Green H2 output target may be delayed by 2 years, says MNRE secretary

The policy uncertainties in Europe and the IMO's decision to defer its net-zero framework by a year were the prime factors for the target revision, said Santosh Sarangi

India’s green hydrogen production target of five million metric tonnes per annum (mmtpa) is likely to be delayed by two years to 2032 due to global policy uncertainties around greenhouse gas emissions, said Santosh Sarangi, secretary at the Ministry of New and Renewable Energy (MNRE) on Tuesday.

 

Revising earlier targets, the country now aims to produce three mmtpa of green hydrogen by 2030, said Sarangi on the sidelines of the International Conference on Green Hydrogen.

 

The Indian government launched the National Green Hydrogen Mission (NGHM) in January 2023 with the aim to become a global hub for production and export of green hydrogen, setting a target of producing 5 mmtpa of green hydrogen by 2030.

 

Sarangi cited the policy uncertainties in Europe and the International Maritime Organization's (IMO) decision to defer its net-zero framework (NZF) by a year as the prime factors for the decision of revising the country's target.

 

Export-oriented Indian companies are likely to recalibrate green hydrogen production targets while other domestic firms are expected to begin projects soon, he added.

 

“Companies like Greenko, ACME, Sembcorp have been actively scouting for partnerships and they have been relatively successful. We expect these companies to take final investment decisions (FIDs) and start projects quickly,” Sarangi said.

 

The major headwind faced by India’s green hydrogen programme remains the delay in implementation of European Union’s Renewable Energy Directive (RED) III mandate. According to the said mandate, the European Union aims to achieve a minimum of 42.5 per cent of renewable energy in its final energy consumption by 2030.

 

Sarangi said while the larger group has adopted the RED III mandate, member countries are yet to come up with legislation for implementation in sectors such as industries and transportation, creating uncertainty related to off-take of the fuel.

 

India sees Europe as a major export destination for green hydrogen and its derivatives such as green ammonia and green methanol.

 

Demand for green hydrogen from the shipping industry also lacks clarity amid the recent one-year deferral by the IMO on net-zero emissions framework. Green hydrogen derivatives are zero-emission fuels for powering ships and are considered key to decarbonising the shipping sector.

 

Of the total production of five million tonnes of green hydrogen by 2030, around 1.5 mt is expected to be consumed locally, said Sarangi, adding domestic demand would be sustained by refineries and the fertiliser sector.