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Current Affairs

IOC, L&T and ReNew venture to produce green hydrogen

Date: 06 April 2022 Tags: Energy

Issue

A long term deal has been signed to form a Joint Venture (JV) company by Indian Oil Corporation (IOC), Larsen & Toubro (L&T), and ReNew Power (ReNew) to produce green hydrogen.

 

Background

The government had announced plans to launch a comprehensive National Hydrogen Energy Mission.

 

Details

  • The joint venture company will aim to produce green hydrogen at an industrial scale. It is part of India’s mission to become hub for hydrogen energy.

  • The joint venture company has the research expertise of IOC, infrastructure expertise of L&T and renewable energy experience of ReNew to produce green hydrogen.

  • The guideline of the government says that National Hydrogen Mission will aim to increase production to 5 million metric tonnes (MMT) by 2030 to meet about 40 per cent of domestic requirements.

 

Hydrogen production in India

  • The hydrogen currently produced in India is Grey hydrogen, which is obtained using natural gas and ammonia.

  • The green hydrogen will be produced from renewable energy through electrolysis of water. The government plans to substitute grey hydrogen by green hydrogen.

 

Measures to boost green hydrogen

  • A Production Linked Incentive (PLI) scheme worth Rs 15,000 crore is being considered by the government for electrolysers.

  • A green hydrogen and green ammonia policy has been notified by the centre that promises to provide free power for 25 years to green hydrogen production plants set up before July 2025.

  • A new mandate is being planned by the government to ensure that oil refining, fertiliser and steel sectors procure green hydrogen for a certain proportion of their requirements. 

 

Benefits of green hydrogen

It reduces carbon emissions as byproduct of hydrogen fuel combustion is only water vapour. The production of hydrogen fuel is also through non-carbon renewable energy.