State-run agency suggests mandatory green hydrogen norms for oil refineries

Bureau of Energy Efficiency suggests giving refineries three years to meet green hydrogen obligations

State-run Bureau of Energy Efficiency (BEE) has proposed mandatory green hydrogen norms for oil refineries, seeking to push the country’s target of having an annual production of 5 million tonnes (MT) of the fuel by 2030.

BEE has suggested giving refineries three years to meet green hydrogen obligations. BEE, which comes under the ministry power, serves as the nodal authority for accrediting agencies monitoring, verifying, and certifying green hydrogen production projects. BEE made the proposal during its seventh Public Advisory Committee Meeting in September. The minutes of the meeting said that "in view of the limited availability of green hydrogen, the committee suggested that a minimum time frame of three years should be given to refineries to meet their green hydrogen consumption obligations," according to a source.

Abhay Bakre, director general of BEE, said that the Ministry of Petroleum and Natural Gas will have to decide about refineries. "It is not mandatory. The obligation can be one of the many options available. Whichever is the best for the country or the refinery can be finalised," said Bakre. The government has yet not given a minimum obligation to refineries, but reports indicated that they may be asked to convert 5 per cent of grey hydrogen to green. Some other plans being mooted by BEE include the possibility of a subsidy.

BEE’s proposal comes at a time when state-run Indian Oil Corporation (IOC) is setting up its first green hydrogen unit with a capacity of 10 KTA (thousands of tonnes per annum) at a refinery in Panipat. In August, IOC invited global tenders for setting up the unit which will utilise green hydrogen produced by using renewable power and integration of an existing network at the refinery. The new unit will have a green hydrogen generation unit of 1,250 kilogram per hour. According to sources, the company had a round of pre-bid meetings in which several national and international players participated. Based on their suggestions, IOC officials are considering a rework on the tender specifications.

"Nobody knows what the cost of green hydrogen is. So far, nobody has set up any plants. Unless any plant of reasonable scale is established, then only we will know about the cost. There are no specific pilot plans of reasonable size," Bakre said. Green hydrogen is considered to be key in meeting India’s net-zero emission target by 2070.

"A three-year timeline will be unrealistic for the industry. We have to understand the commercial scale of projects, assess various technologies and their cost-effectiveness. Companies may also require grid power at the refinery gate. Moreover, prices for green hydrogen are at least four times that of grey hydrogen," said an industry source in terms of anonymity.