The green hydrogen joint venture being set up in equal partnership by Indian Oil Corporation Ltd (IOCL), Larsen & Toubro Ltd (L&T) and ReNew Power aims to commission the first of its plants in 18-24 months, ReNew Power told Moneycontrol.
On April 4, the three companies announced the setting up of a joint venture that will focus on developing green hydrogen projects and related projects for ammonia and methanol, in line with the likely targets under the National Hydrogen Mission.
“The JV intends to play a significant role in helping India achieve the Net Zero Carbon target by 2070, set at COP26 set by Honourable Prime Minister Narendra Modi,” Sumant Sinha, chairman and chief executive officer ReNew Power said in an email response to Moneycontrol's query.
India aims to derive around 40 percent of its hydrogen demand by 2030 from green hydrogen, which is considered emission-free as it uses renewable energy for electrolysis of water to produce hydrogen molecules. India’s estimated demand for hydrogen is seen at 12 metric million tonnes (MMT) by 2030.
Last year on Independence Day, Prime Minister Narendra Modi launched the ‘National Hydrogen Mission’ from the Red Fort with the ambition to boost the growth of green hydrogen in the country to work towards being energy independent. In February, the government announced the first part of the National Hydrogen Mission policy on green hydrogen and green ammonia, aimed to boost production of hydrogen and ammonia using renewable energy.
Industry is hopeful that the second part of the policy would be announced before end-April.
“We hope the government focuses on demand creation through consumption obligations, dollar-denominated contracts, the rationalisation of taxes and duties, and carbon pricing,” Sinha said, commenting on his expectations from the second phase of the policy.
IOCL is setting up green hydrogen plants at its refineries in Mathura and Panipat to replace carbon-emitting units. IOC Chairman Shrikant Madhav Vaidya had said in a statement that the joint venture will first work on these two units.
Refiners, along with steel and fertilizer makers, are among the biggest consumers of hydrogen which is thus far derived from fossil fuel-based technologies.
Other companies such as Reliance Industries, Adani group, Greenko, and state run Bharat Petroleum Corporation (BPCL), GAIL (India) Ltd and NTPC Ltd are also keen to enter the green hydrogen supply chain. While they are upbeat about the announcements in the first part, they are awaiting more clarity on the second part of the policy. Minister of Power and New & Renewable Energy RK Singh earlier said that the second phase of the much-awaited policy is under consideration by the central government’s expenditure finance committee.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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