, opening .91 million sq. km. of acreage; we have also established the National Data Repository (NDR) and plans are afoot for a cloud-based and AI/ML-powered National Data NDR 2.0.".

India increased the ethanol blending in petrol from 1.53% in 2013-14 to 10.17% in 2022 and advanced its target to achieve 20% ethanol blending in petrol from 2030 to 2025-26. The phased rollout of E20 will commence on 1st April 2023. The Govt. is also setting up five 2G ethanol biorefineries in the country at Panipat (Parali) in Haryana, Bathinda in Punjab, Bargarh (Parali) in Odisha, Numaligarh (Bamboo) in Assam and Davangere in Karnataka.

The Centre has also increased the rate for Compressed Biogas (CBG) plants under the SATAT scheme from Rs. 46/kg to Rs. 54/kg and is taking steps to ensure bio manure produced during CBG production is bundled with fertilizers like urea. IOCL has developed an innovative and patented stationery, rechargeable and always kitchen-connected indoor solar cooking system, which has replicability in India and globally.

Govt. of India is investing Rs.19,744 crores into the National Green Hydrogen Mission for developing green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum. India's petroleum refineries constitute the majority of demand for the fuel, and MoP&NG will aggressively pursue green hydrogen to support the development of the nascent industry. OMCs are targeting the installation of Alternate Fuel Stations (EV charging/ CNG/ LPG/ LNG/ CBG etc.) at 22,000 Retail Outlets by May 2024.

4-Jan-2023: Cabinet approves National Green Hydrogen Mission

The Union Cabinet, chaired by the Hon’ble Prime Minister Shri Narendra Modi, has approved National Green Hydrogen Mission.  The initial outlay for the Mission will be  Rs.19,744 crore, including an outlay of Rs.17,490 crore for the SIGHT  programme, Rs.1,466 crore for pilot projects, Rs.400 crore for R&D, and Rs. 388 crore towards other Mission components.  MNRE will formulate the scheme guidelines for implementation of the respective components.

The Mission will result in the following likely outcomes by 2030:

• Development of green  hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country
• Over Rs. Eight lakh crore in total investments
• Creation of over Six lakh jobs
• Cumulative reduction in fossil fuel imports over Rs. One lakh crore
• Abatement of nearly 50 MMT of annual greenhouse gas emissions

The Mission will have wide ranging benefits- creation of export opportunities for Green Hydrogen and its derivatives; Decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies.  India’s Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW.  The targets by 2030 are likely to bring in over Rs. 8 lakh crore investments and create over 6 lakh jobs.  Nearly 50 MMT per annum of CO2 emissions are expected to be averted by 2030.

The Mission will facilitate demand creation, production, utilization and export of Green Hydrogen.  Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen – will be provided under the Mission.  The Mission will also support pilot projects in emerging end-use sectors and production pathways.  Regions capable of supporting large scale production and/or utilization of Hydrogen will be identified and developed as Green Hydrogen Hubs.

An enabling policy framework will be developed to support establishment of Green Hydrogen ecosystem.   A robust Standards and Regulations framework will be also developed.  Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the Mission; R&D projects will be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies.  A coordinated skill development programme will also be undertaken under the Mission.

All concerned Ministries, Departments, agencies and institutions of the Central and State Governments will undertake focussed and coordinated  steps to ensure successful achievement of the Mission objectives.  Ministry of New & Renewable Energy will be responsible for overall coordination and implementation of the Mission.