IOC to form joint venture for Green Hydrogen development

IOC to form joint venture for Green Hydrogen development

Indian Oil Corporation (IOC), L&T, and Renew Power have signed a binding agreement to set up a Joint Venture (JV) company to develop the Green Hydrogen development sector in India.

The joint venture will aim to supply green hydrogen on an “industrial scale”.

Significance:

  • India can become a hub of “Green Hydrogen” as it can have an inherent advantage of having abundant renewable energy available in the country.
  • India, being a tropical country and having favorable geographical conditions and abundant natural resources, occupies an important advantageous position in ‘Green Hydrogen’ production.
  • In India, producing hydrogen from renewable energy is likely to be cheaper than producing it from natural gas.

Efforts being made in this regard:

  • The draft guidelines on ‘National Hydrogen Mission’ have been released by the Union Government, which aims to increase hydrogen production to 5 million metric tones (MMT) by 2030 to meet around 40 per cent of the domestic requirements.
  • A proposal to launch a Rs. 15,000 crore ‘Production Linked Incentive’ (PLI) scheme for ‘Electrolysers’ is being considered by the Central Government.
  • The ‘Green Hydrogen and Green Ammonia Policy’ was notified by the Central Government in February. Under which a provision has been made to provide free electricity for 25 years for any new renewable power plants set up for ‘green hydrogen’ production before July 2025.
  • The government is also planning to implement the necessary mandate for the oil refining, fertilizer and steel sectors to procure green hydrogen for a certain proportion of their requirements.

Green Hydrogen

Hydrogen produced by ‘Electrolysis’ using renewable/renewable energy is known as ‘Green Hydrogen’. It does not contain any trace of carbon.

Importance of Green Hydrogen:

  • Green Hydrogen energy is critical for India to meet its Nationally Determined Contribution (INDC) goals and ensure regional and national energy security, access and availability.
  • Green hydrogen can serve as an energy storage option, which will be critical to bridging the renewable energy gap in the future.
  • In terms of transportation, green hydrogen can be used for long distance travel or freight transportation within cities or between states, railways, large ships, buses or trucks etc.

Source – The Hindu

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