New Policy To Cut Green Hydrogen Cost By 40-50%: Indian Oil Corporation

New Delhi: India's largest oil agency Indian Oil Corporation (IOC) will arrange 'inexperienced hydrogen' crops at its Mathura and Panipat refineries by 2024 to switch carbon-emitting models because it sees the simply introduced inexperienced hydrogen coverage as a watershed second within the nation's power transition that can assist minimize prices.SSV Ramakumar, director for analysis and growth at IOC, says the brand new coverage will assist minimize the price of manufacturing inexperienced hydrogen by 40-50 per cent."This (policy) is the single biggest enabler by the state for production of green hydrogen," he mentioned.Oil refineries, fertiliser crops and metal models use hydrogen as course of gasoline to supply completed merchandise.In refineries, hydrogen is used to take away extra sulphur from petrol and diesel. This hydrogen presently is produced from fossil fuels equivalent to pure gasoline or naphtha and leads to carbon emissions.IOC plans to switch this 'gray hydrogen' with 'inexperienced hydrogen' -- additionally known as 'clear hydrogen' -- through the use of electrical energy from renewable power sources, equivalent to photo voltaic or wind energy, to separate water into two hydrogen atoms and one oxygen atom via a course of known as electrolysis."The headline cost of renewable electricity at Rs 2 per kWh (or per unit) is actually the price at the generation site (say solar farm in Rajasthan or Ladakh). This becomes Rs 4 to 7 per unit after adding different levies during its transit through transmission lines in different states," he mentioned.At a factory-gate price of Rs 4 to 7 per unit, inexperienced hydrogen manufacturing prices come to Rs 500 per kg. This price compares with the present gray hydrogen price of Rs 150 per kg.Under the inexperienced hydrogen coverage introduced on February 17, the renewable power used for inexperienced hydrogen manufacturing will get open entry with out central surcharge and nil inter-state transmission fees for 25 years for initiatives commissioned earlier than June 30, 2025."This will essentially bring the cost of green hydrogen production down by 40 to 50 per cent," he mentioned.The price will go down additional if electrolyzers, used to separate water into two hydrogen atoms and one oxygen atom, are indigenously manufactured as an alternative of the current apply of importing them, he identified.IOC plans to arrange a 40 MW electrolyzer at Mathura refinery and a 15 MW unit at Panipat unit in Haryana, he mentioned, including the agency is focusing on to supply 70,000 tonnes a yr of inexperienced hydrogen by 2030, accounting for 10 per cent of its general consumption by that point.The authorities on February 17 introduced the primary stage of insurance policies to encourage inexperienced hydrogen and ammonia growth within the nation, with plans to succeed in 5 million tonnes every year of output by 2030.